UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D. C. 20549
FORM
11-K/A
|
ý
|
ANNUAL
REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For the
fiscal year ended December 31, 2008.
|
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For the
transition period from _______ to _______
|
Commission
file number
1-8222
CENTRAL
VERMONT PUBLIC SERVICE CORPORATION
EMPLOYEE
SAVINGS AND INVESTMENT PLAN
(Full
title of the Plan)
CENTRAL
VERMONT PUBLIC SERVICE CORPORATION
(Name
of Issuer of Securities)
77
Grove Street, Rutland,
Vermont 05701
(Address
of Issuer's Principal
Office) (Zip
Code)
|
|
Total
Number of Pages in File:
|
13
|
CENTRAL
VERMONT PUBLIC SERVICE CORPORATION
EMPLOYEE
SAVINGS AND INVESTMENT PLAN
INDEX
TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE
DECEMBER
31, 2008 AND 2007
|
|
Page
|
|
|
|
|
Report
of Independent Registered Public Accounting Firm
|
3
|
|
Statements
of Net Assets Available for Benefits
as
of December 31, 2008 and 2007
|
4
|
|
Statements
of Changes in Net Assets Available for
Benefits
for the Years Ended December 31, 2008 and 2007
|
5
|
|
Notes
to Financial Statements
|
6
|
|
Form
5500, Schedule H, Part IV, Line 4i Schedule of Assets
(held
at end of year) as of December 31, 2008
|
12
|
|
Signature
|
13
|
CENTRAL
VERMONT PUBLIC SERVICE CORPORATION
EMPLOYEE
SAVINGS AND INVESTMENT PLAN
Report of Independent
Registered Public Accounting Firm
The
Employee Savings & Investment Plan Committee
Central
Vermont Public Service Corporation
Rutland,
Vermont
We have
audited the accompanying statements of net assets available for plan benefits of
the Central Vermont Public Service Corporation Employee Savings and Investment
Plan (the “Plan”) as of December 31, 2008 and 2007 and the related statements of
changes in net assets available for plan benefits for the years then
ended. These financial statements are the responsibility of the
Plan's management. Our responsibility is to express an opinion on
these financial statements based on our audits.
We
conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. The Plan is not
required to have, nor were we engaged to perform, an audit of its internal
control over financial reporting. Our audit included consideration of internal
control over financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Plan's internal control over financial
reporting. Accordingly, we express no such opinion. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe
that our audits provide a reasonable basis for our opinion.
In our
opinion, the financial statements referred to above present fairly, in all
material respects, the net assets available for plan benefits of the Central
Vermont Public Service Corporation Employee Savings and Investment Plan at
December 31, 2008 and 2007, and the changes in its net assets available for plan
benefits for the years then ended in conformity with accounting principles
generally accepted in the United States of America.
Our
audits were made for the purpose of forming an opinion on the 2008 basic
financial statements taken as a whole. The 2008 information included
in the supplemental schedule is presented for purposes of additional analysis
and is not a required part of the 2008 basic financial statements but is
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. The information in the supplemental schedule
has been subjected to the auditing procedures applied in the audit of the 2008
basic financial statements and, in our opinion, is fairly stated in all material
respects in relation to the 2008 basic financial statements taken as a
whole.
/s/
McSoley McCoy & Company
June 23,
2009
VT Reg.
