Vermont Gas Systems

What Vermont Gas Systems does

Vermont Gas Systems (VGS) is a regulated natural gas distribution utility headquartered in South Burlington, Vermont, serving more than 56,000 families and businesses across Franklin, Chittenden, and Addison Counties in northwestern Vermont. Founded in the 1960s, the company owns and operates underground pipeline infrastructure extending from the Canadian border and operates under rate regulation by the Vermont Public Utility Commission, with rate components updated annually (access, distribution, energy efficiency) and quarterly (commodity). Its core product is natural gas distribution, supplemented by a renewable natural gas (RNG) program sourcing supply from Goodrich Farm in Salisbury, Vermont (anaerobic digester), a Quebec landfill, and an Iowa wastewater treatment plant, with customers able to purchase blended or locally sourced RNG attributes at 10%, 25%, 50%, or 100% of usage.

The company has expanded beyond commodity distribution into an integrated energy services portfolio. Through its Clover Energy sub-brand, VGS sells and leases ductless mini-split, centrally ducted, and heat pump water heater systems as hybrid complements to gas heating. It offers water heaters, furnaces, boilers, and conversion burners for purchase or 10-year lease, alongside subscription service plans ($6.50-$23.50/month) covering heating and water heating equipment. The company runs residential and commercial energy efficiency programs with instant rebates ($100-$800 per qualifying appliance), weatherization support (up to $9,500 for income-qualified projects), 0% APR financing through Green Mountain Credit Union up to $20,000, and a Low-Income Assistance Program offering 20% bill discounts. VGS is also pioneering community-scale geothermal, with Vermont's first neighborhood-scale geothermal project at the Riggs Meadows affordable housing development in Hinesburg, in partnership with Champlain Housing Trust and Evernorth, breaking ground summer 2026.

VGS employs 140+ people and operates on a multi-revenue-stream model: usage-based regulated gas charges (e.g., Residential Rate R at $1.0237/day access plus $0.5277/CCF commodity and $0.8735/CCF distribution as of May 3, 2026), equipment hardware sales and leases, monthly service plan subscriptions, RNG attribute adders ($1.78-$1.96/CCF), and energy efficiency program fees. Distribution channels include direct pipeline delivery, a customer service center (802-863-4511), online account self-service, a 50+ approved contractor network, and participating equipment distributors (BellSimons, Blodgett Supply, Ferguson, F.W. Webb). The company markets via website, social media, monthly newsletters, savings calculators, and community partnerships, and is pursuing a Net Zero by 2050 climate plan under a newly created Senior Executive for Energy Transition role, though CEO Neale Lunderville is resigning effective end of 2026.

Name

Vermont Gas Systems

Legal name

Vermont Gas Systems

Website

https://vgsvt.com

Company type

Private

Founded year

1960

Operating status

Operating

Headcount range

101–250 employees

Short description

Vermont Gas Systems is a regulated natural gas utility serving over 56,000 residential and commercial customers across three northwestern Vermont counties, supplementing its core gas distribution with RNG, heat pump (Clover Energy), geothermal, equipment leasing, and energy efficiency programs.

Ownership category

akta.pro rank

Product category

Natural gas distribution utility

NAICS

Natural Gas Distribution (221210)

SIC

Natural Gas Distribution (4924)

akta.pro primary industry

Gas Mains (Distribution Pipelines) (EUAJABAA)

akta.pro secondary industries

Green Gas / RNG Retail Programs & Claims Marketing (EUAAADAG), Distributed Energy & Gas Solutions Sales (CHP, Microgrids, On-site Gas Supply) (EUAAADAJ), Decarbonization Planning for Distribution Networks (RNG/H2 Readiness) (EUAJAEAL)

Keywords

• Natural gas distribution
• Renewable natural gas
• Heat pump solutions
• Community geothermal systems
• Energy efficiency programs

Headquarters

HQ city

South Burlington

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2C

Offering type

Services

Cost components

Infrastructure, Supply Chain, Personnel, Operations, Marketing or Sales, Technology or R&D

Revenue model

1. Natural Gas Distribution: VGS distributes natural gas to over 56,000 customers in Franklin, Chittenden, and Addison Counties. Revenue comes from daily access charges, natural gas charges, and distribution charges per CCF of gas used. Rates are regulated by the Vermont Public Utility Commission and updated annually for most components, quarterly for natural gas commodity costs.
2. Equipment Sales & Leases: VGS offers water heaters, furnaces, boilers, space heaters, conversion burners, and heat pumps for purchase or monthly lease. Equipment is sold or leased to customers within service territory, with rebates applied at point-of-purchase through participating distributors.
3. Service Plans: Monthly service plan subscriptions covering heating systems, combo units, water heaters, and heat pumps. Plans include coverage for common repairs up to $2,000 per contract year, with optional annual inspection add-ons.
4. Renewable Natural Gas (RNG) Adder: Customers can opt to purchase RNG attributes as a percentage of their natural gas usage (10%, 25%, 50%, 100%). Blended RNG costs $1.7817/CCF; Locally Sourced RNG costs $1.9641/CCF. RNG is mixed with VGS's natural gas supply with no special equipment required.
5. Energy Efficiency Programs: Rebates for high-efficiency equipment (furnaces, boilers, water heaters), weatherization projects, and financing through Green Mountain Credit Union. Programs funded by Energy Efficiency Charge on customer bills.

