Amid Cold Blast, NSTAR Moves to Lower Heating Bills by 10%.

BOSTON -- With bitter temperatures tightening their grip on New England, NSTAR is seeking to pass along to its natural gas customers a price break of over 10 percent. If approved, the reduced Cost of Gas Adjustment (CGA) will save the average NSTAR residential heating customer $21.00 per month. In a document filed today with the Massachusetts Department of Telecommunications and Energy (DTE), NSTAR Gas proposes to reduce its Cost of Gas Adjustment to 85.00 cents per therm from the current price of 99.68 cents per therm. The new price would be effective February 1, 2005.

"With temperatures plummeting and world energy prices soaring, we are pleased to announce this reduction for our customers at a time when most can truly use the break," said Thomas J. May, NSTAR Chairman, CEO and President. "NSTAR is committed to doing everything in its power to keep costs down for customers, and this is a clear example of that."

If the proposed Cost of Gas Adjustment is approved by the DTE, the average NSTAR Gas heating customer, using 144 therms of gas per month between November and April, will pay approximately $182.00 per month, down from $203.00. The CGA reflects the forecasted price of natural gas, with no profit made by NSTAR on this charge. The proposed reduction is due to lower-than-expected prices and reflects continuing volatility on the New York Mercantile Exchange (NYMEX).

NSTAR transmits and delivers electricity and natural gas to 1.4 million customers in Eastern and Central Massachusetts, including over one million electric customers in 81 communities and nearly 300,000 gas customers in 51 communities. For more information about NSTAR visit www.nstaronline.com.