Unitil's Electric Rates in Massachusetts to Increase January 1
Hampton, NH (November 29, 2004): Unitil Corporation (AMEX: UTL) (www.unitil.com) recently filed for changes in various components of its electric rates with the Massachusetts Department of Telecommunications and Energy (MDTE). If the filing is approved, electric bills will increase from one to six percent beginning January 1, 2005.
A typical residential Default Service customer using 500 kWh per month will see their bill increase $1.49 to $75.65, or 2.0%, as a result of changes to the Delivery Service components of the rates.
A typical residential Standard Offer Service customer using 500 kWh per month will see their bill increase $3.17 to $71.90, or 4.6%, as a result of both the changes to the Delivery Service components of the rates and an increase in the energy supply costs for Standard Offer Electric Supply Service.
The rate increases are being driven primarily by the recent significant increases in the cost of oil and natural gas, fuels which are used for electric generation. Electric Default Service is designed to ensure that no one will be without a supplier of electricity. Electric Default Service supply is procured pursuant to state regulation in a highly competitive power supply solicitation process every six months for residential and small business customers, and every three months for medium and large business customers. The resulting rates reflect current market prices for electricity without any profit or markup from Unitil. Approximately 44% of Unitil's electric customers are presently on Default Service.
This filing, required annually under the Massachusetts Electric Restructuring Act, accomplishes several objectives: reconciles and resets various regulated rate mechanisms; adjusts certain Delivery Service rate components to provide for an annual inflation increase; and adjusts the Standard Offer Service Fuel Adjustment rate for the most recent fuel index price data.
Unitil is a public utility holding company with subsidiaries providing electric service in New Hampshire, electric and gas service in Massachusetts and energy services throughout the Northeast.
Contact Corporate Office
Liberty Lane West
Hampton, NH 03842-1720