WESTMINSTER — A broad group of organizations focused on energy efficiency, clean energy, green jobs, affordable housing, and the needs of low-income Vermonters has expressed support for the decision of the Department of Public Service (DPS) that the $21 million “windfall” payment resulting from the merger of Central Vermont Public Service and Green Mountain Power will be invested in efficiency and clean-energy programs to benefit CVPS ratepayers.
This is a thoughtful decision by the DPS, and CVPS ratepayers should be very enthusiastic about the opportunities it will offer them.
In our work with Vermonters facing financial hardships, we have seen that energy costs are one of their biggest concerns. They are struggling to manage their energy budgets, especially for heating.
This investment will allow more CVPS customers to save a significant amount of money on the soaring cost of heating their homes for years to come.
It will especially benefit elderly and disabled individuals, single-parent families, and other households with special challenges to making ends meet.
And it will enable the state's LIHEAP fuel assistance dollars to go further by reducing the energy use of fuel-program recipients.
Last year, the homes of 1,722 Vermont households received comprehensive, state-of-the-art energy efficiency services and 341 had their heating systems repaired or replaced, through the statewide low-income Weatherization Assistance Program.
The average energy savings for these households was a remarkable 37.6 percent, resulting in an average savings per year of 270 gallons of No. 2 heating oil, or more than $1,000 per year at today's price of $4 per gallon.
The total statewide combined first-year savings in No. 2 heating oil alone was 464,940 gallons, or a savings of almost $1.86 million at the current price. That annual savings has been shown to continue every year for at least 20 years.
The CVPS windfall investment plan will enable these outcomes to expand to many more Vermonters. It offers benefits for a wide range of CVPS customers, from low- and moderate-income families struggling to fill their oil tanks to affordable-housing providers seeking efficiency funding to help make buildings permanently affordable.
Energy contractors will see increased interest in private-sector retrofits, while businesses can investigate opportunities for deeper energy-efficiency improvements.
Such improvements are highly cost-effective, delivering a positive return-on-investment relatively quickly and offering additional benefits such as improvements in health, safety, and comfort.
This plan will also have a positive impact on workforce and economic development around the state. Vermont's energy efficiency initiatives - including weatherization, the Vermont Fuel Efficiency Partnership, and private contractors - are facing serious cuts in funding and incentives, and the resulting loss of jobs.
A recent federal Department of Labor report hailed Vermont's success in creating green jobs and training workers. This effort will save jobs, create new jobs, and allow us to maintain our position as the top state in the country for green jobs at the same time it invests ratepayers' dollars for the highest return.