Larry Reilly, former president of distribution companies at New England Electric System and executive vice president at National Grid, will be the next president and chief executive officer of Central Vermont Public Service (NYSE: CV).
Reilly told Vermont Business Magazine that some of the first issues he will face are with the renewal, or not, of the Vermont Yankee Nuclear Power Station in Vernon; the set up the SmartGrid system; and the ongoing upgrade to infrastructure, particularly the transmission system, which will be costly.
Reily will begin that effort March 1. Bob Young, who as president led Central Vermont Public Service through a cultural, service and environmental transformation, announced his planned retirement in July 2010 effective May 3, 2011. Reilly will begin as president and CEO on March 1 and will report to Young, who has been named executive chairman of the company, until May to allow for an orderly transition.
"We are thrilled to have found a leader with the depth and breadth of utility experience that Larry possesses," said William Sayre, the lead member of the CVPS board, in announcing the appointment. "Larry has spent his entire professional career in the utility business in New England and has demonstrated skill and integrity, which will be critical to leading CVPS over the next few years.
"He has wide-ranging and deep experience working in multiple regulatory jurisdictions and on acquisitions, generation and utility legal issues," Sayre said. "Under Bob Young's leadership, CVPS transformed into one of the most respected small utilities in the industry and one of the most trusted companies in the nation. We are confident that Larry will continue to uphold the high standards and values that Bob has instilled in the company, and continue our growth and commitment to Vermont."
In coming to Vermont, Reilly told VBM: "It's a little bit more back to my roots with an integrated utility," he said. "The company is very nimble and can be very responsive."
And Reilly will have to be nimble immediately. Vermont Yankee's license will expire in little more than a year, which will leave a gap in the power supply.
Young, however, said CVPS is prepared for a future with VY, or without. He said they did a contingency RFP last year in case VY is not relicensed. If it is, CVPS will negotiate a new contract that will be fair to its customers. If it is not relicensed, CVPS has several options, including going back to Hydro-Quebec, with which it recently signed a longterm contract, or going to natural gas-fired plants, or to renewable sources.
In any case, the company is committed to upgrading the system, which is old in Vermont and across the country. Young said it will be an expensive undertaking, which will take two or three more years to get through. He said there will be continuted pressure on rates. But, he said, it is something the company must do.
"We have to have a reliable system," Young said.
For now, one of Reilly's first tasks is to find a place to live, which he said would begin tomorrow as he begins the process of settling into a new job.
"I've been impressed with CVPS for years, and I am excited to join the company," Reilly said in a statement. "I am heartened by the quality of people, the devotion to customers and community, and the commitment to clean energy and the environment, which seem to be ingrained in the company's DNA. I'm also impressed with the company's plans for CVPS SmartPowerâ ¢, which will have significant benefits for customers, the environment, reliability and the integration of even more renewable energy.
"CVPS has been quite successful in many ways in recent years, and I look forward to becoming a part of that success," Reilly said. "CVPS has managed to provide very competitive rates while maintaining an unwavering commitment to doing what's right for customers, despite a tough economy. The company managed to provide exceptional customer service and instill confidence in employees despite three of the most devastating storms in company history since 2007. And CVPS became an industry leader with CVPS Cow Powerâ ¢ and innovative forestry practices that earned national acclaim despite being one of the nation's smallest investor-owned utilities.
"CVPS is somewhat of an anomaly in the utility business," Reilly said. "It's a small company that has managed to provide a solid economic value to shareholders and customers, even as it has gone beyond the expected to protect the environment, treat customers well, and provide exceptional service. My task will be to build on the legacy Bob Young and CVPS's 517 employees have created."
Sayre praised Young, who navigated the company through several difficult years and challenges. When Young became president at the end of 1995, CVPS faced a national push toward utility restructuring; rate pressures weighed heavily; employee numbers were high and morale was low; CVPS was often perceived as out of touch with Vermont values; and regulatory conflicts were common.
"Bob dedicated every day to our shareholders, customers and the state of Vermont," Sayre said. "He rebuilt this company and its reputation, revitalized its workforce, improved service quality and made it one of the most cost-effective utilities in the Northeast."
Young, who will turn 64 this summer, joined CVPS as vice president of finance and administration in 1987. He was promoted to senior vice president of finance and administration and chief financial officer in 1988; executive vice president and chief operating officer in 1993; and president and CEO in December 1995. He has served as chairman of the board since 2009. Young began his career at Bechtel Power Corp in 1970. He later worked for Bay State Gas Co., Arlington Exploration Company and Arthur D. Little Inc. before joining CVPS.
