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):
DECEMBER 3, 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)
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ITEM 5. OTHER EVENTS-RATE INCREASE MEMORANDUM OF UNDERSTANDING AND AMENDMENTS
TO REVOLVING CREDIT AGREEMENT.
THE COMPANY ENTERED INTO A MEMORANDUM OF UNDERSTANDING WITH THE VERMONT
DEPARTMENT OF PUBLIC SERVICE (DPS) AND INTERNATIONAL BUSINESS MACHINE
CORPORATION (IBM) ON DECEMBER 3, 1999, FOR A TEMPORARY RATE INCREASE OF 3
PERCENT, IN ADDITION TO THE CURRENT TEMPORARY RATE LEVEL, TO BECOME EFFECTIVE AS
OF JANUARY 1, 2000. THE MEMORANDUM OF UNDERSTANDING FURTHER PROVIDES THAT THE
COMPANY'S CURRENTLY PENDING RATE CASE, WHICH HAS BEEN STAYED SINCE LATE FALL OF
1998, WOULD REMAIN STAYED UNTIL SEPTEMBER 2000, WITH A FINAL DECISION IN THE
CASE EXPECTED BY DECEMBER 31, 2000. THE PARTIES INTEND THIS MEMORANDUM OF
UNDERSTANDING TO PROVIDE ADDITIONAL TIME FOR THE COMPLETION OF SEVERAL POWER
SUPPLY COST MITIGATION EFFORTS THAT THE COMPANY HAS UNDERTAKEN AND THAT ARE NOW
UNDERWAY. THE MEMORANDUM OF UNDERSTANDING IS SUBJECT TO APPROVAL BY THE VERMONT
PUBLIC SERVICE BOARD (VPSB.) THE COMPANY HAS ASKED THE VPSB TO APPROVE THE
MEMORANDUM OF UNDERSTANDING BY DECEMBER 17, 1999. APPROVAL OF THE MEMORANDUM OF
UNDERSTANDING WILL INCREASE THE COMPANY'S PROJECTED REVENUES BY $4.6 MILLION IN
2000.
THE COMPANY HAS ALSO ENGAGED IN EXTENSIVE DISCUSSIONS WITH ITS REVOLVING CREDIT
BANKS CONCERNING THE COMPANY'S LENDING ARRANGEMENTS. AS A RESULT OF THE RATE
CASE MEMORANDUM OF UNDERSTANDING, THE BANKS HAVE AGREED TO MAINTAIN THE AMOUNT
AVAILABLE AT $15 MILLION, SUBJECT TO VPSB APPROVAL OF THE MEMORANDUM OF
UNDERSTANDING. THE CREDIT FACILITY WILL BE REDUCED WHEN THE NET PROCEEDS
BECOME AVAILABLE FROM CERTAIN SALES OF THE COMPANY'S ASSETS. ON NOVEMBER 19,
1999, WHILE NEGOTIATIONS WITH DPS AND IBM WERE ONGOING BUT BEFORE ANY AGREEMENT
WAS REACHED, THE BANKS HAD REQUESTED THAT THE TOTAL AMOUNT AVAILABLE TO GMP
UNDER THE EXISTING REVOLVING CREDIT AGREEMENT BE REDUCED FROM $15 MILLION TO
$8.5 MILLION. IN ORDER TO HAVE ACCESS TO BORROWED FUNDS NEEDED AT THAT TIME,
THE COMPANY AGREED TO THE BANKS' REQUEST. THE COMPANY ANTICIPATES THAT THE VPSB
WILL APPROVE THE MEMORANDUM OF UNDERSTANDING BY DECEMBER 17, 1999, AS REQUESTED.
ACCORDINGLY, THE COMPANY BELIEVES THAT THE AMOUNTS AVAILABLE UNDER THE AMENDED
CREDIT AGREEMENT WILL BE SUFFICIENT TO MEET ITS FORECASTED BORROWING
REQUIREMENTS FOR THE DURATION OF THE ORIGINAL REVOLVING CREDIT AGREEMENT, WHICH
IS SCHEDULED TO EXPIRE ON JUNE 21, 2000.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
(A) AND (B) --NOT APPLICABLE
(C) EXHIBITS. --NOT APPLICABLE
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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 ______________________________
VICE PRESIDENT, CHIEF FINANCIAL
OFFICER, TREASURER AND CORPORATE
SECRETARY
BY________________________________
CONTROLLER
DATED: DECEMBER 7, 1999
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