Your feedback ensures we stay focused on the facts that matter to you most—take our survey
Massachusetts Question 4, Electric Utility Industry Referendum (1998)
| Massachusetts Question 4 | |
|---|---|
|
|
|
| Election date |
|
| Topic Energy market regulations and Utility policy |
|
| Status |
|
| Type Veto referendum |
Origin |
Massachusetts Question 4 was on the ballot as a veto referendum in Massachusetts on November 3, 1998. It was approved.
A “yes” vote supported restructuring the state's electric utility industry to allow customers to select their electricity supplier, establish rate reduction requirements, authorize utilities to recover certain transition costs with regulatory approval, and expand programs for energy efficiency and renewable energy. |
A “no” vote opposed restructuring the state's electric utility industry to allow customers to select their electricity supplier, establish rate reduction requirements, authorize utilities to recover certain transition costs with regulatory approval, and expand programs for energy efficiency and renewable energy. |
Election results
|
Massachusetts Question 4 |
||||
|---|---|---|---|---|
| Result | Votes | Percentage | ||
|
|
1,251,540 | 71.06% | ||
| No | 509,807 | 28.94% | ||
Text of measure
Ballot title
The ballot title for Question 4 was as follows:
| “ | Do you approve of a law summarized below, which was approved by the House of Representatives on November 19, 1997 by a vote of 124 to 30, approved by the Senate on November 19, 1997 by a vote of 32 to 6? | ” |
Ballot summary
The ballot summary for this measure was:
| “ |
The law changes the state's electric utility industry. Starting in March 1998, instead of buying power from the utility that owns the power lines, customers may choose to buy power from separate generating companies competing with each other to sell power to be delivered by the existing utility. Customers not choosing a new competing generating company will be provided power by their existing utility under a transition rate for 7 years, starting from a rate 10% less than 1997 rates. By September 1999, rates for such customers must be further reduced from 1997 rates (adjusted for inflation) by 5%. Subject to restrictions in the law, rates paid by such customers may be adjusted up or down if approved by the new state Department of Telecommunications and Energy (DTE). The law lets a utility recover, from customers, previously incurred costs related to generating plants and contracts that have become uneconomical under competition. Utilities must first reduce such "transition costs" in all reasonable ways, which may include selling non-nuclear generating plants. DTE must approve such sales and the utility's way of financing transition costs, and DTE may limit which costs may be charged to customers. Public agencies may arrange the sale of special bonds to help a utility finance transition costs to provide savings to customers. Utilities claiming they cannot offer the required rate reductions must work with DTE to find all possible ways to do so. State tax revenues related to sales of power plants may be used, if found necessary by DTE and subject to legislative appropriation, to ensure that utilities provide the 15% rate reduction. Utilities must maintain discounts for low-income customers. DTE must issue consumer protection and related regulations related to energy sales, and the law lets the state Attorney General enforce consumer protection laws and regulations against energy companies. To maintain reliability, DTE must set performance-based rates and service quality standards for electric and gas utilities. Utilities failing to meet the standards may be fined up to 2% of their annual revenues. Such utilities will not be allowed to cut staff levels unless either the relevant unions agree or DTE finds that the cuts will not lead to sub-standard service. Utility employees who are laid off due to the law will, if eligible for unemployment benefits, also be eligible for reemployment assistance benefits. If a generating plant loses value due to the law, the responsible company must pay the affected city or town until 2009 to offset lost property tax revenue. Cities and towns may set up power purchasing cooperatives for local customers. Businesses and other organizations may also set up cooperatives. A municipal lighting plant that chooses to sell power outside its own service area must compete with other generating companies within its service area. The law requires electric utilities to continue energy efficiency and demand management programs until 2003 and directs DTE to ensure that such programs are cost effective. The law imposes a charge on electricity consumers to promote renewable energy projects and to help cities and towns pay to add pollution control equipment to existing trash-to-energy plants. By 2003, power suppliers must provide an annually increasing percentage of power from new renewable sources, and fossil-fuel power plants must start to meet efficiency standards limiting pollution. The law ends the requirement that the state find a need for a proposed power plant but preserves environmental reviews. The law changes the state Department of Public Utilities to the new DTE, controlled by a 5-member commission with expertise on specified issues. The law gives the state Division of Energy Resources new duties related to energy restructuring, such as educating consumers and helping cities and towns. | ” |
Full Text
The full text of this measure is available here.
Path to the ballot
A veto referendum is a citizen-initiated ballot measure that asks voters whether to uphold or repeal an enacted law. This type of ballot measure is also called statute referendum, popular referendum, people's veto, or citizen's veto. There are 23 states that allow citizens to initiate veto referendums.
In Massachusetts, the number of signatures required for a veto referendum election is equal to 1.5% of the votes cast in the last gubernatorial election. To suspend the law prior to the election, the number of signatures required is equal to 2% of the votes cast in the last gubernatorial election. Massachusetts also has a distribution requirement that requires no more than 25% of the certified signatures on any petition can come from a single county. Signatures for a veto referendum petition must be submitted no more than 90 days after the governor signs the targeted bill or it is enacted into law.
A simple majority vote is required for voter approval. However, the number of affirmative votes cast for the measure must be greater than 30% of the votes cast in the election.
See also
External links
Footnotes
 |
State of Massachusetts Boston (capital) |
|---|---|
| Elections |
What's on my ballot? | Elections in 2025 | How to vote | How to run for office | Ballot measures |
| Government |
Who represents me? | U.S. President | U.S. Congress | Federal courts | State executives | State legislature | State and local courts | Counties | Cities | School districts | Public policy |
)
