Published 11.12.2010
Johnson, VT – Vermont Electric Cooperative, Inc. (VEC) today asked the Vermont Public Service Board (VPSB) for a 2.71 percent rate increase to go into effect January 1, 2011. The increase is primarily attributed to rising costs for transmission services which have impacted electric utilities throughout the region.

The majority of the requested increase (71%) is due to rising regional transmission costs needed to support upgrades and maintenanc of the aging New England electric grid, and to meet stricter federal reliability requirements. Like other New England electric utilities, Vermont Electric Cooperative is required to share in the costs associated with regional transmission reliability projects. Another factor contributing to the request for a rate increase includes upgrades to VEC’s distribution system. 

The proposed rate increase will be subject to review by the VPSB. If approved, the monthly bill for an average residential member using 500 kilowatt hours would increase by $2.49, from $91.72 to $94.21. “While we acknowledge that any increase may be difficult for our members, the proposed rate increase is necessary for Vermont Electric Cooperative to continue to operate in an efficient, reliable and safe manner,” said David Hallquist, CEO. 

“Recognizing the impact that the recession has had on our economy and our members, Vermont Electric Cooperative has taken strong actions to contain this rate increase,” continued Hallquist. “VEC continues to implement cost control measures first identified in 2009 when we developed a financial contingency plan to address the impact of the recession.”

Vermont Electric Cooperative currently rates highly for operating efficiently, ranking within the top four of Vermont’s twenty utilities for the number of consumers served per employee, despite having one of the most rural electrical systems in the state.  System reliability measures have improved dramatically over the past three years with significant reductions in the frequency and duration of outages.  Additionally, Vermont Electric Cooperative has met or exceeded customer service standards set by the VPSB such as how quickly member calls are answered, billing accuracy and system reliability.

Rate Increase Talking Points (.PDF)