22 June 2006 — Green Mountain Power and Vermont-based Northern New England Energy Corp. (NNEEC) have entered into a definitive agreement where NNEEC will acquire Green Mountain Power. Shareholders of Green Mountain Power will receive $35 per share in cash or approximately $187 million in the aggregate.
NNEEC is a Vermont corporation and a wholly-owned subsidiary of Gaz Metro Limited Partnership, a Quebec energy company with investments in Vermont. NNEEC has been the parent company of Vermont Gas Systems since 1986.
The transaction has been approved by Green Mountain Power’s Board of Directors and will require the approval of Green Mountain Power’s shareholders. The transaction is conditioned on, among other regulatory approvals and notices, the approval of the Vermont Public Service Board and the Federal Energy Regulatory Commission, and notice under the Hart-Scott-Rodino Act. It is anticipated that the regulatory proceedings should be completed within approximately 12 months. Upon approval of state and federal regulators, Green Mountain Power will join Vermont Gas Systems and Portland Natural Gas Transmission Systems as one of NNEEC’s New England-based energy subsidiaries.
A statement from Green Mountain Power said it will continue to be managed by its current leadership team and the company will continue to operate out of its existing offices in Vermont. Employees will be retained and the current labor contract with IBEW Local 300 will continue in place. Also, the company will remain under the jurisdiction of state and federal regulators.