HINGHAM MUNICIPAL LIGHTING PLANT
222 Central Street
Hingham, MA 02043-2745
FAX (781) 749-1396
John G. Tzimorangas
John A. Stoddard, Jr, Chairman
Walter A. Foskett., Secretary
Kevin J. Bulman, Commissioner
FOR IMMEDIATE RELEASE
Hingham Light completes Residential Rate Comparison
July 8, 2005
Hingham- The Hingham Municipal Lighting Plant has completed a review of its May 2005 Residential rates compared to the privately-owned electric utilities that surround Hingham. The comparison against the rates of Massachusetts Electric, a National Grid company, Boston Edison and Commonwealth Electric, both NSTAR Electric companies, compares residential rates after the March 1, 2005 deregulation law ended the standard offer option and makes their rates more market sensitive.
Municipal utility customers do not receive standard offer or the new basic service that was established by the State’s Electric Restructuring Law of 1998. Because the non-profit municipal utilities are locally owned and operated, and governed by local officials, they have continued to provide their customers with electricity the same way they always have, at the lowest possible cost with a high degree of reliability.
“The Standard offer rate kept the investor-owned utility costs artificially lower than the energy market, and the change as of March 1st drove up their costs an additional 6%, widening the gap between our (HMLP) rates and theirs”, said John G. Tzimorangas, General Manager of the Hingham Municipal Lighting Plant. HMLP receives their electricity from long-term contracts with suppliers and from shorter-term arrangements, including market purchases. “Restructuring has changed the electric buying business, but municipal utilities can continue to operate in the same manner that has previously kept their rates stable and competitive”, said Tzimorangas.
The graph below shows monthly costs of each utility at the 500 kWh and 750 kWh usage levels for residential customers. The typical Hingham Light residential customer pays between 10% and 39% less than the neighboring investor-owned utilities. HMLP also offers a 10% prompt payment discount which can further reduce the customer’s bill that is not available with the investor-owned utilities.
HMLP serves 10,000 residential and commercial electric customers in the Town of Hingham. HMLP continues to provide low cost, safe, reliable electricity to the residents of Hingham with a high level of service and customer satisfaction.