March 1, 2006
Some of
the state’s largest businesses will soon see a
significant savings on their electricity bills, as NSTAR
locks in prices that are roughly 50 percent lower than
current rates. Under Massachusetts law, NSTAR buys
electricity through a competitive bidding process on
behalf of customers who choose to receive their supply,
or Basic Service, from the company. Approximately 2,800
commercial and industrial customers in NSTAR’s service
territory will benefit from these price cuts.
"We are always out shopping for the lowest energy prices for our customers – both small and large,” said Thomas J. May, NSTAR Chairman, President and CEO. “Many of these businesses are drivers of the local economy and when they see price savings, it can have a trickle-down effect on the entire region. After experiencing large electricity cost increases at the beginning of the season, we are extremely pleased to be able to pass these reductions on to our customers.”
The decreases can be largely attributed to a drop-off in prices for oil and natural gas, fuels used to generate electricity. Medium and large commercial customers in Boston that are using more than 10,000 kilowatt-hours of electricity a month will see the price of power drop from 18.1 cents to 9.2 cents. The new rates have been approved by the Massachusetts Department of Telecommunications and Energy and are scheduled to go into effect on April 1, 2006.
As a regulated distribution company, NSTAR purchases electricity from suppliers and passes that power cost directly to customers, with no profit to NSTAR. Customers who opt to purchase electricity directly from suppliers negotiate on their own behalf. By law, commercial basic service prices change every three months. The next scheduled change for residential customers is July 1.
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.
