Vermont Gas

System Expansion and Reliability Fund

Natural gas is a tremendous resource for Vermont. It helps Vermont achieve important economic development goals by reducing energy costs of businesses and residents. It is a clean fuel and its increased use will reduce greenhouse gas emissions and lessen Vermont’s dependence on foreign oil.

As part of our work to expand natural gas to more Vermonters, Vermont Gas has proposed a System Expansion and Reliability Fund. The Fund has been established on an interim basis through savings from a decline in the wholesale cost of gas.


The Fund will support future pipeline projects that:

1. Reduce overall energy costs in Vermont

2. Increase capacity of the existing pipeline system

3. Allow more Vermont communities to receive the benefits of natural gas

4. Improve reliability of the existing distribution and transmission system

The first proposed project is an expansion of natural gas service to Addison County  that increases capacity and improves reliability of the existing pipeline system in Chittenden and Franklin Counties.

Vermont Gas has reduced its rates thirteen times since 2008, reflecting a steady decline in wholesale gas costs. This has made it possible to establish the System Expansion and Reliability Fund beginning April 22, 2011 rather than another rate reduction of approximately 5.4% while maintaining prices that are less than fuel oil and propane. The Fund will generate approximately $4.4 million each year – which represents about $5.40 per month for the average residential heating customer.

With this Fund in place, natural gas is still 44% less than fuel oil and 55% less than propane.

Please click on the links below for more information about the customer meetings and system expansion and reliability plans.

Related links:

Customer Letter - April 2011

Vermont Gas Informational Meetings

Expanding natural gas into more communities

Recent expansions

Fuel Costs Comparison Chart

Emissions Comparison Charts
Addison County Independent: Editorial - Natural Gas Good for Area - April 2011
Addison County Independent: Vermont Gas Eyes County for Pipeline - April 2011

Burlington Free Press: Governor Shumlin Backs Natural Gas Expansion - April 2011