Eastern Edison Co. and Montaup Electric Co., both subsidiaries of Eastern Utilities Associates, have each filed an agreement with the Massachusetts Department of Public Utilities to introduce electric industry competition.
The target date for introduction of competition is Jan. 1, 1998, when Eastern Edison customers would experience a 10-percent rate cut or could choose an alternate electric supplier. Retail rates would be frozen until Dec. 31, 2000. But customers staying with the utility would be offered a price starting at 2.8 cents per kilowatt-hour. The price gradually would rise through 2004.
Eastern Utilities would be allowed full recovery of stranded costs. EUA would divest itself of Montaup's generation assets and would separate its transmission facilities from Eastern Edison's distribution system. By separating the facilities, the company would meet the objectives of the "Consumers First Plan," which sets forth the state's restructuring goals.
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