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NSTAR Green customers could see premiums rise if proposed rates are approved by the Massachusetts Department of Public Utilities. NSTAR customers purchasing 50 percent green power would see premiums increase from 0.837¢ per kilowatt-hour (kWh) to 2.356¢/kWh, and customers purchasing 100 percent green power would see premiums increase from 1.396¢/kWh to 4.435¢/kWh.
NSTAR entered into 10-year fixed price contracts for wind energy and RECs, however, the green power premium is based in part on the difference between the fixed price contract and the wholesale energy spot market price received for the wind energy. Under the current rate structure, NSTAR has been under recovering its costs because the initial rate forecasted future spot market prices to be higher than they actually were. It is worth noting that the total price for NSTAR Green (combined with Basic Service) after this proposed adjustment will be slightly lower than the total price when this offering was launched in July 2008.
News Article - NSTAR Green Seeks Rate Hike
Additional Information - NSTAR Green Rate Change
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