SUSTAINABILITY REPORT 2008 SECTION 7: Financial

We are no longer required to file a 10-K with the Securities & Exchange Commission (SEC) because we are no longer a publicly traded company.  However, we are required to file a form with the Federal Energy Regulation Commission (FERC) on a quarterly and annual basis.  These forms are available on our website.  Our Moody rating is Triple B, which is great in today's world.

 

Debt and Equity

 

Corporate Giving

In 2008, Green Mountain Power gave $100,000 in charitable contributions to organizations in our service territory and strategic gifts to significant statewide institutions.  A detailed breakdown of Green Mountain Power's donations and contributions in 2008 is provided below.

 

Consideration is given to local organizations that support thriving communities, environmental, health and safety programs, as well as education and children's program, such as youth activities and sports programs. Organizations that Green Mountain Power employees are actively involved in receive serious consideration for support.  Green Mountain Power does not contribute to political parties, politicians, or related institutions.  SO6 SO1

Recent Cost-Cutting

Beginning in fall 2008, our financial responsibility began to be tested as the health of the nation's economy began to fail.  While operating at optimum efficiency has always been a core value of our company, we are pushed to be even more efficient.  We are in the midst of reviewing every budget item line by line, asking department managers to help identify cost saving opportunities.  Our recent analysis of how to further reduce costs in the immediate future identified several short term actions that could bring savings during the economic downturn.  These are steps that are not appropriate for the long term, but could be managed on a short term basis, such as salary freezes, elimination of temporary help and a drastic reduction in training and education.  We are assessing the cost benefits of reducing inventory levels, decreasing fuel purchases for our peaking generating units, and timing eligible tax credits to maximize cash flow.  Another option is to postpone some capital purchases, such as vehicles. There are, of course, some disadvantages to these steps, and we will judge whether the long-term drawbacks outweigh the benefits of saving our customers money in the short term.

Renewable Energy Credit Sales

In recent years, Green Mountain Power has sold some of the renewable energy certificates (RECs) associated with its Searsburg wind generating station.  The energy associated with those RECs is labeled "market power," and not wind, as we no longer retain the environmental benefits that are associated with wind power.  In other words, rather than asserting that 0.5% of Green Mountain Power's energy came from wind in 2008, we claim only 0.1% as wind and the remaining 0.4% is considered "market power."  One of the reasons why we sell RECs is because it results in lower power costs for our customers.

Renewable Energy Credits ("RECs") are financial instruments allowing companies to purchase and sell the renewable attributes of qualifying renewable electric generation.  Energy produced by renewable generation facilities such as our wind station and from which RECs have been sold to others, is not counted in our portfolio as wind or renewable generation.  We also retire the RECs so that the gains from the renewable energy are directly realized.  Currently, we only retire a small portion of RECs - primarily, the ones that customers pay for through GreenerGMP.  The rest we sell to help keep rates low.

 

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SECTION 1: PERFORMANCE OVERVIEW                                         

SECTION 2: OUR MATERIAL ISSUES                                                

SECTION 3: THE SUSTAINABILITY OF OUR POWER PROFILE                     

SECTION 4: RESOURCE USE AND OPERATIONS                            

SECTION 5: EMPLOYER                                                                      

SECTION 6: CUSTOMERS AND COMMUNITY                                               

SECTION 7: FINANCIAL                                                                

SECTION 8: COMPANY FACTS & FIGURES                                       

SECTION 9:  GLOBAL REPORTING INITIATIVE (GRI) SUMMARY