Vermont Public Utility Commission issues guiding principles for future alternative regulation plans

The Vermont Public Utility Commission (PUC) issued an order providing guiding principles for future electric or natural gas utility regulation plans, which may include alternative regulation plans in combination with more traditional, cost-based rate requests.

“The commission is committed to enabling Vermont’s electric and natural gas utilities to achieve their public service obligations and State energy goals,” PUC Commissioner Margaret Cheney said. “Just as we encourage utilities to propose innovative solutions to achieve those goals, it is imperative that we, as regulators, consider these solutions with open minds.”

The PUC did not take a position on the merits of alternative regulation as compared to traditional regulation in the order but did note that it could be a useful tool for promoting innovation and flexibility in achieving state policy goals. The commission also noted that alternative regulation should be prescriptive due to the differences in size and ownership structure between utilities.

Under 30 V.S.A. Section 218d, the PUC can approve an alternative regulation plan if it finds that it will “offer incentives for innovations and improved performance that advance State energy policy.”