----

| UNITED      STATESSECURITIES      AND EXCHANGE COMMISSIONWashington,      D.C.   20549FORM      10-Q |
|---------------------------------------------------------------------------------------------------------------------|

| (Mark      One) |                                                                                                                                                                                                                                                                                               |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| x               | QUARTERLY      REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIESEXCHANGE      ACT OF 1934For      the quarterly period ended   June 30,      2008                                                                                                                  |
| or         |
| ¨          | TRANSITION      REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIESEXCHANGE      ACT OF 1934For      the transition period from             to              |

| Commission      file number 1-8222 Central Vermont Public      Service Corporation(Exact      name of registrant as specified in itscharter) |
|---------------------------------------------------------------------------------------------------------------------------------------------------|

| Vermont(State      or other jurisdiction ofincorporation      or organization)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | 03-0111290(IRS      EmployerIdentification      No.)  |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------|
| 77 Grove Street,      Rutland, Vermont(Address      of principal executive offices)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | 05701(Zip      Code)                                  |
| Registrant's telephone number,      including area code 802-773-2711                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                          (Former      name, former address and former fiscal year, if changed since last      report) |

| Indicate      by check mark whether the registrant (1) has filed all reports required to      be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934      during the preceding 12 months (or for such shorter period that the      registrant was required to file such reports), and (2) has been subject to      such filing requirements for the past 90 days.  Yes x No ¨ Indicate      by check mark whether the registrant is a large accelerated filer, an      accelerated filer, a non-accelerated filer, or a smaller reporting      company.  See the definitions of "large accelerated filer",      "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the      Exchange Act.  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Large      accelerated filer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              | ¨ | Accelerated      filer | x |
| Non-accelerated      filer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                | ¨ (Do not check if a smaller      reporting company) | Smaller      reporting company | ¨ |
| Indicate      by check mark whether the registrant is a shell company (as defined in      Rule 12b-2 of the Exchange Act). Yes ¨ No x Indicate      the number of shares outstanding of each of the issuer's classes of common      stock, as of the latest practicable date.  As of July 31, 2008      there were outstanding 10,346,923 shares of Common Stock, $6 Par      Value.                                                                                                                                                                                                                                                                                                                                                   |

----

| CENTRAL      VERMONT PUBLIC SERVICE CORPORATION      |
|------------------------------------------------------|
| Form      10-Q for Period Ended June 30, 2008        |
|                                                 |
| Table      of Contents                               |
|                                                 |
| PART I.   Financial      Information: |   |
|                                                 |   |   |   |   |   |
|                                                 | Item      1. | Financial      Statements |   |
|                                                 |   |   | Condensed Consolidated Statements of      Income | 2 |
|                                                 |   |   | Condensed Consolidated Statements of Comprehensive      Income | 3 |
|                                                 |   |   | Condensed Consolidated Balance Sheets | 4 |
|                                                 |   |   | Condensed Consolidated Statements of Cash    Flows | 6 |
|                                                 |   |   | Condensed Consolidated Statement of Changes in Common      Stock Equity | 7 |
|                                                 |   |   | Notes to Condensed Consolidated Financial      Statements | 8 |
|                                                 |   |   |   |   |   |
|                                                 | Item 2. | Management's Discussion and Analysis of Financial      Condition and Results of Operations | 21 |
|                                                 |   |   |   |   |   |
|                                                 | Item 3. | Quantitative and Qualitative Disclosures about Market      Risk | 30 |
|                                                 |   |   |   |   |   |
|                                                 | Item 4. | Controls and Procedures | 30 |
|                                                 |   |   |   |   |   |
| PART II.   Other      Information:    |   |
|                                                 |   |   |   |   |   |
|                                                 | Item 1. | Legal Proceedings | 31 |
|                                                 |   |   |   |   |   |
|                                                 | Item 1A. | Risk Factors |   | 31 |
|                                                 |   |   |   |   |   |
|                                                 | Item 4. | Submission of Matters to a Vote of Security      Holders | 31 |
|                                                 |   |   |   |   |   |
|                                                 | Item 5. | Other Information | 32 |
|                                                 |   |   |   |   |   |
|                                                 | Item 6. | Exhibits |   | 32 |
|                                                 |   |   |   |   |
| SIGNATURE                                            |   |   | 33 |

