ML20009F289
| ML20009F289 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 07/21/1981 |
| From: | VERMONT ELECTRIC COOPERATIVE, INC. |
| To: | |
| Shared Package | |
| ML20009F275 | List: |
| References | |
| NUDOCS 8107300251 | |
| Download: ML20009F289 (28) | |
Text
{{#Wiki_filter:_______ _ _ _ _ . 1 I 1980 Annual Report To the Owners of ermont Electric Cooperative, InC. t 1 tLM-$tRVICES METER DEPARTMENT PURCilASLNG & MECHANIC 4YANT M. MARY B. LARRYE. ERNLST T. WILLIAM II. DE.BBIE L. CLAYTON C. LLOYD D. DANIEL C. DONALD F. EVERETT GARY C. ROGER W. NATSCAS GATES ITRRY AUDIBERT LAMB, JR. COLE RUSSELL TILTON PERKLNS GIfLEN DUBRAY FRIEDRICH DUTfY
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leady to Meet the Shift Of Population from. . . O 8107300251 810721 PDR ADOCK 05000443 I PDR ,
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The Setting. It has been said that Co-op lir.es start whe e blacktop stops. The Co-op does, in fact, serve rural people who live along dirt roads. Revenue per mile of lint is about $2,500 corrpared to the
$30,000 of utilities that serve built-up areas. There are just over six Co-A Special Report eg members per miie ef iine cem-pared to the thirty, forty, sometimes Vertnant Electric Cooperative serves a one hundred customers per mile on I population altnost equal to Burlington. Tise city ~b^dlin-
M*** '"'"*~*P' i 9,611 tnernber households, of which 9,275 mainly residential, as tiie chart on are residential or fartn are along 1500 tniles p,g, 2s , sow,. ry,7, ,7, ,sou, ' of line in five counties. This Special Report is three hundred farms, a like number about the area served by the Co-op and a of small businesses, several schools, significant event, covering the past ten years, and one large manufacturing plant. Median income in many of the areas transpiring there. served by the Co-op is below state average. There is, however, another side to the coin, and that's what this Special Report is all about. 2 Twc Parts. There are two parts to Seabrook, shown tmder constrs.ction, will help supply elec- the Co-op service territory: The tricity for firms as varied as Spartan industries in Fairfax. lines near bustling growth and Butterfield in Derby Line and Express Foods in Georgia. Although Butterfield is the only one of the three on Co-op lines, the other firtns show the varied econornic activity in , counties served by the Co-op. ( g
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ROBERT E. RICHARD A. RICilARD L. BRUCEj. ALAN F. KENNETH M. LEONARD A. RICliARD H. ROLAND D. STANLEY E. LAMB PARKER SIVAYS LAMB COLE LOCKE SWIENER PERKLNS SAPGLNT ELLOW
& . *a economic activity and lines where there is little growth, and manufac-turing is non-e.4istant.
The counties in which Co-op lines VALUE POPUl.ATION OF Om represent, in economic activity, ADDED BY COUNTIES SERVED about one third of the Vermont MANUFACTURE BY THE CO-OP Gross State Product of 3.6 billion (B'""i"8' " 33 310) dollars. About a third of the state's 52* MimON (AMson 2M20) labor force of 230,000 are employed ses Mi m O N within their borders. Half the state's population of 511,299 live there. 550 N WON A Value added by manufacture in the Co-op's threc most rural coun- 544 MittION ties - Franklin, Lamoille and Orleans - amounts to $87 million 33.33o annually, about a third of those
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34.800 counties' total Gross Product. All of them increased in population from 1970 to 1980 as did the whole state. Q) I 21435 The Shift. Where have those in- , m 2e.7 9 creases taken place? A population $ $ _ h _ shif t in Vermont and Co-op service $ $ @ y $ @ $ $ 2 $ territory is underway. While Bur- 3 [ N j $ 5 [- I O $ 5 lington's population declined two percent in the decade, eight towns { f O @ fl h f f f served by the Co-op had substantial 54 MILLION Columns rerrewnting amounts too large for vark are >hown as broken. Photos courtesy of Vermont Travel Department and Agency of Development and Commumty Atta:rs. Photos of Nuag ra e. - - . . . - -- and St. Lawrence power stations are courtesy of Power Authonty S* ate of New York. We are indebted to Yankee Nuclea-Power Corp for the photo of sts plant in C n, N Vernon. and to Public Service Co. of New * *E ~ Hampshire for the photo of Seabrook
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"Special Report" Shows , It's the Trend In Which LOUls A. KELLY W. 1. ALAIN KEVIN C. PETER G. LEE G. IO5EPli P. ROBERT II. LAUREL E. CORDON C.
sCDIBERT BURNilAM PAQLTTTE KIDNEY llONCZAR flAYFORD PICHETTE DUCKLEsS PERSICO SMITil
ing. But chart (KW), showing yearly those summer valleys. Moreover, increases. One - Underhill - saw use, demonstrates how li:tle used, they provide generating capacity in its population shoot up eighty per- the wint: r that can be used both by cent. Williston, Jericho, Fairfax, throughout the year, the Co-op system is. As more and more the manufacturing plant and ne . Georgia, and Guilford all increased residential members are added, this residential members because in population. Meanwhile, all urban fact will be accentuated. manufacturing peaks and residential centers in Vermont except peaks aren't at the same time. Springfield and Bennington, lost population. (See charts). The Strategy. A new rate design or pricing method, Wise Watt The F:4t:4re. The Co-op provides "The trend appears clear," says the Vermont Agency of Develop- Owlt , controls on water heaters, dependable, high quality electric ser-storage hea, will all help shave vice. The average member outage ment and Community Affairs, peaks. But significant filling of tne was less than seven-tenths of one
larger Vermont communities are summertime low-use valley will percent in 1980. In addition, present losing population and smaller adja-cent communities are gaining." need new members, like Butterfield and new Co-op members are in Derby Line, who, because they assured of an adequate supply of
manufacture year round. help fill electricity bec. use of the Co-op's ~ The Co-op. As the new connec-tion chart shows, the Cc op has constant action in planning for and securing future generating capacity. gained in population too. Those In the meantime, the Co-op will 3,663 members represent a popula-tion of some 9,000. Since the Co-op C"'"'I' "l """1 N-I""*#*
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. need to u>e what resources it can spare to attract suitable manufactur-connected 370 new members in "#' ; firms to its lines.
1980 -- a year of extremely high #[[[7fl,, f
,$,',' f[,',j"f(#[,'/,#(>ro, is ,g mortgtge rates - it appears that shown in this graph.
this shif t to Co-op territory is only _ just beginning. ' 64 %
"he Significance. The Cooperative is o s ;he eve of an era of ac- m celen iting growth. The growth. A~ 51 %
how ver, will come in two ways: From new people Inoving into the area, and from increases in the use ; 44 % of electricity itself. m A glance at several charts underrcores this fact. Ducing 1980, a 5 the Co-op's peak demand increased l[ h 12 percent in December, and the use g g j of kilowatt hours climbed 3.4 per- M o 21 % cent for the year. (A record, all-time
$ - 3 o peak was set in February 1981). f - x
$ 3- o The charts also show the seasonal s f. $ @
nature of the Co-op. The chart U 2 $ 3 5 $ 5- " showing 24-hour use in the winter s 9 h
$ $ I demonstrates that there is a shallow * ~~
- valley between midnight and morn-V LP 3%
the Future o the Co-op Lies. It Has Been Going LNGINE ERING ACCOUNTING PETIR j. WILLIAM 11. LOls M. LINDA A. Ith N!!IR A. MARY ANN O. JOttN DOUGLAS E. CORDON C. DORICI s. SMITil, JR. (ODIN AL L AIRL TARBOX BE ARD RfCVE LYNCil PARKE R BOllN BRYTR
Deep sununer t alley of kilowatt
- dernand shows how saider used a rural electric co-op systern is. The gg t' alley - caused by the high 19 9 y teinter peaks - applies to the O whole systent: wires. transforrners, 22' substations, all of which are vnade ,
'b'94, large enough to nicet the heat'y 15 *I3 25.173
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- loads of winter dernand.
,,. 21.408 18,240 16.247
- 15. 2.M 14.500 14.707 3 ( 334 P. . >%
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{ Labor force in counties sert'ed by Ihe Co-op. Shallow t' alley in 24 hour winter period shows heat y use of systern during cold weather. l 12ANI 2 4 0 8 10 12PN1 2 4 6 8 10 12AN1 x - SATURDAY l - - - ja - FEBRU RY 2,1980 l
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i 7 N 1 e a a a e a a e a a a I 12AN1 2 4 6 8 10 12PN1 2 4 6 8 10 12Ah! i On Ten Years Now. All But Two Urban Areas in CUSTOMER ACCOL'NTS I C R RECEPTIONI5T oN E 9 MEll5SA A. GILLEN MARY E. 5)LVESTER SHIRLEY A. MEE51FR 9ER GHT MARIE F. WALKER JANE T. TALLMAN GAIL M. C ARPENT ER RUBY R. McNALLY MARY N'T RHODA T. KLMBLE f
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l' PRESIDENTS REPORT e 1. Douglas Webb Our theme, " Power and People" 1980 after many months of hard , work by our manager, Bill M is our belief that the rural areas served by Vermont Electric Co-op Gallagher. This assures us of the .d are good places to settle and raise a most reasonably priced power pos- , family or be in business. sible. In addition, the 57.4 million That's because the Co-op lines assets of generating plant and the , and rights-of-way are in excellent debt incurred to buy those assets .h,' !!'a, f' I shape, our employees are motivated will become part of the G & T Co- f4 and trained and we will have the op thereby reducing the margins power to meet the demands of needed by our distribution system to I growth. cover that debt. That growth, as our special report Thus, for each dime we invest in reveals, is real. People are finding time, in fees, and in wages, we ex-the rural areas more and more at. pect to get 15 or 20 cents in return. ~ tractive places to live, espedally We've been guided by that idea in when jobs are near at hand. We our search for alternative sources of welcome Butterfield to our lines as electric;ty; in our search for new a ". . -. symbolic of our need for more power sources, in our hiring prac-suitable industry, not only for the tices. Each day we try to do the best jobs they offer, but because a job possible in order to build the balance of industry and residential strongest possible co-op. 6 members makes the cost of elec- But no matter how good a job we
, tricity much more reasonable. do, we will still need to ask for rate !'
