THE VERMONT CLEAN HEAT STANDARD

Many Vermont heating fuel companies provide their customers with an opportunity to lock in a fixed price per gallon for the next winter. These popular price protection plans are typically sold in the late spring and summer. These programs provide price stability and, in most years, lower costs than if the fuel was purchased during the colder, winter months.

However, uncertainty around Act 18, also known as the "Affordable Heat Act," has given some cause for concern.

As required by Act 18, the Public Utility Commission is now designing a Clean Heat Standard which requires heating fuel sellers to pay a "Clean Heat Credit Fee" on sales of heating oil, kerosene, and propane. It’s not known how much this will cost, but some estimates are as high as 70-cents per gallon. It is also not known when this fee will be implemented, but it could be applied to gallons sold as early as January 1, 2025.

It is nearly impossible for dealers to lock in rates for their customers while complying with Vermont’s guaranteed price law if they are uncertain of their fixed costs.

We expect the Public Utility Commission to soon issue a ruling on the earliest possible date for the Clean Heat Fee to go into effect. Meanwhile, the Legislature could decide whether to implement the fee or abandon the program next January.

Check back here for more updates on the Vermont Clean Heat Standard.