Income tax exemption

2025-2026 Regular Session Introduced by Brian Lawson and 1 co-sponsor

The bill doubles the service-quality penalty factor for electric and gas utilities from 2.5 to 5, increasing fines for noncompliance.

Referred to Committee on Ways and Means

Overview / Purpose

H.3461, filed by Representative Tackey Chan, would increase the numeric penalty factor used in Massachusetts General Laws, chapter 164, section 1I — the statutory provision that governs service-quality penalties for electric and gas companies. The stated aim is to strengthen enforcement by increasing the penalties assessed when utilities fail to meet service-quality standards.

Key provision

Amends chapter 164, section 1I by striking the figure “2.5” and inserting “5.”

In plain terms: the bill doubles the numeric value currently in the statute (from 2.5 to 5). The bill text does not further define the calculation in this draft; it substitutes the single numeric value in the existing statutory formula.

Practical effect / likely impact

Raises the statutory penalty factor used to calculate fines for electric and gas companies that fail to meet service-quality requirements under section 1I.

Expected consequences (depend on regulatory implementation and underlying formulas):

Larger fines/penalties could be assessed against utilities for noncompliance with service-quality standards.
Stronger financial incentives for utilities to invest in reliability, maintenance, storm hardening, or operational improvements.
Potentially greater revenue risk for utilities; some costs could be sought to be recovered in rates subject to regulatory review, while consumer advocates may argue for stronger accountability and better service.

Exact dollar impact is not provided in the bill and would depend on (a) how the factor is used in the statute’s formula, (b) the number and severity of violations, and (c) subsequent regulatory actions by the Department of Public Utilities (DPU).

Who is affected

Primary: Investor-owned electric and gas utilities subject to chapter 164 and DPU oversight.

Secondary: Ratepayers and consumers (through potential changes in utility behavior or in utility rate proposals), consumer advocates, municipal stakeholders, and the Department of Public Utilities (as enforcing agency).

Legislative status and timeline (as of provided record)

Prefiled: 2024-12-05

Introduced and read first time (House): 2025-01-14

Referred to Committee on Ways and Means: 2025-01-14 (also listed as referred 12/05/2024)

Referred to Committee on Telecommunications, Utilities and Energy: 2025-02-27

Senate concurred: 2025-02-27 (entry present in record)

Hearing scheduled: 06/04/2025, 1:00–5:00 PM in A-2

Reporting date extended to: Wednesday, December 3, 2025

Notes and caveats

The bill text supplied is narrowly focused: it changes a single numeric figure in an existing statutory provision. The substantive effect depends on how that figure integrates into the penalty calculation currently found in chapter 164, section 1I.

The provided packet also includes unrelated draft text from a South Carolina income-tax bill about excluding first-responder wages; that South Carolina text is not part of Massachusetts H.3461 and appears to be included in error.

Fiscal and rate impacts are not specified in the bill; a formal fiscal note (or DPU analysis) would be needed to estimate expected increases in penalty assessments and any downstream effect on rates or utility finances.

Bill