The percent of delinquent and foreclosed mortgages in Vermont continues to increase slowly, as the 2011 increase in non-current mortgages was 7.9 percent. The November Mortgage Monitor report released today by Lender Processing Services, Inc. (NYSE: LPS) shows that while mortgage delinquencies at the end of November 2011 were nearly 25 percent less than the January 2010 peak, the  trend toward fewer loans becoming delinquent, which dominated 2010 and the first quarter of 2011, appears to have halted. At the same time, new problem loans - those loans seriously delinquent as of the end of November that were current six months prior - have not improved significantly in the last year. This degree of stagnation indicates that while the situation is not getting markedly worse, it is not improving either, and inventories of troubled loans remain significantly higher than pre-crisis levels across the board.

The November mortgage performance data also showed both new and repeat foreclosure starts dropped sharply in November, down nearly 30 percent from the month prior. As late-stage delinquencies in the pipeline still number close to 2 million, the sharp drop is more indicative of the impact of ongoing document reviews, additional state legislation and new regulatory requirements rather than a shift in trend.

Prepayment activity - a key indicator of refinances - remained strong after several consecutive months of growth; however the October origination data showed a month-over-month drop of nearly 12 percent. While still the second highest level for the year, originations through October 2011 were down 21 percent vs. the same period in 2010 and down almost 30 percent vs. 2009. 

As reported in LPS' First Look release, other key results from LPS' latest Mortgage Monitor report include:
Total U.S. loan delinquency rate:    8.15%
Month-over-month change in delinquency rate: 2.7%
Total U.S. foreclosure pre-sale inventory rate: 4.16%
Month-over-month change in foreclosure pre-sale inventory rate:  3.0% 
States with highest percentage of non-current* loans: FL, MS, NV, NJ, IL
States with the lowest percentage of non-current* loans: ND, AK, WY, SD, MT

*Non-current totals combine foreclosures and delinquencies as a percent of active loans in that state.
Notes:
(1) Totals are extrapolated based on LPS Applied Analytics' loan-level database of mortgage assets.
(2) All whole numbers are rounded to the nearest thousand.

About the Mortgage Monitor
LPS manages the nation's leading repository of loan-level residential mortgage data and performance information on nearly 40 million loans across the spectrum of credit products. The company's research experts carefully analyze this data to produce a summary supplemented by dozens of charts and graphs that reflect trend and point-in-time observations for LPS' monthly Mortgage Monitor Report. To review the full report, visit http://www.lpsvcs.com/NEWSROOM/INDUSTRYDATA/Pages/default.aspx.

About Lender Processing Services
Lender Processing Services, Inc. (LPS) is a leading provider of integrated technology, services and mortgage performance data and analytics to the mortgage and real estate industries. LPS offers solutions that span the mortgage continuum, including lead generation, origination, servicing, workflow automation (Desktop®), portfolio retention and default, augmented by the company's award-winning customer support and professional services. Approximately 50 percent of all U.S. mortgages by dollar volume are serviced using LPS' loan servicing platform, MSP. LPS also offers proprietary mortgage and real estate data and analytics for the mortgage and capital markets industries. For more information about LPS, visit www.lpsvcs.com. 

JACKSONVILLE, Fla. - Jan. 6, 2012 -

The phone has been ringing off the hook and Magic has answered. The Magic Mountain Tube Park is officially open for the season so southern Vermont has its tube back. In a snow-starved winter so far, people are even more anxious to get outside and do something. And, besides skiing and riding, one of those things is sledding which is pretty tough to do if theres no snow in the backyard.

Magic Mountain’s Tube Park, conveniently located at the central base of the mountain will have all three lanes grooved out and ready to go starting Friday January 6th.After school from 4-7pm. Saturdays the park is open from 11am to 7pm and on Sundays from 11am to 4pm. The Alakazaam Tube Park has great viewing from the lodge and families can enjoy great food and refreshments at the Black Line Brew Pub located on the upper floor.

“We’ve been focused on making snow first on our trail system to good effect, but the demand over the New Year’s break was very high for tubing,” said Jim Sullivan, Magic Mountain’s president. “So, we
squeezed snowmaking and grooming in for the tubing as well as the ski and snowboard learning areas at the base when the temperatures dropped this week.”

Magic first opened in 1960 and will be celebrating this season its 50th anniversary of peak to bottom skiing dating from 1962, which to this day, is still one of the most exciting, challenging and authentic
Vermont ski experiences. Different than the corporate resorts, Magic has stayed true to the original Vermont ski culture. Magic skiers enjoy a mountain emphasizing natural, diverse ski terrain in an
atmosphere of shared camaraderie for the sport both on the slopes and in the lodge after a long, rewarding day. Magic has an authentic vibe because, in reality, it still remains first and foremost a ski area, not a resort and a distinctly Vermont one at that. It’s a community spirit that keeps Magic thriving for those committed ski and riding enthusiasts who want to carve their own trail and experience real
snow and obstacles that mother-nature puts on the hill. And, it’s why Magic skiers love the mountain so much that they are personally investing in the ski area via The Magic Partnership in order to
enhance and preserve it for future generations to enjoy.
January 5, 2012, Londonderry, VT
 

by Anne Galloway vtdigger.org The state’s budget shortfall has been nearly cut in half, according to new information from the Joint Fiscal Office, the Legislature’s nonpartisan fiscal research arm.

Steve Klein, the chief fiscal officer for JFO, told the House Ways and Means Committee on Tuesday that the budget gap, which had been pegged at $74.5 million in November in a consensus forecast with the Shumlin administration, had been revised downward to $46 million.

Stephen Klein, chief fiscal officer of the Vermont Legislative Fiscal Office presents budget information to the House Ways and Means Committee. VTD/Josh Larkin

Klein said Medicaid costs were $16 million less than expected and assumptions for the budget adjustment (the mid-year true up of the state budget) were $13 million lower than anticipated (in effect, base spending was flat in the first six months of the fiscal year, and the budget adjustment increase was zero).

The number of Vermonters who use Medicaid services has declined, and utilization rates have also gone down, Klein told lawmakers. JFO estimated a 6 percent growth rate for the program.

