Frequently Asked Questions about MWL's Electric Rate Case

MWL Electric Rate Increase Frequently Asked Questions

Morrisville Water and Light (MWL) is committed to providing not only reliable but affordable energy to our customers. We are proud that our customers have not seen a rate increase in 12 years. Unfortunately, due to significant price increases on everything from buying power to transformers, as a non-profit utility we need to increase our rates to match our rising costs.

In December of 2022, MWL filed a request with the Vermont Public Utilities Commission to increase electric rates by 11.25%.  We understand this unwelcome news comes at a time when many of your other bills are also rising, and that you may have questions. This set of frequently asked questions will hopefully provide the information you are looking for.  If you have additional questions, please send them to customersupport@mwlvt.com.

What will this mean for my bill?

While your specific bill will depend on your usage, the proposed rate change would cause the typical household to see an increase of about $10 in their monthly electric bill.  Despite the rate increase, MWL residential bills are still expected to be 16% lower than the typical Vermonter pays.

When will the rate increase take effect?

Rates are eligible to take effect 45 days after they have been filed with the Public Utility Commission.  This means they are eligible to be in effect on February 1, 2023. The actual date MWL will apply the new rates to bills is currently under evaluation, but we expect it to be in the February to April timeframe.

Could the PUC change the rate increase MWL applied for?

Yes, the PUC may determine the rate should be the same or lower than the 11.25% MWL filed for.

If I want to send comments to the PUC about this rate increase as a customer of MWL is there a process for this?

Yes, comments from the public are due to the PUC no later than January 16, 2023.  You can send comments to the PUC through regular mail at Public Utility Commission, 112 State Street, Montpelier, VT 05620-2701.  You should indicate in your statement that this references the Morrisville Water and Light rate case and include the rate case number which is 22-5375-TF. 

How can I keep track of progress on this rate case?

All filings regarding this case as well as scheduling and decisions can be found on the PUC electronic filing system at: ePUC.vermont.gov, Case No. 22-5375-TF

What happens if MWL implements the rate it filed (11.25%) prior to a decision by the PUC?

It is fairly common that a final PUC decision is not rendered by the date a utility is allowed to implement the new rate increase.  In the event MWL implements the new increase prior to a PUC decision, and the PUC then adjusts the amount of the rate change, then MWL would be required to apply any amounts overpaid by customers to future bills. 

How long has it been since the last electric rate increase at MWL?

2010 was the last electric rate increase.  MWL also had rate increases in 2006 and 2009.

What is driving this rate increase?

Over the past twelve years some costs, particularly purchasing power, were lower, which helped us absorb costs such as labor increases and inflationary pressures on equipment and materials.  Since 2019 the cost of buying power has dramatically increased, wiping out those savings.  Further, the inflationary pressures we’ve all felt in the past couple years have hit particularly hard on many materials we need to purchase to keep the electric grid running (transformers, wire, switches).  These costs have risen by as much as 300%.  Lastly, the costs of complying with Vermont’s Renewable Energy Standard have also risen dramatically as the cost of certain renewable energy credits we are required to purchase has risen from around $0.50 per megawatt hour to as much as $15.00 per megawatt hour.

If the cost pressures have been mounting, why did MWL wait so long to file?  Couldn’t you have done smaller rate increases to make them easier to accept?

Perhaps. The challenge is MWL is a regulated utility and, as such, we are required follow processes prescribed by the PUC in filing rate increases.  The method prescribed by the PUC requires us to look at past expenses rather than current or future expenses.  In essence, we are required to prove we needed additional revenue in a past year before we can file to increase our rates.  In our current rate case, we had to submit the rate analysis based on our costs in 2021.  This creates and forces a lagging effect in addressing revenue issues.

Will this be the last rate increase for a while? 

We are committed to providing affordable service to our customers.  However, it is likely that an additional rate increase will be required within the next year.  This is due to the PUC requirement to file rate cases based on past expenses.  For example, the current rate case is based on 2021 expenses, and we know that with the rising cost of almost everything over the past year, our 2022 expenses were higher than in 2021.  

Are water or wastewater rates also going up at MWL?

While similar cost pressures to those driving our electric rate increase exist in the water and wastewater utilities that MWL operates, at this time MWL believes increasing rates for these services can wait.  It is possible that rates for these services will need to go up in the next 6-18 months.