Burlington Electric Commission — Burlington, VT
Date: 2025-09-10
Time: 17:00

BURLINGTON
 BOARD OF ELECTRIC COMMISSIONERS
 585 Pine Street
 Burlington, Vermont 05401
 To be held at Burlington Electric Department (and)
 Via Microsoft Teams
 +1 802-489-6254
 Conference ID: 636 059 465#
LARA BONN, CHAIR
ALI KENNEY
SCOTT MOODY
ANDY VOTA, VICE CHAIR
BETHANY WHITAKER
 AGENDA
 Regular Meeting of the Board of Electric Commissioners
 Wednesday, September 10, 2025 – 5:00 PM


1. Agenda

2. Minutes of the July 23, 2025 Meeting

3. Public Forum

4. Commissioners’ Corner (Discussion)

5. GM Update (Discussion)

6. Financial Review (Discussion) – Emily Stebbins-Wheelock

7. Efficiency Programs Update (Discussion) – Chris Burns

8. Proposed Amendments to Street Lighting Tariff (Discussion and Vote) - James Gibbons

9. Relevate Power (Discussion and Vote) – James Gibbons

10. Commissioners’ Check-In (Discussion)




 Attest:

 _________________________________________
 Elena Alexander, Board Clerk

If anyone from the public wishes to speak during the public forum portion of the Commission Meeting and/or wishes to be present for the
Meeting of the Board of Electric Commission via Microsoft Teams, please email ealexander@burlingtonelectric.com to receive a link to the
meeting.




Note: Members of the public may speak during the Public Forum, or when recognized by the Chair during consideration of a specific agenda item.

BURLINGTON
 BOARD OF ELECTRIC COMMISSIONERS
 585 Pine Street
 Burlington, Vermont 05401
 To be held at Burlington Electric Department (and)
 Via Microsoft Teams
 +1 802-489-6254
 Conference ID: 636 059 465#
LARA BONN, CHAIR
ALI KENNEY
SCOTT MOODY
ANDY VOTA, VICE CHAIR
BETHANY WHITAKER
 AGENDA
 Regular Meeting of the Board of Electric Commissioners
 Wednesday, September 10, 2025 – 5:00 PM


1. Agenda

2. Minutes of the July 23, 2025 Meeting

3. Public Forum

4. Commissioners’ Corner (Discussion)

5. GM Update (Discussion)

6. Financial Review (Discussion) – Emily Stebbins-Wheelock

7. Efficiency Programs Update (Discussion) – Chris Burns

8. Proposed Amendments to Street Lighting Tariff (Discussion and Vote) - James Gibbons

9. Relevate Power (Discussion and Vote) Possible executive session in order to discuss confidential contract
 terms.

10. Commissioners’ Check-In (Discussion)




 Attest:

 _________________________________________
 Elena Alexander, Board Clerk

If anyone from the public wishes to speak during the public forum portion of the Commission Meeting and/or wishes to be present for the
Meeting of the Board of Electric Commission via Microsoft Teams, please email ealexander@burlingtonelectric.com to receive a link to the
meeting.




Note: Members of the public may speak during the Public Forum, or when recognized by the Chair during consideration of a specific agenda item.
 DRAFT MINUTES OF REGULAR MEETING
 BURLINGTON ELECTRIC COMMISSION

 Wednesday, July 23, 2025

The regular meeting of the Burlington Electric Commission was convened at 5:02 pm on
Wednesday, July 23, 2025, at Burlington Electric Department, 585 Pine Street, Burlington, Vermont,
and on Microsoft Teams.

Attendance
  Channel 17 was present to record this meeting.
  Commissioners Lara Bonn, Michelle Hobbs, Scott Moody, Andy Vota, and Bethany Whitaker
 were present.
  Staff members Elena Alexander, Paul Alexander, Mike Kanarick, Darren Springer, and Emily
 Stebbins-Wheelock were present at 585 Pine St.
  Staff members James Gibbons and Amber Widmayer were present via Microsoft Teams.
  Public members Nick Persampieri, Ashley Adams, Leendert Huisman, Peter MacAusland,
 Tate Agnew, Steve Goodkind, and Kim Horning-Mavey were present at 585 Pine St.
  Public member Pike Porter was present via Microsoft Teams.

Agenda
Commissioner Whitaker made a motion to add item #9, Sheffield Wind Contract Extension –
Discussion and Vote, to the agenda. Commissioner Vota seconded the motion. Vote: 5 ayes 0 nays.

Election of Officers
  Commissioner Moody made a motion to elect Lara Bonn as Commission Chair;
 Commissioner Whitaker seconded the motion. Vote: 4 ayes 0 nays.
  Commissioner Whitaker made a motion to elect Andy Vota as Commission Vice Chair;
 Commissioner Moody seconded the motion. Vote: 4 ayes 0 nays.
  Commissioner Vota made a motion to elect Elena Alexander as Commission Clerk;
 Commissioner Moody seconded the motion. Vote: 5 ayes 0 nays.

Meeting Minutes
Commissioner Moody made a motion to approve the minutes of the June 11, 2025, Commission
Meeting; Commissioner Hobbs seconded the motion. Vote: 5 ayes 0 nays.

Public Forum
Pike Porter expressed appreciation for Burlington Electric Department's Strategic Direction
document, commending its focus on low-income customers. However, he stressed the importance of
acknowledging the 2019 climate emergency resolution committing Burlington to achieve net-zero
 1
greenhouse gas emissions by 2030 across all sectors. Porter argued that net-zero references in BED
documents need to be revised to align with this resolution.

Porter opposed the inclusion of the District Energy System (DES) in the Strategic Direction, citing
concerns that it could increase greenhouse gas emissions and consumer costs, believing that funds
could be better spent on community solar initiatives for those unable to install solar panels. Porter
advocated for the removal of the DES from the document.

While Porter supports BED's directive to seek customer input, he argued that BED has not fully
realized this goal despite years of advocacy. Porter applauded the idea of creating educational tools
and a website for customers to evaluate heat pumps, electric vehicles, and electri ication
technologies, although he questioned if those tools are currently available.

Additionally, Porter called for the development of a similar tool for Commissioners and the public
that compares costs and emissions of various power sources, speci ically evaluating how the McNeil
facility compares to other grid sources. Overall, Porter urged BED to better align with the city’s
climate goals, improve community engagement, and enhance transparency regarding energy costs
and emissions.

Nick Persampieri, a resident of Ward 3, expressed signi icant concerns regarding recent legislation
signed by the Connecticut governor that may hinder BED’s ability to sell renewable energy credits
(RECs) from the McNeil plant in the Connecticut Class 1 market. Persampieri highlighted that
McNeil's inancial viability relies heavily on these REC sales, which typically generate between $6
million to $8 million annually, with Burlington Electric receiving approximately half of that revenue.
He pointed out that the plant is already facing inancial losses, and potential changes in legislation
could exacerbate the situation.

Persampieri referenced General Manager Springer's memo from July 2025 that suggests BED might
need to undergo a proposal process through the Connecticut Department of Energy and
Environmental Protection to continue selling RECs, raising questions about the future of these sales.
He voiced his opposition to pursuing long-term commitments for selling power or RECs from
McNeil and advocated for considering the closure of McNeil. He also raised concerns about
negotiations related to a potential buyout of the plant’ other joint owners, which could lead BED to
bear the full inancial burden of the plant's losses.

Persampieri criticized the lack of transparency regarding Burlington Electric's DES project,
suggesting it might further entrench the plant’s operations and losses. He stressed the need for
increased public disclosure on both the buyout negotiations and the DES project to allow citizens to
engage in these critical discussions.

Persampieri concluded by urging a reevaluation of BED’s strategic goals aimed at achieving net-zero
energy by 2025. Persampieri advocated for a strategy that focuses on reducing overall greenhouse
gas emissions, given that the wood-burning power plant is a signi icant source of carbon dioxide
emissions within the state. He emphasized the importance of public discourse on these matters for
more informed decision-making, particularly regarding environmental impacts.

 2
Ashley Adams expressed concern about BED’s direction, particularly regarding the continued
operation of the McNeil plant. Adams cited the plant's signi icant contribution to climate change
and environmental degradation. Adams voiced her disappointment with the Commission's support
for McNeil, deeming it disgraceful and not serving the public good. Adams argued that investing in
the plant, which is Vermont's highest carbon emitter, exacerbates the climate emergency and
compromises efforts to protect habitats and biodiversity.

Adams criticized BED for maintaining misleading claims on its website about McNeil's reduction of
greenhouse gas emissions, labeling such assertions as scienti ically inaccurate. Adams strongly
opposes the DES project, which she believes would increase greenhouse gas emissions and
entrench Burlington in reliance on dirty energy. She re lected on the City Council's 2019 call for
signi icant climate action and cited losses incurred by ratepayers due to inaction and
mismanagement, including a million-dollar loss from improper paperwork ilings.

Additionally, Adams addressed the need to confront anticipated losses of RECs and dispel myths
surrounding McNeil's role in ensuring reliability or keeping rates low. Adams asserted that the
plant's costs far exceed those of cleaner alternatives available in the grid. Adams stated that it
should not be the responsibility of ratepayers to subsidize forestry industries at such a high
environmental cost.

Adams urged the Commission to act in their iduciary duty by retiring the McNeil plant and
advocated for a fair transition for its workers while prioritizing climate action and public health. She
called for immediate measures that re lect a commitment to sustainability and the well-being of
Burlington's residents.

Peter MacAusland asked several questions regarding communication and accountability within
Burlington. He inquired if Commissioners are expected to acknowledge correspondence from
residents, to which the answer was af irmative. MacAusland referenced a personal email he sent to
Commissioner Moody, apologizing for his behavior during a previous Council meeting and
mentioning his queries about Quanti ied Ventures, a potential funding source for the DES.

MacAusland noted that he has attempted to contact Quanti ied Ventures multiple times and visited
their of ice in Montpelier, seeking information on who serves as Burlington's spokesperson. He
emphasized the importance of receiving acknowledgment for correspondence, especially when
dealing with signi icant proposals, such as a $49 million project mentioned in July 2024 by Michael
Ahern of Evergreen Energy. MacAusland challenged the notion that inancing from Quanti ied
Ventures is unlikely for energy-related projects, citing a lack of formal communication or
partnership despite prior exchanges about low-interest inancing opportunities through the EPA's
Greenhouse Gas Reduction Fund.

MacAusland also mentioned potential increases in DES project costs, estimating the proposal could
be approaching $60 million, urging the need for transparency and communication with the city
council regarding inancial implications.

Steve Goodkind, a retired Burlington public works director and city engineer, shared his perspective
on the DES project. Goodkind, a member of the Stop Vermont Biomass organization, emphasized the
 3
need for clarity regarding the project, which was initially perceived as urgent when a resolution was
passed twenty months ago. Goodkind believes that the context surrounding the resolution has
changed, leading to a mischaracterization of the project as an emergency. He asserted that the
resolution, while containing potential positive aspects, was negotiated under undue pressure.

Goodkind raised concerns about comparing environmental hazards, likening it to debating which of
two unsafe bridges is worse. He argued that both the McNeil plant's CO2 emissions and vehicle
emissions are harmful, and downplaying one over the other is unproductive. Goodkind noted that,
as of December 2, the McNeil plant is the largest stationary CO2 producer in Vermont, suggesting
that arguing over relative harm is misguided. He called for a calm evaluation of the project, free
from the emergency narrative that has shaped prior discussions.

Kim Horning-Mavey expressed gratitude for BED’s efforts made to improve Burlington's building
operations and their transition to more ef icient, less polluting systems, particularly heat pumps.
Horning-Mavey addressed the health impacts associated with burning wood, which has been her
primary area of study for the past four years. Drawing on research from the American Lung
Association and medical connections, Horning-Mavey asserted the extreme toxicity of wood fuel,
speci ically its emissions of PM2.5, a critical air pollutant regulated by the EPA. Horning-Mavey
noted that PM2.5 is extremely small and poses signi icant health risks, contributing to respiratory
issues like asthma and COPD, and is linked to emergencies in local healthcare facilities.

Horning-Mavey stated that despite the use of advanced electrostatic precipitators at McNeil, the
facility still emits over ive tons of PM2.5, affecting nearby neighborhoods. Horning-Mavey
referenced research from Harvard indicating that PM2.5 exposure correlates with heart issues,
cancer, mood disorders, and dementia, particularly affecting vulnerable populations such as unborn
children, seniors, and those living in impoverished or marginalized communities. Horning-Mavey
stated that Vermont ranks ifth nationally for asthma prevalence, with certain demographics,
including low-income individuals, the LBGTQ community, and people of color, experiencing higher
rates of asthma.

Horning-Mavey stated that wood burning releases more harmful pollutants than coal, with studies
suggesting that rising wood combustion is leading to increased mortality rates. Horning-Mavey
cited a New York Times article discussing research that indicates 10 to 25 percent of lung cancer
cases are now found in non-smokers exposed to air pollution, highlighting the signi icant health
risks posed by air quality.

Horning-Mavey urged a transition away from burning fuels for electricity generation, particularly
given the ongoing climate crisis exacerbating air pollution and public health issues. She also noted a
potential positive development in solar energy, mentioning that a friend in the solar industry shared
insights about projected reductions in solar panel costs due to oversupply. Horning-Mavey believes
that this, alongside the incentive for transitioning to solar and heat pump technology, presents an
opportunity for signi icant improvement in public health and environmental outcomes.

Commissioners Corner


 4
Commissioner Whitaker requested updates regarding District Energy. General Manager Springer
indicated that, although City Council approval was granted in November for the District Energy
initiative, progress was delayed due to proposed changes to a recently approved carbon fee. This led
to a pause in discussions initiated by the UVM Medical Center and extended into early 2024. A
transition in the mayoral of ice delayed matters further as the new administration’s priorities took
time to assess.

Throughout this time, the focus remained on inalizing a land use Memorandum of Understanding
with the UVM Medical Center, which wrapped up in February 2025. Due to limited capacity and
competing priorities, discussions on District Energy, along with various other studies and projects
(including battery storage and wood chip dryer engineering), were sidelined. General Manager
Springer expressed the hope that meaningful discussions and updates on District Energy would
resume in the coming months.

General Manager Springer responded to a query regarding comparisons between ISO New
England’s greenhouse gas emissions and those of the McNeil facility. While some argue that the ISO-
NE grid energy mix has lower emissions, this perspective narrowly considers only stack emissions
without considering upstream methane leakage associated with natural gas, which comprises more
than half of the ISO-ISO energy mix. Conversely, the lifecycle bene its of biomass, such as carbon
cycling from certain wood sources, are often dismissed, despite studies indicating a more favorable
carbon pro ile for sustainably harvested wood compared to fossil fuels.

General Manager Springer highlighted the importance of a lifecycle emissions perspective rather
than a solely stack emissions approach. Additionally, he noted that all renewables are generally
more expensive than the ISO-NE grid mix; while economics should be considered, they should be
considered for all potential resources, not solely for wood resources.

