Barton Electric Vote

May 4, 2022

I was disheartened to learn that at their last Trustee meeting the Barton Village Trustees expressed frustration with VPPSA’s efforts to educate Barton residents. Our staff works hard every day to support Barton and has done so since the village first became a VPPSA member.

It is important for you to know that VPPSA was founded over 40 years ago specifically to assist and advocate for community-owned electric utilities. We have an obligation to provide accurate information to our member communities. When the Trustees decided to hold sale negotiations with only VEC, without our assistance, it put us in an awkward position. We had to decide whether to stay silent about the incorrect assumptions and misin­terpretations that the Barton Trustees are sharing as “facts.” We made the uncomfortable, but ethically necessary decision to make sure that Barton Electric customers understand the impact of the vote on May 10th.

Unfortunately, recent information being put forward requires additional clarifications.

Barton Trustees have acknowledged that they began discussions with VEC two years before seeking bids from other utilities. They also acknowledge entering and repeatedly extending an “exclusivity” agreement with VEC – which prohibited them from talking to anyone else. I am aware of several attempts by Orleans to open discus­sions with Barton that were rebuffed due to that exclusivity agreement. Claims now about Orleans lack of interest or unresponsiveness are simply untrue. The Trustees also express concern that if you vote “no” then Barton Electric will immediately fall into financial distress and need a 10%+ rate increase. The fact is that Barton Electric has operated for several years in its present configuration and has had net income every year. That does not need to change after May 10th regardless of how you vote.

Two important facts that voters need to understand are 1) selling to Orleans avoids any VPPSA-related costs, potentially putting several hundred thousand additional dollars in Barton village coffers, so a sale to VEC is NOT financially better for Barton village taxpayers than a sale to Orleans Electric, and 2) in the long term your electric bill is likely to be lower with Orleans Electric since Orleans currently has the second lowest residential rate in Vermont, so a sale to VEC is not better for Barton Electric customers than a sale to Orleans Electric.

One last point that I need to clarify relates to the Trustees newly found belief that revenue from Barton’s hydro­electric plant will result in the elimination of the village property tax. Their analysis fails to account for all of the costs and risks of this approach.

Keeping the hydro plant will undoubtedly bring revenue to the village, but it also brings costs. Many of those costs are presently covered by the electric department but will now become general village costs. In addition, it brings capital, operational, and regulatory risks. Risks that are now shared among all electric department cus­tomers but which will be born solely by village residents after a sale. As other municipalities with hydroelectric facilities will tell you, the revenue never goes as far as you think it will, and it varies widely.

This is not an easy conversation for us, or an easy decision for you. You are being forced to decide whether to sell to VEC in a tight timeframe, without full information, and the result will impact you, your children, and grand­children. Please know that Barton Electric will not crumble tomorrow if you decide to take more time to evaluate this important decision. A “no” vote will not preclude a future sale. It will just allow time for a full and transparent analysis and conversation.

The Trustees and VPPSA do agree on one thing. First and foremost this decision needs to be about what is best for the Barton community. When you enter the polls on May 10th please ask yourself– do you believe that giving up local control of your utility will strengthen your community? Does it feel right to give up on a 128-year-old community asset? Do you believe that all options were explored, and that you have full information?

Whatever your decision is, I urge you to vote. Your voice is important!!

Kenneth Nolan
VPPSA General Manager

April 13, 2022

As the former Chief Operating Officer at the Burlington Electric Department and current General Manager at the Vermont Public Power Supply Authority (VPPSA), I’ve helped provide affordable, reliable electric service to Vermont’s largest city and its small­est towns for the past 30-years. I’ve also been accountable for the operations of one of Vermont’s fastest growing towns as a Selectboard member in Milton for sixteen years. I know with certainty that small towns and villages can effectively operate elec­tric departments in ways that help their communities thrive.

That is why I disagree with the proposed sale of Barton Electric. When Village Trustees announced their intent to sell their 128-year old locally owned electric utility to Vermont Electric Cooperative (VEC) they pointed to the department being a “headache,” “too small,” and “too complicated.” Respectfully, I do not consider those to be reasons to sell a valuable community asset.

Wheth­er dealing with washed-out roads, broken water lines, or the effects of winter storms elected officials must always strive for the highest level of reliability, affordability, and customer service for their community. That means managing difficult circumstances.

With roughly 2,000 customers, Barton Electric is an aver­age-sized municipal utility. Nearly half of the municipal util­ities nationwide are smaller than Barton Electric, as are five of the eleven utilities served by VPPSA. VPPSA plays a role in helping those small electric utilities by centralizing services they find difficult to handle them­selves.

Aside from promoting economic development and other town goals, municipal utilities help lower fees for ser­vices (like water and wastewater treatment) and taxes for residents by routinely paying 50% to 70% of the total operating costs in towns that own them.

I do not normally comment on the decisions of elected officials in communities VPPSA serves. In this case I feel obligated to weigh in on the situation because several of the assumptions used to justify the proposed sale are suspect.

The Trustees told voters that VPPSA related costs of the sale would be $200,000 but VPPSA previously informed the Trustees that its costs related to a sale to VEC could be $600,000. A sale to Orleans would have no VPPSA related cost.

VPPSA has managed Barton’s village office for nearly 2-years while VEC has maintained the electric lines.  During that time Barton Electric has recorded an average net income of $250,000/year, an amount more than sufficient to operate the utility. After the sale, that income will go to VEC’s bottom line.

Trustees rejected a bid to purchase Barton Electric from the Village of Orleans, even though Orleans has lower rates and shorter average outage times than both Barton and VEC, and a sale to Orleans would eliminate any VPPSA related costs. As far as we can tell the bid was not seriously considered.

Barton Electric was first chartered in 1894. That decision 128-years ago stemmed from the village’s found­ing fathers understanding that a locally owned electric utility that was accountable to the community is the key to job creation, affordable rates, and reliable service.

While they knew the effort would be difficult, they did it anyway. Barton Electric could be a key to the village thriving again, if only today’s leaders had a similar commitment.

Kenneth Nolan
VPPSA General Manager