Green Mountain Power customers will face an electricity rate increase, but not as large as the utility originally sought, after Vermont officials reduced the request amid objections from residents already dealing with higher living costs.
Vermont's Public Utility Commission set the increase at 5.5% for the company's more than 275,000 customers, down from the requested 7.5%. The new rates begin Oct. 1, according to VTDigger.
Here's what to know
Before issuing the decision, regulators spent months reviewing Green Mountain Power's spending plans and considering whether Vermont households should bear those costs.
More than 50 public comments were largely critical of the original proposal.
In its Aug. 28 order, the three-member commission said most of the requested hike stemmed from factors "largely outside GMP's control," VTDigger reported.
The order cited regional increases in electricity supply and transmission expenses, along with inflation, as pressures affecting utilities across Vermont.
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Still, the commission did not approve everything the company sought.
A major flashpoint was "resilience spending," the utility's proposal to dedicate roughly $341 million over four years to projects aimed at reducing long-term weather damage to the grid.
They authorized about $113 million instead, saying a need to harden the system had to be weighed against what customers can afford.
The panel wrote that there was "no dispute that Vermont's climate is changing," but said affordability was "central to our analysis."
More background
Kristin Carlson, a spokesperson for Green Mountain Power, claimed the utility considers those resilience projects necessary, per VTDigger.
"Storms are increasing in frequency and severity — Vermonters are feeling it," Carlson asserted. "The goal is to deliver projects that keep customers with their lights on, keep them safer and then over time lower storm restoration costs."
In 2024, the company was approved for roughly $150 million over the following two years for projects including burying power lines and strengthening electric networks. Carlson said those improvements have already reduced outages and delivered savings over time.
But customers facing unavoidable utility bills pushed back. In a written statement to regulators, Janice McCann described an unmanageable cost of living.
"I cannot afford taxes, utilities, insurance and food anymore," she said, per VTDigger. "Something has to give. Please consider the less fortunate people in Vermont."
Another resident, John Tatro, pointed to a lack of consumer options.
"We do not have a choice in power companies to our location so there is no competition," he observed, per VTDigger.
What's being done?
The commission approved part of the spending for grid reliability improvements while limiting how much of the cost customers must absorb immediately.
VTDigger reported that the approved funding is expected to pay for work on Green Mountain Power's 10 worst-performing circuits over four years.
Electric departments in Swanton, Hyde Park, and Jacksonville have asked for increases of about 30%, 15%, and 18%, respectively.
Vermont residents are also facing pressure from high, volatile heating oil prices and concerns about gasoline costs.
Where can I learn more?
Similar debates are unfolding across the country as customers push back on rising bills and regulators try to balance reliability with affordability.
• Across the U.S., utilities are seeking record-breaking rate hike requests as household energy costs climb.
• In West Virginia, Appalachian Power customers challenged an experimental rate hike as affordability concerns deepen.
• In Virginia, Dominion Energy faces a controversial rate hike request linked to data center growth.
• In the West, PacifiCorp sought approval to bill customers for wildfire damages totaling $1.7 billion.
Disputes in those states echo the tense questions playing out in Vermont: how much customers should pay for grid upgrades and other mounting utility costs. That scrutiny is growing as electric bills rise.
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