GMP to cut bills by $6 million via federal tax changes

-A A +A

GMP to cut bills by $6 million via federal tax changes

Tue, 01/23/2018 - 4:36pm -- tim

Vermont Business Magazine In a filing today with the Vermont Public Utility Commission, Green Mountain Power is seeking to lower bills for customers by $6 million. The benefit comes from federal tax law changes that reduce GMP’s corporate tax rate from 35 percent to 21 percent. This change will be retroactive and take effect January 1, 2018 at the start of GMP’s new rate year. The reduction will be applied starting in the February bill cycle and will be returned monthly throughout 2018 as a bill credit.

“After the federal tax plan passed, GMP pledged to return 100% of the tax benefit to customers, and today’s letter sets in motion our plan to reduce rates to provide those savings to our customers immediately,” said President and CEO Mary Powell. “Keeping energy costs low and stable is a key focus at GMP and this decrease will help offset increased cost pressures in other areas outside of our control such as regional transmission costs.”

This rate reduction will help offset the recent rate increase that took effect in January. GMP customers will continue to see the benefits of the new, lower tax rate for as long as these rates are in effect because they will be reflected in future proposed energy rates. GMP is set to file its next rate case in April.

GMP's sister company, Vermont Gas, based in South Burlington, is also reducing customer costs by $2.4 million because of tax changes. They are both owned by Energir (Gaz Metro) from Montreal.

“I really appreciate the proactive leadership on the part of GMP to return our hard-earned tax dollars in the form of an energy cost mitigation strategy,” said Brenan Riehl, President of GW Plastics. “GMP has done a great job over the years working with GW Plastics to try and keep the cost of power in Vermont competitive and reliable. I’m glad GMP is being transparent about their cost structure and rates while working with us to reduce the impact of higher energy costs wherever possible.”

About GREEN MOUNTAIN POWER

Green Mountain Power (GMP) serves approximately 265,000 residential and business customers in Vermont and is partnering with Vermonters to improve lives and transform communities. GMP is focused on a new way of doing business to meet the needs of customers with integrated energy services that help people use less energy and save money, while continuing to generate clean, cost-effective and reliable power in Vermont. GMP is the first utility in the world to get a B Corp certification, meeting rigorous social, environmental, accountability and transparency standards and committing to use business as a force for good. In 2014, Vote Solar named GMP a Solar Champion. More information at: www.greenmountainpower.com. Connect with GMP on Facebook and follow us on Twitter @GreenMtnPower.