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NSTAR Offers Mid-Winter Relief to Natural Gas Customers; Company Looks to Cut Natural Gas Prices By 36 %

Posted on: Wednesday, 22 February 2006, 15:00 CST

As consumers grapple with high energy bills this winter, NSTAR (NYSE: NST) is seeking to pass along a price break of 36 percent to its natural gas customers. If approved, the reduced Cost of Gas Adjustment (CGA) will save the average NSTAR Gas residential customer $71.35 per month. In its filing with the Massachusetts Department of Telecommunications and Energy (DTE), NSTAR Gas proposes to reduce its CGA to 90 cents per therm from the current price of $1.39 per therm. The new price would be effective March 1, 2006.

"At this time of historically high global energy prices, we are extremely pleased to bring these significant savings home for our customers," said Thomas J. May, NSTAR Chairman, President and CEO. "The price increases we saw in the aftermath of the Gulf Coast hurricanes were difficult to bear. While it has been a fairly mild season so far, there are still many winter nights to go before spring and so this reduction will go a long way towards helping customers handle their heating bills."

If the proposed price cut is approved by the DTE, the average NSTAR Gas heating customer, using 144 therms of gas per month between November and April, will pay approximately $190 per month, down from $261 based on current winter rates. The CGA reflects the forecasted price of natural gas, with no profit made by NSTAR on this charge. The proposed reduction is due to lower-than-expected prices and reflects continuing volatility on the New York Mercantile Exchange (NYMEX). If approved, this would be the second price cut for NSTAR Gas customers this year.

NSTAR transmits and delivers electricity and natural gas to 1.4 million customers in Eastern and Central Massachusetts, including over one million electric customers in 81 communities and nearly 300,000 gas customers in 51 communities.

Source: Business Wire

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