WMECO announces lower rates for businesses

SPRINGFIELD Western Massachusetts Electric Company (WMECO) announced that its competitive bid process was successful in purchasing supply for its Basic Service customers at the lowest possible price on the marketplace resulting in lower rates for medium and large commercial and industrial customers through the end of 2007.

Commercial and industrial customers will see a fixed rate of 9.595 cents per kilowatt hour (kWh) from Oct. 1-Dec. 31, a decease of 14 percent over the current rae of 11.159 cents. The competitive bid process for these customers occurs every three months, unlike residential and small business customers, where the bidding is conducted every six months.

"Despite the volatility in natural gas and oil prices, our competitive bid process has yielded favorable results for our large use customers," said WMECO's President and Chief Operating Officer Rodney O. Powell. "Residential customers also benefited from a successful bid process earlier this summer, when rates dropped seven percent for the second half of 2007," according to Powell.

As part of restructuring, WMECO purchases electricity for its Basic Service customers through an open competitive bid process. Basic Service is for customers who have not chosen to purchase their electricity on the open marketplace.

Although the current supply rate remains secure through 2007, Powell cautions customers that volatility remains in the market, and it is uncertain where the marketplace will be when bidding is conducted for 2008 pricing.