Vermont Electricity Rates
Vermont’s average residential electricity rate is 21.35¢/kWh—about 18% above the national average. The Green Mountain State operates the smallest electric grid in the contiguous United States for its ~647,000 residents, yet it leads on policy: the first statewide energy efficiency utility (Efficiency Vermont), the first U.S. city at 100% renewable electricity (Burlington, 2014), and aggressive renewable standards. Vermont Yankee, once the backbone of in-state generation, closed in 2014; today the state depends heavily on Hydro-Québec imports, wind, solar, hydro, and biomass—including one of New England’s largest wood-fired plants.
The Smallest Grid in America
Vermont has the smallest electric grid of any state in the contiguous United States. With roughly 647,000 people (second-least populated state) and peak demand on the order of ~1,000 MW, the system is tiny compared with regional neighbors like New York or Massachusetts. That scale means fewer economies of scale for wires, generation, and shared reserves—yet Vermont punches far above its weight in energy policy.
The state created the first energy efficiency utility in the nation (Efficiency Vermont, 2000). Burlington became the first U.S. city to source 100% renewable electricity (2014). Lawmakers layered renewable portfolio tiers and efficiency spending on top of a traditionally regulated market. High rates are not from lack of ambition—they reflect small-system costs, New England constraints, and the bill for that ambition.
Vermont by the Numbers
Residential rate: ~21.35¢/kWh — costly for New England but not the region’s worst; 18% above the ~18.05¢ national average.
Commercial: ~18.9¢/kWh. Typical bill: ~$115/month — modest in dollars because usage per home is low (small homes, conservation, cold-climate heating choices).
Population / grid: ~647K people; smallest interconnected grid in the lower 48. Imports: A large share of consumed electricity is tied to regional and Canadian hydro contracts and market purchases — especially after Vermont Yankee closed.
Vermont’s Electric Utilities
Vermont is too small for the traditional investor-owned utility competition model seen in large deregulated states. Most Vermonters receive power from Green Mountain Power (GMP), now owned by Canadian energy company Energir (formerly Gaz Métro). Municipal utilities and member-owned cooperatives serve pockets of the state. Retail choice is not a meaningful option — regulators focus on service quality, rates, and policy goals instead of shopping for suppliers.
GMP is the dominant distribution utility. Its scale covers most of Vermont’s population centers and rural routes. Parent company Energir is headquartered in Québec; ownership ties Vermont’s largest utility to North American grid and gas infrastructure expertise across the border.
VEC serves a broad swath of rural territory in the northeast. Member ownership gives ratepayers governance voice through a board elected from the membership — a different accountability model than GMP’s IOU structure.
Burlington Electric Department is the showcase municipal utility. Burlington became the first U.S. city to source 100% renewable electricity in 2014, mixing local renewables with certified hydro and other resources under a portfolio approach that attracted national attention.
Washington Electric Cooperative serves defined territories with member governance. Like VEC, it illustrates how small Vermont utilities can align closely with local priorities — distributed generation, member programs, and targeted infrastructure.
Stowe Electric Department serves the resort community of Stowe — where ski-industry loads (snowmaking, lifts, hospitality) sit alongside year-round residents. Small municipal systems like Stowe tailor planning to local tourism peaks and efficiency opportunities.
Together these utilities illustrate Vermont’s hybrid landscape: one dominant IOU, iconic municipal leaders, and rural cooperatives where membership governance still matters. Compare regional context with New Hampshire and Maine electricity rates.
Vermont Yankee: What Happens When You Close Your Only Major Baseload Plant
Vermont Yankee was Entergy’s 620 MW boiling water reactor in Vernon, on the Connecticut River. For years it provided on the order of ~70% of Vermont’s in-state generation—firm, carbon-free baseload in a state with little indigenous fossil fuel. Political opposition ran high; Governor Peter Shumlin campaigned on closing the plant. After a bruising relicensing and legal fight, the reactor shut down in December 2014.
Vermont did not experience widespread blackouts when Yankee stopped because power was procured from regional markets and long-term imports — especially Hydro-Québec — rather than replaced one-for-one with new in-state thermal plants. But rates faced upward pressure as the state traded a domestic nuclear cost structure for market purchases, transmission charges, and new investment in renewables, efficiency, and grid infrastructure.