----

PART I. FINANCIAL INFORMATION

| CENTRAL VERMONT PUBLIC SERVICE      CORPORATION           |   |
|-----------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENTS OF INCOME          |   |
| (dollars      in thousands, except per share data)        |   |
| (unaudited)                                               |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                      |   | Three      months ended June 30 |   |   | Six      months ended June 30 |   |
|                                                      |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
| Operating      Revenues                                   |   | $ | 84,487 |   |   | $ | 77,380 |   |   | $ | 175,711 |   |   | $ | 164,076 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      Expenses                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchased      Power - affiliates                         |   |   | 16,270 |   |   |   | 11,817 |   |   |   | 32,738 |   |   |   | 27,955 |   |
| Purchased      Power - other                              |   |   | 25,012 |   |   |   | 28,002 |   |   |   | 51,450 |   |   |   | 54,124 |   |
| Production                                                |   |   | 2,836 |   |   |   | 2,806 |   |   |   | 6,178 |   |   |   | 5,945 |   |
| Transmission      - affiliates                            |   |   | 4,054 |   |   |   | 1,416 |   |   |   | 7,443 |   |   |   | 2,913 |   |
| Transmission      - other                                 |   |   | 3,847 |   |   |   | 3,805 |   |   |   | 8,321 |   |   |   | 7,992 |   |
| Other      operation                                      |   |   | 13,294 |   |   |   | 13,219 |   |   |   | 28,039 |   |   |   | 27,007 |   |
| Maintenance                                               |   |   | 6,473 |   |   |   | 8,471 |   |   |   | 12,642 |   |   |   | 13,928 |   |
| Depreciation                                              |   |   | 3,899 |   |   |   | 3,775 |   |   |   | 7,768 |   |   |   | 7,514 |   |
| Taxes      other than income                              |   |   | 3,713 |   |   |   | 3,776 |   |   |   | 7,752 |   |   |   | 7,504 |   |
| Income      tax expense (benefit)                         |   |   | 846 |   |   |   | (594 | ) |   |   | 2,705 |   |   |   | 2,244 |   |
| Total      Operating Expenses                             |   |   | 80,244 |   |   |   | 76,493 |   |   |   | 165,036 |   |   |   | 157,126 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Utility      Operating Income                             |   |   | 4,243 |   |   |   | 887 |   |   |   | 10,675 |   |   |   | 6,950 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other      Income                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity      in earnings of affiliates                     |   |   | 4,014 |   |   |   | 1,589 |   |   |   | 8,199 |   |   |   | 3,291 |   |
| Allowance      for equity funds during construction       |   |   | 47 |   |   |   | (1 | ) |   |   | 64 |   |   |   | 16 |   |
| Other      income                                         |   |   | 869 |   |   |   | 1,049 |   |   |   | 1,636 |   |   |   | 2,116 |   |
| Other      deductions                                     |   |   | (857 | ) |   |   | (427 | ) |   |   | (2,165 | ) |   |   | (1,020 | ) |
| Income      tax expense                                   |   |   | (1,458 | ) |   |   | (364 | ) |   |   | (2,883 | ) |   |   | (890 | ) |
| Total      Other Income                                   |   |   | 2,615 |   |   |   | 1,846 |   |   |   | 4,851 |   |   |   | 3,513 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Expense                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      on long-term debt                           |   |   | 2,176 |   |   |   | 1,799 |   |   |   | 4,113 |   |   |   | 3,598 |   |
| Other      interest                                       |   |   | 704 |   |   |   | 414 |   |   |   | 1,535 |   |   |   | 644 |   |
| Allowance      for borrowed funds during construction     |   |   | (23 | ) |   |   | (1 | ) |   |   | (31 | ) |   |   | (6 | ) |
| Total      Interest Expense                               |   |   | 2,857 |   |   |   | 2,212 |   |   |   | 5,617 |   |   |   | 4,236 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Income                                           |   |   | 4,001 |   |   |   | 521 |   |   |   | 9,909 |   |   |   | 6,227 |   |
| Dividends      declared on preferred stock                |   |   | 92 |   |   |   | 92 |   |   |   | 184 |   |   |   | 184 |   |
| Earnings      available for common stock                  |   | $ | 3,909 |   |   | $ | 429 |   |   | $ | 9,725 |   |   | $ | 6,043 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Per      Common Share Data:                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      earnings per share                             |   | $ | 0.38 |   |   | $ | 0.04 |   |   | $ | 0.94 |   |   | $ | 0.59 |   |
| Diluted      earnings per share                           |   | $ | 0.38 |   |   | $ | 0.04 |   |   | $ | 0.94 |   |   | $ | 0.58 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average      shares of common stock outstanding - basic   |   |   | 10,337,893 |   |   |   | 10,186,907 |   |   |   | 10,306,699 |   |   |   | 10,161,336 |   |
| Average      shares of common stock outstanding - diluted |   |   | 10,397,675 |   |   |   | 10,307,095 |   |   |   | 10,387,289 |   |   |   | 10,355,990 |   |
|                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividends      declared per share of common stock         |   | $ | 0.23 |   |   | $ | 0.23 |   |   | $ | 0.69 |   |   | $ | 0.69 |   |

----

| CENTRAL      VERMONT PUBLIC SERVICE CORPORATION                                                                   |   |
|-------------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENTS OF COMPREHENSIVE      INCOME                                               |   |
| (dollars      in thousands)                                                                                       |   |
| (unaudited)                                                                                                       |   |
|                                                                                                              |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   | Three      months ended June 30 |   |   | Six      months ended June 30 |   |
|                                                                                                              |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
| Net      Income                                                                                                   |   | $ | 4,001 |   |   | $ | 521 |   |   | $ | 9,909 |   |   | $ | 6,227 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income, net      of tax:                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Defined      benefit pension and postretirement medical plans:                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Portion      reclassified through amortizations, included in benefit                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       costs      and recognized in net income:                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Actuarial      losses, net of income taxes of $1, $3, $1 and $6   |   |   | - |   |   |   | 4 |   |   |   | 1 |   |   |   | 9 |   |
|         Prior      service cost, net of income taxes of $2, $3, $5 and $5 |   |   | 4 |   |   |   | 4 |   |   |   | 6 |   |   |   | 7 |   |
|                                                                                                              |   |   | 4 |   |   |   | 8 |   |   |   | 7 |   |   |   | 16 |   |
|   Portion      reclassified due to adoption of SFAS 158 measurement                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       provision,      included in retained earnings:                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|         Prior      service cost, net of income taxes of $0, $0, $2 and $0 |   |   | - |   |   |   | - |   |   |   | 4 |   |   |   | - |   |
|                                                                                                              |   |   | - |   |   |   | - |   |   |   | 4 |   |   |   | - |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      income adjustments                                                                             |   |   | 4 |   |   |   | 8 |   |   |   | 11 |   |   |   | 16 |   |
|                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      comprehensive income                                                                                   |   | $ | 4,005 |   |   | $ | 529 |   |   | $ | 9,920 |   |   | $ | 6,243 |   |