i As this Annual Report reveals, increases to match the increases in + our plan to buy our own generation the cost of generating, transmitting i to serve growth is continuing. In- and distributing power. None of us, vestment in nuclear generating of course, like rate increases. I'm plants now stands at $7.4 million, already paying more than 5500 a and our distribution plant at $12.9 month for electricity on my farm. million. But all my other costs are up, too, The Vermor.: Electric Generation and electricity is only about a tenth and Transmission Cs op was finally of my energy needs. If we expect established on firm footing during services we must pay for them. We will continue to strive to pro-Vermont Electric Cooperative Annual Report vide our members with service of baseload plants. We must attempt to the highest quality for the most get the approval cf rate increases in ' reasonable price possible. To do so, the most timely way possible to e n b er ont E e tri Cbo ra e Inc., School St., Johnson, Vermont 05656. We must bui!d equity as quickly as avoid high-cost short-term borrow-l l Editor is Nathaniel P. Worman, Worman possible to keep down the cost of ing. And we must cut costs Assodates, Frankan, Vermont 05457. Iong-term borrowing. We must con- wherever service will not be im-Address inquirica about this Annual Report tinue to use our financing advan- paired. A strong, enduring co-op to Anistant Treasurer and Controller Jerry tages to buy joint ownership in will be the result. Bucholi, Vermont Electric Cooperative, Inc., School St., Johnsca, Vermont 05556. Vermont Have Lost Population While Adfacent DATA PROCI5sLNG TRUsTTES l ROBERT A. MARK W. PII LsBURY CARON CENTABAR BLAls SNIDER CARLsON PERRY
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Stimulate economic activity and growth. The number of Co-op F .,4 nf member households is shown by small numbers in each town. In
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members than any other county. Chart showc itew connections _ ;y during past ten years.
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/T '71 '72 '73 '74 '75 '76 '77 '78 1979 1980 Areas Have Gained. Underhill, For Example, WARNIR BURER ALLEN EARLE WASluR KLNNEY
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Sin-ner F. Farr,1983 Alvin LVarner,1984 I Riclunond Lowell i *
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First Elected 1971 First Elected 1980
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HINESBURG BROWNINGTON, COVENTRY, Av JAY, IRASBURG, LOWELL, i'# M HUNTINGTON NEWPORT, TROY, ' ^D-** :* 5* RICHMOND STARKSBORO WESTFIEI.D . Vil 11 V Marsliall TVaslier,1984 Arnold C. Centabar,1982 Benoit U. Blais.1983 lolmson Berkshire Derby Line First Elected 1964 First Elected 1977 First Elected 1071 BELVIDERE, ]OHNSON, BERKSHIRE, FRANKLIN, DERBY MORRISTOWN, STOWE, SHELDON WATERVILLE Vi vill 6 111 1. Douglas Webb,1983 Ernest Earle, Jr.,1984 Clifford Snider,1981
- Fairfax Eden Richford First Elected 1952 First Elected 1980 c First Elected 1977 BAKE".SFIELD, FAIRFAX, ALBANY, CRAFTSBURY, ENOSBURG, MONTGOMERY, FAIRFIELD, FLETCHER, EDEN, GLOVER, HYDE PARK RICFFORD, WESTFIELD GEORGIA, ST. ALBANS, fy (MONTGOMERY ROAD) SWANTON L,aerard Caron,1981, Westford ,
. . - ' First Elected 1957
* \ Defeated 1977
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) Appointed 1978 zf ! -M BOLTON, ESSEX, JERICHO,
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J,ff > MILTON, WESTFORD
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s( 1 ~ Increased 80 Percent In Population. With c . , t
~g WIBB JONES HOWE FARR
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X Xill _, LVilliarn Kinney,1982 Clyde LV. Jones.1984 q
'ffersonville East Dover rst Elected 1970 First Elected 1963 n' Defeated 1974 As Trustee For Forrner ,
Appointed 1970 CAN1 BRIDGE, UNDERHILL Halifax Electric Co-op DOVER, NEWFANE XI XIV Henry Pillsbary,1981
- Ricluani Allen,1983 LVilliston LVilonington First Elected 1977 First Elected 1979 SHELBURNE, ST. GEORGE, N1ARLBORO, READS 3ORO, WILLISTON WHITINGHAN1, Six" of ti'ne: Old Alan of the W ILN11N G T O N "'I hi" d X "'
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Laura L. D. Hotve,1982 XV larnaica J. George Butler,1981
- First Elected 1970 Halifax ANDOVER, JANIAICA, First Elected 1977 9 ~
TOWNSHEND, WARDSBORO, GUILFORD, HALIFAX, WINDHAN1 VERNON (in Vt.), COLRAIN, LEYDEN, BERNARDSTON (in guy,;;y y,,,as in arid adjacerrt to ornctus N1 ass.)
- 1. Douglas Webb territory served by the Co-op: Ver-President civ ae W. lonn bt Vice Prnident enont /ankce, [ar Ic[t, unakes elec-
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- Term expires 1981. The July Co-op Life will tricity for ercrybody. Faniolare in
;f,!" , ,Y"' g ,, ; I, g s';'a'fn " carry narnes f nominees. Date following name of trustee is date term empires.
Bratt/choro aruf Orleans Alanufac-Isecutive Ntanager turing (not on Co-op lines) as tocil Atarshall Washer Treasurer ferry fluchola Asst. Treasurer as $rnugg/cr's Notch ski area, a Co-op mcrnbcr, all contribute to Nora l . Vin er Asst. Cl "0 " 0 '"'# #"
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MANAGER S REPOR T e William 1. Gallagher Nineteen eighty was a tough year for our economy and for our , m Q needs exactly, in New England, Begun by this Co-op, it now has si pocketbooks. {[ " members and will soon own and
*' manage all of our shares in Continuing inflation meant that, ; .
along with other cost increases, in- r i generating plants. We benefit from terest rates went higher and oil and its low-cost REA financing and rules gasoline costs climbed at an alarm- for debt coverage. We also benefit ing rate. Our ski industry suffered because the long-term debt which because of poor weather. The hous- pays for our joint ownership of ing market all but dried up. generating plant will become the In spite of these conditions, the j obligation of the G & T and thereby Co-op continued to grow, and we, reduce the amount of money the trustees and management, con- members must pay in rates for tinued to take actions aimed at building TEAM (equity / ownership). William J. Gallagher keeping the Co-op healthy and Nuclear. During the year our in-viable. high quality of our electric system. vestment in Seabrook, Millstone and The challenges facing us are for- We can accept - and will pur- Pilgrim increased by $3,055,364 to raidable but not insurmountable. sue - suitable industry to improve $7,895,790. The money came from Fortunately, we have a staff of our load factor and lif t some of the the REA 5 percent loan approved in dedicated, competent people who burden of rate increases from our 1976, and from the Cooperative understand how hard they must residential system while benefiting Finance Corp. Interest and principal 'O work to ensure you and your grand- the industry itself with dependable payments on these investments ap-children an adequate supply of and reasonablppriced power. pear in electric rates only when the dependable electricity. We can do that because we have plants start making electricity. a firm grip on power supply. We Four nuclear units, from which Distribution System s itened the impact of exploding we planned on receiving power, During 1980, the average member p wer c sts by negotiating ex- were cancelled in 1980. We are now had steady and reliable voltage and changes with southern New England pursuing alternatives. Although we electricity available 99.93 percent of utilities during the summer months. had spent about $100,000 in the time. This is the goal toward We s ved $916,886, most of which preliminary studies of these units, which we bend all our efforts: when w uld hase appeared in your elec- we had not made any major com , replacing old with new lines, when tric bills if we had not stood firmly mitments and there will be no ade clearing or spraying rights-of-way, in the power marketplace, buying, tional loss of money. when installing fuses to " trap" a fault within fewer miles of line, selling and trading almost every Hydro-power. We made gocJ week of the year. progress toward a hydroelectri_ sta-when publishing Co-op Life to help Power supply doesn't end there- tion at the North Hartland Flood people meet an emergency, when
^ Str ng power base, like a good improving our maps and location Control Dam. We received a loan of distribution system, is built from 5500,000 from REA at 5 percent in-numbers, when buying a digger many ingredients. Here is the list. terest and used the proceeds to truck and training our crews and maintaining inventory so that a The Generation and Transmission prepare final feasibility studies and crucial transformer is on hand when Co-op. Modern power buying and an application for a federal license emergency dictates, and when main. planning demands the presence of to construct and operate the prcject.
