NSTAR to Cut Residential Power Rates by 27%

I saw this reported in the Boston Globe, they said that the legislature had to vote to approve this, it's beyond me why they'd choose not to. Here's the post on the Boston Globe Business Wire News Release. Good to hear of savings in these tough economic times hopefully it'll make even a small difference to Massachusetts residents.

NSTAR to Cut Residential Electricity Prices by 27 percent
http://finance.boston.com/boston/?GUID=8611771&Page=MediaViewer&Ticker=NST - Direct link

NSTAR’s residential customers can expect to see a 27 percent drop in electricity prices just in time for this year’s peak air conditioning season. If approved, the proposed new rates will save the average NSTAR customer more than $17 each month between July 1st and December 31st. Nearly 800,000 customers in NSTAR’s service territory will benefit from these price cuts.

“We haven’t seen electricity prices this low in four years and this decrease couldn’t come at a better time for our customers,” said Tom May, NSTAR Chairman, President and CEO. “Many folks are facing difficult financial decisions in the current economy so it’s especially important that we’re able to pass along these significant monthly savings.”

Though delivery charges vary slightly by region, the Basic Service supply price for all residential customers will drop by 27 percent, from 12.71 cents to 9.22 cents per kilowatt-hour. Customers of the former Boston Edison Company using an average of 500 kilowatt-hours per month will see their total bill drop from $106.00 to $88.56. The average 500 kilowatt-hour bill for customers of the former Cambridge Electric Company will fall from $95.04 to $77.60. For those in the former Commonwealth Electric territory, the average bill will decrease from $110.21 to $92.77.

The decreases can be largely attributed to a drop-off in prices for oil and natural gas, fuels used to generate electricity. As a regulated distribution company, NSTAR purchases electricity from suppliers and passes the cost directly to customers who are on the company’s Basic Service supply rate, with no profit to NSTAR. Customers who purchase electricity through aggregate buyers or directly from suppliers are not affected by this price reduction. By law, Basic Service prices for residential customers change twice a year, on July 1st and 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. For more information, visit www.nstar.com.

Contacts: NSTARCaroline Allen, 617-424-2460orMichael Durand, 508-441-5831orEvening and weekends, 617-541-7888

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