State energy report: Vermont faces sharp rate increases, slow weatherization and uncertainty in federal funding
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Summary
The Department of Public Service told the House Energy committee that Vermont electric rates have risen rapidly, weatherization retrofits lag the 2030 goal, federal funding disruptions have hampered program delivery, and flexible load and storage could reduce transmission-driven costs.
The Vermont House Committee on Energy and Digital Infrastructure heard the Department of Public Service’s annual energy report on Jan. 27, 2025. TJ Forum, director of regulated utility planning at the Public Service Department, said "electric rates are increasing really quickly," showing multiple utilities with single-year increases and several utilities raising rates year after year.
Forum told members the state has seen dozens of rate cases in recent years and that drivers include regional transmission charges, volatile power-supply costs and storm-related collections. He said Green Mountain Power (GMP) serves about 70% of Vermont ratepayers and that GMP’s multiyear regulation smooths some volatility but leaves customers exposed to pass-through costs such as large storm expenses.
The report also flagged slow progress on weatherization: the Department estimates about 41,000 homes retrofitted since 2008 against a 120,000-by-2030 goal. Forum said average fuel-use reduction across weatherization programs is roughly 26.6%, with higher savings for comprehensive low-income retrofits. He described more than 100 programs and said the Public Utility Commission’s review found program fragmentation; the Department is preparing a scope to analyze consolidation, navigators, and better delivery.
Federal funding uncertainty was a recurring theme. Forum said recent federal disruptions affected programs that had been ready to launch and created operational strain in the department. He cautioned committee members that some high-profile programs were delayed or withdrawn, and staff previously dedicated to those programs needed reallocation.
Forum emphasized opportunities from flexible resources and storage: Vermont has about 85 megawatts of storage online and roughly 72 megawatts permitted, which together approach 150 megawatts of capability on a roughly 950-megawatt system peak. He said controlled electric vehicle charging, time-of-use pricing and targeted storage deployment could defer transmission upgrades and reduce regional transmission charge pressure.
Forum concluded with five policy suggestions the Department will pursue: consider a clean energy standard, reassess regional RES requirements in light of federal policy changes, better allocate weatherization funding for low-income households, advance flexible resources and continue regional advocacy on transmission costs. The Department offered to provide committee members additional breakdowns — including per-utility rate-driver details and absolute dollar estimates for transmission and storm costs — as follow-up.