NSTAR Electric plays a starring role in bringing electric power to Boston. The company's electric transmission and distribution utility serves 1.1 million residential, commercial, and industrial customers in Beantown and about 80 surrounding communities (including Cambridge, New Bedford, and Plymouth). NSTAR Electric also sells wholesale power to municipal utilities in the area, and it provides standard offer and default supply services to retail customers who choose not to purchase energy from competitive suppliers in the state's deregulated power market. Subsidiary Harbor Electric Energy distributes power to a Massachusetts Water Resources Authority wastewater treatment facility in Boston.
NSTAR Electric has two wholly-owned special-purpose financial subsidiaries, BEC Funding II LLC and CEC Funding LLC, set up to facilitate the sale of electric rate reduction certificates at a public offering. Another unit, BEC Funding LLC, completed its purpose in early 2010 and was dissolved.
The company derives its revenues by selling energy distribution, transmission, and energy efficiency services to its customers in a regulated environment. It also receives energy, transition, and other revenues primarily as charges to customers for the recovery of costs incurred by NSTAR Electric in acquiring energy supply on their behalf. In addition, it secures a transition charge from customers for recovery of costs related to the company's prior investments in generating plants and long-term power contracts.
In 2010 NSTAR Electric reported a slight drop in revenues primarily due to lower basic service rates in effect due to lower energy costs during the previous year's recession that were then passed on to end-users in 2010.
NSTAR Electric is a subsidiary of holding company NSTAR, which also owns NSTAR Gas Company, a retail gas distribution utility. NSTAR also operates a service company (NSTAR Electric & Gas) which provides management and support services to all of NSTAR's subsidiaries.
In 2010 NSTAR announced plans to merge with Northeast Utilities to expand market share in the New England. – less