BOSTON – NStar is proposing a cut in its natural gas rate charges, according to The Boston Globe on Tuesday.
The proposal results from the utility’s regular six-month review of its rates and reflects the declining price of natural gas, the newspaper said.
For the average residential user in Massachusetts, that could mean a 13 percent, or $17, reduction on the monthly bill. The average monthly bill for the last heating season was $178, which would be reduced to $161, if the new rates are approved by the state Department of Public Utilities regulators. They would take effect on Nov. 1.
NStar explained there is an abundance of natural gas supplies, and as a result, domestic prices are going down.
The lower cost of natural gas is “like a modern day miracle,” said Phil Flynn, senior market analyst at research firm PFGBest in Chicago, to the Boston Globe.
“If you go back 10 years, we thought the country was running out of natural gas. Now, natural gas prices are going the other way from oil prices because it’s cheaper to produce with new technologies.”