In 2012, when Green Mountain Power (GMP) acquired Central Vermont Public Service (CVPS), Vermont ratepayers were promised $144 million in savings over the next decade. The $21 million bailout that CVPS had collected from ratepayers in 2001 was expected to magically transform into substantial savings through energy efficiency programs and improved utility management. Fast forward to 2024, and instead of those savings materializing, Vermonters are paying an average rate of 21.5 cents per kWh, significantly higher than the national average of 16 cents per kWh (EIA). The merger has led to rising costs for ratepayers rather than the promised savings.
A Marketing Sleight of Hand
The notion that $21 million would transform into $144 million in savings for ratepayers was a marketing sleight of hand designed to sell the merger. The public was led to believe that GMP’s consolidation would bring significant efficiencies, but the reality has been starkly different. Much of the so-called “savings” were absorbed by merger costs, infrastructure improvements, and operational expenses, leaving little benefit for Vermont households.
Instead of returning the $21 million to the customers who had bailed out CVPS, the Vermont Public Service Board (PSB) sanctioned this decision, allowing GMP to redirect the funds into energy efficiency programs. While framed as beneficial, this has proven to be a convenient excuse to maintain higher rates without delivering tangible results. Given that Vermonters have invested millions into energy efficiency programs over decades, the question remains: where is the efficiency? Why are costs still so high?
Energy Efficiency Spending: Decades of Costs with Little to Show
For years, Vermonters have poured millions into energy efficiency programs, yet the results are far from what was promised. These programs, funded through taxpayer dollars and higher rates, have not delivered the anticipated savings. As electricity rates continue to rise, it’s clear that the expected benefits of these investments have failed to materialize.
The Role of the Public Service Board: Complicit or Negligent?
The Public Service Board (PSB) played a pivotal role in allowing GMP to retain the $21 million instead of issuing refunds to ratepayers. Justifying the decision by claiming that the money would fund energy efficiency initiatives raises the troubling question: were they complicit in enabling this marketing sleight of hand, or were they simply negligent in their oversight?
A New Era of Promises: The Global Warming Solutions Act
If the CVPS-GMP merger is any indication, the Global Warming Solutions Act (GWSA) seems poised to follow a similar path. Just as the merger promised savings, the GWSA has been pitched as a means of combating climate change while reducing long-term costs. However, these projections are often based on speculative models and uncertain outcomes. The Clean Heat Standard, a key component of the GWSA, is already expected to increase energy costs for Vermonters, echoing the broken promises of the past.
What legislators appear hesitant to tell the voters is the harsh reality behind their grand promises: implementing these policies will require huge sums of money—potentially millions, if not billions—sourced from both taxpayers and ratepayers. The financial sacrifices required to meet ambitious climate goals are significant, yet many elected officials skirt around discussing these implications. Even New York State has recently acknowledged that their ambitious clean energy goals are unattainable within the original time frames set, prompting them to push deadlines further into the future. This admission underscores the challenge of enacting such sweeping changes within a short period.
An Abusive Cycle of False Promises
At this point, the relationship between Vermont policymakers and the state’s residents starts to resemble an abusive relationship. Politicians and regulators repeatedly make bold promises—assuring the public that this time it will work. But instead of delivering, they return with the same rhetoric, leaving Vermonters to bear the financial burden. The refrain is familiar: “This time it’s going to be different.” Yet, as history has shown, these promises often turn out to be empty.
In contrast, the GMP-CVPS merger was a relatively straightforward business transaction, yet it has still failed to deliver. The complexities and uncertainties associated with the GWSA and related initiatives are far greater, presenting significant risks to taxpayers and ratepayers who may ultimately bear the brunt of these ambitious policies.
The Lack of Accountability
One of the greatest challenges in this situation is the apparent lack of accountability for Vermont legislators. While voters theoretically have the power to vote officials out of office, incumbents often remain in power until they choose not to run for re-election. This historical pattern means that there is minimal incentive for legislators to be transparent about the financial realities of their policies. The truth is that these initiatives will require substantial financial investments and years of work to materialize—if they materialize at all (Vermont Legislature).
The Consequences of Green Mountain Narcissism
What we’re witnessing is a form of Green Mountain Narcissism—an entrenched belief among Vermont’s leaders that their policies will succeed where others have failed, even when the evidence suggests otherwise. This narcissism fuels the cycle of overpromising and under-delivering, leaving ratepayers and taxpayers trapped in a system that never delivers the relief that was promised.
As Vermont continues to pursue aggressive environmental policies and energy reforms, residents must remain vigilant and recognize that they are not merely being asked to trust in another round of theoretical benefits without concrete results. The GMP-CVPS merger was supposed to usher in a new era of efficiency and savings, yet a decade later, Vermonters find themselves facing some of the highest electricity rates in the country. The Global Warming Solutions Act looms on the horizon, promising change but requiring residents to shoulder yet another burden, all while past lessons remain unlearned.
Dave Soulia | FYIVT
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