Unitil's Large Business Customers To See Lower Market Prices for Electricity Supply
Hampton, NH (December 19, 2006) Unitil Corporation (AMEX:UTL) announced that its New Hampshire affiliate recently filed and received approval for lower Energy Service rates for its G1 large business customers as of February 1, 2007. The reduction indicates some easing of wholesale market prices for electricity supply. Unitil's large business customers on Basic Service in Massachusetts are expected to benefit from the wholesale market decline as well.
The Energy Service rates approved by New Hampshire state regulators for Unitil's G1 large business customers are the result of a competitive solicitation for wholesale energy supply completed in early December. On average, the lower prices will reduce electricity bills by about 3%, when compared to the period November 2006 through January 2007. The contract for energy supply for November 2006 through January 2007 was procured in mid-September. The Energy Service rate change does not apply to approximately one-half of Unitil's G1 large business customers as they procure their own competitive energy supply.
Basic Service prices for Unitil's large business customers in Massachusetts are based on actual market prices in each month, determined at the end of the month. Energy supply charges are expected to decline over the winter period if current market conditions hold. Eighty percent of Unitil's large business customers in Massachusetts procure their own competitive energy supply and do not purchase Basic Service.
The decrease in wholesale electric prices is consistent with recent declines in natural gas prices, the predominant fuel for electric generation in New England. Wholesale natural gas prices have declined from the record levels of last winter and in response to strong inventories and warmer weather.
Unitil Corporation (AMEX:UTL) at www.unitil.com 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.
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