FY25 May Financials
Ms. Stebbins-Wheelock shared several inancial updates before discussing the results for May 2025.
  The BED accounting team is in the process of closing June with a preliminary report on
 iscal year 2025 expected in September. As of June 30, the operating cash position stands at
 $8.5 million, which is $1.3 million under budget. Additionally, preparations are underway
 for the year-end audit, with auditors starting their ieldwork in September.
  Regarding the re inancing of the 2014A revenue bonds, the Vermont Bond Bank is set to
 price the issuance next week, with a closing date on August 7.
  The Department is inalizing a iling of miscellaneous service fees for the Public Utility
 Commission and plans to submit it by week’s end.
  The Department has negotiated terms for a new credit card processor; these changes will be
 implemented coincident with the new customer information system and customer portal
 next spring. A 3% fee on credit card payments will replace the previous lat fee of $3.50 and
 the ACH/e-check fee will decrease from $3.50 to $1 per transaction. This revised structure is
 expected to be more bene icial for customers, particularly low-volume users, addressing
 concerns surrounding how lat fees impact their payments.

May 2025 results, net income was $340,000 against a budget of $1.56 million, creating a variance of
$1.2 million, predominantly due to a drop in REC revenues. While there was a favorable variance in
 5
customer sales of $76,000, other revenues fell short due to lower-than-expected EEU
reimbursements. REC revenues were $1.37 million less than budget due to both timing (some RECs
were delivered in April instead of May) and lower wind production in calendar year 2024.

Year-to-date, REC revenues are down by a net of $190,000, with all REC transactions concluded.
McNeil REC sales for the iscal year were favorable to budget by $425,000, wind REC sales were less
than budget by $471,000 and hydro and solar REC sales were less than budget by $96,000 and
$47,000, respectively due to lower production in prior periods.

Net power supply expense was favorable compared to budget by $67,000, with higher fuel costs
offset by lower transmission and purchased power expenses. Other operating and maintenance
expenses were favorable by $146,000 compared to budget.

Year-to-date net income is $4.5 million compared to a budgeted $3.9 million, a positive variance of
$542,000. Commissioner Vota asked for a projection of year-end net income. Ms. Stebbins-Wheelock
responded that the Department’s most recent forecast projected a net income of $3.5 million by
 iscal year-end, which would be slightly better than the budgeted net income of $3.4 million.

Commissioner Vota asked about the favorable variance in the Winooski property tax. Ms. Stebbins-
Wheelock responded that the FY25 budget was set prior to the completion of Winooski’s recent
reappraisal, which resulted in a lower property value for Winooski One based on the plant’s
historical revenues and expenses.

Capital expenditures for May year-to-date were $7.5 million against a budget of $11.2 million,
largely due to delays in IT projects and vehicle replacements. The operating cash position at the end
of May was $9.5 million compared to a budgeted amount of $11 million, largely due to additional
REC purchases. The debt service coverage is reported at 4.91, with an adjusted ratio of 1.26, and
days cash on hand was144 days, including the $10 million line of credit.

General Manager’s Update
In response to Nick Persampieri's inquiry regarding Connecticut RECs, General Manager Springer
con irmed that wood energy remains eligible for Class 1 RECs under the recently passed
Connecticut legislation. However, this eligibility is contingent on quali ied biomass plants being
awarded a contract in an upcoming RFP process through the Connecticut Department of Energy and
Environmental Protection, expected to begin in September. Importantly, McNeil is eligible to
participate in the RFP, and BED will be focused on maintaining McNeil’s CT Class 1 REC eligibility to
mitigate adverse impacts on revenue in the fourth quarter of the current iscal year and beyond.
Additionally, McNeil RECs are still eligible for other New England REC markets, including Vermont,
albeit with lower REC values.

Connecticut's action to reduce its renewable portfolio standard due to affordability challenges is
concerning from a climate perspective, especially considering the recent changes to federal
incentives for renewable energy. BED is actively engaged in scenario and inancial contingency
planning related to the uncertainty created by the new Connecticut law.


 6
The Department anticipates that at the August Transportation, Utilities & Energy Committee
meeting the SYNAPSE team will be ready to present modeling of energy ef iciency costs and on-site
electri ication for three building types using anonymized, real-world data from Burlington.

The Department has been using a mobile battery and its Defeat the Peak initiative to reduce peak
demand this summer, with a successful peak event in June. Ita Meno, the 2025 Jim Reardon Award
winner, selected the Richard Kemp Center as this year’s irst Defeat the Peak partner. BED will
continue to use and test the battery through September. The battery has a nominal output of 1.2
megawatts and can provide up to 240 kW in an hour. BED is reviewing updated bids from its RFP for
a larger 5-megawatt battery.

Recent federal legislation poses signi icant challenges to climate action and strategic electri ication
in Burlington, especially the removal of incentives for solar and wind energy, while fossil fuel
incentives persist. This could limit renewable energy access in New England, particularly with the
administration’s efforts to shut down offshore wind projects and the negative impact of tariff
discussions on Vermont’s relationship with Canada. The Net Zero Roadmap emphasizes the thermal
and transportation sectors, but the recent end of various incentive programs, including EV and heat
pump incentives—means that BED will be the only source of inancial support for Burlington
customers, particularly for EVs. The Department cannot ill this gap, but is evaluating what it can do
to support customers doing this period to make EVs more affordable.

Regarding the 2025 rate case, there is a possibility that FY26 rates may be reduced from the
proposed 4.5% to approximately 4.3% to adjust for one-time consulting fees that were
inadvertently included in the 2024 rate case, which could be bene icial to customers. BED is
engaged in process with the Department and PUC regarding both rate cases.

Lastly, the recent federal legislation did not eliminate the funding source for BED’s $4.85 million
Charging & Fueling Infrastructure grant. The Department has engaged with the Vermont Attorney
General's Of ice and other grantees to discuss potential legal actions to release these funds. Without
securing this funding, EV charging investments will continue, albeit at a limited scale.

2025–2026 Strategic Direction
General Manager Springer introduced the 2025-2026 Strategic Direction, stating that this year’s
draft re lects an updated yet stable strategic planning process. BED aims to create a concise, one-
page strategic document re lecting the contributions of all organization members, encouraging
input from the entire team for potential updates. Many of the updates this year have been suggested
by the sustainability and equity team.

The community engagement section includes new language regarding capacity-building and energy
literacy. There is also new language about collaboration with frontline communities to ensure
equitable access to services, leveraging partnerships to extend outreach beyond traditional
methods.

There is proposed new language calling for the renewal of the Vermont Energy Ef iciency
Modernization Act which allows for effective use of ef iciency funds to reduce fossil fuel use, which

 7
provides an opportunity to support improved incentives for EVs and heat pumps that may help
address the loss of federal incentives.

Another proposed update expands district energy systems to include multiple energy sources, such
as networked geothermal systems. The objective regarding charging infrastructure has been revised
to emphasize prioritizing under-resourced areas and obtaining community feedback for charger
placements.

Finally, there are proposed edits in the budget section regarding focusing on affordability and
support for vulnerable communities.

Commissioner Vota asked what role the Commission plays in this document. General Manager
Springer responded that the Commission does not have a formal role, but that the Department
views the Strategic Direction as a communication tool to articulate its plans and goals and
welcomes the Commission’s feedback.

Commissioner Hobbs made a motion to adopt the 2025–2026 Strategic Direction as presented.
Commissioner Whitaker seconded the motion. Vote: 5 ayes 0 nays.

Sheffield Wind Contract Extension
James Gibbons provided an overview of BED’s existing renewable energy contracts. Mr. Gibbons
explained that three agreements will expire relatively soon: the Firstlight hydro contract on
December 31, 2025, the Shef ield/Vermont Wind contract in October 2026, and the Hancock, ME
Wind contract in December 2026. The Firstlight contract provides 35% of the energy output from a
hydro plant in Connecticut along with the associated RECs, the Shef ield contract provides 40% of
the plant’s output , and the Hancock contract provides 26% of the plant’s output.

Each contract provides approximately 30 GWh of energy to BED per year, and together account for
approximately 30% of the BED’s energy supply. BED is actively exploring options for contract
renewals and replacements, including negotiating terms of a potential contract extension with
Shef ield, which has provided favorable pricing and responsiveness to-date. The Department
proposed that the Commission delegate authority to the General Manager to negotiate a contract
extension with Shef ield for up to ive years, provided that the contract rate is at or below current
levels. This proposal would enable the Department to act quickly to execute a renewal, as City
Council approval is not required for contracts less than 5 years in duration.

Commissioner Vota inquired about current energy market prices and trends. General Manager
Springer responded that the head of ISO-New England recently advised that utilities should expect
increasing energy contract prices across-the-board. The Department also gains value from being a
100% renewable energy provider.

The Department anticipates bringing replacement proposals for the First Light and Hancock
contracts to the Commission in the coming months.

Commissioner Moody made a motion that delegates the Burlington Electric Department General
 8
Manager the discretional authority to negotiate and enter into an extension of the Sheffield Wind
contract expiring 10/18/2026 for an additional term of up to five (5) years, provided that the
extension price is at or below the current price and other contract conditions are appropriate.
Commissioner Vota seconded the motion. Vote: 4 ayes 0 nays. (Commissioner Whitaker was absent
for the vote)

Commissioners’ Check-In
The Commission thanked Commissioner Michelle Hobbs for her time of service and expressed well
wishes in future endeavors.

Adjourn
Commissioner Hobbs made a motion to adjourn; the motion was seconded by Commissioner
Moody; Commission vote; 4 ayes 0 nays.

The meeting of the Burlington Electric Commission adjourned at 6:28p.m.

Microsoft Teams transcript used to create minutes drafted by Elena Alexander, Board Clerk, and edited
by Emily Stebbins-Wheelock, CFO and Manager of Strategy & Innovation.

 Attest: _______________________________________________
 Elena Alexander, Board Clerk




 9
 112 State Street TTY/TDD (VT: 800-253-0191)
 4th Floor FAX: 802-828-3351
 Montpelier, VT 05620-2701 E-mail: puc.clerk@vermont.gov
 TEL: 802-828-2358 Internet: www.puc.vermont.gov


 State of Vermont
 Public Utility Commission


 July 31, 2025
Kerrick Johnson, Commissioner
Department of Public Service
112 State Street
Montpelier, VT 05620

Dear Commissioner Johnson:

The Department of Public Service (“Department”) recently stated in a Commission case that the
City of Burlington Electric Department (“BED”) “has exhibited a concerning pattern of
regulatory errors, inconsistencies, and shortfalls in recent years” and that stronger regulatory
oversight is necessary to secure improved performance by BED in the context of its energy
efficiency utility program.1 In a July 2 Seven Days article regarding BED’s failure to properly
document renewable energy credits from the McNeil Generating Station, you stated, “Prudence
would dictate, in order to protect ratepayers, you look at the outward signs of effective
management.” 2

The Vermont Public Utility Commission (“Commission”) has observed this pattern of errors,
inconsistencies, and shortfalls by BED both in its capacity as an energy efficiency utility and as a
distribution utility. 3 We identify the following examples in both current and past case. 4

 In Case No. 23-1985-INV, regarding 2024 energy efficiency charge rates, BED’s initial
 proposal was based on budgets larger than those approved by the Commission. 5
 Although this was corrected before a decision was issued, this lack of precision had the
 potential to cause BED ratepayers to overpay for EEC-funded activities.

 In Case No. 22-3947-TF, BED filed a revised net-metering tariff to correct an error
 affecting 206 customers and amounting to $26,275 in under-compensation.



1
  Case No. 25-0231-INV, Department Comments of 4/25/25.
2
  Kevin McCallum, An Error Cost Burlington Electric $1 Million, SEVEN DAYS, July 2, 2025,
https://www.sevendaysvt.com/news/an-error-cost-burlington-electric-1-million-43900313.
3
  We opened this case to ensure transparency of this dialogue. This is not a Commission investigation.
4
  We note that Chair McNamara is recused from some of the cases identified below. See Chair McNamara’s
memorandum regarding conflicts and recusal (2/9/24), available at https://puc.vermont.gov/document/chair-
mcnamaras-memorandum-regarding-conflicts-and-recusal. However, this case does not involve making new
determinations regarding the merits of these past cases.
5
  Case No. 23-1985-INV, BED Revised EEC filing, 11/3/23.


 VERMONT
 In Case No. 24-1832-INV, regarding energy efficiency charge rates for 2025, BED
 identified a significant negative balance in its EEU fund. The negative balance is likely
 the result of years of compounded errors in BED’s energy efficiency charge calculations.
 The Commission opened Case No. 25-0231-INV to investigate the negative fund balance.

 BED did not report output and fuel type for the McNeil Generating Station for the third
 quarter of 2024 in the NEPOOL GIS system. As a result, BED lost approximately
 $951,000, while Green Mountain Power Corporation lost $600,000 and the Vermont
 Public Power Supply Authority lost $260,000.6

 In Case No. 21-2701-INV, regarding 2022 energy efficiency charge rates, the
 Commission found that the manner in which BED had pursued its proposal was
 unacceptable because BED was aware that its proposal was inconsistent with a
 Commission Order yet made no mention of the inconsistency in its initial filing. The
 Commission noted that “the regulatory process is harmed when an entity subject to our
 jurisdiction does not act in a manner consistent with our decisions, particularly where
 such an entity acts as though it can make unilateral decisions that are inconsistent with a
 Commission order.” The Commission stated that, going forward, it expected “marked
 improvement in BED’s regulatory diligence.”

 On March 28, 2022, the Commission issued an order regarding its overall performance
 assessment of BED as an energy efficiency utility.7 The Commission found
 inconsistencies in BED’s regulatory engagement. In its discussion, the Commission
 references Case No. 19-3272-PET, in which the Commission determined that BED had
 made multiple filings “that were late, had internal inconsistencies, were missing
 information, or included other mistakes.” 8 BED was directed to develop “robust
 processes for the internal review of documents before they are filed with the
 Commission, compliance checks to ensure timely response to Commission orders, and
 quality controls to verify that filings are made in the appropriate case(s) with all required
 materials.” 9 BED was directed to put these processes into place before the
 commencement of the next demand resources plan proceeding. The Commission stated
 that it is important for BED’s filings to be timely, accurate, and complete.10

 In Case No. 24-0598-PET, BED petitioned the Commission to reimburse its distribution
 utility operating accounts for expenditures that were incurred for the District Energy
 System (“DES”) in calendar year 2023. The Commission denied the petition because
 BED should have requested Commission approval of the expenditures in advance, and


6
  https://www.sevendaysvt.com/news/an-error-cost-burlington-electric-1-million-43900313
7
  Petition of the Department of Public Service, pursuant to 30 V.S.A. § 209(d)(2), requesting a proceeding to
conduct Energy Efficiency Utility overall performance assessments and consideration of re-issuance of EEU order
of appointments to provide services, Case No. 21-1500-PET, Order of 3/28/22.
8
  Id. at 15.
9
  Id. at 16.
10
 Id. at 18 (“BED has failed to meet several QPIs and MPRs over the past two performance periods. In the context
of BED’s organization qualifications, the Department seeks to see more evidence from BED that it is recognizing
these shortfalls in a timely manner and managing the EEU's resources to address the shortfalls earlier in each
performance cycle. It is incumbent on BED to continually assess performance and to bring issues to the Department
and the Commission, as appropriate, as soon as the issues reach a reasonable level of concern.”).
 because the petition was ultimately an untimely effort to reconsider a prior Commission
 denial of a similar request.

