Eversource Energy proposes new gas supply rate

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5 April 2016, Gas, Electricity

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Eversource natural gas customers in Massachusetts can expect to soon be paying less than last year. If approved, Eversource residential customers who use natural gas for heating, cooking and water-heating would save, on average, about $12.00 over the six-month period.

"Natural gas continues to be a popular fuel for year-round use by our customers," said Bill Akley, President of Gas Operations at Eversource. "With supply prices dropping by about 24 percent compared to last year, we're pleased that it will remain a competitively priced choice as well."

The proposed natural gas supply rate is 23.15 cents per therm, down from last May's rate of 30.57 cents. The price cut would mean customers using an average of about 27 therms of gas will pay a total of $29.92 a month, down from the 2015 price of $31.95, or a 6.3 percent decrease on the total bill.

A conversion allowing for an apples-to-apples comparison of Eversource's proposed price with those of other fuels yields a total per-gallon equivalent for natural gas of $1.52 including all monthly charges.

The supply rate, known as the Cost of Gas Adjustment, reflects the price Eversource pays for natural gas, with no profit made by the company on this charge. The Cost of Gas Adjustment, which generally changes on May 1st and November 1st, can also change mid-season based on fluctuations in current wholesale market prices.

Source: MarketLine

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