Vermont Business Magazine Green Mountain Power today announced it filed a new rate plan that calls for a modest 0.93 percent increase in electric bills. The filing, which is subject to Public Service Board approval, will take effect on October 1, 2016, and follows two consecutive years where customers have seen bills decrease. The proposal is part of the company’s overall commitment to keep rates low and stable for customers and if approved, customers will be paying 1 percent less next year than they were paying in 2012.
“Our commitment is to provide the most reliable, clean and cost-effective power we can and this proposal is part of that commitment to maintaining low rates for customers, even as cost pressures continue to push rates up elsewhere,” said Mary Powell, president and CEO of Green Mountain Power.
The announcement represents a focus on protecting Vermonters from high-energy costs. This includes a 0.03% decrease in base rates driven by merger savings and finding operational efficiencies. The 0.96% increase in the Power Adjuster is the result of higher transmission costs and increased costs associated with the net-metering program. The stable rate proposal stands in contrast to other northeastern states, which are facing rate increases.
The increase is just below the current 1 percent US rate of inflation. For the previous three out of four years, GMP customers’ bills had decreased.
“I want to thank the Public Service Department for their good work in helping to ensure that our electric rates remain stable and competitive,” said Governor Peter Shumlin. “Even as we build out renewables, lead the nation in per capita clean energy jobs and promote innovation, we continue to see electric rates that either decrease or are held nearly flat. This is happening at the same time that rates around New England have been volatile, routinely increasing by double-digits in some of our neighboring states during the past several years.”
“I am enormously pleased with the work the Department did to keep this overall rate increase below the rate of inflation,” said Public Service Department Commissioner Chris Recchia. “Through the advocacy of our Department staff and the provisions in GMP’s alternative regulation plan, we were able to protect ratepayers in the coming year from the rate increases we see across the region. At a time when Vermonters are facing rising cost pressures, the Department prioritizes keeping utility rates both stable and low. With this agreement we have again worked with GMP to deliver on that priority. This announcement means that Vermont’s residential customers will continue to experience the second lowest electric rates in New England. This rate stability has been achieved while renewable electricity generation in Vermont has been growing dramatically, with over 10 times more solar generation in Vermont that when Governor Shumlin took office in 2011.”
Under Green Mountain Power’s alternative regulation plan, each summer there is a Base Rates proceeding to update the utility’s rates for the coming year. On June 1, GMP filed an initial 3.53% rate increase. The final overall 0.93% rate increase is comprised of a 0.96% increase in power supply costs along with a 0.03% decrease in base rates negotiated by the Department’s public advocacy division.
"We've been very fortunate to have affordable, consistent electric rates in Vermont to help retain and grow the businesses around the state,” said Bob Flint the executive director of the Springfield Regional Development Corporation. “GMP continues to show leadership in understanding how critical stable energy costs are for the state's economy."
Keeping rates in check is only one part of GMP’s work to transform the energy experience for its customers and our state. GMP is partnering with customers to offer new products and services that empower customers to save money, reduce energy use and be more comfortable in their homes. GMP is also streamlining services for customers, improving storm responses, and continuing to leverage battery storage and other new products to increase reliability.
“Working together, we always find a way to do the right thing and that means supporting the families and businesses we serve with rates that are reflective of the current economic environment,” Powell said. “In the year ahead, our customers can be assured that costs will stay low.”
About Green Mountain Power Green Mountain Power (GMP) serves approximately 265,000 residential and business customers in Vermont and has a vision to be the best small company in America by partnering with Vermonters to improve lives and transform communities. GMP is focused on a new way of doing business to meet the needs of customers with integrated energy services that help people use less energy and save money, while continuing to generate clean, cost-effective and reliable power in Vermont. GMP is the first utility in the world to get a B Corp certification, meeting rigorous social, environmental, accountability and transparency standards and committing to use business as a force for good. In 2014, Vote Solar named GMP a Solar Champion. More information at: www.greenmountainpower.com. Connect with GMP on Facebook and follow us on Twitter @GreenMtnPower.
Sources: GMP. Governor Shumlin 8.1.2016