Rate Design and Regulatory Reform in Massachusetts
Synapse supported Sierra Club in developing recommendations on electric rate design and regulatory reforms to advance beneficial electrification, efficient grid use, affordability, and decarbonization in Massachusetts. As part of this work, Synapse assisted Sierra Club in commenting on the Massachusetts Interagency Rates Working Group’s long-term ratemaking study and near-term rate design recommendations. We evaluated a range of time-varying rate designs and developed recommendations for their implementation as advanced metering infrastructure is deployed. Our comments also addressed customer protections, strategies for transitioning from opt-in to default time-varying rates, and approaches to mitigating adverse impacts on low- and moderate-income and other vulnerable customers.
As part of our comments on the Interagency Rates Working Group's study, we also evaluated proposals to increase residential fixed charges, and assessed regulatory reforms including performance-based ratemaking, formula rates, and performance incentive mechanisms.
In addition, Synapse developed comments in D.P.U. 25-08 regarding seasonal heat-pump rates designed to improve the economics of building electrification while better reflecting the seasonal drivers of electric system costs. Our comments provided recommendations for applying seasonal differentiation more broadly to reconciling rates, adjustment mechanisms, and transmission costs, while also addressing the longer-term role of time-varying rates and barriers to commercial and industrial electrification. Project completed in 2025.