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Chapter 1 The Department of Public Utilities and the Types of Companies It Regulates

Electric and gas companies in Massachusetts are regulated by the state’s Department of Public Utilities (DPU or Department). As of April 2007, wireline telecommunications companies are regulated by the Department of Telecommunications and Cable (DTC). This manual primarily addresses the rights of customers of electric and gas companies. If you are dealing with problems a telephone customer is having, you should refer specifically to Chapters 13, 14, and 15 of this manual.

There are two categories of electric and gas companies in Massachusetts. One category is often called “investor-owned utilities” or “IOUs.” These are publicly traded, shareholder-owned corporations such as Eversource, National Grid, and Columbia Gas of Massachusetts. The second category includes municipal light departments or combined light and gas departments, such as the Holyoke Gas & Electric Department or Reading Municipal Light Department. These entities, sometimes called “munis,” are owned by the city or town in which they are located.

For the purposes of using this manual, you only need to be aware of two differences between IOUs and munis. First, the munis are allowed to collect a deposit from someone applying for electric or gas service, even if the applicant has a good credit rating and does not owe the muni for prior utility service. IOUs cannot collect deposits. Second, while IOUs are required to offer discount rates to low-income customers (see the discount rate discussion, Chapter 7, ¶ B), munis do not have to offer discounts, although one muni, the Belmont Municipal Light Department, voluntarily offers low-income discount rates.

The DPU has a Consumer Division, the division that handles questions from consumers and that attempts to resolve any problems the consumer is having. The Consumer Division can be reached at (617) 737-2836 or (877) 886-5066, or at [email protected].

However, in almost all instances the Consumer Division will refer you back to the utility company if you have not already tried to resolve the problem directly with the utility company. Therefore, other than in an emergency situation that requires the immediate intervention of the Consumer Division, the best practice is to call the utility company first, and then call the Consumer Division if you cannot resolve the problem.

Often, customers and even advocates may be reluctant to call the Consumer Division. There are two very different reasons why you should not be reluctant to call. First, the Consumer Division’s job is to help resolve disputes, and they often can be very helpful. Second, companies speak to the Consumer Division all the time, and may press on the Division the point of view that too many customers owe too much money and that the companies should be allowed to be aggressive in their collection techniques. Only if advocates call as well will the Consumer Division be regularly reminded that the vast majority of people who do not pay their bills cannot pay their bills, due to their limited incomes and the very high energy costs in Massachusetts. Since the job of the Consumer Division is to balance the interest of companies in collecting all amounts owed and the interest of consumers in protecting their utility service, it is important for advocates to speak up and be heard.

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