SPRINGFIELD, Mass. — Western Massachusetts Electric Company's medium and large commercial and industrial customers who choose Basic Service will see increased electric supply prices beginning in October as a result of the latest round of competitive bidding. Medium and large C&I customers will see a fixed rate of 8.051 cents per kilowatt hour (kWh) from Oct. 1 through Dec. 31, an increase of just under a penny per kWh over the current fixed rate of 7.052 cents.
The energy supply was solicited in the open energy marketplace for those customers who have not chosen to purchase their energy supply from a competitive supplier. The increase in supply price reflects the projected seasonal price of energy at the time of bidding in July.
"For medium and large business customers who choose Basic Service, our role is to competitively procure the energy supply in the marketplace," said Peter Clarke, president and chief operating officer of WMECo. "We encourage business customers to seek out suppliers who may be able to offer better supply rates directly."
WMECo purchases electricity for its Basic Service customers through an open competitive bid process. Basic Service is for customers who have not chosen to purchase their electricity in the open marketplace. The competitive bid process for medium and large C&I customers occurs every three months. For residential and small business customers, the bidding is conducted every six months.
WMECo, part of the Northeast Utilities System (NYSE:NU), serves approximately 200,000 customers in 59 communities throughout Western Massachusetts. For more information: www.wmeco.com.
SPRINGFIELD, Mass. — Western Massachusetts Electric Co. filed an application on Friday with the Massachusetts Department of Public Utilities requesting an increase in electric distribution rates which would become effective Feb. 1, 2011.
If approved as filed, residential customers using 600 kilwatt-hours a month would see an increase in their monthly bill of approximately $7.50, or about 8 percent. On average, business customers would see bill increases ranging from 1 percent to 6 percent, depending on load and usage.
The WMECo request seeks a $28 million adjustment to revenues and other changes that will enable the company to continue making needed investments in the electric system to preserve the high levels of reliability customers expect and deserve, according to a company statement.
"We are very cognizant of the effect of increasing electric rates on our customers and have worked hard to moderate the amount we are seeking. There is never a good time to ask for a rate increase, but with this filing we feel we have achieved a reasonable balance between the investments we need to make in our system and the effect on customer bills," said Peter J. Clarke, WMECo president and chief operating officer.
"Our customers have increasing expectations for safe, reliable delivery of electricity. We have reached the point where we can no longer satisfy those expectations in a climate of declining sales and increasing demands on the delivery system, unless we increase our investment in our infrastructure," Clarke continued.
WMECo actually reduced its rates beginning July 1 in response to lower fuel prices. While the overall cost went down, delivery charges increased. The residential rate was set at 7.647 cents per kWh.
Western Mass. Electric Co. says its residential and commercial and industrial who purchase their energy supply through WMECo will see a decrease in supply rates beginning July 1.
The drop in price is a result of the latest round of competitive bidding, according to Peter Clarke, president and chief operating officer of WMECo. He added that "Summer, however, is traditionally the time of year when energy consumption increases, so we encourage all customers to review their energy use and consider ways to conserve."
From July 1 to Dec. 31, residential customers will see a supply rate of 7.647 cents per kilowatt hour (kWh), a 7 percent decrease over the current fixed rate of 8.237 cents. Small C&I customers will see a nearly 6 percent decrease from 8.972 cents per kWh to 8.44 cents starting in July. Both residential and small C&I customers' supply rates change twice a year (in January and July) and remain in effect for six months.
Medium and large C&I customers on basic service will see a fixed rate of 7.052 cents per kilowatt hour (kWh) beginning in July, a decrease of 17 percent over the current fixed rate of 8.528 cents. Medium and large C&I customers' rates change quarterly.
For more information about energy saving measures and programs, visit www.wmeco.com or follow the company on Twitter and Facebook.