Massachusetts Electric Company requests reduction in default service rates

NORTHBOROUGH, Mass., Sept. 18, 2001 – Massachusetts Electric Company has filed a request with the Massachusetts Department of Telecommunications and Energy (DTE) to reflect the current lower cost of power it purchases on behalf of its customers on Default Service.

The lower costs are the result of a decline in the price of wholesale electricity.

The company does not profit from increases or decreases in power supply costs, which are directly passed through to the customer.

Massachusetts Electric is seeking a decrease of more than 2 cents per kilowatt-hour (kWh) on the fixed price Default Service portion of residential customers’ electric bills, effective November 1, 2001. If approved, the typical residential customer on fixed price Default Service using 500 kWh of electricity will see a 15.2 percent, or $11.48, reduction in the overall monthly bill.

Currently, the fixed price Default Service rate for residential customers is 9.213 cents per kWh. A typical residential customer using 500 kWh per month now pays approximately $75.60. The proposed fixed price Default Service rate for residential customers is 6.917 cents per kWh. A typical residential customer’s bill under the proposed reduced rate would be $64.12 per month.

“We are pleased that lower wholesale market prices allow us to reduce rates to our customers on Default Service beginning November 1. We are also hopeful that more market choices will be available for customers as we go forward and the power markets develop further,” said Cheryl LaFleur, president and chief executive officer of Massachusetts Electric.

Approximately 25 percent of Massachusetts Electric customers – or 300,000 — are on the Default Service rate.

Massachusetts Electric’s current rate request for customers on Default Service reflects its costs of Default Service power supply from November 2001 through April 2002.

Massachusetts Electric serves 1.2 million customers in 168 Massachusetts communities and is a distribution subsidiary of National Grid.

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