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State of Vermont

House of Representatives

Montpelier, Vermont

Joint House Resolution

J.R.H.  40

Joint resolution requesting the public service board to restrict any 2008 rate increase granted to Central Vermont Public Service Corporation to a level that is truly affordable to Vermonters

Offered by:  Representative Obuchowski of Rockingham

Whereas, in January 2006, Governor James Douglas entitled his annual state of the state address to the General Assembly “Making Vermont Affordable for Vermonters,” and

Whereas, in his address, he stated that “high energy costs” and other factors have resulted in “a challenging economic environment [that] all conspire to drive our young people to seek a more affordable life elsewhere,” and

Whereas, the governor continued that “Vermont has the 6th highest cost of living in the nation, despite no major metropolitan areas” within the state’s boundaries, and

Whereas, the governor’s astute observation that affordability is a central theme in the lives of Vermonters should be applied in all sectors of the state’s economy, and

Whereas, an order of the public service board, dated December 7, 2006 and effective January 1, 2007, amended a memorandum of understanding between the department of public service and the Central Vermont Public Service Corporation (CVPS) relative to rates and revenue, and

Whereas, in an order effective January 1, 2007 pursuant to this order, the public service board (PSB) granted CVPS a rate increase of 4.07 percent for the sale of electric power, and

Whereas, even though the 4.07-percent rate increase that the PSB awarded to CVPS is below the 6.15-percent the company had requested, retail consumers were still required to pay an additional $10.833 million above the then-existing rates, and

Whereas, on Tuesday May 1, 2007 CVPS President-CEO Bob Young announced at the company’s annual stockholders meeting that a rate increase would be requested and in a newspaper interview following the meeting, he elaborated that the request would “be in line with what we did last year” which would mean the original CVPS 2006 request of 6.15 percent, and

Whereas, as unaffordable as the final PSB-granted 4.07-rate increase was for Vermonters, a proposed 6.15 percent increase is far worse and beyond the ability of most Vermonters to afford, now therefore be it

Resolved by the Senate and House of Representatives:

That the General Assembly requests the public service board to restrict any 2008 rate increase granted to Central Vermont Public Service Corporation to a level that is truly affordable for all Vermonters, and be it further

Resolved:  That the secretary of state be directed to send a copy of this resolution to John Volz, chair of the public service board, and to Bob Young, president and chief executive officer of the Central Vermont Public Service Corporation in Rutland.


____________________________              Attested to:

Gaye R. Symington

Speaker of the House


____________________________              ____________________________

Brian E. Dubie                                             Donald G. Milne

President of the Senate                               Clerk, House of Representatives


Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont