Green Mountain Power rate increase approved

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Green Mountain Power rate increase approved

Tue, 01/03/2006 - 8:00pm -- tim

GREEN MOUNTAIN POWER 0.9 PERCENT RATE INCREASE APPROVED
COLCHESTER, VT...Green Mountain Power (NYSE:GMP) received approval from the Vermont Public Service Board to increase its rates by 0.9 percent for electricity used beginning January 1, 2006. This is the final part of a three-year rate stabilization agreement between the State and Green Mountain Power, which included a rate freeze in 2004, a 1.9 percent increase in 2005 and the 0.9 percent increase in 2006.
"The rate stabilization agreement has been very beneficial to our customers as our rates have increased less than three percent since the end of 2000," said Christopher L. Dutton, Green Mountain Power president and chief executive officer. "We are working diligently to mitigate the effects of the extraordinary run up in the costs of natural gas and other fossil fuels, which have significantly affected the price of the wholesale power. We expect to ask for an increase to take effect in 2007 that will reflect those increased costs. Although we won't know the precise amount of the increase until the spring when we file the rate adjustment request, we expect, based on the current forward market pricing, that it may be in the range of 13 percent," he added.
Other utilities around New England have asked for increases ranging as high as 80 percent, but Green Mountain Power's long-term power supply contracts with the Vermont Yankee nuclear plant and with Hydro Quebec will help protect the Company from the increases in market power costs that New England is now experiencing. The 0.9 percent increase goes into effect at the same time as a redesign of Green Mountain Power's rate structure. The combined effect on residential customers' monthly bills will vary according to use, ranging from a 23 cent decrease for a 500 kilowatthour bill to a $2.00 increase for a 1,000 kilowatthour bill.