The state is embarking on a thorough review of Vermont’s 14 municipal electric utilities. The decision comes amid investigations into the finances of two such entities.
Department of Public Service Commissioner Kerrick Johnson has asked all of the state’s small public electric utilities to submit data on their finances, grid reliability and staffing issues.
Johnson said the goal is to make sure the utilities are healthy as they contend with increasing costs and challenges from new technologies, cybersecurity, climate change-induced storms, and demand from electric vehicles and heat pumps.
He also pointed to recent problems at two of the state’s utilities.
Customers in Hyde Park are now facing a more than 20% price increase as its electric utility struggles under $4.5 million of debt.
And Burlington Electric Department is also under investigation due to its record keeping and possible mismanagement of renewable energy credits.
The Department of Public Service hopes to have the data in hand by early next year.
“The purpose of it is to get a more comprehensive view and identify where there may be problems of which we are unaware and if there are resources we can bring to bear to help,” Johnson said.
Vermont’s 14 municipal electric utilities range in size from the very smallest in Orleans and Jacksonville with fewer than 700 customers to the Lyndon Electric Department, which serves almost 6,000 homes and businesses in 13 towns in the Northeast Kingdom.
Most of the municipal electric departments have fewer than 3,000 customers.
As it seeks to gather the financial and management data, the Department of Public Service has been working with the Vermont Public Power Supply Authority, an industry group that represents most of the municipal utilities.
Ken Nolan, Vermont Public Power Supply Authority general manager, said that while he thinks the municipal utilities are financially sound and reliable, there are challenges on the horizon.
The small electric utilities want to update their systems with smart meters, which make it easier for electric vehicle owners to charge their vehicles at home.
But some of the utilities, especially the very smallest ones, don’t have the cash flow to invest in the technologies.
There is an increasing threat from cyberattacks on small electric companies.
And like many other industries in Vermont, electric utilities face a major workforce challenge, which has made it challenging to hire line workers, as well as managerial positions and board members.
“The industry is changing rapidly. If you don’t proactively plan ahead then it’s easy to find yourself in difficulty.”Ken Nolan, Vermont Public Power Supply Authority
Nolan said it’s a good time for the utilities to assess their strengths and weaknesses.
“The industry is changing rapidly,” Nolan said. “If you don’t proactively plan ahead then it’s easy to find yourself in difficulty.”
Nolan said the situation in Hyde Park has been slowly building for 10 years, and he does not think the other utilities are at risk.
Still, with so much going on within the industry, Nolan said the Department of Public Service’s request makes sense to ensure the reliability of Vermont’s most rural electric companies.
“I understand fully why they want to do that. They need to be comfortable that the utilities are all stable and have a plan for how they’re going to manage themselves going forward,” Nolan said.
