National Grid Anticipates Lower Natural Gas Rates in Massachusetts for Winter Season

WALTHAM, MA (10/19/2010)(readMedia)-- This heating season, National Grid's natural gas customers in the Commonwealth likely can look forward to a reduction in the cost of natural gas, compared with last year's costs. To reflect the anticipated reduction, the company has filed a request with the Massachusetts Department of Public Utilities to lower the cost of gas -- or supply price -- by 14 per cent for the period November 1, 2010 through April 30, 2011.

If approved, a typical residential heating customer who uses 1,137 therms, would pay on average, approximately $133 less for their natural gas supply this winter heating season.

There are two components of a customer's natural gas bill – supply and delivery costs. Delivery prices reflect the costs to bring the gas directly to customers, maintain the local gas network and provide emergency response and customer service. Supply costs, which make up the majority of a customer's bill, include the cost of the commodity itself that is passed on directly to our customers without markup.

"A reduction in the cost of natural gas this winter is great news for our customers as they prepare for cooler weather and start to think about heating costs. Everyone looks for ways to save on energy costs as winter approaches, especially in our current economy," said Nick Stavropoulos, executive vice president of U.S. Gas Distribution for National Grid. "We're pleased to pass on the news that not only is their fuel source a clean burning, versatile heating choice, but this year it also will cost less to use."

On April 16, 2010, National Grid filed with the DPU for an increase in its distribution rates, a component of the delivery portion of a customer's bill. The proposal -- the first of its kind in 14 years -- is designed to allow for significant continued investment in the gas delivery system that will help meet customers' future energy needs by enhancing system integrity and safety and help ensure reliable operation in years to come.

A decision on the company's distribution rate proposal is expected by November 2. If an increase is approved by the DPU, the reduction in the cost of gas this winter would help offset a change in rates in the distribution portion of customers' bills.

Use Energy Wisely

National Grid always encourages customers to use energy efficiently and urges them to sign up for its campaign that urges customers to pledge to use three percent less energy every year for the next ten years.

The cornerstone of the three percent less campaign is an interactive website, www.powerofaction.com, where visitors can sign a pledge; participate in a free energy evaluation; and learn ways to reduce their energy consumption by:

• Implementing simple low-cost or no-cost energy conservation methods

• Converting from oil to gas heat

• Taking advantage of National Grid energy efficiency programs in their region

National Grid has a more than 20-year track record of successful, award-winning efficiency programs in the U.S., many available to Massachusetts customers. Customers can also realize savings on their energy bills through company supported energy assistance programs and products. Information is also available at www.powerofaction.com.

Payment Plans and Assistance

Qualified customers can also sign up for the National Grid Budget Plan to spread the balance of their energy bills over a period of several months. To learn more about the Budget Plan, go to www.nationalgridus.com, click on Massachusetts under "Natural Gas" then click on "Balance Bills With Budget Plan."

Customers who are having trouble paying their bills should call National Grid at 888-211-1313 to speak with a representative about addressing overdue balances and setting up a payment program.

National Grid is an international energy delivery company. In the U.S., National Grid delivers electricity to approximately 3.3 million customers in Massachusetts, New Hampshire, New York and Rhode Island, and manages the electricity network on Long Island under an agreement with the Long Island Power Authority (LIPA). It is the largest distributor of natural gas in the northeastern U.S., serving approximately 3.4 million customers in Massachusetts, New Hampshire, New York and Rhode Island. National Grid also owns over 4,000 megawatts of contracted electricity generation that provides power to over one million LIPA customers.

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