Statewide
posted
Aug 9, 2012
First filed rate decrease in
decades
On August 1, Green Mountain Power asked the Vermont Public
Service Board to lower customer rates (by 0.4 percent) beginning
October 1, the first such reduction in decades. Green Mountain
Power last filed for a rate decrease in 1988.
The new rate plan filed reflects GMP's commitment to save
customers money as a result of the recent utility merger. GMP's
guaranteed merger savings of $2.5 million in the first year of the
newly merged company made the rate decrease possible. In addition,
the company worked hard to find other efficiencies and savings to
help keep rates lower.
"Green Mountain Power is fully committed to a cost-effective
future for the Vermonters we serve while also working to
significantly improve services and reduce the frequency and
duration of outages," said Mary Powell, president and chief
executive officer of Green Mountain Power. "Our 250,000 customers
are already beginning to experience benefits of the recent merger
through our ability to keep customer costs lower and through our
improved response time to the weather events that hit hard many
Vermont homes and businesses in July."
Customers and organizations across the state expressed their
appreciation of the decrease. Win Smith, president of Sugarbush
Resort, said, "After payroll, our second-largest expense is
electricity, and a rate decrease is very welcome news for us,
especially after the impact of Irene and the challenging winter.
Having competitive electric rates is a key to our and the state's
economic sustainability and prosperity."
John Castaldo, president of the Central Vermont Council on
Aging, said, "A decrease in electric rates benefits all consumers,
especially senior citizens living on fixed incomes."
GE Aviation in Rutland HR Leader Justin Warsinskey said, "As one
of the area's largest plants and top electricity consumers, a rate
reduction will help us reduce the overall cost of operating our
facility."
In addition to the guaranteed merger benefits, lower power
supply costs and expected smart grid savings helped to reduce
customer rates. These reductions helped to offset other cost
increases, including increasing property taxes and the company's
share of transmission costs necessary to ensure reliability in New
England.
Green Mountain Power's energy strategy is focused on a clean,
green, cost effective future for Vermonters, with long-term
contracts that help keep rates stable and are not as exposed to
volatile fuel prices like many other utilities in New
England.
"Green Mountain Power is driven to operate efficiently to reduce
costs for our customers," Powell said. "We have been successful in
keeping our operations and maintenance costs flat for several
years, and we expect the newly merged Green Mountain Power will
find many more ways to keep costs low to reduce pressure on future
rates."
The requested decrease, if approved by the Public Service Board,
will apply to residential, commercial and industrial
customers.
Future rate changes will benefit from the guaranteed $144 million
in savings Green Mountain Power promised in the merger. Merger
negotiations with the Vermont Department of Public Service and
approved by the Vermont Public Service Board on June 15 ensured
upfront savings of at least $15.5 million in the first three years
following the merger.
Tagged:
Green Mountain Power, rate decrease
