GMP seeks rate decrease as result of merger

Green Mountain Power today asked the Vermont Public Service Board to lower customer rates (by 0.4 percent) beginning October 1, the first such reduction in decades. Green Mountain Power last filed for a rate decrease in 1988.
The new rate plan filed today reflects GMP's commitment to save customers money as a result of the recent utility merger.GMP's guaranteed merger savings of $2.5 million in the first year of the newly merged company made the rate decrease possible. In addition, the company worked hard to find other efficiencies and savings to help keep rates lower.
"Green Mountain Power is fully committed to a cost-effective future for the Vermonters we serve while also working to significantly improve services and reduce the frequency and duration of outages," said Mary Powell, president and chief executive officer of Green Mountain Power."Our 250,000 customers are already beginning to experience benefits of the recent merger through our ability to keep customer costs lower and through our improved response time to the weather events that hit hard many Vermont homes and businesses in July."
Customers and organizations across the state expressed their appreciation of the decrease. Win Smith, president of Sugarbush Resort, said, "After payroll, our second-largest expense is electricity, and a rate decrease is very welcome news for us, especially after the impact of Irene and the challenging winter. Having competitive electric rates is a key to our and the state's economic sustainability and prosperity."
Governor Peter Shumlin, who had been an open advocated of the merger between the state's two largest utilities, said in a statement: "Today's announcement that Green Mountain Power is seeking to decrease electric rates for its customers is great news for Vermont families and businesses. This rate decrease is a good example of why I supported the GMP/CVPS merger, as Vermonters are already seeing the benefits of the merger through these real cost savings.
It has been decades since Green Mountain Power has been in a position to request a rate decrease. This is a promising start for the new company, as it works over the coming years to deliver on its merger promises. I have said for months that this merger will save money for Vermont families and help our businesses create jobs, and this great news is further evidence of that fact."
Elizabeth Miller,Commissioner of the Department of Public Service, said in a statement: "This first rate filing for the new, larger Green Mountain Power is very important because it reflects the first year of guaranteed savings to customers required by the merger order. It also sets a base from which future merger savings will be measured over the next decade, and shows us that the company is willing to work hard to hold the line on costs in order to deliver the benefits promised to customers in the merger. A rate decrease - the first in many, many years - is good news. For Vermont businesses and families served by the new GMP, it is very helpful to keep these costs down.
"The Department will now review the details of the filing to ensure that our expectations on costs and documentation have been met. We will file our outside expert's report along with the Department recommendation on this rate decrease request by mid-August."
John Castaldo, president of the Central Vermont Council on Aging, said, "A decrease in electric rates benefits all consumers, especially senior citizens living on fixed incomes."
GE Aviation in Rutland HR Leader Justin Warsinskey said, "As one of the area's largest plants and top electricity consumers, a rate reduction will help us reduce the overall cost of operating our facility."
In addition to the guaranteed merger benefits, lower power supply costs and expected smart grid savings helped to reduce customer rates.These reductions helped to offset other cost increases, including increasing property taxes and the company's share of transmission costs necessary to ensure reliability in New England.
Green Mountain Power's energy strategy is focused on a clean, green, cost effective future for Vermonters, with long-term contracts that help keep rates stable and are not as exposed to volatile fuel prices like many other utilities in New England.
"Green Mountain Power is driven to operate efficiently to reduce costs for our customers," Powell said."We have been successful in keeping our operations and maintenance costs flat for several years, and we expect the newly merged Green Mountain Power will find many more ways to keep costs low to reduce pressure on future rates."
The requested decrease, if approved by the Public Service Board, will apply to residential, commercial and industrial customers.
Future rate changes will benefit from the guaranteed $144 million in savings Green Mountain Power promised in the merger.Merger negotiations with the Vermont Department of Public Service and approved by the Vermont Public Service Board on June 15 ensured upfront savings of at least $15.5 million in the first three years following the merger.
Source: Green Mountain PowerCOLCHESTER, VT--(Marketwire - Aug 1, 2012)
Green Mountain Power generates, transmits, distributes and sells electricity in Vermont and is a leader in wind and solar generation.The Company, which serves more than 250,000 customers, has set its vision to be the best small utility in America.For further information, visitwww.greenmountainpower.com.