Boston Edison Makes Announcement.

Business Editors

BOSTON--(BUSINESS WIRE)--May 16, 2000

Boston Edison Company, an NSTAR company, and Local 369 of the Utility Workers of America announced today that they have reached agreement on a new five-year contract. The new contract, which was ratified by Local 369 membership yesterday, replaces the previous contract that expired at midnight last night.

Boston Edison has also reached a tentative agreement with the office technical and professional union Local 387 of the Utility Workers of America. A ratification vote on that contract is scheduled for Wednesday, May 17, 2000.

The new contract with Local 369 provides for enhanced wages and benefits including an approximate 15 percent wage increase over the five-year period. It is a major step forward in creating a common benefit platform for all NSTAR employees. With this agreement, medical, dental, vision, life insurance and 401k benefits for members of 369 are in line with benefits received by management employees in all NSTAR companies.

The new agreement also provides for work practice changes designed to improve customer service, reduce operating costs and establish common work practices for NSTAR operating companies. By standardizing field crew operations, the contract provides greater flexibility in the deployment of people and the assignment and completion of work. It also establishes more than a dozen joint committees to identify additional steps to improve customer service, enhance operating efficiency and reduce costs.

Boston Edison and NSTAR Chairman and CEO Thomas J. May said, "I am extremely proud of the union and management teams that devoted numerous hours to obtaining the best possible contract for all concerned. The teams recognized the ongoing changes in our industry and they worked diligently to develop an agreement that allows us to move forward as a stronger team. This contract is good for employees and customers and it demonstrates the value of union and management people working together to address issues and create solutions. It also demonstrates the value of the merger that created NSTAR."

Local 369 President Patrick Carney said, "Yesterday's ratification vote was a testimony to the success of our negotiators who were determined to obtain the best possible contract for our members. Especially important in this contract is the stability it provides for our members in the face of the deregulation and restructuring affecting the whole industry. Our members have been vital to the company's success in the past because of our dedication to our customers and we shall continue that role as we move forward."

Boston Edison is an NSTAR operating company. NSTAR was formed in August 1999 through a merger of BEC Energy and Commonwealth Energy System. The company, headquartered in Boston, Massachusetts provides regulated electric and gas utility services and is also engaged in telecommunications and other non-regulated activities. NSTAR, through its subsidiaries, Boston Edison Company, Cambridge Electric Light Company, Commonwealth Electric Company and Commonwealth Gas Company, serves approximately 1.3 million customers throughout Massachusetts, including approximately 1,040,000 electric customers in 81 communities and 240,000 gas customers in 51 communities. More information can be found at the company's Web site - www.nstaronline.com.