NSTAR Proposes 13 Percent Cut in Winter Electricity Prices

Average Residential Customers to Save About $3.00 per Month Compared to January 2010

BOSTON--(BUSINESS WIRE)--NSTAR’s residential customers can expect to see a 13 percent cut in electricity supply prices for the first six months of 2011. The new price, which will save NSTAR's average residential customer about $3 a month compared to the first six months of this year, would be in effect between January 1^st and June 30^th. Nearly 800,000 customers in NSTAR’s service territory will benefit from these price cuts. The proposed rate is pending approval by the Massachusetts Department of Public Utilities.

“This is great news for customers as we head into the winter months and we're pleased to be able to pass these savings along.”

“An abundant supply of natural gas, which is the fuel used most to generate electricity in our region, has helped to push prices down,” said Tom May, NSTAR Chairman, President and CEO. “This is great news for customers as we head into the winter months and we're pleased to be able to pass these savings along.”

Though delivery charges vary slightly by region, the Basic Service supply price for all NSTAR residential customers will drop by 13 percent, from 8.88 cents in January 2010 to 7.718 cents per kilowatt-hour beginning in January 2011. Customers of the former Boston Edison Company using an average of 500 kilowatt-hours per month will see their total bill drop from $86.68 to $83.66. The average 500 kilowatt-hour bill for customers of the former Cambridge Electric Company will fall from $79.23 to $76.14. For those in the former Commonwealth Electric territory, the average bill will decrease from $91.15 to $88.27. The proposed price is a drop of over three percent compared to the current supply charge.

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, the Basic Service price for residential customers changes twice a year, on January 1^st and July 1^st.

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.