No. 92-349
CENTRAL
VERMONT PUBLIC SERVICE CORPORATION
EMPLOYEE
SAVINGS AND INVESTMENT PLAN
STATEMENTS
OF NET ASSETS AVAILABLE FOR BENEFITS
AS
OF DECEMBER 31, 2008 AND 2007
|
|
2008
|
|
|
2007
|
|
Investments,
at fair value
|
|
|
|
|
|
|
Mutual
Funds
|
|
$
|
39,360,331
|
|
|
$
|
57,270,791
|
|
Managed
Income Portfolio
|
|
|
8,903,905
|
|
|
|
8,403,597
|
|
Central
Vermont Pubic Service Corporation (common stock)
|
|
|
4,068,798
|
|
|
|
4,388,840
|
|
Other
Common Stock
|
|
|
421,892
|
|
|
|
525,094
|
|
Money
Market Funds
|
|
|
555,140
|
|
|
|
720,572
|
|
Participant
Loans
|
|
|
1,130,260
|
|
|
|
1,291,142
|
|
Total
Investments, at fair value
|
|
|
54,440,326
|
|
|
|
72,600,036
|
|
Adjustment
from fair value to contract value for fully benefit-responsive investment
contracts
|
|
|
480,295
|
|
|
|
91,326
|
|
Other
Receivables
|
|
|
3,075
|
|
|
|
937
|
|
Net
Assets Available for Benefits
|
|
$
|
54,923,696
|
|
|
$
|
72,692,299
|
|
The
accompanying notes are an integral part of these financial
statements
CENTRAL
VERMONT PUBLIC SERVICE CORPORATION
EMPLOYEE
SAVINGS AND INVESTMENT PLAN
STATEMENTS
OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR
THE YEARS ENDED DECEMBER 31, 2008 AND 2007
|
|
2008
|
|
|
2007
|
|
CONTRIBUTIONS
|
|
|
|
|
|
|
Employee
|
|
$
|
3,768,776
|
|
|
$
|
3,568,995
|
|
Employer
|
|
|
1,445,415
|
|
|
|
1,352,092
|
|
Rollovers
|
|
|
184,649
|
|
|
|
353,964
|
|
Total
Contributions
|
|
|
5,398,840
|
|
|
|
5,275,051
|
|
|
|
|
|
|
|
|
|
|
INVESTMENT
INCOME
|
|
|
|
|
|
|
|
|
Net
(Depreciation) Appreciation of Fair Value of Investments
|
|
|
(22,642,035
|
)
|
|
|
948,989
|
|
Interest
and Dividend Income
|
|
|
1,785,780
|
|
|
|
5,142,509
|
|
Net
Investment Gain from Managed Income Portfolio
|
|
|
348,155
|
|
|
|
361,507
|
|
Net
Investment (Loss) Gain from Brokerage Account
|
|
|
(285,921
|
)
|
|
|
160,350
|
|
Administrative
Expenses
|
|
|
(29,342
|
)
|
|
|
(28,398
|
)
|
Total
Investment (Loss) Income
|
|
|
(20,823,363
|
)
|
|
|
6,584,957
|
|
|
|
|
|
|
|
|
|
|
DISTRIBUTIONS
|
|
|
|
|
|
|
|
|
Benefit
Payments
|
|
|
(2,301,032
|
)
|
|
|
(5,556,833
|
)
|
Loan
Defaults
|
|
|
(43,048
|
)
|
|
|
(40,230
|
)
|
Total
Distributions
|
|
|
(2,344,080
|
)
|
|
|
(5,597,063
|
)
|
|
|
|
|
|
|
|
|
|
NET
(DECREASE) INCREASE IN NET ASSETS AVAILABLE FOR BENEFITS
|
|
|
(17,768,603
|
)
|
|
|
6,262,945
|
|
|
|
|
|
|
|
|
|
|
NET
ASSETS AVAILABLE FOR BENEFITS
|
|
|
|
|
|
|
|
|
Beginning
of Year
|
|
|
72,692,299
|
|
|
|
66,429,354
|
|
End
of Year
|
|
$
|
54,923,696
|
|
|
$
|
72,692,299
|
|
The
accompanying notes are an integral part of these financial
statements
CENTRAL
VERMONT PUBLIC SERVICE CORPORATION
EMPLOYEE
SAVINGS AND INVESTMENT PLAN
NOTES
TO FINANCIAL STATEMENTS
DECEMBER
31, 2008 and 2007
Note
1 - Plan Description and Related Information
General
- The purpose
of the Central Vermont Public Service Corporation Employee Savings and
Investment Plan (the Plan), a defined contribution plan, is to encourage savings
and investments by eligible employees of Central Vermont Public Service
Corporation and its affiliates (the “company”) and to afford additional security
for their retirement. The Plan became effective January 1,
1985. More complete information regarding the Plan's provisions may
be found in the plan document.
Contributions and
Vesting
- Employees are eligible to join the Plan immediately upon
hire. Employees electing to participate in the Plan make pre-tax
contributions of at least 1 percent, but not more than 40 percent, of their
compensation as defined by the Plan. The maximum pre-tax contribution for
2008 was $15,500. Employees who are age 50 and older could make pre-tax
catch-up contributions up to a maximum of $5,000 in 2008. Catch-up
contributions are ineligible for employer match. Employees can make
post-tax contributions of at least 1 percent, but not more than 10 percent.
Eligible employees are 100 percent vested in their pre-tax and post-tax
contribution account and in their matching employer contribution account.
Employee contributions also include rollovers.
