Principal Paul Hibbard Outlines Changes Needed for Rate Redesign Amid Massachusetts Energy Transition
April 27, 2026
In October 2025, Massachusetts Governor Maura Healey directed the state’s Department of Public Utilities (DPU) to conduct a comprehensive review of gas and electric rates, as part of a statewide effort to stabilize and reduce utility bills. Included in her request was an assessment of “each and every charge that customers are currently paying to determine whether the charge can be eliminated, reduced, or its impact mitigated.” Analysis Group Principal Paul Hibbard prepared a rate design and energy affordability report that was attached to a filing from natural gas and electric company National Grid, as part of the DPU’s ongoing investigation.
In the report, Mr. Hibbard – a former DPU chair – explained that while the existing rate structures have served Massachusetts well for decades, fundamental changes are required to support electricity demand growth, manage growing grid investment needs, and protect long-term energy affordability. According to the report, the transition in rate design is necessary to achieve the Commonwealth’s energy policy goals while also satisfying traditional regulatory goals of economic efficiency, equity, and fairness.
Among the suggested changes to the rate structures is a greater mix of fixed charges, demand-based pricing, and targeted time-varying rates, as well as increased demand response, flexible interconnection of distributed energy resources, and affordability protections for low- and moderate-income customers. The report recommended that the Commonwealth work with utilities and stakeholders to establish a clear path through 2040, so that rate design evolves in step with Massachusetts’s broader energy transition.