GMP needs 3.1 percent rate increase to cover reliability upgrades
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Published: July 31, 2010
Green Mountain Power Corp. on Friday asked the Public Service Board for a 3.1 percent rate increase to take effect Oct. 1, as part of its alternative regulation plan. GMP said the increase is primarily due to factors that affect all utilities in the region, including costs associated with reliability upgrades to the New England transmission grid.
If the rate request is approved, the monthly bill for an average residential customer using 600 kilowatt-hours would increase by $2.91, from $93.62 to $96.53.
“Our goal is to provide premier service to our customers while operating effectively to keep rates as low as possible,” said Mary Powell, Green Mountain Power president and CEO. “We have successfully controlled operating expenses under our direct control while significantly investing in projects to benefit customers in terms of reliability and generation without compromising our ability to provide services that our customers have come to expect.”
She said GMP's operations and maintenance costs have remained flat for two years while “greatly expanding our system capabilities.”
GMP said more than half of the 3 percent increase is due to reliability investments in the New England and Vermont transmission systems. The rest is due to increases in taxes, depreciation and infrastructure investments.
GMP said its overall average rates are the lowest of large utilities in New England and Vermont's five largest utilities.
The utility operates under an alternative regulation plan, which streamlines regulation while retaining regulatory review.
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