Central Vermont responds to New Hampshire order.RUTLAND, Vt.--(BUSINESS WIRE)--March 12, 1997--Central Vermont Public Service Corp. (CV-NYSE) today reported that it would "vigorously pursue the recovery" of costs that the New Hampshire Public Utilities Commission New Hampshire Public Utilities Commission (NHPUC) is a New Hampshire state government regulatory agency that regulates and approves some of the charges of electric, telecommunications, natural gas, water and sewer utilities in the state. would deny under its order related to stranded cost recovery specific to CV's New Hampshire New Hampshire, one of the New England states of the NE United States. It is bordered by Massachusetts (S), Vermont, with the Connecticut R. forming the boundary (W), the Canadian province of Quebec (NW), and Maine and a short strip of the Atlantic Ocean (E). subsidiary, Connecticut Valley Electric Company. On Feb. 28, the NHPUC NHPUC New Hampshire Public Utilities Commission issued its final order on industry restructuring in New Hampshire. The order provides for open retail competition to begin in the state on Jan. 1, 1998. The order also denies recovery of costs associated with Connecticut Valley's FERC-approved contract with Central Vermont and further ordered the contract terminated. The company's preliminary estimate of net revenues lost in association with this potential disallowance dis·al·low tr.v. dis·al·lowed, dis·al·low·ing, dis·al·lows 1. To refuse to allow: "[The government] is approximately $80 million (pre-tax) over the life of the underlying resources, about twenty-eight years. The company believes that the NHPUC has exceeded its jurisdiction and that the FERC FERC Federal Energy Regulatory Commission FERC FEMA Emergency Response Capability is the appropriate forum for resolving these matters. If the FERC determines that it will not permit recovery of these costs, the company would have to assess the likelihood and magnitude of losses incurred under generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting . The order moves from cost-based ratemaking rate·mak·ing n. The practice of establishing rates of payment, as for public transportation or utilities. rate to a market-based approach to stranded cost recovery. Absent legal intervention or modification of the order, this shift may require that the company remove the regulatory assets associated with its New Hampshire business from its balance sheet. This could result in a write-off of approximately $2.6 million (before taxes) in the first quarter 1997. The final order did approve the recovery through interim stranded cost charges of the projected above-market power costs associated with purchases from Qualifying Facilities that were previously approved by the NHPUC. Central Vermont is Vermont's largest electric utility, serving 138,000 customers state-wide. Connecticut Valley serves 10,000 customers in New Hampshire. In 1996 the company had $17.4 million in earnings. CONTACT: Central Vermont Public Service Corp. Steve Costello 802-229-9448 (work) 802-244-1905 (home) |
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