Business notebook

By Kathy McCabe, Globe Staff, 12/2/2001

Electric bills may be going ... down

Major debt restructuring completed recently by the Massachusetts Municipal Wholesale Electric Co. should gradually bring relief to ratepayers in seven local communities over the next 15 years.

Based in Ludlow, the nonprofit power company represents 28 municipal electric departments across the state, including Danvers, Georgetown, Ipswich, Marblehead, Middleton, Peabody, and Wakefield.

In November, the company completed a $1 billion bond refunding deal that should save the 28 communities affected $134 million by 2016, by refinancing existing debt related to its ownership stake in five New England power plants, including the Seabrook nuclear plant.

The deal included $863.9 million in fixed-rate bonds, and $170.8 million in tax-exempt, variable-rate bonds. The refinancing will enable the nonprofit to be more financially flexible and competitive with large, investor-owned power companies, an official said.

''It's really a big step for public power in Massachusetts,'' said David Tuohey, the company's corporate communications manager. ''It will make us more competitive in the changing electric industry.''

Over the next 10 years, the state's electric industry is poised for rapid change mostly because of deregulation, a landmark law in effect since 1998. Price competition, in particular, is expected to intensify, Tuohey said.

''We're better positioned now to react to changes in the electric industry. It's a sure bet that changes will keep coming in the next decade,'' he said.

Local municipal power plant managers agreed the bond refunding should reduce future power costs. Wakefield, for example, expects to save $4.7 million beginning in 2010, an official said.

''That's when the region's power markets are expected to become more competitive,'' said William Wallace, manager of the Wakefield Municipal Gas & Light Department. ''This will help us maintain stable and competitive rates as power market competition intensifies.''

In Marblehead, municipal light director Bob Jolly estimated that town could save $1.4 million. ''We're not a huge system, and we've structured this refinancing so that the savings doesn't kick in until 2010,'' said Jolly, a member of Massachusetts Municipal's board of directors. ''I do believe it will bring long-term cost-effectiveness under deregulation.''

Nova Scotia leader to address chamber

Nova Scotia Premier John F. Hamm will be the keynote speaker at the North Shore Chamber of Commerce December breakfast meeting scheduled for Wednesday, 7:30 a.m., at the Peabody Marriott.

Hamm is expected to discuss trade opportunities for local businesses, as well as a proposed natural gas pipeline that would run from Nova Scotia to the North Shore.

''We're hoping he discusses how we can build more ties to Nova Scotia,'' said Bob Bradford, chamber president. ''We've long been trading partners, and now with NAFTA [the North American Free Trade Agreement], there are even more opportunities for our businesses.''

The North Shore and Nova Scotia also share a long cultural history, dating back at least to the heyday of maritime trade in the 18th century. Cargo schooners and fishing fleets regularly plied the waters between the two regions. As a result, large enclaves of Nova Scotian immigrants sprang up on the North Shore, particularly on Cape Ann.

In recent years, a plan for a high-speed ferry connecting Gloucester to Shelbourne, Nova Scotia, has been floated by local business and political leaders.

More pressing, however, is a proposed 24-mile gas pipeline connection that would increase the supply of natural gas from Canada to New England. The project, proposed by Maritimes & Northeast Pipeline L.L.C., would be an extension of a 600-mile pipeline built two years ago.

The 24-mile pipeline would bring natural gas from ocean wells around Sable Island, about 100 miles off the coast of Nova Scotia, through several local communities, including Haverhill, Middleton, Danvers, Peabody, Beverly, and Salem, before going underwater.

''The pipeline is something that we believe is very important to the region. We're in favor of having a diverse supply of fuel to the North Shore,'' Bradford said.

Bradford said the chamber invited Hamm to speak after confirming that he would be in Boston for the annual lighting of the Christmas tree at the Prudential Center, a traditional gift from Nova Scotia to the City of Boston.

Hamm is the first Canadian premier, or head of a province, to address the chamber. A few years ago, the Canadian consul general for Boston spoke to the group. For information, call the chamber at 978-774-8565.

Rotary donates flags in Melrose

Downtown Melrose is looking pretty patriotic these days. That's because 110 new American flags fly prominently from light poles, a gift from the Melrose Rotary Club.

The business organization donated $3,000 to purchase the flags, which measure about 5 feet 3 inches. The Rotary Club made the donation after being approached by the local VFW chapter, an official said.

''Melrose hadn't had flags flying on the poles for a couple of years. The VFW thought it would be nice if they flew again, but they did not have the ability to raise the money,'' said Robert LeSaffre, secretary of the Melrose Rotary Club.

LeSaffre said Melrose Police Lieutenant Steve Buker, who is a member of both the VFW and is a vice president of Rotary, coordinated the project with past VFW commander Bill Moore.

The flags were put up on Veterans Day and will be taken down for the winter on Saturday, the 60th anniversary of Pearl Harbor. The plan is for the flags to be flown annually, from Patriots Day in April until Pearl Harbor Day. ''The winter storms really wear them out. We'll be able to make sure that they're cared for, too, by taking them down every year,'' LeSaffre said.

Rotary is now seeking donations from local businesses to establish a perpetual flag fund. So far, $520 has been raised, LeSaffre said.

Business Calendar

The Lynn Area Chamber of Commerce will present its 2001 Annual Awards Luncheon on Friday, 11:45 a.m., at Spinelli's on Route 1 in Lynnfield. John W. Bitner, chief investment officer at Eastern Bank, will speak on ''Economic Forecast for 2002.'' The cost is $25 for members, $35 nonmembers. For information, call the chamber at 781-592-2900.

The Greater Haverhill Chamber of Commerce & Industry will hold a workshop for entrepreneurs on Saturday, 8 a.m. to 1 p.m., at Northern Essex Community College, Conference Center A and B. The cost is $25. Call 978-373-5663.

This story ran on page 8 of the Boston Globe's North Weekly section on 12/2/2001.
© Copyright 2001 Globe Newspaper Company.