During
2008 and 2007, company matching contributions were 100 percent of the first 4.25
percent of eligible pre-tax compensation, excluding overtime, contributed to the
Plan by each participant per pay period. Participants are eligible for the
matching contribution in the first pay period following their first anniversary
date.
On
January 1, 2009, members of the International Brotherhood of Electrical Workers
Local 300 ratified the union employees' five-year contract with the
company. The contract included a provision, subject to CVPS Board of
Director approval within the contract period, to close the CVPS pension plan to
new hires. This would result in a 0.5 percent core contribution to
existing employees and a three percent core contribution to new employees in
addition to the current 4.25 percent company match described above.
Participant Accounts
- Each participant's account is credited with the participant's basic and any
rollover or after-tax contributions and his or her allocation of (a) the
company's contribution; and (b) investment earnings attributable to such
contributions. The allocation of the Plan's earnings is based on
participants' account balances. Participants allocate contributions
among various investment choices, including mutual funds, managed income
portfolio, money market funds and common stock, including Central Vermont Public
Service Corporation Common Stock Fund (“CVPS Common Stock
Fund”). Company contributions are automatically invested in
accordance with the participant's investment direction for his or her
account.
Payment of Benefits
-
Participants (or their beneficiaries) will be entitled to distribution of the
full value of their Plan account (including their contributions, matching
company contributions and investment earnings) upon retirement, disability,
death or other termination of employment with the company or upon attainment of
age 59 1/2. Any participant may withdraw from his or her account
amounts contributed by the participant on an after-tax basis or amounts
necessary to meet certain financial hardships. In addition, once per
plan year, any person who has been a participant in the Plan for at least 60
months may withdraw all or a portion of his or her account attributable to
company matching contributions. Benefit distributions are made either
as (a) a single lump-sum payment, (b) an annuity contract purchased from an
insurance company, (c) quarterly or annual installments over a period not to
exceed 10 years or (d) with respect to the CVPS Common Stock Fund, shares of the
company's common stock.
Participant Loans
-
Participants may borrow from their plan account balance. The maximum
borrowings shall not exceed the lesser of $50,000 (reduced by the highest
outstanding loan balance in the previous 12 months) or 50 percent of the value
of the participant's account, subject to certain
limitations. Participants may repay the loan through payroll
deduction over a period of up to five years or up to 30 years if the loan is to
purchase the participant's primary residence. The interest rates
charged on loans outstanding as of December 31, 2008 and 2007 range from 6.25
percent to 10.0 percent and mature at various dates
through 2035.
Plan Trustee
-
Fidelity Management Trust Company (Fidelity) became trustee of the Plan
effective May 1, 2002.
CENTRAL
VERMONT PUBLIC SERVICE CORPORATION
EMPLOYEE
SAVINGS AND INVESTMENT PLAN
NOTES
TO FINANCIAL STATEMENTS
DECEMBER
31, 2008 and 2007
Note
2 - Summary of Significant Accounting Policies
Basis of Accounting
-
The financial statements of the Plan are prepared in accordance with accounting
principles generally accepted in the United States of America (“U.S.
GAAP”). Contributions made by the company are recognized by the Plan
in the year the related participant's contribution is
made. Administrative costs are recognized when
incurred. Benefit distributions are recognized when
made.
Investment Valuation and
Income Recognition
- The Plan’s investments are stated at their fair
value with the exception of Fidelity Managed Income Portfolio, which is stated
at fair value with the related adjustment amount from contract value disclosed
in the statements of net assets available for benefits. The statement
of changes in net assets available for benefits is prepared on a contract value
basis.
Mutual
funds and common stock are stated at fair value. Participant loans
are stated at their carrying values, which approximated their fair
values. Purchases and sales of securities are recorded on the trade
date. Interest from investments is recorded as earned on an accrual
basis. Dividends are recorded on the ex-dividend date.
Fully Benefit-Responsive
Investment Contracts
- The investments of the Fidelity Managed Income
Portfolio, a stable value investment fund, include fully benefit-responsive
investment (“wrap”) contracts. The objective of investing in wrap contracts is
to ensure this fund’s ability to distribute benefits at “contract value”, which
is equal to participant’s principal balance plus accrued interest. In a typical
wrap contract, the issuing bank or insurance company agrees to pay a fund the
difference between the contract value and the market value of the underlying
assets once the market value of the fund has been totally exhausted, provided
all the terms of the wrap contract have been met. Wrap contracts may include
terms that establish limits on the fund’s investments, such as maximum duration
limits, minimum credit standards, and diversification requirements.
