Stop worrying about energy rates. Let Gatby Autopilot handle your electricity and natural gas plan.

Eversource and Avangrid have asked federal regulators to delay a $1.5 billion refund decision, warning that customers could face "rate whiplash" if the refunds are later overturned in court, according to Utility Dive.

TL;DR: Federal regulators ordered $1.5 billion in refunds for Eversource and Avangrid customers after reducing the utilities' allowed return on equity. While customers could see money back on their bills, the utilities are asking for a delay, warning that future rate volatility could hurt consumers more than the refunds would help.

Last updated: 2026-04-07

What the $1.5 Billion Refund Decision Means

The Federal Energy Regulatory Commission (FERC) recently ruled that Eversource and Avangrid's return on equity was too high, requiring the utilities to refund $1.5 billion to customers. This decision affects millions of electricity customers across Massachusetts, New Hampshire, Maine, and Rhode Island who pay transmission costs through their monthly bills.

Return on equity represents the profit utilities earn on their investments in transmission infrastructure. When FERC determines this return is excessive, utilities must refund the difference to customers through reduced transmission charges on future bills or direct credits.

For residential customers, transmission costs typically represent 15-25% of the total electricity bill delivery charges. A $1.5 billion refund spread across Eversource and Avangrid's customer base could translate to meaningful bill reductions, though the exact amount per customer depends on usage patterns and how the refund is distributed.

Why Utilities Are Fighting the Refund

Eversource and Avangrid aren't opposing the refund because they want to keep customer money. Instead, they're concerned about what happens if they issue refunds now and later win their court appeal of FERC's decision.

If the utilities successfully overturn FERC's ruling, they would need to recover the $1.5 billion from customers through higher future rates. This creates what the utilities call "rate whiplash" — customers get money back now but face steeper rate increases later.

The utilities argue this volatility hurts customers more than steady, predictable rates. They've asked FERC to stay the refund order until all appeals are exhausted, which could take years.

This strategy reflects broader utility concerns about regulatory uncertainty. When major rate decisions ping-pong between agencies and courts, utilities struggle to provide stable pricing for customers and investors.

How This Affects Your Electricity Bill

Your monthly electricity bill has two main components: delivery charges (regulated by state utility commissions) and supply charges (competitive in deregulated markets). The FERC refund affects transmission costs within the delivery portion of your bill.

Even if you've chosen a competitive electricity supplier through Gatby or another provider, you still pay delivery charges to your local utility. These charges fund the poles, wires, and substations that bring electricity to your home.

Current default service rates in the affected states show the baseline costs customers pay:

• Massachusetts Eversource customers pay 15.629 cents per kWh for default electricity supply
• New Hampshire Eversource customers pay 11.303 cents per kWh for default supply
• Maine Central Maine Power customers pay 12.721 cents per kWh for standard offer service

The refund would reduce transmission charges within delivery costs, not these supply rates. However, lower overall bills still benefit customers regardless of whether they use default service or competitive suppliers.

Understanding Rate Whiplash Risk

Rate whiplash occurs when customers experience dramatic bill swings due to regulatory changes, market volatility, or policy reversals. Utilities argue that issuing refunds now creates this risk if courts later require the money to be recovered.

Consider a hypothetical scenario: If you receive a $200 refund credit this year but face an extra $300 in transmission charges over the next two years to recover that money, you're worse off despite the initial refund.

This concern isn't theoretical. Energy markets have seen similar situations where regulatory decisions were later overturned, forcing utilities to adjust rates retroactively. The Maine Public Utilities Commission and other state regulators have dealt with such complications before.

However, consumer advocates argue that customers deserve refunds for overpayments regardless of future uncertainty. They contend that utilities should bear the risk of regulatory decisions, not ratepayers.

What Northeast Energy Customers Should Know

The refund dispute highlights why understanding your electricity bill structure matters. In deregulated markets like Massachusetts, New Hampshire, Maine, and Rhode Island, you can choose your electricity supplier but not your delivery utility.

