Vermont Yankee to provide as much as $17.8 million for GMP customers

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Vermont Yankee to provide as much as $17.8 million for GMP customers

Tue, 04/29/2014 - 9:06am -- tim

Vermont Business Magazine Green Mountain Power announced Monday that under a revenue sharing agreement stemming from the sale of Vermont Yankee in 2002, GMP will receive as much as $17.8 million. That money will be directed to GMP customers in the form of lower rates. Entergy reported last week in its first quarter 2014 financial report that Vermont Yankee contributed more than $100 million to Entergy's $400 million of pre-tax profits in its wholesale business. Entergy stated that higher demand because of the cold weather and rising natural gas prices in the Northeast made its nuclear fleet more profitable, especially VY which was not burdened with utility contracts and could simply sell to the open market at market prices. Entergy will shut down VY by the end of this year.

Entergy stated: "Contribution to first quarter 2014 operational adjusted EBITDA from Vermont Yankee, scheduled to be closed later this year at the end of its current operating cycle, was approximately $110 million." SEE STORY

“This is great news for our customers as we work to keep costs down. GMP has already committed to no increase in base rates until 2016. This good news just ensures that rates can go lower and stay low for a couple of years.  This is in sharp contrast to the double digit increases we are seeing all around New England and New York“ said Mary Powell, President and CEO of Green Mountain Power. “This agreement negotiated in 2002 will provide a benefit in the form of lower rates. We are working right now with state regulators on the best way to return this money to customers to reduce rates.”

“We are pleased that these revenues will go directly to benefit GMP ratepayers, “said Chris Recchia, Commissioner, Vermont Department of Public Service.  The Department led the negotiation of this agreement in 2002.  “Entergy traditionally sells power through long-term contracts, but because it is closing this year, it sold power on the open market, which was unusually high due to the bitter cold winter. These unique circumstances triggered the revenue sharing provision.”  

This comes at a time when GMP is currently proposing a modest decrease in rates for customers. GMP plans to use the revenue sharing funds to further lower rates, and to lessen needed increases in the future as cost pressures continue to rise. GMP will work with state regulators to determine the most effective way to accomplish this.

“This is a great example of GMP and our partners working together to ensure that our customers see as much value as possible for the service we provide,” Powell continued. “Strategies like this will help us deliver on our commitment to provide cost effective, clean and highly reliable power and invest in the future with more renewable and alternative energy products and services.”    

About Green Mountain Power
Green Mountain Power (www.greenmountainpower.com) generates, transmits, distributes and sells electricity in the state of Vermont. The company, which was named 2014 Solar Champion by Vote Solar, serves more than 250,000 customers and has set its vision to be the best small company in America.  

Source: GMP. Entergy. 4.28.2014 Photo: Vermont Yankee on the Connecticut River in Vernon, Vermont. Courtesy.