NStar Gas has submitted its annual gas rate to the Massachusetts Department of Public Utilities, and if approved the rate will be the lowest in a decade and 18 percent lower than last year's rate.
According to a release from NStar Tuesday, the proposed supply rate will be 57.32 cents per therm, down from about 70 cents. If approved the new price will go into effect Nov. 1.
NStar says average heating customers will save more than $15 a month. NSTAR Gas heating customers using an average of 131 therms of
gas a month between November and May will pay $145.60 a month, down from $161.25 one year ago. For most customers who heat with natural gas, this amount also includes cooking and water-heating.
"As we head into another heating season with low prices, it’s no wonder we’re seeing record numbers of customers converting their heating systems to clean, efficient natural gas," President of NSTAR Gas Rod Powell said. "In today’s economy, with the price of other fuels hovering near all-time highs, our customers will once again be glad they chose natural gas to keep their families warm this winter."
According to NStar, 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 abundant domestic supplies.
NStar 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.