Officially, the gap forecast is still $74.5 million until the Shumlin administration confirms the numbers and agrees to consensus figures, Klein said. He called the new shortfall figure of $46 million a “placeholder number.”

Contributing factors to the gap include:
• $13.6 million use of one-time funds
• $19.6 million related to a 1 percent increase in the Medicaid match rate
• $25 million in additional pension obligations and health care costs for retired teachers and state workers
• $7 million for technology infrastructure replacement
• $8 million in transfers, $6 million to the Education Fund and $2 million from reserves
• $4 million in rest area funding pressure
• $10 million for autism treatment costs

Klein predicted that the governor would delay implementation of the “autism mandate,” a requirement that the state pay for specialized services for young children with the developmental disability. The mandate is projected to cost about $10 million annually. If the postponement occurs, the budget gap projection would drop to $36 million, according to Klein.

Klein explained that the budget shortfall projections are now calculated by JFO based on predicted total changes in expenditures rather than a straight percentage based on past budgeting. This shift caused a disconnect last fall between JFO and the administration when the two parties didn’t issue a consensus gap analysis because they had calculated the shortfall differently. JFO based its analysis on a 3.5 percent base increase; the Department of Finance and Management looked at projected pressures reported by departments in state government.

The new shortfall number came to light as part of a list of financial issues Klein suggested that House Ways and Means put on its “menu” for the session.

The chief fiscal officer told lawmakers that projected revenues for fiscal year 2013 will be $41.6 million higher than the current fiscal year.

The new revenue forecast will be presented to the Emergency Board on Jan. 18 – the week after the governor’s budget address. Klein said Shumlin will seek language from the Legislature that will give him the flexibility to salt away unanticipated revenues in reserve funds.

At this time, the state has $17 million in the Emergency Relief and Assistance Fund, which will be used to cover unanticipated Irene costs; $22 million in the Agency of Human Services caseload reserve fund, which is often used to buy down the state’s Medicaid match; $1.9 million in contingency money for federal cuts to programs; $3.88 million in a one-time setaside that kicks in when revenue forecasts exceed $10 million. The revenue shortfall reserve fund, a new “all-purpose” vehicle for reserve monies funded by the Legislature in the last session, may be reupped this year. The state also has roughly $55 million in the budget stabilization fund.

State officials say it’s crucial to have plenty of money available in reserve because of the uncertain economic environment and because Congress, in debt reduction mode, will likely reduce funding for state programs.

Other details discussed by the committee included:
*A possible sales tax for “cloud computing” revenues;
*A review of the cigarette tax, which has generated $2 million over the forecast, despite warnings from grocers and others that a 38 cent hike in the tax would depress sales and send Vermonters to New Hampshire to buy smokes;
*A change in the trigger for the Amazon tax for online sales; Rep. Jeff Wilson said he’ll introduce a bill that would mirror an agreement between the giant Internet retailer and California officials that goes into effect in 2013;
*December revenues from corporate earnings and business quarterly payments were lower than expected.

The draft release of the Picus report on Vermont’s education finance system will be on Wednesday. A public hearing on the report will be held on Jan. 9 via remote interactive television; a final report will be issued on Jan. 18. 

www.vtdigger.org January 4, 2012

Draker Laboratories, the industry's leading independent provider of turnkey monitoring solutions for commercial and utility-scale solar photovoltaic (PV) projects, today announced several key highlights and major milestones reached in 2011.

“The past year has further demonstrated the increasing role of solar PV projects in helping the United States and the world meet growing demand for renewable energy generation,” said Charles ‘Chach’ Curtis, CEO of Draker Labs. “We are proud to serve this dynamic market with our industry-leading monitoring and control solutions which allow commercial and utility-scale solar PV systems to achieve optimal performance and maximize financial returns for project developers.”

Building on its exceptional performance in 2010, Draker again achieved record growth by more than tripling its revenue in 2011. In the past year, Draker has grown its installed base to over 500 monitored sites generating over 400MW of peak power. Draker now has customer sites coast to coast across North America from New Jersey to Florida to Ontario to California. Draker customer sites range in size from 50kW commercial rooftop solar systems to 30MW utility-scale PV power plants.

Major 2011 Draker achievements included the following:

• 2nd consecutive year of greater than 250% revenue growth

• Extension of its monitoring solutions to include real-time monitoring and control of grid intertie switchgear for utility-scale PV power plants

• Successful implementation of over 100 MW of utility scale PV power plants monitoring and control systems ranging in size up to 30 MW

• Launch of the Solar Prospector™ Site Assessment System, a turnkey solar resource assessment solution for PV developers who need bankable energy projections to secure project financing

• Expansion of staff to over 50 employees with key additions in executive management, direct sales, customer support, engineering and product development

• Quadrupling of software development team to scale its database and application architectures to accelerate roll out of new services

• Relocation to larger offices in both its Vermont and California locations

• Strengthening its balance sheet with the addition of $3 million in follow-on equity financing and a new $1.5 million line facility

“2011 was a great year for solar PV project implementation and another record year for Draker,” Curtis said. “We at Draker are looking forward to an even better 2012, as we continue to serve our growing base of domestic and international customers.”

About Draker Draker Laboratories provides accurate and highly reliable monitoring solutions that help owners and operators of commercial and utility-scale PV systems maximize the efficiency and profitability of their solar assets. As a supplier of end-to-end monitoring solutions, Draker’s turnkey systems combine proven field instrumentation with an intuitive web-based data management system and unmatched customer support. For more information, please visit www.drakerlabs.com

BURLINGTON, VT – January 5, 2012 – 

Vermont Natural Coatings’ groundbreaking PolyWhey wood finishes are now available through one of the East Coast’s leading distributors of hardware, paint and building materials. The decision by Emery-Waterhouse to carry Vermont Natural Coatings’ line of wood finishes is a major step forward in the Vermont company’s exposure to consumers throughout the country.

“Our goal is to provide the highest quality professional and environmentally sound products to our dealers,” said Emery-Waterhouse President and CEO Stephan Frawley. “The durable, safe and easy to use Vermont Natural Coatings PolyWhey® products fill the bill on all counts and are an ideal profit center for our dealers.”