Risks and
Uncertainties
- The Plan provides for various investment
instruments. Investment securities, in general, are exposed to
various risks, such as interest rate, credit and overall market
volatility. Due to the level of risk associated with certain
investment securities, it is reasonably possible that changes in the values of
investment securities will occur in the near term and such changes could
materially affect the amounts reported in the financial statements.
The
Plan’s investment options include the Fidelity Managed Income Portfolio, which
invests in wrap contracts as described above. The fund’s ability to
meet this goal would be impaired, if for any reason, it was unable to obtain or
maintain wrap contracts covering all of its underlying assets. This
could result from an inability to find a replacement wrap contract following
termination of a wrap contract. The fund attempts to assess the
credit quality of wrap issuers; however, there is no guarantee as to the
financial condition of a wrap issuer. The wrap issuer’s ability to
meet its contractual obligations may be affected by future economic and
regulatory developments. In the event that wrap contracts fail to
perform as intended, it is possible that the fund might not be able to provide
for benefit responsive withdrawals at contract value.
Expenses
- Brokerage
commissions, registration charges and other expenses in connection with the
purchase, sale or distribution of securities and other administrative costs for
each investment fund, excluding a portion related to the CVPS Common Stock Fund,
will be paid out of the Plan's accounts to which such expenses are
attributable. Administrative expenses related to the CVPS Common
Stock Fund are paid by the plan participants. Fees related to the
Plan as a whole are shared between participants and the company.
Use of Estimates
-
The preparation of financial statements in conformity with U. S. GAAP requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ
from those estimates.
Fair Value
Measurements
- On January 1, 2008, the Plan adopted FASB Statement No.
157,
Fair Value
Measurements
(“SFAS 157”) and subsequently adopted certain related FASB
staff positions. SFAS 157 addresses
CENTRAL
VERMONT PUBLIC SERVICE CORPORATION
EMPLOYEE
SAVINGS AND INVESTMENT PLAN
NOTES
TO FINANCIAL STATEMENTS
DECEMBER
31, 2008 and 2007
Note 2 -
cont’d
-
how
companies should measure fair value when they are required to use a fair value
measure for recognition or disclosure purposes under U.S. GAAP. This
standard applies prospectively to new fair value measures of financial
instruments and recurring fair value measurements of non-financial assets and
non-financial liabilities. SFAS 157 does not expand the use of fair
value, but it has applicability to several current accounting standards that
require or permit us to measure assets and liabilities at fair
value. See Note 5 - Fair Value for additional
information.
Note
3 - Plan Termination
Although
it has not expressed any intent to do so, the company has the right under the
Plan to terminate the Plan subject to the provisions of ERISA and the union
bargaining agreement. Contributions to the Plan in future years are
subject to the applicable tax regulations and the discretion of the
company.
Note
4 - Income Taxes
The Plan
is subject to the Employee Retirement Income Security Act of 1974 (ERISA) and
certain provisions of the Internal Revenue Code (IRC). The Plan is
intended to qualify under Section 401(a) of the IRC and the
Internal
Revenue
Service has issued a favorable determination letter, dated January 13, 2004,
ruling that the Plan was designed in accordance with applicable IRC requirements
as of the date of their letter. The Plan has been amended since
receiving the determination letter. Plan management believes that the
Plan is designed and is currently being operated in accordance with applicable
IRC requirements and the Plan and related Trust continue to be tax
exempt. Therefore, no provision for income taxes has been included in
the Plan's financial statements.
Note
5 - Fair Value
Effective
January 1, 2008, the Plan adopted SFAS 157 as required. SFAS 157
establishes a single, authoritative definition of fair value, prescribes methods
for measuring fair value, establishes a fair value hierarchy based on the inputs
used to measure fair value and expands disclosures about the use of fair value
measurements; however, SFAS 157 does not expand the use of fair value accounting
in any new circumstances. SFAS 157 defines fair value as “the price
that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement
date.”
Valuation Techniques
SFAS 157
emphasizes that fair value is not an entity-specific measurement but a
market-based measurement utilizing assumptions market participants would use to
price the asset or liability. SFAS 157 provides guidance on three
valuation techniques to be used at initial recognition and subsequent
measurement of an asset or liability:
Market
Approach:
This approach uses prices and other relevant
information generated by market transactions involving identical or comparable
assets or liabilities.
