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CVPS seeks 4.8 percent rate increase

first_imgCentral Vermont Public Service has asked the Vermont Public Service Board to authorize a 4.8 percent rate increase under the company’s alternative regulation plan.  If approved, the increase would take effect on Jan. 1, 2012.‘We have worked very hard to control operating costs, which are virtually flat overall,’ CVPS President and Chief Executive Officer Larry Reilly said.  ‘The rate change is being drive by a variety of factors, which include new power contracts at competitive, yet slightly higher costs, and investments in our system to improve reliability for customers. Meanwhile, the rate impact was mitigated by a reduction in our allowed return on equity, which will drop from 9.45 to 9.17 percent.’Even after this increase, the company’s rates will remain competitive with the major utilities in New England.  The bill for a residential customer who uses 500 kilowatt-hours of electricity per month will rise from $82.26 to $86.22, a difference of $3.96.  By comparison, the same customer would pay as much as $114.03 elsewhere in New England, according to the Edison Electric Institute.Since 1999, CVPS’s rates have risen at only about half the rate of inflation, as measured by the Consumer Price Index.CVPS is in the process of selling the company to Gaz Métro, the parent of Green Mountain Power, with which CVPS will merge next year, if the transaction receives all necessary regulatory approvals.  Through the merger process, GMP and CVPS have promised to provide $144 million in customer savings in the first 10 years after closing the sale. CVPS 11.1.11last_img

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