IMPORTANT NOTICE REGARDING UPCOMING RATE REDUCTION
NEW RATES EFFECTIVE BILLS RENDERED NOVEMBER 1, 2013
Vermont Gas’ rates are based on our cost to provide natural gas service to customers. Our rates are reviewed and approved by the Vermont Public Service Board and Vermont Public Service Department (together, “Vermont regulators”) through a robust regulatory process, which this year resulted in two levels of review.
First, under our Alternative Regulation Plan, we filed our proposed “Annual Adjustment” on August 28, 2013 to go into effect November 1, 2013.
· The Annual Adjustment changes consist of an annual change to Daily Access and Distribution Charges, as well as a quarterly adjustment to the Natural Gas Charge.
· The purpose of the Annual Adjustment is to ensure that our rates reflect as accurately as possible our actual cost to provide natural gas service. This can sometimes cause rates to increase, and sometimes to decrease. In this case, overall rates will be decreasing by 5.86%.
Second, Vermont regulators required us to file a so-called “Rate Design,” to ensure that our costs to provide natural gas service are fairly split among and within customer rate classes.
· The Rate Design does not change the total amount we collect from customers in rates. Instead, it rebalances how the total amount Vermont Gas collects in rates is allocated among customers.
· The aim of Rate Design is to ensure that each class of customers pays their fair share and no more. Accordingly, the Rate Design causes some customers to see an increase in their rates and other customers to see a decrease, on a stand-alone basis.
The combined effect of these two adjustments means the Natural Gas Charge component of your bill is decreasing while the Daily Access and Distribution Charges are increasing. The net effect of this change is an average overall decrease of 5.86%. The actual impact will vary from customer to customer depending on the amount of natural gas you use, but all commercial rate classes will see an overall reduction.
Following a regulatory review, the rate components will be adjusted as follows:
General Service Low Usage, Low Load Factor - Rate G1
General Service Low Usage, High Load Factor - Rate G2
General Service High Usage, Low Load Factor - Rate G3
General Service High Usage, High Load Factor - Rate G4
Vermont Gas recognizes that the cost of energy is a concern for customers and is committeed to providing you with the resources to help manage your bill.
Other resources to help manage your energy costs include:
Online Account Access & Bill Payment: check your payments or pay your bill 24/7.
Please call us at (802) 863-4511 if you have any questions or would like to learn more about these options.