Boston Edison tests deregulated electricity market.

will initiate the state's first pilot program designed to address the issues related to operating in a deregulated electricity market.

The one year program was filed with the Massachusetts Department of Public Utilities (DPU) in January 1996. It will involve 10 large customers that use at least one megawatt (1000 kilowatts) of electricity at any given time.

In announcing the program, Boston Edison Chairman and CEO Thomas J. May described the company's `E Plan' for moving into the competitive market as, "the quickest path to customer choice." May said, "The `E Plan' pilot is a very important step in working with our customers to prepare them for the next dimension in deregulation which will allow consumers to choose their power provider. The pilot is an excellent opportunity for some of our larger customers to demonstrate the benefits of competition by responding to changing market prices." May noted that the pilot will provide the foundation for a competitive market for all consumers.

May said pilot participants are larger customers that have a high level of sophistication in energy matters either through technology or personnel responsible for monitoring energy use. Participating customers will include the Carney Hospital, Bentley College, Filenes, the Massachusetts Water Resources Authority, Bull Electronics, Northeastern University, the Park Plaza Hotel, the U.S. Government, Arkwright Corp. and Avery Dennison.

Brian Byrne, president of Bull Electronics said, "We welcome the opportunity to participate in Boston Edison's pilot program. The road to a competitive electric utility market remains somewhat uncertain. This pilot program is an excellent vehicle for ensuring that we are all headed in the right direction at the proper speed."

The `E Plan' pilot will reshape the utility bill for participating customers. It will provide more accurate and timely information about the cost of each component of their bill. These customers will receive hourly energy prices a day in advance that will enable them to make a conscious decision about when to buy and use power. Separately, customers will be billed for using the electrical network that delivers their energy.

Participating customers will use a computerized communications tool known as Enerlink. This tool provides customers with hourly electricity usage on a real time basis that will allow customers to analyze their electricity use patterns. Enerlink will provide customers with an hourly price forecast, which they will receive the previous day, to predict how using electricity at a certain time will impact their electric bill.

Under the pilot program, if a customer's electrical use remains the same as in 1995, the total bill will remain the same. If participating customers use the hourly price forecast to shift their electrical use to lower cost periods, they will be able to realize savings.

May said, "We recognize that there are a number of issues to be resolved before electric utilities are deregulated. Certainly one of the most important issues is to ensure that all customers, large and small, realize the benefits of a competitive market." May said he is confident that deregulation in Massachusetts will be successful because the DPU is pursuing a methodical approach that seeks input from all parties.

Edison will update the DPU on a quarterly basis on the progress of the test. The evaluation of the pilot will play an important role in future discussions involving deregulation in the Commonwealth. Boston Edison Company, Massachusetts Electric and Western Massachusetts Electric will file their respective plans for deregulation with the DPU on Feb. 16, 1996.

CONTACT: Boston Edison Company

Mike Monahan, 617/424-2460

Evenings and weekends, 617/541-7888