Vermont Business Magazine The Vermont Public Service Department (PSD) announced today it has reached agreements with Green Mountain Power (GMP) which will result in a net bill decrease for GMP customers of .76% for the year beginning October 1, 2015. This is on top of the 2.46 percent decrease for GMP customers over the past year. In a separate agreement with GMP and AARP, the Department is advocating for a return of Electric Assistance Program (EAP) fund balances to ratepayers and a lowering of the EAP customer charge going forward.
“I am extremely pleased that we are continuing to significantly benefit ratepayers through the good work of department staff and the cooperation of Vermont’s largest utility to keep rates effectively flat for the upcoming year,” said Christopher Recchia, Commissioner of the Department of Public Service. “This is very significant, not only because we are reducing consumer bills overall for yet another year, but because we are doing so when other states in our region are seeing, again, significant increases in power costs” he added. “The decisions of Vermont and Green Mountain Power to invest in distributed renewable generation, look at the long view, and plan ahead are serving us well - not only in advancing Vermont’s energy policy, but by keeping rates stable and competitive within the region. This helps our residents and businesses, and helps create clean energy jobs as well.” Recchia added.
“At a time when the cost of living and doing business continues to rise, even for companies like GMP, it’s heartening to offer families and businesses some needed relief,” said Mary Powell, president and CEO of Green Mountain Power. “In addition, as Vermont’s Energy Company of the Future, we are committed to going even further by providing customers new products and services to help them save money, be more comfortable and reduce use of foreign oil.”
Governor Peter Shumlin said, “This is good news for Vermont families and businesses who will see their electric bills continue to decrease for the second year in a row. Combined with news last week that hospital budgets are continuing their historically low growth rate, we are making progress on our goal of making life more affordable for middle class Vermonters and making our economy work for everyone, not just those at the top. I want to thank the Public Service Department and Green Mountain Power for working together to ensure Vermonters will see their electric bills continue to decline for another year.
“This news also shows that Vermont’s efforts to aggressively build out renewables is not just the right thing to do for our planet; it’s the right thing to do for affordability and Vermonters’ wallets. It’s also a testament to the leadership role being played by Green Mountain Power in changing the way we do energy in Vermont and America. Green Mountain Power is revolutionizing the energy business, changing the model from one where the goal is to generate and sell as much energy as possible to one where the goal is to use less energy more smartly and ensure the energy that is used is green, clean, and renewable.”
The agreement includes a 0.73% increase, offset entirely by a 1.49% decrease resulting from a one-time return of surplus funds from the low-income charge to customers last year, and a reduction of the low income charge going forward.
The stable rate proposal stands in contrast to other northeastern states, which are currently facing significant rate increases.
“This is tremendous news for all customers, and especially for Vermont businesses,” said CEO Clay Adams at Simon Pearce. “GMP is a great partner in helping us lower our energy costs, and this is another example of their commitment to helping businesses thrive in a competitive market.”
“We appreciate the good work of GMP and others to keep our electric rates low and stable for several years now, this is really welcomed news for us,” said Peter Longchamp of Vermont Hard Cider. “We are very dependent on affordable and reliable power and having a 0.76% bill decrease following a 2.46% rate decrease last year is really going to help us keep our company strong.”
On the Electric Assistance Program (EAP) agreement,Recchia said, “We will continue to have a robust EAP program, but this one-time credit and the lower rate charge will better match the demand for assistance, and enables customers to see an overall bill decrease this year.”
In July, GMP proposed a base rate increase on 1.67% due to various upward pressures. Through negotiation with the Department, Public Advocate staff were able to reach these agreements which result in the .76% net bill decrease for the year.
“This shows how we can keep rates low and stable for Vermont businesses and families and lead the nation with investments in new innovations and a clean energy future,” Powell said. “This is a great example of what we can accomplish when we work together for the good of Vermont.”
Green Mountain Power serves approximately 265,000 residential and business customers in Vermont.
Source: PSD, GMP. 7.31.2015