State regulators have approved a three year incentive regulation plan for Green Mountain Power that caps the company鈥檚 spending and gives it more flexibility to invest in new products and services.
The plan should stabilize rates, but the actual increases won鈥檛 be known until next month.
Under the plan, GMP is allowed to quickly roll out programs 鈥� such as home battery storage systems 鈥� that it says will help bring more renewable energy onto the grid while holding down costs at times of peak demand. GMP spokeswoman Kristin Kelly said the goal is to allow the company and its customers to quickly adapt to climate change and a changing energy market.
"It's allowing us to be more innovative and flexible for customers to help lower costs." - Kristin Kelly, GMP spokeswoman
鈥淕MP is taking on more risk,鈥� she said. 鈥淎nd what that does is鈥� it鈥檚 allowing us to be more innovative and flexible for customers to help lower costs.鈥�
The case took about a year to litigate before the Public Utility Commission. James Porter, the department鈥檚 public advocate, said the PUC sided with the state on how GMP will adjust rates to reflect changes in power costs and earnings.
The department argued that GMP should bear more of the risk if power costs suddenly spike.
"We do think it's... a fair balance between the ratepayers and Green Mountain Power insofar as the risk goes." - James Porter, public advocate
鈥淎nd the commission, we were pleased, agreed with our position,鈥� he said. 鈥淎nd so we do think it鈥檚 ... a fair balance between the ratepayers and Green Mountain Power insofar as the risk goes.鈥�
GMP also agreed to cap spending on new projects at $85 million a year over the next three years. In two weeks, GMP will file the actual rate increases allowed under the plan.