----

| CENTRAL      VERMONT PUBLIC SERVICE CORPORATION                                                                                                      |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED BALANCE SHEETS                                                                                                           |   |
| (dollars      in thousands, except share data)                                                                                                       |   |
| (unaudited)                                                                                                                                          |   |
|                                                                                                                                                 |   | June      30, 2008 |   |   | December      31, 2007 |   |
| ASSETS                                                                                                                                               |   |   |   |   |   |   |
| Utility      plant                                                                                                                                   |   |   |   |   |   |   |
|   Utility      plant, at original cost                                                                                                     |   | $ | 544,578 |   |   | $ | 538,229 |   |
|   Less      accumulated depreciation                                                                                                       |   |   | 240,157 |   |   |   | 235,465 |   |
|   Utility      plant, at original cost, net of accumulated depreciation                                                                    |   |   | 304,421 |   |   |   | 302,764 |   |
|   Property      under capital leases, net                                                                                                  |   |   | 6,333 |   |   |   | 6,788 |   |
|   Construction      work-in-progress                                                                                                       |   |   | 15,259 |   |   |   | 9,611 |   |
|   Nuclear      fuel, net                                                                                                                   |   |   | 1,603 |   |   |   | 1,105 |   |
| Total      utility plant, net                                                                                                                        |   |   | 327,616 |   |   |   | 320,268 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Investments      and other assets                                                                                                                    |   |   |   |   |   |   |   |   |
|   Investments      in affiliates                                                                                                           |   |   | 96,902 |   |   |   | 93,452 |   |
|   Non-utility      property, less accumulated depreciation    ($3,690      in 2008 and $3,681 in 2007)                 |   |   | 1,663 |   |   |   | 1,646 |   |
|   Millstone      decommissioning trust fund                                                                                                |   |   | 5,513 |   |   |   | 5,645 |   |
|   Other                                                                                                                                    |   |   | 6,556 |   |   |   | 7,504 |   |
| Total      investments and other assets                                                                                                              |   |   | 110,634 |   |   |   | 108,247 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Current      assets                                                                                                                                  |   |   |   |   |   |   |   |   |
|   Cash      and cash equivalents                                                                                                           |   |   | 6,562 |   |   |   | 3,803 |   |
|   Restricted      cash                                                                                                                     |   |   | 1 |   |   |   | 62 |   |
|   Special      deposits                                                                                                                    |   |   | 741 |   |   |   | 1,000 |   |
|   Accounts      receivable, less allowance for uncollectible accounts    ($2,095      in 2008 and $1,751 in 2007)      |   |   | 22,923 |   |   |   | 24,086 |   |
|   Accounts      receivable - affiliates, less allowance for uncollectible      accounts    ($48      in 2008 and 2007) |   |   | 123 |   |   |   | 254 |   |
|   Unbilled      revenues                                                                                                                   |   |   | 15,548 |   |   |   | 17,665 |   |
|   Materials      and supplies, at average cost                                                                                             |   |   | 5,253 |   |   |   | 5,461 |   |
|   Prepayments                                                                                                                              |   |   | 4,181 |   |   |   | 8,942 |   |
|   Deferred      income taxes                                                                                                               |   |   | 5,738 |   |   |   | 3,638 |   |
|   Power-related      derivatives                                                                                                           |   |   | 3,290 |   |   |   | 707 |   |
|   Other      current assets                                                                                                                |   |   | 447 |   |   |   | 1,081 |   |
|   Total current      assets                                                                                                                |   |   | 64,807 |   |   |   | 66,699 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Deferred      charges and other assets                                                                                                               |   |   |   |   |   |   |   |   |
|   Regulatory      assets                                                                                                                   |   |   | 30,648 |   |   |   | 31,988 |   |
|   Other      deferred charges - regulatory                                                                                                 |   |   | 18,698 |   |   |   | 8,988 |   |
|   Other      deferred charges and other assets                                                                                             |   |   | 4,742 |   |   |   | 4,124 |   |
| Total      deferred charges and other assets                                                                                                         |   |   | 54,088 |   |   |   | 45,100 |   |
|                                                                                                                                                 |   |   |   |   |   |   |   |   |
| TOTAL      ASSETS                                                                                                                                    |   | $ | 557,145 |   |   | $ | 540,314 |   |

