NSTAR Increases Common Share Dividend 6.7%

NSTAR (NYSE:NST) announced today that its Board of Trustees voted to increase the dividend on its common shares to an annualized rate of $1.60 per share, a 6.7% increase over the previous rate of $1.50. This is the company’s 483^rd consecutive dividend and the twelfth consecutive year that NSTAR has increased the dividend. The company has one of the longest consecutive payment records on the New York Stock Exchange.

The Board declared a quarterly dividend of $0.40 per share, payable February 1, 2010 to shareholders of record as of January 8, 2010.

Chairman, President and Chief Executive Officer Thomas J. May said, "The dividend action taken by our Board reflects the solid financial condition of the company and the confidence we have in our business outlook. This increase is in line with our goal of maintaining a healthy balance between dividends paid to our shareholders and earnings reinvested into the business to maintain our high level of reliability and service quality results.”

Also, the Board of Directors of NSTAR Electric Company, a wholly owned subsidiary of NSTAR, declared the following preferred stock dividends payable February 1, 2010 to holders of record January 8, 2010:

• A quarterly dividend of $1.0625 per share on NSTAR Electric’s cumulative preferred stock, 4.25% series; and
• A quarterly dividend of $1.195 per share on NSTAR Electric’s cumulative preferred stock, 4.78% series.

Profile

NSTAR, headquartered in Boston, is an energy delivery company with revenues of approximately $3.2 billion and assets of $8 billion that serves 1.4 million customers in Massachusetts, including approximately 1.1 million electric distribution customers in 81 communities and 300,000 natural gas distribution customers in 51 communities. NSTAR is also engaged in unregulated business operations. For more information, go to www.nstar.com.

Forward-Looking Statements

This earnings release may contain forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934. These statements are based on the current expectations, estimates or projections of management, and are not guarantees of future performance. Actual results could differ materially from these statements.

Examples of some important factors that could cause our actual results or outcomes to differ materially from those discussed in the forward-looking statements include, but are not limited to, the following: adverse financial market conditions including changes in interest rates and the availability and cost of capital; adverse economic conditions; changes to prevailing local, state and federal governmental policies and regulatory actions (including those of the Massachusetts Department of Public Utilities and the Federal Energy Regulatory Commission) with respect to allowed rates of return, rate structure, continued recovery of regulatory assets and energy costs, financings, municipalization, acquisition and disposition of assets, operation and construction of facilities, changes in tax laws and policies, and changes in and compliance with environmental and safety laws and policies; new governmental regulations or changes to existing regulations that impose additional operating requirements or liabilities; changes in available information and circumstances regarding legal issues and the resulting impact on our estimated litigation costs; weather conditions that directly influence the demand for electricity and natural gas; impact of continued cost control processes on operating results; ability to maintain current credit ratings; impact of uninsured losses; impact of adverse union contract negotiations; damage from major storms; impact of conservation measures and self-generation by our customers; changes in financial accounting and reporting standards; changes in hazardous waste site conditions and the cleanup technology; prices and availability of operating supplies; impact of terrorist acts and cyber-attacks; and impact of service quality performance measures.

Any forward-looking statement speaks only as of the date of this earnings release and NSTAR undertakes no obligation to publicly update forward-looking statements, whether as a result of new information, future events, or otherwise. You are advised, however, to consult any further disclosures we make in our filings to the Securities and Exchange Commission. Other factors in addition to those listed here could also adversely affect NSTAR.