Cost Pressures Require 5.45% Base Rate Increase Offset by 6% Credit to Customers as a Result of Accelerated Tax Credit Return
13 April 2018
Colchester, Vt – Green Mountain Power today filed a traditional rate case with the Public Utility Commission for rates set to take effect January 2019. The filing calls for a base rate increase of 5.45% and a bill credit that equals about 6%, more than offsetting the increase. The result for customers is a net decrease of 0.5% through September 2019, due to returning benefits from the federal tax change.
The base rate pressure the company is experiencing is due largely to costs outside the company’s control. This traditional cost of service filing kicks off an intensive rate review process that is expected to take more than seven months and will include public hearings, public comment, written testimony, and formal hearings.
“We refuse to accept that higher energy costs are inevitable but understand the trends we are seeing regionally and nationally are significant,” said Mary Powell, president and CEO of Green Mountain Power. “Innovation and forward thinking allow us to make investments in creative solutions for our customers to drive down costs. This work is paying off and we are very optimistic about the future.”
While customers will see a net 0.5% decrease through September 2019, the base rate request is necessary to manage increased costs almost entirely outside of the company’s control like net metering, retail sales declines, and transmission requirements.
Powell added, “Our team worked tirelessly to find efficiencies and return money to customers as quickly as possible to minimize the impacts of upward cost pressures, so I’m very pleased that our customers will see a 0.5% decrease under our filing.”
GMP continues to work to offset cost pressures with other savings, including exceeding its commitment to deliver savings through the merger and through ongoing operational efficiencies. GMP is also leveraging innovations like battery storage to cut the high cost of peak energy demand charges when customers are using the grid the most, and those projects are helping to drive down costs in this filing as well.
“We continue to be very appreciative of the work GMP is doing to keep costs low, and as an employer working hard to provide good jobs, that’s very important to us,” said Matt Lillard, general manager of Mad River Glen Cooperative. “We’re America’s only skier-owned mountain and knowing our GMP bill is as low as it can be helps us continue to remain independent and preserve Mad River Glen’s authentic skiing experience.”
Today’s filing is subject to PUC approval. A decision will come after lengthy and thorough review later this year.
About Green Mountain Power: Green Mountain Power (GMP) serves approximately 265,000 residential and business customers in Vermont and is partnering with Vermonters 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.gmpsnapshot.greenmountainpower.com. Connect with GMP on Facebook and follow us on Twitter @GreenMtnPower.
Kristin Kelly, Green Mountain Power