Program Gives Customers More Control Over Winter Energy Bills
August 21, 2006
While the cold weather is
still months away, NSTAR and Attorney General Reilly are
already working to help customers manage their natural
gas bills this winter. The company filed a request with
the Massachusetts Department of Telecommunications and
Energy (DTE) to allow residential and small commercial
customers the option to participate in a program that
provides a more stable, predictable gas price over the
winter heating season.
“It’s never too early to start planning for ways to save money on heating bills,” said Thomas J. May, NSTAR Chairman, President and CEO. “This new Fixed Price Option will allow our customers to lock in a certain price for natural gas during the winter months, shielding them from market fluctuations that occur when the temperatures drop.”
Under the Fixed Price Option Pilot Program, NSTAR customers can opt to set their winter natural gas rates in the fall. If the market price ends up being higher, those customers will not have to pay the higher rate. If the prices on the market end up being lower at the end of the season, the extra money goes back to all NSTAR Gas customers in the form of a reduction of rates next winter. The program was developed as a result of the Rate Settlement between NSTAR and Attorney General Reilly’s office late last year.
"While we can’t control the price of energy on the world market, we can take steps to help our customers manage their bills,” May added. “This pricing option, along with our many energy efficiency offerings, can go a long way towards helping customers manage their energy costs.”
Natural gas prices are strictly pass-through costs to customers, therefore NSTAR makes no profit on this program. If approved by the DTE, the new Fixed Price Option Program would be available to NSTAR customers in October.
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.
