BURLINGTON, Vt. -
Green Mountain Power returns from the drawing board with a new proposal, and hopes this one will get the green light from regulators.
The merger of Central Vermont Public Service and Green Mountain Power would join the state's two biggest electric utilities. State regulators said "no" to a previous proposal.
Ten years ago, customers bailed out CVPS. Regulators said the company must pay back $21 million before a sale or merger of the company. In a previous filing, the utilities instead offered $144 million in "guaranteed savings" over a 10-year period.
Wednesday, the power companies filed a new proposal with an additional investment. "We are proposing to invest $21 million in efficiency programs," said GMP Spokesperson Dorothy Schnure, "it will bring about $40 million benefit to CVPS customers."
Company spokespeople said they still believe their previous proposal exceeded requirements, but added the new investment strategy after hearing concerns from senior groups and state officials. The additional money would be put towards weatherization, solar, and low income programs designed to increase efficiency and administered by the Vermont Energy Investment Corporation.
Schnure said the proposal is similar to one that was accepted before Green Mountain Power's sale to Gaz Metro in 2007.
However, AARP Vermont spokespeople said the proposal misses the mark. The group launched an ad campaign in an effort to get CVPS to repay the $21 million prior to the filing.
"Ratepayers bailed them out and they deserve to get paid back in dollars, in checks, directly to ratepayers," said AARP Vermont Director Greg Marchildon. He said the efficiency investments are a good idea, but not as a repayment solution. "This is (customer) money, this isn't tax revenue, this isn't stimulus dollars," he said.
Marchildon said the bailout cost ratepayers $98 million, but public service board rulings limit repayment to $21 million. He said each current customer should receive about $70 apiece before the deal is allowed to move forward.
Ultimately, state regulators will have the final say.
The Department of Public Service, also argued against the utilities' previous proposal. They said it did not go far enough to repay consumers. In an email, Commissioner Liz Miller said they're currently reviewing the new offer.