Emery-Waterhouse has more than 1,100 paint, hardware and building supply customers throughout New England, New York, Pennsylvania, New Jersey, Ohio, West Virginia and Delaware. The company will distribute Vermont Natural Coatings PolyWhey® interior and exterior finishes and wood cleaners.

“Our success is the result of a great product and the relationships we develop and maintain with our customers and independent dealers,” said Vermont Natural Coatings Founder and President Andrew Meyer. “Partnering with Emery-Waterhouse strengthens our dealer network and enables us to establish new relationships that will bring new customers into the Vermont Natural Coatings family.”

Vermont Natural Coatings products utilize whey protein in a patented, award winning formula that displaces toxic components traditionally found in wood finish. The company’s wood finishes are now available in 35 states.

HARDWICK, VT — vermontnaturalcoatings.com. 

In an effort to recognize and honor Vermont’s best companies, the Vermont Chamber of Commerce and Vermont Business Magazine created the Deane C. Davis Outstanding Business of the Year Award in 1990. Named for the former Governor of Vermont, this annual award honors a Vermont business that shows an outstanding history of sustained growth while displaying an acute awareness of what makes Vermont unique. 

Each year the Vermont Chamber of Commerce and Vermont Business Magazine present the Deane C. Davis Outstanding Business of the Year Award during the annual Vermont Business & Industry EXPO.  The award is given to the Vermont business that has made exceptional accomplishments on a consistent basis and demonstrated success by:

• Continued growth in number of employees and/or sales;
• Commitment of company resources, including employees, to community projects;
• Recognition of the environment as a natural and economic resource for Vermont; and
• Creation of a positive work environment for all employees.

The finalists will be announced in the May edition of Vermont Business Magazine and the winner will be announced during the opening ceremonies of the Vermont Chamber’s Vermont Business & Industry EXPO on Wednesday, May 23, 2012.

Nominees and applicants are encouraged to complete the 2011 Deane C. Davis Award Nomination Form online at: http://www.jotform.com/form/13424041985 . Hardcopy forms are available upon request. Please contact Lisa Goodell atlgoodell@vtchamber.com, (802) 262-0147.

Application deadline: 3/2/12

In January 1987, Vermont Business Magazine ran its first Vermont 100, predicated on 1986 revenues. Since then there have been only three companies that have been Number One: National Life Group, C&S Wholesale Grocers and Fletcher Allen Health Care. This year another will join that exclusive list and it comes as no surprise that it is Green Mountain Coffee Roasters Inc, which nearly doubled its revenues in just the last year. Indeed, over the course of 25 years, GMCR is the fastest growing company as well. VBM is also celebrating its 40th anniversary this year.

The full Vermont 100+, with growth charts and industry-specific subcategories, once again appears in the January issue of Vermont Business Magazine. To go along with the rankings, we have profiles of every company that has appeared on the list every year. We also have re-published the top 20 rankings from 25 years ago, as well as from 20,15,10 and 5 years ago. The reader will notice how traditional manufacturing and construction firms still play a vital role in the economy, even with the emergence of high-tech companies. 

Source: Vermont Business Magazine. January 2012. Based on $3 million in revenues or more. 

WageWorks Inc, a leading on-demand provider of tax-advantaged programs for consumer-directed health, commuter and other employee spending account benefits from California, today announced that it has acquired the operating assets of Choice Strategies, a pre-eminent administrator in the tax-advantaged, consumer-driven health care space based in Waterbury Center. A purchase price was not divulged. Choice Strategies reported 2011 revenues of $12.4 million in the January 2012 issue of Vermont Business Magazine's Vermont 100+ (LINK). Choice Strategies services more than 5,000 employers primarily in the New England, New York, New Jersey and Mid-Atlantic regions. 

Choice Strategies serves the needs of employers and their participants with pre-tax benefits services that include HRA, FSA, HSA and commuter account benefits.  Working with brokers, general agents, health plans and other strategic partners, Choice Strategies is renowned for its ability to design and administer complex HRA plans on behalf of employers of all sizes. Choice Strategies will now operate as "Choice Strategies, a division of WageWorks." 

"Choice Strategies further solidifies our position in the consumer-directed benefits industry," said Joe Jackson, CEO, WageWorks, "as we continue to expand our comprehensive suite of employee spending account benefits."

''Choice Strategies will benefit from the extensive expertise, technology, and service resources WageWorks has to offer as a leading national administrator," said Jay Hunter, CEO, Choice Strategies. "Together, we can leverage our platforms, experience, and broader portfolio of solutions to help the employers, participants, brokers, and agents that we serve."

Choice Strategies will continue to service its employers, members, general agents and broker network out of its Vermont facility.  Over time, Choice Strategies' clients will enjoy access to additional capabilities, products and technologies offered by WageWorks.

About WageWorks 
WageWorks, Inc. is a leading on-demand provider of tax-advantaged programs for consumer-directed health, commuter and other employee spending account benefits, or CDBs, in the United States. We administer and operate a broad array of CDBs, including spending account management programs such as health and dependent care Flexible Spending Accounts, or FSAs, Health Savings Accounts, or HSAs, Health Reimbursement Arrangements, or HRAs, and commuter benefits, such as transit and parking programs.

Our corporate headquarters are located in San Mateo, California. We have additional facilities in Arizona,California, Colorado, Florida, Kansas, Michigan, New York ,Wisconsin, and now Vermont. For more information, please visit our website at www.wageworks.com.

SOURCE WageWorks, Inc.  SAN MATEO, Calif., Jan. 9, 2012 /PRNewswire/ -- 

Seeking to recover costs resulting from Vermont Yankee cooling tower failures in 2007 and 2008, the state's two largest distribution utilities have filed a lawsuit against Entergy-Vermont Yankee (Entergy) in Vermont Superior Court in Windham County.

"This case arises out of Entergy's breach of its contractual obligation to use 'Good Utility Practice' in its management and operation of the Vermont Yankee Nuclear Station," Central Vermont Public Service and Green Mountain Power said in a joint statement today. "Entergy's failure to implement and exercise sound practices with respect to the maintenance, repair and improvements of the facility's cooling towers caused tower failures in August 2007 and July 2008. The failures resulted in significantly reduced power output, which in turn deprived us of power due to us and our customers at specified, below-market prices."

