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):
APRIL 19, 2000
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-Credit Rating Changes
GREEN MOUNTAIN POWER ANNOUNCES RATING AGENCY DEVELOPMENTS
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COLCHESTER, VT Green Mountain Power Corporation (NYSE:GMP) announced today
the results of recent credit reviews by Standard & Poor's, Duff & Phelps and
Moody's. The ratings for the Company's first mortgage bonds are as follows:
* Standard & Poor's reaffirmed GMP's BBB credit rating, maintaining the
investment grade designation, and continued the Company on creditwatch negative.
* Duff & Phelps Credit Rating Co. reaffirmed its investment grade rating of
BBB and maintained the Company on Watch-Down status.
* Moody's downgraded GMP's first mortgage bond rating from Baa3 to Ba1,
which is one notch below investment grade, and kept the rating on review for
possible further downgrade.
The credit rating agencies all expressed concern over the Company's credit
quality due to continued uncertainty over the regulatory and legal environment
in Vermont, the protracted negotiations with Hydro-Quebec and other power
suppliers, and the on-going discussions with lenders to renew lines of
short-term credit. All three rating agencies commented favorably on the
Company's achieving approval of two temporary rate increases from the Vermont
Public Service Board after successful negotiations with the Vermont Public
Service Department and the Company's largest customer, IBM. The Company pointed
to these temporary rate increases as positive developments in its continuing
effort to maintain active and constructive discussions with the Vermont Public
Service Department.
The rating agencies also observed with approval the Company's efforts to
significantly reduce its operating costs while maintaining highly satisfactory
levels of customer service.
Despite the downgrade by Moody's, the Company noted that there are no new
business developments or changes in circumstances relating to GMP. It continues
to:
*
* negotiate actively with Hydro-Quebec to reform its long-term power
contract
* pursue regulatory approval for the proposed sale of Vermont Yankee
* prosecute the arbitration relating to Hydro Quebec's failure to deliver
power during the 1998 ice storm
* pursue the on-going rate case before the Vermont Public Service Board.
GMP expects to renew its $15 million line of credit in the near future, and
is negotiating for other sources of credit. The Company does not expect to
borrow until normal seasonal cash needs arise in the fall.
For further information, please contact Nancy Rowden Brock, Chief Financial
Officer, (802) 655-8451, or Dorothy Schnure, Manager of Corporate
Communications, (802) 655-8418.
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
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NANCY ROWDEN BROCK, VICE PRESIDENT, CHIEF FINANCIAL
OFFICER, TREASURER AND CORPORATE
SECRETARY
BY /S/ ROBERT J. GRIFFIN
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ROBERT J. GRIFFIN, CONTROLLER
DATED: April 19, 2000