August 23, 2007
Fourth quarter electricity prices will soon be
falling for some of the state’s largest businesses after
NSTAR secured contracts that are 17 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. More than a thousand
of the largest customers in NSTAR’s service territory
will benefit from these price cuts.
"This price reduction affects many of our major industrial customers, those who help drive the local economy,” said Thomas J. May, NSTAR Chairman, President and CEO. “While many customers are doing what they can to reduce energy consumption, nothing helps lower bills more than a significant price reduction on the competitive electricity market. We are so pleased to be able to pass these savings on to our commercial and industrial customers.”
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 11.418 cents to 9.469 cents. If approved by the Massachusetts Department of Public Utilities, the new rates will go into effect on October 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 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.
