Published 11/14/2008 
Johnson, VT - Vermont Electric Cooperative asks Vermont Public Service Board for rate increase Johnson, VT – Vermont Electric Cooperative, Inc. (VEC) asked the Vermont Public Service Board (VPSB) for a 9.24 percent rate increase on Friday, November 14. At the same time the company proposed an alternative regulation plan to minimize the impact of large swings in future transmission costs.

The rate increase which will go into effect on January 1, 2009 will be subject to review by the VPSB.

“While we recognize that these are challenging economic times for our members, we would not ask for a rate change unless necessary to maintain and improve safe and reliable service while ensuring the continued financial stability of the Cooperative,” said Dave Hallquist, CEO. “As a cooperative our commitment is to VEC members, who are both consumers and owners of this organization.”

Two major components contributing to the current request are increased regional transmission costs and capital improvement expenditures. Other factors include higher payroll and related costs, property taxes and vegetation management costs.

VEC’s last request for a revenue increase was two years ago. The proposed alternative regulation plan will provide a mechanism that allows VEC to adjust rates up or down on a quarterly basis to reflect changes in transmission costs. Due to extensive efforts to secure stable long term power contracts, the rate change is not prompted by increasing power costs.

If approved, the monthly bill for an average residential member using 600 kWh would increase by $9.01, from $97.48 to $106.49. Hallquist added that energy conservation remains one of the best ways for members to reduce their electric bills. “Even with the higher costs, there are steps members can take to conserve energy and reduce their bills,” he said. “We encourage members to contact Efficiency Vermont at 888-921-5990 or efficiency information.” 

http://www.efficiencyvermont.com/pages/for more energy efficiency information