 In Case No. 24-1848-TF, BED asked the Commission to reopen its approval of BED’s
 2024 rate case decision due to errors in BED’s cost of service. BED stated that its cost of
 service unintentionally included $100,460.31 of expenses associated with the DES and
 did not disclose this information in a discovery response. As a result, the Department’s
 testimony and the Commission’s order are based on erroneous information provided by
 BED. 11

 In Case No. 25-1010-INV, the Commission is investigating BED’s expenditure of
 approximately $2 million of energy efficiency utility and ratepayer funds on the
 development of a district energy system (“DES”) in the 2021-2023 performance period.
 We will examine “the source(s) of funds for DES support spending, and whether BED
 had proper regulatory approval for these expenditures.” 12

 In Case No. 24A-1346, BED’s 2023 EEU Annual Report, BED acknowledged
 overspending its residential-sector resource-acquisition budget for the 2021-2023
 performance period by 33% as a result of invoicing errors. In BED’s response to the
 hearing officer’s information request, BED stated, “In hindsight, however, BED should
 have been more proactive and informed the Commission of these issues sooner than the
 2023 EEU Annual Report filing. BED will strive to provide more timely notices in the
 future.”13

 Act 151 of 2022 provides that an electric energy efficiency utility may use a portion of its
 approved resource-acquisition budget for specified thermal and transportation efficiency
 programs if certain criteria are met.14 In Case No. 22-1473-PET, BED was directed to
 make a compliance detailing its Act 151 activities because BED’s implementation of
 certain parts of its Act 151 programs was inconsistent with representations that BED had
 made to the Commission.15

To date, and as evidenced by the above recent examples, the Commission has taken up BED’s
regulatory errors, inconsistencies, and shortfalls on a case-by-case basis, addressing the facts of a
particular circumstance and the policy or legal consequences. However, the pattern of conduct
that this list illustrates may necessitate a more holistic approach. The Commission is concerned
that BED has not implemented adequate quality-control measures or identified the root cause of
these issues. Therefore, we seek the Department’s recommendation on an approach to facilitate
effective regulatory engagement. We ask that the Department file a response in the next month
in ePUC in this case. We appreciate the Department’s consideration of this request.



11
 Case No. 24-1848-TF, BED Motion to Alter or Amend, 5/30/25.
12
 Case No. 25-1010-INV, Order of 5/20/25.
13
 Case No. 24A-1346, letter of 8/13/24.
14
 Vermont Public Act No. 151 (2022 Vt. Adj. Sess.).
15
 Case No. 22-1473-PET, Order of 7/8/24 (“BED’s filings in this case are problematic. We conclude that BED’s
description of the Act 151 programs that it has implemented continues to be inconsistent with the program plans that
BED provided in its DRP and in its re-allocation request.”).
This letter is also being issued in multiple open Commission proceedings that concern BED.
Vermont’s other distribution utilities and energy efficiency utilities and parties to the above cases
have been added to receive notice of this letter.




 Sincerely,




 Edward McNamara Margaret Cheney J. Riley Allen
 Chair Commissioner Commissioner
PUC Case No. 25-1584-INV - SERVICE LIST

John Abbott (for Vermont Public
Vermont Public Power Supply Authority Power Supply Authority)
PO Box 126
5195 Waterbury-Stowe Road
Waterbury Center, VT 05677
jabbott@vppsa.com

Erik Bailey (for Village of Johnson
Village of Johnson Water & Light Department Water & Light
PO Box 603 Department)
Johnson, VT 05656
ebailey@townofjohnson.com

Mary Bouchard (for Vermont Gas
Vermont Gas Systems, Inc. Systems, Inc.)
85 Swift Street
South Burlington, VT 05403
mbouchard@vermontgas.com

Sarah Braese (for Town of Hardwick
Town of Hardwick Electric Department Electric Department)
PO Box 516
123 N. Main Street
Hardwick, VT 05843
sbraese@hardwickelectric.com

Brian Callnan (for Washington Electric
Washington Electric Cooperative Cooperative Inc.)
PO Box 8
East Montpelier, VT 05651
brian.callnan@wec.coop

Andrea Cohen (for Vermont Electric
Vermont Electric Cooperative, Inc. Cooperative Inc.)
42 Wescom Road
Johnson, VT 05656
acohen@vermontelectric.coop

Conservation Law Foundation
15 East State Street, Suite 4
Montpelier, VT 05602
Jeffrey Cram (for GF Power LLC)
GF Power LLC
1000 River Street
Essex Junction, VT 05452
jeffrey.cram@globalfoundries.com

Crystal Currier (for Barton Village Inc.
Vermont Public Power Supply Authority Electric Department)
PO Box 126
5195 Waterbury-Stowe Rd
Waterbury Center, VT 05677
ccurrier@vppsa.com

Sierra Dubie (for Town of Hardwick
Town of Hardwick Electric Department Electric Department)
PO Box 516
Hardwick, VT 05843
sdubie@hardwickelectric.com

William F. Ellis (for City of Burlington
McNeil, Leddy & Sheahan Electric Department)
271 South Union Street
Burlington, VT 05401
wellis@mcneilvt.com

Elijah D Emerson, Esq. (for Village of Johnson
Primmer Piper Eggleston & Cramer PC Water & Light
P.O. Box 349 Department) (for Village
Littleton, NH 03561 of Enosburg Falls Water
eemerson@primmer.com & Light Department
 Inc.) (for Town of
 Hardwick Electric
 Department) (for Town
 of Northfield Electric
 Department)
Marla Emery (for Village of Johnson
Village of Johnson Water & Light Department Water & Light
P.O. Box 603 Department)
Johnson, VT 05656
memery@townofjohnson.com

Beth Essary (for Town of Hardwick
Town of Hardwick Electric Department Electric Department)
PO Box 516
Hardwick, VT 05843
bessary@hardwickelectric.com
Brian Evans-Mongeon (for Village of Hyde
Village of Hyde Park Electric Department Park Electric
P.O. Box 400 Department)
Hyde Park, VT 05655
gm@villageofhydepark.com

Steven R Farman (for Vermont Public
Vermont Public Power Supply Authority Power Supply Authority)
5195 Waterbury-Stowe rd
Waterbury Center, VT 05766
sfarman@vppsa.com

Karen Field (for Town of Hardwick
Town of Hardwick Electric Department Electric Department)
PO Box 516
Hardwick, VT 05843
kfield@hardwickelectric.com

Edward B. French, Jr., Esq. (for Village of Hyde
Stackpole & French Park Electric
PO Box 819 Department) (for Town
Stowe, VT 05672-0819 of Stowe Electric
efrench@stackpolefrench.com Department)

James Gibbons (for City of Burlington
City of Burlington Electric Department Electric Department)
585 Pine Street
Burlington, VT 05401
jgibbons@burlingtonelectric.com

Grace Grundhauser (for Green Mountain
Green Mountain Power Corporation Power Corporation)
163 Acorn Lane
Colchester, VT 05446
grace.grundhauser@greenmountainpower.com

Kerrick Johnson (for Vermont
Vermont Department of Public Service Department of Public
112 State Street Service)
Montpelier, VT 05620-2601
Kerrick.Johnson@vermont.gov
Scott Johnstone (for Village of
Village of Morrisville Water & Light Department Morrisville Water &
857 Elmore Street Light Department)
Morrisville, VT 05661
sjohnstone@mwlvt.com

Michael Lazorchak (for Town of Stowe
Town of Stowe Electric Department Electric Department)
PO Box 190
Stowe, VT 05672
mlazorchak@stoweelectric.com

Mari McClure (for Green Mountain
Green Mountain Power Corporation Power Corporation)
163 Acorn Lane
Colchester, VT 05446
ceo@greenmountainpower.com

Abbey Miller (for Village of Enosburg
Village of Enosburg Falls Water & Light Department Falls Water & Light
42 Village Drive Department Inc.)
Enosburg Falls, VT 05450
amiller@enosburg.net

Liz Miller (for Green Mountain
Green Mountain Power Power Corporation)
163 Acorn Lane
Colchester, VT 05446
Liz.Miller@greenmountainpower.com

John Morley (for Village of Orleans
Village of Orleans Electric Department Electric Department)
Municipal Building
One Memorial Square
Orleans, VT 05860
jmorley@villageoforleansvt.org

John Morley (for Barton Village Inc.
Village of Orleans Electric Department Electric Department)
Municipal Building
One Memorial Square
Orleans, VT 05860
jmorley@villageoforleansvt.org
Ken Nolan (for Vermont Public
Vermont Public Power Supply Authority Power Supply Authority)
P.O. Box 126
Waterbury Center, VT 05677
knolan@vppsa.com

Lynn Paradis (for Swanton Village,
Village of Swanton Inc. Electric Department)
Village of Swanton 120 First St.
Swanton, VT 05488
lparadis@swanton.net

Jill Pfenning (for Vermont Gas
Vermont Gas Systems, Inc. Systems, Inc.)
85 Swift Street
South Burlington, VT 05403
jpfenning@vermontgas.com

Louis Porter (for Washington Electric
Washington Electric Cooperative Cooperative Inc.)
PO Box 8
East Montpelier, VT 05651
louis.porter@wec.coop

Jackie Pratt (for Town of Stowe
Town of Stowe Electric Department Electric Department)
PO Box 190
Stowe, VT 05672
jpratt@stoweelectric.com

James Porter, Director of Public Advocacy (for Vermont
Vermont Department of Public Service Department of Public
112 State Street Service)
Montpelier, VT 05620-2601
DPS-PA@vermont.gov

Christopher Recchia (for Village of Ludlow
Village of Ludlow Electric Light Department Electric Light
9 Pond Street Department)
Ludlow, VT 05149
crecchia@ludlowelectric.com
Renewable Energy Vermont
P.O. Box 1036
Montpelier, VT 05601

Jeffrey Schulz (for Town of Northfield
Town of Northfield Electric Department Electric Department)
51 South Main Street
Northfield, VT 05663
jschulz@northfield.vt.us

Thea Schwartz (for Vermont Electric
Vermont Electric Cooperative, Inc. Cooperative Inc.)
42 Wescom Road
Johnson, VT 05656
tschwartz@vermontelectric.coop

S Mark Sciarrotta (for Vermont Transco
Vermont Electric Power Company, Inc. LLC)
366 Pinnacle Ridge Road
Rutland, VT 05701
msciarrotta@velco.com

S Mark Sciarrotta (for Vermont Electric
Vermont Electric Power Company, Inc. Power Company, Inc.)
366 Pinnacle Ridge Road
Rutland, VT 05701
msciarrotta@velco.com

William (Bill) Sheets (for Swanton Village,
Swanton Village, Inc. Electric Department Inc. Electric Department)
120 First Street
Swanton, VT 05488
wsheets@swanton.net

Ronald A. Shems, Esq. (for Washington Electric
Tarrant, Gillies & Shems, LLP Cooperative Inc.)
P.O. Box 1440
Montpelier, VT 05601-1440
ron@tarrantgillies.com

Darren Springer (for City of Burlington
City of Burlington Electric Department Electric Department)
585 Pine Street
Burlington, VT 05401
dspringer@burlingtonelectric.com
Emily Stebbins-Wheelock (for City of Burlington
City of Burlington Electric Department Electric Department)
585 Pine Street
Burlington, VT 05401
estebbins-wheelock@burlingtonelectric.com

Rebecca Towne (for Vermont Electric
Vermont Electric Cooperative, Inc. Cooperative Inc.)
42 Wescom Road
Johnson, VT 05656
rtowne@vermontelectric.coop

Joseph Vandette, Jr. (for Washington Electric
Washington Electric Cooperative Cooperative Inc.)
P.O. Box 8
East Montpelier, VT 05651
jj.vandette@wec.coop

James Weber (for Village of
Village of Jacksonville Electric Company Jacksonville Electric
manager@jacksonvilleelectric.net Company)

Erica Welton (for Town of Lyndon
Town of Lyndon Electric Department Electric Department)
PO BOX 119
Lyndonville, VT 05851
ewelton@lyndonelectric.com

David C. Westman (for Efficiency Vermont
Efficiency Vermont - Vermont Energy Investment Corporation - Vermont Energy
20 Winooski Falls Way Investment Corporation)
5th Floor
Winooski, VT 05404
dwestman@veic.org
State of Vermont
Department of Public Service [phone] 802-828-2811
112 State Street [fax] 802-828-2342
Montpelier, VT 05620-2601 [tdd] 800-734-8390
http://public service.vermont.gov

 August 29, 2025

Edward McNamara, Chair
Margaret Cheney, Commissioner
J. Riley Allen, Commissioner
Vermont Public Utility Commission
112 State Street
Montpelier, VT 05620

RE: Burlington Electric Department

Dear Chair McNamara, Commissioner Cheney, and Commissioner Allen:

Thank you for your letter dated July 31, 2025, in which the Commission notes the Department’s
stated concerns regarding Burlington Electric Department’s (“BED”) troubling pattern of
“regulatory errors, inconsistencies, and shortfalls.” The letter enumerates a number, but not all of
the examples that comprise BED’s regulatory deficiencies, both as an energy efficiency utility and
as a distribution utility, that led to the Department’s filings and public statements. The
Commission’s letter concludes with a request for the Department’s recommendation “on an
approach to facilitate effective regulatory engagement” on the part of BED. As described below,
the Department recommends a focused management audit of BED’s key business practices.

More specifically, the Department recommends that the Commission open an investigation into
BED’s internal quality controls. As part of this investigation, the Department would engage a firm
with the requisite expertise to conduct a business process audit with a specific focus on internal
quality controls. It is the Department's expectation that BED would fully cooperate and collaborate
with the selected auditing firm. While BED’s internal practices have not yet been assessed, an
audit could reveal the need to implement additional quality controls. Examples of such controls
include:

 x Regulatory Quality Controls – Ensuring processes to maintain compliance with state and
 federal regulations.
 o Compliance Monitoring that would include multiple levels of data review,
 supporting document verification, and independent calculations to ensure filing
 accuracy.
 o Reporting Controls that would include data validation and supervisor review.
 o Record Keeping that would include transaction logs and create audit trails for all
 system changes, including user identification, timestamps, and approval
 documentation.

 1
 x Operational Quality Controls - Clear documentation of policies and procedures to
 understand how decisions are made and evaluate the effectiveness of internal operations
 with a goal of ensuring consistency, compliance, and accountability.
 x Financial Quality Controls - Promote fiscal discipline, prevent waste, and ensure that all
 public funds are spent efficiently and effectively (e.g., Revenue Management, Expenditure
 Controls).
 x Cross-Functional Quality Controls
 o Training and Competency assessments for all employees. Verify employee
 qualifications before authorizing specific work activities. Ensure adequate staffing
 levels and provide ongoing training, on-the-job performance monitoring, and
 feedback mechanisms. Ensure succession planning for critical positions.
 o Continuous Improvement processes that identify the root cause or systemic issue
 requiring corrective action. Implement performance metrics over time to identify
 degrading performance before it becomes problematic. This is a particularly
 pertinent discipline lacking at BED.

Again, this list is illustrative. BED’s management performance issues regarding energy efficiency
and power supply-related functions are well documented. What is not clear to the Department,
however, is whether or how far these issues extend and how those issues might further
disadvantage their customers. Our recommendation is that the audit focus on the four areas
described above while taking a broader look at the overall management structure and culture.

Having said that, as documented in its Service Quality and Reliability Plan (SQRP) metrics, the
Department believes it is important to note that BED delivers reliable service to its customers.
Further, the Department receives very few complaints from BED's customers, and we note that
BED seems to mostly enjoy strong customer support as evidenced by recent bond votes. Most
importantly in this context, we do not believe that BED is intentionally obscuring facts or engaging
in actions for any malicious purposes.