taining high standards with ex. an organization, made up of many We predict the final Federal license perienced crews when we build new buyers, who can buy, sell, exchange approval w. i be made by Fall of and fit blocks of power into the 1981. Meanwhile, we are awaiting lines. Power & People most frugal pattern. There had REA approval of our loan applica-The theme of this Annual Report, never been a generation and tion for $13.5 million to build the
~ Power & People," emphasizes the transmission co-op, matching our project and, if all goes well, con-for Growth With Able Employees, Reliable em e n pa
struction will begin the Sp.ing of Marbers had made tremendous o 1984. gains helping us hold peaks steady in December, we received ap-
]/ f f for several years. But ir. December u/
Uproval of a Department of Energy the a e fell. The price of heating oil j 1 y loan for $44,000 to study the shot up and the thermometer f'/ g
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feasibil.ity w a hydro site at Union pNnged to forty below zero. i Village Flood Control Dam. Families who had been using oil to , Also, in 1980, we applied for heat whole houses, retreated to one . preliminary permits on Dewey's Mills and Emery's Mills, on the Ot-soom and portable electric heaters. 1 Christmas day we hit an ali-time j [ , tauqchee River above North peak demand of 29,478 KW. Not i Hartland. Several private developers have filed competing applications only did peak increase, but members used 18.6 percent more kilowatt # [ and we are awaiting a FERC deci- hours than in the previous f \ . sion. December. When conservation is C 5
$*4 Wind Energy. In February 1980, not practiced at peak ti.nes, it only we recieved a DOE grant to study resub in higher costs in future. A Co-op, working with Stratton wind currents and weather condi- 3,000-KW increase in peak demand, Mountain Corp. and the Depart-for example, adds $180,000 in de- 'nent / Energy, erected a wmd-tions on Stratton Mountain to find mand charges year round. 8 ng out if a wind turbine would be feasi- *["""" .
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- d ble. Within a short time after c>n- New Rare Design. In M y we showed the conditions a wind tur- 11 struction, all the equipment froze up filed a forward-looking rate design, bine would meet.
with ice and broke off or was blown consistent with the objectives of the away. We have learned three things: Public Utility Regulatory Policies In November, after 25 years of
- 1) There is plenty of wind on Strat- Act of 1978 (PURPAh consecvation service with the Cooperative, ton Mountain: 2) DOE will have to of resources by the efficient and full Member Services Dept. Manager l design a windmill that will with- use of our system, and equitable Phil Locke retired. We miss him and
,Otand Stratton's severe conditions, rates. We believe the design, if it wish him well. The new manager of Vnd 3) icing conditicns will be dif- had been approved by the PSB, the department is Bryant Watson, j
ficult to overcome, would have done just that by formerly vice president and general [ Vermont Coal Generation. The holding down peaks and filling manager of Delta Electric Co. Data l Public Service Board did not launch valleys with the least expenditme in pro essing coordinator Page Guer-the study of in-state coal generation sophisticated hardware. We predict tin, who made significant contribu-l I as urged last year. I firmly believe the PSB will act in 1981, and the tions to our progress, resigned in ! that we must study the economic design will be implemented for tFe December, Bob Carlson, Formerly and environmental feasibility of next winter gak seascn. with Verr. ont hfarble Corp., has coal-fired generation. I will urge the Rate Increase Request. Treasure;. been hired to fill the vacancy. tiew Deputment of Public Service Marshall Washer with the help of The Future to include al in ite ang-range elec- charts explain; the objectives The price of electricity, like all tric energy study- of our request fo. a rate increase other commodities, will continue to Conservation and load Manage- of 12.6 percent, its relation to rise in the future. Because we have ment. As imporunt as gttting eauity, higher power costs and our acted positively in our planning, we power is the propa use of it. Our 1980 deficit. be:ieve we will hold those rises in , Wise Watt Owl O campaign, time Staffing line. Please continue to use electric-centrols on water heaters, storage There were 57 rull-time employees ity wisely, conserving on peak. This heat units and new rate design are at the end of 1980, compared to 50 cooperation of Co-op and members all aimed at shtving peaks and fill- at the end of 1979. Several impor- will mean 'he maximum benefit ing valim tant staff changes taok place. from your electric system. Electricity Flowing 99% of The Time and Power-1 EH # M id W t
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LINE SUPERINTENDENTS REPCRT e Robert E. Lamb i l In 1980, the Line Department con- We also connected 370 residential, The right of way spraying pn>- nected its largest commercial smcIl commercial and seascnal gram was conducted in Belvidere, member ever, Butterfield Division, members to our overhead and Cambridge, Fletcher, Hincsburg, Litton Industrial Products in Derby underground distribution system. Jericho, Johnson, Richmond, St. Line. This was an increase of 35 over George, Starksboro, Underhill, l Waterville, Williston, Westford, On the day that we connected member connections in 1979. Butterfield, we also connect-d Der- The right of way cutting and Shelburne Soeth Burlington and , by Line members into the VELCO spraying program was approved by Bakersfield. I lines and so into the New England the Trustees, and rights-of-way were The Line Department has started Power Pool grid. This gives us cut in Williston, Richmond, construction work on the new much more control when restoring Hinesburg, Jericho, Bolton, St. substat;cen in Westford which will service to our members and we George, Shelburne, Eden and serve the towns of Westford, Essex don't have to depend on another Lowell. We also did some cutting in and Milton. country. Hydro Quebec outages the Halifax District. Hand cuttmg of I want to thank members for their were sometimes very long. We have vegetation in ,;ghts-of-way adds cooperation during our right-c' .way now improved our system in the thousands of dollars to the cost of cutting and spraying progran.s and Derby Line area and have increased maintenance and that is why we use our Line Department personnel for the reliability of service. herbicides. doing a very good job in 1980. 12
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Planning and Action That Assures Co-op Members
CillEF ENGINEER S REPORT o John K Bulm in 1980, the Engineering Depart- s - pent completed its main objeuive .. - ,
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Westford Substation. Site prepara- ' tion at this su'ostation was com- Sbtch shows part of North pleted during the fall. Hartland Hydro site. The department conducted pole inventories in our Fairfax No.1. St. sion (FERC), f 3r a 401 Water Quali- valleys while missmg our peaks and Rocks No. o, Westford No.11 and ty Certificate with the Vermont demonstrates our ability to handle Fairfax No.12 substation areas. Agency of Environmental conserva- large loads well. Cur campaign to This resulted in $15.300 added tion and a 248 hearing before the persuade suitable industry to settle 13 revenue from poles carrying New Vermont Public Service Board. near our lines is continuing. England Telephone Co. lines which Subsequently, FERC accepted the Although not a part of our ac-had not been previousl / ncluded i in license application, we received the complishmcat in 1980, I should men-our rental program. 401 Water Quality Certificate and tion a problem that is taking more Our special projects made 1980 an the 248 hearing was held. and more of the Department's time exciting year. Our own trustee from We continued our studies of the and energy: Members who put up qialifax, George Butler, saw a dream hydro-power potential of the Union buildings or building additions too jome true when on April I his own Village Flood Control Dam, Dewey near or within our rights-of-way. small hydro generating engine went Mills Dam and the Emery Mills This year alone we have had to into action, providing 15 KW of Dam. We have a preliminary permit oversee relocation of several power. from FERC for Union Village dam, buildings that were built in the right Our Stratton Mountain Wind and have applied for preliminary of way. Relocation is a costly Tower Project was completed in permits at the other two. business: the rights-of-way should November. Last winter proved to be During December, the Depart- be thought of as " safety avenues," a "3 hake down" cruise. A com- ment and the Line Departmer.1 areas to be avoided with building plete set of data, with reports from planned for the swif t and efficient or construction. Anyone planning to four sersons, will be. ready next change-over of power sources in build anywhere near rights-or-way year. Severe icing and winds in ex- Derby Line, cutting our contractual should contact the Engineering cess of 100 miles aa bour were en- ties with Hydro Quebec and con- Department before beginning countered. The project would not necting our system, through construction. have been possible without the agreements with Citizens IJtilities, Finally, we said goodbye to outstanding assistance from all the with the VELCO grid. Associate Engineer Larry Fortin who capable people of the Stratton But more important than anything resigned to travel and see the United Mountain Corporation. else, we connected our largest com- States. He had become an efficient i Engineering studies on our North mercial customer, Butterfield Divi- and courteous member of our team. Hartland Hydro Project were com- sion, Litton Industrial Products of We have since hired Douglas Bryer pleted. As a result, the Co-op filed Derby Line. This makes our system of Morrisville. We believe that for an operating license with the more efficient by improving our Doug's talents will be of great value Federal Energy Regulatory Commis- load factor, helps fill our low-use to the Co-op and its members. or Growth Into the 21st Century. c)Eufficient Power 8
