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H 3502

An Act relative to grid optimization

194th Legislature (2025-2026) Introduced by Rich Haggerty

Directs the DPU to set standards for grid-edge software on AMI meters, boosting efficiency, load flexibility and reliability, with metric-based incentives and a 12/31/2025 report.

Hearing rescheduled to 10/16/2025 from 01:00 PM-01:55 PM in A-1 and Virtual Hearing updated to New End Time
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Bill Summary · H 3502

Summary of House Bill H.3502 — An Act relative to grid optimization

Overview

House Bill 3502 proposes a Massachusetts-focused framework to expand the use of distributed grid edge software on already approved advanced meter infrastructure (AMI) meters. The bill directs the Department of Public Utilities (DPU), in consultation with electric distribution companies, to investigate and establish standards that support efficiency, load flexibility, and distribution system intelligence. The core goal is to improve system utilization, reduce costs, and enhance reliability for customers through higher-resolution data and new monitoring/ control capabilities.

Purpose and intent

  • Expand the use of grid-edge software on AMI meters to modernize grid operations.
  • Enable utilities and approved third parties to better manage loads and resources in the distribution system.
  • Create incentives linked to performance improvements driven by high-resolution meter data.

Key provisions

  • Investigation and standards

    • The DPU must conduct a process, in consultation with distribution companies, to establish and refine standards that expand the use of distributed grid edge software on AMI meters already approved by the department.
    • Standards should support efficiency, load flexibility, and distribution system intelligence to improve system utilization, reduce costs, and improve reliability for customers.
    • Standards should include methods for increasing capacity to manage loads and resources on the grid by both electric utilities and eligible third parties.

  • Metrics and incentives

    • Distribution companies must design at least one metric for enhanced monitoring and control of the grid using high-resolution data from utility meters.
    • The metric(s) should enable an incentive framework for positive performance by those utilities and/or authorized third parties.

  • Reporting deadline

    • The DPU must complete its investigation and submit a report detailing conclusions to the Joint Committee on Telecommunications, Utilities and Energy no later than December 31, 2025.

Affected parties

  • Commonwealth: Department of Public Utilities (DPU).
  • Electric distribution companies operating in Massachusetts.
  • Electric utilities and potential third-party grid operators or service providers that use AMI data and grid-edge software.
  • Customers served by AMI meters (indirectly affected through grid reliability, costs, and service quality).

Procedural and timeline notes

  • Introduction and referral: Filed January 17, 2025; referred to the House Committee on Telecommunications, Utilities and Energy.
  • Hearing: The hearing was rescheduled to October 16, 2025, with updated timing indicating a longer session (originally 1:00 PM–1:55 PM; updated to 1:00 PM–5:00 PM in the hearing notice).
  • Reporting deadline: The DPU must deliver its final report by December 31, 2025.
  • Related action: HD 3693 is noted as a related bill/replacement within the same docket.

Potential impact and considerations

  • Operational impact: Requires the DPU and utilities to develop and adopt standards for grid-edge software use on AMI meters, which could influence how loads are managed and how data is utilized for grid optimization.
  • Incentives: Establishing a performance-based incentive tied to a listed metric may motivate utilities and partners to invest in grid-edge technologies and data analytics.
  • Privacy and data use: Use of high-resolution data will necessitate attention to data governance, privacy, and security (though not explicitly detailed in the text).
  • Implementation timeline: The December 31, 2025 reporting deadline sets a relatively tight window for coordinating standards, pilot considerations, and stakeholder input.

Related bills

  • HD 3693 (replaces) – the associated docket entry for this measure.

This summary focuses on the substantive elements: purpose, standards approach, incentive concepts, affected entities, and key timelines for the bill.

Compiled from official sources — confirm details with the bill’s official record.

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