These are some of the reasons why the Department finds their poor performance in the identified
areas so frustrating: they can do better, they know they should, and yet to date they have not. In
fact, in the last two weeks, BED withdrew its Revised Miscellaneous Service Fees Tariff dated
August 4, 2025, due to the Department uncovering multiple formula errors in the supporting
spreadsheets that resulted in incorrect fee calculations. When alerted to these errors by Department
staff, BED responds reasonably well but its continued mistakes and need of remedial help diverts
precious resources from other critical Departmental responsibilities and comes at an as yet
unquantified cost to their customers. Such a state is unsustainable.

The impact of BED’s poor performance doesn’t just affect their own customers and personnel, but
all of Vermont’s electric ratepayers. That is why, in the end, the Department recommends that the
Commission open the investigation as described. We are mindful of the demands on BED
personnel’s time, the Department and Commission’s time, and the possibility of unintended
negative consequences that may accrue from the recommended audit. Yet, it is BED’s own
performance that has brought us to this point.

The Department’s goal in recommending this investigation and audit is to secure effective,
comprehensive and sustained performance by BED to best ensure self-sustained reliable and
affordable service. It is intended as a corrective action that the Department decided upon only after
careful consideration of all other options. The Department would like nothing better than to help
BED quickly secure an end state whereby all aspects of the utility’s operations are effectively
managed.

Thank you for your consideration of these recommendations.

Sincerely,




Kerrick Johnson
Commissioner
To: Burlington Board of Electric Commissioners

From: Darren Springer, General Manager

Date: September 5, 2025

Subject: August 2025 Highlights of Department Activities



General Manager – Darren Springer
 • DPS response 8.29 to PUC 7.31 letter - BED is in receipt of the Department of Public
 Service (DPS) letter to the Public Utility Commission recommending a third-party review of
 BED’s business processes and regulatory work. We acknowledge and take accountability for
 the McNeil REC error from 2024 and the other instances where we have not performed to
 expectation in the regulatory context and are committed to improve our performance. As
 reported previously to the Commission, we’ve taken steps to address these issues including:
 o Establishing a regular quarterly meeting with principals for BED with DPS to
 improve communications opportunities, on top of other regular check-ins during
 the normal course of business;
 o The REC process review and updated business processes (with guidance/input from
 DPS) documented in our memo and appendix presented to the Electric Commission
 at its May 2025 meeting;
 o Undertaking a similar process, currently underway, for our energy efficiency
 programs (again in conjunction with DPS guidance); and
 o As noted later in this report, undertaking a permit process review

 In addition to the above steps, we have recently taken several additional steps including:
 o Posting for two policy & planning positions (one recently vacated and one held
 vacant for budgetary purposes) to bolster staff capacity;
 o Pausing, with one exception (the EV announcement noted below) any incentive
 changes or additional program launches not already planned for an indefinite
 period of time to give our team room to focus on implementation of the important
 existing set of programs and initiatives currently underway; and
 o Holding an intensive weekly internal regulatory review meeting with the GM, two
 Managers, three directors (finance, energy services, and policy & planning), and
 regulatory team members to better coordinate work on dockets, filings, and reports
 in the regulatory space, (on top of other internal regulatory meetings);

 While we’ve taken the steps outlined above, we welcome the third-party review and the
 opportunity to learn more about recommendations and best practices we can implement.
 August 2025 – Department Highlights



 We take our regulatory responsibilities seriously, and we’ll work constructively with our
 regulators on these items. Our customers expect and deserve our best performance in
 regulatory space, and we’ll work as hard as we possibly can to improve and meet
 expectations.
 • R99 Testing – BED will be working with the State in September to test the use of R99 (99%
 renewable diesel) at the Gas Turbine peaker plant. The plant previously ran on oil, and
 currently runs on a B20 mix of 20% biodiesel and 80% oil. BED has been working to convert
 the unit, which runs very infrequently for peak demand needs, to renewable and lower
 carbon energy. R99 is a non-fossil based renewable diesel, and has been highlighted as a
 drop in, far lower greenhouse gas emission replacement for fossil fuel based diesel in states
 like Oregon (https://www.oregon.gov/odot/climate/Documents/Alt_Diesel_InfoSheet-
 ODOTghginventory.pdf) and California (https://ww2.arb.ca.gov/resources/fact-
 sheets/fact-sheet-renewable-diesel-fuel-requirements) and Hawaii
 (https://hidot.hawaii.gov/wp-content/uploads/2025/06/Draft-ESWRP-6.27.25.pdf)..
 • Upcoming EV announcement – BED is working towards an announcement later this
 month to support EV drivers, including income-qualified customers, in the wake of the
 federal legislation which abruptly removes the federal EV tax credit at month-end.
 • McNeil Studies - K2Q provided an update to TEUC at its August meeting about the forestry
 study, and we anticipate Velerity will provide an update on the efficiency/emissions
 reduction study at the September TEUC meeting.
 • Benchmarking/BERO Work - BED was joined by Synapse and Building Electrification
 Institute for a set of presentations at TEUC in August on energy benchmarking and BERO,
 including analysis of cost-benefit of certain approaches using real buildings in Burlington as
 examples. We look forward to engaging further with TEUC on possible policy development
 and to seeing the energy benchmarking data as it becomes available in Spring 2026.
 • 4th Annual Net Zero Energy Festival – We had to move the Festival due to rain from
 Saturday September 6th, to Sunday September 7th, but appreciate all the work our team
 members put into planning the event and coordinating logistics of the date change.

Center for Innovation – Emily Stebbins-Wheelock
• Prepared to implement approved FY25 5.5% rate increase, tariff adjustment for pending FY26
 4.5% rate increase, and Water Resources renter assistance program on September 1
• PUC filings in multiple dockets:
 o District Energy System spending investigation
 o Statewide energy burden proceeding
 o Updated plans for use of surplus TEPF Funds
 o Miscellaneous Service Fees – withdrew filing; will update for Commission and Council
 approval before refiling
 o Moduly battery pilot program
 o Annual RES compliance report for 2024
 o Commercial Demand Response pilot rate
 o EAP rate expansion
 o Demand Resource Plan for 2027-2029 performance period



 Page 2
 August 2025 – Department Highlights



• Completed DEED grant-funded video on heating and cooling and started transportation video
 script.
• Supported Church Street’s weekly passagiata with Ford Lightning F150 and e-bike display.
 Included partner agency Local Motion. Tabled at Family Room and Fletcher Free Library.

Center for Safety and Risk Management – Paul Alexander
Safety
 • Safety completed the annual testing & recertification of Operation Personnel insulated hot
 sticks, personal grounds and other assorted protective rubber goods. A safety presentation
 was completed on ergonomics and back safety.
 • A Lock Out Tag Out (LOTO) kit was procured for the Winooski One Hydro. This will allow
 technicians to work safely on equipment, which will include a job leader lock that will be first
 on, last off.
 • The Center for Safety met with the City committee to end homelessness. A meeting has been
 arranged to discuss the removal of an encampment that has grown on the private landowners
 property adjacent to 585 Pine Street, North Lot.
Environmental
• The Environmental Team worked with the Generation Team to complete the 2nd quarter 2025
 GIS Submission into NEPOOL which is due October 10th. Verification of the data will be
 completed by Policy & Planning.
• The Environmental Team is the lead of a State of VT approved test run of R99 renewable diesel
 at the Gas Turbine on September 17th. Testing protocols have been submitted to the State for
 their approval.
• At the request of the General Manager the Environmental Team assembled a document
 covering all environmental permits, reports, testing, sampling events, and requirements plus
 their expiration dates and filing due dates.
Risk Management
• Working with the Burlington Police Department, City Attorney’ office and the “Safe Outdoor
 Sites” committee to address “tenters/trespassers on our property and/or adjacent sites.
• Awarded full judgment (include filing fees) at the 8/1 VT Superior Court hearing via our Small
 Claims court case which involves paying back BED funds that were used in an apprentice
 program as outlined in Section 8.6 of our Union (IBEW) contract.
• Received NPCC’s summary letter re: Self-certification Audit on regulatory standards PRC-005
 and PRC-006 (Protection System and Underfrequency Load shedding. No further requests for
 information, and BED passed without any findings.
• Finished reviewing/editing the COB’s Standard Contract Conditions language, in particular,
 Attachment C-1 (Insurance & Indemnification) to be used as a template in future BED
 contracts/agreements, as well as our minimum insurance level requirements.
Purchasing/General Services
• An all-Electric Bucket Proposal was reviewed, and truck will be purchased in FY27
• A request-for-proposal (RFP) for a Bucket Truck charger (Level 2/Level 3) was written up and
 put out to bid
• Our Gas Turbine (GT) Dispatch area has had reflective tint put on the windows to help cool the
 area from the greenhouse effect of the sun




 Page 3
 August 2025 – Department Highlights



Center for Operations & Reliability – Munir Kasti
Engineering, Grid Services & Operations
• Issued work order for relocation of primary underground along St. Paul Street near City Place.
• Completed reconductoring work on South Cove Road, Dunder Road, and Revere Court.
• Completed Phase 1 of the City Place street lighting project on Bank Street.
• Two apprentice line workers attended their third round of the second-year apprenticeship
 training at the New England Public Power Association headquarters in Massachusetts.

SAIFI & CAIDI Outage Metrics:
BED’s distribution system experienced 13 outages in August 2025 (2 unscheduled and 11
scheduled). BED’s SAIFI for the Month of August was 0 interruptions per customer and CAIDI was
2.13 hours per interruption. BED's YTD SAIFI is 0.21 interruptions per customer and YTD CAIDI is
1.07 hours per interruption. BED experienced a high CAIDI value for the month of August due to
multiple pole transfers as a part of the South Cove Road rebuild project.

The following figure shows BED’s historical YTD SAIFI and CAIDI:




The following figure shows BED’s historical August SAIFI and CAIDI:




 Page 4
 August 2025 – Department Highlights



The following figure shows BED’s historical Unplanned Outages:




Generation
McNeil Generating Station
Month Generation: 29,433 MWh
YTD Generation: 156,718 MWh
Month Capacity Factor: 79.12%
Month Availability: 87.0%
Hours of Operation: 651.28 hours

A McNeil Yard Worker position was filled on August 25, and the new hire is in the process of
training to be on shift.

Winooski One Hydroelectric Station
Monthly Generation: 0 MWH (0% of average)
YTD Generation: 12,203.34 MWh (57.62 % of average)
Month Capacity Factor: 0%
Annual Capacity Factor: 28.28%
Month Availability: 0% due to lack of water flow.

Routine maintenance, preventative maintenance, and process improvement projects were
conducted at Winooski One in August. The process of preparing for turbine overhauls in September
has continued. There has been a significant lack of water flow in August.

Burlington Gas Turbine
Month Generation: 33.6 MWh
YTD Generation: 386.8 MWh
Month Capacity Factor: 0.235%
Month Availability: 99.1%
Hours of Operation Unit A: 3.2 hours
Hours of Operation Unit B: 3.2 hours

The Gas Turbine was successfully dispatched one time in August and had a monthly test run for a



 Page 5
 August 2025 – Department Highlights



total of 33.6 MWh.

Solar
Solar (Pine Street 107 kW)
Month Generation: 14 MWh (+16% from previous year)
YTD Generation: 79 MWh
Month Capacity Factor: 17.9%
Month Availability: 100%

Solar (Airport 499 kW)
Month Generation: 79 MWh (+20% from previous year)
YTD Generation: 405 MWh
Month Capacity Factor: 21.3%
Month Availability: 100%

Center for Customer Care & Energy Services – Mike Kanarick
Energy Services
 UVM & UVMMC
• ES is working with staff and contractors on several ongoing projects.
• Working with UVM on a partial HVAC replacement project in the Waterman building. The
 existing constant-volume AHU and air-cooled chiller that serve the basement offices in building
 are being replaced.
• Working with UVMMC on a main parking garage ventilation fan replacement project that
 includes two 150-HP blower fans that need to run 24/7 for safety purposes.
Other Services
• Continued Decline in New Development and Energy Efficiency Activity
 • As previously reported, over the past several months few new construction zoning
 applications have been submitted to DPI, indicating a decline in near term new
 development. High lending costs and construction costs continue to slow this market.
 • ES also continues to see a slowdown in EEU and Tier 3 activity with smaller and medium-
 sized commercial customers. As report widely in the media, these customers continue to
 face economic headwinds where discretionary energy efficiency, and beneficial
 electrification improvements, are understandably not a priority. BED and VGS continue to
 work with the Burlington 2030 District and CEDO/Business and Workforce Development
 (BWD) to get the word out about our services and that we are here to help.
• ES continues to:
 • Work on new construction projects such as the conversion of the office space at 1 Lawson
 Lane to 33 apartments, CHT’s 70-unit building at Cambrian Rise, Burlington High School
 with a geothermal heating and cooling system, the former YMCA conversion to apartments,
 Burlington Square (aka City Place), CHT’s Post Apartments on S. Winooski Ave and Mater
 Christi’s Early Education Center.
 • Support the customer care team with a number of residential and commercial customer
 high bill concerns.
 • Partner with the VGS ES team on a number of residential weatherization and heat pump
 projects and commercial retrofit projects.




 Page 6
 August 2025 – Department Highlights



Electric Vehicles & Charging Stations
• The EVSE (ChargePoint, Flo & AmpUp) dispensed a total of 44.4MWh and supported 2,254
 sessions.
• Approximately 39% (or 17.4 MWh) of the energy sold from the entire network is attributed to
 the Pine St., Marketplace Garage, and Pease Lot DCFC’s. The Pease Lot DCFC dispensed the most
 energy.
• EV and PHEV rebates to date – 1,098 (of this 249 LMI rebates to date)
• Customers currently participating in the new EV Charging Rate- 399
• Single-family & multifamily home EV charging stations rebates to date – 366
Heat Pump Installations to Date
Total Heat Pump Technology Installations including Multi-Family New Construction Projects &
Installations in existing buildings since the September 2019 NZEC announcement – 3,057
installations (of this 212 LMI rebates to date)
Customer Care
• Call Answer Time (75% in 20 seconds): August 2025 78.4%, July 77.5%, June 69.4%, May
 61.4%, April 86.1%, March 90.3%. August 2024 83%, July 76.5%, June 74.6%, May 69.2%, April
 85.8%, March 87.7%.
• August 2025 Stats: please see dashboard for additional metrics categories.




