SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported): June 2, 1999
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.
New revolving credit agreement
On May 27, 1999, the Company signed a letter of commitment with
certain banks for a revolving credit agreement of $15 million. The
Company believes the amounts available under the new agreement will be
sufficient to meet its forecasted borrowing requirements during the next
12 months. The Company expects to execute the new 364-day secured
revolving credit agreement in June 1999, to replace the current $45
million arrangement that expires June 30, 1999. The Company's Board of
Directors has approved the transaction and the Company has requested the
required approval from the Vermont Public Service Board (VPSB).
The terms and conditions of the new agreement will provide a
secured revolving credit agreement in the amount of $15 million for a
period of 364 days after the signing of such agreement. The terms
continue the requirement that loans made under the agreement will be
secured by granting the banks a second priority mortgage, lien and
security interest in the collateral pledged under the Company's first
mortgage bond indenture. The new agreement provides for increases in the
interest rates, facility fees and other fees required to be paid. These
increases are expected to cost about $40,000 annually.
The Company's ability to enter into borrowing agreements with more
favorable terms and conditions continues to be negatively impacted by
the rulings in the VPSB's orders issued in February and June 1998 in the
Company's 1997 rate case that disallowed certain costs of power under a
long-term contract with Hydro-Quebec entered into in 1987.
The new agreement continues a "material adverse effect" provision.
Various events, including but not limited to, an unfavorable decision in
the Company's currently suspended rate case, may adversely affect the
Company's financial condition and ability to borrow under the terms and
conditions related to the revolving credit agreement.
Item 7. Financial Statements, Pro Forma Financial Information
and Exhibits
(a) and (b) --Not applicable
(c) Exhibits --Not applicable
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
By /s/ Nancy Rowden Brock
Nancy Rowden Brock
VICE PRESIDENT, CHIEF FINANCIAL
OFFICER AND TREASURER
By /s/ Robert J. Griffin
Robert J. Griffin
CONTROLLER
DATED: June 2, 1999
