CVPS Reorganizes Board, Adds Three Vermonters
March 06 2006 - 5:51PM
Business Wire
Continuing a previously announced plan to restore itself to a
financially stable position, Central Vermont Public Service
(NYSE-CV) today announced a restructuring of its board of
directors. "The restructuring of the board is an important
component of our overall goal of returning CVPS to a strong
financial position," CVPS Board Chair Frederic H. Bertrand said.
"Each existing board member has served the company well, but we've
narrowed our focus to the core Vermont business through the sale of
Catamount Energy Corp., and we are reorganizing the board to add
more Vermont insights and expertise." To maximize board continuity
and leadership, the restructuring will occur gradually and
incrementally, though some changes will be immediate. Beginning
this year, the Board will reduce each Director's pay by 10.5
percent. The company plans to reduce the size of the board starting
next year, but will initially grow by one seat this year, to 12
members, with stronger Vermont roots. As part of the
reorganization, the board has accepted the resignations of Timothy
Cobb of South Carolina and George MacKenzie Jr. of Pennsylvania,
effective after the May 2 annual meeting. The term of Bertrand,
former CEO and chairman of National Life of Vermont, expires in
May. He is restricted by the CVPS bylaws to serving only one more
year on the board. Three Vermonters are proposed for the board,
William Stenger, Bill Sayre and Douglas Wacek, to fill two open
seats and the newly created 12th seat on the board. Stenger, 57, is
president of Jay Peak Resort and a resident of Newport, Vt. Wacek,
54, is the president and CEO of the Union Mutual Insurance Group in
Montpelier, Vermont. He is a certified public accountant and a
resident of Burlington, Vt. Sayre, 55, is president of Duncan
Hermanson Corp., a real estate investment company with holdings in
Vermont and New York. He is a resident of Bristol, Vt. Bertrand
currently serves as chairman of the board and its Executive
Committee, but said he does not plan to run for re-election as
board chair. "The board is extremely appreciative of the dedicated
and valued counsel that Tim Cobb and George MacKenzie have provided
over the years," Bertrand said. "Looking ahead, I believe Bill
Stenger, Doug Wacek and Bill Sayre will bring strong Vermont values
and intelligence to the board." Mary Alice McKenzie, chair of the
board's Corporate Governance Committee, agreed: "We are very
fortunate to have found three people with their financial
experience and proven track records as business leaders," she said.
Besides the board restructuring, CVPS's plans to restore its
financial strength include: -- Securing a $25 million revolving
credit facility in October 2005; -- $2.7 million in 2006 budget
cuts, including a 10 percent cut in Young's salary and a 5 percent
reduction in other officers' salaries, which will help offset
rising fuel and medical costs; -- Efforts to improve communication
with Vermont regulators and find common ground on customer and
company needs. CVPS, founded in 1929, is Vermont's largest electric
utility, serving about 151,000 customers. Forward-Looking
Statements Statements contained in this report that are not
historical fact are forward-looking statements intended to qualify
for the safe-harbors from the liability established by the Private
Securities Litigation Reform Act of 1995. Statements made that are
not historical facts are forward-looking and, accordingly, involve
estimates, assumptions, risks and uncertainties that could cause
actual results or outcomes to differ materially from those
expressed in the forward-looking statements. Actual results will
depend, among other things, upon the actions of regulators,
performance of the Vermont Yankee nuclear power plant, effects of
and changes in weather and economic conditions, volatility in
wholesale electric markets and our ability to maintain our current
credit ratings. These and other risk factors are detailed in CV's
Securities and Exchange Commission filings. CV cannot predict the
outcome of any of these matters; accordingly, there can be no
assurance that such indicated results will be realized. Readers are
cautioned not to place undue reliance on these forward-looking
statements that speak only as of the date of this press release. CV
does not undertake any obligation to publicly release any revision
to these forward-looking statements to reflect events or
circumstances after the date of this press release.
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