Central Vermont Announces Second Quarter Results.

RUTLAND, Vt.--(BUSINESS WIRE)--Aug. 3, 1999--

Central Vermont Public Service Corp.(NYSE:CV) today reported net income of $.4 million, or $.00 per share of common stock for the second quarter of 1999, compared to a net loss of $5.5 million, or $.52 per share of common stock, for the second quarter of 1998. Due to the Company's winter sales peak and higher winter rates, the Company normally experiences losses in the second and third quarters when sales are lower and rates are reduced.

Net income was $13.1 million, or $1.07 per share of common stock, for the first six months of 1999 compared to $4.8 million, or $.34 per share of common stock, for the comparable 1998 period.

Higher second quarter and first half 1999 earnings compared to 1998 resulted from several factors, including:

Second Quarter:

-- The favorable impact of $1.3 million after-tax, or $.11 per share of common stock, primarily from a 4.7% temporary Vermont retail rate increase effective with service rendered January 1, 1999;

-- lower 1999 net power costs of $3.8 million after-tax, or $.33 per share of common stock, principally related to better performance at Millstone Unit No. 3 and Vermont Yankee nuclear power plant;

-- the positive impact in 1999 of $1.1 million after-tax, or $.10 per share of common stock as the result of disallowed Hydro-Quebec power costs during the fourth quarter of 1998;

-- lower 1999 non-utility income of $.2 million after-tax or $.02 per share of common stock;

First Six Months:

-- The favorable impact of $3.8 million after-tax, or $.33 per share of common stock primarily from a 4.7% temporary Vermont retail rate increase;

-- favorable impact of $1.7 million after-tax, or $.15 per share of common stock associated with a 2.2% (24,701 mWh) increase in 1999 retail mWh sales;

-- lower 1999 net power costs of $4.3 million after-tax, or $.39 per share of common stock, principally related to better performance at Millstone Unit No. 3 and Vermont Yankee nuclear power plant;

-- the positive impact in 1999 of $2.3 million after-tax, or $.20 per share of common stock as the result of disallowed Hydro-Quebec power costs during the fourth quarter of 1998;

-- lower 1999 transmission costs of $.6 million after-tax or $.05 per share of common stock as the result of a settled contract dispute; and,

-- the 1998 first six months reflects the positive impact of reversing Connecticut Valley Electric Company's fourth quarter 1997 after-tax charges of $4.5 million or $.39 per share of common stock;

Net income for the twelve months ending June 30, 1999 was $12.3 million, or $.91 per share of common stock, compared to $8.7 million, or $.59 per share of common stock for the 1998 period.

For the twelve months ending June 30, 1999, return on average common equity allocated to the Vermont utility business was 8.2 percent, while the consolidated return was 5.6 percent.

Net cash flow provided by operating activities was $32.9 million for the first six months of 1999 versus $6.9 million for the first six months of 1998. The increase is due to increased cash earnings, the extended refueling outage at the Vermont Yankee Nuclear Power Plant in the 1998 period and lower tax payments.

Also, on July 30, 1999 the Company sold $75.0 million aggregate principal amount of 8 1/8% Second Mortgage Bonds due 2004 at a price of 99.915% in accordance with Securities and Exchange Commission Rule 144A. The net proceeds of the offering were used to repay $15.0 million of outstanding loans under the Company's revolving credit facility and are expected to be used for other general corporate purposes relative to the Company's utility business. In addition, the Company canceled its $40.0 million revolving credit facility. The bonds have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration under such Act or applicable exemption from the registration requirements.

CV is Vermont's largest electric utility, serving over 140,000 customers state-wide. Through its subsidiary, Connecticut Valley, CV serves 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, as well as the outcome of litigation involving Connecticut Valley and Central Vermont. The Company cannot predict the outcome of any of these proceedings.

