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 27, 2000
CENTRAL VERMONT PUBLIC SERVICE CORPORATION
(Exact name of registrant as specified in its charter)
Vermont 1-8222 03-0111290
(State of other jurisdic- (Commission (IRS Employer
tion of incorporation) File Number) Identification No.)
77 Grove Street, Rutland, Vermont 05701
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (802) 773-2711
N/A
(Former name or former address, if changed since last report)
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Item 5. Other Events.
The Company maintains a 1.7303% joint-ownership interest in the
Millstone Unit #3 ("Unit #3"), an 1149 mW nuclear unit of the Millstone
Nuclear Power Station. On August 7, 1997, the Company and eight other
non-operating owners of Unit #3 filed a demand for arbitration with
Connecticut Light and Power Company and Western Massachusetts Electric
Company, both Northeast Utilities ("NU") affiliates, and lawsuits
against NU and its trustees. The arbitration and lawsuits sought to
recover costs associated with replacement power, operation and
maintenance costs and other costs resulting from the lengthy shutdown of
Unit #3; the Company's cumulative incremental costs relating to this
outage were $15.8 million.
On July 27, 2000, the Company executed a settlement agreement with
NU, resolving all issues asserted by the Company in the arbitration and
lawsuits; the settlement became effective on August 4, 2000, following
approval of the Company's withdrawal from the arbitration and
litigation. The settlement agreement provides for a cash settlement of
$5,445,000 which has been paid to the Company by NU, the right of the
Company to participate in the auction of the Millstone plants, and
indemnification by NU of the Company's liability, if any, arising out of
the litigation between VELCO and NU's subsidiary, Public Service of New
Hampshire ("PSNH"), relating to costs of the Merrimack #2 plant. Under
the settlement agreement, the Company released NU from all claims
arising from the outage and agreed to waive certain rights against NU
which the Company believes could have hindered the auction.
On August 7, 2000, the Connecticut Department of Public Utility
Control announced that Dominion Resources, Inc. ("Dominion") was the
successful bidder in the auction. Under the terms of the settlement
agreement with NU, the Company could elect whether to sell its share of
Millstone Unit #3 pursuant to the terms of the bid. The Company has
determined that it will not participate in the current sale to Dominion.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
CENTRAL VERMONT PUBLIC SERVICE CORPORATION
BY /s/ John J. Holtman
John J. Holtman, Vice President, Controller
and Chief Accounting Officer
August 25, 2000
