NSTAR
Encyclopedia
NSTAR is a utility
company that provides retail electricity and natural gas
to 1.4 million customers in eastern and central Massachusetts
, including the Boston
urban area.
NSTAR was formed in 1999 by the merger of BEC Energy and Commonwealth Energy System and currently has the following operating units: Boston Edison Company, Cambridge Electric Light Company, Commonwealth Electric Company, and NSTAR Gas Company (formerly Commonwealth Gas and Cambridge Gas Company).
As a part of deregulation
of the local electrical power industry
, NSTAR has divested itself of all electric generation facilities, keeping only those elements of the business which remain regulated. NSTAR sold its interest in the Seabrook Station nuclear power plant
to FPL Group
in 2002.
NSTAR has ownership of unregulated district energy and telecommunications businesses, including Medical Area Total Energy Plant, Inc. which produces electricity, steam and chilled water for sale to customers in the Longwood Medical Area of Boston.
Electric power distribution in the New England area is coordinated by ISO New England
, a Regional Transmission Organization
.
(EPA) for discharging oil into the Charles River
. The EPA also stated that NSTAR had failed to prepare spill plans at four of its facilities, in Brighton, Cambridge, Needham, and West Roxbury, where oil is pumped through their pipe lines. In July 2007, NSTAR Electric introduced a new program called NSTAR Green. In May 2008, NSTAR Green signed ten-year contracts for sixty megawatts of wind power
from two wind farm
s in New York and Maine. They offered their customers a chance to buy 50-100 percent of their power from these wind farms. Power purchased through NSTAR Green would reduce reliance on fossil fuels that are traditionally used to meet the region’s electricity demand.
, both of which are downgradient of the NSTAR facility. Many local activists are lobbying for NSTAR to abide by state regulations and spend the $20-40 million required to perform a PCB remediation of the affected lands.
and Northeast Utilities
to build a new High-voltage direct current
(HVDC) line from Windsor, Quebec
(connecting with the Quebec - New England Transmission
line) to a location in central New Hampshire. It is projected that the line will either run in existing right-of-way adjacent to the HVDC line that runs through New Hampshire, or it will connect to a right-of-way in northern New Hampshire that will run through the White Mountains. This 180- to 190-mile line, projected to carry 1,200 megawatts, will carry electricity to approximately one million homes.
and NSTAR announced they would merge, with the resulting company retaining the Northeast Utilities name. Under the terms of the transaction, NSTAR shareholders will receive 1.312 Northeast Utilities common shares for each NSTAR share that they own. The deal is subject to regulatory approval.
Public utility
A public utility is an organization that maintains the infrastructure for a public service . Public utilities are subject to forms of public control and regulation ranging from local community-based groups to state-wide government monopolies...
company that provides retail electricity and natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
to 1.4 million customers in eastern and central Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
, including the Boston
Boston
Boston is the capital of and largest city in Massachusetts, and is one of the oldest cities in the United States. The largest city in New England, Boston is regarded as the unofficial "Capital of New England" for its economic and cultural impact on the entire New England region. The city proper had...
urban area.
NSTAR was formed in 1999 by the merger of BEC Energy and Commonwealth Energy System and currently has the following operating units: Boston Edison Company, Cambridge Electric Light Company, Commonwealth Electric Company, and NSTAR Gas Company (formerly Commonwealth Gas and Cambridge Gas Company).
As a part of deregulation
Deregulation
Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces.Deregulation is the removal or...
of the local electrical power industry
Electrical power industry
The electric power industry provides the production and delivery of electric energy, often known as power, or electricity, in sufficient quantities to areas that need electricity through a grid connection. The grid distributes electrical energy to customers...
, NSTAR has divested itself of all electric generation facilities, keeping only those elements of the business which remain regulated. NSTAR sold its interest in the Seabrook Station nuclear power plant
Seabrook Station Nuclear Power Plant
The Seabrook Nuclear Power Plant, more commonly known as Seabrook Station, is a nuclear power plant located in Seabrook, New Hampshire, approximately north of Boston and south of Portsmouth. Two units were planned, but the second unit was never completed due to construction delays, cost overruns...
to FPL Group
Florida Power & Light
Florida Power & Light Company, the principal subsidiary of NextEra Energy Inc. , commonly referred to by its initials, FPL, is a Juno Beach, Florida-based power utility which serves roughly 4.4 million customers in Florida. FPL Group holds power generation assets in more than 20 U.S...
in 2002.
NSTAR has ownership of unregulated district energy and telecommunications businesses, including Medical Area Total Energy Plant, Inc. which produces electricity, steam and chilled water for sale to customers in the Longwood Medical Area of Boston.
Electric power distribution in the New England area is coordinated by ISO New England
ISO New England
ISO New England Inc. is an independent, non-profit Regional Transmission Organization , serving Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island and Vermont....
