IMPORTANT NOTICE ABOUT UPCOMING RATE CHANGES
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1 IMPORTANT NOTICE ABOUT UPCOMING RATE CHANGES For the last 50 years, Vermont Gas has maintained competitive and affordable rates for its 50,000 customers. As we work to expand our services to more Vermont families and businesses, we are committed to keeping those rates low for current and future customers. We want to let you know about two upcoming rate changes, one in August and one expected in February impacting each rate component. Each of these changes is described below. First, in August, the Natural Gas Charge component of your bill is increasing. Vermont Gas adjusts the Natural Gas Charge portion of your bill quarterly, up or down, in response to changes in the cost of gas. The net effect of this change is an average overall increase of 2.65%. This increase comes after six consecutive decreases in the natural gas charge. Also, during the recent legislative session, H.873 was passed and signed into law, which includes an increase of.25% in the fuel gross receipts tax ( GRT ). The GRT is for support of Vermont s Low Income Home Weatherization Program. This increase goes into effect July 1, Vermont Gas has implemented this change in legislation concurrent with the quarterly adjustment in the natural gas charge. The GRT increase is reflected in the Natural Gas Charge, Daily Access Charge, and Distribution Charge components of your bill, and is reflected in the table below. The total net effect of these changes is an average overall increase of 2.90%. Following a regulatory review, the rate components will be adjusted as follows: General Service Low Usage, Low Load Factor - Rate G1 Natural Gas Charge (per ccf) $ $ Daily Access Charge (per day) $ $ Distribution Charge (per ccf) $ $ $ $ Assistance Program Fee (per month) $0.99 $0.99 Average Rate G1 Overall Rate Change 3.10% General Service Low Usage, High Load Factor - Rate G2 Natural Gas Charge (per ccf) $ $ Daily Access Charge (per day) $ $1.1133
2 Distribution Charge (per ccf) $ $ $ $ Assistance Program Fee (per month) $1.00 $1.00 Average Rate G2 Overall Rate Change 2.96% General Service High Usage, Low Load Factor - Rate G3 Natural Gas Charge (per ccf) $ $ Daily Access Charge (per day) $ $ Distribution Charge (per ccf) $ $ $ $ Assistance Program Fee (per month) $6.48 $6.48 Average Rate G3 Overall Rate Change 3.83% General Service High Usage, High Load Factor - Rate G4 Natural Gas Charge (per ccf) $ $ Daily Access Charge (per day) $ $ Distribution Charge (per ccf) $ $ $ $0.0258
3 Assistance Program Fee (per month) $9.09 $9.09 Average Rate G4 Overall Rate Change 3.77% As shown in the chart below, with this change natural gas remains competitive with other forms of heating fuels, including propane, oil and electricity. Next, Vermont Gas has filed a request with the Vermont Public Service Board for an overall rate decrease of 3.3% and a renewal of its Alternative Regulation Plan. The effective date of this change is dependent on the regulatory review process but is expected to be early February,. The overall rate decrease is comprised of a 10% decrease in the Natural Gas Charge portion of your bill and a 2% increase in the Daily Access and Distribution Charges. Note: the 10% decrease in the Natural Gas Charge portion of the bill is based on rates in effect as of February, The actual percent change will depend on natural gas costs at the time of the rate change. The tables below show current rates, rates as of August, 2016 and the rate change Vermont Gas has requested for February,. General Service Low Usage, Low Load Factor - Rate G1 February, Natural Gas Charge (per ccf) $ $ $ Daily Access Charge (per day) $ $ $ Distribution Charge (per ccf) $ $ $ $ $ $0.0428
4 Assistance Program Fee (per month) $0.99 $0.99 $0.99 General Service Low Usage, High Load Factor - Rate G2 February, Natural Gas Charge (per ccf) $ $ $ Daily Access Charge (per day) $ $ $ Distribution Charge (per ccf) $ $ $ $ $ $ Assistance Program Fee (per month) $1.00 $1.00 $1.00 General Service High Usage, Low Load Factor - Rate G3 February, Natural Gas Charge (per ccf) $ $ $ Daily Access Charge (per day) $ $ $ Distribution Charge (per ccf) $ $ $ $ $ $ Assistance Program Fee (per month) $6.48 $6.48 $6.48 General Service High Usage, High Load Factor - Rate G4
5 February, Natural Gas Charge (per ccf) $ $ $ Daily Access Charge (per day) $ $ $ Distribution Charge (per ccf) $ $ $ $ $ $ Assistance Program Fee (per month) $9.09 $9.09 $9.09 To limit the increase in the daily access and distribution charge to 2%, Vermont Gas has also requested that the Public Service Board allow it to use $13.9 million of the System Expansion and Reliability Fund ( SERF ). The Public Service Board authorized Vermont Gas to begin collecting the SERF in April 2011 for future use to help bring natural gas service to more Vermonters. The current request to use $13.9 million of the SERF is related to the Addison Natural Gas Project that will bring natural gas service to homes and businesses in Addison County. Vermont Gas has also requested that the Public Service Board approve an extension of its Alternative Regulation Plan. Vermont Gas has operated under an Alternative Regulation Plan since late The Alternative Regulation Plan is a framework that establishes how Vermont Gas rates will be established. It streamlines the rate process, encourages efficiency in operations, and ensures that customers rates more closely track actual costs The Public Service Board welcomes comments from members of the public concerning both matters. If you wish to submit your comments to the Board, you can send them to: Clerk of the Board Vermont Public Service Board 112 State Street Montpelier, VT See ideas for saving energy - and a description of our business energy efficiency programs. Other resources to help manage your energy costs include Online Account Access & Bill Payment: check your payments or pay your bill 24/7. Please call us at (802) if you have any questions or would like to learn more about these options.
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