NSTAR Files for Second Gas Price Reduction This Year; Customers to see

    Business Editors/Energy Editors

    BOSTON--(BUSINESS WIRE)--March 15, 2005--For the second time this year, NSTAR is seeking to pass along to its natural gas customers a price break, this time a reduction of 12 percent. If approved, the Cost of Gas Adjustment (CGA) will combine with lower seasonal rates to reduce the bills of the average NSTAR Gas residential customer by $9.00 per month. In its filing with the Massachusetts Department of Telecommunications and Energy (DTE), NSTAR Gas proposes to reduce its CGA to 75.01 cents per therm from the current price of 85.00 cents per therm. The new price would be effective May 1, 2005.
    "With the price of other fuels steadily rising, we are pleased to announce our second price reduction this year," said Thomas J. May, NSTAR Chairman, President and CEO. "Though NSTAR makes no profit on the cost of gas, we always shop for the lowest possible price and pass any savings on to our customers."
    The CGA reflects the forecasted price of natural gas on the New York Mercantile Exchange (NYMEX), with no profit made by NSTAR on this charge. In February, NSTAR dropped the cost of gas by 10 percent, saving the average heating customer $21.00 per month.
    If the proposed price cut is approved by the DTE, the average NSTAR Gas heating customer, using 38 therms of gas per month between May and October, will pay approximately $51.19 per month, down from $60.29 based on current winter rates. Customers typically see a decrease in gas rates during summer months, but even when compared to last summer, most customers' monthly bills will fall by more than $2.00.
    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. For more information about NSTAR visit www.nstaronline.com.

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CONTACT: NSTAR Michael Durand, 508-441-5831 Evening and weekends, 617-541-7888

KEYWORD: MASSACHUSETTS INDUSTRY KEYWORD: OIL/GAS ENERGY UTILITIES SOURCE: NSTAR

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