In the first instance, a tower failure on Aug. 21, 2007 caused the plant to reduce output by 65 percent for 11 days. A subsequent Nuclear Regulatory Commission investigation blamed the failure on over-tightened bolts and salt and fungal degradation that went undetected by Entergy. The NRC found the failure to find the problem was the result of Entergy's reliance on "remote" inspections, rather than direct, hands-on inspections.

"In failing to carry out hands-on inspections, Entergy failed to take into account considerable and relevant industry operating experience that had previously identified the importance of that kind of direct examination," CVPS and GMP said. "That led directly to the first tower failure."

In the second tower failure in July 2008, the plant reduced output for 12 days. This failure was caused by failed pipe supports within the tower. In both cases, CVPS and GMP contend that Entergy's failure to use "Good Utility Practice" led directly to the failures.

"The failures and omissions of Entergy in managing and operating Vermont Yankee led directly to both tower failures," the companies said. "This was a clear breach of Entergy's obligations under its power purchase agreement with CVPS and GMP."

The companies are seeking compensatory damages of $6.6 million to cover increased power costs and lost capacity payments resulting from the tower failures, plus interest and all legal costs.

"We filed this action only after lengthy efforts to reach a settlement with Entergy," the companies said. "Due to the statute of limitations and Entergy's failure to accept responsibility for its failures and contract breaches, we reluctantly must take this action now."

The companies have requested a trial by jury.

In response, Larry Smith, Manager of Communications at Entergy Nuclear Vermont Yankee, said the company had no comment, as it is pending litigation.

COLCHESTER, VT--(Marketwire - January 10, 2012) -

 
Application due January 20, 2012
Applications are now being accepted for the 2012 Governor's Awards for Environmental Excellence. The annual awards honor the actions taken by Vermonters to conserve and protect natural resources, prevent pollution and promote sustainability.

Applications are encouraged from:

• Business, Industry, and Trade or Professional Organizations
• Environmental, Community, and Non-Profit Organizations
• Individual Citizens
• Institutions (such as schools, hospitals, and municipalities)
• Teachers and Students
• Public Agencies

Applications must be received electronically, no later than Friday, January 20, 2012. Application materials are available on the Internet Click HERE for application link. For questions or to obtain email copies of the application, contact Emma Schumann at emma.schumann@state.vt.us, 802-241-3600.

Sponsored by:

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Larry Sudbay, President and Chief Executive Officer of SymQuest® Group, the region’s leading provider of network and document technology solutions and services cut the ribbon on their new 2,800 sf Network Operations Center (NOC) today.

The NOC is the control center for SymQuest’s 25 top-level engineers who monitor their clients’ networks to manage and remediate both proactive and reactive service requests. Sudbay spoke about the sheer volume of requests that come in to the company on a daily and yearly basis.

“Today we commemorate the unification of our employees in the service fulfillment of technology requests from our new and secure headquarters location at Technology Park, South Burlington, Vermont,” said Sudbay prior to cutting the ribbon. He then went on to detail the support the company provides to their 2500 clients spanning from the Adirondacks of New York to the Seacoast of Maine.

SymQuest is currently interviewing to fill 8 open positions at their South Burlington location and anticipates adding 65 positions across their territory within the next three years. For more information about SymQuest® and The SymQuest Way, please visit www.SymQuest.com or call (800) 374-9900.

The SymQuest Group, Inc. maximizes the potential of technology in the business place, and offers networking and document management solutions with:

•     Computer-network design and installation

•     Network support and performance monitoring

•     Kyocera and Canon copier sales, service and supplies

•     Kyocera and Hewlett Packard printer sales, service and supplies

•     Digital document storage and retrieval

For more than a decade, SymQuest Group, Inc., headquartered in South Burlington, Vermont, (with additional offices located in Rutland, Vermont; Keene and West Lebanon, New Hampshire; Plattsburgh, New York; and Portland, Maine) has upheld its reputation as an affordable and accessible network infrastructure and document solutions technology services company; working extensively with small businesses, as well as larger enterprises. SymQuest Group, Inc. focuses on highly-customized and accessible customer service, innovative document solution programs, and the crafting of high-availability infrastructure solutions. United by the pursuit of excellence in information management, service and corporate responsibility, SymQuest’s experienced people, refined processes and best of technology keep its clients out front.

SymQuest New Network Operations Center Opens 1-10-12.
photo: Matt Gadouas  

For the 6th year Vermont surpassed the 40 new captives licensed mark with 41 new captive insurance companies in 2011 bringing the total number of licenses to 952, according to data released by the Vermont Banking, Insurance, Securities and Health Care Administration (BISHCA).

Thirty were single parent captives, with six risk retention groups (RRG), three sponsored, one industrial insured, and one association. 2011’s new captive insurance licensees brings Vermont overall total to 952 with 590 active captive insurance companies.

“One of the most exciting aspects of 2011 and a perennial key to our success is the high quality of companies that we are privileged to work with,” said David Provost, Vermont’s Deputy Commissioner of Captive Insurance.  “We’re also seeing the State’s continued investment in staff helping us continue to provide outstanding customer service.  That’s very much a part of what keeps Vermont the Gold Standard.”

Despite the soft market each quarter of 201l had steady growth.  “This strong year is testimony to our continued commitment to maintain Vermont’s reputation as the Gold Standard of domiciles,” said Governor Peter Shumlin.  “While other states continue to falter, Vermont’s stability and support has never wavered. We will continue to address the needs of the industry going forward and will not rest on our laurels.”

The top industries licensing captives in the past year in Vermont were insurance, hospitals and medical groups and manufacturing.  Vermont was also busy with activity in risk retention groups which continue to be a growth sector.

“Vermont is the leader in RRG’s and that trend has been a constant. Another area of growth has been in redomestications of existing captives from other states and jurisdictions.  We continue to hear that Vermont provides the greatest value for your captive insurance company,” said Daniel Towle, Director of Financial Services.  
As 2012 begins, two new captives have been licensed and there are already four applications pending according to Towle.  “The overall market may be soft, but it is also very dynamic and we expect good things to come from 2012.”

