NStar is seeking to hike its electricity rates by 29 percent beginning Jan. 1, citing constraints in the pipelines that bring natural gas to regional generating companies.
The utility filed the rate increase request with state regulators yesterday. If the Department of Public Utilities approves the proposal, the average customer using 500 kilowatt-hours of electricity would see a $28 monthly bill increase to $123.41, said Mike Durand, an NStar spokesman.
"This change we've filed represents the exact price we pay for the electricity we buy from generators on behalf of our customers," Durand said.
That price has increased, he said, because more than half of New England's electricity is now produced using natural gas. And although gas remains an abundant and inexpensive fuel, regional pipelines are not equipped to meet the growing dependence on gas to produce electricity, Durand said.
Mary-Leah Assad, a spokeswoman for the Executive Office of Energy and Environmental Affairs, said the Patrick administration and the Department of Public Utilities are working with all of the state's electric utilities to ensure residents and businesses are aware of the programs available to help manage energy costs this winter.
"The basic-service rate increases underscore the importance of continued aggressive investments in energy efficiency and a diverse energy mix to stabilize prices and secure our energy future," Assad said.
National Grid, Massachusetts' other major electric utility, proposed a 37 percent rate hike earlier this fall, prompting Attorney General Martha Coakley's office to request that the company's winter electricity rates be recalculated to spread the impact over a 12-month period. But the Department of Public Utilities denied the request, saying it would be contrary to department precedent and disrupt the competitive market, potentially resulting in higher future prices.
Yesterday, Jillian Fennimore, a spokeswoman for Coakley, said: "Our office remains very concerned about these increases in electricity bills, and we will continue to advocate for ways to mitigate rate hikes this winter season and in the future. We have encouraged the DPU to educate and protect consumers considering alternatives offered by competitive suppliers, and examine additional solutions to help reduce this impact on ratepayers in Massachusetts."
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