Income
Approach:
This approach uses valuation techniques to convert
future amounts (cash flows, earnings) to a single present value
amount.
Cost
Approach:
This approach is based on the amount currently
required to replace the service capacity of an asset (often referred to as the
“current replacement cost”).
The
valuation technique (or a combination of valuation techniques) utilized to
measure fair value is the one that is appropriate given the circumstances and
for which sufficient data is available. Techniques must be
consistently applied, but a change in the valuation technique is appropriate if
new information is available.
Fair Value Hierarchy
SFAS 157
establishes a fair value hierarchy (“hierarchy”) to prioritize the inputs used
in valuation techniques. The hierarchy is designed to indicate the relative
reliability of the fair value measure. The highest priority is given to quoted
prices in active markets, and the lowest to unobservable data, such as an
entity’s internal information. The lower the level of the input of a fair value
measurement, the more extensive the disclosure requirements. There are three
broad levels:
CENTRAL
VERMONT PUBLIC SERVICE CORPORATION
EMPLOYEE
SAVINGS AND INVESTMENT PLAN
NOTES
TO FINANCIAL STATEMENTS
DECEMBER
31, 2008 and 2007
Note 5 - cont’d
–
Level 1:
Quoted
prices (unadjusted) are available in active markets for identical assets or
liabilities as of the reporting date. Level 1 includes mutual funds,
common stock and money market funds.
Level 2:
Pricing
inputs are other than quoted prices in active markets included in Level 1, which
are directly or indirectly observable as of the reporting date. This
value is based on other observable inputs, including quoted prices for similar
assets and liabilities in markets that are not active. Level 2
includes the Plan’s managed income portfolio.
Level 3:
Pricing
inputs include significant inputs that are generally less
observable. Unobservable inputs may be used to measure the asset or
liability where observable inputs are not available. The Plan
developed these inputs based on the best information available, including its
own data. Level 3 instruments include participant
loans. There were no changes to the Plan’s Level 3 fair value
measurement methodologies.
Recurring Measures
The
following table sets forth by level within the fair value hierarchy the Plan’s
financial assets and liabilities that are accounted for at fair value on a
recurring basis. The Plan’s assessment of the significance of a
particular input to the fair value measurement requires judgment, and may affect
the valuation of the assets and liabilities and their placement within the fair
value hierarchy levels:
|
|
Fair
Value as of December 31, 2008
|
|
|
|
Level
1
|
|
|
Level
2
|
|
|
Level
3
|
|
|
Total
|
|
Mutual
funds
|
|
$
|
39,360,331
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
39,360,331
|
|
Common
stock
|
|
|
4,490,690
|
|
|
|
-
|
|
|
|
-
|
|
|
|
4,490,690
|
|
Money
market funds
|
|
|
555,140
|
|
|
|
-
|
|
|
|
-
|
|
|
|
555,140
|
|
Managed
income portfolio
|
|
|
-
|
|
|
|
8,903,905
|
|
|
|
-
|
|
|
|
8,903,905
|
|
Participant
loans
|
|
|
-
|
|
|
|
-
|
|
|
|
1,130,260
|
|
|
|
1,130,260
|
|
Total
|
|
$
|
44,406,161
|
|
|
$
|
8,903,905
|
|
|
$
|
1,130,260
|
|
|
$
|
54,440,326
|
|
Mutual Funds, Common Stock and Money
Market Funds
The Plan uses the market approach to measure the fair values
of mutual funds, common stock and money market funds. The Plan is
able to obtain actively traded quoted prices for these funds.
Managed Income Portfolio
The
Plan’s primary valuation technique to measure the fair value of the Plan’s
managed income portfolio is the market approach. Actively traded
quoted prices cannot be obtained for the funds in the Plan’s managed income
portfolio; however, actively traded quoted prices for the underlying securities
comprising the portfolio have been obtained. Due to these observable
inputs, securities in the funds are classified as Level 2.
