On September 21, 2006, the Commission approved an Alternative Regulation Plan for Vermont Gas Systems, Inc. (Vermont Gas), the only natural gas company in the state. This Plan includes two different rate-setting mechanisms unavailable under traditional regulation.
- Quarterly Rate Adjustments: increases or decreases in Vermont Gas’ actual gas costs (which make up the majority of Vermont Gas’ total costs) flow through to ratepayers on a quarterly basis.
- Annual Adjustments: based on whether Vermont Gas earned more or less than its allowed rate of return on equity in the prior year.
The Initial Plan was in use from 2006-2012:
On August 21, 2012, the Commission approved a Successor Alternative Regulation Plan for Vermont Gas. The successor plan incorporates some changes to the initial plan.
The Successor Alternative Regulation Plan has been in use from October 1, 2012, to the present.
On August 4, 2016, the Commission further extended the term of the Successor Alternative Regulation Plan for Vermont Gas through February 2, 2017.