 Page 7
 August 2025 – Department Highlights




 Complaints to DPS about Customer Care Team
 6 5




 # of Complaints
 5
 4
 3
 2 1
 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
 0




 Calendar Year



Communications and Marketing
• DATE CHANGE (due to weather): 4th Annual Net Zero Energy Festival – A Supercharged Day of
  Family Fun: this SUNDAY, SEPTEMBER 7, from 10:00am to 2:00pm at BED during Art Hop
  weekend. Activities for people of all ages focused on reducing fossil fuel use and electrifying
  everything, including: renewably-powered food trucks; games and activities for children; Star 92.9’s
  radio personalities Mike & Mary; raffles; E-bike test rides; EV showcase; mobile bike repair unit; bike
  parking; BED partners providing heat pump, solar, and electric lawn care products; carshare and
  biking partners; BED energy experts; and more.
• Art Hop sponsorship: BED will sponsor SEABA’s Art Hop, taking place from September 5-7. BED’s
  585 Pine Street building will host the “HOPE” statue and again will be part of “Light Hop,” with
  SEABA installing LED lighting on the building at night.
• Full website visits for August 2025




• Top-performing Facebook & Instagram posts
Passeggiata




 Page 8
 BED 2025-2026
 Strategic Direction Dashboard



 Aug 2025 July 2025 June 2025 May 2025 April 2025 March 2025 February January 2023 Yearly 2022 Yearly 2021 Yearly 2020 Yearly 2019 Yearly
 Target Actuals Actuals Actuals Actuals Actuals Actuals  2025 Actuals 2025 Actuals 2024 Yearly Actual Actual Actual Actual Actual Actual
Engage Customers and Community
Call answer time 75% within 20 seconds 75% 78% 78% 69% 61% 86% 90% 90% 86% avg 81% avg 82% avg 82% avg 82% avg 81%
Delinquent accounts >$500 0 262 276 248 242 246 323 287 251 avg 223 avg 168 avg 188 avg 529 avg 201
Disconnects for non-payment 0 34 22 2 31 153 10 1 1 308 224 12 0 45
Energy Assistance Program Customers (program lifetime) NA 898 887 881 871 869 862 858 852 843 234
Energy Assistance Program Customers (currently enrolled) 300 787 781 776 788 776 776 776 774 770 219
# of residential weatherization completions 10 1 0 0 1 0 0 0 0 7 11 5 5 3 11
Weatherization completions in rental properties 0% 0 0 0 0 0 0 0 3 8 6 0 0 TBD
# or % of homes or SF weatherized TBD TBD TBD TBD TBD TBD TBD TBD 0 TBD TBD TBD TBD 0
# of commercial building with improved thermal envelopes 0 0 1 0 0 0 0 0 5 6 4 5 5 0
Total annual mWh saved via the EE programs (annual goal) 4,032 1,391 1,031 1,003 934 904 877 84 61 1116 2,940 4053 3057
Total residential annual mWh saved via the EE programs (cumulative for year) 724 166 142 128 68 64 51 35 28 333 494 862 917
Total commercial sector annual mWh saved via the EE programs (cumulative for year) 3,308 1,225 889 875 866 840 828 49 33 783 2,447 3191
 2140
% of EEU charge from LMI customers spent on EE services for LMI customers
 $ 297,026 $ 233,861 $ 215,682 $ 204,228 $ 200,971 $ 195,750 $ 186,013 $ 178,052 $ 167,552 $ 155,814 $ 504,942 $ 335,234 TBD TBD TBD
(cumulative for 2024- 2026 3-year EEU performance period)
# of customers enrolled in DtP mailing list TBD 852 844 826 816 NA NA NA NA 812 800 738 689 698 523
# of large customers participating in DtP 12 12 12 12 NA NA NA NA 12 12 11
# of pageviews, overall website-wide 20,567 22,866 21,052 28,406 21,747 19,047 18,341 23,653
# of unique website homepage views 4,181 4,867 4,621 5,046 4,617 4,251 3,804 4,739
Strengthen Reliability
SAIFI (AVG interruptions/customer) (annual target) < 2.1 0.0 0.04 0.003 0.03 0.02 0.01 0.05 0.07 1.63 0.56 1.05 0.17 1.48 1.01
CAIDI (AVG time in hrs to restore service) (annual target) < 1.2 2.13 0.62 1.09 1.16 2.39 1.94 1.72 0.44 0.94 0.67 1.49 0.55 0.75
Distribution System Unplanned Outages (annual target) 82 2 10 6 2 6 4 5 3 69 39 61 44 90 98
McNeil Forced Outages 0 0 1 1 1 1 2 1 0 10 5 14 5 21 TBD
W1H Forced Outages 0 0 0 0 0 0 1 1 0 3 2 6 9 2 TBD
GT Forced Outages 0 0 1 0 1 0 0 0 1 2 9 6 2 3 TBD
Invest in Our People, Processes, and Technology
Avg. # of days to fill positions under recruitment 120 366 311 282 281 217 317 257 232 253 219 100 68 179
# of budgeted positions vacant 0 9 10 11 10 10 9 11 11 avg 12 avg 12 avg 9 avg 9 6 NA
 BED 2025-2026
 Strategic Direction Dashboard



 Aug 2025 July 2025 June 2025 May 2025 April 2025 March 2025 February January 2023 Yearly 2022 Yearly 2021 Yearly 2020 Yearly 2019 Yearly
 Target Actuals Actuals Actuals Actuals Actuals Actuals  2025 Actuals 2025 Actuals 2024 Yearly Actual Actual Actual Actual Actual Actual
Innovate to Reach Net Zero Energy
Tier 3 Program
# of residential heat pump installs 13 20 20 0 10 18 11 31 176 186 255 315 203 10
# of commercial heat pump installs 0 0 0 0 0 0 0 0 5 8 4 4 13 0
# of residential hot water heat pump installs 1 0 3 0 5 1 2 5 28 31 26 14 6 4
# of commercial hot water heat pump installs 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Heat pump rebates 19 22 20 6 10 18 11 31 185 206 271 328 212 0
Heat pump hot water heater rebates 1 0 3 0 5 1 2 5 28 47 18 15 3 0
LMI heat pump rebates 6 2 4 6 0 1 0 0 35 21 43 28 6 4
Heat pump technology installs in rental properties 0 0 0 0 0 0 0 0 3 8 10 14 9 TBD
LMI heat pump hot water heater rebates 0 0 4 0 1 0 0 0 2 6 1 2 0 1
EV rebates - new 10 3 9 16 11 10 6 18 125 103 53 67 14 36
EV rebates - pre-owned 3 1 1 1 3 2 2 1 23 16 18 7 8 2
 See NZE
LMI EV rebates 2 2 2 4 1 4 2 5 50 26 9 11 7 7
 Roadmap
PHEV rebates - new 5 2 3 0 2 4 3 7 44 25 27 41 10 17
 Goals below
PHEV rebates - preowned 1 1 2 3 1 0 0 5 8 6 12 6 5 3
LMI PHEV rebates 1 0 1 0 0 0 0 0 11 5 15 13 6 2
Public EV chargers in BTV (total) 41 ports 41 ports 41 ports 41 ports 41 ports 41 ports 40 ports 40 ports 40 ports 32 ports 30 ports 27 ports 27 ports 14
Public EV charger energy dispensed (kWh) 44,400 40,400 36,700 36,700 39,100 38,500 36,400 40800 355500 244,300 151,360 86,570 35,690 78,000
Home EV charging station rebates 17 6 3 5 13 8 5 18 82 72 70 32 20 12
EV charging rate customers (total) 399 394 389 382 379 364 354 351 347 246 157 40 40 28
Level 2 charger rebates 0 11 0 0 0 0 0 1 22 10 11 10 0 1
Level 1 charger rebates 0 1 0 0 0 0 0 0 0 0 - 0 1 0
E-bike rebates 29 24 36 32 39 22 1 27 169 147 152 88 36 65
E-mower rebates 3 8 31 25 10 1 0 2 109 135 159 154 95 142
E-forklift rebates 0 0 0 0 0 0 0 0 0 0 1 0 0 0
MWE of Tier 3 measures installed 2,434 21,135 4,409 1,040 1,400 1,788 1,139 1,977 26,120 22,374 22,837 23,763 35,112 3,342
% Tier 3 obligation met with program measures 100% 146% 136% 49% 30% 26% 20% 13% 8% 122% 117% 131% 159% 283% 31%
Net Zero Energy Roadmap Goals
# of solar net metering projects installed 0 1 2 0 2 2 1 1 13 32 33 29 24 33
No. of homes receiving NZE Home Roadmaps 0 0 0 0 0 0 0 0 0 - 7 10 7
Residential heat pumps for space heating (no. of homes) 2023: 8615 NA NA NA NA NA NA NA NA 2,320, 18% of goal 1,952 1,749 1,448 1,112 925
Commercial heat pumps for space heating (1000 SF floor space served) 2023: 5397 NA NA NA NA NA NA NA NA 487, 7% of goal 431 411 405 374 374
Residential heat pumps for water heating (no. of homes) 2023: 4365 NA NA NA NA NA NA NA NA 344, 4% of goal 289 243 224 208 203
Commercial heat pumps for water heating (1000 SF floor space served) 2023: 1019 NA NA NA NA NA NA NA NA 6, 0.2% of goal 0 0 0 0 -
EV registrations in BTV (light-duty) 2023: 2294 NA NA NA NA NA NA NA NA 1,285, 23% of goal 829 699 549 361 296
Greenhouse gas emissions (1000 metric tons CO2) 2023: 150 NA NA NA NA NA NA NA NA 174, 55% above target 179 193 188 185 214
Fossil fuel consumption (billion BTU) 2023: 2418 NA NA NA NA NA NA NA NA 2,964, 68% above target 3,044 3,319 3,169 3,185 3,660
 BED 2025-2026
 Strategic Direction Dashboard



 Aug 2025 July 2025 June 2025 May 2025 April 2025 March 2025 February January 2023 Yearly 2022 Yearly 2021 Yearly 2020 Yearly 2019 Yearly
 Target Actuals Actuals Actuals Actuals Actuals Actuals  2025 Actuals 2025 Actuals 2024 Yearly Actual Actual Actual Actual Actual Actual
Demand Response
# of Defeat the Peak events called 0 0 1 0 0 0 0 0 2 3 3 5 3 4
Average kW savings per DtP event NA NA 413 NA NA NA NA NA 342 372 463 419.5 261 242
Manage Budget and Risks Responsibly
Safety & Environmental
No. of workers' compensation/accidents per month 0 1 0 0 2 2 0 0 0 7 8 16 4 8
Total Paid losses for workers’ compensation accidents (for the month) annual $11,091 $7,121 $21,245 $13,204 $10,248 $3,018 $5,489 $66,100 $272,353 $98,393 $ 145,102 $ 93,612 $ 165,402 $38,288
Lost Time Incident Rate (days/year) (Dec numbers reflect annual results) <= 3.5 annual N/A N/A N/A N/A N/A N/A N/A N/A 0.99 2.0 1.99 0.0 0.93 0.89
Lost Time Severity Rate (days/year) (Dec numbers reflect annual results) <= 71 annual N/A N/A N/A N/A N/A N/A N/A N/A 9.90 107.4 112.63 0.0 41.71 78.2
Lost work days per month 0 0 0 11 16 0 0 0 0 avg 10 avg 12 avg 9 0.0 45
NOx reporting levels to EPA (Quarterly) (lbs/mmbtu) <0.075 0.066 0.067 0.068 0.069 0.091 0.068 0.069 0.068 0.06 0.06 0.06 0.07 0.07
# of reported spills, waste water incidents (monthly) 0 0 0 0 0 0 0 0 0 4 2 6 4 4
Phosphorus levels to DEC in lbs (monthly/yearly total) <0.8/37 0.172/1.152 0.038/1.053 0.04/1.063 0.013/1.024 0.181/2.082 0.174/1.979 0.165/1.986 0.153/1.965 1.87 0.705 0.688 2.028 1.169
# of new power outage claims reported (monthly) 1 0 1 0 0 0 0 0 0 6 3 5 7 4
# of new auto/property/other liability claims reported (monthly) 2 2 2 1 3 3 1 1 4 24 36 27 18 27
Purchasing & Facilities
# of Purchase Orders for Inventory (Target: avg for winter months) 42 67 108 41 78 67 86 72 51 738 541 636 644 593
$ value of Purchase Orders for Inv. (Target: avg dollars spent during winter) $78,000 $493,359 $1,128,775 $140,202 $325,805 $401,355 $973,263 $919,825 $142,579 $ 6,613,883 $2,481,531 $ 4,861,023 $ 3,278,620 975,531
# of stock issued for Inventory (Target: avg during winter months) 320 731 641 732 563 707 730 510 631 7,207 6,777 6,187 4,402 4,545
$ value of stock issued for Inventory (Target: avg. during winter) $ 65,000 $ 164,571 $ 66,137 $ 359,158 $ 134,027 $ 190,684 $ 151,857 $ 122,341 $ 66,331 $ 2,352,360 $ 1,925,781 $ 2,200,233 855,456 1,086,478
# of posters pulled from poles monthly (Target: goal to remove each month) 58 125 64 0 121 0 0 0 40 351 592 900 2,728 627
# of Spark Space and Auditorium setup/breakdowns monthly (Target: Covid impact) 3 13 14 11 16 13 19 16 15 199 207 132 88 87
Finance
Debt service coverage ratio (avg of previous 12-months) 1.25 1.24 TBD 4.91 5.47 5.08 5.14 4.95 4.10 FY24 3.81 FY23  4.61 FY22 4.26 FY21 3.77 FY20 3.56 FY19
Adjusted debt service coverage ratio (avg of previous 12-months) 1.5 4.92 TBD 1.26 1.44 1.32 1.34 1.29 1.25 FY24 1.29 FY23  1.22 FY22 1.08 FY21 0.93 FY20 0.90 FY19
Days unrestricted cash on hand (incl line of credit) >90 141 TBD 144 137 152 156 153 146 FY24 93 FY23 120 FY22 121 FY21 120 FY20 109 FY19
Arrearages >60 days $568,448 $561,164 $ 558,755 $ 514,677 $ 486,445 $ 493,414 $ 484,303 $ 480,633 $ 470,940 $ 392,196 $ 408,903 $ 1,087,769 $ 749,054
Power Supply
McNeil generation (MWH) (100%) per budget 29,433 26,010 18,513 13,684 552 10,132 25,714 32,680 197,044 184,798 228,981 273,355 192,696
McNeil availability factor 100% 87% 76% 61% 67% 2% 29% 81% 100% 66% 84% 67% 80%
McNeil capacity factor per budget 79% 72% 51% 37% 1.5% 27% 77% 88% 45% 42.3% 52.4% 62.4%
Winooski One generation (MWH) per budget 0 471 1,442 2,805 2,974 2,573 854 1,083 29,498 36,318 25,350 24,752 21,194
Winooski One availability factor 100% 0% 40% 60% 70% 70% 70% 90% 90% 98% 97.2% 98.3% 97%
Winooski One capacity factor per budget 0% 48% 27% 56% 56% 47% 17% 20% 48% 56% 41.7% 37%
Gas Turbine generation (MWH) NA 33.6 97.9 171.7 22.0 17.7 19.0 18.1 6.9 484 475 356 373 441
Gas Turbine availability factor 100% 99% 99% 86% 89% 100% 100% 100% 97% 98% 46.7% 54.5% 96%
Gas Turbine capacity factor NA 0.2% 0.6% 1.2% 0.1% 0.1% 0.1% 0.1% 0.0% 0.1% 0.2% 0.2% 0.21%
BTV solar PV production (mWh) 646 658 632 466 503 410 117 215 5,020 4,681 5,260 5,015 5,182
Cost of power supply - gross ($000) $3,574 $3,073 $2,760 $4,328 $3,346 $2,968 $2,629 $34,858 $30,002 $36,755 $30,285 $31,081
Cost of power supply - net ($000) $3,574 $3,073 $1,829 $1,559 $3,346 $2,968 $2,629 $27,984 $22,710 $27,487 $22,134 $23,388
Average cost of power supply - gross $/KWH $0.11 $0.11 $0.11 $0.18 $0.13 $0.11 $0.09 $0.11 $0.09 $0.11 $0.09 $0.10
Average cost of power supply - net $/KWH $0.11 $0.11 $0.07 $0.06 $0.13 $0.11 $0.09 $0.08 $0.07 $0.08 $0.07 $0.08
 FY 2026
Financial Review
 July




 September 5, 2025
 Burlington Electric Department
 Financial Review

 FY 2026



Table of Contents:

● Financial Highlights 1-2


● Revenues and Expenses

 o KWH Sales – Total 3
 o Cooling/Heating Degree Days 4
 o KWH Sales – Residential & Commercial 5
 o Net Power Supply Costs 6-11
 o Operating & Maintenance Expense 12
 o Labor Overhead 13
 o Net Income 14


● Capital Spending 15 - 18


● Cash 19
 FINANCIAL HIGHLIGHTS – BUDGET VS ACTUAL as of July FY26

 Full Yr CURRENT MONTH YEAR TO DATE
  ($000) Budget Budget  Actual Variance Budget Actual Variance
 Sales to Customers 56,090 5,638  5,934 296 5,638 5,934 296
 Other Revenues 3,881 364 280 (84) 364 280 (84)
 Power Supply Revenues 7,631 0 0 0 0 0 0
  Total Operating Revenues 67,602 6,002  6,214 212 6,002 6,214 212
 Power Supply Expense (Net) 35,540 3,466  3,574 (107) 3,466 3,574 (107)
 Operating Expense 22,912 2,243  2,088 155 2,243 2,088 155
 Depreciation & Amortization 5,832 495 513 (17) 495 513 (17)
 Taxes 3,615 308 291 17 308 291 17
  Sub-Total Expenses 67,899 6,513  6,466 47 6,513 6,466 47
  Operating Income (298) (511)  (251) 260 (511) (251) 260
  Other Income & Deductions 6,855 490 457 (33) 490 457 (33)
  Interest Expense 3,204 259 258 1 259 258 1
  Net Income (Loss) 3,354 (279) (52) 227 (279) (52) 227


Year-to-Date Results:
  Sales to Customers up $296,500 (5%). Residential Sales up $113,000 and Non-Residential Sales up
 $179,600.

