Editor’s note: This commentary is by Christine Hallquist, who is the CEO of Vermont Electric Cooperative.
[W]ith smart grid improvements and the increasing penetration of renewables, Vermont’s electric grid continues to transform in exciting ways. Vermont Electric Cooperative, Vermont’s largest not-for-profit, member-owned electric distribution utility, will continue to embrace these changes and challenges in the New Year. But before we look at 2018, let’s take stock of some of 2017’s highlights.
• We kept electric rates flat. When we started 2017, we were almost certain that we’d need to request a rate increase for January 2018. Over the year, however, employees looked for every opportunity within our power supply and transmission costs as well as other operating efficiencies to mitigate a rate increase. As a result, as we start 2018, we are happy to say we will not be asking regulators for a rate increase. VEC’s rates have been flat since January 2014, and over the past nine years VEC has averaged annual rate increases of less than 0.8 percent per year. We are very proud of this accomplishment.
• We received a distinguished safety award. After a rigorous and detailed multi-year review, VEC received the prestigious Green Mountain Voluntary Protection Program Award. VEC is the only electric distribution utility in New England that has this designation.
• We fed more clean and renewable energy onto the grid. Two new major solar projects — arrays in Hinesburg and Grand Isle – began feeding more than six megawatts of solar electricity into the electric grid. Along with VEC’s existing Alburgh project, which began providing power in 2016, these projects enable us to meet our renewable portfolio commitments through 2025 or later.
• We exceeded our goal to help our members reduce fossil fuel consumption. We also expect to exceed our first-year commitment to reduce fossil fuels usage in our service territory. In 2017, members bought plug-in electric vehicles, and moved to cleaner fuels for heating and running their businesses, for example.
In 2018, VEC will continue the important work – guided by state goals – to move our energy sources away from fossil fuels and toward cleaner sources in a cost-effective manner. That means we’ll be offering fresh incentives in the New Year to our members to purchase or lease electric cars, buy cold climate heat pumps to heat and cool homes and businesses, and even install wood pellet stoves.
Electricity storage will also be front and center in 2018 and beyond. VEC has a pilot storage project underway with a commercial account to test both the grid and member benefits, and we expect our first utility-scale storage project to be online next summer. VEC is also working on two pilot projects, with the help of U.S. Department of Energy grants, to test platforms that would enable technologies like residential storage to integrate with our control center. This initiative, combined with our planned technology upgrades, will enable VEC to take greater advantage of distributed renewable energy sources as well as peak management strategies.
The work that VEC is doing will enable Vermont to meet the goals of having 90 percent of the state’s energy come from renewables by 2050. This will require a radical transformation of how we generate and use electricity. It will require appliances that are in continuous communication with the grid, distributed storage and ubiquitous solar. VEC will carry out these goals and use the best engineering and financial expertise available in the industry. Our goal is to optimize all of our physical and human assets to carry this out in the most economic and efficient way as possible.
We know that member expectations continue to rise – as they should. That’s why every day, we at VEC are learning and improving in everything we do, always striving to deliver greater value.