Captive insurance is a regulated form of self insurance that has been around since the 1960’s, and has been a part of the Vermont insurance industry since 1981, when Vermont passed the Special Insurer Act.  Captive insurance companies are formed by companies or groups of companies as a form of alternative insurance to better manage their own risk.  Captives are typically used for corporate lines of insurance such as property, general liability, products liability, or professional liability.   Growth sectors of the captive insurance industry include securitization, professional medical malpractice coverage for doctors and hospitals, and the continued trend of small and mid-sized companies forming captive insurance companies.

Montpelier, VT – January 10, 2012 – www.vermontcaptive.com 

by Alan Panebaker vtdigger.org In legislative committees on Natural Resources and Energy this session all the buzz is about two bills that would require mandatory renewable portfolio standards. Until now, Vermont utilities have voluntarily purchased renewable energy; the utilities receive credits verifying that the power is renewable and then they sell most of those renewable energy credits to other utilities out of state.

Under several new bills before the legislature utilities would no longer be allowed to sell as many renewable energy credits to other utilities out of state. Other New England states mandate that utilities to show they have a certain amount of these renewable energy credits. Vermont doesn’t require that utilities retain the credits.

Searsburg wind towers, courtesy GMP

A renewable portfolio standard is a mechanism that requires electric utilities to supply customers with a certain amount of “renewable” power. If utilities do not produce a set percentage of renewable power in their total load, or “portfolio,” they are required to pay a fine essentially known as an alternative compliance payment.

According to the Federal Energy Regulatory Commission, 29 states and the District of Columbia have renewable portfolio standards and goals. Vermont is the only New England state without one.

Although a statute has been on the books since 2005, utilities have not been required to purchase “renewable” energy per se. Instead, the state set goals, and if utilities do not meet them, a mandatory renewable portfolio standard kicks in in 2013 if utilities did not meet these goals.

Vermont’s approach encourages developers to build renewable energy projects like wind and solar farms without requiring utilities to keep what are called Renewable Energy Certificates, or “RECs.”

When a renewable electric generation project sells electricity, it sells the juice — and it sells the value of the credits separately. These “green” credits are basically a label that utilities buy with the power to verify it meets “renewable” standards set by a state.

The proposed Vermont legislation is slated to shake up the whole system by requiring utilities to keep some of the credits, which they currently sell to other states.

Paul Belval is an attorney in Connecticut whose firm Day Pitney is counsel to the New England Power Pool, the organization that owns and operates the renewable energy credit system in the region.

Belval compares the regional transmission grid to a bucket of water. You can poke a bunch of holes in the bottom of the bucket and drain it into cups, but you cannot pinpoint the exact hole the water came from. In a similar fashion, it is essentially impossible to determine where power comes from once it reaches the grid. Enter the RECs. When someone buys power from a generator, they also buy the RECs. This is a way of accounting for how much renewable energy there is out there.

“The whole issue here is in an integrated transmission system, it is not possible to know which electrons come from which generator,” Belval says.

This is where Vermont comes in. The state’s Sustainably Priced Energy Enterprise Development program encourages utilities to obtain a percentage of their power from qualifying renewable energy projects in the state. The utilities can then sell the credits to other states, and in the majority of situations, this is what happens. The energy counts toward the SPEED program, and utilities can sell the RECs for cash to other states.

Everyone wins, right? Not quite.

Kevin Jones, Smart Grid project leader for the Institute for Energy and the Environment at Vermont Law School, says this double counting is a sham.

“The fundamental problem with the SPEED program is it’s a brown power program, not a green power program because it encourages utilities to sign contracts with renewable energy developers, then it allows them to sell the RECs out of state rather than to keep them for their customers’ benefit,” Jones says.

Jones, who said he does not represent the law school’s position, has been an outspoken critic of the program.

“Traditionally what states have tried to do is to allow their customers to purchase clean renewable energy,” he says. “In order to do that, the RECs must be procured and retired for the benefit of customers.”

Allowing renewable energy to be counted once for SPEED and once for a renewable portfolio standard undermines the confidence of Vermont consumers who think they are buying green power, when it is technically “brown” power from the grid — meaning it comes from coal, nuclear or some other nonrenewable source, according to Jones. If Vermont is going to allow utilities to sell RECs to Massachusetts and Connecticut (where the majority end up), it should not call the SPEED program a renewable energy program, he says.

“If the goal of the SPEED program is to procure renewable energy for use by Vermonters, that goal is not achieved, given sale of Renewable Energy Credits out of state,” Jones said. “If the goal is to procure brown power for Vermonters at high rates but provide cash payments to in-state renewable developers, then the SPEED program is very successful.”

If Vermont really wants to procure renewable energy for its residents, it needs an renewable portfolio standard, Jones says.

The Costs and the Compromises

Despite its critics, for utilities, like Green Mountain Power, the Vermont system has been successful, says spokesman Robert Dostis.

The SPEED program requires utilities to enter contracts with developers who are building renewable projects, providing them some level of certainty that they will be able to pay off the costs of construction.

“SPEED is working,” Dostis says. “If the goal of a renewable portfolio standard is to promote more renewable generation, SPEED has worked very effectively to do that.”

Selling the credits out of state also helps keep rates down for Green Mountain Power customers, Dostis says. If the goal is to claim renewable energy credits, he says, there are cost implications.

The value of the Renewable Energy Credits is not chump change. Dostis says value RECs for projects that will go online in 2013 are worth about $10 million in today’s market. If the utility had to retire those RECs, it would represent a 4 percent rate increase for customers, according to calculations from the utility.

The catch for utilities is that once they sell the RECs, they cannot call the power renewable any more under Federal Trade Commission rules called Green Guides. Once they are sold, even though the power might be bought from a wind farm, it is technically “brown” power off the grid made up of some amalgamation of fossil fuels and nuclear. It is also cheaper.

If the state implements a renewable portfolio standard, power from new projects like the controversial Kingdom Community Wind project in Lowell and the Granite Reliable Power Windpark in New Hampshire would be more expensive since the utility could not sell the credits, Dostis says.

