Vermont Public Utility Commission Approves Revised Line Extension Tariff of Vermont Electric Cooperative, Inc.

Strategic Insights -

Vermont Electric Cooperative, Inc. ("VEC") has seen significant increases in the cost of materials for its line extension construction since the last update in 2023, based on 2022 costs. The cost of a 10 kVA pole-mounted transformer, for instance, increased from $1,695.00 to $3,069.00, a staggering 81% increase. The Vermont Public Utility Commission ("Commission") has reviewed VEC's proposed tariff and approved its revised line extension tariff, effective for service rendered on or after April 1, 2024.

Key Takeaways:

  • The Vermont Electric Cooperative, Inc. ("VEC") filed a proposed amendment to its line extension tariff with the Vermont Public Utility Commission ("Commission") on February 15, 2024, to reflect the significant increases in the cost of materials since the last update in 2023.
  • The cost of a 10 kVA pole-mounted transformer has increased from $1,695.00 to $3,069.00, a 81% increase, while other charges, such as a ledge-set pole, have decreased slightly.
  • The Department of Public Service ("Department") provided comments stating that it had reviewed VEC's filing and requested more information about why transformer costs have increased significantly more than other costs.
  • The Commission has approved VEC's revised line extension tariff, effective for service rendered on or after April 1, 2024, without hearing or additional investigation.
  • The approved tariff continues the practice of defining and allocating the actual costs of construction and installation equitably.
  • The line extension payments are reflected as a credit to plant, a balance sheet item that will not generate additional operating revenue.

Statistics:

  • The cost of a 10 kVA pole-mounted transformer increased by 81%, from $1,695.00 to $3,069.00, between 2023 and 2024.
  • The Department of Public Service requested VEC to submit clarifying language regarding construction standards and the delivery point of electric service.
  • The Commission approved the revised tariff without hearing or additional investigation, effective for service rendered on or after April 1, 2024.
  • The line extension payments are reflected as a credit to plant, a balance sheet item that will not generate additional operating revenue.

Sources:

  • (CASE NO. 24-0514-TF) STATE OF VERMONT PUBLIC UTILITY COMMISSION ORDER APPROVING TARIFF FILING, Vermont Electric Cooperative, Inc. to amend its line extension tariff, effective April 1, 2024.
  • Prefiled Testimony of Katie Orost, VEC, dated February 15, 2024.
  • Exh. VEC-KLO-1.