Rate Plan Continues Commitment to Stability and Predictability for Customers
COLCHESTER, Vt. – Green Mountain Power (GMP) filed its base rates this afternoon, seeking a 2.34% increase starting October 1, 2022. If approved by the Vermont Public Utility Commission (PUC), the new rates would be in effect until September 30, 2023. This filing continues GMP’s long commitment to keep rates low and stable even when significant cost pressures exist. At the same time, the filing supports GMP’s nationally recognized work to innovate and eliminate carbon from its portfolio.
“We are proud to deliver a rate request that bucks the trends of higher costs and inflationary pressures in so many other areas of our lives,” said President and CEO Mari McClure. “This allows us to invest in our people and equipment to be sure we continue to deliver on our promises to our neighbors and customers. Vermonters need a resilient, renewable power grid and predictable, affordable rates and that’s what this filing continues to provide. By leveraging technologies like battery storage, we’re also helping to control costs for all customers while transforming the grid to fight climate change.”
If approved, the requested base rate would go into effect in the first year of GMP’s new Multi-Year Regulation Plan – a framework for capping spending, forecasting costs, continuing innovative programs, and setting rates. The MYRP was filed in October 2021, and is also being reviewed by the PUC.
Rob Conboy, the CEO of Glavel, says he appreciates GMP’s focus on price stability and understands increases can be challenging for everyone. Glavel converts recycled glass into highly versatile, low-embodied carbon building material at its facility in Essex, and GMP’s clean electricity is a key ingredient in Glavel’s manufacturing process.
“We’ve electrified our operation from the get-go to live up to our low-carbon commitment to our customers and the environment. GMP’s Business Innovation Team has been a great partner in helping us to reduce carbon and costs in our operations. Having this stability and predictability is so critical to the success of our business here in Vermont,” Conboy said.
Pressure from rising energy costs makes up most of the requested increase, and GMP’s mix of long-term local and regional power purchase contracts, aligned with Vermont’s longstanding policy supporting stable electric supply, are helping to keep this request low in the current market. Another cost driver is vegetation management, as keeping lines clear in the more than 11,000 miles of right-of-way has been made even more challenging in the face of climate change. Other components of the rate request are driven by increased costs for operations and outside services, including inflation seen economywide that has affected the price for the goods and equipment we rely on to serve customers coming out of the pandemic.
This filing starts a public regulatory review process that includes months of testimony, robust review by regulators, a public hearing, and other opportunities for customers to share their views with the PUC. GMP’s 2022 rate request filing will be posted in the regulatory section of GMP’s website.
About Green Mountain Power
Green Mountain Power serves approximately 270,000 residential and business customers in Vermont and is partnering with them 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. GMP earned a spot on Fast Company’s Most Innovative Companies in the World list four years in a row (2017, 2018, 2019, 2020). In 2021, the Smart Electric Power Alliance (SEPA) honored GMP as a nationwide leader in energy transformation and in 2019, GMP earned the Deane C. Davis Outstanding Vermont Business of the Year Award from the Vermont Chamber of Commerce and Vermont Business Magazine.
Kristin Kelly, Green Mountain Power
We are proud to deliver a rate request that bucks the trends of higher costs and inflationary pressures in so many other areas of our lives.Mari McClure, GMP President & CEO