February 21, 2008
NSTAR will soon be passing along lower electricity
prices to some of the state’s largest businesses. Many
of the company’s commercial and industrial customers
will see second quarter power prices that are three
percent lower than current rates. Under Massachusetts
law, NSTAR buys electricity through a competitive
bidding process on behalf of customers who receive their
supply through the company’s Basic Service offering.
More than a thousand commercial & industrial customers
in NSTAR’s service territory will benefit from these
price cuts.
"With concerns about the economy making news everyday, this slight drop in energy prices for our largest customers couldn’t come at a better time,” said Thomas J. May, NSTAR Chairman, President and CEO. “We will continue to be vigilant about shopping for the lowest rates for all of 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 the Boston area that are using more than 25,000 kilowatt-hours of electricity a month will see the price of power drop from 11.024 cents to 10.657 cents. If approved by the Massachusetts Department of Public Utilities, the new rates will go into effect on April 1, 2008.
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, basic service prices for large commercial customers change every three months. The next scheduled change for residential and small commercial customers is July 1st.
NSTAR is the largest Massachusetts-based, investor-owned electric and gas utility. The company transmits and delivers electricity and natural gas to 1.4 million customers in Eastern and Central Massachusetts, including more than one million electric customers in 81 communities and 300,000 gas customers in 51 communities.
