NSTAR Proposes Mid-Winter Natural Gas Price Cut
Customers of NSTAR Gas can expect to see a substantial 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 st if the company’s proposal is approved by the Massachusetts Department of Public Utilities. On average, the new lower supply price will save NSTAR customers who heat with natural gas about $15.00 a month compared with current rates and a total of about $30.00 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.”
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 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.
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