NStar seeking electric rate hikes

NStar electric customers are facing average monthly rate hikes of about $2 to $4.50 for the six months starting Jan. 1, under new rates NStar asked state regulators to approve today.

Although overall energy prices have declined slightly in the last six months, NStar spokeswoman Caroline Allen said the increases are being driven by increased payments to power plant owners recently approved by federal regulators. Although it operates under one name, NStar Electric, the utility files different rates for the former Boston Edison Co., Cambridge Electric, and Commonwealth Electric territories.

For an average household using 500 kilowatt-hours of electricity monthly, Allen said, total would rise to $103.13 from $100.47. In Cambridge, rates would rise to $100.50 from $98.36. In ComElectric's service territory on Cape Cod and southeastern Massachusetts, the bill would climb to $100.56 from $95.95. Those figures apply to so-called basic service customers who pay NStar, rather than a competitive supplier such as the Cape Light Co., for their electric supply.

Allen said ComElectric region customers face the sharpest increase because of special extra payments regional power grid managers have allocated for the Canal generating station in Sandwich, which supplies most electricity on the Cape and is being required to produce extra power to guarantee reliable supplies in that area. The main overall factor driving rate increases is the recent launch of a new federal policy, called a forward capacity auction, that is intended to guarantee additional revenues for power plant owners to create economic incentives for energy companies to fund and build more generating stations in New England.
(By Peter J. Howe, Globe staff)