August 20, 2008
Fourth quarter electricity costs will soon be
falling by more than 21 percent for some of the state’s
largest businesses after NSTAR secured contracts that
are significantly 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 see these price cuts.
"This price reduction benefits many of our region’s
largest businesses who collectively employ thousands of
local residents and help drive the economy,” said Thomas
J. May, NSTAR Chairman, President and CEO. “We’re
pleased to be able to pass along the cost savings we’ve
attained at a time when other business expenses are
increasing.”
The decreases can be largely attributed to the recent
drop in prices for oil and natural gas, fuels used to
generate a significant portion of New England’s
electricity. Large commercial and industrial customers
in the Boston area, most using more than 50,000
kilowatt-hours of electricity a month, will see the
price of power drop from 14.015 cents to 11.018 cents.
If approved by the Massachusetts Department of Public
Utilities, the new rates will go into effect on October
1, 2008.
“NSTAR's announcement of an upcoming reduction in the
cost of electricity is certainly great news,” said Peter
DeVito, Director of Operations for CambridgeSide
Galleria. “Keeping operating expenses down is critical
to our goal of providing our customers with superior
service at a competitive price.”
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 small business customers is
January 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.
Site Map