SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
-----------
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED):
JULY 11, 2003
GREEN MOUNTAIN POWER CORPORATION
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
VERMONT 03-0127430
(STATE OR OTHER JURISDICTION OF INCORPORATION) (I.R.S. EMPLOYER IDENTIFICATION
NUMBER)
1-8291
COMMISSION FILE NUMBER
163 ACORN LANE,
COLCHESTER, VERMONT 05446
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(ZIP CODE)
(802) 864-5731
(REGISTRANT'S TELEPHONE NUMBER,
INCLUDING AREA CODE)
Item 5. Other Events. On July 11, 2003, Green Mountain Power Corporation (the
"Company") and the Vermont Department of Public Service (the "Department")
reached agreement on a Memorandum of Understanding (the "Memorandum") regarding
the Company's rates and allowed return on equity through the end of 2006, in
connection with a cost of service filing made by the Company on April 15, 2003.
The cost of service filing complied with an Order previously issued by the
Vermont Public Service Board (the "Board") approving the sale of the Vermont
Yankee nuclear power plant by Vermont Yankee Nuclear Power Corporation to
Entergy Nuclear Vermont Yankee, LLC. The Memorandum is subject to approval by
the Board, and provides, among other things, the following:
Rate Stability: The Company's rates will remain unchanged until January 1,
2005, when they will increase by 1.9 percent, and an additional rate increase of
0.9 percent will be effective January 1, 2006, subject to the requirement that
the Company file a cost of service filing with the Department and the Board 60
days prior to each rate increase that supports such increase. In addition, the
Memorandum permits the Company to carry forward into 2004 any unused deferred
revenue originally allowed in the Company's last rate case decision in January
2001.
Earnings Cap: The Memorandum provides that the Company will reduce its
current 11.25 percent allowed return on equity to 10.50 percent for 2003, 2004,
2005 and 2006. The Memorandum further provides that if the Company earns in
excess of its earning cap, then any 2004 excess earnings shall be applied to
reduce regulatory assets. Excess earnings in 2005 or 2006 shall be refunded to
customers as a credit on customer bills or applied to reduce regulatory assets
as the Department directs.
Redesign of Rates: Within 60 days of the Board's approval of the
Memorandum, the Company shall file with the Board a fully allocated cost of
service study and rate redesign.
Alternative Regulation Plan: The Company and the Department have agreed to
work cooperatively to develop and propose an alternative regulation plan within
120 days after Board approval of the Memorandum. Such plan, if approved by the
Board, would supersede the terms of the Memorandum.
Amortization of Regulatory Assets: Under the Memorandum, amortization
(recovery) of certain regulatory assets, including Pine Street Barge Canal
environmental site costs, and past demand side management program costs will
begin January 2005 and will be allowed in future rates according to amortization
schedules set forth in the Memorandum.
A copy of the Memorandum is attached hereto as an exhibit.
There are statements herein that contain projections or estimates and that
are considered to be "forward-looking" as defined by the Securities and Exchange
Commission. In these statements, you may find words such as believes, expects,
plans, or similar words. These statements are not guarantees of our future
performance. There are risks, uncertainties and other factors that could cause
actual results to be different from those projected.
ITEM 7 FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(a) and (b) --not applicable
(c) Exhibits--not applicable
For further information, contact Dorothy Schnure, Manager of Corporate
Communications, (802) 655-8418.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly cased this report to be signed on its behalf by the
undersigned thereunto duly authorized.
GREEN MOUNTAIN POWER CORPORATION
Registrant
DATED: July 16, 2003 By:/s/ Robert J. Griffin
------------------------
ROBERT J. GRIFFIN, CONTROLLER AND TREASURER
DATED: July 16, 2003
By:/s/ Robert J. Griffin
------------------------
ROBERT J. GRIFFIN, CONTROLLER AND TREASURER
(AS PRINCIPAL FINANCIAL OFFICER)