----

| CENTRAL      VERMONT PUBLIC SERVICE CORPORATION                                                                                                                                                                                                                                         |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED BALANCE SHEETS                                                                                                                                                                                                                                              |   |
| (dollars      in thousands, except share data)                                                                                                                                                                                                                                          |   |
| (unaudited)                                                                                                                                                                                                                                                                             |   |
|                                                                                                                                                                                                                                                                                    |   | June      30, 2008 |   |   | December      31, 2007 |   |
| CAPITALIZATION      AND LIABILITIES                                                                                                                                                                                                                                                     |   |   |   |   |   |   |
| Capitalization                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |
|   Common      stock, $6 par value, 19,000,000 shares authorized,          12,549,552 issued and 10,345,785 outstanding at June 30, 2008      and          12,474,687 issued and 10,244,559 outstanding at December 31,      2007 |   | $ | 75,297 |   |   | $ | 74,848 |   |
|   Other      paid-in capital                                                                                                                                                                                                                                                  |   |   | 57,228 |   |   |   | 56,324 |   |
|   Accumulated      other comprehensive loss                                                                                                                                                                                                                                   |   |   | (367 | ) |   |   | (378 | ) |
|   Treasury      stock, at cost, 2,203,767 shares at June 30, 2008 and          2,230,128 shares at December 31, 2007                                                                                                                                      |   |   | (50,135 | ) |   |   | (50,734 | ) |
|   Retained      earnings                                                                                                                                                                                                                                                      |   |   | 111,303 |   |   |   | 108,747 |   |
| Total      common stock equity                                                                                                                                                                                                                                                          |   |   | 193,326 |   |   |   | 188,807 |   |
|   Preferred      and preference stock not subject to mandatory redemption                                                                                                                                                                                                     |   |   | 8,054 |   |   |   | 8,054 |   |
|   Preferred      stock subject to mandatory redemption                                                                                                                                                                                                                        |   |   | 1,000 |   |   |   | 2,000 |   |
|   Long-term      debt                                                                                                                                                                                                                                                         |   |   | 172,950 |   |   |   | 112,950 |   |
|   Capital      lease obligations                                                                                                                                                                                                                                              |   |   | 5,432 |   |   |   | 5,889 |   |
| Total      capitalization                                                                                                                                                                                                                                                               |   |   | 380,762 |   |   |   | 317,700 |   |
|                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Current      liabilities                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|   Current      portion of preferred stock subject to mandatory redemption                                                                                                                                                                                                     |   |   | 1,000 |   |   |   | 1,000 |   |
|   Current      portion of long-term debt                                                                                                                                                                                                                                      |   |   | 3,000 |   |   |   | 3,000 |   |
|   Accounts      payable                                                                                                                                                                                                                                                       |   |   | 3,688 |   |   |   | 6,253 |   |
|   Accounts      payable - affiliates                                                                                                                                                                                                                                          |   |   | 11,792 |   |   |   | 13,205 |   |
|   Notes      payable                                                                                                                                                                                                                                                          |   |   | 10,800 |   |   |   | 63,800 |   |
|   Dividends      payable                                                                                                                                                                                                                                                      |   |   | 2,379 |   |   |   | - |   |
|   Nuclear      decommissioning costs                                                                                                                                                                                                                                          |   |   | 1,992 |   |   |   | 2,309 |   |
|   Power-related      derivatives                                                                                                                                                                                                                                              |   |   | 8,340 |   |   |   | 3,225 |   |
|   Other      current liabilities                                                                                                                                                                                                                                              |   |   | 22,146 |   |   |   | 20,761 |   |
| Total      current liabilities                                                                                                                                                                                                                                                          |   |   | 65,137 |   |   |   | 113,553 |   |
|                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Deferred      credits and other liabilities                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
|   Deferred      income taxes                                                                                                                                                                                                                                                  |   |   | 35,895 |   |   |   | 33,666 |   |
|   Deferred      investment tax credits                                                                                                                                                                                                                                        |   |   | 3,151 |   |   |   | 3,341 |   |
|   Nuclear      decommissioning costs                                                                                                                                                                                                                                          |   |   | 8,781 |   |   |   | 9,580 |   |
|   Asset      retirement obligations                                                                                                                                                                                                                                           |   |   | 3,298 |   |   |   | 3,200 |   |
|   Accrued      pension and benefit obligations                                                                                                                                                                                                                                |   |   | 15,707 |   |   |   | 19,874 |   |
|   Power-related      derivatives                                                                                                                                                                                                                                              |   |   | 8,855 |   |   |   | 4,592 |   |
|   Other      deferred credits - regulatory                                                                                                                                                                                                                                    |   |   | 11,337 |   |   |   | 9,395 |   |
|   Other      deferred credits and other liabilities                                                                                                                                                                                                                           |   |   | 24,222 |   |   |   | 25,413 |   |
| Total      deferred credits and other liabilities                                                                                                                                                                                                                                       |   |   | 111,246 |   |   |   | 109,061 |   |
|                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| Commitments      and contingencies                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |   |
| TOTAL      CAPITALIZATION AND LIABILITIES                                                                                                                                                                                                                                               |   | $ | 557,145 |   |   | $ | 540,314 |   |

