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Bill

H 753

An act relating to utility service disconnections and ratepayer protections

2025-2026 Regular Session Introduced by Chris Morrow and 1 co-sponsor

Vermont Energy Equity Law requires the PUC to strengthen protections against involuntary disconnections, limit disconnections, and mandate planning to reduce outages for residentia

Read 1st time & referred to Committee on Finance
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WeVote Research Nonpartisan
Bill Summary · H 753

Overview

H.753 (2025-2026) from Vermont seeks to strengthen residential ratepayer protections related to utility service disconnections and to require the Public Utility Commission (PUC) to adopt enhanced rules governing disconnections, deposits, and customer protections. The bill is titled the Vermont Energy Equity Law and aims to reduce involuntary disconnections, improve reliability, and promote ratepayer protections through rulemaking and planning requirements.

Purpose and intent

  • Require the PUC to adopt by rule enhanced protections for residential ratepayers regarding involuntary disconnections.
  • Promote equity and reliability in utility service by limiting disconnections, especially for vulnerable customers, and by mandating planning to reduce disconnections.

Key provisions and changes

  1. Rulemaking by the Public Utility Commission (PUC)

    • The PUC shall, under 3 V.S.A. chapter 25, adopt rules applicable to utilities that:
      • Regulate or prescribe terms for extension of utility service, including:
      • Conditions under which deposits may be required
      • Extension of service lines
      • Terms of payment of deposits
      • Return of deposits
      • Regulate grounds for disconnecting or refusing to reconnect service
      • Regulate and prescribe reasonable procedures for disconnecting/reconnecting services and billing
    • These rules apply to gas, electric, and water utilities.

  2. Enhanced protections in Rule 3.300 (disconnections)

    • A physician’s or licensed health care provider’s certificate certifying that disconnection or failure to reconnect would cause an immediate and serious health hazard shall prevent disconnection or require reconnection, and remain in effect for the period specified in the certification unless the Commission rules otherwise.
    • No involuntary disconnections during periods of extreme heat, as defined by the Commission.

  3. Disconnection reduction planning

    • Utilities must establish a strategic and realistic plan to achieve the lowest prudently feasible number of monthly and annual involuntary residential disconnections.
    • The plan must be included in a new or revised Service Quality and Reliability Plan and submitted to the PUC for approval.

  4. Alternative regulation provisions (existing framework)

    • The bill preserves and references the current framework allowing alternative forms of regulation for electric or natural gas companies (under 30 V.S.A. § 218d(a)), with additional emphasis on performance criteria.
    • For municipal plants, municipal votes are required to approve any alternative regulation.
    • The criteria to approve alternative regulation include:
      • Incentives for least-cost energy service
      • Just and reasonable rates
      • Safe and reliable service
      • Incentives for innovation aligned with state energy policy (e.g., Vermont-based renewables)
      • Reduced involuntary disconnections
      • Balanced risk/reward to encourage efficiency
      • Fair opportunity to earn a reasonable return, with flexible structure and financial incentives

  5. Effective date

    • The act would take effect on July 1, 2026.

Who/what is affected

  • Residential ratepayers across Vermont served by gas, electric, and water utilities.
  • Utilities regulated under Vermont’s public utility framework (gas, electric, water).
  • The Public Utility Commission (PUC) as the rulemaking and oversight body.
  • Utilities that may pursue alternative regulation forms under § 218d(a), including municipal utilities and electric cooperatives, subject to regulatory and voter approval processes.

Procedural and timeline details

  • Introduced and referred to the House Committee on Energy and Digital Infrastructure; later moves included consideration by the Senate Finance Committee.
  • Notable timeline milestones:
    • First reading and referral: March 12–13, 2026
    • Favorable actions and readings through March 2026
    • Continued committee activity into spring 2026 with amendments and walk-throughs
    • Effective date set for July 1, 2026
  • The bill’s provisions require the PUC to complete rulemaking (Rule 3.300 enhancements and new planning requirements) and to integrate the new protections into its service quality and reliability oversight.

Potential impact and considerations

  • Strengthened protections for households at risk of disconnection, including health-related exemptions and temperature-extreme protection.
  • A formal process for utilities to reduce involuntary disconnections, potentially reducing service interruptions for low-income or vulnerable customers.
  • Additional regulatory requirements for deposits, reconnect rules, and disconnection procedures may affect utility billing practices and customer affordability.
  • Emphasis on service reliability and energy equity aligns with state policy goals to enhance resilience and ensure fair access to essential utilities.

If you’d like, I can provide a side-by-side comparison with current Vermont rules or draft a plain-language FAQ for consumers.

Compiled from official sources — confirm details with the bill’s official record.

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