VBSR
Vermont Businesses for Social Responsibility
60 Lake Street Suite 3G Burlington, VT 05401
802/862-8347 www.vbsr.org
May 17, 2006
Via e-mail
Susan M. Hudson, Clerk
Vermont Public Service Board
Chittenden Bank Building, Fourth Floor
112 State Street, Drawer 20
Montpelier, Vermont 05620
Re: Energy Efficiency Utility Budget Review
Dear Ms. Hudson:
This letter presents the comments of some of the businesses that comprise Vermont
Businesses for Social Responsibility (VBSR) regarding the Energy Efficiency Utility
budget review. The comments represent the position of VBSR and are intended to
provide input to assist the Board with the task of setting the budget for the Energy
Efficiency Utility (EEU) over the next three years.
We recommend that the Public Service Board set a budget for the energy efficiency
utility that will provide for the lowest state energy bill while aggressively seeking to lower
electric energy consumption in Vermont through cost effective efficiency measures.
Based on analysis of bill impacts done by the Department of Public Service and CVPS,
we specifically recommend that the Board adopt a budget that provides the funding set
forth in scenario #5, which increases the efficiency budget to $52 million by 2008. This
scenario provides the greatest bill savings as a result of reduced energy demand and is
commensurate with purchasing additional power at $ 0.03 per kWh.
As businesses, we are committed to socially responsible business practices and
ensuring our decisions provide customers with the best service or product at the lowest
cost, including environmental and social factors in that equation. In terms of cost,
reducing our exposure, both as businesses and as a state, to the volatile electric market
in the northeast will benefit our businesses and the health of the Vermont economy.
With the pending expiration of two-thirds of Vermont’s electricity contracts in the coming
decade, it is important to take action now to limit the amount of power that will need to
be bought on the open market. Energy efficiency investments today provide one of the
best hedges against future volatility in the electricity market.
If we begin now on the projected trajectory of scenario #5a Vermonters will avoid the
annual purchase of an estimated 1.7 million MWh by 2015. Vermont would avoid
purchasing or building roughly 200 MW worth of generation. Additionally, the investment
would save Vermonters an estimated $129 million in the year 2015 alone, compared to
the base case scenario. Investment in efficiency measures at the level outlined in
scenario #5 would also provide additional utility system stability and reliability while
increasing the amount of money that would continue to circulate in the Vermont
economy rather than flow to out-of-state power generators.
Finally, we support the amortization of the energy efficiency investment as this would
more accurately spread the cost over the project’s savings horizon and mitigate the rate
impact of this investment.
Thank you for your consideration of these comments. We encourage the Board to take
this important opportunity to put Vermont on a path to reducing our electric demand and
our energy bills.
Sincerely,
Vermont Businesses for Social Responsibility
Burlington
East Haven Wind Farm
Montpelier
Gardener’s Supply
Burlington
Global Resource Options
White River Junction
Green Mountain Coffee Roasters
Waterbury
Native Energy, LLC
Charlotte
Seventh Generation
Burlington
Small Dog Electronics
Waitsfield
Stephanie Lahar and Associates
Montpelier