Vermont Business Magazine The Vermont Public Service Department has recommended that the Vermont Public Utilities Commission limit GMP’s proposed rate increase to just 1.68%. Earlier this year in April, Green Mountain Power filed for a rate increase of 5.33%. The Department’s recommendations include removing power purchase costs of approximately $6.5 million, lowering taxes, depreciation and return on capital investment by roughly $13.9 million and making other miscellaneous adjustments totaling $1.3 million. The DPS acts on behalf of the public in rates cases. The PUC is the regulator and reviews the filing and input from stakeholders and the public before it makes a final determination on rates.
According to Jim Porter, the Department’s Director for Public Advocacy, “The Department’s recommendations add up to $21.7 million reduction in potential savings for all ratepayers relative to the company’s request. We applaud GMP’s continued advances to move the energy sector forward, and the Department’s recommendations would still allow GMP to continue to deliver safe and reliable services to its’ customers, maintain affordability and advance State energy goals.”
The requested rate increase would affect GMP customers’ rates per kilowatt hour, demand charges and the customer charge on their utility bills.
“The Department examined GMP’s power supply strategy to ensure that rates stay stable and this helps residential consumers and small business better plan for their energy spending,” Porter said.
The Department’s review included analysis conducted by three outside expert firms well-versed in regulatory accounting, cost of capital and capital spending to assist with developing its recommendations.
Brian Winn, the Department’s Director for Finance and Economics, emphasized that “we respect GMP’s strong leadership team and look forward to working with them to address recommendations made by the Department.” Winn says these recommendations include limiting GMP’s recovery of capital expenditures in rates and affording enough discretion for “the company’s management to determine which capital projects are necessary within its overall capital spending limit.”
GMP Vice President Kristin Carlson said in response: "Our customers know and expect us to always work hard to deliver the most cost effective, reliable power possible, while still making critical investments in clean energy and innovation to help them use less energy and reduce costs further. This work is essential to meet our shared energy goals.This filing is the next step in the regulatory process and we look forward to working with regulators and stakeholders as the process moves forward. We have the second lowest rates in New England today and are committed to efforts to reduce costs further."
A decision from the Public Utility Commission is expected by the end of the calendar year and any rate adjustment will be effective in January 2018.
Source: Vermont Department of Public Service 8.14.2017