Vermont Business Magazine Green Mountain Power today is filing its intention to submit a traditional regulated rate case on or before April 15, 2017 -- and seeking to freeze base rates for customers until 2018, when the new rates would go into effect. Base rates for customers are currently lower than they were in 2013, and the company has delivered three bill decreases in that time. GMP wants to extend its current rate structure in order to file the new rate case. The net result of the base rate freeze will mean that customers will see more than four years of reduced rates.
Since 2007, GMP has operated under the current regulatory plan known as alternative regulation, or alt reg, which was supported by the Legislature and approved by the Vermont Public Service Board. The purpose of this regulatory model is to enhance oversight and require utilities to have annual rate reviews so that rates reflect real-time costs to the company. The rate model is also intended to help stabilize or smooth costs for customers. Under the plan, costs, and therefore customer rates, are reviewed and adjusted each year rather than every three to ten years, as is the case with the traditional rate model.
GMP is approaching the end of its current plan and has determined the appropriate next step is to file a traditional rate case, which would take place in 2017.
“There is no better way to express our commitment to customers and transparency than to have a traditional rate case. What’s most important to us is that our customers have confidence in the process and believe their rates are fair and represent a good value for the service we provide," said Mary Powell, President and CEO of Green Mountain Power. “For GMP, no matter the regulatory model, we are committed to keeping costs down and continuing to offer great service and the most reliable power we can. We look forward to this process and will work hard for an outcome that achieves those key goals.”
To allow enough time for a traditional regulatory rate case review, GMP will file a waiver requesting to extend the current plan with the Public Service Board until the end of 2017, when the new rates will go into effect. This will provide customers with a base rate freeze until 2018.
Communications chief Kristin Carlson said GMP needed to make a decision on whether to retain the alternative regulation plan, which they've had for 10 years, or move to a traditional plan. Along with that, the state is working on a new energy plan. But in any case, she said, GMP's goal is to keep rates as low as possible. She could not say at this point what rates would look like in 2018 relative to what they are now. GMP rates currently are second lowest in New England.
Source: GMP 12.12.2016. Green Mountain Power (GMP) serves approximately 265,000 residential and business customers in Vermont and is partnering with customers 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.