Delivery charges fund local distribution and regional transmission systems. Even the most competitive electricity supply rate can't offset excessive delivery charges, making utility rate decisions crucial for all customers.

If you're currently paying default service rates, you might find savings opportunities with competitive suppliers. Comparing plans on Gatby is always free and can help you understand both supply and delivery cost impacts on your total bill.

The timing of this refund decision coincides with spring rate shopping season. Many fixed-rate electricity contracts expire in spring, creating opportunities to lock in competitive rates before summer demand drives up wholesale prices.

State-by-State Impact Analysis

Massachusetts

Eversource serves roughly 1.5 million electricity customers across eastern and western Massachusetts. The Massachusetts Department of Public Utilities oversees delivery rate setting, but transmission costs are federally regulated.

Massachusetts customers already face some of the highest electricity rates in the nation, making any refund particularly valuable. The state's aggressive renewable energy policies add costs that transmission refunds could help offset.

New Hampshire

New Hampshire Eversource customers number approximately 500,000. The New Hampshire Public Utilities Commission has historically supported competitive electricity markets, giving customers options to manage supply costs while dealing with delivery rate changes.

New Hampshire's lower default service rates (11.303 cents per kWh for Eversource customers) provide more room for competitive suppliers to offer savings, especially if transmission costs decrease through refunds.

Maine

Central Maine Power, owned by Avangrid, serves about 650,000 customers. Maine's standard offer rate of 12.721 cents per kWh reflects the state's reliance on natural gas and renewable energy imports.

Maine customers have been particularly vocal about utility rate concerns, making the refund decision politically significant beyond its financial impact.

Rhode Island

While not directly mentioned in the initial report, Rhode Island Energy (formerly National Grid) customers could see indirect benefits if regional transmission costs decrease. Rhode Island's small size means transmission decisions in neighboring states often affect local rates.

Timeline and Next Steps

FERC must decide whether to grant the utilities' stay request before refunds begin flowing to customers. This decision could come within weeks or months, depending on the commission's review process.

If FERC denies the stay, utilities must begin issuing refunds through bill credits or reduced charges. The exact mechanism varies by state and utility, but customers should see impacts within one to two billing cycles.

If FERC grants the stay, customers won't see refunds until all court appeals are resolved. This process typically takes 12-24 months for major utility rate cases.

Meanwhile, customers can take control of their electricity costs by comparing competitive supply options. Gatby's Autopilot platform automatically manages electricity plan selection and renewals, ensuring you don't overpay regardless of utility rate changes.

Protecting Yourself from Rate Volatility

Whether or not the refunds materialize, Northeast electricity customers face ongoing rate volatility from multiple sources: wholesale market changes, renewable energy policies, infrastructure investments, and regulatory decisions like this one.

The best protection against rate volatility is understanding your options and staying informed about market changes. Competitive electricity suppliers often offer fixed-rate plans that provide budget certainty regardless of utility rate fluctuations.

However, not all competitive plans offer savings. Some suppliers charge premium rates that exceed any potential utility refunds. Careful comparison shopping remains essential, especially during periods of regulatory uncertainty.

Gatby has 4.8/5 stars from 500+ independent reviews because it automates this comparison process, continuously monitoring rates and switching customers to better plans when available. This approach helps customers benefit from competitive markets without constant manual oversight.

Consumer Protection Considerations

The refund dispute raises important consumer protection questions about who bears the risk of regulatory uncertainty. Utilities argue they need predictable returns to invest in infrastructure, while consumer advocates contend that ratepayers shouldn't subsidize excessive utility profits.

State utility commissions in Massachusetts, New Hampshire, Maine, and Rhode Island will likely weigh in on how refunds should be distributed if FERC proceeds. Some states might require direct bill credits, while others might allow utilities to reduce future rates.

