NSTAR Proposes New Electricity Rate Below 8-Cents per Kilowatt-Hour
Power Prices at Their Lowest Level Since 2005
May 17, 2010NSTAR’s residential customers can expect to see a 10 percent cut in supply prices this summer if the company’s new rate is approved by the Massachusetts Department of Public Utilities. The new price will save the average NSTAR customer about $5 a month compared to current rates and would be in effect between July 1 and December 31. Nearly 800,000 customers in NSTAR’s service territory will benefit from these price cuts.
“Our customers have seen the cost of electricity plummet since the highs of a couple of years ago,” said Tom May, NSTAR Chairman, President and CEO. “As everyone works to cut energy use through improved efficiency, we’re thrilled to pass on even more savings to our customers through lower prices.”
Though delivery charges vary slightly by region, the Basic Service supply price for all NSTAR residential customers will drop by 10 percent, from 8.88 cents to 7.98 cents per kilowatt-hour. Customers of the former Boston Edison Company using an average of 500 kilowatt-hours per month will see their total bill drop from $86.68 to $82.18. The average 500 kilowatt-hour bill for customers of the former Cambridge Electric Company will fall from $79.23 to $74.73. For those in the former Commonwealth Electric territory, the average bill will decrease from $91.15 to $86.65.
The decrease can be largely attributed to the discovery of new natural gas supplies – the fuel most used to generate electricity in our region – and a moderation in the price of oil. As a regulated distribution company, NSTAR purchases electricity from suppliers and passes the cost directly to customers who are on the company’s Basic Service supply rate, with no profit to NSTAR. Customers who purchase electricity through aggregate buyers or directly from suppliers are not affected by this price reduction. By law, the Basic Service price for residential customers changes twice a year, on July 1 and January 1.
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.
