Energy Reduction Goals

February 17, 2023



In June 1999, Vermont enacted legislation authorizing the Vermont Public Utility Commission to establish a volumetric charge on all electric customers’ bills to support energy efficiency programs and goals. The subsequent year the PUC established Efficiency Vermont, a statewide “energy efficiency utility (EEU),” and a funding mechanism to support it. Efficiency Vermont is currently administered by Vermont Energy Investment Corporation (VEIC), an independent, non-profit corporation. In December 2010, the Efficiency Vermont contract structure was replaced with a franchise-like "Order of Appointment" structure with a duration of 12 years. In 2011, Vermont's Public Utility Commission issued the City of Burlington Electric Department (BED) an "Order of Appointment" and designated it as an EEU. Four years later the same was done for Vermont Gas Systems, Inc. (VGS).

There is no explicit penalty for non-performance. However, a portion of the compensation Vermont pays VEIC is contingent on meeting stated goals, subject to a monitoring and verification process. If VEIC does not meet stated goals, the state will withhold compensation, and VEIC potentially will be replaced. For more information, see the PUC's website.

Electric Sales Reduction*

Efficiency Vermont and BED periodically establish certain goals that constitute an energy efficiency resource goal for the state. The current, three-year plans include the following state-wide goals during the three-year period covering 2021, 2022, and 2023.

Efficiency Vermont

  • Annual Incremental Net Savings (MWh): 263,900
  • Summer peak kW savings: 28,400
  • Winter peak kW savings: 35,500

For more information about Efficiency Vermont's reduction goals and results, see the annual reports.


  • Annual Incremental Net Savings (MWh): 13,937
  • Summer peak kW savings: 1,800
  • Winter peak kW savings: 2,100

For more information about BED's efficiency goals and results, see the annual reports.

Natural Gas Reduction*

VGS periodically establishes certain goals that constitute an energy efficiency resource goal for the state. The current, three-year plan includes state-wide goals during the three-year period covering 2021, 2022, and 2023. VGS has a total annual savings goal of 239,650 (Mcf).

For more information about VGS, see their website.

Program Administrator Type

The programs intended to meet Efficiency Vermont's goals are administered by VEIC. However, BED serves as the energy efficiency utility for its service territory, under separate authorization from the PUC. The programs offered to customers are aligned, but the goals are different. VGS provides natural gas EEU services in its service territory.

Cost Effectiveness and Program Evaluation

Vermont uses the Societal Cost Test (SCT), one of the five "California tests" from the California Standard Practice Manual, as the primary test for evaluating its energy efficiency programs. 

*Follow the directions under the "Annual Plans" section to search for EEU Triennial Plans as they subsequently get updated.

Program Overview

Implementing Sector: State
Category: Regulatory Policy
State: Vermont
Incentive Type: Energy Efficiency Resource Standard
Web Site:
Start Date:
Eligible Renewable/Other Technologies:
  • Custom/Others pending approval
Electric Sales Reduction: 263,900 MWh (Efficiency Vermont's Annual Incremental Net Savings for 2021-2023)
13,937 MWh (BED's Annual Incremental Net Savings for 2021-2023)
Electric Peak Demand Reduction: Efficiency Vermont:
Summer Peak kW Savings: 28,400 (2021-2023 Goal)
Winter Peak kW Savings: 35,500 (2021-2023 Goal)

Summer Peak kW Savings: 1,800 (2021-2023 Goal)
Winter Peak kW Savings: 2,100 (2021-2023 Goal)
Natural Gas Sales Reduction: 239,650 Mcf (VGS' Total Annual Savings for 2021-2023)
Rate Impact Parameters: N/A


Name: 30 V.S.A. § 209


Name: Energy Efficiency Utility Program
Address: 112 State St
Montpelier MA 05620

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.