----

| CENTRAL      VERMONT PUBLIC SERVICE CORPORATION                                             |   |
|---------------------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS                                        |   |
| (dollars      in thousands)                                                                 |   |
| (unaudited)                                                                                 |   |
|                                                                                        |   | Six      months ended June 30 |   |
|                                                                                        |   | 2008 |   |   | 2007 |   |
| Cash      flows provided (used) by:                                                         |   |   |   |   |   |   |
| OPERATING      ACTIVITIES                                                                   |   |   |   |   |   |   |
| Net      income                                                                             |   | $ | 9,909 |   |   | $ | 6,227 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities: |   |   |   |   |   |   |   |   |
| Equity      in earnings of affiliates                                                       |   |   | (8,199 | ) |   |   | (3,291 | ) |
| Distributions      received from affiliates                                                 |   |   | 4,868 |   |   |   | 2,510 |   |
| Depreciation                                                                                |   |   | 7,768 |   |   |   | 7,514 |   |
| Deferred      income taxes and investment tax credits                                       |   |   | (291 | ) |   |   | (55 | ) |
| Non-cash      employee benefit plan costs                                                   |   |   | 2,926 |   |   |   | 3,604 |   |
| Regulatory      and other amortization, net                                                 |   |   | (752 | ) |   |   | (2,247 | ) |
| Other      non-cash expense, net                                                            |   |   | 2,595 |   |   |   | 1,644 |   |
| Changes      in assets and liabilities:                                                     |   |   |   |   |   |   |   |   |
| Decrease      in accounts receivable and unbilled revenues                                  |   |   | 2,075 |   |   |   | 5,764 |   |
| Decrease      in accounts payable                                                           |   |   | (3,195 | ) |   |   | (3,411 | ) |
| Increase      in accrued income taxes                                                       |   |   | 3,215 |   |   |   | - |   |
| Decrease      in other current assets                                                       |   |   | 2,638 |   |   |   | 1,265 |   |
| Increase      in special deposits and restricted cash for power    collateral               |   |   | (679 | ) |   |   | (1,654 | ) |
| Employee      benefit plan funding                                                          |   |   | (7,226 | ) |   |   | (7,879 | ) |
| Increase      (decrease) in other current liabilities                                       |   |   | 476 |   |   |   | (1,327 | ) |
| Other      non-current assets and liabilities and other                                     |   |   | (231 | ) |   |   | (16 | ) |
| Net      cash provided by operating activities                                              |   |   | 15,897 |   |   |   | 8,648 |   |
| INVESTING      ACTIVITIES                                                                   |   |   |   |   |   |   |   |   |
| Construction      and plant expenditures                                                    |   |   | (15,721 | ) |   |   | (9,772 | ) |
| Investments      in available-for-sale securities                                           |   |   | (617 | ) |   |   | (816 | ) |
| Proceeds      from sale of available-for-sale securities                                    |   |   | 478 |   |   |   | 734 |   |
| Proceeds      from sale of property                                                         |   |   | - |   |   |   | 342 |   |
| Return      of capital from investments in affiliates                                       |   |   | 96 |   |   |   | 108 |   |
| Other      investments and capital expenditures                                             |   |   | (113 | ) |   |   | (270 | ) |
| Net      cash used for investing activities                                                 |   |   | (15,877 | ) |   |   | (9,674 | ) |
| FINANCING      ACTIVITIES                                                                   |   |   |   |   |   |   |   |   |
| Proceeds      from issuance of common stock                                                 |   |   | 1,508 |   |   |   | 974 |   |
| Common      and preferred dividends paid                                                    |   |   | (4,921 | ) |   |   | (4,857 | ) |
| Proceeds      from issuance of first mortgage bonds                                         |   |   | 60,000 |   |   |   | - |   |
| Repayment      of Notes Payable                                                             |   |   | (53,000 | ) |   |   | - |   |
| Debt      issuance costs                                                                    |   |   | (691 | ) |   |   | - |   |
| Proceeds      from borrowings under revolving credit facility                               |   |   | 9,300 |   |   |   | 19,600 |   |
| Repayments      under revolving credit facility                                             |   |   | (9,300 | ) |   |   | (13,150 | ) |
| Retirement      of preferred stock subject to mandatory redemption                          |   |   | (1,000 | ) |   |   | (1,000 | ) |
| Decrease      in special deposits held for preferred stock redemptions                      |   |   | 1,000 |   |   |   | 1,000 |   |
| Other                                                                                       |   |   | (157 | ) |   |   | (149 | ) |
| Net      cash provided by financing activities                                              |   |   | 2,739 |   |   |   | 2,418 |   |
| Net      increase in cash and cash equivalents                                              |   |   | 2,759 |   |   |   | 1,392 |   |
| Cash      and cash equivalents at beginning of the period                                   |   |   | 3,803 |   |   |   | 2,799 |   |
| Cash      and cash equivalents at end of the period                                         |   | $ | 6,562 |   |   | $ | 4,191 |   |

