The Massachusetts House of Representatives February 26th passed comprehensive energy affordability legislation projected to save utility ratepayers more than $9 billion over the next decade, while adopting a key amendment led by Representatives Elliott (D-Lowell) and Tara Hong (D-Lowell) to ensure the rapid growth of large-scale data centers does not drive up electric bills for residents and small businesses.

As part of the broader energy package, the House adopted a consolidated version of legislation originally filed by Representative Elliott and co-filed as an amendment with Representative Hong focused on regulating electricity costs and clean energy standards for large data centers.

The adopted language creates a new Section 163 of Chapter 164 of the General Laws establishing a clear framework for high-load data centers in the Commonwealth. Under the amendment:

• Large data centers (20+ megawatts) must procure at least 80 percent renewable energy to meet their operational electricity needs.
• Any new or expanded data center seeking permits for fossil-fuel backup generation must first demonstrate that on-site battery energy storage is infeasible.
• Electric distribution companies are required to file a data center-specific tariff with the Department of Public Utilities designed to:
• Protect residential and commercial ratepayers from cost increases tied to increased electricity demand from data centers; and
• Incentivize greater energy efficiency, including technologies that capture and reuse excess heat generated by facilities.
• The Department of Public Utilities must review and approve these tariffs to ensure compliance and ratepayer protections.
• All electric companies must apply the approved tariff to data centers within one year of enactment.

The amendment builds upon Representative Elliott’s original proposal, which required regulatory oversight to prevent electricity cost-shifting from large data centers onto residential and income-eligible customers.

The consolidated version strengthens those protections by adding renewable procurement standards, battery storage requirements, and mandatory tariff structures.

“With the explosive growth of high-energy-use data centers, we must be proactive,” said Representative Elliott. “This amendment ensures that innovation and economic development in Massachusetts will not come at the expense of families struggling with their monthly electric bills.”

“We are sending a clear message: if you are going to operate a large-scale data center in Massachusetts, you must shoulder your fair share of the energy cost and invest in clean power, Representative Hong added, “Our residents should not subsidize corporate energy demand.”

In addition to setting firm guardrails for data centers, the amendment delivers stronger accountability for ratepayers by adding bipartisan rate experts to the Electric Rates Task Force, requiring short- and long-term solutions to lower costs, and benchmarking Massachusetts’ affordability against neighboring states.

It also mandates statewide public hearings and a formal review of the Mass Save program by the Inspector General, ensuring greater transparency, efficiency, and a clear path toward meaningful rate relief.

The legislation also includes reforms projected to generate more than $9 billion in savings over 10 years by:

• Reducing the Mass Save budget by $1 billion for immediate ratepayer savings
• Returning 70 percent of Alternative Compliance Payments to ratepayers through July 1, 2029. • Reducing net metering credit surcharges.
• Requiring discount rates for low- and eligible moderate-income customers.
• Limiting residential default service rate changes to no more than twice per year.
• Establishing a real-time online utility bill transparency dashboard.

The bill also expands procurement authority for the Department of Energy Resources, supports offshore wind development, encourages energy storage deployment, streamlines solar permitting, removes statutory barriers to new nuclear energy development, and authorizes high-voltage transmission lines along state highways.

The bill passed 128–27 and now advances to the Senate for consideration.