New Regulatory Framework Q&A
The Vermont Public Service Board in 2006 approved a new regulatory framework, often called alternative regulation or “alt reg,” to streamline the process by which Green Mountain Power electric rates are established, while simultaneously creating new incentives for us to improve customer service and become even more effective.
Here are some answers to questions you may have. And, of course, you can speak with our customer service representatives at 1-888-835-4672, 7 a.m. to 7 p.m., Monday through Friday. Following the Q&A are links to sample bills, the alt reg plan, and an address to email us your questions and comments.
Q. Will the new regulatory plan save me money?
A. Yes. We will have lower costs under the new streamlined system, such as lower costs of capital and lower rate case expenses that are included in rates. Also, there are incentives built into our plan that will encourage us to become more efficient and share related savings with you. Our rates won’t necessarily go down because of cost increases in other areas, but we believe this will reduce pressure on rate increases.
Q. Will regulators still review rate increases and company costs?
A. Absolutely. Regulators will continue to have the authority to investigate our rates and any decisions we have made in order to serve our customers.
Q. What is different about the new system?
A. There are three major areas of change:
Q. What will be different on my bills?
A. Every three months, the power supply portion of your current bills might be adjusted up or down, but only if power supply costs are higher or lower than expected. We do NOT anticipate that you will see significant changes in your power supply charge -- it will be within a one penny per kilowatthour limit. We will notify you a month in advance of any changes. There may be an earnings sharing adjustment once a year. Again, we do not expect any significant adjustments, and you would be notified in advance.
Q. How are low-income customers helped by this plan?
A. Green Mountain Power will match customer donations to the WARMTH program, which helps Vermonters in a heating crisis. In addition, Green Mountain Power will contribute a portion of earnings over a certain limit to its Power Partners program, which also helps low-income customers.
We believe that this new way of regulating makes a lot of sense because it lowers costs for you and gives us better incentives to perform well for you. The Board approved the plan for three years, during which time we will evaluate how well it works and whether it will need any adjustments. We look at this as one more innovative way that can help us provide you with premier service.
For more information, click here:
The Vermont Public Service Board in 2006 approved a new regulatory framework, often called alternative regulation or “alt reg,” to streamline the process by which Green Mountain Power electric rates are established, while simultaneously creating new incentives for us to improve customer service and become even more effective.
Here are some answers to questions you may have. And, of course, you can speak with our customer service representatives at 1-888-835-4672, 7 a.m. to 7 p.m., Monday through Friday. Following the Q&A are links to sample bills, the alt reg plan, and an address to email us your questions and comments.
Q. Will the new regulatory plan save me money?
A. Yes. We will have lower costs under the new streamlined system, such as lower costs of capital and lower rate case expenses that are included in rates. Also, there are incentives built into our plan that will encourage us to become more efficient and share related savings with you. Our rates won’t necessarily go down because of cost increases in other areas, but we believe this will reduce pressure on rate increases.
Q. Will regulators still review rate increases and company costs?
A. Absolutely. Regulators will continue to have the authority to investigate our rates and any decisions we have made in order to serve our customers.
Q. What is different about the new system?
A. There are three major areas of change:
- Power supply costs. Power supply costs will be filed with regulators and adjusted every three months to reflect the actual power supply costs that we incur to serve our customers. This means significant changes in energy costs – up or down – will be reflected in your rates in a more timely way. This lowers our risk, which allows us to have lower borrowing costs. Your rates will reflect these cost savings.
- Non-power supply costs. Our non-power supply costs (wages, taxes, health care, materials, etc.) may be adjusted for limited small increases through 2009.
- Earnings sharing. Customers will be entitled to our earnings (profit) above a specified level set by the state and help make up for an earnings shortfall below a specified level.
Q. What will be different on my bills?
A. Every three months, the power supply portion of your current bills might be adjusted up or down, but only if power supply costs are higher or lower than expected. We do NOT anticipate that you will see significant changes in your power supply charge -- it will be within a one penny per kilowatthour limit. We will notify you a month in advance of any changes. There may be an earnings sharing adjustment once a year. Again, we do not expect any significant adjustments, and you would be notified in advance.
Q. How are low-income customers helped by this plan?
A. Green Mountain Power will match customer donations to the WARMTH program, which helps Vermonters in a heating crisis. In addition, Green Mountain Power will contribute a portion of earnings over a certain limit to its Power Partners program, which also helps low-income customers.
We believe that this new way of regulating makes a lot of sense because it lowers costs for you and gives us better incentives to perform well for you. The Board approved the plan for three years, during which time we will evaluate how well it works and whether it will need any adjustments. We look at this as one more innovative way that can help us provide you with premier service.
For more information, click here:
