February 26, 2007
Some of the state’s largest businesses will soon see
a drop in their electricity bills as a result of NSTAR
securing second-quarter power prices that are 20 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.
Approximately 3,600 commercial and industrial customers
in NSTAR’s service territory will benefit from these
price cuts.
"We diligently shop for the lowest energy prices for all of our customers,” said Thomas J. May, NSTAR Chairman, President and CEO. “Our largest industrial customers, those businesses that drive the region’s economy, see the greatest savings when supply rates drop. We’re pleased to be able to pass these reductions on to them.”
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 12.803 cents to 10.147 cents. If approved by the Massachusetts Department of Telecommunications and Energy, the new rates will go into effect on April 1, 2007.
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, commercial Basic Service prices change every three months. The next scheduled change for residential customers is July 1.
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.
