In a filing last week with the Vermont Public Utility Commission, Green Mountain Power (GMP) is seeking to lower bills for customers by $6 million. The benefit comes from federal tax law changes that reduce GMP’s corporate tax rate from 35 percent to 21 percent. This change will be retroactive to Jan. 1, 2018, the start of GMP’s new rate year. The reduction will be applied starting in the February bill cycle and will be returned monthly throughout 2018 as a bill credit.
“After the federal tax plan passed, GMP pledged to return 100 percent of the tax benefit to customers, and today’s letter sets in motion our plan to reduce rates to provide those savings to our customers immediately,” said President and CEO Mary Powell. “Keeping energy costs low and stable is a key focus at GMP, and this decrease will help offset increased cost pressures in other areas outside of our control, such as regional transmission costs.”
This rate reduction will also help offset the rate increase that took effect in January. GMP customers will continue to see the benefits of the new, lower tax rate for as long as these rates are in effect because they will be reflected in future proposed energy rates. GMP is set to file its next rate case in April.