, a Regional Transmission Organization
Regional Transmission Organization
A regional transmission organization in the United States is an organization that is responsible for moving electricity over large interstate areas. Like a transmission system operator , an RTO coordinates, controls and monitors an electricity transmission grid that is larger with much higher...
.
Environmental record
In 2002, NSTAR Electric and Gas Corporation was cited by the Environmental Protection AgencyUnited States Environmental Protection Agency
The U.S. Environmental Protection Agency is an agency of the federal government of the United States charged with protecting human health and the environment, by writing and enforcing regulations based on laws passed by Congress...
(EPA) for discharging oil into the Charles River
Charles River
The Charles River is an long river that flows in an overall northeasterly direction in eastern Massachusetts, USA. From its source in Hopkinton, the river travels through 22 cities and towns until reaching the Atlantic Ocean at Boston...
. The EPA also stated that NSTAR had failed to prepare spill plans at four of its facilities, in Brighton, Cambridge, Needham, and West Roxbury, where oil is pumped through their pipe lines. In July 2007, NSTAR Electric introduced a new program called NSTAR Green. In May 2008, NSTAR Green signed ten-year contracts for sixty megawatts of wind power
Wind power
Wind power is the conversion of wind energy into a useful form of energy, such as using wind turbines to make electricity, windmills for mechanical power, windpumps for water pumping or drainage, or sails to propel ships....
from two wind farm
Wind farm
A wind farm is a group of wind turbines in the same location used to produce electric power. A large wind farm may consist of several hundred individual wind turbines, and cover an extended area of hundreds of square miles, but the land between the turbines may be used for agricultural or other...
s in New York and Maine. They offered their customers a chance to buy 50-100 percent of their power from these wind farms. Power purchased through NSTAR Green would reduce reliance on fossil fuels that are traditionally used to meet the region’s electricity demand.
PCB spill controversy
NSTAR has had its share of environmental mishaps, including nearly a dozen spills at its former Watertown, Massachusetts facility. The spills, most of which occurred during the 1980s, consisted of transformer oil, which contained PCBs in high concentrations (6,200 Parts Per million). These spills have contaminated the Charles river and nearby Sawins and Williams PondSawins pond
Sawins Pond is a man-made pond created in the 19th century in Watertown, Massachusetts, USA. Its banks were the site of an upscale hotel, and it was a popular fishing and swimming spot. It was then used by Hood Rubber company, and then BF Goodrich...
, both of which are downgradient of the NSTAR facility. Many local activists are lobbying for NSTAR to abide by state regulations and spend the $20-40 million required to perform a PCB remediation of the affected lands.
HVDC transmission
NSTAR has signed on a joint venture with Hydro-QuébecHydro-Québec
Hydro-Québec is a government-owned public utility established in 1944 by the Government of Quebec. Based in Montreal, the company is in charge of the generation, transmission and distribution of electricity across Quebec....
and Northeast Utilities
Northeast Utilities
Northeast Utilities is a publicly-traded, Fortune 500 energy company headquartered in Berlin, Connecticut, with several regulated subsidiaries offering retail electricity and natural gas service to more than 2.1 million customers in New England....
to build a new High-voltage direct current
High-voltage direct current
A high-voltage, direct current electric power transmission system uses direct current for the bulk transmission of electrical power, in contrast with the more common alternating current systems. For long-distance transmission, HVDC systems may be less expensive and suffer lower electrical losses...
(HVDC) line from Windsor, Quebec
Windsor, Quebec
Windsor is a town of 5,300 people, part of the Le Val-Saint-François Regional County Municipality in the Estrie region of Quebec, Canada, for which it is the seat....
(connecting with the Quebec - New England Transmission
Quebec - New England Transmission
The Quebec – New England Transmission is a long-distance high-voltage direct current line between Radisson, Quebec and Sandy Pond in Ayer, Massachusetts...
line) to a location in central New Hampshire. It is projected that the line will either run in existing right-of-way adjacent to the HVDC line that runs through New Hampshire, or it will connect to a right-of-way in northern New Hampshire that will run through the White Mountains. This 180- to 190-mile line, projected to carry 1,200 megawatts, will carry electricity to approximately one million homes.
Pending merger with Northeast Utilities
In October 2010, Northeast UtilitiesNortheast Utilities
Northeast Utilities is a publicly-traded, Fortune 500 energy company headquartered in Berlin, Connecticut, with several regulated subsidiaries offering retail electricity and natural gas service to more than 2.1 million customers in New England....
and NSTAR announced they would merge, with the resulting company retaining the Northeast Utilities name. Under the terms of the transaction, NSTAR shareholders will receive 1.312 Northeast Utilities common shares for each NSTAR share that they own. The deal is subject to regulatory approval.
External links
- NSTAR website.
- FPL Press Release on purchase of Seabrook Station nuclear power plant.
- Proceedings from the Boston Edison restructuring from the Massachusetts Department of Telecommunications and Energy.
- ISO New England Inc.
- ISO-NE Morning Report Daily Capacity Analysis predictions