NSTAR to Refund $44.7 Million to Customers for Overcharges

NSTAR Gas & Electric Company has agreed to pay $44.7 million to refund its customers, resolving 11 previously outstanding cases before the Department of Public Utilities that deal with the company’s capital improvements, pension expenses, and energy efficiency programs, in an agreement announced Wednesday.

Under the terms of the settlement, NSTAR will provide restitution to its current customers through rate reductions on their bills after the settlement is approved by the Department of Public Utilities. The parties have requested approval of the settlement by March 2, 2015. The Massachusetts Attorney General Office announced the agreement.

NSTAR’s delivery rates include certain cost components that are updated annually outside of the base distribution rate cases. These so-called “reconciliation factors” are supposed to be reviewed and reconciled against actual costs by the Department of Public Utilities after investigation and hearings.

Under the terms of the settlement, NSTAR Electric has agreed to refund more than $17.1 million to correct overcharges for project expenses that it agreed to undertake to improve reliability and safety of its electric distribution system. NSTAR had filed requests with the DPU for the recovery of revenues and costs of the projects from 2006 through 2011.

NSTAR agreed to refund more than $23.6 million in pension benefit costs that were double-collected through both its Pension Adjustment Factor and its Energy Efficiency charges from November 2003 through December 2012. NSTAR will refund an additional $4 million to correct other components of its energy efficiency charges between 2009 and 2011.