Belmont Light Reduces 2013 Rate Hike to 6 Percent

The town's electrical utility is keeping its promise to customers to cut an anticipated double-digit rate increase after signing a partnership agreement with regional giant NSTAR. 

Belmont Light announced today, June 13, that electric ratepayers in Belmont will see a six percent rate hike starting Saturday, June 15.

“While no one wants to see an increase in electric rates, without a timely solution Belmont would soon be in the position of being unable to provide affordable and efficient electricity to our citizens, businesses and municipal users," said Ashley Brown, chairman of the Municipal Light Advisory Board.

"This is a tremendous solution for our future energy needs and our ability to significantly reduce the cost of the project and future service means the anticipated rate hike is less than half of the original estimates," he added.

The bulk of the increased cost is necessary to cover debt service on the critical new substation and transmission line project approved at a Special Town Meeting in February, 2012. 

But the anticipated 14 percent increase – approved by last year's Town Meeting when it approved borrowing up to $53.7 million to build a new substation and transmission line through town – has been reduced after Belmont Light signed a Joint Development Agreement with NSTAR that drastically reducing the previously estimated cost of the project by $30 million.

“We brought a strong solution to Town Meeting in 2012, and over the past year we have continued to refine the project responsibilities and ownership agreements under the strong guidance of the Light Board, (the advisory board) and other town leaders," said Belmont Light General Manager Jim Palmer. 

Under the agreement, for the first time in its history, Belmont ratepayers will be fully integrated onto the regional New England electrical grid without having to pay an intermediary for connections.

Belmont Light will continue to be responsible for distribution with a state-of-the-art substation to serve the town, and will retire the present substations.

“While we all realized that we had no choice but to immediately address the limits of our electric infrastructure here in Belmont,” said Selectman and Belmont Light Board Chairman Mark Paolillo, “we will now be able to do so at a much more affordable cost.”

For questions about the rate increase or details of the new substation and the transmission line project, please call Belmont Light at 617-993-2800.