8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  December 12, 2008

Commission File Number	Registrants, State of Incorporation, Address and Telephone Number	I.R.S. Employer Identification No.
001-14768	NSTAR	04-3466300
	-------------------------------------------------------------
	(a Massachusetts voluntary association)
	800 Boylston Street
	Boston, Massachusetts 02199
	Telephone (617) 424-2000
001-02301	NSTAR ELECTRIC COMPANY	04-1278810
	-------------------------------------------------------------
	(a Massachusetts corporation)
	800 Boylston Street
	Boston, Massachusetts 02199
	Telephone (617) 424-2000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[     ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[     ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[     ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[     ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01.  Other Events

On December 15, 2008, NSTAR and Northeast Utilities (“NU”) together issued a News Release announcing that they would jointly pursue Quebec solutions to New England’s energy needs.  

On December 12, 2008, NSTAR Electric, a wholly-owned subsidiary of NSTAR, together with NU (the “Petitioners”), filed a joint petition with the Federal Energy Regulatory Commission (“FERC”) for a declaratory judgment that would allow the Petitioners to enter into a bilateral transmission services agreement with Hydro Quebec (“HQ”) subsidiaries.  Under this agreement, the Petitioners will sell 1,200 megawatts (“MW”) of firm transmission service over a new, participant-funded transmission tie line connecting New England with the HQ system in order for HQ to sell and deliver this same amount of firm power from the HQ system to interested parties in New England for a term of no less than twenty years.

The Petitioners and HQ are negotiating:

·

A joint development agreement for the design and construction of a 1,200 MW high-voltage direct current (“HVDC”) line over existing rights-of-way in Northern New England to a point to be determined in Southern New Hampshire and are performing joint planning studies for this line.

·

A long-term bilateral transmission service agreement.

·

A Purchase Power Agreement for HQ to sell 1,200 MW of firm power to NSTAR Electric, NU and other interested New England entities for a period of no less than twenty years at negotiated, market-based rates under HQ’s market-based rate tariff on file at the FERC.

This project would provide a competitive source of clean power that is favorable in comparison to current alternatives. It also would provide for an expansion of New England’s transmission system without raising regional transmission rates.

NSTAR Electric anticipates that, if approved by the FERC, construction will commence in the 2011 to 2014 timeframe and forecasts that its portion of the construction funding to be approximately $200 million.  NSTAR Electric and NU will finance and own this transmission line, while HQ will reimburse NSTAR Electric and NU for the total costs of this project, including an investment return to NSTAR Electric and NU, over 20 years.   This arrangement must be approved by the FERC.

The News Release is filed herewith as Exhibit 99.1.

Item 9.01.  Financial Statements and Exhibits

(d)  Exhibits

Number	Description of Exhibit
99.1	News Release dated December 15, 2008 and jointly issued by the Registrants and Northeast Utilities entitled “Northeast Utilities and NSTAR Jointly Pursue Quebec Solutions to New England’s Energy Needs.”

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.

		NSTAR
		NSTAR ELECTRIC COMPANY
		(Registrants)
Date: December 15, 2008	By:	/s/ R. J. WEAFER, JR.
		Robert J. Weafer, Jr.
		Vice President, Controller
		and Chief Accounting Officer

EX-99

Exhibit 99.1

News Release

NU CONTACT:               OFFICE: Sandra Ahearn 860-665-5472 NSTAR CONTACT:       OFFICE: Caroline Allen 617-424-2460

Northeast Utilities and NSTAR Jointly Pursue

Quebec Solutions to New England’s Energy Needs

Proposed Innovative Project Structure Warrants Advance Ruling by Federal Energy Regulatory Commission; Significant Energy and Environmental Benefits for New England Consumers

BERLIN, Conn. and BOSTON, Mass., December 15, 2008 – Northeast Utilities (NYSE: NU) and NSTAR (NYSE: NST) submitted to the Federal Energy Regulatory Commission (FERC) a request for a declaratory order on a proposed transmission interconnection with the Canadian province of Quebec.  The filing, submitted December 12, requests that the Commission approve the assignment of firm transmission rights on a new participant-funded transmission line to Hydro-Quebec (HQ) to enable the development of a purchase power agreement.  The proposal calls for Hydro-Québec to deliver low-carbon hydroelectric power to New England over a new high voltage direct current (HVDC) tie line between northern New England and Quebec.  

NU, NSTAR and H.Q. Energy Services (U.S.) Inc. (HQUS), a wholly owned subsidiary of Hydro-Québec, have signed memoranda of understanding to develop this transmission project on an exclusive basis.  Planning is under way with HQ subsidiary TransÉnergie to develop the specifics of the new tie line.  The proposed transmission line would connect the Des Cantons substation in Québec with a point to be determined in southern New Hampshire, where NU’s Public Service of New Hampshire operates.  The proposed line will be designed to transmit at least 1,200 megawatts of power.  

“New England has some of the most ambitious environmental goals in the nation.  With this project, we can help the region meet its energy, environmental and economic needs.  In addition, we will materially diversify New England’s generation mix,” said Charles W. Shivery, NU’s chairman, president and CEO.  “We have had many discussions with policymakers and other interested stakeholders over the past year and believe there’s an opportunity to create a mutually beneficial agreement with Hydro-Québec.  The project, as conceived, could meet nearly one-third of New England’s greenhouse gas reduction goals,” he added.  

NU, NSTAR and HQUS have also begun discussions on the specifics of the longer-term power purchase agreement that would ensure the line is utilized to bring low-carbon energy to benefit New England customers.  The intent of the parties is to create a structure that allows additional New England customers to participate, not just those of NU and NSTAR.

2

“This project would play a key role in meeting New England’s future energy needs in a cost-effective and environmentally friendly manner," said Tom May, NSTAR's chairman, president and CEO.  "Our goal is to build a line that would carry enough electricity to supply approximately one million homes with clean, low-carbon power.”  

“Hydro-Québec is uniquely positioned to work with NU and NSTAR in developing this project.  Our natural resource base and New England’s power markets combine to make a win-win transaction possible,” said Thierry Vandal, president and CEO of Hydro-Québec.  

Assuming a favorable ruling from FERC, the companies will negotiate terms of the power purchase agreement as well as a joint development agreement to build the transmission line.  The U.S. portion of the line would be owned by NU and NSTAR.  As the line will be participant-funded, NU and NSTAR will not seek regional cost recovery for the line.  The proposed project would be submitted to the Independent System Operator of New England (ISO-NE) for approval as appropriate in light of the unique nature of this transaction. Hydro-Québec will also obtain all required authorizations and permits for its project.

Northeast Utilities, a Fortune 500 energy company with headquarters in Connecticut, operates New England’s largest energy delivery system.  NU is committed to safety, reliability, environmental leadership and stewardship, and expanding energy options for its more than 2 million electricity and natural gas customers.  For more information on Northeast Utilities and its subsidiaries, visit www.nu.com.

NSTAR is the largest Massachusetts-based, investor-owned electric and gas utility.  The company transmits and delivers electricity and natural gas to 1.4 million customers in Eastern and Central Massachusetts, including more than one million electric customers in 81 communities and 300,000 gas customers in 51 communities.  For more information, visit www.nstar.com.

Hydro-Québec generates, transmits and distributes electricity.  The company has an installed capacity of over 40,000 megawatts, operates a 20,500-mile transmission system and provides its 3.8 million Québec customers with a reliable supply of electricity. Its sole shareholder is the Québec government.  Hydro-Québec’s production is 97% non-carbon emitting hydroelectric power.  The company also conducts research in energy-related fields such as energy efficiency.  For more information, visit www.hydro-quebec.com.

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