Proctor
posted
Sep 19, 2012
Green Mountain Power has received approval from the Vermont
Public Service Board for its rate phase-in plan for all former
Vermont Marble Power Division (VMPD) of Omya, Inc. commercial
customers. The plan is designed to help gradually transition
commercial customers in Proctor to GMP's full rate plan, educate
customers on electricity demand control and efficiency
opportunities and lessen the impact of future rate changes.
"We are extremely happy with the Board's approval of GMP's
commercial rate phase-in plan," said June Tess Wilson, co-owner of
the Proctor Marble Company, a local business formerly served by
VMPD. "As with many businesses in Proctor, our ability to
remain a viable operation depends on keeping major costs, such as
electricity, to a minimum, and also ensuring that expenses will
remain fairly stable over time. We feel this plan will help us
do just that, and we appreciate GMP and its employees working with
us and the other commercial customers in Proctor to find a
practical solution. It is a great example of various parties
coming together to find a common result that works for
everyone."
Vermont Marble Power's assets and customer accounts, including
875 residential and 62 commercial accounts, were acquired by
Central Vermont Public Service in September 2011 and were later
added to GMP's service territory following the merger between CVPS
and GMP.
Prior to becoming GMP customers, Proctor residents for many
years had experienced unusually low rates as Omya regularly
subsidized a large percentage of the electrical service in the
town. In addition, a number of needed infrastructure upgrades
to the VMPD system were put on hold, also contributing to the
extremely low rates.
In a proactive effort to reduce the impact of rate changes on
commercial customers in Proctor, GMP designed the commercial rate
phase-in plan around a schedule of rate credits that will decrease
every twelve months until they expire at the end of a three year
period.
The rate credits, for both demand and non-demand commercial
customers, will result in average bill reductions of 27.2 percent
in year one, 18.2 percent in year two and 9 percent in year
three.
The schedule will allow customers more time to amend usage,
control demand or make any investments necessary in new systems or
operations to efficiently utilize their electric service.
Under the plan, GMP, in partnership with Efficiency Vermont,
will work with commercial customers in Proctor to identify ways to
manage their demand along with other opportunities to help lower
their electric bills. In addition, both working one-on-one with
commercial customers, and at a public education forum, information
will be provided on how general service rate determinants operate
and what rate options are available.
The rate credits will be funded through the $1.125 million Omya
Repayment Obligation Account that was established during CVPS's
purchase of VMPD. The account, which was initially designed to
support rate credits for residential customers alone, will now
sustain rate credits for both residential and commercial customers
formerly served by VMPD.
Previously, CVPS, with approval from the PSB, implemented a
similar five-year, six-step rate phase-in plan for VMPD residential
customers that also includes providing gradually decreasing rate
credits.
"Our goal in working with the commercial customers in Proctor
was to develop a plan that eased the shift for them into our
current rate structure," said Dostis. "We understood very well the
kind of effects an immediate rate increase could have on businesses
in Proctor and we wanted to design a plan that not only limited the
up-front impacts for them but also delivered long-term guidance
around rate options and usage to help them lower costs.
"We were confident that we'd met those objectives, but receiving
swift Board approval provides ultimate confirmation of the plan,"
Dostis said.
