Nov. 3--BENNINGTON -- The electrical utility serving nearly all of Bennington County is asking the state for roughly a 6 percent rate hike.

Central Vermont Public Service, the largest electrical utility in Vermont, has asked the Vermont Public Service Board to approve a 5.91 percent rate. The company said the increase will still keep its rates among the lowest of major utilities in New England.

The rate change, if approved, will take effect starting Jan. 1.

According to CVPS, the electrical bill for a residential customer who uses 500 kilowatt-hours of electricity per month would rise from $73.49 to $77.89, a difference of $4.40. The company, citing the Edison Electric Institute, said the same customer could pay as much as $105.33 elsewhere in New England.

CVPS President Bob Young said CVPS rates have risen at a fraction of the rate of inflation in the energy sector since 1999. He said the company has seen a few small increases and decreases. The utility was granted a 2.3 percent rate increase in early 2008 by the state Public Service Board.

Overall, however, Young said rates in 2010 are expected to be only 12.6 percent higher than in 1999. Based on the recent federal data, though, the Consumer Price Index for energy has increased 122 percent, according to Young.

"We have worked extremely hard to balance costs with our customers' expectations for reliability and customer service," Young said. "Despite this change, our rates will remain among

the most affordable in the region."

Young said the biggest cost drivers are transmission costs and improvements the utility has made to improve reliability. Those improvements are critical for customers, he said.

The new rates will serve as the base rates for 2010 under the utility's alternative regulation framework approved by the PSB in 2008. Under that plan, CVPS's rates are adjusted up or down each quarter to account for changes in power costs. An annual adjustment for changes in other costs and earnings is also made.

CVPS customers have received a small credit, adjusted quarterly on their bills for most of 2009 because power costs were lower than previous forecasts, Young said.

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