Vermont Gas’ rates are based on our cost to provide natural gas service to customers.  Our rates are reviewed and approved by the Vermont Public Service Board and Vermont Public Service Department (together, “Vermont regulators”) through a robust regulatory process, which this year resulted in two levels of review.


First, under our Alternative Regulation Plan, we filed our proposed “Annual Adjustment” on August 28, 2013 to go into effect November 1, 2013. 

·          The Annual Adjustment changes consist of an annual change to Daily Access and Distribution Charges, as well as a quarterly adjustment to the Natural Gas Charge. 

·          The purpose of the Annual Adjustment is to ensure that our rates reflect as accurately as possible our actual cost to provide natural gas service.  This can sometimes cause rates to increase, and sometimes to decrease.  In this case, overall rates will be decreasing by 5.86%.


Second, Vermont regulators required us to file a so-called “Rate Design,” to ensure that our costs to provide natural gas service are fairly split among and within customer rate classes. 

·          The Rate Design does not change the total amount we collect from customers in rates.  Instead, it rebalances how the total amount Vermont Gas collects in rates is allocated among customers.

The aim of Rate Design is to ensure that each class of customers pays their fair share and no more.  Accordingly, the Rate Design causes some customers to see an increase in their rates and other customers to see a decrease, on a stand-alone basis.


The combined effect of these two adjustments means the Natural Gas Charge component of your bill is decreasing while the Daily Access and Distribution Charges are increasing.  The net effect of this change is an average overall decrease of 5.86%.  The average residential customer will see a decrease of about $66 per year.  The actual impact will vary from customer to customer depending on the amount of natural gas you use.



Following a regulatory review, the residential rate components will be adjusted as follows:


Rate Components


November 1, 2013


November 1, 2013

Natural Gas Charge (per ccf)



Daily Access Charge (per day)



Distribution Charge (per ccf)



Assistance Program Fee (per month)




As shown in the chart below, with this decrease, natural gas remains very competitive with other forms of heating fuels, including propane, oil and electricity. 



 Vermont Gas has the following resources to help manage your bill:

See ideas for saving energy
- and a description of our residential energy efficiency programs.

 Other resources to help manage your energy costs include:

Free Home Energy Audit: offered to qualified customers through our energy efficiency program.

Budget Billing: ensures a predictable monthly bill (no cold weather spikes).

Online Account Access & Bill Payment: check your payments or pay your bill 24/7.

Financial Assistance: available for income qualified customers.

Equipment Inspections: make sure your system is operating efficiently with an inspection.

Please call us at (802) 863-4511 if you have any questions or would like to learn more about these options.