Vermont regulator: federal tariffs, offshore wind uncertainty and FERC moves are raising costs and complicating planning
October 31, 2025 | Environment & Energy, HOUSE OF REPRESENTATIVES, Committees, Legislative , Vermont
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Kerrick Johnson, commissioner of the Vermont Department of Public Service, warned lawmakers that recent federal policy shifts and tariff actions are increasing costs across the state’s energy system and creating uncertainty for utilities and developers.
“It's just mercurial. It's very hard to predict,” Johnson told the House Committee on Energy and Digital Infrastructure, describing federal programs and orders as volatile and hard to pin down. He said tariffs on steel, aluminum and similar materials have “a direct impact on materials for grid investments,” and that different manufacturers and utilities are absorbing that cost in different ways, making statewide quantification difficult.
Johnson said Hydro‑Québec supplies roughly 18%–22% of Vermont’s power under long‑term contracts and that small adjustments to cross‑border permits (he cited an 8‑megawatt requested increase) are handled through Vermont Public Utility Commission processes. But he warned the committee that political and permitting headwinds facing imports from Canada have increased transaction complexity.
The commissioner also highlighted fallout from earlier federal action affecting offshore wind. He cited the Revolution Wind project — briefly subject to a federal stop‑work order when it was about 80% complete — as an example of how permitting reversals raise market risk and increase financing costs. “When something like that happens, it sends a message to the market,” Johnson said, noting higher risk premiums translate into greater forward costs that can flow to customers.
On interconnection and transmission, Johnson described a recent Department of Energy filing at the Federal Energy Regulatory Commission proposing a new FERC‑managed interconnection category for very large (gigawatt‑scale) projects. He said the proposal seeks to accelerate approvals but raises questions about federal preemption and the balance between state and federal siting roles.
Transmission costs are a growing component of customer bills, the commissioner said. “Right now, it’s back up to the 25% portion of a customer’s bill,” he said, and described regional cost‑allocation disputes that the Department is trying to address through New England collaboration and regional processes.
Johnson urged the committee to focus on Vermont priorities — affordability, resilience and workforce — even as the state navigates federal uncertainty. He highlighted weatherization as a “no‑regret” investment and said the Department is pursuing regulatory proceedings, regional RFIs and resilience dockets to protect ratepayers while maintaining reliability.
Quotes in this article come from Johnson’s briefing and from Department staff testimony to the House Committee. The article draws on the commissioner’s remarks and the Department’s account of trends and programs presented at the hearing.
“It's just mercurial. It's very hard to predict,” Johnson told the House Committee on Energy and Digital Infrastructure, describing federal programs and orders as volatile and hard to pin down. He said tariffs on steel, aluminum and similar materials have “a direct impact on materials for grid investments,” and that different manufacturers and utilities are absorbing that cost in different ways, making statewide quantification difficult.
Johnson said Hydro‑Québec supplies roughly 18%–22% of Vermont’s power under long‑term contracts and that small adjustments to cross‑border permits (he cited an 8‑megawatt requested increase) are handled through Vermont Public Utility Commission processes. But he warned the committee that political and permitting headwinds facing imports from Canada have increased transaction complexity.
The commissioner also highlighted fallout from earlier federal action affecting offshore wind. He cited the Revolution Wind project — briefly subject to a federal stop‑work order when it was about 80% complete — as an example of how permitting reversals raise market risk and increase financing costs. “When something like that happens, it sends a message to the market,” Johnson said, noting higher risk premiums translate into greater forward costs that can flow to customers.
On interconnection and transmission, Johnson described a recent Department of Energy filing at the Federal Energy Regulatory Commission proposing a new FERC‑managed interconnection category for very large (gigawatt‑scale) projects. He said the proposal seeks to accelerate approvals but raises questions about federal preemption and the balance between state and federal siting roles.
Transmission costs are a growing component of customer bills, the commissioner said. “Right now, it’s back up to the 25% portion of a customer’s bill,” he said, and described regional cost‑allocation disputes that the Department is trying to address through New England collaboration and regional processes.
Johnson urged the committee to focus on Vermont priorities — affordability, resilience and workforce — even as the state navigates federal uncertainty. He highlighted weatherization as a “no‑regret” investment and said the Department is pursuing regulatory proceedings, regional RFIs and resilience dockets to protect ratepayers while maintaining reliability.
Quotes in this article come from Johnson’s briefing and from Department staff testimony to the House Committee. The article draws on the commissioner’s remarks and the Department’s account of trends and programs presented at the hearing.
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