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Power Options: o-op power planning balances passibilities in searching for 'uture sources. Niagan. and St. Lawrence may play diminishing roles which means Yankee, upper left. and Seabrook owa left. will shoulder increasing burdens. Almost 30 percent af l the Co-op s present supply comes from Niagara. above and St. Lawrence. upper right. i
h1EA1BER SERVICES DEPT. h1ANAGER S REPORT o Bryant M. Watson The Member Services Department of baseboard (resistance) beat need- electric water heater. Monthly l stocks, sells, mstalls and services ed. Twenty-three members installed payments on water heaters are l major liotpo.nt appliances, A. O. electric heat in 1980, and 173 rented 53.25. Smith electric water heaters, and electric water heaters. 'Ibe Co-op has three storage-type farm and home electrical equipment. As oil increases in price, more water heater contracts with 27 KW We also handle high-energy use peop!c will turn to electric heat. connnted load of peak. There are complaints, low-voltage complaint 3, They will also use it in conjunction six with 4.5 KW each. heat loss calculations, special meter with passive or active solar heat Off-Peak Controls tests, inquiries about members' elec- systems as well as other designs, One of our major contributions to trical problems and we assist other using photo-voltaic cells, for exam- the financial health of the Co-op is departments with advice, matnial ple, whicn make electricity directly the installation of off-peak water and manpower. from the sun's rays. ha'er controls. There are approx-The Depar tment maintains all the Several new heaters are on the imately 2,400 controls installed. standby generators of the Co-op, market this year, designed to be They turn off power between 4 p.m. thecks fia extinguishers, assists line used in retrofitting existing systems and 8 p.m. Based on the premise crews in repairing storm damage, to all-electric. One such system to that the coincidence factor and provides on-call helpers for linemen be installed on our system by a natural diversity will place a one on trouble calls outside regular member used an electric hydronic KW load per water heater on the working hours and assists in the boiler to replace an oil-fired boiler. Co-op system at any one time, the upkeep and maintenance of Storage llcat off peak control program shaves buildings. We have 41 storage heat installa- 2,400 KW from the peak, avoiding D We also do all non-energy billinM tions on our system with a total 5144,000 in demand charges every and collections, assist with special connected load of 1,027 KW of off- year. projects, such as ar.nual meetings, peak demand. rece ving power be- . special mailings and member rela- SF #d' A"" tween 12 midnight and 6 a.m. At tions. We help open mail and assist Once again, the results of the prescat the average storage heat in-other departments whenever or nalys;s of t Member Services stallation is 25 KW each. wherever needed. Department labor cost for 1979 We have a detailed brochure ex-The department is responsible for show that only 35.4 percent of the plaining the pros anJ cons of the the installation of secondary t tal payr 11 f the Department is storage heat systems and this can be underground services, member devoted to the sale and servicing of sent on request. We will include a disconnect switches and we assist appli nces nd the water heater pro-questionnaire which. when filled out the Line Department in installing grams. Alm st tw thirds is devoted by the member after reading the primary underground feeders, fro.a brochure, will tell us whether t the main business of the Co-pole to house. storage heat will be a benefit. P - *" PP IY *8 'I"", Y' We also offer members all types Presently the Co-op has enough Conclusion of wiring supplies at below retail capacity to supply another 95 It is my ptrsonal belief that as we cost, including underground wiring members with storage heat, enter this new decade, the Member materials for any member who Water fleser Plan Services Dept. will continue to play wants to install his own service- There were 621 accounts on our a dramatic role in the day-to-day llotpoint Sales lease-purchase plan as af December operation of the Co-op and that as We are able to sell liotpoint ap- 31, 1980. One hundred and ten new time passes our role will become pliances at reasonable prices because accounts began and 47 were paid even more useful. Electric usage will l ! we buy them in half or full trailer off, continue to grow and it will be our loads. We provide emergency same- Until last year, the normal request respensibility to see that electricity i day service and maintain a stock of for removal of a heater was because is used wisely and efficiently. over 2,000 spare parts. a member had installed a hot water F9ctric licat furnace system. This year, some As in the past, wi make heat-loss members who have hot water l calculations on new and old houses heating systems are either remo<mg l for members or their contractors to the entire system or the domestic I determine the number of kilowatts hot water coil and are installing an G l -
TREASURER'S REPORT o h1arshall Washer & Asst. Treasurer Jerry Buchol: In my view, one major respon- Every dollar of equity replaces a position possible by the year 2000. sibility of the Treasurer of an elec dollar of debt on which we must The short-range view is that we ric co-op is to insist that we build pay higher and higher interest. should sit tight, borrow morc and equity / ownership as quickly as Althcugh we are financially build less equity. reasonably possible. In this Report strong - and goting stronger - We Trustees do not agree. In 1973 we include a diagram on Page 21 TEAh! decreased slightly in 1980, we took the long-range view. The that shows the connection between pulled down by our deficit of best interests of the Co-op and its the financial statement and the $278,163. Nor did rates in effect members, we decided, would be growth of equity. We have given during the year make the margin cf served by building equity at the rate equity its full name as shown in $213,505 our mortgage requires - a of two percent per year. In rate in-the llalance Sheet, Total Equities 1.5 TIER which means margins crease requests to meet more than and h1argin (TEAN1). equal to half the interest expense increases in tha cost of power, we The amount of TEAh! in relation on Long-Term Debt (LTD). have taken the positon that a to Assets is the most significant Revenue from rates paid for elec- substantial part of any increase , measure of our financial standing in tricity were thus short $491,663 of should increase equity. l the eyes of those from whom we paying expenses and making a We filed for a 12.6 percent overall must borrcw today and fron. whom minimum TIER.* rate increase hiay 28, 1980. A little we may have to borrow tomorrow. In the years ahead, however, this over a third was for increases in the There is no telling how long low- minimum equity-building will not be cost of power, about 15 percent to interest Rural Electrification financ- enough. The chart on Page 21 meet increases in controllable costs, ing will be with us. We must be shows what is required: for every about two percent for fixed costs, ready, dollar paid out in long-term debt in- and almost 50 percent to build equi- U We must also increase TEAh! in terest expense, a dollar must be ty. Approval would have resulted in order to decrease borrowing because taken in to add to TEAh! (equity / a slight margin for the year and a cash from TEAh! (equity) can be ownership). This is a 2.0 TIER start toward our equity-building I used to build and replace lines. which will make a strong equity goal. Equity building in an electric co-op is more than a financial matter. It is also one of justice - for the GROWTil IN PLANT Cooperative house should be built DISTRIBUTION . In fa.ir proportion by present and
$ RG ON 512x future members, the present cen-512 - 511.7 5.h tributing their fair share of equity, g1 and the future accepting their fair obligation of debt.
510 510 - 50.1 y $3 57.8 O l ~$ 3 _ _ _ _ _ _ . _ _ _ _ So -
*Becau>e elecmc companies must al.eays
'54 s borrow to build bankers set rules for leruimg. Over time. they hLe to sec the gap 9_ between a companis debt and equity nar-rowed The rate at which this narrowing takes place is determined by the rate at rhich
, equity grows and the need to borrowing l
$2 , * :.7 slacLens. It's a good rule of thumb. bankers l
$ , _3 conclude. that for every dollar paid out in long-term debt interest c.nvense another 5281 000 m D dollar be added to equitv tTEAA1b or margin for the year That is a 2.J TIER.
1975 197o 1977 1o78 1979 1080 1 i 1
l l tribut d it, is seen opposite Patron's at 51 million, and include stock in BALANCE SHEET Vermont Yankee Nuclear Corp. and Capital Credit under Liabilities and Summary. The Balance Sheet is a Other Credits, and thus becomes a Vermont Electric Power Company, picture et the Co-op's Assets (lef t part of TEAM (equity / ownership). Inc. (VELCO). It also includes in-side) and Liabilities (right side) The investment in general vestment in the Cooperative's
" snapped December 31,1980. Two plant - buildings and equip- banker, the National Rural Utilities shaded bands tell the story. Total ment - increased 592,316. Cooperative Finance Corp. (CFC).
