Green Mountain Power files for first rate decrease in 24 years

August 1, 2012 | By Barbara Vergetis Lundin

The benefits of the recently approved merger between Green Mountain Power (GMP) and Central Vermont Public Service (CVPS) are already apparent. As a result of the merger, Green Mountain Power has filed for its first rate decrease in decades.

The request to lower customer rates by 0.4 percent was filed with the Vermont Public Service Board on August 1, 2012. GMP's last rate decrease was filed in 1988. If approved, the current filing will apply to residential, commercial and industrial customers.

GMP's guaranteed merger savings of $2.5 million in the first year of the newly merged company makes the rate decrease possible. In addition to the guaranteed merger savings, lower power supply costs and expected smart grid savings helped reduce rates, as well as offset other cost increases, including property taxes and the company's share of transmission costs necessary to ensure reliability in New England. GMP's long-term green contracts help keep rates stable and less exposed to volatile fuel prices.

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.

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