This commentary is by Don Keelan of Arlington, a retired certified public accountant.
My Green Mountain Power monthly statement arrived, with it, an announcement, in small print, of an increase beginning January 1.
However, after reviewing the latest tax filing from its parent organization, I can see why more funds need to be sent. I should point out, for accuracy, that the financial information I am discussing comes from the 2022 Form 990 filed by the nonprofit Vermont Energy Investment Corporation, which operates EV. Efficiency Vermont is one of many programs run by VEIC, which operates in multiple states.
GMP will collect 2.5% more each month for the billing charge that GMP sends to Efficiency Vermont. My tiny office building will see a more significant increase of 3.6%. While not surprised at the increase, I am puzzled why Efficiency Vermont even needs more funds sent their way.
VEIC closed 2022 (latest year data is available) with total revenues of $108,745,667. It did so with an employment complement of 381 and a board of trustees of 11 members.
While most of us might think of Efficiency Vermont and its parent company, VEIC, as strictly doing business in Vermont, that is not the case. The organization has grown, and out-of-state consulting garnered $8,461,000 of VEIC’s revenue. VEIC commented on its tax return: “VEIC provides national and international consulting services to utilities, businesses, government agencies, municipalities, and foundations. In 2022, VEIC’s consulting services spanned more than 24 states and provinces.” I should mention this includes Hawaii and California.
Staying with the facts for a moment: if one had to choose to work as an executive with the State of Vermont or VEIC, make it the latter. Here’s why: based on 2022 Form 990 data.
The compensation of the CEO of VEIC was $277,440. The Governor of Vermont receives $208,977. Better yet, take the position at VEIC of Chief People Officer at $200,988. The Vermont Commissioner of Corrections earns approximately $140,000 and is responsible for over 7,000 folks. The managing director of VEIC’s Washington DC operation received $323,414 for working seven months through July. It turns out that an additional severance payment of $175,000 was paid to the director that year.
Other state leaders, the State Auditor, and the Secretary of State had the same compensation of approximately $132,500. Our elected representatives get to set these rates of compensation. Who gets to set those at Efficiency Vermont?
However, there were two other expense disbursements that I found intriguing. The $159,000 goes to in-house legal counsel, while the Vermont Attorney General receives $158,562 annually. Then, $95,000 was paid to the Necrason Group, one of Montpelier’s most influential lobbying firms. Why would VEIC ever need to do so much lobbying?
Over the years, I have written about EV. It is not because I have an ax to grind with their operation. It is because they are the poster child of unregulated Vermont: the extensive use of the myriad of Vermont nonprofits that operate as giant financial conduits. The conduit applies to simple operations such as Meals on Wheels, housing, mental health, etc.
Back to VEIC: The 2022 Form 990 shows the company paying out $53 million in incentives out of total expenses of $106,290,000. The organization is going international, it has one employee (per the 2022 Form 990) in the United Kingdom who received approximately $95,000.
Efficiency Vermont is not different than most Vermont nonprofits that are, in effect, quasi-state agencies. They have substantial mission creep. If a survey of Vermonters was to be conducted with one question — what is the purpose of EV, the answer would be “How to better insulate, install draft-free windows, and set up a more efficient heating system in my home and business.” That might have been the mission when the program was created, but not today.
Correction: An earlier version of this story conflated Efficiency Vermont with the larger nonprofit that operates the program, the Vermont Energy Investment Corporation.