Some power in the state is technically “renewable” already. For example, Green Mountain Power has a program where customers can opt to pay more and retire the RECs. Otherwise, they are sold to other New England states.

John Spencer facilitates the SPEED program under an appointment from the Public Service Board. He gave testimony last week along with many others. Spencer says most, but not all, credits from SPEED projects like Sheffield Wind are sold to Massachusetts or Connecticut.

Spencer emphasizes that he is neutral on whether the state should shift to a mandatory RPS. One advantage that it will lose, he says, is the ratepayer cost savings.

“I think as a theoretical policy issue, people like a renewable portfolio standard,” Spencer said. “It’s complex. It’s global. It’s very enticing to them for those reasons. From a practical standpoint, the State of Vermont is already doing a good job of incentivizing development of renewable power.”

After all, utilities could choose to retire the RECs in state to retain the environmental attributes. The just don’t.

The Vermont Department of Public Service and the Public Service Board have weighed in as well.

In the Comprehensive Energy Plan, released in December, the department recommended a renewable portfolio standard with a 75 percent renewable goal by the end of a 20-year period.

Department of Public Service Commissioner Liz Miller said including all “renewable” sources in the 20-year target rather then making distinctions between different types (for example large versus small or new versus old) would help smooth the rate trajectory.

“It’s an all-in suggestion by the department in the energy plan that rather than creating a number of carve-outs or technology preferences or age preferences that the Legislature instead focus on what we heard Vermonters wanted in the energy planning process,” Miller said. “That was clean energy that helps reduce greenhouse gas emissions that relies on our natural resources, rather than the system we have now where renewable energy can be built here even though the renewable credit attributes can be sold out of state.”

A renewable portfolio standard does not come cheap. In the Public Service Board report to the Legislature, it estimated a proposed RPS would cost between $311 million and $435 million above the status quo — a number highlighted by some conservative politicians and business groups as a reason not to implement an RPS.

For now, the two committees begin the process of grinding through the muck to create legislation.

Senator Ginny Lyons, D-Chittenden, is the chair of the Senate Natural Resources and Energy Committee. She introduced renewable portfolio standard legislation this session.

During a break between committee presentations, Lyons said the challenge is achieving a balance between steady electricity rates and ensuring Vermont does its share of reducing its carbon footprint.

“We want to make sure that both ratepayers and utilities are protected economically,” Lyons said. “Allowing for RECs to be used at will by the utilities may not be in the best interests long term for ratepayers, and i think that’s what we’re hearing, that we need to make adjustments.”

The critical issue, Lyons said, will be offsetting environmental effects. This means possibly redefining Hydro-Quebec as a separate tier from other renewable sources and clarifying differences between large and small projects in state as well.

Lyons said the House will most likely take the lead on introducing a renewable energy bill to the floor. 

Top Photo: AllEarth 2.2 MW Solar Farm South Burlington, Vermont Business Magazine.

January 9, 2012 vtdigger.org

Magic has always had a strong following with local Vermonters as a traditional ski area with some of the best natural terrain in the state. To show its support, Magic continues making skiing and riding as affordable as possible for Vermonters who create such a welcoming community for out-of-state visitors during the long Vermont winters. Besides keeping its normal ticket prices below $60 for everyone, Starting this week, Magic will have special Vermonter Days with reduced pricing on all non-holiday Fridays and Sundays.

Vermonters can ski all-day Fridays at Magic’s normal half-day weekday rate ($30 for adults) and get lower weekday rates ($39 for adults) on all Sundays (non-holidays).

“Many locals know that Magic is the place to ski on a powder day”, said Jim Sullivan, Magic Mountain’s president. “But, in addition, we’re trying to reach out to the local communities on a more regular basis by extending this offer and creating an affordable opportunity for Vermonters to enjoy skiing and snowboarding. We’re hoping that people who haven’t been here in years or have never been here will give us a try. I have no doubt that they will love the mountain and the relaxed, friendly atmosphere.”

And, that friendly atmosphere has been helped by improvements made to the new Black Line Brew Pub which offers excellent, affordable local Vermont dining, music and bar-scene at the top of Magic’s base lodge.

Magic first opened in 1960 and will be celebrating this season its 50th anniversary of peak to bottom skiing dating from 1962, which to this day, is still one of the most exciting, challenging and authentic Vermont ski experiences. Different than the corporate resorts, Magic has stayed true to the original Vermont ski culture. Magic skiers enjoy a mountain emphasizing natural, diverse ski terrain in an atmosphere of shared camaraderie for the sport both on the slopes and in the lodge after a long, rewarding day. Magic has an authentic vibe because, in reality, it still remains first and foremost a ski area, not a “resort”—and a distinctly Vermont one at that. It’s a community spirit that keeps Magic thriving for those committed ski and riding enthusiasts who want to “carve their own trail” and experience real snow and obstacles that mother-nature puts on the hill. And, it’s why Magic skiers love the mountain so much that they are personally investing in the ski area via The Magic Partnership in order to enhance and preserve it for future generations to enjoy.
January 10, 2012, Londonderry, VT
 

Secretary of State Jim Condos announced yesterday that seven candidates have filed petitions to be placed on the ballot in Vermont’s Presidential Primary. The deadlinie was January 9 at 5 pm.  Six candidates filed petitions for the Republican ballot and one candidate for the Democratic ballot. 

Barack Obama of Illinois was the lone Democrat filing for the March 6, 2012, Presidential Primary.

The Republicans filing petitions in Vermont are:

• Newt Gingrich of Virginia
• Jon Huntsman of Utah
• Ron Paul of Texas
• Rick Perry of Texas
• Mitt Romney of Massachusetts
• Rick Santorum of Virginia 

Vermont law requires any candidate seeking to have his or her name printed on the ballot of a major party presidential primary must file petitions signed by no fewer than 1,000 Vermont voters, along with a $2,000 filing fee.   17 V.S.A. §§2701-2702

This year, as a result of a Constitutional Amendment passed in November 2010, 17 year olds who will turn 18 by the November 6th general election, are eligible to register and vote in Vermont’s Presidential Primary.

