Rutland, VT, Dec. 11, 2006 — The Vermont Public Service Board has approved Central Vermont Public Service’s purchase of the southern Vermont franchise territory of Vermont Electric Co-op, a sale designed to rationalize service territories and lower local electric rates.
The closing took place when CVPS paid VEC approximately $4 million. CVPS will provide service starting Saturday.
Under the agreement, CVPS acquired VEC’s southern Vermont assets and the rights to serve 2,770 customers. A residential customer using 500 kilowatt-hours would pay $80.19 as a VEC customer, but the bill will drop to $68.01 as a CVPS customer. A 4.07 percent increase, scheduled to take effect Jan. 1, will mean a monthly bill of $70.78 for that same customer, a savings of $9.41 compared to VEC. Some commercial customers will see a rate increase.
“The agreement reduces most local rates and strengthens CVPS,” president Bob Young said. “It allows our fixed costs to be spread over a larger base.”
VEC CEO David Hallquist said the sale provided significant cash, while divesting a service area a great distance from most of VEC’s territory, which is primarily in northern Vermont.
“We leave these customers in good hands,” Hallquist said. “CVPS is hiring all five local VEC employees, and will maintain the Wilmington office. We, meanwhile, can put the proceeds to work for our remaining members.”
The purchase is the second by CVPS in recent months. CVPS closed on the purchase of Rochester Electric Light and Power, a privately held, 900-customer company, in August.
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