PSB Approves CVPS Purchase of VEC's Southern Vermont Territory
December 08 2006 - 4:32PM
Business Wire
The Vermont Public Service Board has approved Central Vermont
Public Service�s (NYSE: CV) purchase of the southern Vermont
franchise territory of Vermont Electric Cooperative, a sale
designed to rationalize service territories and lower local
electric rates. The closing took place today, when CVPS paid VEC
approximately $4 million. CVPS will provide service starting
Saturday. Under the agreement, CVPS acquired VEC�s southern Vermont
assets and the rights to serve 2,770 customers. A residential
customer using 500 kilowatt-hours would pay $80.19 as a VEC
customer, but the bill will drop to $68.01 as a CVPS customer. A
4.07 percent increase, scheduled to take effect Jan. 1, will mean a
monthly bill of $70.78 for that same customer, a savings of $9.41
compared to VEC. A handful of commercial customers will see a small
rate increase. �The agreement reduces most local rates and
strengthens CVPS,� President Bob Young said. �It allows our fixed
costs to be spread over a larger base. Bottom line, it�s good for
CVPS, good for VEC, and good for customers.� VEC Chief Executive
Officer David Hallquist said the sale provided significant cash,
while divesting a service area a great distance from most of VEC�s
territory, which is primarily in northern Vermont. �We leave these
customers in good hands,� Hallquist said. �CVPS is hiring all five
local VEC employees, and will maintain the Wilmington office. We,
meanwhile, can put the proceeds to work for our remaining members.�
Customers affected by the sale are in Halifax and parts of Andover,
Dover, Newfane, Townshend, Wardsboro, Jamaica, Marlboro, Guilford,
Vernon, Wardsboro, Wilmington, Windham, Whitingham and Readsboro.
The former VEC members will be covered by CVPS�s 17 SERVE
Standards, which measure everything from reliability to customer
service, and are reported to state regulators. SERVE stands for
Serving Everyone with Reliability, Value and Excellence. The new
customers will also be eligible for all CVPS programs, including
even monthly billing, Electripay and CVPS Cow Power�. The purchase
is the second by CVPS in recent months. CVPS closed on the purchase
of Rochester Electric Light and Power, a privately held,
900-customer company, in August. CVPS, founded in 1929, is
Vermont�s largest electric utility, now serving about 155,000
customers. More than 100 companies have merged into CVPS since its
founding. VEC, a member-owned cooperative, was founded in 1938 and
serves about 37,000 members. 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.
Central Vermont Public Service (NYSE:CV)
Historical Stock Chart
From Jun 2024 to Jul 2024
Central Vermont Public Service (NYSE:CV)
Historical Stock Chart
From Jul 2023 to Jul 2024