Central Vermont allowed 4.27 percent rate increase.RUTLAND, Vt.--(BUSINESS WIRE)-- Nov. 2, 1994 -- On Oct. 31, 1994, the Vermont Vermont (vərmŏnt`) [Fr.,=green mountain], New England state of the NE United States. It is bordered by New Hampshire, across the Connecticut R. Public Service Board (PSB PSB Pet Shop Boys (band) PSB Public Service Broadcasting (radio and television) PSB Public Service Board (Vermont) PSB Public Security Bureau (China) ) issued an order allowing Central Vermont a 4.27 percent increase in its base retail rates. This means new revenues of approximately $8,575,000. The new rates went into effect with service rendered beginning November 1, 1994. CV had requested an 8.9 percent, $17.9 million, increase in rates in February 1994. The PSB order also lowered the allowed rate of return on the company's common stock equity from 12 percent to 10 percent. This return includes a .75 percent penalty for "mismanagement mis·man·age tr.v. mis·man·aged, mis·man·ag·ing, mis·man·ag·es To manage badly or carelessly. mis·man  age·ment n. of power supply options" and the company's "failed efforts to acquire all cost-effective cost-effective,n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. energy-efficiency resources." The company disagrees with the PSB's conclusions. Based on a preliminary review of the rate order, the company anticipates an after- tax write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of approximately $2.0 million during the fourth quarter of 1994. Central Vermont is the largest electric utility in Vermont serving half the state's 560,000 residents. CONTACT: Bruce H. Simons 802-747-5427/home 802-775-1593 |
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