  Other Revenues down $84,000 (23%)
 a. DSM billable (customer driven).


  Power Supply Expenses (Net) up $107,000 (3%)
 a. Fuel down $236,000.
 b. Purchased Power up $11,000.
 c. Transmission was up $331,000.


  Operating Expenses down $155,000 (7%)
 a. Timing: various items were less than budget including outside services ($177,000), materials & supplies
 ($52,000), and RPS Compliance ($31,000); offset by items higher than budget including maintenance
 contracts, $55,600.


  Taxes down $17,200, (5.6%)
 a. Actual Payment in Lieu of Tax (PILOT) is $162,300 lower than budget assumption for the year.
 b. Actual Winooski One Property Tax is $29,700 lower than budget assumption for the year.


  Other Income & Deductions down $33,000 (6.8%)
 a. Timing of jobbing unfavorable ($100,000).
 b. Offset by unrealized gain on investment $24,600 and customer contribution/grant proceeds $48,000.




 P.1
 FINANCIAL HIGHLIGHTS – BUDGET VS ACTUAL as of July FY26



 Capital Spending – July YTD
 ($000s)
 Plant Type Full Yr. Budget Budget Actual % Spent
 Production $4,481 $249 $41 1%
 Other 868 89 18 2%
 Transmission 222 0 0 0%
 Distribution 6,419 560 137 2%
 General 3,228 465 42 1%

 Total $15,218 $1,363 $239 2%

(1) Production – Timing; W1 FERC Relicensing budget assumed $121,950 in July vs actual of
 $2,400. Also, budget assumed $50,000 for replacement rail cars in July vs $0.

(2) Distribution – Transformers under budget due to availability ($269,000).

(3) General – Timing; budget includes IT Forward projects of $166,650 vs actual of $32,670. Also,
 timing of Forklift EV, $137,700. RFP is out for proposal.



 As of July 31, 2025
 Operating Cash and Investments
 Operating Funds $6,913,900
 Operating Fund – CD’s $985,100
 CD/Money Market - GOB $3,814,300
 Total Operating Cash $11,713,300




 Credit Rating Factors – July 2025
 3 Year
 "A" "Baa" Current Average
 Debt Service Coverage Ratio 1.25 1.25  4.92 4.22
 Adjusted Debt Service Coverage Ratio 1.50 1.10  1.24 1.25
 Cash Coverage - Days Cash on Hand 90 30
 - With $10M Line of Credit 141 132
 - Without Line of Credit 80




 P.2
 Burlington Electric Department
 Fiscal Year Ending June 30, 2026


 Total Sales to Customers - KWH
 Monthly

 35,000




 30,000




  KWH (000)
 25,000




 20,000
 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
 Budget 32,855 30,319 26,899 25,256 24,532 27,238 28,518 25,711 26,620 24,405 24,403 25,950
 Actual 32,740




 KWH Sales to Customers (YTD)
 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Budget 32,855 63,173 90,073 115,329 139,861 167,098 195,617 221,328 247,949 272,354 296,757 322,708
 Actual 32,740



 P.3
 FY 2026
 Cooling Degree Days (CDD)
 350

 300

 250

 200

 150

 100

 50

 0
 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
 Budget CDD 278 222 86 8 1 0 0 0 0 2 53 138
 Actual CDD 306



 Heating Degree Days (HDD)
 1,400

 1,200

 1,000

 800

 600

 400

 200

 0
 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
 Budget HDD 2 7 96 384 769 1,066 1,307 1,152 968 571 213 44
 Actual HDD 1

 Average Monthly Temperature
 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Budget 74 72 65  53 39 30 23 24 34 46 60 68
Actual 75

CDD/HDD definition per National Weather Service : Degree days are based on the
assumption that when the outside temperature is 65°F, we don't need heating or cooling to be
comfortable. Degree days are the difference between the daily temperature mean (high
temperature plus low temperature divided by two) and 65°F. If the temperature mean is above
65°F, we subtract 65 from the mean and the result is Cooling Degree Days. If the temperature
mean is below 65°F, we subtract the mean from 65 and the result is Heating Degree Days.


 P.4
 Burlington Electric Department
 Fiscal Year Ending June 30, 2026
 KWH Sales


 Residential Customers


 10,000


 9,000


 8,000


 KWH (000) 7,000


 6,000


 5,000
 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
 Budget 9,514 8,313 6,733 6,475 6,932 8,616 9,028 7,941 7,858 6,569 5,990 6,737
 Actual 9,524




 Commercial & Industrial Customers


 25,000


 22,500


 20,000


 KWH (000) 17,500


 15,000


 12,500
 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
 Budget 23,340 22,006 20,166 18,780 17,601 18,622 19,490 17,770 18,762 17,837 18,413 19,213
 Actual 23,216




Street Lighting is included with Commercial & Industrial Customers.




 P.5
 Net Power Supply Costs
 July - FY 2026
 ($000)
 Current Month Year-to-Date
 Budget Actual Variance Budget Actual Variance
Expenses:
 Fuel (p. 7) $1,201 $966 $236 (1) $1,201 $966 $236 (1)
 Purchased Power (p.11) 1,428 1,440 (11) (2) 1,428 1,440 (11) (2)
 Purchased Power Adjustment (p 11) 43 43 (0) 43 43 (0)
 Transmission Fees - ISO 772 933 (161) (3) 772 933 (161) (3)
 Transmission Fees - Velco (41) 129 (170) (4) (41) 129 (170) (4)
 Transmission Fees - Other 63 63 (0) 63 63 (0)
Total Expenses 3,466 3,574 (107) 3,466 3,574 (107)

Revenues:
 Renewable Energy Certificates - McNeil 0 0 0 0 0 0
 Renewable Energy Certificates - Wind 0 0 0 0 0 0
 Renewable Energy Certificates - Hydro 0 0 0 0 0 0
 Renewable Energy Certificates - Other 0 0 0 0 0 0
Total Revenues 0 0 0 0 0 0

Net Power Supply Costs $3,466 $3,574 ($107) $3,466 $3,574 ($107)

Load (MWh) 33,465 33,680 215 33,465 33,680 215
$/MWh $103.58 $106.10 $2.52 $103.58 $106.10 $2.52

Current Month:
(1) See detail on page 7.
(2) See detail on page 11.
(3) ISO-NE Peak Load over Budget.
(4) VELCO Common charges over Budget.

YTD:
(1) See detail on page 7.
(2) See detail on page 11.
(3) ISO-NE Peak Load over Budget.
(4) VELCO Common charges over Budget.




 P.6
 Net Power Supply Costs
 July - FY 2026

 ($000)
 Current Month Year-to-Date
 Budget Actual Variance Budget Actual Variance
FUEL:

McNeil 1,129 927 202 (1) 1,129 927 202 (1)

Gas Turbine 72 39 34 (2) 72 39 34 (2)

Total Fuel 1,201 966 236 1,201 966 236




Current Month:
(1) McNeil production 15% under Budget. Wood Price Per Ton 5% under Budget. (p. 8)
(2) GT production (98 MWh) 85% over Budget. Budget includes $50,000 in July for R99 testing.

YTD:
(1) McNeil production 15% under Budget. Wood Price Per Ton 5% under Budget. (p. 8)
(2) GT production (98 MWh) 85% over Budget. Budget includes $50,000 in July for R99 testing.




 P.7
 Burlington Electric Department
 McNeil Plant - MWH Production (50%)
 FY 2026
25,000




20,000




15,000




10,000




  5,000




 0
 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Budget 15,353 13,749 6,000 6,573 11,538 16,538 17,347 15,544 12,227 4,199 3,875 8,431
Actual 13,005
Maximum 18,600 18,600 18,000 18,600 18,000 18,600 18,600 16,800 18,600 18,000 18,600 18,000




 P.8
 Burlington Electric Department
 Winooski One - MWH Production
 FY 2026
  8,000


  7,000


  6,000


  5,000


  4,000


  3,000


  2,000


  1,000


 0
 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Budget 2,650 1,246 832 1,541 1,942 3,216 2,531 1,587 2,032 4,503 3,575 3,643
Actual 468
Maximum 5,506 5,506 5,328 5,506 5,328 5,506 5,506 4,973 5,506 5,328 5,506 5,328




 P.9
 Burlington Electric Depatment
 Fiscal Year 2026


 Woodchips Price Per Ton
 Monthly Variance


 30%
 25%
 20%
 15%
 10%
 5%
 $/Ton
 0%
 -5%
 -10%
 -15%
 -20%
 -25%
 -30%
 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
 Actual -5%




 Woodchips Price Per Ton
 Year-to-Date Variance


 30%
 25%
 20%
 15%
 10%
 5%
 $/Ton
 0%
 -5%
 -10%
 -15%
 -20%
 -25%
 -30%
 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
 Actual -5%




* Wood only. Does not include other costs.




 P.10
 Net Power Supply Costs
 July - FY 2026
 ($000)
 Current Month Year-to-Date
 Budget Actual Variance Budget Actual Variance

PURCHASED POWER:

Non-Energy (capacity) 95 (73) 168 (1) 95 (73) 168 (1)

Energy:
  Georgia Mountain Wind 204 193 11 (2) 204 193 11 (2)
  Hancock Wind 130 140 (9) (3) 130 140 (9) (3)
  VT Wind 121 110 11 (4) 121 110 11 (4)
  Hydro Quebec 300 300 (0) 300 300 (0)
  In City Solar Generators 114 109 6 114 109 6
  NYPA 6 7 (1) 6 7 (1)
  ISO Exchange 208 637 (430) (5) 208 637 (430) (5)
  ISO Exchange Adjustment 43 43 (0) (**) 43 43 (0) (**)
  FirstLight 178 99 78 (6) 178 99 78 (6)
  Velco Exchange 0 (0) 0 0 (0) 0
Total Energy 1,305 1,638 (334) 1,305 1,638 (334)

Ancillary Charges 5 (157) 162 (7) 5 (157) 162 (7)

VT RES Tier 1 Compliance Expense 0 0 0 0 0 0
Renewable Energy Credit Purchase 0 0 0 0 0 0
Miscellaneous-Other 67 75 (8) 67 75 (8)

Total Purchased Power Expense 1,472 1,483 (11) 1,472 1,483 (11)

Special Note (**)
Adjustment to reduce expense and create regulatory asset by amount of ISO Exchange excess winter energy revenue shortfall ($4,162,233) and
record one-eighth ($520,279) as amortization in FY24.

Current Month:
(1) Includes credit from Pay for Performance event.
(2) Production 6% under Budget.
(3) Production 7% over Budget.
(4) Production 9% under Budget.
(5) Production (McNeil (15%), Winooski One (82%), FirstLight (44%), and Wind (3%)) under Budget.
(6) Production 44% under Budget.
(7) Reserve revenues over Budget.

YTD:
(1) Includes credit from Pay for Performance event.
(2) Production 6% under Budget.
(3) Production 7% over Budget.
(4) Production 9% under Budget.
(5) Production (McNeil (15%), Winooski One (82%), FirstLight (44%), and Wind (3%)) under Budget.
(6) Production 44% under Budget.
(7) Reserve revenues over Budget. P.11
Burlington Electric Department
Operating and Maintenance Expense by Spending Category
FY 2026 - July YTD
 %
 Budget Actual Variance Variance *
Labor-Regular 801,333 832,505 (31,172) 4% a
Labor-Overtime 40,925 42,361 (1,436) 4%
Labor-Temporary 6,900 1,728 5,172 75% b
Labor-Overhead 346,838 351,538 (4,700) 1% c
Outside Services 382,381 205,371 177,010 46% d
DSM (rebates & outside services) 181,917 184,275 (2,358) 1% e
Materials & Supplies 140,083 88,019 52,064 37% f
Insurance 65,592 63,990 1,602 2%
A & G Clearing (88,798) (31,713) (57,085) 64% g
Other - RPS Tier 3 Compliance 99,133 67,847 31,286 32%
Other 265,437 282,237 (16,800) 6%
Operating & Maintenance Expense 2,241,740 2,088,158 153,582 7%



(a) Labor is impacted by the amount of capital (vs. expense) work.

(b) Temporary help at McNeil Plant.

(c) See page 13.

(d) Timing; budget assumed GT R99 Testing in July, $171,000.

(e) Projects are driven almost entirely by customer decisions. The budget is based on information on specific
projects or seasonal variations; otherwise the amount is spread evenly across the year.

(f) Timing of various areas.

(g) The credit for A&G ("Admin and General Expenses") charged to Capital projects was less than planned.




 P.12
 Burlington Electric Department
 Budget vs Actual Spending Analysis
 FY 2026 - July YTD

 (000's)
Labor - Overhead Budget Actual Variance %
 Pension $154 $160 ($6) -4% (a)
 Medical Insurance 203 196 7 3% (b)
 Social Security Taxes 94 93 1 1% (c)
 Workers Compensation Ins. 37 35 2 6% (b)
 Dental Insurance 8 8 0 1% (b)
 Life Insurance 2 2 0 7% (b)
 Childcare Contribution Tax 5 5 0 7% (d)
 $502 $499 $3 1%



Rates Table: Budget

Pension (a) 12.58%

Social Security (c) 7.65%

Childcare Payroll Tax 0.44%



(a) Function of labor cost.

