Burlington Electric Partners with Vermont Bond Bank to Issue $20M Net Zero Energy and Grid Reliability Revenue Bond to Fund Critical Infrastructure, Net Zero Energy Roadmap Goals

Burlington, VT – Burlington Electric Department (BED) has issued its voter-approved $20 million Net Zero Energy (NZE) and Grid Reliability Revenue Bond through the Vermont Bond Bank as part of the Vermont Bond Bank’s Pooled Loan Program. Burlington voters approved the Revenue Bond in November 2024 when 79.6 percent voted in favor of the bond, which will support critical capital investments in a way that reduces upward pressure on electric rates.

“The Revenue Bond will allow BED to fund critical capital projects and electrification incentives that will improve reliability for our customers and help Burlington make progress toward our Net Zero Energy goal,” stated Emily Stebbins-Wheelock, CFO and Manager of Strategy & Innovation at BED. “The Bond will allow BED to continue to make climate and reliability investments through the end of the decade and increase grid capacity for more electric vehicles, heat pumps, geothermal heating systems, and other beneficial electrification technologies.”

BED plans to invest Revenue Bond funds in the following projects:

• Grid and distribution system upgrades to support growing electric loads, higher peaks, and strong reliability, including the upgrade and replacement of existing distribution assets, such as poles, transformers, and switches. These planned projects would bring BED’s grid capacity up to 90 MW from its current level of just over 80 MW.
• Technology systems upgrades, including a new customer information system, financial information system, and outage management system to support new dynamic pricing and end-use rate options, improved peak management, and improved customer service.
• Renewable generation plant upgrades, including the FERC relicensing of the Winooski One hydro facility.
• Additional public electric vehicle charging stations and electric fleet vehicles.
• Energy transformation incentives under the Tier 3/beneficial electrification provision of the Vermont Renewable Energy Standard.

By partnering with the Vermont Bond Bank for issuance of these tax-exempt bonds, BED benefited from a competitive interest rate based on the Bond Bank’s AA rating and saved substantially on costs of issuance as compared to issuing independently. Alongside its rating, the Bond Bank’s pooling of borrowers across multiple municipalities into a single larger issuance helps attract a broader investor base and supports lower rates.

“The Bond Bank was thrilled to collaborate with Burlington Electric to make this bond issuance a reality,” stated Michael Gaughan, Executive Director of the Vermont Bond Bank. “Helping BED and the City of Burlington pursue their Net Zero Energy goal aligns with our work to lower costs for Vermonters through low-cost financing for energy projects, public infrastructure, and community investment.”

In 2021, nearly 70 percent of Burlington voters approved a similar measure, passing a $20 million Net Zero Energy Revenue Bond that was issued in April 2022. That bond has helped BED invest in grid, generation, technology, and NZE infrastructure upgrades.