Decommissioning has been slow and politically visible. NorthStar Group Services took over accelerated decommissioning planning from Entergy’s original path; cleanup, spent fuel management, and site restoration may stretch well into the 2030s. The saga is a cautionary tale: removing large baseload without like-for-like replacement shifts reliance to imports and intermittent resources, with cost and security tradeoffs.
Why Yankee Mattered — And What Changed
Baseload gap: Losing ~70% of in-state generation forced aggressive contracting and market reliance. Vermont’s climate goals favored renewables and efficiency, not new fossil baseload — tightening the planning puzzle.
Politics vs. physics: Opposition to nuclear power in Vermont was as much political as technical. Once closed, the physics problem became importing power across constrained New England interfaces.
Rates: Customers did not see a “shutdown discount.” Market energy, transmission, renewable compliance, and efficiency program funding continued to appear on bills.
Hydro-Québec: Vermont’s Canadian Lifeline
After Vermont Yankee closed, Hydro-Québec (HQ) became even more central to Vermont’s story. HQ operates one of the world’s largest hydroelectric systems; long-term contracts move massive quantities of Canadian hydropower into New England across high-voltage ties. For Vermont, those imports are relatively low-carbon firm energy compared with building new gas peakers — but they also create dependency on a foreign supplier and raise classic energy-security questions about weather, contract terms, and regional politics.
Vermont also develops in-state small hydro and run-of-river projects, but the headline volume often comes from Québec’s reservoirs. Critics and supporters debate how to count imported large hydro in “renewable” portfolios; supporters emphasize stable pricing and emissions benefits, while skeptics cite ecosystem impacts north of the border and over-reliance on a single foreign portfolio.
Imports & Security
Strength: HQ power helps Vermont meet demand without Vermont Yankee—and pairs logically with wind and solar that need firmed capacity.
Tradeoff: Reliance on cross-border lines means Vermont’s costs and risks are tied to international contracts and regional transmission policy, not only to plants inside state lines.
Approximate statewide resource mix (illustrative shares for discussion): hydropower including imports ~25%+ (Québec is a major driver beyond in-state small hydro), wind ~15%, solar ~12%, biomass/wood ~15% (McNeil Generating Station in Burlington is among New England’s largest wood-fired plants), natural gas ~5%, market purchases ~28%, nuclear ~0% after Yankee. Exact EIA year-to-year percentages vary; treat these as orientation, not a statutory compliance table.
Has Vermont Considered Deregulation?
No meaningful retail competition has emerged. The Vermont Public Utility Commission (PUC; formerly the Public Service Board) regulates rates, service quality, and major contracts. Vermont’s population and geography cannot support multiple competing retailers duplicating billing, call centers, and margin on a single statewide wires network — the economics mirror other small New England states that stayed regulated.
Green Mountain Power functions as a regulated monopoly for its service territory. Policy levers — renewable standards, energy efficiency funding, net metering rules, and integrated resource planning — substitute for retail choice. For many customers, the practical “choice” is how much efficiency and onsite solar to deploy, not which licensed seller prints the bill.
States Where You Can Shop for Electricity
Vermont’s model is heavy regulation plus aggressive efficiency and renewables policy. If you want competitive retail supply, you typically need a larger deregulated market:
Texas · Pennsylvania · Ohio · Illinois · New York · New Jersey · Connecticut · Maryland
Neighbors for rate context (regulated Northeast markets): New Hampshire, Massachusetts, Maine. See which states have electricity choice →
Vermont Business Electricity Rates & Load Profiles
Commercial rates near 18.9¢/kWh affect industries statewide. Vermont’s economy mixes tourism, food manufacturing, precision manufacturing, and agriculture — each with distinct load shapes.
- Tourism / skiing: Stowe, Killington, Sugarbush, and other resorts drive large winter loads from snowmaking, lifts, and base lodges. Municipal utilities in resort towns (e.g., Stowe Electric) plan around those peaks.
- Food & beverage: National brands like Ben & Jerry’s (Waterbury), Cabot Creamery, and Lake Champlain Chocolates join a dense craft beer scene — Vermont often leads the U.S. in breweries per capita. Refrigeration, kettles, and packaging lines add steady industrial demand.
- Tech & manufacturing: The sector is smaller than in major metros but includes GlobalFoundries in Essex Junction — Vermont’s largest private employer — a semiconductor fab with extremely high-quality power requirements and significant load.
