Under Vermont law, the Commission may establish an energy efficiency charge on regulated fuels for the support of electric and natural gas energy efficiency programs. In doing so, the Commission is required to provide a “reasonably stable multiyear budget and planning cycle.” To accomplish this, the electric and natural gas energy efficiency programs operate on a three-year budget cycle. Every three years the Commission conducts a Demand Resources Plan (DRP) proceeding to identify short- and long-term energy efficiency budgets and savings goals, as well as other compensation matters related to the delivery of energy efficiency services by Vermont's EEUs.
The DRP process is used to determine three-year electric and natural gas efficiency budgets and estimated TEPF budgets for Efficiency Vermont, Burlington Electric Department (BED), and Vermont Gas Systems, Inc (VGS). The DRP process is also used to determine the three-year performance targets for the three EEUs.
Under VEIC’s Order of Appointment, performance compensation is to be paid based on the attainment of three-year performance targets. The performance targets include corresponding incentive amounts attached to each and the financial consequences for under-performance.
Under BED’s and VGS’s Orders of Appointment, three-year performance targets are determined. There are no performance incentive payments associated with these performance targets.
The Commission is currently conducting the DRP proceeding for the 2024-2026 performance period, which will result in electric, natural gas, and TEPF budgets and savings goals for Efficiency Vermont, BED, and VGS.
Each of the following links provide information about DRP proceedings: