Central Vermont Announces Fourth Quarter Results.

Business Editors

RUTLAND, Vt.--(BUSINESS WIRE)--Feb. 17, 2000

Central Vermont Public Service (CV-NYSE) today reported net income of $3.0 million, or $.22 per share of common stock for the fourth quarter of 1999, compared to a net loss, after extraordinary charge, of $.6 million, or $.09 per share of common stock, for the fourth quarter of 1998.

Net income was $16.6 million, or $1.28 per share of common stock, for the twelve months of 1999 compared to $4.0 million, or $.18 per share of common stock, for the comparable 1998 period.

Higher fourth quarter and twelve months 1999 earnings compared to 1998 resulted from a variety of factors, including:

Fourth Quarter:

--favorable utility revenues of $2.4 million after-tax, or $.19 per share of common stock, primarily resulting from a 4.7% temporary Vermont retail rate increase effective January 1, 1999, partially offset by a .5% (3,059 mWh) decrease in 1999 retail mWh sales;

--higher 1999 net power costs of $1.4 million after-tax, or $.12 per share of common stock, principally related to the Vermont Yankee outage in the fourth quarter of 1999, while the 1998 outage was earlier in the year;

--positive effect in 1999 of $4.3 million after-tax, or $.38 per share of common stock as the result of the Vermont Utility recognizing disallowed Hydro-Quebec purchased power costs accrued during the fourth quarter of 1998, and the reversal of a portion of these 1998 after-tax charges during the fourth quarter of 1999 ( $1.1 million, or $.09 per share of common stock), partially offset by the charge during the fourth quarter of 1999 of Hydro-Quebec disallowed first quarter 2000 costs representing estimated under recovery prior to further resolution, ($1.7 million after-tax, or $.15 per share of common stock);

--positive effect in 1999 of Connecticut Valley's charges taken during the fourth quarter of 1998 of $3.7 million after-tax, or $.32 per share of common stock, and the reversal in 1999 of 1998 charges taken during the fourth quarter of 1999 of $.4 million after-tax, or $.03 per share of common stock, partially offset by the recognition of disallowed 2000 power costs taken during the fourth quarter of 1999 of $.8 million after-tax, or $.07 per share of common stock;

--increased non-utility losses of $1.9 million after-tax, or $.17 per share of common stock, primarily related to SmartEnergy's proportionate share in Home Service Solutions;

--higher operating and maintenance costs of $1.8 million after-tax, or $.16 per share of common stock, caused primarily by an increase in distribution costs, partially offset by the favorable effect of Accounting Orders for the deferral of certain legal and regulatory costs of $1.3 million after-tax, or $.12 per share of common stock; and

--higher interest and other costs, of $1.1 million after-tax or $.15 per share of common stock.

Twelve Months:

--favorable utility revenues of $9.7 million after-tax, or $.84 per share of common stock, resulting primarily from a 4.7% temporary Vermont retail rate increase effective January 1, 1999 and a 2% increase in 1999 of retail mWh revenues;

--lower 1999 net power costs of $1.7 million after-tax, or $.14 per share of common stock, principally related to better performance at Millstone Unit No. 3 (Millstone Unit No. 3 was off line during the first half of 1998) and Vermont Yankee nuclear power plant due to the extended refueling outage in 1998, partially offset by higher net power costs related to the Hydro-Quebec contract;

--positive effect in 1999 of $4.3 million after-tax, or $.38 per share of common stock as the result of the Vermont Utility recognizing disallowed Hydro-Quebec purchased power costs accrued during the fourth quarter of 1998, and the reversal of these 1998 charges during 1999 ($4.3 million after-tax, or $.38 per share of common stock), partially offset by the charge taken during the fourth quarter of 1999, for Hydro-Quebec disallowed first quarter 2000 costs, representing estimated under recovery prior to further resolution ($1.7 million after-tax, or $.15 per share of common stock);

--higher other operating and maintenance costs of $3.1 million after-tax, or $.28 per share of common stock, caused primarily by Hurricane Floyd during September 1999 as well as increased regulatory and legal cost, partially offset by the favorable effect of Accounting Orders for the deferral of certain legal and regulatory costs of $1.3 million, or $.12 per share of common stock;

--increased non-utility losses of $2.3 million after-tax, or $.22 per share of common stock, related to SmartEnergy's proportionate share in Home Service Solutions and Catamount Energy Corporation; and

--higher interest costs of $1.1 million after-tax, or $.10 per share of common stock.

For the twelve months ending December 31, 1999, return on average common equity allocated to the Vermont utility business was 10.4 percent, while the consolidated return was 7.9 percent. On a pro forma basis, excluding the reversal of the 1998 Hydro-Quebec disallowance accrual in 1999 and the Hydro-Quebec disallowance accrual booked in the fourth quarter of 1999, the return on average common equity for the Vermont utility business was 8.5%.

Net cash flow provided by operating activities was $31.2 million for the twelve months of 1999 versus $21.7 million for the comparable period of 1998. The increase is primarily due to increased cash earnings.

CV is Vermont's largest electric utility, serving over 141,000 customers statewide. Through its subsidiary, Connecticut Valley, CV also serves over 10,000 customers in New Hampshire.

This document contains statements that are forward looking. These statements are based on current expectations that are subject to significant risks and uncertainties. Actual results will depend, among other things, upon the actions of regulators, the outcome of litigation involving Connecticut Valley, Central Vermont and the performance of the Company's unregulated businesses. The Company cannot predict the outcome of any of these proceedings.

We have closed our books for the period ended December 31, 1999 and in my judgment all adjustments necessary to properly present results of operations have been made. The information shown below should be released to the financial media without delay. Francis J. Boyle, Senior Vice President, Chief Financial Officer and Treasurer.

              Central Vermont Public Service Corporation
                     Consolidated Earnings Release
           (Dollars in thousands, except per share amounts)

                                 Quarter Ended
                                  December 31
                             1999              1998

Central Vermont Public
 Service
 Corporation-Consolidated:

    Retail MWH Sales        590,939           593,998

    Operating revenues    $ 114,813         $  83,949

    Net income
     (loss) before
     extraordinary
     items                $   3,028 (a),(b) $     273  (a),(b),(d)

    Net income
    (loss)                $   3,028 (a),(b) $    (600) (a),(b),(c),(d)

    Preferred stock
     dividend
     requirements         $     465         $     486

    Earnings (Losses)
     available
     for common stock     $   2,563 (a),(b) $  (1,086) (a),(b),(d)

    Average shares
     of common
     stock outstanding   11,466,166        11,459,999

    Basic and Diluted
     Share of Common
     Stock:
         Earnings (losses)
          before
          extraordinary
          items           $   0.22 (a),(b) $  (0.03) (a),(b),(d)
         Extraordinary
          items               --           $   (.07) (c)

    Earnings (Losses)
     per basic and
     diluted share
     of common stock      $   0.22 (a),(b) $  (0.10) (a),(b),(c),(d)

    Net cash provided
     (used) by operating
     activities           $   (864)        $  4,900

Catamount Energy Corporation:
    Earnings per share of
         common stock     $   0.07         $   0.10

SmartEnergy Services, Inc.
     Earnings per share
      of common stock    ($    .16)        $   (.03)





              Central Vermont Public Service Corporation
                     Consolidated Earnings Release
           (Dollars in thousands, except per share amounts)

                                    Twelve Months Ended
                                        December 31
                                  1999              1998

Central Vermont Public Service
 Corporation-Consolidated:

    Retail MWH Sales           2,340,440         2,294,114


    Net income before
     extraordinary items         $16,584 (a),(b)    $3,983 (a),(b),(d)

    Net income                   $16,584 (a),(b)    $3,983 (a),(b),(d)

    Preferred stock dividend
     requirements                 $1,862             $1,945

    Earnings available for
     common stock                $14,722 (a),(b)    $2,038 (a),(b),(d)

    Average shares of common
     stock outstanding        11,463,197        11,439,688

    Earnings  per basic and
     diluted share of
      common stock                 $1.28 (a),(b)     $0.18 (a),(b),(d)

    Net cash provided by
     operating activities        $31,231           $21,743

Catamount Energy Corporation:
    Earnings per share of
         common stock              $0.18             $0.29

SmartEnergy Services, Inc.
     Earnings per share of         ($.25)            $(.14)
         common stock

(a) Includes the following related to the Hydro-Quebec purchased power cost: a charge-off (net of taxes) of $1,677 ($.15 per share) for the fourth quarter of 1999 and reflects a reversal of a charge-off (net of taxes) of $1,080 ($.09 per share) for the fourth quarter of 1999 and $4,318 ($.38 per share) for the twelve months of 1999. The $4,318 was originally recorded in the fourth quarter of 1998 at $4,318 ($.38 per share).

(b) Includes the following related to Connecticut Valley: a charge-off (net of taxes) of $781 ($.07 per share) for the fourth quarter of 1999; a charge-off (net of taxes) of $1,031 recorded in the fourth quarter of 1998 ($.09 per share), and a reversal of a portion of the charge-off (net of taxes) of $371 ($.03 per share) for the fourth quarter of 1999 and a reversal of the charge-off (net of taxes) of $1,031 ($.09 per share) for the twelve months of 1999.

(c) Reflects a Connecticut Valley extraordinary charge (net of taxes) of $882 ($.07 per share) recorded in the fourth quarter of 1998.

(d) Reflects a Connecticut Valley non-recurring charge-off (net of taxes) of $1,779 ($.16 per share) recorded in the fourth quarter of 1998.