Level 3 Changes
The following
table is a reconciliation of changes in the net fair value of participant loans,
which are classified as Level 3 in the fair value
hierarchy. Participant loans are stated at their carrying values, in
the statements of net assets available for benefits, which approximated their
fair values at December 31, 2008. The valuation techniques used to
measure fair value of the Managed income portfolio are included in Note
2. There were no transfers into or out of Level 3 during the periods
presented.
|
|
2008
|
|
Balance
at Beginning of Period
|
|
$
|
1,291,142
|
|
Issuances,
repayments and settlements, net
|
|
|
(160,882
|
)
|
Balance
at December 31
|
|
$
|
1,130,260
|
|
CENTRAL
VERMONT PUBLIC SERVICE CORPORATION
EMPLOYEE
SAVINGS AND INVESTMENT PLAN
NOTES
TO FINANCIAL STATEMENTS
DECEMBER
31, 2008 and 2007
Note
6 - Investments
The fair
market value of individual investments that represent five percent or more of
the Plan's net assets available for benefits as of December 31, 2008 and 2007
are as follows:
|
|
2008
|
|
|
2007
|
|
|
|
|
|
|
|
|
Fidelity
Managed Income Portfolio
|
|
$
|
8,903,905
|
|
|
$
|
8,403,597
|
|
Fidelity
Disciplined Equity Fund
|
|
$
|
5,931,181
|
|
|
$
|
10,436,020
|
|
Fidelity
Balanced Fund
|
|
$
|
5,362,316
|
|
|
$
|
7,888,768
|
|
American
Funds Growth Fund - R4
|
|
$
|
4,950,592
|
|
|
$
|
8,215,531
|
|
CVPS
Common Stock Fund
|
|
$
|
4,068,798
|
|
|
$
|
4,388,840
|
|
Fidelity
Institutional Short-Intermediate Government Fund
|
|
$
|
3,598,127
|
|
|
$
|
2,123,191
|
|
Fidelity
Freedom 2010 Fund
|
|
$
|
2,805,101
|
|
|
$
|
3,377,568
|
|
Fidelity
Mid-Cap Stock Fund
|
|
$
|
2,509,281
|
|
|
$
|
4,748,888
|
|
During
2008 and 2007, the Plan investments (including gains and losses on investments
bought and sold, as well as held during the year) (depreciated) appreciated as
follows:
|
|
2008
|
|
|
2007
|
|
Fair
Value Investments:
|
|
|
|
|
|
|
Mutual
Funds
|
|
$
|
(21,743,110
|
)
|
|
$
|
(429,947
|
)
|
CVPS
Common Stock Fund
|
|
|
(898,925
|
)
|
|
|
1,378,936
|
|
Net
(Depreciation) Appreciation of Fair Value Investments
|
|
|
(22,642,035
|
)
|
|
|
948,989
|
|
Brokerage
Account
|
|
|
(285,921
|
)
|
|
|
160,350
|
|
Total
Net (Depreciation) Appreciation
|
|
$
|
(22,927,956
|
)
|
|
$
|
1,109,339
|
|
Note
7 - Related Party Transactions
Certain
Plan investments are shares of mutual funds managed by
Fidelity. Fidelity is the trustee as defined by the Plan and,
therefore, these transactions qualify as party-in-interest transactions as the
term is defined in Section 3 (14) of ERISA. At December 31, 2008 and
2007, the Plan held common stock of the company valued at $4,068,798 and
$4,388,840, respectively.
Note
8 - Managed Income Portfolio
The Plan
invests in the Fidelity Managed Income Portfolio; a commingled fund of the
Fidelity Group Trust for Employee Benefit Plans and is managed by Fidelity
Management Trust Company (“Fidelity”), the Plan’s trustee. This fund seeks to
preserve principal investments while earning interest income. This fund will try
to maintain a net asset value of $1 per unit. The portfolio invests in
investment contracts issued by insurance companies and other financial
institutions, and in fixed income securities.
As
described in Financial Accounting Standards Board Staff Position, FSP AAG-INV-1
and SOP 94-1-1,
Reporting of
Fully Benefit-Responsive Investment Contracts held by Defined-Contribution
Health and Welfare and Pension Plans
(the FSP), investment contracts held
by a defined-contribution plan are required to be reported at fair value.
However, contract value is the relevant measurement attribute for that portion
of the net assets available for benefits of a defined-contribution plan
attributable to fully benefit-responsive investment contracts because contract
value is the amount participants would receive if they were to initiate
permitted transactions under the terms of the plan.
As
required by the FSP, the Statement of Net Assets Available for Benefits presents
the fair value of the investment in the Managed Income Portfolio as well as the
adjustment of the fully benefit-responsive investment contracts from fair value
to contract value. The Statement of Changes in Net Assets Available for Benefits
is prepared on a contract value basis.
