Vermont

Why is it like this in Vermont?

Vermont's residential electricity rate of about 22.6¢/kWh — among the highest in New England — reflects high transmission costs, limited local generation, and heavy dependence on Canadian hydropower. A proposed 10% U.S. tariff on Canadian energy imports would directly hit Vermont Electric Coop, which sources roughly 40% of its power from Canadian hydro, estimated to raise VEC rates by about 2%. Vermont is also advancing a 1.4¢/mile EV mileage fee (~$154/year for average drivers) to replace lost gas-tax revenue, partially offsetting any electric-mode savings. At the January 2026 baseline, electricity is modestly cheaper per mile in Vermont — though by one of the narrower margins in the country. The proposed Canadian energy tariff and pending EV mileage fee both threaten to erase that margin within a rate cycle or two.

In the news · Vermont

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  What do Canadian tariffs mean for your energy bills?

  Vermont Public · Mar 4, 2025

  Vermont Electric Coop sources roughly 40% of its power from Canadian hydropower contracts that could face a 10% Trump tariff — an exposure that, if fully passed through, would raise VEC customer rates by approximately 2%, adding to Vermont's already-elevated ~22¢/kWh average.

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  How a potential tariff on Canadian energy imports could impact Vermont

  Vermont Public · Feb 5, 2025

  Vermont regulators publicly assessed the electricity price risk from U.S.-Canada tariffs, noting that Canadian hydro accounts for a quarter or more of Vermont's electricity portfolio — uncertainty that adds a speculative upward premium to already-high Vermont electricity costs and complicates the economics of plug-in driving.

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  A new electric vehicle fee is taking shape in Vermont

  VTDigger · Mar 20, 2026

  Vermont lawmakers advanced a proposed mileage-based EV fee of 1.4¢/mile (~$154/year for the average driver) to replace lost gas-tax revenue — a cost that would partially offset the per-mile electricity savings for Vermont PHEV owners who already face some of the highest residential electricity rates in New England.

Curated coverage of Vermont's EV/PHEV cost, policy, and infrastructure story. External links open in a new tab.

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