NSTAR’s Largest Customers to See Electricity Rate Cut
February 14, 2011
NSTAR will soon be passing along lower electricity prices to
some of the state’s largest businesses. More than 1,000 of the
company’s commercial and industrial customers will see second
quarter supply prices drop by up to 12 percent compared with 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.
“Our heating customers are not the only ones benefiting from lower natural gas prices this year,” said Tom May, NSTAR Chairman, President and CEO. “Because natural gas is the main fuel used by electricity generating plants in our region, NSTAR’s electricity customers are also seeing lower prices due to an abundant supply of natural gas.”
Large commercial and industrial customers in the Greater Boston area that typically use more than 25,000 kilowatt-hours of electricity a month will see the fixed price of power drop by about nine percent, from 7.586 cents per kilowatt-hour to 6.883 cents. The fixed price in NSTAR’s service area south of Boston will drop by 12 percent, from 7.743 cents to 6.763 cents. If approved by the Massachusetts Department of Public Utilities, the new rates will go into effect on April 1, 2011.
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 and industrial customers change every three months. The next scheduled change for residential and smaller 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.
