Aug. 2026 Rate Increase Information

Stowe Electric Department (SED), a not-for-profit municipal public power utility, has a robust framework to ensure both the long-term fiscal stability of the organization as well as the safety and reliability of the electric system. This includes long-range planning, financial forecasting, capital investment, and comprehensive integrated resources planning. Management regularly evaluates SED’s distribution system and power supply needs to support population and load growth, new construction, regulatory requirements, and the energy transition while ensuring adequate revenue and affordable service rates. Our goal is to provide safe, reliable, resilient electric service at a fair price to all Stowe Electric customers.

Stowe Electric Rate Increase

Stowe Electric recently completed a comprehensive cost of service study in partnership with industry experts from Energy New England and PLM Electric Power Engineering to assess the adequacy of SED’s rates in relation to rising costs across the electric utility sector. As a result, SED recently filed with the Vermont Public Utility Commission (PUC) for a rate increase of 14.6%, which will go into effect on August 1, 2026. This is SED’s first rate increase in three-and-a-half years. SED’s last rate change (approved by the PUC at 7.95%) was filed in December 2022, with rates effective February 1, 2023. The August 2026 rate increase is necessary due to the industry trends detailed below.

Electric Cost Drivers

Over the past few years, electric supply costs have continued to see upward pricing pressure due to a variety of factors. Higher fuel costs, increased competition for renewable resources, rising regional transmission service costs, and the implementation of the Day Ahead Ancillary Services Initiative (DASI) by ISO-New England have caused significant increases in costs for utilities throughout the region. In addition, ongoing conflicts in the Middle East are creating uncertainty in energy markets and driving higher forward-pricing for power contracts. On top of these rising power supply costs, inflation has significantly increased prices for materials, equipment, and labor. These market pressures are not unique to Stowe Electric or Vermont, and they have a direct impact on what it costs to provide safe, reliable, resilient electric service for our customers.

Vermont Utility Rate Increases

It is important to note that SED is not the only Vermont utility that has implemented a rate increase related to market pressures. Below is an overview of rate cases filed since May 2025 with the Vermont PUC. Due to the significant impacts of DASI and rising power costs, SED anticipates additional rate filings from several other utilities in the coming months.

Utility	% Requested	Date Filed	% Approved
Lyndon	11.744%	5/15/2025	11.744%
Ludlow*	21.5%	5/16/2025	21.5%
GMP*	7.35%	5/30/2025	7.35%
Barton	5.61%	6/13/2025	4.12%
Burlington	4.5%	6/16/2025	4.33%
Northfield	15.55%	6/18/2025	15.55%
Jacksonville*	12.479%	7/17/2025	Pending
Enosburg	8.55%	9/16/2025	6.62%
Orleans	3%	11/10/2025	3%
VEC	2.99%	11/14/2025	2.99%
Hyde Park*	20.10%	11/14/2025	20.10%
GMP*	7.5%	1/16/2026	Pending
Swanton	30.28%	3/16/2026	Pending
Ludlow*	7.20%	4/15/2026	Pending
Hyde Park*	14.92%	4/15/2026	Pending
Morrisville	11.17%	5/12/2026	Pending
Jacksonville*	17.72%	5/21/2026	Pending

* Utilities with multiple rate cases May 2025-May 2026

Rate Approval Process

SED recognizes that rate increases are never popular and takes its responsibility to provide affordable service seriously. The rate request approved by the Stowe Electric Commission and filed with the PUC represents SED’s real revenue needs based on both actual costs from the previous 12 months of operations as well as anticipated changes in the upcoming year. SED’s rate filing will follow a regulatory process that includes comprehensive review by the Vermont Department of Public Service and final approval by the Vermont Public Utility Commission.

Stowe Electric customers will see a 14.6% rate increase effective August 1, 2026. Upon completion of the rate approval process, the PUC will make a final determination on SED’s rate case. If the PUC approves an increase that is lower than the 14.6% requested by SED, customers will receive a refund for the difference, going back to the implementation date of August 1, 2026. Customers should note that this regulated rate approval process may take up to a year to complete.

All materials related to Stowe Electric’s tariff filing can be found at the Vermont Public Utility Commission’s ePUC website under case 26-1130-TF.