By Geena Monahan—For the North Star Reporter
A proposed gas rate increase from Liberty Utilities that sparked widespread concern last year has been significantly reduced under a settlement agreement under review by the Massachusetts Department of Public Utilities.
According to the settlement, residential heating customers in North Attleborough would see a 15% increase — down from the 38% originally proposed — according to an emailed statement from Tatiana Roc, president of Liberty Utilities.
If approved, the new rates would take effect April 1. If the DPU does not approve the settlement, the case would proceed to evidentiary hearings and briefings, followed by a final determination on Liberty’s original proposal.
“The settlement reflects months of collaboration,” said State Rep. Adam Scanlon, D-North Attleborough, in an online statement. “Together, parties worked to balance the real energy cost pressures facing customers with the need for continued, safe and reliable service.”
Liberty Utilities, the Attorney General’s Office, and several intervening parties filed the settlement on Jan. 30. The agreement follows months of public hearings, testimony and negotiations after Liberty’s original June 2025 filing sought approval for a $55.8 million increase in base distribution rates.
The proposal drew strong opposition from residents and local officials — particularly in North Attleborough and Fall River — who warned the increases would place a heavy financial burden, especially on seniors and low-income residents already struggling with rising utility costs.
Lauren Diggin, spokesperson for the state’s Department of Energy Resources, said the settlement also reflects broader concerns about energy affordability in the region. She noted that Gov. Maura Healey continues to oppose large utility rate increases and has energy affordability legislation in the works that could save residents a collective $13 billion.
“This increase in utility bills could not come at a worse time for families and businesses in southeastern Massachusetts,” said Diggin. “People and businesses need relief now. The proposed settlement includes a reduction in the return the utility can earn, which will provide important savings for ratepayers each year.”
Alanna Kelly, communications director for the DPU, said the department will conduct an additional review of the agreement, including the opportunity for discovery, before issuing a decision. The settling parties have requested that the DPU issue a decision by March 27.
“The settlement agreement would resolve issues in the rate case,” said Kelly. “Any changes to rates, including those proposed in the settlement agreement, must be reviewed and decided on by the DPU.”
In addition to lowering the proposed rate increase, the settlement includes a commitment that Liberty will not file another base rate case until after Nov. 1, 2028, providing customers with added rate stability.
The agreement also prevents Liberty from attempting to recoup costs associated with its winter discount program and bars the company from charging interest on those amounts — a key concern raised by customer advocates during the case.
Furthermore, Liberty withdrew its request for a five-year performance-based ratemaking plan that would have allowed automatic annual rate adjustments. Future changes will instead remain subject to tighter limits and increased regulatory oversight.
The settlement restructures how Liberty may recover some previously approved infrastructure costs, including investments made through the company’s gas system enhancement program. Those costs would be recovered over a longer period to reduce immediate bill impacts on customers.
Low-income customer protections are maintained, including existing gas bill discounts for eligible households and additional safeguards are in place to limit the disproportionate impact of future cost recovery on vulnerable customers.
Scanlon credited residents and advocates who spoke out during last year’s hearings with helping shape the outcome.
“I am deeply thankful to everyone who spoke up, organized, and advocated against the proposed rate hike,” he said. “Your engagement and persistence made a real difference in shaping a more balanced outcome for customers.”