PUC and utilities tell Vermont House committee H.716 would shift costs, complicate implementation

Representative Kathleen James opened the House Energy and Digital Infrastructure Committee hearing on Feb. 25 to seek testimony on H.716, a revised bill that would change how Vermont sets net metering compensation and would create a new compensation/incentive category for batteries paired with net-metered solar.

The most immediate takeaway from the hearing was broad opposition from the Public Utility Commission and utility witnesses. "It would be hard for us to imagine, a bill that would more effectively transfer money from low and moderate income ratepayers to for profit companies and wealthier ratepayers," said Greg Favor, speaking for the PUC, who urged the committee to let the PUC’s biennial review process address the issues the bill raises.

Why it matters: H.716 would adjust how the state treats electricity generated and consumed behind the meter, add specific language about battery incentives and virtual power plants, and direct the PUC to consider new factors when setting compensation. Witnesses warned that statutory rate-setting or piecemeal changes to one part of the compensation formula could produce unintended rate impacts for customers who do not net meter.

Key testimon…