Which bid for CVPS is best for Vermonters? - WCAX.COM Local Vermont News, Weather and Sports-

Which bid for CVPS is best for Vermonters?

Rutland, Vermont - June 24, 2011

Two Canadian conglomerates are in a bidding war over Vermont's biggest power company.

On March 30 the Canadian power company Fortis announced its plan to purchase Central Vermont Public Service for $470 million, but just Thursday CVPS was surprised by an unsolicited second offer from Gaz Metro, the parent company of Green Mountain Power. The company says it will match Fortis' offer and raise them 15 cents more per share. Now the question is which deal best suits the customers?

Energy expert Michael Dworkin of the Vermont Law School says Central Vermont Public Service is seen as an attractive investment and a hot commodity for companies seeking a low risk investment with a focus on energy efficiency and utilizing smart grids for customer predictability.

"Neither of those are flashy, cutting edge, but they are both ahead of the industry and together they help," Dworkin said.

For Fortis, the first company to make an offer, it would be their first foray into the American power market.

"My perception of why they did was the combination of a relatively low-risk investment, and a well-understood situation. Plus being able to show they had some U.S. experience," Dworkin said.

A step which would grant them full access to VELCO's power line infrastructure. Some argue the company could use those transmission lines as short cut to larger power markets in the U.S. But Dworkin says the grid could handle that kind of influx.

"We get about one-third of our electricity from Canada right now, and our lines were built to handle that," he said. "They are not so strong for moving it to Southern New England after that. It could be done, but there are other paths do to it as well."

Dworkin says Gaz Metro's interest in CVPS may be because it would give them greater weight when negotiating power contracts.

"You are putting more dollars on the table so you can ask for a bigger cut," Dworkin said.

He says GMP and CVPS customers have similar peak usage hours, making it easier to buy bulk power for both companies.

"So if the two serve territories fit together technically in terms of matching demand, having levelized demand around the clock-- that offers a real chance for savings," Dworkin said.

Dworkin says not enough information has been released about either offer to know what is best for CVPS, but expects the customer to benefit either way.

"We have had a pretty successful record of using efficiency to control the cost of power," he said. "If these companies make it effective and work well with Efficiency Vermont, I think the answer is either one of them could keep us in a healthy situation in regard to rates."

Both companies have promised no layoffs and minimal change in higher up positions. Dworkin did bring up that if GMP and CVPS are both controlled by the same company that Vermonter's would lose the ability to compare them in terms of their public service.

Molly Smith - WCAX News

Related Story:

Bidding war for CVPS

  • Local NewsMore>>

  • Officer involved shooting in Bennington Police Dept.

    Officer involved shooting in Bennington Police Dept.

    Wednesday, April 23 2014 12:22 AM EDT2014-04-23 04:22:02 GMT
    Police say there has been an officer involved shooting inside the Bennington Police Department. It happened just before 9 Tuesday evening. Authorities are releasing very few details. But say the Bennington Police Chief has called in the Vermont State Police to investigate after an officer allegedly shot a man in the lobby of the police station. No word yet on what prompted the shooting. The injured man was taken to a hospital. Police would not comment on the severity of his injuries. Initial ...More >>
    Police say there has been an officer involved shooting inside the Bennington Police Department. It happened just before 9 Tuesday evening. Authorities are releasing very few details. But say the Bennington Police Chief has called in the Vermont State Police to investigate after an officer allegedly shot a man in the lobby of the police station. No word yet on what prompted the shooting. The injured man was taken to a hospital. Police would not comment on the severity of his injuries. Initial ...More >>
  • Champlain College housing plans put on hold

    Champlain College housing plans put on hold

    Wednesday, April 23 2014 12:22 AM EDT2014-04-23 04:22:42 GMT
    It's a fight that's pitting Champlain College against the Queen City. The school says it's not giving up on building more student housing, even after being denied land-use permits. Years ago, the college made a commitment to create housing for all students but that goal has hit a snag, with their recent construction plans on hold.The project would create more than 300 beds for Champlain students on St. Paul Street, but the Development Review Board denied the permits the college needed based o...More >>
    It's a fight that's pitting Champlain College against the Queen City. The school says it's not giving up on building more student housing, even after being denied land-use permits. Years ago, the college made a commitment to create housing for all students but that goal has hit a snag, with their recent construction plans on hold.The project would create more than 300 beds for Champlain students on St. Paul Street, but the Development Review Board denied the permits the college needed based o...More >>
  • Burlington school budget on it's way back to voters

