Customers to See Additional 12 Percent Drop in Cost of Gas
March 15, 2005
For the second time this
year, NSTAR is seeking to pass along to its natural gas
customers a price break, this time a reduction of 12
percent. If approved, the Cost of Gas Adjustment (CGA)
will combine with lower seasonal rates to reduce the
bills of the average NSTAR Gas residential customer by
$9.00 per month. In its filing with the Massachusetts
Department of Telecommunications and Energy (DTE), NSTAR
Gas proposes to reduce its CGA to 75.01 cents per therm
from the current price of 85.00 cents per therm. The new
price would be effective May 1, 2005.
"With the price of other fuels steadily rising, we are
pleased to announce our second price reduction this
year," said Thomas J. May, NSTAR Chairman, President and
CEO. "Though NSTAR makes no profit on the cost of gas,
we always shop for the lowest possible price and pass
any savings on to our customers."
The CGA reflects the forecasted price of natural gas on
the New York Mercantile Exchange (NYMEX), with no profit
made by NSTAR on this charge. In February, NSTAR dropped
the cost of gas by 10 percent, saving the average
heating customer $21.00 per month.
If the proposed price cut is approved by the DTE, the
average NSTAR Gas heating customer, using 38 therms of
gas per month between May and October, will pay
approximately $51.19 per month, down from $60.29 based
on current winter rates. Customers typically see a
decrease in gas rates during summer months, but even
when compared to last summer, most customers’ monthly
bills will fall by more than $2.00.
NSTAR transmits and delivers electricity and natural gas
to 1.4 million customers in Eastern and Central
Massachusetts, including over one million electric
customers in 81 communities and nearly 300,000 gas
customers in 51 communities.