Assets, bottom lef t, increased, while Other Property & Investments. The increase of $46,363 in this Total Equities and Margins (TEAM), Income received from the in- category is the purchase of Capital middle right, decreased $39,073, to vestments represented here reduces Term Certificates from CFC, a loan
$2,781,405, the result of the 1980 the amount members must pay in requirement. The extent of this deficit. TEAM, the same thing as rates. These investments now stand obligation is set forth in Auditor's equity or ownership, grows mainly fiom what is left over (Margins) of revenues paid by members for elec- BALANCE SilfET tricity after all expenses have been DECEMBER 31,1979 AND 1980 paid. And when there is an ASSETS (Note 1) increase operating deficit, TEAM decreases, 1979 1980 tDecrease)
The chart headed " TEAM and Assets shows that TEAM is 17 per. Utility Plant: (Note 2) Electric plant in service - at cost 516,015,791 - 516,834,177 5 818,386 cent of Assets. An explanation is in Completed construction not classified 482,388 651,080 168.692 order. Here we are concerned only Work in progress 4.837,735 7,705,032 2.867,297 with those distribution system assets 21,335.914 25,190.289 3.854.375 33 of Vermont Electric Cooperative. Less: Retirement work in progress (dr) ( 1,229) ( 4,829) ( 3,600) The $7,437,910* of the " Work in Accumulated provisions for Progress (top lef t) and the " Nuclear depreciation 4.411.553 4.873.864 462.311 Fuel in Process" of $474,714, pertain 4.410.324 4,869.035 458,711 Net utility plant 16.925,590 20,321,254 3.395.664 to the Cooperative's participation as Electric plant acquisition 73,701 63,172 ( 10,529) a joint owner in generation projects. Electric plant held for future use 2,800 2,800 - These assets and associated debt will 239,640 474,714 235,074 Nuclear fuelin process be transferred to the Vermont Elec- 224,545
-_J16,141 540 486 tric Generation and Transmission 1",241,731 20,861,940 3,620.200 Investment in Utility Plant Cooperative. The TEAM of
$2,781,405, then, is 17 percent of
$16,321,217, the Total Assets of other Pr perty and Investment - At Cost:
Vermont Electric Cooperative Non-utility property (Note 3) 42,952 42,952 distribution system as of December Patronage capital from associated 31,1980. (Plant is $12.9 million of organizations (Note 4) 10,330 22,480 12,150 Total Assets.) Investments in associated rganizati ns (Note 5) 354,194 400,557 4u.363 T%n. nei .moum .eier sauen, amnburmn v.n, worbn-progrus ar,J E4 ale Mountain Kedly see Page 2t Other investments 563,521 560,667 ( 2. SS4) Restricted funds 20,105 22,421 2,316 BALANCE SHEET: LEFT SIDE: 991.102 1,049.077 57,975 TOTAL ASSETS Subtracting " Work in Progress" Current Assets: and ,, Nuclear Fuel in Process," the Cash - general funds 15,131 40,400 25,269 total assets of Vermont Electric Cash - construction funds - 18,845 18,845 Cooperative distribution syWem Temporary cash investments 54.356 57,316 2,960 SPecial deposits 475 475 - grew from $14,940,897 in 1979 to Notes receivable - net (Note 6) 231,974 276,321 44,347
$16,321,117 in 1980. 454,984 16,182 Accounts receivable - net (Note 71 438.802 Utility Plant is the greatest asset, Account receivable - associated totaling $12,401,305 in 1979 and company - 32,941 32,941
$12,949,316 in 1980, an increase of Materials and supplies 398,839 486,234 87,395
$548,011. Of that, 5276,321 was for prepayments 52,905 52,123 ( 782)
Total Current Assets 1,192,482 1,419,639 227,157 connecting new members who paid 5220,997 of that amount. The Deferred Charges and Debits 356.008 903,185 547,177
$220,997 is not seen in the State-m nt of Operating Revenues and Ex- TOTAL ASSETS 519,781.323 524,233,841 4,452.518 penses. Instead, the amount goes str.ight to Patronage Capital, is assigned to each member who con- (The accompanying notes are an integral part of this statement)
l I Note No. 5, and is seen in the those revenues themselves increased Tot:1 Equities and Mtrgins. In graph on Page 26. The in- 9.4 percent during the same period. 1980, TEAM decreased only come - about $100,000 yearly - This is due to the Co-op's strict col- $39,073, a little under one-and-a-helps reduce rates paid for electricity, lect on policy. This prompt payment half percent. It would have de-( j Current Assets. These assets, by members gives us the cash flew creased much more without the which increased $227,157 in 1980, needed to pay our bills and cut money paid by members for new include cash and also other assets down short-term borrowing. line extensions ($220,997) and which which will be turned into cash Deferred Charges & Debits in. goes straight to Patrons Capital within the following year. crease of $547,177 is due mainly to Credits. The increase of $44,347 in Notes generation, load control and rate Receivable represents increases in case expenses. L ng-Term Debt. Referred to in the amounts financed by the the technical journals as LTD, Long-BALANCE SHEET: RIGHT SIDE: Term Debt is a source of capital Cooperative for members building LIABillTIES AND OTHER used to replace older parts of the line extensions to serve their houses. CREDITS system and add new as the system The notes are for 96 months and are gr ws. Growth must also be paid secured by mortgages upon the This is a record of what the property receiving service. Cooperative corporation owes. The ut f an electric C* P s other ma-The item " Accounts Receivable - two most important categories, for a i rS urce f capi tal - equity NEAM). The utility with the best Associated Company," shows the member-owned co-op, are Total . mix (usually 60 percent debt and 40 amounts owed the Cooperative by Equities and Margins (TEAM), and Percent equity) borrows money on the Vermont Electric Generation and Long-Term Debt. When TEAM is the best terms. The Rural Electrifica-Transmission Cooperative, Inc. increased and Long-Term reduced, The increase in materials and sup- the Co-op doesn't need to borrow as ti n Admirustration and the Na-79 much and what it does borrow, it ti n 1 Rural Utilities Cooperative plies is an increase in costs of items Finance Corp. (CFC) are the Co-op's and not the quantity. Inventory can get on better terms. (TEAM is items are constantly balanced with held by the Co-op corporation, in-maj r s urces f I.m Boe want the Co-op to build equity faster. requirements to keep investment as vested in the plant and, after a Although LTD increased $2.8 Iow as practicable. period of time, is repaid the members who contributed it. Thus, milli n in 1980 (about $2.5 million The accounts receivable increased f r Progress payments for generating i half of a percent over 1979 to 8.2 it is shown as a liability owed V ercent of operating revenues while Pl ants under construction), we still p members). have $12.6 milhon of unadvanced long-term funds committed by REA BALANCE SHEET and CFC. This is the result of our DECEMBER 31,1979 AND 1980 strict cash management. "Unad-LIABILITIES AND OTiiER CREDITS vanced long-term funds" are monies the REA bank has agreed to loan as 1979 1980 )
"d'd*
Equties and Margins: Membership, 5 45,775 5 47,825 5 2,050 . . Patronage <.apital (Note 8) 2,599,823 ~ 2,748,877 - 149,054 Current liabilities. These items Other equities 137,023 ' ( 56,900)' ( 193,923) generally include all debts which Donated capital 37,857 ~ 41,603 3,746 will become payable during the Total Equitles and Margins'(TEAM) f 2.820,478 2,781,405 '( ' 39,073) year. Total Current Liabilities in-l Long-Term Debt'(Note 9) i15,'635,172 18,445,8'13 ' 2,811,641 #[ , fd o was in Notes Payable, a $1,445,804 Current L! abilities: , Notes payable 960,000 - 2,405,804' 1,445,804 increase in short-term borrowing Accounts payable 225,161 370,039' 144,878 over 1979 to acquire an additional Consumers' deposits 62,413 72,671 10,258 0.13215 percent joint ownership in Taxes accrued and payable 30,796 ' 37,247 < 6,451 Seabrook Units 1 and 2. This will be Other current and accrued liabilities - 79,427 79,427 converted to long-term debt in 1981. Total Current Liabilities 1,278,370 2,%5,188 1,686,818
& M unde cash management policies reduced Def:rred Credits 28,050 ' 20,133 ; ( 7,917) general short-tam borrowing as of December 31,1980 to $667,000, Operating Reserves 19,253 20,302 1,049 even though we bo'rrowed short-V term from the Cooperative Finance TOTAL LIABILITIES AND .
Corp. during the year to meet ex-OTIIER CREDITS 519,781,323 .524,233,8J S 4,452,518 penses when the Public Service Board did not act on our request for (The accompanying noces are an integral part of this .,tatement) a 12.6 percent increase in rates.
BALANCE SHEET DETAll is the lion's share of TEAh! - Total due mainly to contributions to St .tement of Patronage Capital Equities and h1argins - which is the Patronage Capital by members I and Other Equities. For a member. same thing as equity and member building line extensions under owned electric co-op, this is the ownership. GO52. heart of the financial report, and Other Equities. This shows the Patronage Capital and Other shows in detail what makes up effect of margins on TEAh!. The Credits. The right hand column TEAhi, shown on the preceeding Operating deficit of $278,163 was shows the balance at the end of the page. reduced by the non-operating year in Patrons Capital, Patrons Patronage Capital Because of margin of $84,240 and this resulted Capital Credits and Other Equities. the cooperative nature of our rural in a $193,923 ($278,163 - $84,240) All of these are summed up in electric systems and the bylaws decline in Other Equities. The net TEAh!, on the right side of the under which they are generally decline in TEAh! was only $39,073, Balance Sheet. operated, each dollar of payment by a patron in excess of the cost of pro- STATEMENT OF PATRONAGE CAPITAL viding electric ervice is an invest- AND OTilER EQUITIES ment in the cooperative by the FOR Tile YEARS ENDED DECEMBER 31 patron, which the patron is entitled increase 1979 1980 (Decrease) to recover at some time,says the report of The Capital Credits Study P'tr nage Capital: As gna e $1,522,250 51,450,307 ($ 71 m 3) Committee. An amendment before Assigned 12,212 12,212 voters this year will allow Trustees Patrons' capital credit - more freedom in returning G.O. 52 (Assigned) 1,065,361_ 1,286,358 220.907 20 Patronage Capital (in the form of 52,599,823 52.748,877 5 140,054) Capital Credits) to members. This exhibit shows the growth of Other Equi . Patronage Capital, from $2.5 Operating margin (5 207,501) (5 485,664) (S 278,163) Non-operating margin 334,726 418,966 84,240 million in 1979 to $2.7 million in 1980, an increase of $149,054. This "I"'I"'I" ' S 137 (5 56,9 ) (5 193,923) STATEMENT OF PATRONAGE CAPITAL ASSETS 11ABILITES AND OTilER CREDITS 25 - m DECEMBER 31,1980 PATRONAGE CAPITAL 20 - Assignable Assigned iblance j Balance - January 1,1980 $1,510,708 5 12,212 $1,522 920 y Operating margin Non-operating margin transfer 71,943) 71,943) 15 - q ( ( l g @ % Transfer from Halifax 11,542 7% $ Cooperative, Inc. 11,542 10 - hN
,, g 3
g Balance - December 31,1980 51,450,307 5 12.212 51,462.519 b, "r L o Patrons Capital Credits G.O. 52:
% 4 Balance - January 1,1080 51,065,361 51,065.361 5
h Additions 1980 - net Balance - December 31,1980 220,997 51,286,358 220,997 51,286,358 M$ 3_ - u Graph shows, in summary form, the rarious categories that make OTilER EQUITIES up the Assets ami Liabilities of the N""* UP UP Co-op. On the lett, the maior '!"* portion of Assets (from the bottom U'I'"" ~ up) is Utility Plant followed by January 1,1980 Other Property smd Investments, (deticit) (5207,501) $334,726 $9,798 5137,023 C nrrent Assets arul then Deferred Operating margin l Charges ami Debits. On the right. Non-operating margin ! t he major portion of liabilities is 1980 - net ( 278,163) 84.240 ( 103,923) Long-:erm Debt (LTD) followed 1 by Current Liabilities and then oral Equities and B^l ~
,31,1980 ts485,664) 5418.9o6 50,7o8 (5 56,900) e s
Tile PARTS OF A FINANCIAL STATEMENT AND if0W TilEY ARE l-^Rt?UILDING (j LATEDEQUITY. TO s7A$tsf* REVENCE f RoNt SA!E OPI RA ring MA I WN OF Art 1lAN( Fs RIT E Tl ( HANCF 5 IN ALs0 INIFR15r IldOM RAllS HN AN(IAL
& DIVIntsps - IUslTION l$uvil)t s A (ORK.IN AND MARGIN I(4) USE OF Fl%!N
,/ RATES. s
- TIER is a common financial measure used ARL 1 to determine earnings capacity or capabil-
/g '
*Q3,"g, @N u ' '
BALA ct sH1'ET ity. A TIER ratio is obtained by adding a
+ $1 f0R 51 MARGIN 7 borrower's margin to mterest expense and rotlAR Assg75 iM p, then dividing by the interest expense. A 1.5
$40 ' " ' ' ^"
ACTUAL lMII AR TEAM
- COAL BY 2000 i' 'h' 'I'f ty Cent Rule.~ for every dollar FOLLOWING THE " DOLLAR Pd ""' '" ' "";"'
- I"' ' I' 'Y
'"' A 2. 0
" *" '" I" rnamns.