----

| CENTRAL      VERMONT PUBLIC SERVICE CORPORATION                              |   |
|------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENT OF CHANGES IN COMMON STOCK      EQUITY |   |
| (in      thousands, except share data)                                       |   |
| (unaudited)                                                                  |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                         |   | Common      Stock |   |   |   |   |   | Accumulated |   |   | Treasury      Stock |   |   |   |   |   |   |   |
|                                                                         |   |   |   |   |   |   | Other |   |   | Other |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                         | Shares |   |   |   |   |   | Paid-in |   |   | Comprehensive |   |   |   |   |   |   |   |   | Retained |   |   |   |   |
|                                                                         | Issued |   |   | Amount |   |   | Capital |   |   | Loss |   |   | Shares |   |   | Amount |   |   | Earnings |   |   | Total |   |
| Balance,      December 31, 2007                                              |   |   | 12,474,687 |   |   | $ | 74,848 |   |   | $ | 56,324 |   |   | $ | (378 | ) |   |   | 2,230,128 |   |   | $ | (50,734 | ) |   | $ | 108,747 |   |   | $ | 188,807 |   |
| Adjust      to initially apply SFAS 158 measurement provision, net of    tax |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 4 |   |   |   |   |   |   |   |   |   |   |   | (50 | ) |   |   | (46 | ) |
| Net      income                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 9,909 |   |   |   | 9,909 |   |
| Other      comprehensive income                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 7 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 7 |   |
| Dividend      reinvestment plan                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (26,361 | ) |   |   | 599 |   |   |   |   |   |   |   | 599 |   |
| Stock      options exercised                                                 |   |   | 58,000 |   |   |   | 348 |   |   |   | 772 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,120 |   |
| Share-based      compensation                                                |   |   | 16,865 |   |   |   | 101 |   |   |   | 92 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 193 |   |
| Dividends      declared on common and preferred stock                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (7,300 | ) |   |   | (7,300 | ) |
| Amortization      of preferred stock issuance expense                        |   |   |   |   |   |   |   |   |   |   | 8 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 8 |   |
| Gain      on issuance of treasury stock                                      |   |   |   |   |   |   |   |   |   |   | 29 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 29 |   |
| Loss      on reacquisition of capital stock                                  |   |   |   |   |   |   |   |   |   |   | 3 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (3 | ) |   |   | 0 |   |
| Balance,      June 30, 2008                                                  |   |   | 12,549,552 |   |   | $ | 75,297 |   |   | $ | 57,228 |   |   | $ | (367 | ) |   |   | 2,203,767 |   |   | $ | (50,135 | ) |   | $ | 111,303 |   |   | $ | 193,326 |   |
|                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

NOTE 1 - BUSINESS ORGANIZATION 

----

----

|                                                             |   | Three      months ended June 30 |       |   | Six      months ended June 30 |   |
|------------------------------------------------------------------|--------|---------------------------------|------------|--------|-------------------------------|--------|
|                                                             |   | 2008                            |       |   | 2007                          |   |   | 2008 |   |   | 2007 |   |
| Numerator for basic      and diluted EPS:                        |   |                            |       |   |                          |   |   |   |   |   |   |   |
| Net      income                                                  |   | $                               | 4,001      |   |                          | $      | 521 |   |   | $ | 9,909 |   |   | $ | 6,227 |   |
| Dividends      declared on preferred stock                       |   |                            | 92         |   |                          |   | 92 |   |   |   | 184 |   |   |   | 184 |   |
| Net      income available for common stock                       |   | $                               | 3,909      |   |                          | $      | 429 |   |   | $ | 9,725 |   |   | $ | 6,043 |   |
|                                                             |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Denominators for basic      and diluted EPS:                     |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average      basic shares of common stock outstanding   |   |                            | 10,337,893 |   |                          |   | 10,186,907 |   |   |   | 10,306,699 |   |   |   | 10,161,336 |   |
|    Dilutive      effect of stock options          |   |                            | 46,256     |   |                          |   | 104,636 |   |   |   | 69,393 |   |   |   | 182,437 |   |
|    Dilutive      effect of performance shares     |   |                            | 13,526     |   |                          |   | 15,552 |   |   |   | 11,197 |   |   |   | 12,217 |   |
| Weighted-average      diluted shares of common stock outstanding |   |                            | 10,397,675 |   |                          |   | 10,307,095 |   |   |   | 10,387,289 |   |   |   | 10,355,990 |   |
|                                                             |   |                            |       |   |                          |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                      |   | Three      months ended June 30 |   |   | Six      months ended June 30 |   |
|-----------------------------------------------------------|--------|---------------------------------|--------|--------|-------------------------------|--------|
|                                                      |   | 2008                            |   |   | 2007                          |   |   | 2008 |   |   | 2007 |   |
|                                                      |   |                            |   |   |                          |   |   |   |   |   |   |   |
| Operating      revenues                                   |   | $                               | 18,599 |   |                          | $      | 12,310 |   |   | $ | 36,473 |   |   | $ | 25,097 |   |
| Operating      income                                     |   | $                               | 9,073  |   |                          | $      | 5,404 |   |   | $ | 17,682 |   |   | $ | 10,492 |   |
|                                                      |   |                            |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Net      income before non-controlling interest           |   | $                               | 8,329  |   |                          | $      | 3,087 |   |   | $ | 16,668 |   |   | $ | 6,261 |   |
| Less      members' non-controlling interest in net income |   |                            | 7,628  |   |                          |   | 2,360 |   |   |   | 15,256 |   |   |   | 4,725 |   |
| Net      income                                           |   | $                               | 701    |   |                          | $      | 727 |   |   | $ | 1,412 |   |   | $ | 1,536 |   |
|                                                      |   |                            |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Ownership      interest                                   |   |                            | 47.05  | %      |                          |   | 47.05 | % |   |   | 47.05 | % |   |   | 47.05 | % |
| Equity      in net income                                 |   | $                               | 274    |   |                          | $      | 386 |   |   | $ | 646 |   |   | $ | 783 |   |

|                      |   | Three      months ended June 30 |   |   | Six      months ended June 30 |   |
|---------------------------|--------|---------------------------------|--------|--------|-------------------------------|--------|
|                      |   | 2008                            |   |   | 2007                          |   |   | 2008 |   |   | 2007 |   |
|                      |   |                            |   |   |                          |   |   |   |   |   |   |   |
| Operating      revenues   |   | $                               | 18,473 |   |                          | $      | 12,221 |   |   | $ | 36,220 |   |   | $ | 24,885 |   |
| Operating      income     |   | $                               | 9,522  |   |                          | $      | 5,747 |   |   | $ | 18,580 |   |   | $ | 11,287 |   |
| Net      income           |   | $                               | 8,767  |   |                          | $      | 3,393 |   |   | $ | 17,534 |   |   | $ | 6,900 |   |
|                      |   |                            |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Ownership      interest   |   |                            | 39.79  | %      |                          |   | 29.86 | % |   |   | 39.79 | % |   |   | 29.86 | % |
| Equity      in net income |   | $                               | 3,675  |   |                          | $      | 1,082 |   |   | $ | 7,407 |   |   | $ | 2,243 |   |

