As VPR’s Bob Kinzel reports, the legislature is arguing over the $21 million CVPS owes consumers upon its sale to GMP owner Gaz Metro. [Late addition: NOTE that the purchase/merger deal is on the docket of the Public Service Board for review. It is unclear what impact a legislative prescription for the $21 million ‘refund’/’investment’ will have.]
In its campaign to get the money back, AARP cites the utilities’ own survey (403 Vermonters by phone in January this year) as showing Vermonters’ disbelief that they will ever see a dime.
The Vermont electric utilities telephone survey explores the opinions of 18+ residents on the upcoming merger between Central Vermont Public Service and Green Mountain Power.
The survey finds that Vermont residents do not believe they will see lower electric bills as a result of the merger. Some residents believe that the $21 million dollars that Central Vermont Public Service (CVPS) customers paid to prevent CVPS from going bankrupt should be paid back through a one-time refund while others think it should be paid back through savings over the next two years.
[emphasis added]
I tend to agree. Every time Mary Powell or her good friend Governor Peter Shumlin speak on this issue, it begins to sound like hedge funders talking about credit default swaps. Here’s Powell, with a response from Sen. Vince Illuzzi:
(Powell) “I’m not arguing with how the $21 million is counted in terms of our ability to earn a return on it. We will, yes, when we take the $21 million and we invest it, there’s a return that is paid.”
(Illuzzi) “The utility then gets to reclaim that $21 million in the form of increased electric rates. And that, in my judgment, is not how you repay a loan. You don’t simply advance what you owe back and then take it back again.”
The real flaw in the deal where the bullies keep our money is the sweetener: the merged company says it will invest the $21 million in efficiency, saving all ratepayers even more over time.
Do you, Mary Powell, and you, Governor Shumlin, really expect us to believe that the utility would not otherwise invest in efficiency?!
Puh-leeese.
Not to mention, if I’m reading this aright, it wasn’t all Vermonters who advanced that money to CVPS: It was CVPS’s own rate payers.
David Reville, the communications director for AARP Vermont, has one of the better analogies:
Reville said in the past month and a half 14,000 Central Vermont Public Service customers have sent petitions to the Public Service Board, saying they want their money back.
“The bottom line is it’s a matter of fairness,” Reville said. “What they’re proposing is tantamount to the state taking your tax refund and spending it on bridges, state parks, road salt or new trucks because they think it will help Vermont.”
[emphasis added]
This shell game is part and parcel of the attitude of the owning class toward the rest of us, a patronizing reassurance that they know better than we do, and everything will be fine, if we would just sit back and let them take total control of our lives and bank accounts. Powell’s got it, and Gov. Shumlin’s got it (in his refusal to ask the ones who can afford more to pay more).
Enough! CVPS owes its ratepayers $21 million and has stated its intention never to hand over a single thin dime, and to bury those dollars in the hazy “efficiency savings.” The deal should be stopped until that money is paid.



While taking time off from his duties presiding over the Vermont State Senate, Lt. Governor Phil Scott got a scare but thankfully was not harmed in an incident involving two alpacas. As part of Scott’s continuing Vermont Everyday Jobs Campaign Tour(an initiative to promote the Lt. Governor and showcase his relationship with the business community)the Lt. Governor spent the day making the rounds with Northern Vermont large-animal veterinarian Dr. Eda Fitchew.