4 kgh O* .FOR-DOLLAR" RULE. " TIER "'" I' Dollar Rule,.'. for every dollar is the
$30 - ,Ag.$ (A 2.0 TIER) su MunoN paid out. a dollar must be taken in for 7 aot A'^'" "'Y"
$20 -
$16 MILLION 510 - J GOAL 2 o TIf R E Alif iFAR AND FQt1.iy u% OF
$;l ' I01 At AsstTs _
I A%IIS IN THI li AF 21W iQtIT)its OF 'I MILLION AsM is $2 7 uu 10N U.ROWTH OF ' lay. As A rtRctNT Oo m e wHo*TP""' M'ig"'. gg jom FARl3'III) L ^ - - -- --- - - - - - - - - - l 1 lR EACH i AR AND FUt'ITY AT 20% IN THF h
' TOTAL IQt1TIIs AND MARGlW OWNER 4 HIP 1076 1980 1090 2000 21 The Co-op must build equity in order to borrow less on more favorable terms. The chart shows the number of years it will take to reach a level ac-ceptable to lenders. The dotted line shows a 1.5 TIER, 40 s _
(7he solid line a 2.0 TIER. The 1.5 TIER rate is not ac- l q (,Eeptab e. The chart alto shows how the financial j report is related to equity growth, where 30 3 _ : equity / ownership is recorded in the Balance Sheet 0 (under Liabilities. Total Equities and- U Margins - TEAM), and where equity comes from: 20% - 5 operating and non-operating reports, and the report $ on changes in financial position (origin and use of j funds). The 2.0 TIER plan shown includes enough to ig s _ E 5 return a portion of TEAM to members each year. % g TEAM is assigned each member and returned to him 6 as a capital credit in proportion to the amount of patronage capital contributed during the year. A member contributes patronage capital when rates are Overall equity level m. rural electric c '-ops tlirongliout ta, e high enough to make a margin. United States is 38 percent while that of Vermont Electric Cooperative is 17 percent. Box Score: How Much Extra Is Needed to Build Equity at Acceptable Rate? 1980 Margin Needed Extra Revenue Deficit Needed 50c Rule 1.5 TIER (5278,163) 5213.505 5401,668 m $1 Rule 2.0 TIER (5278,163) 5427,010 5705,173 ' )
) (These figures are based upon Long-Term Debt Interest Charges of $427,010)
Oper ting Riv1nues & Expenses. expense for the year - for every percent, from $5 million in 1979 m This statement shows revent.es from dollar paid in interest, rates must $5.5 million in 1980. An overall rate rates. It also shows whether those take in 50 cents for margin. The Co- increase cf 6.95 percent, which rates are sufficient to pay Long- op's bankers, however, insist the became effective January 1,1980, Term Debt (LTD) interest expenses Co-op seek yearly margins equal to and increased KWH sales - mainl for the year and a margin either the interest expense - for every to new members - accounted for equal to it (a 2.0 TIER) or half of it dollar paid in interest, rates must the revenue increase. (a 1.5 TIER). take in a dollar for margins. (See Operating Expenses. The chart, Operating Revenues & Expenses. chart on Page 21). right, shows four categories of ex-This statement shows revenues from The box score shows the two pense: 1. Cost of Power. !!. Con-rates members pay for electricity. goals, side by side, and how far sumer Service-Related Operational Beneath the revenue, expenses are short of each we fell in 1980. Costs.111. Utility Plant-Related shown. Thus this statement shows Operating Revem4cs. Members Fixed Costs. IV. Patronage Capital whether rates are sufficient to pay used 93,656,118 KWH during 1980 and Margins. Long-Term Debt interest and a up 3.4 percent from the 90,688,477 raargin. The REA mortgage requires KWH in 1979. Meanwhile, 1. COST F POWER a margin equal to half the interest operating revenues increased 9.4 Although members used only 3.4 percent more kilowatt hours in STATENENT OF OPERATING REVENUES AND EXPENSES 1980, the cost of power - which is IOR Tile YEARS ENDED DECEMBER 31 just under 60 percent of your increase monthly bill - went up 22 percent, 1979 1980 (Decrease) or $503,833 from $2.3 million in 22 Operating Revenues: 55,036,517 55,50s.867 5 472,350 1979 to 52.8 million in 1980. There are three main reasons for this climb in price. Fossil fuels cost more. I Operating Expenscs: COST OF POWER Transmission expense - by others Subtotal 2,264,648 452,292 52,716,940 2,768,481 489,248 53,257,729 503,833 36,956 5 540,789 Peaking power, for which we must Pay the whole year, shot up in Price. But the major reason, as far as the Co-op is concerned, is the fact that the cost per kilowatt hour - not increased pur-II CONSUMER TransmissionSERVICE-RELATED expense - operation Dktribution expense - operation Transmission expense - maintenance 5 CPERATIONAL 228,030 31 1,417 5 243,082 COSTS 2,228 (5 - 31) 15,052 811 chases - accounted for 18 percent of the increase. Finally, the cost of transmission climbed 8.2 percent. Distribution expense - maintenance 347,363 323,452 ( 23,911) General plant maintenance 16,206 15,339 (. 867) II. CONSUMER Customer accounts expense 251,432 303,007 51,575 SERVICE-RELATED Sales expense 13,371 19,386 6,015 Administrative and general expense 508,168 555,137 46,969 OPERATION 4L COSTS Subtoral 51,366,018 51,461,631 5 95.613 We call costs in this area " con-trollable," but that is only relatively Speaking. Wages and goods rise in 5 10,529 5 10,529 5 Price. So do power, taxes and bor-III UTILITY Depreciation PLANT-RELATED FIXED 31,172 Amortization 481,370 186,994 512,542 207,574 COSTS 20,580 rowing. Thus, there is no area that, Tax expense because prices rise, we simply shove Interest on long-term debt - net 469,375 649,982 180,607 aside. With rates at 17 Percent and o Allowance for borrowed funds used higher we curb short-term borrow-during construction ( 82,334) ( 222,972) ( 140,638) Oier interest charges 6,819 18,977 12,158 ing. Power is bought, sold and Subtotal .51,072,753 51,176,632 5 103,879 swapped week to week, sometimes hour to hour. We use our Long-1 Miscellaneous income deductions 13,772 16,814 3,092 Term Debt with its low interest to Total Operating Expenses $5,169,433 55,912,806 5 743,373 I PATRONAGE CAPITAL AND MARGINS Net Operating Margin (Deficit) Income Applicable to Prior Years 1980 Vt. Yankee and Velco (5 132,916) (5 403,939) ($ 271,023) 52,252 52,349 97 Dividends - 73,427, 73,427 Operating Margin (5 80,664) ($ 278.163) (5 197,499) (The accompanying notes are an integral part of this statement)
I the best possible advantage. Even Ill. UTillTY PLANT-RELATED They are the primary source of so, costs do rise in this category, FlXED COSTS patronage capital which is the same but slowly. From 1978 to the end of In order to keep proper ac- s member ownership (TEAM). 1980 while general inflation shoved counting of them, the interest When there is a deficit TEAM is ices up 30 percent. Co-op con- reduced, as shown on the Balance charges on Long-Term Debt for vollable costs went up 9 percent, Sheet. Other sources do contribute, work in progress (generating plants seven percent of that rise occurring and help off-set the loss of equity under construction) is included in in 1980. The 1980 inflation rate was the 5649,982 and then removed as due to the deficit. There is income 12 percent. from investments, and from the shown in the allowance for bor-Distribution e2 pense - operation. rowed funds used during construc- Member Services Dept. (mainly the l Incieases were caused by increases tion. The $222,972 is not paid in sale f ppliances). Also, the money in labor and material. rates. (Subtracting $222,972 from paid by members when the Co-op c nnects them to the system goes Customer acc unts expense. A $649,982 you get $427,010, the in-terest on which the Co-op's TIER is straight to Patrons Capital Credit one-time expense of $27,482 of the
$51,575 increase was due to the con. figured). (See Page 21). Expenses and and adds to TEAM - Total Equities increases shown in this category are nd Margins, as we stated before.
version to a new computer system. The balance of the increase is due to the result of the growth in invest-labor and expenses in Consumer Ac- ment in facilities. counts Dept. Administrative and general ex. IV. MARGINS & PATRONAGE pense. $42,379 of the 546,969 in- CAPITAL crease is the amortization of We have discussed manins in regulatory expenses in three dockets other parts of the Report. They are U before the Vermont Public Service the only source of equity capital. Board. Revenues Fell Short of Meeting (] 'v Expenses by 7.3c of Each Dollar of Revenue, And Of Earning a Margin Equal to a 1.5 TIER By 10.' c (7.3c + 3c) 1980 l 1979 11. 26.5c 0[yE E"Y UE DOLLAR. MARGIN DEFICIT . - - 51.000
\
\ .-
. MAINTENANCE 5.9c 2
= e v
;
,. - 80c .,
N/ w , ,. ;* w - W : T '~- # 26.5c
>-yC: ; "
! =
*
- 70e . '.'