Pricing tiers

Go-to-market motion2 records

Distribution channels5 records

Marketing channels6 records

Core offering

Vermont Gas Systems distributes natural gas to more than 56,000 residential and commercial customers across Franklin, Chittenden, and Addison Counties in northwest Vermont through a regulated pipeline infrastructure. The company also sells and leases high-efficiency heating equipment, offers a Renewable Natural Gas (RNG) program, provides heat pump solutions under the Clover Energy sub-brand, and is developing community-scale geothermal systems for multi-family buildings, with complementary residential and commercial energy efficiency programs offering rebates, weatherization, and financing.

Product overview

Vermont Gas Systems (VGS) is an integrated energy services company providing natural gas distribution to over 56,000 customers in northwestern Vermont. The product portfolio centers on the core Natural Gas Distribution Service, supplemented by the Renewable Natural Gas (RNG) Program allowing customers to purchase renewable gas attributes. Equipment offerings include Natural Gas Equipment Sales & Leases (water heaters, furnaces, boilers, space heaters) and Clover Energy Heat Pumps (ductless mini-splits, centrally ducted systems, heat pump water heaters). Service Programs provide maintenance plans for all covered equipment. The company also delivers Residential and Commercial Energy Services with rebates, weatherization, and energy assessments. Safety Services round out the offering with leak detection, Dig Safe coordination, and first responder training. Low-Income Assistance Program provides bill discounts to qualifying customers.

Differentiator

Problem solved

Functional benefit

Brands

• Clover Energy: Heat pump solutions program offered by VGS, helping Vermont homeowners explore heat pump options for heating, cooling, and hot water.

Products and services

• Natural Gas Distribution Service Regulated natural gas distribution service to more than 56,000 residential and commercial customers across Franklin, Chittenden, and Addison Counties in northwestern Vermont, with rates set by the Vermont Public Utility Commission.
• Renewable Natural Gas (RNG) Program Voluntary program allowing customers to purchase renewable attributes of natural gas sourced from Goodrich Farm in Addison County, Vermont, a Quebec landfill, and an Iowa wastewater treatment plant. Available as Blended RNG at $1.7817/CCF and Locally Sourced RNG at $1.9641/CCF, elected at 10%, 25%, 50%, or 100% of usage.
• Clover Energy Heat Pump Solutions Heat pump solutions program offered under the Clover Energy sub-brand, including ductless mini-split heat pumps, centrally ducted heat pumps, and heat pump water heaters, available for purchase, lease, or financing with utility rebates applied directly.
• Equipment Sales & Leases Sale and lease of natural gas and heat pump equipment including water heaters (tank, tankless, indirect, heat pump), furnaces, boilers, space heaters, and conversion burners, with utility rebates applied at point of purchase through participating distributors.
• Residential Energy Services & Rebates Home energy assessments, weatherization programs, and instant rebates on high-efficiency natural gas equipment for residential customers, including rebates of $250-$800 for furnaces, boilers, and combo boilers, $100-$750 for tankless water heaters, and $100 for smart thermostats. Financing available through Green Mountain Credit Union.
• Commercial Energy Services Business energy assessments, commercial equipment rebates, and services for space heating, hot water, process equipment, and building envelope improvements for commercial customers in sectors such as restaurants, lodging, grocery, beverage manufacturing, offices, and warehouses.
• Service Plans Monthly subscription maintenance plans covering heating systems, combination units, water heaters, and heat pumps, with repair coverage up to $2,000 per contract year and optional annual preventive maintenance inspections.
• Billing & Payment Services Customer billing and payment services including AutoPay, electronic payments, mail, phone payments, PayNearMe in-person cash payments, and a Budget Plan option for level monthly billing.
• Safety Services Natural gas safety programs and services including leak reporting, Dig Safe coordination, carbon monoxide safety, cross-bore prevention, meter and vent safety, excess flow valves, and first responder training.
• Low-Income Assistance Program Income-qualified supplemental assistance program providing a 20% discount on monthly bills for eligible customers, funded through the Assistance Program Fee on customer bills, with income-qualified weatherization rebates up to $9,500.
• Community Geothermal Energy System at Riggs Meadows Neighborhood-scale geothermal project at the Riggs Meadows affordable housing development in Hinesburg, Vermont, heating and cooling 36 units through 12 to 16 boreholes drilled up to 400 feet deep. Developed in partnership with Champlain Housing Trust and Evernorth, with construction breaking ground in summer 2026 and occupancy in 2027.

