Green Mountain Power Increases Quartely Dividend

Directors of Green Mountain Power Corporation
(NYSE:GMP) announced a quarterly cash dividend of $0.19 per share on
the utility's Common Stock, payable December 31, 2002, to holders of
record at the close of business on December 14, 2002. The new indicated
annual dividend rate is $0.76, an increase over the previous indicated
annual rate of $0.55. The increased dividend payment is contingent on the
successful issuance of long-term debt, which is expected to be completed
on or about December 16, 2002.
The Company has arranged to issue $42 million in first mortgage
bonds, with an average life of 12 years. This transaction, which will
replace substantially all of the Company's short-term and intermediate
term debt, will satisfy the conditions set by the Vermont Public Service
Board for the Company to increase its dividend.
In 1997 and 1998, faced with difficult financial results, the
Company reduced its dividend. "We have maintained an indicated annual
dividend of 55 cents per share as we worked to restore the Company to
financial health," said Christopher L. Dutton, President and Chief
Executive Officer. "With solid financial results achieved in 2001 and
2002 following the Vermont Public Service Board's January 2001 order
approving a rate settlement that provided for full power supply cost
recovery in rates, with the successful repurchase of common stock in the
last month, and with our scheduled issuance of long-term debt later this
month, we now conclude that we are on solid ground to increase the
dividend. The Company believes that, in light of the general practice in
the utility industry, it should pay out 50 percent to 60 percent of
anticipated earnings in dividends. Over the course of the next several
years, we intend to increase our dividend in a measured, consistent manner
to this payout range, which we will sustain so long as our financial
health seems assured. As earnings grow, of course, the opportunity for
higher dividend increases is presented."
Regular quarterly dividends of $1.1875 per share were also declared
payable
March 1, 2003, to holders of record at the close of business February 13,
2003, of the Company's 4.75% Class B Preferred Stock.
Green Mountain Power Corporation (greenmountainpower.biz) is a
Vermont-based energy services company serving 87,000 electric customers.