NSTAR to refund $44M to Mass. customers

BOSTON – NSTAR Gas & Electric Co. agreed to pay $44.7 million to refund its Massachusetts customers, resolving 11 previously outstanding cases before the Mass. Department of Public Utilities that deal with the company’s capital projects, pension expenses and energy-efficiency programs.
According to a statement, NSTAR’s delivery rates include certain cost components that are updated annually outside of the base-distribution-rate cases. Called “reconciliation factors,” the measures are designed to be reviewed and reconciled against actual costs by the department after investigation and hearings. In practice, the DPU permits the utilities to collect the rates immediately and rarely completes its review in a timely manner.
Under the terms of the settlement, NSTAR Electric has agreed to refund more than $17.1 million to correct overcharges for project expenses that it agreed to undertake to improve reliability and safety of its electric-distribution system. NSTAR had filed requests with the DPU for the recovery of revenue and costs of the projects from 2006 through 2011.
NSTAR also agreed to refund more than $23.6 million in pension-benefit costs that were double-collected from November 2003 through December 2012. NSTAR will refund an additional $4 million to correct other components of its energy-efficiency charges between 2009 and 2011.
Under the terms of the settlement, NSTAR will provide restitution to its current customers through rate reductions on their bills after the settlement is approved. •