$ : F ci CONSUMER ACCOUNTS 5.8e l:$ $. e' 9 h' . l 7
= - 60c m c 2
rdu: 4 % ( , N pjh .f \
. OPERATIONS 4.Sc
. i; it 3 -
- 53. k j. p- l, 59.lc IIl w .
'- , ,f N,- . MISCELLANEOUS & GENERAL 3.1c 30c 2 EMPLOYEE BENEFITS 2.4c 4 ADMIN!STATIVE SALARIES 1.8c 2 jf Oc '.
E 2; ', 'C ' INSURANCE 1.le LEGAL .9c
- loc (A) $ s h- ,_- l OFFICE SUPPLIES 0.6c kh h:,
F.; ~ w r +- A . m . g p.S.B. 0.5c
- Expenses are shown as a percent of revenues >
and revenues are represented as 100 percent or $1.
Statement of Non-Operating STATEMENT OF NON-OPERATING REVENUES AND EXPENSES Revenues and Expenses. This state. IOR THE YEARS LNDED DECEMBER 31 I""" ment shows the revenue brought in 1979 1980 (Decrease) by the sale of appliances - revenue hierchandising revenues 5336,022 5365.913 (5 29.89D which also contributes to TEAM, Merchandising costs 357,074 333,645 ( 23.42 and which helps defray the overall Net Merchandising 5 8,839 5 2,377 (5 6.46 labor costs of the department,60% of which are related to the depart- Allowance for f unds used during construction (A) 40,300 37.348 ( 2,961) ment's main job - supplying elec. MixeCaneous income and C.F.C. capital tricity to members. 6,032 12,150
. credits 6.118 The other source of non-operating Interest and dividend income - net 09,o00 105.792 o,183 revenues is from interest and divi-dend income. One of the Co-op's Net Margin for Period 5164,780 5157.667 5 2.878 Iess: Transf er to patronage capital ( 71.943) - 71,043 sources of financial strength, the m.- gg ,, 7 gg vestment portfolio of the Co-op is just under $1 million dollars, and BALANCE - BEGINNING OF YEAR 5251,880 5334,726 5 82.84o produces income of over $100,000. Transfer year Velco and Vt. Yankee dividends - ( 73,427) ( 73.427)
HALANCE - END OF YEAR 5334.726 5418. % 5 84.240 ( A) Represents the capitalized interest charge of f unds expanded on nuclear generation projects. 24 TOTAL MEMBER SERVICES DEPARTMENT PAYROLL
&6 Revenue and Empenws
~
pL 1**9 1980 l AITLIANCE Revenue $292,500 $2es.924 , Thanks! , Evenw 277 511 248 833 ELECTRIC HEAT / Revenue $ 1.2% RATE SALE AND SERVICE brn* 739 PAYER OF APPLIANCES ABSORPS ALMOST
$ 560 35 PERCEN1 OF PAYROlt BURDEN WATER HEATFRS Revenue $ 30.380 $ 37.187 i Evenw 28 132 3e 070
$ 2.257 $ 1.117 JOBBING Resenue $ 17.208 $ 8.532 E= pen
- 16 341 12201 5 957 ($ 3 e75) '
SERVKE OUT OF WARRANTY Revenue $ 24.418 $ 24 379 E2penw 34 351 N 515 ($ 9,933) ($ 12.13o) T(TTAL REVENUE $%5.913 $336.022 TOTAL EXPENSE 357.074 333.645
$ . 8.839 $ 2.377 9
Statement of Changes in Financial STATEMENT OF CilANGES IN FINANCIAL POSITION Position. This is better called FOli Tile YEARS ENDED DECEMBER 31 1*79 1980
" Origin and Application of Funds."
rund re P * 'd y s in previous years, most of the ng - ne 6 mm 6 ma nds - 75.9 percent - were used Noa-operating margin 154,789 81,240 3r plant additions and replacement, Depreuation anu amortization expense 491.899 523,071 and the major source of funds con- 566,024 329,148 tinued to be the CFC and REA. To continue to borrow on the best Reduction patronage capital assign.ble - ( 71,943) Depmiation allocated 48,091 42,874 possible terms we must build 2,050 Memberships 480 equity / ownership faster. The proper Advances from R.E.A. and C.F.C. 3,142,000 3,201,000 ba ance of Long-Term Debt and Retirement salvage 71,956 74,134 Equity / Ownership is good business Decrease in worki.ig capital (increase) 728,396 1,451,293 sense. But it is also just: the operating reserve 969 1,043 , Donated capital 4.816 3,746 Cooperative house should be built 205,272
. Other patronage capital - G.O. 52 220.997 m fa.ir proportion by present and S4,786.004 55.254.347 future members, the pre <ent con-tributing their fair share of equity, funds Were Used For:
and the future accepting their fair Extension and replacement of classified plant 51,378,749 5 950,329 obligation of debt. Payments on long-term debt 377,793 389,359 Cost of plant retirement 26.842 35,296 Increase in other property and investments 116,164 57,975 Increase in net deferred debits over deferred credits 126,475 546,724 Electric plant held for future use ( 800) - 25 Addition to plant unclassified and under construction 2,546.696 3,035,990 Addition to nuclear assets 197,582 235.074 Retirement work in progress - credit (debit) ( 1,497) 3,600 Condominiums at Village at Smug-gler's Notch, a Co-op member. g gf ~9s
,\ /' .
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NOTES TO FINANCIAL STATEMENTS DECEM13ER 31,1980
- 1. Assets Pledged:
All assets are subject to the first mortgage lien held by the United States Governmen'
- 2. Electric Plant and Depreciation Procedures:
The major classification of plant is as follows: 1979 1980 Intangible plant 5 1,548 5 1,548 Transmission plant 945,316 960,64C Distribution plant 13,575,133 14,285,879 General plant 1,493,794 1.586,110 Completed construction unclassified 482,388 651,080 Construction work in progress (A) 4,837.735 7,705,032 521.335,914 525,190,289 47 STORAGE liFAT (A) Construction work in progress consists of: m . \ f 9:g General and distribution plant 5 265,627 03 l l Generation: ll
~
l Millstone Nuclear Unit #3 of which 7 u. joco . yj i the Cooperative has a .2% interest 5 1,678,745 O .000 .
"a p;1 grim Nuclear Unit #2 of which 8 ;l ki"TER A
the Cooperative has a .2% M - p I! EATER interest 822,427 26 m $ CONTROL Stratton Mt. Wind Project 16,834
$ " ~
Seabrook Nuclear Units #1 and #2 5 , _ "TT in which the Cooperative 7.417,910 acquired a .41259% interest -4.919,904 ELECTRIC llEAT Eagle Mountain project 1,495 con . ,
\ LARGE COMt.RCIAL - '
1000 -
\ SMALL COMMERCIAL SEASONAL l The Cooperative is obligated for the proportionate share of the curying and progri 3 costs in the nuclear projects.
4 Provision has been made for strair.ht line composite depreciation of the transmiss.. .i distribution plant at the rates of 2.6% and 3.0% per annum. General plant depre iaticn rates have been applied on a straight line basis at the followir 51 MILLION rates: 5 1.000 000 -
\ Leasehold improvements 2 years OTiiER Buildings composite rate S w o00 N Office furniture and equipment composite rate 58 @.000 - Stores equipment 10 years COOPERATIVE Snep equipment composite rate 57 @.000 - FINANCE Laboratory equipment composite rate CORPORA TION based on usage Power operated equipment 5**' * - Communication equiprr M 8 years VERMONT Miscellaneous equipment composite rate
$500.000 --
/ ELECTRIC Demonstration equipment composite rate g wo_ POWER Transportation equipment 3-10 yea s COMPANY Electric plant acquisition is being amortized over a fifteen year period. During 1980 the amortization totaled $10,528.80.
fR 52 @.000 - NUCEAR Electric plant held for future use represents the cost of the Waterville pump storage pr ject.
$1@.000 -
Nuclear fuel in process represents cr.e cost aggregates of the propor%nat a share of the fuel costs to date of: Co-op's portfolio includes alrnost
$1 rnillion in stocks. Incorne from Seabrook Nuclear units $387.789 stocks reduces amount rnernbers Pilgrim Nuclear units 21,054 Milstone Nuclear units 65,871 rnust pay in rates. Bulk of stocks are Verrnont Yankee and CFC. 5474,714
r 1
- 3. Represents 20 acres located m sne town of Troy, Vermont, the Van Everest property and properties in Jay Valley.
- 4. Patronage capital from associated organizations:
~ Certification i
o i The balance represents the patronage cap;tal certificates received of the National of Certified V Rural Utiht;.4 Cooperative Finance Corporation. Public Accountant
- 5. Capital term certificates:
Investments in associated organizations include capital term certificates (CTC) of the . . National Rural Utilities Cooperative Finance Corporation in the following amounts: PETER A. CASTALDE 3979 39g Certified Public Accountant 44 Highland Piace Capital term certificates 5353,194 5399,557 Ridgefield Park, NJ. 07660 - The Cooperative is obligated to purchase additional CTCs in 1981 t!. rough 1985 in the amount of 5378,125.00 in annual installments based on the estimated revenue of the years. March 16,1981 -
- 6. Net of the following provisions for doubtful accounts: /. Douglas Webb, President The Board of Directors Ver nt Electric Cooperative, Inc.
