February 10, 2009
Thanks to falling prices for fuels used to generate electricity, NSTAR is announcing lower supply rates for its largest electric customers. Commercial
and industrial customers in the Boston area will see their
second quarter power prices drop by 19
percent.
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 commercial and industrial customers in NSTAR’s service territory will benefit from these price cuts.
“These lower electricity prices couldn’t come at a better time for our local businesses who buy their power supply from us,” said Tom May, NSTAR Chairman, President and CEO. “Many of these companies are struggling in this current economic climate and it’s gratifying to be able to pass along such significant savings at this crucial time.”
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 10.673 cents to 7.906 cents per kilowatt-hour.. If approved by the Massachusetts Department of Public Utilities, the new rates will go into effect on April 1, 2009.
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 commercial customers is July 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.