Quantifiable outcome

• 4.9 metric tons of CO2 avoided per year for residential customer at 100% RNG enrollment (900 CCF/year usage)
• +3 more outcomes

Named customers3 records

Segments4 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature3 records

Partnerships

Eight partnerships are on record, tiered core and minor.

• Champlain Housing TrustcoreStrategic or Co-development Partner · 1 April 2026Partnership to develop community geothermal energy systems at affordable housing developments. VGS provides geothermal infrastructure expertise while CHT provides housing development and manages the Riggs Meadows development in Hinesburg with 44 townhomes and apartments for low- and moderate-income residents.
• EvernorthcoreStrategic or Co-development Partner · 1 April 2026Co-development partner with Champlain Housing Trust and VGS for geothermal energy systems at affordable housing. Evernorth brings real estate development expertise and is exploring renewable heating and cooling solutions for Vermont's housing stock.
• Green Mountain Credit UnioncoreChannel Partner/ Reseller/ DistributorFinancing partner offering 0% APR financing over 60 months for qualifying high-efficiency natural gas equipment and weatherization projects up to $15,000. Also offers 0% APR for weatherization projects and 5.99% APR when including heat pumps, with loan amounts up to $20,000 for 5-year terms.
• Efficiency VermontminorStrategic or Co-development PartnerStatewide energy efficiency utility partner providing additional rebates for heat pump water heaters and collaborating on the Tools of the Trade business coaching program with VSJF and VGS.
• Vermont Sustainable Jobs FundminorStrategic or Co-development PartnerVSJF partners with Efficiency Vermont and VGS to fund the Tools of the Trade business coaching program for energy and weatherization contractors, providing monthly sessions, coaching, and up to $1,500 in business support incentives.
• Burlington Electric DepartmentminorStrategic or Co-development PartnerCo-funder of the Tools of the Trade business coaching program alongside Efficiency Vermont and VGS, supporting energy efficiency and weatherization contractors in Vermont.
• Goodrich FarmcoreTechnology or IntegrationLocal RNG source at Goodrich Farm in Salisbury, Vermont using anaerobic digestion to produce renewable natural gas from farm organic matter. This is VGS's primary source of locally sourced RNG for customers.
• Green Mountain Habitat for HumanityminorStrategic or Co-development PartnerBuilding homeownership townhouses at Riggs Meadows development through CHT's shared equity program. VGS providing energy infrastructure support for the affordable housing development.

Scale indicators7 records

Recent moves6 records

Expansion highlights6 records

Direct peers

• Liberty Utilities: Liberty Utilities operates natural gas distribution subsidiaries across New England (including New Hampshire), making it a directly comparable regional gas LDC with similar customer scale and regulated rate-base economics.
• Unitil Corporation: Unitil is a small-cap New England utility serving natural gas customers in New Hampshire, Massachusetts, and Maine with a comparable mix of gas distribution, electric service, and energy efficiency programs.
• Northwest Natural Gas Company: Northwest Natural Holding Company is a regulated natural gas LDC serving Oregon, Washington, and Idaho, with a parallel product line in RNG, gas storage, and customer energy services.
• Spire Inc. Spire is a gas-only utility holding company serving ~1.7M customers in Missouri, Alabama, and Mississippi, and is a comparable mid-size LDC investing in RNG and hydrogen blending.
• Southwest Gas Holdings: Southwest Gas distributes natural gas to ~2M customers across Arizona, Nevada, and California, providing a peer benchmark for a small/mid-cap gas LDC expanding into infrastructure and clean energy.
• Berkshire Gas Company: Berkshire Gas is a small Massachusetts-based natural gas LDC, comparable in scale, regulatory model, and New England service profile to VGS.

Broad incumbents

• National Grid: National Grid operates large natural gas distribution networks across the Northeast US, including Massachusetts, New York, and Rhode Island — a broad incumbent peer for distribution, RNG, and hydrogen programs.
• Eversource Energy: Eversource is the largest New England utility, with natural gas distribution in Massachusetts and Connecticut alongside electric service — a broad incumbent comparable in regulatory environment and decarbonization strategy.

Regional players

• Vermont Electric Cooperative: Vermont Electric Cooperative is a member-owned electric distribution cooperative serving northern Vermont, a regional peer that faces similar Vermont energy-transition and climate-policy dynamics.
• Green Mountain Power: Green Mountain Power is Vermont's largest electric utility, also based in Vermont and pursuing aggressive decarbonization and customer-energy programs — a relevant regional comparison for VGS's energy-transition strategy.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/vgsvt1
• YouTubeyoutube.com/@vgs-vermontgas
• Facebookfacebook.com/VGSVT1
• LinkedInlinkedin.com/company/vermont-gas
• Instagraminstagram.com/vgsvt1

Revenue estimate

Valuation estimate

Number of profiles

Profiles14 records

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Vermont Gas Systems