CV Central Vermont Public Service Corp.

Mary Alice McKenzie, a Burlington native and attorney, has been named chair of the board of Central Vermont Public Service, Vermont's largest electric company. "Mary Alice brings a wealth of talent and a broad understanding of Vermont to the position," said Fred Bertrand, who has stepped down as chairman and plans to retire from the board in 2007. "The company is in excellent hands." McKenzie's family has deep business roots in the Green Mountain State. She formerly served as president and chief executive officer of McKenzie of Vermont, a Burlington meat packing business. She said her focus would be on maintaining CVPS's high levels of customer service and reliability while overseeing the company's financial restoration plan. The company's rates were reduced 2.75 percent last May, and a customer refund of $6.2 million was ordered due to previous over-earnings. CVPS's credit rating was reduced to junk bond status. "CVPS is an important economic tool for Vermont, and it is imperative that CVPS's credit rating be restored within the next few years," McKenzie said. "Given the tremendous decisions that must be made about future power supplies, generation, transmission and efficiency, that is important to the company, our customers and the state. "That said, while the rate case decision had a negative impact on the company, ultimately CVPS's financial situation and restoration is our responsibility," McKenzie said. "We've learned from the rate case that we must better communicate with regulators on our key financial compliance assumptions, and we are working hard to improve communications with them." McKenzie's appointment is part of a broader reorganization of the board in the wake of the sale of Catamount Energy, a subsidiary, and heralds a renewed focus on the core Vermont electrical business. Beginning this year, the company has reduced each director's pay by 10.5 percent. As part of the reorganization, the board accepted resignations from Timothy Cobb of South Carolina and George MacKenzie Jr. of Pennsylvania. Vermonters William Stenger, Bill Sayre and Douglas Wacek have joined 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, Vt. 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. Besides the board restructuring, McKenzie said CVPS's plans to restore its financial strength include: -- Securing a $25 million revolving credit facility in October 2005; -- Making $2.7 million in 2006 budget cuts, including a 10 percent cut in President Bob Young's salary, and a 5 percent reduction in other officers' salaries, to offset other cost increases. -- Selling Catamount Energy, providing funds to buy back 18.3 percent of CVPS's common stock. -- Continuing the Right Way to Work, a program that has identified more than $6 million in annual savings. -- Agreeing to purchase Rochester Electric Light and Power, providing more than 900 new customers to further spread the company's fixed costs. -- Investing substantially in the core business and VELCO, with more than $40 million planned in 2006. CVPS, founded in 1929, is Vermont's largest electric utility, serving more than 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.