May 24, 2006
As Bay State residents
gear up for higher temperatures in the months ahead,
NSTAR Electric is seeking to lower costs for its
residential and small business customers by reducing
supply rates. If approved by the Massachusetts
Department of Telecommunication and Energy, the change
will mean a drop of up to 11 percent in NSTAR’s Basic
Service prices. These rates would go into effect on July
1.
“With prices of other energy-related products on the
rise, it’s especially good news that we are able to
lower electricity costs for our customers,” said Thomas
J. May, NSTAR Chairman, President and CEO. “This price
cut will come at a time of year when many folks use more
electricity as air conditioners, dehumidifiers and pool
pumps work the hardest.”
NSTAR solicits bids from multiple wholesale energy
suppliers in order to secure the best possible
electricity prices for its customers. These Basic
Service rates change twice a year for residential and
small business customers. The Basic Service charge
reflects the exact cost of the electricity NSTAR buys
and, in turn, delivers to local homes and businesses.
There is no money made by NSTAR on this charge.
The proposed price decrease is due in large part to
lower prices for natural gas, as the situation in the
Gulf Coast continues to improve after last fall’s
devastating hurricanes. Natural gas is a primary fuel
used to generate electricity in the Northeast.
Supplier charges for electricity vary by region. For
customers of the former Boston Edison Company, the price
will drop nearly 10 percent, from $0.1266 to $0.1144 per
kilowatt-hour. Customers using an average of 500
kilowatt-hours per month will see their total bill drop
from $106.56 to $100.47.
For customers of the former Cambridge Electric Company,
the price will drop 11 percent, from $0.1205 to $0.1067
per kilowatt-hour. Customers using an average of 500
kilowatt-hours per month will see their total bill drop
from $105.24 to $98.36.
For customers of the former Commonwealth Electric
company, the price will drop nearly seven percent, from
$0.1121 to $.1045 per kilowatt-hour. Customers using an
average of 500 kilowatt-hours per month will see their
total bill drop from $99.71 to $95.95.
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.
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