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2. If we fix this, heat pumps become cheaper than gas.
1. We're overcharging heat pumps for the grid, to subsidize everyone else.
3. Without costing anyone anything.
Winter to summer peak PSEG: 70% JCPL: 61% AE: 61%
Why is this overcharging?
Heat pumps aren't triggering grid upgrades, they're using spare capacity.
Why does this create a cross-subsidy to everyone else?
What if we fixed this overcharge?
Natural Gas
All Fuels
Energy
Burdens
Why doesn't this raise rates?
Existing customers: small subsidy removed
New HP customers: don't overpay to begin with
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Heat Pump Rates in MA (New)
By Juan-Pablo Velez