Customers should monitor communications from their utilities and state regulators about refund implementation. Scammers often exploit confusion around utility refunds to steal personal information or money through fake refund schemes.

Legitimate utility refunds appear as bill credits or reduced charges on official utility bills. Utilities never require customers to provide bank account information or pay fees to receive refunds.

Looking Ahead: What This Means for Energy Markets

The Eversource-Avangrid refund case reflects broader tensions in energy regulation between utility financial stability and customer cost protection. As utilities invest billions in grid modernization and renewable energy integration, these disputes may become more common.

For customers, this uncertainty reinforces the value of competitive electricity markets where supply costs are determined by market forces rather than regulatory proceedings. While delivery charges remain regulated, competitive supply gives customers some control over their total electricity costs.

The spring season provides good timing for customers to review their electricity plans before summer demand increases wholesale prices. Fixed-rate competitive plans can provide budget certainty regardless of how the refund dispute resolves.

Written by Hash Manesia, Energy Market Analyst at Gatby. Hash Manesia covers deregulated electricity markets across Texas and the Northeast, helping consumers navigate plan selection, rate comparison, and energy policy changes.

Reviewed by the Gatby Editorial Team on 2026-04-07

Frequently Asked Questions

Will I automatically receive money back from the $1.5 billion refund?

You'll only receive refunds if you're an Eversource or Avangrid customer and FERC denies the utilities' request to delay the refunds. The refund would appear as bill credits or reduced transmission charges on future bills, not as direct cash payments. If you're a Central Maine Power customer (owned by Avangrid) or Eversource customer in Massachusetts, New Hampshire, or Connecticut, you could be eligible. However, the utilities are asking FERC to postpone refunds until court appeals are resolved, which could take years.

How much money would I get back from this refund?

The exact refund amount per customer hasn't been determined and depends on several factors including your electricity usage, how long you've been a customer, and how the utilities choose to distribute the $1.5 billion. Transmission costs typically represent 15-25% of your delivery charges, so the refund might reduce this portion of your bill. With millions of customers across the affected utilities, individual refunds could range from tens to hundreds of dollars, but no specific amounts have been announced.

Does this refund affect my competitive electricity supplier rate?

No, the FERC refund only affects transmission charges within the delivery portion of your bill, not the supply rate you pay to competitive electricity providers. Even if you've chosen a competitive supplier through Gatby or another broker, you still pay delivery charges to your local utility for poles, wires, and transmission infrastructure. The refund would reduce these delivery costs while your competitive supply rate remains unchanged, potentially lowering your total monthly bill.

What happens if the utilities win their court appeal after issuing refunds?

If courts overturn FERC's decision after refunds are issued, utilities would need to recover the $1.5 billion from customers through higher future transmission charges. This creates "rate whiplash" where customers receive money back now but face steeper rate increases later. The utilities argue this scenario would hurt customers more than steady, predictable rates. This is why Eversource and Avangrid are asking FERC to delay refunds until all appeals are exhausted.

Should I switch electricity suppliers while this refund dispute continues?

The refund dispute doesn't change the benefits of comparing competitive electricity suppliers, since it only affects delivery charges that all customers pay regardless of their supplier choice. Spring is actually an ideal time to review your electricity plan before summer demand drives up wholesale prices. If you're currently on default service rates like Massachusetts Eversource's 15.629 cents per kWh, competitive suppliers might offer lower rates that provide immediate savings while the refund dispute continues through the courts.

How long will it take to resolve this refund dispute?

The timeline depends on FERC's decision about the utilities' stay request and subsequent court proceedings. If FERC denies the stay, refunds could begin within one to two billing cycles. If FERC grants the stay, customers won't see refunds until all court appeals are resolved, which typically takes 12-24 months for major utility rate cases. The utilities and consumer advocates will likely continue fighting this decision through multiple levels of federal courts, potentially extending the dispute for several years.