CENTRAL
VERMONT PUBLIC SERVICE CORPORATION
EMPLOYEE
SAVINGS AND INVESTMENT PLAN
NOTES
TO FINANCIAL STATEMENTS
DECEMBER
31, 2008 and 2007
Note 8 – cont’d
-
Participant
contributions are maintained in a general account which is credited with
earnings on the underlying investments and charged for participant withdrawals
and administrative expenses. The guaranteed investment contract issuer is
contractually obligated to repay the principal and a specified interest rate
that is guaranteed to the Plan. In addition, the terms of the guaranteed
investment contract do not permit the issuing insurance company to terminate the
agreement prior to the scheduled maturity date.
Investment
contracts have been presented in the financial statements at fair value, with a
corresponding adjustment to contract value, because such investments are deemed
to be fully benefit-responsive in that they provide that trust participants may
make withdrawals, or transfer of all or a portion of their account balance, at
contract value during the term of the contract. Contract value represents
contributions made under the contract, plus earnings on the
underlying
investments, less participant withdrawals and administrative expenses. There are
no reserves against contract value for credit risk of the contract issuer or
otherwise. The fair value and contract value were as follows for the periods
present:
The wrap
contracts provide a guarantee that the crediting rate will not fall below zero
percent. The market value yield on the underlying investments and the
contract value yield credited to participants were 3.57 percent and 3.04
percent, respectively, for 2008 and 4.82 percent and 4.40 percent, respectively,
for 2007.
|
|
Fair
Value
|
|
|
Contract
Value
|
|
|
|
December
31
|
|
|
December
31
|
|
|
|
2008
|
|
|
2007
|
|
|
2008
|
|
|
2007
|
|
Fidelity
Managed Income Portfolio
|
|
$
|
8,903,905
|
|
|
$
|
8,403,597
|
|
|
$
|
9,384,200
|
|
|
$
|
8,494,923
|
|
Note
9 - Reconciliation of Financial Statements to Form 5500
The
following is a reconciliation of net assets available for benefits per the
financial statements to the Form 5500:
|
|
2008
|
|
|
2007
|
|
Net
assets available for benefits, per financial statements
|
|
$
|
54,923,696
|
|
|
$
|
72,692,299
|
|
|
|
|
|
|
|
|
|
|
Adjustment
from fair value to contract value for fully benefit-responsive investment
contracts
|
|
|
(480,295
|
)
|
|
|
(91,326
|
)
|
Net
assets available for benefits, per Form 5500
|
|
$
|
54,443,401
|
|
|
$
|
72,600,973
|
|
The
following is a reconciliation of the changes in net assets per the financial
statements to the Form 5500:
|
|
2008
|
|
Net
decrease in net assets available for benefits, per the financial
statements
|
|
$
|
(17,768,603
|
)
|
|
|
|
|
|
Earnings
adjustment from fair value to contract value for fully benefit-responsive
investment contracts
|
|
|
(388,969
|
)
|
Net
decrease in net assets available for benefits, per Form
5500
|
|
$
|
(18,157,572
|
)
|
Plan
No. 005
EIN
03-0111290
CENTRAL
VERMONT PUBLIC SERVICE CORPORATION
EMPLOYEE
SAVINGS AND INVESTMENT PLAN
FORM
5500, SCHEDULE H, PART IV, LINE 4i
SCHEDULE
OF ASSETS (HELD AT END OF YEAR)
AS
OF DECEMBER 31, 2008
Identity of Issue,
Borrower, Lessor, or Similar Party
|
|
Units
|
|
Cost
**
|
|
Current
Value
|
|
|
|
|
|
|
|
|
|
*Fidelity