Includes pension per City, $1,760,100 and amortization of IBEW Pension back payment,
$87,041.

(b) Budget provided by the City during budget development.

(d) New tax as of July 1, 2024 is 0.44% of wages.




 P.13
 Net Income
 FY 2026 - July ($000)

 Current Month Year - To - Date
 Ref Budget Actual Variance Budget Actual Variance
Operating Revenues
 Sales to Customers p.3 5,638 5,934 296 5,638 5,934 296
 Other Revenues 364 280 (84) (a) 364 280 (84) (a)
 Power Supply Revenues p.6 0 0 0 0 0 0
 Total Operating Revenues 6,002 6,214 212 6,002 6,214 212

Operating Expenses
 Fuel p.6 1,201 966 235 1,201 966 235
 Purchased Power p.6 1,471 1,483 (12) 1,471 1,483 (12)
 Transmission p.6 793 1,125 (332) 793 1,125 (332)
 Operating and Maintenance p.12 2,243 2,088 155 2,243 2,088 155
 Depreciation & Amortization 495 513 (17) 495 513 (17)
 Revenue Taxes 60 60 (0) 60 60 (0)
 Property Taxes Winooski One 27 25 2 (b) 27 25 2 (b)
 Payment In Lieu of Taxes 221 206 15 (c) 221 206 15 (c)
 Total Operating Expenses 6,512 6,466 46 6,512 6,466 46

Other Income and Deductions
 Interest/Investment Income 31 28 (3) 31 28 (3)
 Dividends 373 373 0 373 373 0
 Customer Contributions/Grant Proceeds 76 124 48 (d) 76 0 (76) (d)
 Gain/(Loss) on Disp of Plant 0 0 0 0 0 0
 Other 10 (68) (78) (e) 10 56 46 (e)
 Total Other Income & Deductions 490 457 (33) 490 457 (33)

Interest Expense 259 258 1 259 258 1

Net Income (279) (52) 227 (279) (52) 227

Current Month:
(a) Energy Efficiency Program cost reimbursement was lower than planned, $78,300.
(b) Actual Winooski One tax bill is lower than budget assumption by $29,700 for the year.
(c) Actual Payment in Lieu of Tax (PILOT) is lower than budget assumption by $162,300 for the year.
(d) Budget includes customer contributions for Champlain Pkwy ($51,000). Also, grant income for "Building Giants" (Federal
 50% share) ($23,400) and Distributed Energy Resources Management ($1,500). Actual includes customer contribution for
 Champlain Parkway ($69,000) and various grant income.
(f) Timing of jobbing unfavorable, ($100,000); offset by unrealized gain on investment, $24,600.

Year - To - Date:
(a) Energy Efficiency Program cost reimbursement was lower than planned, $78,300.
(b) Actual Winooski One tax bill is lower than budget assumption by $29,700 for the year.
(c) Actual Payment in Lieu of Tax (PILOT) is lower than budget assumption by $162,300 for the year.
(d) Budget includes customer contributions for Champlain Pkwy ($51,000). Also, grant income for "Building Giants" (Federal
 50% share) ($23,400) and Distributed Energy Resources Management ($1,500). Actual includes customer contribution for
 Champlain Parkway ($69,000) and various grant income.
(f) Timing of jobbing unfavorable, ($100,000); offset by unrealized gain on investment, $24,600.




 P.14
 Burlington Electric Department
 Capital Projects - FY26

 $000
 Full Year July
 Budget Budget Actual Variance
McNeil (BED 50% Share)
Analyzer Upgrades for Chemical Treatment 9 0
Ash Silo Pug Mill/Auger Upgrade (312) 13 0
Augers Replaced 30 0
Catalyst Replacement for Nox System (312) 150 1 (1)
CEMS Server Upgrade (312) 15 0
Cooling Tower Timber Replacement 84 0 (0)
Demineralization Resin 20 0
Disk Screen 15 0
ESP Mechanical Field Rebuild 300 0
Farmhouse Improvements (311) 9 0
Freight Elevator Geared Equipment and Controls (311) 180 0
IT Forward - FIS Replacement (McNeil) 37 0
IT Forward - Work & Asset Management (McNeil) 22 0
Live Bottom Rebuild 139 0
McNeil Relay Engineering Study (315) 134 7 1 6
Network Infrastructure - McNeil Switches 7 0
Opacity Replacement (312) 20 0
Reclaimer Rebuild 12 (12) (a)
Replacement Rail Cars (312) 50 50 50
Routine Station Improvements 1 188 38 38
Safety Valve Replacements (312) 25 6 6
Shredder Upgrade (312) 100 0
Station Tools & Tool Boxes (312) 8 1 2 (1)
Well New (311) 185 0
Woodchip Dryer (1 of 3) (312) 626 0
Other 17 5 1 4 (b)
 Total McNeil Plant 2,380 106 16 90

(a) Prior year project.
(b) Budget includes appliances, energy efficiency upgrades, furniture, perimeter fence, replacement scale at Swanton,
rigging equipment and switchgear & station upgrades.
Hydro Production 1,926 134 3 131 (a)

(a) Budget assumed FERC Relicensing, $121,950 vs actual $2,383. Also, Timing; Routine Station Improvements.

Gas Turbine 175 9 22 (13) (a)


(a) Budget assumes Rigging Equipment. Actual includes prior year GT Roof Replacement, $2,800 and GT Server
Upgrade, $19,443.




 P.15
 Burlington Electric Department
 Capital Projects - FY26

 $000
 Full Year July
 Budget Budget Actual Variance
Other
Direct Current Fast Chargers (Level 3) 159 0 0 (0)
Distributed Energy Resources 34 3 3
Distributed Energy Resources Management System 244 0 0
EV Charger Installations (Level 2) 264 0 0 (0)
EV Chargers/Staging Plan 0 0 18 (18)
P&P R&D 26 3 3
585 Fleet EV Chargers 115 58 58
585 Fleet EV Charging Design Study 25 25 25
 Total Other 868 89 18 70



Transmission Plant
VT Transco Investment 222 0 0 0
 Total Transmission Plant 222 0 0 0

Distribution Plant-General

Aerial
Deforest Road Rebuild 493 99 2 96
Dunder Road Rebuild 0 22 (22) (a)
NZE Transfer Load Between 1L1 to L14 210 0
Rebuild 1L4 from Poles P838 to P2795 173 0
Rebuild Howard Street Pole P655 to P836 41 0
Rebuild Plattsburgh Ave Poles P3762 to P3752 40 0 (0)
Rebuild St Paul Street Pole P1004 to P1011 27 0
Rebuild Wells Street Pole P191 to P183 25 0 (0)
Replace Condemned Poles 210 0 (0)
S Cove Rd East Rebuild 62 (62) (a)
South Cove Road West Rebuild 42 (42) (a)
 Total Aerial 1,220 99 129 (30)

(a) Prior year project.

Underground
Battery Street Replacement 2 (2)
Replace UG to UVM Aiken Center 18 18 18
Replace 2L3 from UH303 to 929S 698 0
Rebuild UG St. Paul Street (Bank St to Cherry St) 358 0
 Total Underground 1,073 18 2 16




 P.16
 Burlington Electric Department
 Capital Projects - FY26

 $000
 Full Year July
 Budget Budget Actual Variance
Customer Driven/City Projects
Champlain Parkway-Billable 400 60 60
Champlain Parkway (CAFC) (340) (51) (69) 18
City Place Streetlighting 195 0
City Place Streetlighting (CAFC) (104) 0
Great Street-Main Street 621 4 (4)
Great Street-Main Street (CAFC) (557) 0
Winooski Bridge Rebuild 34 0
Winooski Bridge Rebuild (CAFC) (34) 0
 Total Underground 215 9 (65) 74

Other
Communication Equipment Emergency Repair 16 0
Distribution Transformers-Install 11 6 (6)
Distribution Transformers-Purchase 1,445 289 20 269
Fiber Optical Time Domain Reflectometer Unit (OTDR) 12 12 12
Lake Street Battery Bank Replacement 41 0
Replace Failed 920S/921S/922S Switch 63 0
SCADA ADMS Upgrade (Phases 3/4) 1,204 120 33 87
SCADA Field Equipment Replacement 64 0
SCADA Servers PC's and Monitors 12 (12)
Upgrade ArcFM to GIS Pro 318 0
USAmp Upgrade 7 7 7
Other 0
 Total Other 3,181 429 71 358

 Total Distribution Plant-General 5,689 555 137 418

Distribution Plant - Blanket
Aerial 174 2 0 2
Aerial (CAFC) (70) (7) 7
Underground 332 21 (21)
Underground (CAFC) (143) (18) 18
Meters 133 3 3 (0)
Lighting 217 1 0 0
Tools & Equipment - Distribution/Technicians 40 0
Replaces Failed SCADA Field Equipment 12 0 (0)
Substation Maintenance 18
Substation Camera Replacement 15 0
 Total Distribution Plant - Blanket 729 5 0 5

 Total Distribution Plant 6,419 560 137 423




 P.17
 Burlington Electric Department
 Capital Projects - FY26

 $000
 Full Year July
 Budget Budget Actual Variance
General Plant
Computer Equipment/Software 2,724 292 33 260 (a)
Vehicle Replacement 309 138 138
Buildings & Grounds 179 35 9 26 (b)
Gas Detectors 6 0
AED Purchase 11
 Total General Plant 3,228 465 42 423

(a) Budget includes IT Forward, $166,650 vs actual of $32,670. Other various projects include Internet Firewall.
(b) Budget includes Meter Shop renovation (HVAC) $35,000. Actual includes new SCADA Room, $9,200 from prior
year.

 Sub-Total Plant $15,218 $1,363 $239 $1,124

 Add: CAFC* reclass to "Other Income" 1,247 51 94 (43)

Total Plant $16,465 $1,414 $332 $1,082

* Customer Advances (Contributions) for Construction.




 P.18
 Operating Cash - FY 2026
 Monthly Ending Balance
 16,000

 14,000

 12,000

 10,000

$000 8,000

 6,000

 4,000

 2,000

 0
 Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
 Budget 11,796 12,786 13,998 13,397 12,763 12,585 13,665 14,922 13,431 12,560 14,123 13,221
 Actual 11,713




 P.19
 MEMORANDUM

To: Burlington Board of Finance and City Council
From: Darren Springer, General Manager
Date: 9/8/2025 and 9/29/2025
Subject: Street Light Tariff Update



Introduction

Burlington Electric Department (“BED”) is seeking Board of Finance and City Council approval to
file with the Vermont Public Utility Commission (PUC) the documents needed to update our
municipal Street Lighting tariff to accommodate billing for the use of security cameras requested
by Burlington Police Department and parking ban lights for the City. Currently such uses would
require prohibitively expensive individual metering under the tariff. BED proposes instead, with the
requested tariff update, to establish a per month charge for municipal use of a camera or parking
ban light, and use the data from a small number of meters to monitor our consumption
assumptions and provide for accurate system loss calculations. For cameras, this is how we bill
and monitor the consumption of street lights (both street lights and 24/7 cameras have predictable
hours of operation and known wattages). In the case of parking ban lights, the consumption is so
low as to make detailed energy metering and billing unreasonable, but monitoring of use will still
occur via a few representative meters.

BED has also taken the opportunity to make update other portions of the tariff to reflect current
business practices.

A redlined copy of the Street Lighting tariff is attached to this memo. BED staff will be present at
Board of Finance on 9.8.25 and the 9.29.25 Council meeting to answer any questions.

PLEASE NOTE: The rates shown in the proposed tariff are based on BED’s currently approved rates
without the 4.5% surcharge that went into effect on bills rendered after September 1, 2025. This
proposed tariff, if approved, would be subject to that 4.5% surcharge while the FY26 rate case is pending
at the PUC, and the proposed tariff would ultimately be increased by 4.5% after the FY26 rate filing is
approved. The 4.5% rate change is subject to PUC review and approval and could be approved at
different level than the 4.5% proposed.
Streetlight Tariff Filing Motions

Board of Finance: To approve and recommend that the City Council authorize the General Manager
of the Burlington Electric Department or their designee to file the updated Street Lighting tariff with
the Vermont Public Utility Commission and to take such actions as may be needed to secure its
approval.

City Council: To approve and authorize the General Manager of the Burlington Electric Department
or their designee to file the updated street lighting tariff with the Vermont Public Utility Commission
and to take such actions as may be needed to secure its approval.
 Burlington Electric Department
 Tariff Sheets
 Effective August 1, 2024, for bills rendered on and after September 1, 2024
 Effective date TBD (upon Public Utility Commission approval)

 STREET LIGHTING (SL) RATE
 (SL Page 1 of 2)
Availability

 For Burlington Electric Department (BED-)-owned municipal street lighting and city-owned
 parking ban lights on city-accepted streets and, municipally owned security cameras, and privately
 owned overhead lighting illuminating private property where such lighting is not metered as a
 portion of the load served under another BED tariff.

Character of Service

 Unmetered alternating current, 60 Hertz, single phase, at nominal voltages of 120, 120/240, or 277
 volts.

 Standard street and area lighting service entails providing, operating, and maintaining standard
 dusk to dawn street luminaires fed from overhead distribution lines.

 BED will own and maintain all poles and luminaires served under this tariff and reserves the right
 to approve or deny individual fixture choices that differ from those typically stocked.

 Parking ban lights and security cameras will be fed by existing distribution lines, or by new
 distribution line extensions (where required) installed at customer expense.

 For BED-owned municipal street lighting and private area lighting, BED will maintain all poles,
 luminaires, conductors, conduits, and all associated materials served under this tariff. For all other
 uses, BED will maintain BED-owned poles, conductors, conduits, and all associated materials
 served under this tariff (but not the parking ban lights, security cameras, or any conductors and/or
 conduits between the customer owned device(s) and BED’s first secondary connection point on
 the pole or in the underground system).

Monthly BillRate

 Standard Rates per Luminaire (LED wattages not shown below will be charged at the rate
 of the LED fixture closest in watts) or Device

 Nominal Assumed
 Luminaire Luminaire
 Wattage or Wattage with BulbTypeLuminaire
 Device Type Ballast Bulb Type $/Month
 100 117 Mercury Vapor $ 11.94
 175 205 Mercury Vapor $ 16.10
 250 292 Mercury Vapor $ 21.88
 400 453 Mercury Vapor $ 30.76
 Approved: May 1, 2025, by Public Utility Commission in Case # 24-1848-TF

 For further information, see BED's Operating Guidelines
 Burlington Electric Department
 Tariff Sheets
 Effective August 1, 2024, for bills rendered on and after September 1, 2024
 Effective date TBD (upon Public Utility Commission approval)

 100 119 Metal Halide $ 15.35
 175 206 Metal Halide $ 19.26
 250 288 Metal Halide $ 24.20
 400 450 Metal Halide $ 33.59
 70 99 High Pressure Sodium $ 11.00
 100 136 High Pressure Sodium $ 12.94
 150 195 High Pressure Sodium $ 16.06
 250 305 High Pressure Sodium $ 23.44
 400 466 High Pressure Sodium $ 32.47
 189 189 Incandescent $ 20.68
 40 44 LED $ 12.00
 65 72 LED $ 14.58
 90 100 LED $ 16.81
 120 133 LED $ 21.34
 150 170 LED $ 25.40
 180 204 LED $ 29.48
 Security Camera N/A N/A $ 13.39
 Parking Ban Light 80 N/A $ 0.42
 (SL Page 2 of 2)

Terms and Conditions

 1) New or additional servicerequired distribution lines installed under this tariff for any use must
 be reviewed and approved in advance by BED to insureensure that requested facilities comply
 with current BED engineering standards. For parking ban light and security camera
 installations, all electrical work not owned by BED must comply with all applicable National
 Electrical Code (NEC) standards and any City permitting requirements.

