Central Vermont Public Service Announces Settlement on Purchase of Vermont Marble Power Division

Central Vermont Public Service CV today announced that it has reached a settlement with the Vermont Department of Public Service, the Town of Proctor Selectboard and Omya Inc. for the purchase of the assets of and consolidation of service territory of the Vermont Marble Power Division of Omya. The transaction has already been approved by the Federal Energy Regulatory Commission, which regulates the hydro sites and transmission facilities involved in the sale, but must also be approved by the Vermont Public Service Board. Under the settlement, the purchase price of the previously announced sale will decrease from $33.2 million to approximately $29.25 million, including $28.25 million for Vermont Marble's hydroelectric facilities and about $1 million for the other assets. The agreement includes a five-year, six-step phase-in of residential rate changes for existing VMPD customers, which will be funded by Omya up to an amount estimated to be approximately $1.125 million. The agreement also requires creation of a value sharing pool that provides for certain excess value received by CVPS to be split between CVPS's customers, Omya and CVPS shareholders if energy market prices and hydro improvements create more value than anticipated.