Editor’s note: This commentary is by David Coates, a retired managing partner at KPMG — Vermont and a member of the Vermont Business Roundtable. He was a member of the 2010 state Commission on the Design and Funding of Retirement and Retiree Health Benefits Plans for State Employees and Teachers. His is on the board of directors of Green Mountain Power. He lives in Colchester.
[I]n his zeal to attack Green Mountain Power, Bob Amelang, who spent little time actually working at GMP, forgot one of the most important principles of good dialogue – have your facts in order. As a director of GMP, I feel compelled to respond.
Let’s look at the numbers, because the facts do matter. An annual survey of GMP customers is required by regulators to measure quality levels and customer satisfaction, and GMP consistently scores very high. In the most recent independent customer survey, 95 percent said they were satisfied with the service they received from GMP. Ninety-seven percent said GMP provides reliable electric service. Also, customers have seen the number and length of outages decrease. In 2015 customers saw the average length of each outage decrease to less than two hours.
The person who has led the work to achieve these amazing outcomes for customers is Mary Powell. Mary is the first female CEO of an investor-owned utility in Vermont, one of the few female utility CEOs in the country, and a mentor to young women on what can be accomplished through tremendous hard work, sacrifice and grit.
Mary led the work to have GMP become a certified B Corp, which now holds the company accountable to deliver basic services, growth and innovation in a responsible way. She is a pioneer and continues to give back to her community in many ways.
Mary is doing the job of two CEOs in one merged company, and insisted on no pay increase two years in a row. Mary has also asked the board to donate part of her compensation to the company’s WARMTH program to help Vermonters who need help paying for heat.
Mary has been effective in decreasing other executive benefits at GMP to bring compensation in line with other socially responsible companies. She does not benefit from stock compensation like the previous two CEOs of GMP and CVPS, who received millions of dollars before she merged the company into one more efficient company.
Beyond all of that, here again, he is wrong on the numbers.
He quotes her salary in Canadian dollars, so her actual compensation in U.S. dollars is lower. Also, for Mary’s all in compensation of $1.36 million, he neglects to mention that only half of it goes into the company’s rates, $696,000, and the other portion is the responsibility of the company’s investor.
GMP has lowered bills three times in the past four years, a tremendous outcome for customers.
Mary’s compensation is directly tied to excellent customer outcomes, a fact Mr. Amelang leaves out. Performance metrics include goals to improve customer service, achieve reasonable rates for customers, achieve customer merger savings, and implement innovative programs to support our customers to help lower their overall energy costs.
GMP has lowered bills three times in the past four years, a tremendous outcome for customers. What is exceptional is that GMP has had these reductions at a time when other utilities in New England are increasing rates, some by double digits. GMP’s rates are now overall the second lowest in New England.
Mr. Amelang is also wrong about GMP’s power supply. The vast majority of GMP’s power sources – more than 80 percent — are purchased through power contracts that provide no economic benefit for the investor.
Mr. Amelang cites “rampant and reckless renewable development.” What he does not site is examples. GMP has taken initiative and developed its own very strong internal siting standards that have resulted in well-sited projects with community support that benefit customers through lower rates.
Kingdom Community Wind is an example of this. It is a project that was overwhelmingly supported by the community in two separate votes, once before it was built and then again after the project was operational. GMP is currently paying for independent third party sound monitoring at Kingdom Community Wind and regulators have not received any complaints from neighbors in over six months.
All utilities are incented to create meaningful investments in the infrastructure it takes to maintain reliable and cost-effective power, as that is in the best interest of customers. And that is what GMP is doing and doing well. Just ask the majority of customers, not the vocal minority that Mr. Amelang now represents.
You know the saying, never let the truth stand in the way of a good story, unless you can’t think of anything better. Well, Vermonters deserve the facts. It is key to healthy debate and what makes our state strong.
