Policy Solution: Ratepayer Protection
A statewide ratepayer protection program would improve low-income Vermonters’ quality of life and ensure that no one is left behind in the transition to clean, efficient energy solutions like heat pumps and electric vehicles.
What is ratepayer protection?
A statewide ratepayer protection program would ensure that low- and middle-income Vermonters can afford their electric bills. The program would provide discounts of up to 50% on electric bills, depending on income. The program would pay for itself through a small fee on higher-income ratepayers.
Legislation passed in 2024 directed the Public Utility Commission to review existing programs to reduce utility costs, consider whether a statewide program is needed, and make a recommendation to the legislature on what this might look like. Their findings are due on December 1, 2025; the legislature will consider them in 2026.
(Note: A “ratepayer” is simply anyone who pays a monthly electric bill.)
Why is it needed?
As Vermont phases out fossil fuels, households will rely more on electricity to meet their energy needs. Unless Vermont implements a thorough program for ratepayer protection, the cost of transitioning to electricity will be unfairly borne by low and moderate-income households.
Vermont has an average electric rate of 22.46 cents per kilowatt hour. This is 34.83% higher than the US average rate of 16.66 cents.
A widely accepted national threshold of affordability holds that households should pay no more than 6% of their income on energy costs. Yet 74,000 Vermont households living at or near the poverty line are paying between 11% and 51% of their income on energy. The majority of this burden is due to reliance on expensive fossil fuels for heating and transportation. Ratepayer protection would allow for electrification without the fear of rising costs, resulting in savings for households, more affordable heating, and a greener future.
Assistance programs exist in Vermont but are underutilized, difficult to apply for, and offer significantly lower discounts than those in other states.
What do we want?
A comprehensive ratepayer protection plan be passed into law in the 2026 legislative session, with tiered discounts offered to Vermonters at different income levels
Fair and affordable electrification: we want to continue electrifying Vermont’s energy grid, but without imposing undue financial burdens on low- and middle-income households.
A plan that can work in tandem with existing and future weatherization and electrification efforts.
How can you help?
Tell your story. The Public Utilities Commission and legislators need to hear from those of us who have struggled with paying our electricity bills and have had to make the decision between food, rent, and paying utility bills.
Talk to your electric utility. Many of our electric utilities in Vermont are owned by the town or us, the ratepayers! If your electricity comes from one of these smaller utilities, let them know you support Ratepayer Protection! Sample letters are available___________
Host an educational event in your community or help connect us with a community partner who might want to co-host. Our goal is to host eight educational events throughout the state. 350VT staff can provide facilitation, but we are looking for local community groups or individuals to help with logistics and outreach for events.
Talk with your legislators (on your own or with a group).
Write a letter to the editor about Ratepayer Protection.
Interested in getting involved or learning more? We would love to talk to you.
