NSTAR is proposing to lower its electricity supply rates for its largest electricity customers to their lowest levels in nine years. Large commercial and industrial customers in the Boston area who are on NSTAR’s Basic Service offering will see the supply rate drop by nearly 34 percent, to 5.530 cents per kilowatt-hour, from the current rate of 8.351. If approved by the Massachusetts Department of Public Utilities, the new rate will go into effect on April 1, 2012. Over a thousand customers in NSTAR’s service territory will benefit from these price cuts. “Such a significant drop in electricity prices will be very welcome news for many of the area’s largest business, those that are among the main drivers of our economy,” said Tom May, NSTAR Chairman, President and CEO. “We’re thrilled that electricity and natural gas prices are declining, even as the price for other fuels remains high.” 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. 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 the largest commercial and industrial customers change every three months. The next scheduled change for residential and small commercial customers is July 1st. Electricity use varies greatly for large commercial and industrial customers in NSTAR’s service territory. On average, these large companies typically use between 100,000 and 500,000 kilowatt-hours of electricity a month. For those customers, the proposed supply rate cut would mean a minimum savings of $3,000 in electricity costs every month. 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.
Nstar (NYSE:NST) hit a new 52-week high Tuesday as it is currently trading at $48.87, above its previous 52-week high of $48.66 with 144,998 shares traded as of 3:30 p.m. ET. Average volume has been 364,500 shares over the past 30 days.
Nstar (NYSE:NST) hit a new 52-week high Monday as it is currently trading at $47.62, above its previous 52-week high of $47.59 with 124,806 shares traded as of 1:47 p.m. ET. Average volume has been 364,500 shares over the past 30 days.
The ex-dividend date for Nstar (NYSE:NST) is tomorrow, February 28, 2012. Owners of shares as of market close today will be eligible for a dividend of 45 cents per share. At a price of $46.80 as of 9:30 a.m., the dividend yield is 3.8%.