Green Mountain Power could invest $21 million in efficiency and solar

Green Mountain Power could invest $21 million in efficiency and solarIf Green Mountain Power successfully merges with Central Vermont Public Service, customers of the latter could see more than a $21 million investment in energy efficiency and small-scale renewable energy installations.

The Vermont Public Utilities Commission is expected to make a ruling on the merger in late spring or early summer, said Green Mountain spokeswoman Dorothy Schnure.

CVPS was allowed to raise electricity rates in 2000 to cover the expense of a contract with Hydro-Quebec. As part of that agreement, the company was required to return the value from the increased rates to customers when the company was sold.

Gaz Metro Limited Partnership recently acquired the utility.

A similar reinvestment program started when Gaz Metro purchased Green Mountain Power in 2007, Schnure said, and the utility reinvested more than $8 million in efficiency projects for schools and other public and private buildings. Several schools got solar panels, and IBM installed a water-cooling system where the water went outside for cooling in the winter.

Schnure said most of the public utility commissioners support the merger, though there is some disagreement about how the money will be returned to customers.

The efficiency investments have a strong track record, Schnure said.

“We get twice the savings for our investment,” she said. “So, this $20 million will result in $40 million of savings. It’s really in line with Vermont values.”

Vermont has one of the best efficiency programs in the country, Schnure said. It tends to focus on areas in the state with particular transmission stresses and other power generation issues.

“These efficiency funds would go above and beyond,” she said.

It’s likely the reinvestment of the $21 million would include a significant amount of small-scale and distributed generation solar in the CVPS area, Schnure said.

There are 20 utilities in Vermont, and if this merger is approved, Green Mountain Power would serve about 70 percent of the state’s 6 million residents, Schnure said.

“By merging, we guarantee $144 million in savings in the first 10 years,” Schnure said.