GMP to cut electric rates 2.46 percent

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GMP to cut electric rates 2.46 percent

Sun, 06/01/2014 - 9:58pm -- tim

Vermont Business Magazine Green Mountain Power announced Friday that it has reached an agreement with the Vermont Department of Public Service and other stakeholders to decrease electric rates by 2.46 percent. The rate decrease will take effect on October 1, 2014, and is the result of the work between several key stakeholders, including the Vermont Department of Public Service, IBM and Associated Industries of Vermont, in an effort to provide lower electric rates for the families and businesses of Vermont. The rate filing is subject to Public Service Board approval. 

“This is great news for families and businesses in Vermont,” said Mary Powell, president and CEO of Green Mountain Power.  “At a time when the cost of living continues to rise, whether it’s food, fuel or education, this agreement offers savings that Vermonters deserve. I am particularly pleased that this decrease comes at a time when GMP is investing in renewable energy sources that are already delivering value to customers.” 

GMP and key stakeholders agreed to a 1.46% rate decrease, with an additional 1% decrease that resulted from a revenue sharing agreement stemming from the sale of Vermont Yankee in 2002. The remaining revenue sharing agreement funds will be delivered to customers through a credit on their bills over the next two years, to ensure rates can stay low.  The decrease stands in contrast to other northeastern states, which are currently facing significant rate increases.

“This rate decrease is welcomed news for all customers, and especially for Vermont's manufacturers and other energy-intensive businesses,” said William Driscoll, vice president of Associated Industries of Vermont. “Cost and competitiveness are key to businesses being able to grow and thrive in terms of jobs, wages, and investment that affect the welfare of all Vermonters.  AIV looks forward to continuing to work with GMP and other stakeholders to find ways to address electricity costs in Vermont.”

A key component of the agreement also freezes IBM’s rates at this level for the next three years.

“At a time when other states in our region are seeing double digit increases in power costs, Vermonters are going to see rates go down this year,” Governor Peter Shumlin said. “This rate decrease is great news for Vermont. The agreement provides stability and predictability for one of our most valued employers, and helps ensure that Vermont maintains a thriving center of innovation and technology well into the future. This is further evidence that the merger of Green Mountain Power and Central Vermont Public Service is already delivering cost savings and putting money in Vermonter’s pockets."

Public Service Commissioner Christopher Recchia said, “This is very significant, not only because we are reducing rates to consumers, but because we are doing so in an environment in which most other northeastern states are raising electric rates. This agreement represents real value to Vermont customers. We are pleased to present this Memorandum of Understanding to the Public Service Board. ”

The agreement requires approval of the Public Service Board, which is expected to consider the proposed resolution over the next few months. Any rate changes approved will take effect October 1, 2014.

This is the second rate decrease that GMP has proposed for its customers since its merger with Central Vermont Public Service in June of 2012. The company has delivered on its commitment to streamline services for customers, improve storm response and increase its work to deliver clean, cost effective and highly reliable energy for Vermonters.

“GMP believes that innovation and value to consumers go hand-in-hand,” Powell said. “As we continue our work to create a cleaner and more reliable energy future for Vermonters, we will maintain our focus on keeping costs affordable for Vermont businesses and families. I appreciate the hard work of the Department of Public Service, other stakeholders, and our GMP team to deliver these cost savings to Vermonters. This rate decrease is a great example of what we can accomplish when we work together for the good of Vermont.”

Source: GMP 5.30.2014.