MONTPELIER, Vt. (AP) — Customers of Vermont's dominant power company will see a nearly 2.5 percent rate drop beginning in October, while IBM's plants outside Burlington will see their electric rates frozen for three years, under an agreement announced Friday.
Gov. Peter Shumlin joined officials with the state Public Service Department and Green Mountain Power to announce the agreement between those parties, IBM and Associated Industries of Vermont, a manufacturers' group.
The agreement calls for a 1.46 rate cut, plus an additional 1 percent reduction due to an earlier revenue sharing agreement between the state and the owners of the Vermont Yankee nuclear plant. It also calls for freezing IBM's rates for three years. That large employer has expressed concern about power costs in Vermont for years.
"At a time when other states in our region are seeing double digit increases in power costs, Vermonters are going to see rates go down this year," Shumlin said in a statement. "This rate decrease is great news for Vermont."
He added that the "agreement provides stability and predictability for one of our most valued employers, and helps ensure that Vermont maintains a thriving center of innovation and technology well into the future."
Mary Powell, GMP's chief executive, said in a statement, ""As we continue our work to create a cleaner and more reliable energy future for Vermonters, we will maintain our focus on keeping costs affordable for Vermont businesses and families."
The agreement requires approval of the Public Service Board, which is expected to consider the proposed resolution over the next few months.