As natural gas values continue to hover below six-year lows, Massachusetts-based investor-owned electric and gas utility NSTAR informed its natural gas customers this week that they likely will be seeing a 70% decrease in prices starting in May.

The company, which transmits and delivers electricity and natural gas to 1.4 million customers in eastern and central Massachusetts, has submitted a proposed summer rate of 38 cents/therm, down from last summer’s average cost of $1.30/therm.

If approved by the Massachusetts Department of Public Utilities, the price cut will save the average NSTAR gas heating customer about $35 a month.

Front-month gas futures prices have fallen precipitously since last summer. After futures peaked at $13.694/MMBtu on July 2, 2008, prompt-month values have plummeted approximately 72% to Monday’s close of $3.850.

“The continued decline of natural gas prices on the futures market will translate into big monthly savings for our customers this summer,” said NSTAR CEO Tom May. “In this economy, every opportunity to save money helps and we’re pleased to pass on these lower costs at a time when everyone can use a little extra.”

If the proposed cost of gas is approved, the average NSTAR gas heating customer using 38 therms a month between May and October will pay approximately $15 a month, down from $50 a month last summer. The average NSTAR gas nonheating customer using 12 therms of gas a month will pay about $5 a month, down from $16. The proposed summer rate is also a 69% decrease from the current winter rate of $1.24/therm.

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