Freedom Income Fund
|
|
|
26,944.137
|
|
|
|
$
|
257,586
|
|
*Fidelity
Freedom 2000 Fund
|
|
|
2,430.177
|
|
|
|
$
|
24,423
|
|
*Fidelity
Freedom 2005 Fund
|
|
|
4,149.457
|
|
|
|
$
|
34,814
|
|
*Fidelity
Freedom 2010 Fund
|
|
|
270,762.692
|
|
|
|
$
|
2,805,101
|
|
*Fidelity
Freedom 2015 Fund
|
|
|
132,081.168
|
|
|
|
$
|
1,130,615
|
|
*Fidelity
Freedom 2020 Fund
|
|
|
201,850.606
|
|
|
|
$
|
2,028,599
|
|
*Fidelity
Freedom 2025 Fund
|
|
|
77,347.062
|
|
|
|
$
|
636,566
|
|
*Fidelity
Freedom 2030 Fund
|
|
|
120,612.714
|
|
|
|
$
|
1,177,180
|
|
*Fidelity
Freedom 2035 Fund
|
|
|
36,122.832
|
|
|
|
$
|
290,066
|
|
*Fidelity
Freedom 2040 Fund
|
|
|
57,659.787
|
|
|
|
$
|
322,318
|
|
*Fidelity
Freedom 2045 Fund
|
|
|
12,230.410
|
|
|
|
$
|
80,476
|
|
*Fidelity
Freedom 2050 Fund
|
|
|
9,633.651
|
|
|
|
$
|
62,233
|
|
*Fidelity
Ret Gov't MM
|
|
|
27.100
|
|
|
|
$
|
27
|
|
*Fidelity
Managed Income Portfolio
|
|
|
9,384,199.480
|
|
|
|
$
|
8,903,905
|
|
*Fidelity
Institutional Short-Intermediate Government Fund
|
|
|
353,798.140
|
|
|
|
$
|
3,598,127
|
|
Vanguard
Total Bond Market Index Fund
|
|
|
11,205.764
|
|
|
|
$
|
114,075
|
|
*Fidelity
Balanced Fund
|
|
|
408,713.094
|
|
|
|
$
|
5,362,316
|
|
Spartan
U.S. Equity Index Fund
|
|
|
10,736.957
|
|
|
|
$
|
342,509
|
|
Davis
New York Venture Fund, Inc. - Class A
|
|
|
66,063.517
|
|
|
|
$
|
1,560,420
|
|
*Fidelity
Disciplined Equity Fund
|
|
|
340,676.707
|
|
|
|
$
|
5,931,181
|
|
*Fidelity
Low-Priced Stock Fund
|
|
|
76,197.049
|
|
|
|
$
|
1,761,676
|
|
*Fidelity
Mid-Cap Stock Fund
|
|
|
160,748.265
|
|
|
|
$
|
2,509,281
|
|
Morgan
Stanley Institutional Fund, Inc. - Small Company Growth Investment Class
I
|
|
|
60,512.613
|
|
|
|
$
|
461,711
|
|
AIM
International Growth A
|
|
|
29,118.302
|
|
|
|
$
|
540,727
|
|
American
Funds Growth Fund Class R4
|
|
|
243,631.465
|
|
|
|
$
|
4,950,592
|
|
Dodge
& Cox International Stock
|
|
|
75,257.094
|
|
|
|
$
|
1,648,130
|
|
American
Beacon Small Cap Value Fund Plan Ahead Class
|
|
|
53,487.969
|
|
|
|
$
|
616,182
|
|
American
Beacon Large Cap Value Fund Plan Ahead Class
|
|
|
41,806.009
|
|
|
|
$
|
548,077
|
|
USAA
Nasdaq - 100 Index Fund
|
|
|
84,566.228
|
|
|
|
$
|
316,278
|
|
*Central
Vermont Public Service Corporation
|
|
|
170,528.000
|
|
|
|
$
|
4,068,798
|
|
Money
Market Funds
|
|
|
192,838.600
|
|
|
|
$
|
555,113
|
|
*Fidelity
BrokerageLink
|
|
|
1,032,799.040
|
|
|
|
$
|
670,964
|
|
Funds
Total
|
|
|
|
|
|
|
$
|
53,310,066
|
|
*LOANS
TO PARTICIPANTS - Rate of Interest 6.25% to 10.0 %
|
|
|
|
|
|
|
$
|
1,130,260
|
|
TOTAL
INVESTMENTS
|
|
|
|
|
|
|
$
|
54,440,326
|
|
Notes:
*
Party-in-interest
** Cost
has been omitted as investments are participant directed.
CENTRAL
VERMONT PUBLIC SERVICE CORPORATION
EMPLOYEE
SAVINGS AND INVESTMENT PLAN
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the members of the
Employee Savings and Investment Plan (“ESIP”) Committee have duly caused this
annual report to be signed by the undersigned thereunto duly
authorized.
|
CENTRAL
VERMONT PUBLIC SERVICE CORPORATION
EMPLOYEE
SAVINGS AND INVESTMENT PLAN
|
By
|
/s/ Joan F.
Gamble
Chair,
ESOP/ESIP (401-K) Committee
Vice
President, Strategic Change & Business
Services
|
Dated: June
25, 2009
EXHIBIT
INDEX
|
Exhibit
No.
|
|
23.1
|
Consent
of Independent Registered Public Accounting
Firm
|