185 54 185 Gentlemen:
- 7. Net of the folbwing provisions for doubtful accounts:
1979 1983 We have examined the Balance 554,628 543,774 Sheet of the Vermont Electric Cooperative, Inc. (a Vermont cor- 27
- 8. Under the provisions of the first mortgage note agreements with the U.S.D.A. ac- poration) as at December 31,1980,
~mulated patronage credits may , at be remitted the app;icable patrons until the and the related slatcments of total of equities and margins equals or exceeds 40 percentum of the total assets of Operating Revenue and Expense, the Cooperative. . Income and Earned Surplus and Source and Application of Funds for .
- 9. The long-term debt to R.E.A. is represented by two percentum first mortgage notes the twelve mon:hs then ended.- Our f3 payable to the United States Government, totaling 57,337,667.61 remaining balance examination was made in ac-
} and five percentum notes of 510,379,671.32 outstanding balance. The notes are for cordance with generally accepted (V 35 year periods each and prmcipal and interest installments are due quarterly m equal auditing standards and, accordingly, amounts or approximately 5258,000.00. It is estimated that mstallments of ..
51,032.000.00 due within the next twelve months will include 5376,900.00 in prin- '"'I***'.ed such tests of the accounting cipal. The notes are scheduled to be fully repaid at various times from April,1979 to records and such cther auditing pro . June, 2014. Long-term debt to N.R.U.C.F.C. was 5729.423.60 at December 31,1980. cedures as we considered necessary in the circumstances.
- 10. Litigatu,n:
l We have requested that corporate counsel advise us of any litigation of which he is In our opinicn, the financial i cognizant. statements referred to above present fairly the finarcial position of the
- 11. Pension benefits are provided for all eligible employees under the retirement and Vermont Electric Cooperative, Inc.
security program of the National Rural Electric Cooperative Association. The cost of at December 31,1979 and 1980, and the plan to the Cooperative was 5126,031.85 which was allocated to expense and construction and retirement cost aggregates. the results cf its operation and. changes u.n financial position for the
- 12. The Cooperative has a financial interest in the Vermont Electric Generation and twelve months then ended in con-Transmissicn Cooperativt, Inc., represented by accourt reccivable from associated formity with generally accepted company. utility accounting principles applied as a basis consistent with that of the ~
preceding period. Peter A. Castalde C.P.A.
/
A n
O GENERAt & ADNUNISTRADVE m= ' EEEI^c72R n$E"loli AS$^t R ""EE "'
, ,,; *
- r -
2' e #l i 1980 Annual Report Vermont Electric Cooperative, Inc. Power and People: Johnson, Vermont 05656 us"fi"fra Enosbu Is. Vt O
O l CENTRAL VERMONT PUBLIC SERVICE CORPORATION Units No. 1 and No. 2 Seabrook Nuclear Power Station Scabrook, New Hampshire O Information furnished pursuant to 550.33 or Commission's Rules and Regulations with respect to the particular Applicant named above as part of the Final Safety Analysis Report and Operating License Application for the above Units. July 1981 O ,
I. ORGANIZATION AND CONTROL (a) Name of Applicant Central Vermont Public Service Corporation (CVPS) (b) Address of Applicant 77 Grove Street Rutland, Vermont 05701 (c) Description of Business of Applicant CVPS, the largest utility in Vermont,is engaged in the purchase, production, transmission, distribution and sale of electricity. Its wholly-owned subsidiary, Connecticut Valley Electric Company Inc. (" Connecticut Valley"), distributes and sells electricity in parts of New Hampehire bordering the Connecticut River. CVPS also owns 58.4% of the common stock of Vermont Electric Power Company, Inc. ("Velco"), which () owns the high voltage transmission system in Vermont, and 31.3% of the common stock of Vermont Yankee Nuclear Power Corporation (" Vermont Yankee") , a nuclecr generating company. CVPS and Connecticut Valley serve a large portion of Vermont (about 103,000 customers) and portions of New Hampshire (nbau: 9,000 customers). CVPS serves 174 of the 245 towns f.n Vermont and Connecticut Valley 12 town 3 in New Hampshire. Over 60% of the Vermont population and about 3% of the population of New Hampshire reside in this service area. ! CVPS owns and operates 22 generating units with an effective i capability of 85,000 KW and in addition purchases power from l other sources including the four Yankee nuclear generating companies and is entitled to shares of the output thereof
aggregating approximately 219 MW. In addition, CVPS x-J owns an 11,000 KW undivided interest in the W. F. Wyman Unit #4 located in Maine. The maximum all-time one-hour peak demand of 394,500 kilowatts occurred on January 13, 1981. Energy generated by operating and proposed units in which CVPS has an interest together with energy purchased pursuant to firm power contracts are anticipated to be sufficient to meet its projected customer demand for energy through 1985. Because the generation and transmission systems of CVPS and the other major New England utilities are operated through the New England Power Pool ("NEPOOL") as if they were a single system, the ability of CVPS to meet its load is related *.olthe ability of all the New England utilities to meet all of the New England load. , C,) Corporate Oraaniza ion (d) CVPS is a business corporation organized under the laws of the State of Vermont. As of October 1, 1980, CVPS had 14,472 domestic shareholders owning 2,973,962 common shares and 19 foreign shareholders owning 5,377 common shares. (e) Corporate Officers and Directors The names and residence addresses of CVPS's principal officers and directors are as follows: Officers' Name Residence L. Douglas Meredith, Chairman 1500 Spear St. So._Burlington, Vt. 05401 James E. Griffin, President & 81 Lincoln Avenue Chief Executive Officer Rutland, Vt. 05701 ('N Richard W. Mallary, Executive RD .
"\ ,) Vice President Rutland, Vt. 05701 t t
O Robert E. Schill, Vice President Finance and Corporate Planning Brookwood Rutland, Vt. 05701 Donald L. Rushford, Vice 63 Chestnut Ave. President and General Councel Rutland, Vt. 05701 Thomas J. Hurcomb, Vice 80 Davis Street President-External Affairs Rutland, Vt. 05701 Theodore W. Millspaugh, Brookwood Treasurer Rutland, Vti- 05701 Alice L. DelBianco, East Proctor Road Secretary Center Rutland, Vt. 05736 Directors' Nggq Residence Robert P. Bl.iss, Jr. 171 No. Main St. St. Albans, Vt. 05478 Frances C. Hutner 28 Hibben Road Princeton, N.J. 08540 Allen O. Eaton 77 Arlington St. Winchester,'Ma. 01890 James E. Griffin 81 Lincoln Avenue Rutland, Vermont 05701 Luther F. Hackett 1299 Spear St. So. Burlington, Vt. 05401 Robert T. Holden R. D. 1 Bennington, Vt. 05201 F. Ray Keyser, Jr. 64 Warne.' St. Proctor, Vt. 05765 Gordon P. Mills Peacham, Vermont 058G2 L. Douglas Meredith 1500 Spear St. So. nuclingt9n, Vt. 05401 Preston Leete Smith Roaring Brook Road Killington, Vt. 05751 Holmes H. Whitmore Walpole, New Hampshire 03608 ( Fred W. Yeadon, Jr. Orchard Heights Brattleboro, Vt. 05301
= .-. . - . . _ _ _ - . - . - - - - - _ _ _ . - , - . . .-. ..
All of the dire. tors and principal officers of CVPS are citizens of he United States of America. CVPS is not owned, con rolled or dominated by .?n alien, foreign corporatio. or foreign government. II. FINANCIAL QUALIFICATIONS
'inder the Joint Ownership Agreement, CVPS is responsible ~
for its Ownership Share of the operation and maintenance cost of the Units which, when the pending transactions described herein have been consummated prior to commercial operation, will be 1.59096% of those costs, and a similar percentage of the ultimate cost of decommissioning the Units. Based upon the estimates set forth above under Part IV of the General Information, CVPS's share of these costs should amount appi;oximately to $2,386,000 and $2,386,000 for the first g-
' five years of operations of Units 1 and 2, respectively; and 4
approximately $6,682,000 to $13,682,000 for the decommissioning of the two Units. In addition, CVPS's share of fuel expenses during the period would be $8,162,000. As evidence of its financial qualifier.tions to meet those costs, CVPS submits herewith: (i) 1980 Annual Report to Stockholders (Exhibit ).
- (ii) 1980 Annual Report on Form 10-K (Exhibit ).
(iii) 1981 Quarterly Report on Form 10-0 (Exhibit ). O V
(iv) Prospectus, dated August 15, 1980, relating to (")'s Dividend Reinvestment and Common Stock Purchase Plan (Exhibit ). (v) Rate order dated February 26, 1981 from State of Vermont Public Service Board (Exhibit ). III. REGULATORY AGENCIES AND PUBLICATIONS (a) Reculatery Acencies The following regulatory agencies have jurisdiction over the rates and services of CVPS. Vermont Public Service Board 7 School Street Montpelier, Vermont 05602 New Fampshire Public Utilities Commission 26 Pleasant Street Concord, New Hampshire 03301 Federal Energy Regulatory Commission Washington, D. C. 20426 (b) Publications The following trade and news publications are used by CVPS for official notifications, and/or are otherwise I appropriate for notices regarding this unit: The Wall Street Journal The New York Times Rutland Herald, Rutland, Vermont 05701 Burlington Free Press, Burlington, Vermont 05401 l O ' k._) N}}