 1)2) New BED-owned municipal street lighting installations shall meet the recommendations
 of the Illuminating Engineering Society of North America (IESNA). IES-NA). Any new street
 lighting installations on city streets or on new streets that will become accepted city streets
 shall meet these recommendations as detailed in the latest version of the IESNAIES-NA
 Lighting Handbook. Lighting levels for illuminating private property will be as requested by
 the customer subject to BED approval.

 3) TheFor decorative BED-owned municipal street lighting, the customer must make a
 contribution in aid of construction, in advance, to cover incremental costs the cost for the
 installation of requested facilities such as decorative fixtures that are in excess of $651 per
 installed luminaire (the luminaire being defined as all hardware required at the location except
 above the cost of BED’s standard design costs for municipal street lighting for a pole). If a
 requested lighting service requires setting a dedicated polesimilar non-decorative fixture.


 Approved: May 1, 2025, by Public Utility Commission in Case # 24-1848-TF

 For further information, see BED's Operating Guidelines
 Burlington Electric Department
 Tariff Sheets
 Effective August 1, 2024, for bills rendered on and after September 1, 2024
 Effective date TBD (upon Public Utility Commission approval)

2)4) For new parking ban lights and security cameras, the customer shall paymust make a
 contribution in aid of construction, in advance equal to the cost of installing that pole. Excess
 costs may optionally be financed over 60 months in accordance with BED’s Lending Policy.,
 to cover the cost of extending the existing or constructing a new distribution line.

3) The customer may be required to enter into a contract with a minimum term of 5 years for any
 new or additional lighting facilities.

5) BED no longer accepts new applications for or alterations to pre-existing overhead lighting
 illuminating private property where such lighting is not metered as a portion of the load served
 under another BED tariff.

4)6) Lighting service shall be provided from dusk to dawn as controlled locally by photocells.
 Service for parking ban lights and security cameras will be provided all hours.

5)7) For purposes of computing billed energy for BED-owned municipal street lighting, the
 following burning hours will behave been assumed:

 Month Burning Hours
 January 456
 February 379
 March 374
 April 316
 May 285
 June 255
 July 274
 August 310
 September 344
 October 403
 November 432
 December 468




 Approved: May 1, 2025, by Public Utility Commission in Case # 24-1848-TF

 For further information, see BED's Operating Guidelines

MINUTES OF REGULAR MEETING
 BURLINGTON ELECTRIC COMMISSION

 Wednesday, September 10, 2025

The regular meeting of the Burlington Electric Commission was convened at 5:01 pm on
Wednesday, September 10, 2025, at Burlington Electric Department, 585 Pine Street, Burlington,
Vermont, and on Microsoft Teams.

Attendance
  Channel 17 was present to record this meeting.
  Commissioners Lara Bonn, Ali Kenney, Scott Moody, Andy Vota, and Bethany Whitaker were
 present.
  Staff members Elena Alexander, Paul Alexander, Chris Burns, Mike Kanarick, Munir Kasti,
 Lincoln Sprague, Darren Springer, and Emily Stebbins-Wheelock were present at 585 Pine
 Street, and James Gibbons was present via Microsoft Teams.
  Public member Alan Bjerke was present at 585 Pine Street.

Agenda
There were no proposed changes to the agenda.

Meeting Minutes
Commissioner Moody made a motion to approve the minutes of the July 23, 2025, Commission
Meeting; Commissioner Vota seconded the motion. Vote: 5 ayes 0 nays.

Public Forum
Alan Bjerke, Burlington resident: Spoke about miscellaneous service fees, particularly the initial
service fee, stating that in March 2024, the City Council approved new fees, such as an initial service
fee of $6 to replace the current $30 fee. Mr. Bjerke, noting that BED was in the process of seeking a
second round (due to correction of calculation errors and to adjust fees to align with current wages
and vehicle costs) of regulatory approval to implement the fees, expressed concern about the delay
and requested that the Electric Commission help ensure that BED implements the changes by
December 15, 2025.

Commissioners’ Corner
Commissioners welcomed Ali Kenney to the Commission, expressing enthusiasm for her valuable
experience and strategic thinking. The Commission also thanked Commissioner Whitaker for her
service and insightful contributions as both a Commissioner and Vice Chair.


 1
Commissioner Vota inquired about the vacancy that will be left by Commissioner Whitaker’s
resignation, noting that it was not yet posted on the City of Burlington's website, which lists current
openings for boards and commissions. Commissioner Vota sought clarity on when the vacancy
would be announced. General Manager Springer explained that the next step is for Commissioner
Whitaker to formally submit her resignation, triggering the vacancy posting process by the City
Clerk's office.

General Manager’s Update
General Manager Springer started by reading a communication from Ms. Stebbins-Wheelock to Mr.
Bjerke concerning miscellaneous service fees filed on September 3, 2025. Initially, the fees were
intended to be pursued, pending PUC approval, but a subsequent withdrawal of the tariff filing
occurred after identifying calculation errors, acknowledged by the BED team. Given the elapsed
time since the last cost update, a revision based on the latest rates for labor, fringe benefits, and
vehicles is necessary. An updated proposal is planned for the October 8, 2025 Commission meeting
and subsequently will go to the Board of Finance and City Council for approval before being refiled
with the PUC. This thorough revision aims to ensure accuracy and to facilitate a smoother approval
process.

Next, GM Springer focused on the August 29, 2025 Department of Public Service (DPS) response to
a July 31, 2025 PUC letter. The Department recommended a third-party audit of BED’s business and
regulatory processes. GM Springer acknowledged past performance issues, including the McNeil
REC error, and stated that the team is taking steps to enhance accountability and communication
through regular meetings with the Department. GM Springer stated that a comprehensive review of
the REC process has been conducted with interdisciplinary meetings that led to a detailed memo to
guide future REC reporting activity. GM Springer also acknowledged that energy efficiency
programs are under scrutiny and that BED has been closely analyzing its processes in this area,
incorporating DPS feedback as BED aims for revised and corrected processes in the coming weeks.

There are two vacancies in the Policy and Planning department that BED seeks to fill to bolster
regulatory and power supply efforts. Changes to incentive programs will be paused to concentrate
on the successful implementation of existing projects. A new internal regulatory review structure
has been introduced to regularly exchange information on deadlines, filings, and responsibilities,
with GM Springer directly overseeing all PUC filings to ensure accuracy during this critical period.

GM Springer emphasized that the third-party review will provide valuable recommendations that
will be incorporated into BED’s efforts to create better processes that will help BED restore
regulatory credibility. The third-party firm will not be a traditional auditor (BED’s annual financial
statements are already audited by an external firm); rather, it is likely to be a consulting firm
specializing in municipal utility operations.

 2
Commissioner Vota asked GM Springer his thoughts on staffing, maybe to include a regulatory
supervisor. GM Springer noted that, while regulatory tasks currently are handled by a small
segment of the team, creating a regulatory supervisor role may be helpful and that any staffing
decisions will be postponed until the third-party consultants have completed their review. GM
Springer stated that BED is undertaking root cause analyses concerning REC issues and challenges
within the energy efficiency program.

Commissioner Vota asked about concerns raised by Mr. Bjerke regarding fee errors. GM Springer
clarified that ratepayers were not overcharged, but rather that current fees have complied with the
Department’s approved fee tariff. GM Springer stated that revised fees are based on recent
evaluations. The updated fee structure will be prepared for the October Commission meeting, and
GM Springer will advocate for a swift review process from the Board of Finance and City Council.

GM Springer shared plans to test the use of 99 percent renewable diesel at the gas turbine, and
plans for an enhanced EV incentives announcement on September 22, 2025 at 1pm.

Financial Review
Ms. Stebbins-Wheelock first presented an update on the preliminary, unaudited financial results for
FY25, which show an actual net income of $2.3 million as compared to the budgeted target of $3.3
million. A post-closing adjustment to sales to customers related to unbilled revenue improved sales
revenue, but the annual adjustment related to pension liability increased expense by $1.4 million,
affecting net income but not the Moody's metric for evaluating revenues available for debt service.
Without the pension adjustment, net income would have been approximately $3.7 million,
exceeding budget expectations. Preliminary financial metrics for June show a debt service coverage
ratio of 5.03 and an adjusted debt service coverage ratio of 1.29.

For July FY26, the Department reported an actual net loss of $52,000 compared to a budgeted loss
of $279,000, an outperformance of $227,000. Sales to customers were $296,000 higher than
budget. Other revenues, mostly energy efficiency utility reimbursement, experienced a negative
variance of $84,000. Net power supply expenses were $107,000 higher than budgeted, primarily
due to higher transmission and purchased power costs offset by fuel savings and capacity and
ancillary market revenues. Other operating and maintenance expenses were favorable by $155,000.

July FY26 capital expenditures were $240,000 or 2% of the fiscal year budget. Unrestricted cash as
of July 31 was $11.713 million as compared to a budget of $11.8 million. The debt service coverage
ratio for the most recent 12 months is 4.92, the adjusted debt service coverage ratio is 1.24, and
days cash on hand were 141 including the $10 million line of credit.

Commissioner Kenney asked about transmission fees. Mr. Gibbons explained that the transmission
cost structure is complex. Variables driving these costs include the ISO New England peak load,
 3
Vermont's peak load, and BED’s peak load, and the transmission rate. The Department updates its
year-end forecast monthly based on year-to-date information.

Efficiency Programs Update
Director of Energy Services Chris Burns presented an update on the performance and challenges of
BED’s major energy efficiency programs that are part of BED’s energy efficiency utility (EEU)
designation, with an emphasis on the 2024-26 program period. Mr. Burns outlined how the EEU
energy efficiency charge (EEC) allocations mirror customer sales, with 75 percent distributed to the
commercial sector and 25 percent to residential clients, reflecting their respective contributions to
overall energy savings.

Mr. Burns highlighted the importance of proactive engagement with businesses to identify energy-
saving opportunities, particularly in the HVAC sector, which has seen a shift from simpler
retrofitting efforts—like replacing incandescent lights with LEDs—to more complex systems that
can last decades.

Engagement with customers has been balanced between those seeking assistance and those
proactively contacted by the EEU, with many long-term partnerships formed within the design and
contracting communities. Increased customer inquiries regarding high bills during economic
challenges demonstrate a growing need for managing operational costs. Additionally, new
commercial construction now adheres to stringent energy efficiency standards set by the state,
which complicates the claim for savings.

Mr. Burns emphasized that traditional checklist approaches are yielding to energy modeling for
measuring the impact of construction programs, as building performance needs monitoring over an
extended period to ensure optimal efficiency. In the residential sector, collaborative efforts with
VGS are improving energy use in both low-income and market-rate homes, especially through dual-
fuel systems and weatherization strategies. Commissioner Moody asked about the effectiveness of
window replacement and, in response, Mr. Burns shared that attic insulation and overall air-sealing
were much more cost-effective.

The presentation also reviewed the role of heat pumps in enhancing energy efficiency, particularly
the integration of ductless systems and the potential for air-to-water heat pumps in homes
previously reliant on hydronic systems. The dedication to steering residential consumers toward
energy-efficient appliances is evident, as is the commitment to high-performance residential
construction exceeding existing codes.

Despite sluggish progress in 2024, particularly in the commercial sector, promising projects are
anticipated to invigorate efforts towards achieving performance goals by 2026, including notable
progress at Burlington Square and the new Burlington High School. The EEU aims to meet
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approximately 80 to 90 percent of its performance targets, while unspent funds may be returned to
ratepayers if goals are not met.

Overall, the collaborative policies and initiatives spearheaded by the EEU have led to a significant
reduction in energy consumption since 1989, marking a noteworthy achievement in light of
Burlington's growth.

Street Lighting Tariff
GM Springer shared that the Burlington Police Department has proposed the installation of security
cameras on utility poles to enhance public safety. The Department needed to identify a billing
mechanism for the cameras’ electricity use, as individually metering each camera would be
impractical and costly due to their minimal energy consumption. To address this, the Department is
proposing an update to its street lighting tariff that will set lat monthly rates per camera. One
camera will be metered to monitor the accuracy of the lat rate. The tariff contains a similar revision
to address City-operated parking ban lights. The energy usage and therefore the expected revenue
from the cameras and parking ban lights are minor -- approximately $250 annually for the cameras
and $1,300 annually for the parking ban lights – leading to the decision to use a streamlined billing
strategy. At the same time, the Department is proposing other updates to the tariff to align with
current technology and practices.

Commissioner Vota made the motion “I move to approve and recommend that the City Council
authorize the Burlington Electric Department to ile the updated street lighting tariff with the
Vermont Public Utility Commission for approval.” Commissioner Whitaker seconded the motion.
Vote: 5 ayes 0 nays

Relevate Power Contract
In public session, Mr. Gibbons asked that the Commission enter into executive session to discuss the
terms and pricing of a new hydropower proposal to replace the contract with FirstLight that
expires on December 31, 2025. Contracting for replacement energy is essential to maintain the
Department's 100 percent renewability and associated statutory exemptions.

Commissioner Moody made the motion “I move that the Commission enter into executive session
with BED Staff to discuss the Relevate Power contract terms under the provisions of Title 1, Section
313(a) (1) (A) of the Vermont Statutes.” Commissioner Whitaker seconded the motion. Vote: 5 ayes
0 nays

Executive Session start time: 7:06pm
Executive Session end time: 7:38pm

Commissioner Kenney made the motion “I move that the Burlington Electric Commission
authorizes the General Manager or his delegee to enter a contract for up to 50,000 MWH of energy
and RECs and capacity (i.e. renewable energy) with Relevate Power for a term of up to five years,
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beginning no earlier than January 1, 2026, with a cost structure not to exceed that discussed in
executive session.” Commissioner Moody seconded the motion. Vote 4 ayes 0 nays (Commissioner
Whitaker abstained from the vote)

Commissioner Kenney made the motion “I move that the Burlington Electric Commission further
authorizes the General Manager or his delegee to seek approval from the Burlington City Council to
extend the just described contract for an additional five-year term (for a total of ten years from its
start date) commencing at the end of the initial five-year term, at the same price.” Commissioner
Moody seconded the motion. Vote 4 ayes 0 nays (Commissioner Whitaker abstained from the vote)

Commissioners’ Check-In
Commissioner Moody thanked Commissioner Whitaker for her dedication over the last 4 years as
Commission Vice Chair and wished her the best in her future endeavors.

Adjourn
Commissioner Moody made a motion to adjourn; the motion was seconded by Commissioner Vota;
Commission vote; 4 ayes 0 nays (Commissioner Whitaker was not present for the vote)

The meeting of the Burlington Electric Commission adjourned at 7:42p.m.

Microsoft Teams transcript used to create minutes drafted by Elena Alexander, Board Clerk, and edited
by Mike Kanarick, Manager of Customer Care, Communications & Energy Services and Emily Stebbins-
Wheelock CFO & Manager of Strategy and Innovation.

 Attest: _______________________________________________
 Elena Alexander, Board Clerk




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