We have closed our books for the period ended June 30, 1999 and in my judgement 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. James M. Pennington, Vice President and Controller. -0-

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

                                                Quarter Ended
                                                   June 30
                                             1999            1998

Central Vermont Public Service
 Corporation-Consolidated:

Retail MWH Sales                           539,545         536,997

Operating revenues                         $93,139         $66,406

Net income (loss)
 before extraordinary items                $416(a)        $(5,452)

Net income (loss)                          $416(a)        $(5,452)

Preferred stock
 dividend requirements                        $466            $487

Earnings (Losses) available
 for common stock                         $(50)(a)        $(5,939)

Average shares of
 common stock outstanding               11,462,417      11,425,725

Basic and Diluted Share
 of Common Stock:
  Earnings (losses)
   before extraordinary items              0.00(a)         $(0.52)
  Extraordinary items                           --              --

Earnings (Losses) per basic and
 diluted share of common stock             0.00(a)         $(0.52)

Net cash provided (used)
 by operating activities                    $4,463        $(9,688)

Catamount Energy Corporation:
 Earnings per share of common stock          $0.03           $0.05



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

                                              Six Months Ended
                                                   June 30
                                            1999           1998

Central Vermont Public Service
 Corporation-Consolidated:

Retail MWH Sales                         1,166,281       1,141,580

Operating revenues                        $191,781        $150,364

Net income (loss)
 before extraordinary items             $13,146(a)       $3,939(b)

Net income (loss)                       $13,146(a)     $4,812(b,c)

Preferred stock
 dividend requirements                        $931            $973

Earnings (Losses) available
 for common stock                       $12,215(a)     $3,839(b,c)

Average shares of
 common stock outstanding               11,461,778      11,424,843

Basic and Diluted Share
 of Common Stock:
  Earnings (losses)
   before extraordinary items             $1.07(a)        $0.26(b)
  Extraordinary items                           --        $0.08(c)

Earnings (Losses) per basic and
 diluted share of common stock            $1.07(a)      $0.34(b,c)

Net cash provided (used)
 by operating activities                   $32,899          $6,938

Catamount Energy Corporation:
 Earnings per share of common stock          $0.08           $0.11



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

                                             Twelve Months Ended
                                                   June 30
                                            1999           1998

Central Vermont Public Service
 Corporation-Consolidated:

Retail MWH Sales                         2,318,815       2,281,292

Operating revenues                        $345,252        $301,160

Net income (loss)
 before extraordinary items             $13,200(d)       $8,626(f)

Net income (loss)                     $12,318(d,e)     $8,688(c,f)

Preferred stock
 dividend requirements                      $1,904          $1,987

Earnings (Losses) available
 for common stock                     $10,414(d,e)     $6,701(c,f)

Average shares of
 common stock outstanding               11,458,004      11,424,116

Basic and Diluted Share
 of Common Stock:
  Earnings (losses)
   before extraordinary items              $.98(d)        $0.58(f)
  Extraordinary items                   $(0.07)(e)        $0.01(c)

Earnings (Losses) per basic and
 diluted share of common stock           $.91(d,e)      $0.59(c,f)

Net cash provided (used)
 by operating activities                   $47,704          $9,909

Catamount Energy Corporation:
 Earnings per share of common stock          $0.25           $0.38

(a) Reflects a reversal of non-recurring charge-off (net of taxes) of $1,140 ($.10 per share) for the second quarter of 1999 and $2,280 ($.20 per share) for the first half of 1999, originally recorded in the fourth quarter of 1998 at $4,318 ($.38 per share).

(b) Reflects a reversal of non-recurring charge-off (net of taxes) of $3,575 ($.31 per share) originally recorded in the fourth quarter of 1997.

(c) Reflects a reversal in the first quarter of 1998 of an extraordinary charge (net of taxes) of $873 ($.08 per share) originally recorded in the fourth quarter of 1997 at $811 ($.07 per share).

(d) Reflects non-recurring net charge-offs (net of taxes) of $4,848 ($.43 per share) originally recorded in the fourth quarter of 1998 at $7,128 ($.63 per share).

(e) Reflects an extraordinary charge (net of taxes) of $882 ($.07 per share) recorded in the fourth quarter of 1998.

(f) Reflects a gain from sale of investment (net of taxes) of $1,821 ($.16 per share) recorded in the third quarter of 1997.