Plan Designed to Protect Manufacturing Jobs in Vermont and Provide Greater Certainty to GMP Customers and GLOBALFOUNDRIES
COLCHESTER, Vt. – Green Mountain Power (GMP) today announced an agreement with GLOBALFOUNDRIES® (GF)® to support its petition to the Public Utility Commission to become a self-managed utility at its Essex manufacturing site starting in 2023. If approved, GF would directly manage its own transmission connections, distribution system, and power supply costs according to its own goals,needs and operational standards. The agreement is aimed at strengthening GF’s position in Vermont with its nearly 2,200 manufacturing jobs, while also helping to protect all other GMP customers from rising costs. The plan is subject to regulatory review and approval.
“We know the tremendous value GF provides to the Vermont economy, and that’s why we’re supporting this collaborative solution to help strengthen GF’s Vermont operations while protecting our other customers from cost impacts,” said Mari McClure, president and CEO of GMP. “For decades, we’ve worked closely with IBM and now GF to ensure they can thrive in Vermont with competitively priced power. No other customer comes close to the size and energy load of GF, so we’ve used innovative models and existing regulatory guidelines that recognize the uniqueness of this facility.”
The loss of GF power usage in Vermont could have a negative impact on all Vermont electricity customers. This proposal is designed to provide a lasting solution that will help GF manage its own costs and risks in line with its other manufacturing facilities in the U.S. and worldwide, and will allow GMP and Vermont Electric Power Company (VELCO), Vermont’s transmission provider, to minimize any impact on the rest of Vermont.
“We appreciate the close collaboration with GMP and VELCO on this important initiative, which will help GF conduct business more affordably in Vermont,” said Pradip Singh, vice president and general manager of GF Fab 9. “As the state’s largest private manufacturer, GF consumes more electricity than any other single customer of GMP, and this agreement allows us to remain globally competitive by positioning GF for future investments in equipment and personnel.”
GF is the largest electricity customer in Vermont by more than double, and if approved, it would become the third largest utility in the state behind GMP and VEC. Due to its size, GF has for years been the only customer in the State of Vermont in the “transmission class” of electricity service, meaning it takes service at a higher voltage than all other customers in addition to owning, maintaining and investing in its own transmission and distribution system. This uniquely positions GF to take on the responsibilities of becoming its own utility, directly serving only the plant’s needs.
This agreement protects customers from economic impacts through a four-year transition period. During this time, GMP will supply GF’s electricity needs through a power purchase agreement, and GF will also pay a $15.6 million transition fee to benefit GMP customers by offsetting most of the costs associated with the transition. After the transition period, GF will be served directly by VELCO and will also establish a $700,000 fund so VELCO can manage any transmission cost changes to other utilities due to GFbecoming its own utility. During the transition period, GF will continue its corporate and site-specific renewable and carbon-free energy purchases planning and continue and expand energy efficiency investments at the facility, which have been significant over the years.
“This proposed change makes important strides to meet the unique needs of GF, which plays a critical role in Vermont’s economy,” said Lisa Ventriss, president of Vermont Business Roundtable. “Kudos to GMP and GF for their work to reach an agreement that will give the company greater control over its energy portfolio, and to stay competitive in the global markets in which they operate. At the same time, this proposal importantly aims to serve GMP’s remaining residential and business customers by creating greater certainty and stability, which is so important to Vermont’s economic recovery from the pandemic.”
The details of the proposal filed with Vermont Public Utility Commission will also be in the regulatory section of GMP’s website.
About Green Mountain Power
Green Mountain Power (GMP) serves approximately 266,000 residential and business customers in Vermont and is partnering with them to improve lives and transform communities. GMP is focused on a new way of doing business to meet the needs of customers with integrated energy services that help people use less energy and save money, while continuing to generate clean, cost-effective and reliable power in Vermont. GMP is the first utility in the world to get a B Corp certification, meeting rigorous social, environmental, accountability and transparency standards and committing to use business as a force for good. GMP earned a spot-on Fast Company’s Most Innovative Companies in the World list four years in a row (2017, 2018, 2019, 2020). In 2019 GMP was honored by the Vermont Chamber of Commerce and Vermont Business Magazine with the Deane C. Davis Outstanding Vermont Business of the Year Award.
Kristin Kelly, Green Mountain Power
We know the tremendous value GLOBALFOUNDRIES provides to the Vermont economy, and that’s why we’re supporting this collaborative solution to help strengthen GLOBALFOUNDRIES’ Vermont operations while protecting our other customers from cost impacts.Mari McClure, GMP President and CEO