300 Cadwell Drive, Springfield 01104
News Release
WMECo Files New Six-Month Supply Rate
Company reminds customers about opportunities to reduce use and lower bills
Springfield, Mass. (November 14, 2014) – Citing a dramatic increase in the price of electricity WMECo buys on behalf of customers, the company today filed for an increase in its Basic Service supply rate that would become effective on January 1st.The current spike in electricity prices stems from widely publicized constraints in the existing pipelines that bring natural gas to regional generating companies.
The proposed change in WMECo’s Basic Service supply rate would increase the average residential customer’s bill by about $26, or approximately 29 percent. The new rates must first be approved by the Massachusetts Department of Public Utilities.
“We’re always mindful of the effect these supplier increases have on our customers, particularly those who are facing difficult financial circumstances,” said Penni Conner, Senior Vice President and Chief Customer Officer at Northeast Utilities, WMECo’s parent company. “We’re urging all WMECo customers to take advantage of our efficiency programs to help reduce their usage, tighten-up their homes and keep energy bills down this winter.”
As a regulated delivery company in Massachusetts WMECo purchases electricity from suppliers and passes the cost, with no profit added, directly to customers who are on the company’s Basic Service supply option. By law, the Basic Service price for residential and small commercial customers changes twice a year, on January 1st and July 1st. Customers who purchase their electricity through aggregate buyers or directly from suppliers would contact those companies for information about any anticipated increases in their rates.
The supply charge for all WMECo residential customers on the company’s Basic Service supply option would increase to 14.015 cents per kilowatt-hour. Customers using an average of 500 kilowatt-hours per month would see their bill increase from $90.40 to $116.26, or about 29 percent.
More than half of New England’s electricity is now produced using natural gas. Though natural gas remains an abundant and inexpensive fuel, regional pipeline limitations and the growing dependency on gas to produce electricity are pushing prices higher. While these constraints will continue to affect electricity customers in the near-term, Northeast Utilities is committed to pursuing strategic projects to help solve these challenges. To that end, NU and Spectra Energy recently proposed the