An Act protecting consumers from unreasonable utility rate increases

HD 3590, titled "An Act protecting consumers from unreasonable utility rate increases," limits how much profit electric and gas companies can earn in Massachusetts rate cases. It caps the allowed return on equity (a measure of profit) at the average rate approved for similar companies in Connecticut, Rhode Island, Maine, Vermont, and New Hampshire over the past four years. Utilities cannot include compensation for certain efficiency programs or performance incentives when calculating this return. This directly affects Massachusetts utility companies and their customers by preventing rate hikes based on higher profit margins than neighboring states. The cap can only be waived if a company proves its constitutional rights would be violated.