|                         |   | Three      months ended June 30 |   |   | Six      months ended June 30 |   |
|------------------------------|--------|---------------------------------|--------|--------|-------------------------------|--------|
|                         |   | 2008                            |   |   | 2007                          |   |   | 2008 |   |   | 2007 |   |
|                         |   |                            |   |   |                          |   |   |   |   |   |   |   |
| Operating      revenues      |   | $                               | 45,140 |   |                          | $      | 31,920 |   |   | $ | 90,794 |   |   | $ | 76,292 |   |
| Operating      (loss) income |   | $                               | (137   | )      |                          | $      | 1,005 |   |   | $ | 2 |   |   | $ | 1,832 |   |
| Net      income              |   | $                               | 110    |   |                          | $      | 193 |   |   | $ | 234 |   |   | $ | 418 |   |
|                         |   |                            |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Ownership      interest      |   |                            | 58.85  | %      |                          |   | 58.85 | % |   |   | 58.85 | % |   |   | 58.85 | % |
| Equity      in net income    |   | $                               | 65     |   |                          | $      | 113 |   |   | $ | 138 |   |   | $ | 246 |   |

----

----

|                                                     |   | June      30, 2008 |   |   | December      31, 2007 |   |
|----------------------------------------------------------|--------|--------------------|--------|--------|------------------------|--------|
| Regulatory      assets                                   |   |               |   |   |                   |   |
| Pension      and postretirement medical costs - SFAS 158 |   | $                  | 14,498 |   |                   | $      | 14,673 |   |
| Nuclear      plant dismantling costs                     |   |               | 10,773 |   |                   |   | 11,889 |   |
| Nuclear      refueling outage costs - Millstone Unit #3  |   |               | 273    |   |                   |   | 820 |   |
| Income      taxes                                        |   |               | 3,944  |   |                   |   | 3,757 |   |
| Asset      retirement obligations and other              |   |               | 1,160  |   |                   |   | 849 |   |
| Total      Regulatory assets                             |   |               | 30,648 |   |                   |   | 31,988 |   |
|                                                     |   |               |   |   |                   |   |   |   |
| Other deferred charges      - regulatory                 |   |               |   |   |                   |   |   |   |
| Vermont      Yankee sale costs (tax)                     |   |               | 673    |   |                   |   | 673 |   |
| Unrealized      losses on power-related derivatives      |   |               | 17,195 |   |                   |   | 7,817 |   |
| Other                                                    |   |               | 830    |   |                   |   | 498 |   |
| Total Other      deferred charges - regulatory      |   |               | 18,698 |   |                   |   | 8,988 |   |
|                                                     |   |               |   |   |                   |   |   |   |
| Other deferred credits      - regulatory                 |   |               |   |   |                   |   |   |   |
| Asset      retirement obligation - Millstone Unit #3     |   |               | 2,880  |   |                   |   | 3,085 |   |
| Vermont      Yankee related deferrals                    |   |               | 1,093  |   |                   |   | 1,596 |   |
| Emission      allowances and renewable energy credits    |   |               | 462    |   |                   |   | 616 |   |
| Unrealized      gains on power-related derivatives       |   |               | 3,235  |   |                   |   | 707 |   |
| Environmental      remediation                           |   |               | 1,462  |   |                   |   | 1,834 |   |
| Other                                                    |   |               | 2,205  |   |                   |   | 1,557 |   |
| Total Other      deferred credits - regulatory      |   | $                  | 11,337 |   |                   | $      | 9,395 |   |

----

|                                                                    |   | Fair      Value as of June 30, 2008 |   |
|-------------------------------------------------------------------------|--------|-------------------------------------|--------|
|                                                                    |   | Level      1                        |   |   | Level      2 |   |   | Level      3 |   |   | Total |   |
| Assets:                                                                 |   |                                |   |   |   |   |   |   |   |   |   |   |
|      Millstone      decommissioning trust fund |   | $                                   | 0      |   |   | $ | 5,513 |   |   | $ | 0 |   |   | $ | 5,513 |   |
|      Power-related      derivatives - current  |   |                                | 0      |   |   |   | 0 |   |   |   | 3,290 |   |   |   | 3,290 |   |
|      Total                                     |   | $                                   | 0      |   |   | $ | 5,513 |   |   | $ | 3,290 |   |   | $ | 8,803 |   |
|                                                                    |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                                            |   |                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Power-related      derivatives            |   | $                                   | 0      |   |   | $ | 0 |   |   | $ | 17,195 |   |   | $ | 17,195 |   |

