NSTAR Proposed 26 Percent Price Cut For Natural Gas
March 14, 2007
NSTAR is looking to lower summer natural gas prices by 26 percent this May. The company has submitted a summer rate of 87 cents per therm, down from last summer’s cost of $1.19. If approved by the Massachusetts Department of Telecommunications and Energy, the price cut will save the average NSTAR Gas heating customer about $12 a month.
“Higher inventories of natural gas have helped hold the line on increasing prices and we’re always pleased when we can pass on such significant savings to our customers,” said Thomas J. May, NSTAR Chairman, President and CEO. “While energy supply prices remain higher than we’d all like to see, clearly a 26 percent drop is welcome news.”
If the proposed cost is approved, the average NSTAR Gas heating customer using 38 therms of gas a month between May and October will pay approximately $56 a month, down from $68 last summer. The average NSTAR Gas non-heating customer using 12 therms of gas a month will pay about $24 a month, down from $28.
The Cost of Gas Adjustment reflects a six-month forecast for the price of natural gas, with no profit made by NSTAR on this charge. The proposed rate reflects normal differences between winter and summer prices and the continued volatility of fuel prices on the New York Mercantile Exchange (NYMEX).
NSTAR transmits and delivers electricity and natural gas to1.4 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.