On September 21, 2006, the Board approved an Alternative Regulation Plan for Vermont Gas Systems, Inc. (Vermont Gas), the only natural gas company in the state. This Plan includes two different rate-setting mechanisms that are not available under traditional regulation.
The first mechanism provides for quarterly rate adjustments, which means that increases or decreases in Vermont Gas’ actual gas costs (which make up the majority of Vermont Gas’ total costs) flow through to ratepayers on a quarterly basis.
The second mechanism provides for annual adjustments to rates based on whether Vermont Gas earned more or less than its allowed rate of return on equity in the prior year.
The Initial Plan was in use from 2006-2012:
On August 21, 2012, the Board approved a Successor Alternative Regulation Plan for Vermont Gas. The successor plan incorporates some changes to the initial plan.
The Successor Alternative Regulation Plan has been in use from October 1, 2012, to the present.
On August 4, 2016, the Board further extended the term of the Successor Alternative Regulation Plan for Vermont Gas through February 2, 2017.