Senate committee keeps one-year extension in H.319 but removes session‑law rate extension for Ryegate

The Senate Natural Resources & Energy Committee on May 13 approved draft 4.6 of H.319 but voted to remove section 34, language that would have preserved earlier Public Utility Commission (PUC) and Public Service Board orders affecting the price paid to Ryegate through Oct. 31, 2028.

The committee’s action leaves section 33 — a one‑year extension of certain statutory dates tied to Ryegate’s contract options — in place while striking the separate session‑law provision that would have carried a previously set “standard offer” rate forward. The committee discussed potential cost impacts to Vermont ratepayers and whether the PUC should be required to revisit rate calculations when an operator has received multiple extensions.

Committee members and staff described the disputed language as an amendment to prior session law that would have kept in force a 2011 PUC order setting a standard‑offer price. A committee member said a Public Service Department memo showed that past extensions of the rate “have cost ratepayers about $9,000,000,” a figure the member attributed to the department’s analysis. The same member also said the PUC “would not make themselves available to testify” to the committee on the topic.

Legislative council staff walked members through draft 4.6 and identified that section 33 would extend several statutory dates by one year; section 34 would separately preserve PUC and former Public Service Board decisions and orders in the docket that established the earlier standard‑offer price. Staff noted that if the session‑law provision were not changed, the existing rate would otherwise expire Oct. 31, 2026 and the committee might have to revisit the topic next year.

Members debated tradeoffs between ensuring continued supply of winter baseload power and limiting upward pressure on rates. One committee member summarized prior testimony as saying the Ryegate power is “helpful because it’s base‑load power at a time of the year when we don’t have solar,” but added it is “not crucial to the grid” and that continued reliance on the standard‑offer structure makes electricity more expensive.

After discussion the committee opted to remove section 34 from the draft. The committee then divided the question, voting on section 33 separately; that separate inclusion of section 33 carried with Senators Beck, Bauchner, Harvey and Williams recorded as voting yes and Senator Cardi recorded as voting no. The committee subsequently approved draft 4.6 without section 34 and designated a committee member as the bill reporter for further work.

Committee members asked staff to be prepared to revisit the issue if Ryegate returns seeking another extension, and several said they would prefer to have a fuller review earlier in the session rather than considering extensions on a miscellaneous bill late in the process. The committee also set a brief follow‑up schedule and signaled it may seek additional information from utilities or the PUC if Ryegate requests further extensions.