NSTAR (company)
| Company type | Subsidiary (after 2012) |
|---|---|
| Industry | Electric power and natural gas |
| Predecessor | BEC Energy, Commonwealth Energy System |
| Founded | 1999 |
| Headquarters | Boston , United States |
Area served | Eastern and central Massachusetts, including Boston metropolitan area |
| Products | Retail electricity and natural gas services |
| Parent | Northeast Utilities (2012–2015), then Eversource Energy (from 2015) |
NSTAR operated as a utility provider delivering retail electricity and natural gas services to approximately 1.4 million customers throughout eastern and central Massachusetts, including the Boston metropolitan area. In April 2012, it became a subsidiary under Northeast Utilities. Subsequently, in February 2015, Northeast Utilities along with its operating divisions such as NSTAR Gas and Electric consolidated into a single organization named Eversource Energy.
History
NSTAR was established in 1999 through the consolidation of BEC Energy and Commonwealth Energy System. It conducted business via subsidiaries including the Boston Edison Company, Cambridge Electric Light Company, Commonwealth Electric Company, and NSTAR Gas Company (previously known as Commonwealth Gas and Cambridge Gas Company).
After deregulation impacted the local electricity sector, NSTAR divested its electric generation assets, maintaining only regulated utility operations. In 2002, it sold its ownership interest in the Seabrook Station nuclear power plant to FPL Group.
On November 16, 2006, NSTAR declared an increase in its dividend by 7.4%, raising the annual payout to USD1.30 per share.
The company also held unregulated ventures in district energy and telecommunications, including ownership of the Medical Area Total Energy Plant, LLC, which provides electricity, steam, and chilled water services to Boston’s Longwood Medical Area.
Coordination of electric power distribution across New England is managed by ISO New England, a regional transmission organization.
Environmental record
In 2002, the EPA cited NSTAR for oil discharges into the Charles River and for inadequate spill contingency plans at four of its facilities.
In July 2007, NSTAR introduced NSTAR Green, a program designed to offer customers renewable energy alternatives. By May 2008, it secured decade-long contracts for 60 megawatts of wind energy sourced from wind farms located in New York and Maine. This initiative enabled customers to opt for between 50% and 100% of their electricity from these renewable resources, thereby decreasing dependence on fossil fuels.
PCB spill controversy
During the 1980s, NSTAR encountered environmental challenges involving nearly twelve transformer oil spills containing elevated PCB levels (6,200 ppm) at its former facility in Watertown, Massachusetts. These incidents led to contamination of Sawins and Williams Ponds and potentially affected the downstream waters of the Charles River. Community groups pressured NSTAR to adhere to state environmental regulations and allocate $20–40 million toward PCB cleanup efforts. By 1997, NSTAR was accountable for close to fifty hazardous waste sites; by 2006, remediation had been completed at all but five locations.
HVDC transmission
NSTAR partnered with Hydro-Québec and Northeast Utilities in a joint venture to construct a High-voltage direct current (HVDC) transmission line spanning approximately 180 to 190 miles from Windsor, Quebec, to central New Hampshire. Designed to carry up to 1,200 megawatts of electricity—enough to power about one million residences—this project utilizes existing or newly established right-of-way corridors through New Hampshire’s White Mountains region.
Merger with Northeast Utilities
In October 2010, Northeast Utilities and NSTAR announced plans to merge under the Northeast Utilities name. Shareholders of NSTAR received 1.312 shares of Northeast Utilities stock for each NSTAR share held. The merger was completed in 2012. On February 2, 2015, Northeast Utilities along with its subsidiaries including NSTAR adopted the new corporate identity of Eversource Energy.
External links
- Official NSTAR website
- Boston Edison Company archival materials held at Baker Library Special Collections, Harvard Business School
- FPL announcement regarding acquisition of Seabrook Station nuclear facility
- Documentation on Boston Edison’s restructuring provided by the Massachusetts Department of Telecommunications and Energy
- ISO New England Inc. official site
- ISO-NE Morning Report Daily Capacity Forecasts
- Articles with short description
- Electric power companies of the United States
- Natural gas companies of the United States
- Nuclear power companies of the United States
- Energy in New England
- Technology companies based in the Boston area
- 1999 establishments in Massachusetts
- Non-renewable resource companies established in 1999
- Companies listed on the New York Stock Exchange