Since 2008, Reilly, 55, has provided energy consulting services independently. He has assisted utilities and regulators in the nation of Jordan under a contract funded by the U.S. Agency of International Development; served as an advisor to GroundedPower, a startup smart grid company; and consulted for NuGen Capital Management LLC, which develops, installs, and owns large-scale (1 to 10 megawatt) rooftop and ground-mount solar systems. Since 1997, he has served as vice chair of the Massachusetts Technology Collaborative, a quasi-public entity that fosters a more favorable environment for the formation, retention and expansion of technology-related enterprises in Massachusetts.
Reilly served National Grid USA and various subsidiaries from 1982 to 2008 in a succession of positions of increasing responsibility. He began as an attorney at New England Electric System (NEES) in Westborough, Mass., and later served as counsel at its Rhode Island subsidiary, Narragansett Electric, from 1987 to 1990; vice president and director of rates at NEES from 1990 to 1996; president of the NEES electric distribution companies in Massachusetts, Rhode Island and New Hampshire from 1996 to 2001; executive vice president and general counsel of National Grid USA from 2001 to 2007 following United Kingdom-based National Grid Plc's acquisition of NEES; and executive vice president, legal and regulation, at National Grid USA in 2007 and 2008.
Reilly holds a bachelor's degree in geography from the State University of New York at Albany; a law degree from the Boston University School of Law; and a master's degree in city and regional planning from Harvard University.
CVPS Board of Directors
Robert H. Young
1995/Chair of the Board, President and Chief Executive Officer, Central Vermont Public Service (1)
William R. Sayre
2006/Lead Director and Chair of the Executive Committee, Central Vermont Public Service Corporation/President, Duncan Hermanson Corporation, Bristol, Vermont (Real Estate Investment Company) (1)(3)
Robert L. Barnett
1996/Chair of the Compensation Committee, Central Vermont Public Service Corporation/Former Executive Vice President, Motorola Inc., Schaumburg, Illinois (Communications Equipment) (3)(4)
Janice L. Scites
1998/Chief Executive Officer, MSO Inc., (Property and Casualty Rating/Service Bureau-Insurance) and President, Scites Associates Inc. Basking Ridge, New Jersey (Technology and Business Consulting Firm) (3)
Robert G. Clarke
1997/Chair of the Audit Committee, Central Vermont Public Service Corporation/Former Chancellor of the Vermont State Colleges, Waterbury, Vermont (1)(2)(4)
William J. Stenger
2006/President and Chief Executive Officer, Jay Peak Inc., Jay, Vermont (Ski and Summer Resort) (3)
John M. Goodrich
2009/Vice President of Power ‘ Americas, Weidmann Electrical Technology Inc. (electrical insulation for transformer manufacturers and transformer users) (2)
Douglas J. Wacek
2006/Chair of the Corporate Governance Committee, Central Vermont Public Service Corporation/Former President and Chief Executive Officer, Union Mutual of Vermont Companies, Montpelier, Vermont (Insurance) (2)(4)
Elisabeth B. Robert
2009/Chief Executive Officer of Terry Precision Cycling (a women's bicycle manufacturing and direct marketing company) (2)
Robert B. Johnston
2010/Executive Vice President and Chief Strategy Officer of The InterTech Group, Inc. (private holding company) (3)
(1) Member of Executive Committee
(2) Member of Audit Committee
(3) Member of Compensation Committee
(4) Member of Corporate Governance Committee
CVPS Officers
Robert H. Young
1987/President and Chief Executive Officer
Pamela J. Keefe
2006/Senior Vice President, Chief Financial Officer and Treasurer
William J. Deehan
1985/Vice President, Power Planning and Regulatory Affairs
Joseph M. Kraus
1981/Senior Vice President, Operations, Engineering, and Customer Service
Joan F. Gamble
1989/Vice President, Strategic Change and Business Services
Dale A. Rocheleau
2003/Senior Vice President, General Counsel and Corporate Secretary
Brian P. Keefe
2006/Vice President, Government and Public Affairs
(Reviewed November 2010)
(Updated November 2010)
NOTES
Statements contained herein that are not historical fact are forward-looking statements within the meaning of the 'safe-harbor' provisions of the Private Securities Litigation Reform Act of 1995. Whenever used in this document and the attached exhibits, the words "estimate," "expect," "believe," or similar expressions are intended to identify such forward-looking statements. Forward-looking statements involve estimates, assumptions, risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. Actual results will depend upon, among other things, the actions of regulators, performance of the Vermont Yankee nuclear power plant, effects of and changes in weather and economic conditions, volatility in wholesale power markets, our ability to maintain our current credit ratings, the performance of our unregulated business, and other considerations such as the operations of ISO-New England, changes in the cost or availability of capital, authoritative accounting guidance, and the effect of the volatility in the equity markets on pension benefit and other costs. We cannot predict the outcome of any of these matters; accordingly, there can be no assurance that such indicated results will be realized. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Soruce: CVPS. 2.17.2011