Eversource winter price to drop 8%
Despite pipeline constraints, prices are falling
EVERSOURCE ENERGY said its customers will pay about 8 percent less this winter for electricity, suggesting that constraints on natural gas supplies coming into the region won’t have a major impact on rates this coming year.
Eversource, in partnership with Spectra Energy of Houston and National Grid, wants to build the Access Northeast pipeline to expand the supply of cheap natural gas coming into New England. The company says pipeline constraints, combined with greater demand, typically drive up the price of gas in the winter months, resulting in higher prices for electricity.
But the company announced on Tuesday that its basic service rate, which takes effect Jan. 1 and lasts for six months, will be 9.996 cents per kilowatt hour, down from 10.844 cents last winter and well below the price of 14.97 cents a kilowatt hour during the winter of 2015.
The basic service rate is the price of power for those customers who don’t select their own natural gas supplier and instead rely on their utility to purchase power on their behalf. The basic service price is established through a competitive bid process with regional power suppliers; Eversource passes the cost directly through to customers.
For an Eversource basic service customer using 600 kilowatt hours of electricity a month, the price decrease will yield a bill of $131.05, nearly 4 percent less than a year ago. The basic service price represents only a portion of an electric bill; other charges on the bill include transmission, distribution, and customer fees.