    Burlington school budget on it's way back to voters

    Tuesday, April 22 2014 11:56 PM EDT2014-04-23 03:56:59 GMT
    A new Burlington school budget is on its way to voters that is more expensive and has more cuts than the last version.The board of finance approved a $67.6 million budget. On Town Meeting Day voters shot down a budget that was about a million dollars less than this new budget. After a recent audit that uncovered a $2.5 million dollar deficit, the board was forced to slash $2.5 million in programming and staff. School board chair Patrick Halladay acknowledges concerns about a larger budget wit...More >>
    A new Burlington school budget is on its way to voters that is more expensive and has more cuts than the last version.The board of finance approved a $67.6 million budget. On Town Meeting Day voters shot down a budget that was about a million dollars less than this new budget. After a recent audit that uncovered a $2.5 million dollar deficit, the board was forced to slash $2.5 million in programming and staff. School board chair Patrick Halladay acknowledges concerns about a larger budget wit...More >>
  • Amphibians on the move

    Amphibians on the move

    Wednesday, April 23 2014 12:23 AM EDT2014-04-23 04:23:09 GMT
    People across the state are helping out their amphibian friends on the move. Biologists say this annual salamander crawl happens on the first warm rainy nights of spring like Tuesday night. Over half a dozen of different critters from frogs to spotted salamanders travel to breeding grounds. But often, experts say, that means crossing busy roads which can be deadly for a large number of amphibians. But groups on Pond Road in Shelburne, are giving a helping hand to get the salamanders safely ac...More >>
    People across the state are helping out their amphibian friends on the move. Biologists say this annual salamander crawl happens on the first warm rainy nights of spring like Tuesday night. Over half a dozen of different critters from frogs to spotted salamanders travel to breeding grounds. But often, experts say, that means crossing busy roads which can be deadly for a large number of amphibians. But groups on Pond Road in Shelburne, are giving a helping hand to get the salamanders safely ac...More >>
  • Vermont man accused of identity theft

    Vermont man accused of identity theft

    Wednesday, April 23 2014 12:23 AM EDT2014-04-23 04:23:34 GMT
    A Vermont man is accused of using stolen identities in a scheme to defraud banks now faces federal charges. Prosecutors say 35-year-old Brian Wyer used identities of Ohio and Kansas residents to obtain two Vermont non-driver ID cards. He then allegedly used the fraudulent IDs to open bank accounts in Massachusetts withdrawing about $75,000. Wyer was indicted in Vermont in June and taken into custody by U.S. marshals in Illinois last month. During his arraignment Monday in Burlington the judge...More >>
    A Vermont man is accused of using stolen identities in a scheme to defraud banks now faces federal charges. Prosecutors say 35-year-old Brian Wyer used identities of Ohio and Kansas residents to obtain two Vermont non-driver ID cards. He then allegedly used the fraudulent IDs to open bank accounts in Massachusetts withdrawing about $75,000. Wyer was indicted in Vermont in June and taken into custody by U.S. marshals in Illinois last month. During his arraignment Monday in Burlington the judge...More >>
  • Rutland vandals target parking meters

    Rutland vandals target parking meters

    Wednesday, April 23 2014 12:23 AM EDT2014-04-23 04:23:55 GMT
    Police say vandals in Rutland targeted several parking meters in a quest for quick cash. 11 meter locks and 12 meter cans filled with change were damaged along Merchants Row, Center Street, Court Street, Cottage Street and Justice Square parking lot. One meter pole and its vault was also destroyed. Police put damage in excess of thousand bucks. Anyone with information is asked to call Rutland City police.More >>
    Police say vandals in Rutland targeted several parking meters in a quest for quick cash. 11 meter locks and 12 meter cans filled with change were damaged along Merchants Row, Center Street, Court Street, Cottage Street and Justice Square parking lot. One meter pole and its vault was also destroyed. Police put damage in excess of thousand bucks. Anyone with information is asked to call Rutland City police.More >>
  • Vt. principal who faced criminal charges wants clearer mandatory reporting law

    Vt. principal who faced criminal charges wants clearer mandatory reporting law

    Tuesday, April 22 2014 6:53 PM EDT2014-04-22 22:53:40 GMT
    A law designed to protect kids landed a Vermont school principal in hot water. Now, Danville High School Principal Noah Noyes wants lawmakers to put the state's mandatory reporting rules under the microscope.More >>
    A law designed to protect kids landed a Vermont school principal in hot water. Now, Danville High School Principal Noah Noyes wants lawmakers to put the state's mandatory reporting rules under the microscope.More >>
  • Embezzlement case prompts changes from Vt. officials

    Embezzlement case prompts changes from Vt. officials

    Tuesday, April 22 2014 7:39 PM EDT2014-04-22 23:39:01 GMT
    The case of a Vermont worker charged with embezzling taxpayer money is prompting changes in the state's system.More >>
    The case of a Vermont worker charged with embezzling taxpayer money is prompting changes in the state's system.More >>
Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and WCAX. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.