- Agriculture: Dairy remains iconic; Vermont is the #1 U.S. producer of maple syrup. Milk cooling, sugarhouse evaporation, and cold storage create seasonal and daily peaks across rural co-op territories served by VEC and others.
Businesses typically pair efficiency upgrades (often leveraging Efficiency Vermont incentives) with on-site solar where interconnection rules and roof space allow.
How to Lower Your Vermont Electricity Bill
At 21.35¢/kWh, every saved kilowatt-hour matters — even though typical dollar bills are moderate because households use less electricity than the national average. Focus on efficiency first, then onsite generation.
Efficiency Vermont
Start with the nation’s first efficiency utility. Rebates on insulation, appliances, lighting, and commercial processes are structured to reduce peak winter demand and year-round baseload. Efficiency Vermont is the model other states copied — use it.
Solar & Net Metering
Vermont has supported robust distributed solar with net metering rules that made rooftop PV attractive for many customers (policy details evolve — confirm current compensation with your utility). Pair solar with cold-climate heat pumps to shift heating kWh off propane and oil.
Wood, Weatherization & Heat Pumps
Vermont has a cultural tradition of wood and pellet heat that directly cuts electrical heating load. Deep weatherization pays dividends in an old housing stock. Cold-climate heat pumps are increasingly paired with efficiency work to manage winter peaks responsibly.
Frequently Asked Questions About Vermont Electricity
What is the average electricity rate in Vermont?
Vermont’s average residential electricity rate is approximately 21.35¢/kWh as of April 2026 — about 18% above the national average of 18.05¢/kWh. Commercial rates average roughly 18.9¢/kWh. Vermont is expensive for New England but not always the priciest neighbor; compare New Hampshire, Massachusetts, Maine, and New York.
What happened to Vermont Yankee?
Vermont Yankee was Entergy’s nuclear station in Vernon. It closed December 2014 after political and regulatory battles; it had provided roughly 70% of Vermont in-state generation. After closure, Vermont leaned on imports (notably Hydro-Québec), market purchases, and growth in wind, solar, hydro, and biomass. Decommissioning is ongoing under evolving plans; NorthStar Group Services plays a major role in site remediation timelines that may extend into the 2030s.
Is Vermont really 100% renewable?
Burlington reached 100% renewable electricity for city accounts in 2014 under Burlington Electric Department’s portfolio — a national first for a city. Statewide, Vermont follows a Renewable Energy Standard with tiered milestones (for example, Tier 1 moving toward 75% renewable by 2032 alongside other tiers) rather than a single flip to 100% on all meters. The grid still includes gas, market purchases, and imports; the mix is greener than decades ago but not literally 100% on every electron for every customer.
Why are Vermont electricity rates high?
Rates reflect the smallest grid in the lower 48, New England transmission and capacity costs, post-Yankee import reliance, and substantial program spending on efficiency and renewables. Vermont’s culture of conservation keeps kWh use per household relatively low, which holds down dollar bills even when ¢/kWh is above average.
What is Efficiency Vermont?
Efficiency Vermont is the first U.S. energy efficiency utility, created in 2000. It sells negawatts — avoided consumption — through rebates and technical services for homes, farms, and businesses. It is a core reason Vermont leads national rankings in electric productivity despite high rates.
Is Vermont a deregulated electricity state?
No. The Vermont PUC regulates investor-owned and many other utilities. Retail competition has not been the mechanism for lowering bills; instead, Vermont uses integrated planning, efficiency mandates, and renewable standards.
Who owns Green Mountain Power?
GMP is owned by Energir (formerly Gaz Métro), a Canadian energy company. GMP serves on the order of 270,000 customers — ~75% of Vermont.
How does Vermont get electricity after Vermont Yankee?
Through a blend of regional market purchases, contracted imports (especially Hydro-Québec), and growing wind, solar, hydro, and biomass resources. McNeil and other biomass plants provide dispatchable renewable energy; gas remains a small fraction of the mix compared with many states.
What is the average monthly electric bill in Vermont?
Many households see bills near ~$115/month — below the U.S. average in dollars because kWh consumption is modest (smaller homes, efficiency, and non-electric heat in many buildings). High ¢/kWh still matters for electrifying heating and transportation.
About this Data
Rate data is sourced from the U.S. Energy Information Administration (EIA), the Vermont Public Utility Commission, Green Mountain Power, Burlington Electric Department, Efficiency Vermont, and the ElectricChoice.com electric rate marketplace. Last data refresh: April 2026.
