CV Central Vermont Public Service Corp.

The Vermont Public Service Board has approved Central Vermont Public Service's (NYSE: CV) purchase of the assets and franchise territory of Rochester Electric Light and Power, which will reduce rates for the smaller company's customers by more than 6 percent. The companies expect to close the sale the first week of September. "We are pleased to add Rochester Electric's 900 customers to the CVPS fold," President Bob Young said. "The addition of these customers, along with the pending purchase of Vermont Electric Cooperative's southern Vermont territory, will help us grow our business and rebuild our financial strength. "CVPS has been built through the consolidation of more than 100 companies since 1929, a strategy we are continuing through these purchases," Young said. "It provides customers with economic benefits and gives the company immediate growth." Rochester Electric owners Tom and Sandy Pierce agreed this spring to sell their utility property and Rochester's share of the Hydro-Quebec contract to CVPS. The sale will reduce a typical Rochester customer's yearly residential bill by 6.6 percent. CVPS will begin to serve Rochester upon closing. Rochester Electric's residential and small commercial customers previously paid winter-summer rates, which averaged $72.84 per month for a residential customer using 500 kilowatt-hours of energy. As a CVPS customer with the same usage, the bill would fall to $68.01 per month. The winter-summer changes have been eliminated. The Pierces will retire shortly, although Tom Pierce will serve as a consultant to CVPS during the transition. Rochester Electric's one employee, a lineman, will join CVPS. "We're looking forward to some free time, and an opportunity to enjoy Vermont," Tom Pierce said. "Selling the company wasn't easy, but we're leaving our customers in very good hands." CVPS, founded in 1929, is Vermont's largest electric utility, now serving about 152,000 customers. Rochester Electric Light and Power was created in 1897. 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.