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Rate and Bill Impacts of Vermont Energy Efficiency Programs
Synapse assisted the Vermont Public Service Department in evaluating the rate and bill impacts of the 2014-2034 Vermont Energy Efficiency Plan. Our analysis included rate, bill and participation estimates, both for historical impacts from the past ten years and future impacts for the next 20 years. The analysis included an innovative "bottom up" approach that more accurately captures the impact on rates from efficiency programs. Cost-effective energy efficiency resources will typically result in lower bills but higher rates. Synapse’s analysis investigated the magnitude of the higher rates relative to the lower bills for each customer sector (residential, business non-demand, and business demand customers), as well as for different types of customers (participants, non-participants, and customers on average).
The Board cited Synapse's report extensively in its Order in the 2013-2014 Demand Resources Plan Proceeding, and adopted Synapse's recommendation that the Energy Efficiency Utilities (“EEUs”) collect and report better data on customer participation, which is a key component in understanding the implications of rate and bill impacts.