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On June 30, 2026 the Massachusetts Department of Public Utilities (DPU) voted and issued an order opening an inquiry into the design and implementation of time-varying rates (“TVR”).

“The design of TVRs, such as time-of-use (“TOU”) rates, critical peak pricing (“CPP”), peak-time rebates, and real-time pricing, recognizes differences in a utility’s cost of service and marginal costs at different times (e.g., hour, day, or season) and generally charges customers a higher price during peak hours and a lower price during off-peak hours. Modernization of the Electric Grid, D.P.U. 12-76-A at 34 (2013); NARUC Manual on Distributed Energy Resources Rate Design and Compensation at 26-27 (2016).

“These forms of TVR generally require deployment of advanced metering functionality, such as advanced metering infrastructure (“AMI”). Time-Varying Rates, D.P.U. 14-04-C at 6 (2014). At a broader level, TVRs can also include seasonal rates, in which rates are different for winter and/or summer seasons. This inquiry will examine rate design considerations for the TVR framework that the Department approved in 2014, described below. Time-Varying Rates, D.P.U. 14-04-B at 8-12 (2014); D.P.U. 14-04-C at 2. In addition, the Department will examine the merits of incorporating transmission and distribution costs into the TVR framework; customer protections for vulnerable populations; the electric distribution companies’ (“EDCs”) plans for the implementation of TVR; and marketing, education, and outreach (“MEO”) plans for the transition to TVR.