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):
NOVEMBER 15, 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-Announcement of Revised Vermont Yankee sale agreement.
The Company is responsible for 17.9 percent of Vermont Yankee Nuclear Power
Corporation ("Vermont Yankee") expenses of operations, including cost of
capital. On November 15, 2000, the owners of Vermont Yankee accepted an
improved offer for the sale of the nuclear power plant to AmerGen Energy Company
("AmerGen"). Green Mountain Power Corporation("the Company"), Vermont Yankee,
AmerGen, Central Vermont Public Service Corporation and the Vermont Department
of Public Service filed with the Vermont Public Service Board on November 16,
2000 a Memorandum of Understanding outlining the terms of the proposed sale.
The proposed transaction calls for the Company to purchase power generated at
the plant until 2012. Based upon the expected regulatory treatment of these
costs, the Company does not believe the sale will have a material impact on the
financial condition or operation of the Company. The Company cannot predict
whether this settlement will receive appropriate regulatory approvals.
A copy of the press release issued by Vermont Yankee follows:
The owners of the Vermont Yankee Nuclear Power plant have accepted an
improved offer for the sale of the 540-megawatt plant to the AmerGen Energy
Company of Philadelphia, Pennsylvania.
The revised proposal submitted to the Vermont Public Service Board (PSB)
today boosts the total value of the deal to $93.8 million. Assuming a June 30,
2001 sale date, this value includes a $61 million adjusted purchase price,
future credits on power purchases to account for the value of the reactor fuel
and reduced decommissioning costs.
Like the original proposal, the new proposal calls for AmerGen to sell
power to 61.5% of the present Vermont Yankee owners, including Green Mountain
Power and Central Vermont Public Service Corp., over the remaining 12-year life
of the plant. The reduced purchased power cost is due in part to AmerGen
crediting ratepayers for the value of the fuel in the plant's reactor.
Included in the new proposal is a so called "low-market price adjuster," which
was strongly advocated by the Vermont Department of Public Service (VDPS). If
power prices on the free market (as defined by the terms of the agreement) drop
to less than 95% of the purchase power agreement, the adjuster clause will
automatically reduce the cost of Vermont Yankee power to ensure it remains
competitively priced.
Consistent with the earlier proposal, the present owners will top-off a
fund set aside for decommissioning the plant at the termination of its license
in 2012. However, the total funds required to be transferred under the new
proposal represents a shift of more than $17 million in costs from Vermont
Yankee's current owners to the buyer.
At a special hearing of the PSB in October, the board granted an additional
month negotiating time as AmerGen, Vermont Yankee and the Vermont Department of
Public Service (DPS) neared a final settlement that all three parties would
support in testimony before the PSB. The deadline for a settlement was November
15.
<PAGE>
Vermont Yankee financial vice president Bruce Wiggett said the 30-day delay
granted by the PSB was very worthwhile. "With this new proposal, that has the
support of AmerGen, Vermont Yankee and the DPS, the State of Vermont's ratepayer
advocate, we are in a much better position to see the sale approved. We look
forward to a formal review and ruling by the PSB. The sooner the sale is
approved, the sooner we can see benefits to the customers and our employees,"
Wiggett said.
The new adjusted sale price of $61 million is based on an AmerGen payment
for the plant and property, an AmerGen payment of the costs associated with the
upcoming refueling outage and an AmerGen payment for the new reactor fuel.
The new proposal continues to ensure AmerGen will offer employment to
substantially all present Vermont Yankee personnel at the time of the ownership
transfer and will recognize the International Brotherhood of Electrical Workers
Union Local 300 as the bargaining agent for transferred bargaining unit
employees.
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, TREASURER AND
CORPORATE SECRETARY
BY /s/ROBERT J. GRIFFIN
----------------------
ROBERT J. GRIFFIN, CONTROLLER
DATED: November 17, 2000
<PAGE>