scostel
Timothy McQuiston
2
6
2006-07-28T13:25:00Z
2006-07-28T15:57:00Z
2006-07-28T15:57:00Z
1
574
3275
CVPS
27
7
3842
10.2625
1474219382
news release
[email protected]
Costello, Stephen
471604707
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July 28, 2006
CVPS plans purchase
of VECs southern Vermont territory
Central
Vermont Public
Service will purchase the southern Vermont franchise territory of Vermont Electric Cooperative under an agreement designed to rationalize
service territories and lower local electric rates.
Under the
agreement, which must be approved by the Vermont Public Service Board, CVPS
will acquire VECs southern Vermont assets and the rights to serve 2,770
customers, who will on average save about 8.1 percent under CVPS ownership,
even after a pending 6.15 percent rate case is complete.
This
agreement consolidates service territories and provides CVPS with important
growth, President Bob Young said. It
will reduce local rates, and strengthens CVPS by providing new revenue and a
wider base to allocate fixed costs.
VEC Chief
Executive Officer David Hallquist said the sale made
sense for the co-op, as it would provide significant cash, while divesting a
service area far removed from most of VECs
territory, which is primarily in northern Vermont. CVPS
will pay approximately $4 million for VECs southern Vermont assets and territory.
This area
is virtually centered between CVPSs Springfield, Brattleboro and Sunderland
offices, Hallquist said. It makes more sense for CVPS than VEC to
serve it.
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.
Four of five
VEC employees in the region are expected to be hired by CVPS. CVPS plans to maintain the current VEC
service office in Wilmington.
When the
sale is completed, the former VEC customers will be covered by CVPSs 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 announced by CVPS in recent months. CVPS announced the purchase of Rochester
Electric Light and Power, a privately held, 900-customer company,
in April. That purchase is awaiting
regulatory approval, which is expected this summer.
CVPS, founded in 1929, is Vermonts largest electric utility, serving about
151,000 customers. More than 100
companies have merged into CVPS since its founding.
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.