Secretary of State, January 9, 2012

According to a draft report to the Vermont Legislature provided on January 4, Vermont’s education finance reform Acts 60 and 68 have done what they intended to do by equalizing spending from town to town by factoring out property wealth. The report indicates that some towns that have seen a marked increase in spending have also seen an increase in student performance.

Hearings on the report were held January 9 and the final submission will be presented January 18. The report (AN EVALUATION OF VERMONT’S EDUCATION FINANCE SYSTEM) given to the Vermont Joint Fiscal Office by Lawrence O Picus And Associates LLC of California states the following in its executive summary:

“The intent of this document is to provide you with our findings and to give Vermont’s education stakeholders the opportunity to review and comment on those findings. 

Our overall finding from this study is that the Vermont school funding system is working well and meeting the goals established in Acts 60 and 68. Using a series of objective measures, we find:

• Vermont’s schools benefit from among the highest levels of per pupil spending in the United States

• The state has designed an equitable system.  We found virtually no relationship between wealth (measured by both district property wealth and personal income) and spending levels

• Disparities in per pupil spending across districts meet or nearly meet well established benchmark standards for school finance equity

• The “tax price” or cost per additional dollar of education spending drives a relatively small amount of the differences in per pupil spending suggesting that the income adjustments to homestead property taxes have not led to large resource disparities

• Spending levels continue to be determined annually by each town’s voters

• Vermont’s student performance ranks among the highest in the country, although compared to other New England states, student performance is about average

• An in depth study of five schools that have shown substantial improvements in student performance over the last five years shows that Vermont schools, even those with high proportions of low income children, can produce large gains in student learning. The case studies also identified a number of promising practices for improving student performance."

The Kelly Brush Foundation awarded $100,514 in grants for spinal cord injury prevention at the end of 2011 enriching the lives of those with spinal cord injuries and furthering the foundation’s mission to improve ski racing safety, Kelly Brush Foundation President Charlie Brush announced.

The foundation granted $53,442 in Ski Racing Safety Grants to ski clubs and race teams across the country, including two grants to Vermont organizations. In addition, the Kelly Brush Individual Grant Program awarded $47,072 for adaptive athletic equipment, including a grant to a South Burlington adaptive athlete.

“Raising the bar for ski racing safety is part of the Kelly Brush Foundation’s core mission. This round of Ski Racing Safety Grants supports clubs and race teams from Maine to Idaho in their efforts to make the safety of their athletes a priority and to change the paradigm for both ski racing and training,” Brush said.

Ski Racing Safety Grants assist racing organizations in purchasing equipment that enhances safety for racers including safety netting to line race courses, padding for chair lift towers and spine protectors for racers. Fifteen clubs and organizations received Ski Racing Safety Grants ranging from $500 to Monroe County Special Olympics, in Michigan to replace old and unsafe helmets to $12,500 to the United States Ski and Snowboard Association Central Region, based in Minnesota, for safety netting to bring the entire region up to full netting on all courses.  Cochran’s Ski Area in Richmond, Vt. and Jay Peak Ski Club in Jay, Vt. received $3,000 each for safety equipment. The Jay Peak Ski Club will use its grant to enhance safety on the mountain’s race course.

“The Kelly Brush Foundation grant makes a huge difference to our small club,” said Brigitte Ritchie, treasurer of the Jay Peak Ski Club. “With only 36 racers in our program, finding funding is always a challenge. Safety equipment like netting to line courses and Willy Bags for chair lift towers is a significant expense.  We are grateful for the foundation’s assistance in helping to make our race trail the safest we can for our athletes.”

The foundation also announced the awarding of 13 Kelly Brush Individual Grants for adaptive athletic equipment. Individuals from across the United States who are living with SCI received financial assistance with purchasing equipment including monoskis and handcycles. Among the recipients was South Burlington adaptive athlete Jeremy Shortsleeve who is a three-time winner of the Keybank Vermont City Marathon and holds the course record in the handcycling division. He received $3,000 for handcycling equipment.

“Enriching the lives of those with spinal cord injury through adaptive sports and recreation is a key goal of the Kelly Brush Foundation. Specialized adaptive equipment, often customized for the individual athlete, can be cost prohibitive.  Through Kelly Brush Individual Grants, the foundation aims to remove financial barriers to participation in adaptive sports,” Brush said.

The Kelly Brush Foundation annual grants are made possible by the foundation’s primary fund-raising event, the Kelly Brush Century Ride, which is held annually in September in Middlebury, Vt. and hosted by the Middlebury College Ski Team. This past September, 24 handcyclists and 721 cyclists rode in support of the foundation’s mission and raised more than $275,000 for the foundation’s programs including adaptive equipment grants, improving ski racing safety, advancing scientific research on SCI and supporting the U.S. Adaptive Ski Team. 

About the foundation: The Kelly Brush Foundation is a non-profit organization dedicated to improving ski racing safety, enhancing the quality of life for those with spinal cord injury(SCI) through providing adaptive sports equipment, advancing scientific research on SCI and supporting the U.S. Adaptive Ski Team.  Kelly Brush, together with her family, started the foundation in 2006 after she sustained a severe spinal cord injury while racing in NCAA Div. 1 competition as a member of the Middlebury College Ski Team in Vermont. The Kelly Brush Foundation affirms Kelly’s ongoing commitment to live life on her own terms and better the lives of others living with SCI. www.kellybrushfoundation.org

IMAGE CAPTION: Kelly Brush Foundation grants assist adaptive athletes in purchasing sports gear including monoskis and handcycles. In this image adaptive athlete Chris Jefferson of Aspen, CO, competes at Copper Mountain in Colorado in December. 

SOUTH BURLINGTON, Vt. (Jan. 10, 2012) – 

by Alan Panebaker vtdigger.org One big ticket item for the state’s 2012 budget adjustment act is $30 million for graduate medical education for funding residencies and fellowships for medical students at the University of Vermont.

UVM will cover the state’s $12.76 million share of the Medicaid match, according to the Department of Vermont Health Access budget adjustment request. Federal funds will cover the rest of the $30 million total.

University of Vermont College of Medicine, courtesy of UVM.

