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History and Structure

Historically, Vermont's electric utilities were required to deliver comprehensive energy efficiency programs to their customers. However, this system did not work as well as intended for two reasons. First, those utilities that are investor-owned had mixed incentives – their profits increased when they sold more electricity, yet they were expected to promote investments that would reduce their sales of electricity. Second, it was administratively inefficient for each of Vermont’s 22 electric utilities to provide their own energy efficiency programs. As a result, policymakers chose to establish a new structure to ensure more effective delivery of energy efficiency services to Vermont electric and gas customers.