Central Vermont Public Service Corporation Files 8K Statement.

RUTLAND, Vt.--(BUSINESS WIRE)--Nov. 3, 1998--Central Vermont Public Service Corp. today filed an 8K statement with the Securites and Exchange Commission. The 8K statement follows. -0-

                  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) October 27,1998

              CENTRAL VERMONT PUBLIC SERVICE CORPORATION

        (Exact name of registrant as specified in its charter)



   Vermont                     1-8222          03-0111290
(State of other jurisdic-   (Commission     (IRS Employer
 tion of incorporation)      File Number)    Identification No.)



   77 Grove Street, Rutland, Vermont                    05701
(Address of principal executive offices)              (Zip Code)



Registrant's telephone number, including area code 802-773-2711

                              N/A
(Former name or former address, if changed since last report)

Item 5.  Other Events.

Vermont Retail Rate Settlement:

     On June 12, 1998, Central Vermont Public Service Corporation
(Company) filed with the Vermont Public Service Board (PSB) for a
10.7% or $24.7 million on an annualized basis retail rate increase to
become effective March 1, 1999. On October 27, 1998 the Company
reached an agreement with the Vermont Department of Public Service
(DPS) regarding this rate increase request.
     The agreement, if approved by the PSB, provides for a temporary
rate increase in the Company's Vermont retail rates of 4.7% or $10.9
million on an annualized basis beginning with service rendered January
1, 1999. The temporary rate increase is subject to adjustment upon
future resolution of the Hydro-Quebec Contract issues presently before
the Vermont Supreme Court (VSC).
     The agreement incorporates a disallowance of approximately $7.4
million for the Company's purchased power costs under the Hydro-Quebec
Contract while the VSC reviews the PSB denial of the Company's claim
that the PSB is precluded from again trying the Company on certain
Hydro-Quebec Contract issues. Upon approval of the agreement by the
PSB, the Company will accrue under Statement of Financial Accounting
Standards (SFAS) No. 5, "Accounting for Contingencies," approximately
$7.4 million on a pre-tax basis for purchased power expense,
representing the Company's estimated loss on the Hydro-Quebec power
contract for the twelve months following December 31, 1998. The
Company anticipates the PSB's decision on the rate increase agreement
during the fourth quarter of 1998 and resolution of the Hydro-Quebec
Contract issues by the end of 1999. In addition, the agreement
reflects an elimination of $3.8 million in non-Hydro-Quebec costs.
     Historically, the Company has prepared its financial statements
in accordance with SFAS No. 71, "Accounting for the Effects of Certain
Types of Regulation," as amended. In order for the Company to report
under SFAS No. 71, the Company's rates must be designed to recover its
costs of providing service, and the Company must be able to collect
those rates from customers. If rate recovery of these costs becomes
unlikely or uncertain, whether due to competition or regulatory
action, these accounting standards may no longer apply to the
Company's regulated operations. In the event the Company determines
that it no longer meets the criteria for applying SFAS No. 71, the
accounting impact would be an extraordinary non-cash charge to
operations of an amount that would be material. Based on a current
evaluation of the various factors and conditions that are expected to
impact future cost recovery, including the agreement discussed above,
management believes that its regulatory assets are probable of future
recovery in the State of Vermont for the Company's retail business.

Change in Board of Directors:

     In October 1998, Delano E. Lewis notified the Company that he
would be unable to continue as a member of the Company's Board of
Directors. Mr. Lewis, who also is leaving his position as president
and chief executive officer of National Public Radio, is relocating to
the Southwest and has found it necessary to reduce the scope of his
professional commitments. Janice L. Scites, who is currently an
Advisory Director of the Company, was appointed by the Board of
Directors to fill this vacancy.

Revolving Credit and Competitive Advance Facility:

     The Company has a $50.0 million revolving credit facility with a
group of banks which matures on June 1, 1999. No borrowings were
outstanding at September 30, 1998 but borrowings are expected to be
$25.0 million as of June 1, 1999 as a result of scheduled first
mortgage bond maturities. In addition, the Company must roll over an
aggregate of $16.3 million of letters of credit between May 1999 and
December 1999. The Company's ability to extend or replace the maturing
$50.0 million revolving credit facility and roll over the $16.3
million of maturing letters of credit will be dependent in large part
on a positive outcome of the pending Hydro-Quebec matter at the VSC.
     This document contains statements that are forward looking. These
statements are based on current expectations that are subject to risks
and uncertainties. Actual results will depend, among other things,
upon the actions of regulators as well as litigation related thereto.
The Company cannot predict the outcome of any of these proceedings.

                            SIGNATURE

     Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned thereunto duly authorized.


                  CENTRAL VERMONT PUBLIC SERVICE CORPORATION


              BY          James M. Pennington
                James M. Pennington, Vice President and
              Controller and Principal Accounting Officer

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