Because of UVM’s relationship with the state, the federal government matches the money as if it came from the state. This is the first time UVM has footed the bill for payments of this type, although it is becoming a common practice in numerous other states.

According to officials from Fletcher Allen Health Care, the drawdown of federal funds will help increase Medicaid’s chronic underpayments to the hospital. In addition to services for Medicaid patients, the funding will help fund residencies at Fletcher Allen.

The funding mechanism will open up funding for safety-net programs for low-income people without dipping into state coffers. As the state’s only academic medical center, Fletcher Allen Health Care, the University of Vermont and the UVM Medical Group provide a safety net for low-income and uninsured Vermonters.

As part of an agreement with the Department of Vermont Health Access, UVM agreed to provide a quality assurance report to the state to make sure the program provides benefits to Medicaid beneficiaries. DVHA Commissioner Mark Larson said part of this is ensuring people on Medicaid have access to care.

Dr. John Brumsted, interim president and CEO for Fletcher Allen Health Care, presented the proposal to the House Committee on Health Care earlier this week.

While Brumsted noted the matching federal funding will cover some of the costs where the hospital falls short, it will not make up for the consistent Medicaid underpayments.

In addition to providing services to low-income residents on Medicaid, the funding is part of an overall effort to make sure the state has enough trained physicians, said Rep. Michael Fisher, D-Lincoln, who chairs the House health care committee. Fisher said he hopes this means more residencies for primary care physicians.

Uninsured and underinsured residents do not go to the doctor enough, Fisher said, and generally this means they do not seek treatment until health problems become more dire.

“We know we need more primary care,” he said.

Currently, about 39 percent of residency programs at Fletcher Allen are in primary care specialties like family medicine, while the rest are in other specialties like anesthesiology or orthopaedics, according to Brumsted’s presentation.

Shifting to more primary care is not as simple as going out and adding residencies, Brumsted noted in committee. Rep. George Till, D-Jericho, a physician and member of the health care committee, added that it requires attracting candidates but most medical students choose residencies in more lucrative specialties. 

January 9, 2012 vtdigger.org

Vermont Businesses for Social Responsibility (VBSR) announces the appointment of five new board members. “The staff and current board of VBSR are pleased to welcome five talented and capable people to serve on the VBSR Board of Directors. These new leaders will help VBSR continue to be a vital and positive force for socially responsible business policy and practice in Vermont”, said Andrea Cohen, Executive Director of VBSR.  Brian Dunkiel, of Dunkiel Saunders Elliott Raubvogel and Hand, and current VBSR Board Chair said,  “VBSR has just adopted an updated strategic plan and these new board members will play a critical role in ensuring that the goals are achieved.  The 2012 Board is diverse in size, sector, and geographic region. VBSR’s smart business strategies have never been stronger or more relevant to strengthening Vermont’s economy and communities” 

The five new board members include: David Blittersdorf, David Epstein, Stephen Morris, Avram Patt and Markey Read.

David Blittersdorf is the founder of AllEarth Renewables, a company dedicated to the development, manufacture and deployment of residential-scale, grid-tied renewable energy systems. He currently lives in Charlotte in a home completely powered by renewable energy sources.

David Epstein is a partner in TruexCullins Architecture and Interior Design, a long-time VBSR member He also currently serves on the board of the Vermont Foodbank and as a member of the Shelburne Historic Preservation and Design Advisory Committee.

Stephen Morris, the co-founder of The Public Press, a book-publishing business that provides options for writers whose works are too specialized for traditional publishers. He is also the editor and publisher of Green Living and the author of six books. 

Avram Patt is the General Manager and CEO of Washington Electric Co-op, a consumer-owned rural electric utility that has been an early leader in promoting energy efficiency and developing local and renewable power supply sources. He also represents an 11-state region in the resolutions process of the National Rural Electric Cooperative association.

Markey Read has worked for the past twenty years providing leadership development, team building, and professional employee development services to employers and individuals throughout Vermont with the company she founded, Career Networks. Markey is also the chapter coordinator for WBON in Williston, and is a member of the American Society of Training and Development.

The Vermont Department of Taxes (VDT) inadvertently displayed personal data from a weekly batch of Property Transfer Tax Returns for less than two hours on a vendor portion of its website on January 9th.  A computer error began a process that resulted in an extra field added to a routine public report. The social security numbers of 1,332 individuals and the Federal Employee Identification Number of 245 businesses were involved. The property transfer report is posted weekly on a data page ordinarily accessed only by real estate professionals; immediate investigation identified two of the three parties who accessed the page during the time in question, and they have destroyed the information.  VDT is working to identify the final party, who will be advised that they inadvertently received confidential taxpayer information that must be destroyed. 

The Vermont Department of Taxes is moving aggressively to ensure that taxpayers are protected from identity theft.  All affected taxpayers will receive a letter alerting them that their personal information was inadvertently disclosed.  Letters will be sent no later than Saturday, January 14th.  The letter encourages taxpayers affected by the inadvertent disclosure to take the following steps:  

• Call or email the Department of Taxes if they have questions regarding this issue.  Taxpayers may call (866) 348-4038 or email questions to Tax.DataProtection@state.vt.us  

• Check back for updates posted on our website at http://www.state.vt.us/tax/DataProtection.shtml.  The Department will also post updates through its Facebook page and Twitter account. 

• Learn more about credit monitoring, details to be set forth in the letter to individual taxpayers. 

While we are confident that the risk to affected taxpayers is small, the Department encourages taxpayers to use these resources.  

Also, the Vermont Department of Taxes is immediately reviewing all safeguards related to the disclosure of taxpayer information.  Department staff will strengthen the procedures related to the publication of this specific report.   Also, standard operating procedure at VDT requires that the Taxpayer Advocate investigate and prepare a report with recommendations after any such inadvertent disclosure.  “Safeguarding your personal information is the top priority of the Department of Taxes, and we will take every corrective action to ensure that this mistake does not occur again,” said Tax Commissioner Mary Peterson.  “I encourage all affected taxpayers to take advantage of the resources being offered to address this unfortunate error.” 

Vermont Department of Taxes Jan 10, 2012