Massachusetts customers of National Grid could be in for a “significant rate reduction” from a rate filing the company made with the state’s Department of Public Utilities in which it proposes to reduce gas costs by about 65% compared to 2008. It also proposes cutting electricity rates to 2006 levels.

If approved, the new rates would take effect May 1 and continue through October. The lower rates reflect lower market prices for natural gas and oil.

National Grid proposes to lower the price of natural gas to 51 cents/therm compared to $1.49/therm during the same period last year — a 65.7% reduction. This translates into savings of nearly $50 per month for the typical residential customer and marks the lowest rate customers have paid for gas since 2002, the company said.

Xcel Energy Inc. recently announced a similar rate cut for its Colorado gas customers (see Daily GPI, March 20). Low natural gas prices have triggered a spate of rate cuts at the nation’s utilities.

Under the proposed electricity rates, the cost of electricity for National Grid customers will drop 23% from 12.6 cents/kWh to 9.7 cents/kWh. For a typical customer using 500 kWh/month, this translates into a savings of roughly $15 per month. This will be the lowest rates have been since May 2006, National Grid said. Electricity rates reflect the price National Grid pays for the electricity it purchases from the low bidder in a regularly scheduled competitive bidding process.

©Copyright 2009Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.