NSTAR: Gas Customers Could See Price Reductions

NSTAR Gas customers may see some relief in their winter heating costs.

According to press release put out by the utility company today, NSTAR customer can expect a mid-winter price cut thanks to a "continued steady decline in natural gas prices."

"NSTAR’s current supply price, which is already significantly less than last winter, will drop by 16 percent on February 1 if the company’s proposal is approved by the Massachusetts Department of Public Utilities," the release states.

What this means for customers, NSTAR says, is that on average, the new lower supply price will save NSTAR customers who heat with natural gas about $15 a month compared with current rates and a total of about $30 a month compared to last winter.

“Along with being one of the cleanest, most efficient heating-fuel options, the continued drop in prices has made natural gas one of the most economical choices as well,” said Tom May, NSTAR Chairman, President and CEO. “While prices for other heating fuels remain high, lower natural gas prices are helping families to stay warm this winter with less of an impact on their household budgets.”

According to the release, NSTAR has submitted a new gas supply rate of 58.69 cents per therm, down from the current rate of about 70 cents. If the proposed price cut is approved, NSTAR Gas heating customers using an average of 131 therms of gas a month between November and May will pay a total of $144.68 a month, down from the current price of $159.63. For most customers who heat with natural gas, this amount also includes cooking and water-heating.

A conversion allowing for an apples-to-apples comparison of NSTAR’s proposed price with those of other fuels yields a total “per gallon” price for natural gas of $1.54, the release states.

The supply rate, known as the Cost of Gas Adjustment, reflects the price NSTAR pays for natural gas, with no profit made by the company on this charge. The proposed decrease reflects a continued decline in natural gas prices due in part to plentiful domestic supplies.

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.