CVPS Signs Two Power Contracts -- Fills Portfolio for 2012

Central Vermont Public Service CV has signed two new power supply contracts, filling the 2012 gap in its portfolio created by the end of the existing contract with Vermont Yankee, at attractive prices. "These contracts serve to ensure our reliable power supply through the end of 2012 at very competitive prices," CVPS President and CEO Larry Reilly said. "We were able to secure contracts at firm prices -- where performance is guaranteed such that the sellers would pay to replace any power should they otherwise fail to deliver." CVPS, in cooperation with World Energy Inc., an energy management services firm, conducted a highly structured Internet auction that involved approximately a dozen prescreened northeastern generators and energy marketers in bidding to provide CVPS's needed supplies. When the bidding closed, CVPS signed two contracts with an average price of approximately $47.50 per megawatt-hour, or 4.75 cents per kilowatt-hour. The contracts will provide about 570,000 megawatt-hours of energy, or about 20 percent of CVPS's power supply during the life of the contracts, for $27 million.