----

|                                                                                              |   | Three      months ended |    |   | Six      months ended |   |
|---------------------------------------------------------------------------------------------------|--------|-------------------------|---------|--------|-----------------------|--------|
| Balance      at Beginning of Period                                                               |   | $                       | (11,426 | )      |                  | $      | (7,110 | ) |
|      Net      realized gains recognized in Purchased Power - other       |   |                    | 60      |   |                  |   | 16 |   |
|      Net      unrealized losses included in regulatory liability (asset) |   |                    | (2,629  | )      |                  |   | (7,550 | ) |
|      Purchases,      sales, issuances and net settlements                |   |                    | 90      |   |                  |   | 739 |   |
|      Transfers      to or (from) level 3                                 |   |                    | 0       |   |                  |   | 0 |   |
| Balance      at June 30, 2008                                                                     |   | $                       | (13,905 | )      |                  | $      | (13,905 | ) |
|                                                                                              |   |                    |    |   |                  |   |   |   |
| Net      realized gains relating to instruments still held during the      period                 |   | $                       | 56      |   |                  | $      | 33 |   |

|                                                                          |   | June      30, 2008 |    |   | December      31, 2007 |   |
|-------------------------------------------------------------------------------|--------|--------------------|---------|--------|------------------------|--------|
| First      Mortgage Bonds                                                     |   |               |    |   |                   |   |
|      6.27%,      Series NN, due 2008                 |   | $                  | 3,000   |   |                   | $      | 3,000 |   |
|      5.00%,      Series SS, due 2011                 |   |               | 20,000  |   |                   |   | 20,000 |   |
|      5.72%,      Series TT, due 2019                 |   |               | 55,000  |   |                   |   | 55,000 |   |
|      6.90%,      Series OO, due 2023                 |   |               | 17,500  |   |                   |   | 17,500 |   |
|      6.83%,      Series UU, due 2028                 |   |               | 60,000  |   |                   |   | 0 |   |
|      8.91%,      Series JJ, due 2031                 |   |               | 15,000  |   |                   |   | 15,000 |   |
| New      Hampshire Industrial Development Authority Bonds                     |   |               |    |   |                   |   |   |   |
|      Variable      3.75%, due 2009                   |   |               | 5,450   |   |                   |   | 5,450 |   |
| Total      long-term debt                                                     |   |               | 175,950 |   |                   |   | 115,950 |   |
|     Less      current amount payable, due within one year |   |               | 3,000   |   |                   |   | 3,000 |   |
| Total      long-term debt less current portion                                |   | $                  | 172,950 |   |                   | $      | 112,950 |   |

----

|                                                                                                          |   | June      30, 2008 |   |   | December      31, 2007 |   |
|---------------------------------------------------------------------------------------------------------------|--------|--------------------|--------|--------|------------------------|--------|
| Revenue      Bonds                                                                                            |   |               |   |   |                   |   |
| Vermont      Industrial Development Authority Bonds                                                           |   |               |   |   |                   |   |
|     Variable,      due 2013 (1.65 % at June 30, 2008 and 3.05% at December 31,      2007) |   | $                  | 5,800  |   |                   | $      | 5,800 |   |
| Connecticut      Development Authority Bonds                                                                  |   |               |   |   |                   |   |   |   |
|     Variable,      due 2015 (1.72% at June 30, 2008 and 3.55% at December 31,      2007)  |   |               | 5,000  |   |                   |   | 5,000 |   |
| Short      term note payable                                                                                  |   |               |   |   |                   |   |   |   |
|     Variable,      due June 30, 2008 (5.44% at December 31, 2007)                         |   |               | 0      |   |                   |   | 53,000 |   |
| Total      Notes Payable                                                                                      |   | $                  | 10,800 |   |                   | $      | 63,800 |   |

----

|                                       |   | Three      months ended June 30 |   |   | Six      months ended June 30 |   |
|--------------------------------------------|--------|---------------------------------|--------|--------|-------------------------------|--------|
|  Pension      Benefits                |   | 2008                            |   |   | 2007                          |   |   | 2008 |   |   | 2007 |   |
| Service      cost                          |   | $                               | 823    |   |                          | $      | 888 |   |   | $ | 1,646 |   |   | $ | 1,776 |   |
| Interest      cost                         |   |                            | 1,523  |   |                          |   | 1,561 |   |   |   | 3,046 |   |   |   | 3,122 |   |
| Expected      return on plan assets        |   |                            | (1,831 | )      |                          |   | (1,680 | ) |   |   | (3,662 | ) |   |   | (3,360 | ) |
| Amortization      of net actuarial loss    |   |                            | -      |   |                          |   | 146 |   |   |   | - |   |   |   | 292 |   |
| Amortization      of prior service cost    |   |                            | 97     |   |                          |   | 100 |   |   |   | 194 |   |   |   | 200 |   |
| Net      periodic benefit cost             |   |                            | 612    |   |                          |   | 1,015 |   |   |   | 1,224 |   |   |   | 2,030 |   |
| Less      amounts capitalized              |   |                            | 100    |   |                          |   | 181 |   |   |   | 188 |   |   |   | 352 |   |
| Net      benefit costs expensed            |   | $                               | 512    |   |                          | $      | 834 |   |   | $ | 1,036 |   |   | $ | 1,678 |   |
|                                       |   |                            |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
|  Postretirement      Benefits         |   |                            |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |
| Service      cost                          |   | $                               | 155    |   |                          | $      | 145 |   |   | $ | 310 |   |   | $ | 290 |   |
| Interest      cost                         |   |                            | 403    |   |                          |   | 377 |   |   |   | 806 |   |   |   | 754 |   |
| Expected      return on plan assets        |   |                            | (267   | )      |                          |   | (233 | ) |   |   | (534 | ) |   |   | (466 | ) |
| Amortization      of net actuarial loss    |   |                            | 263    |   |                          |   | 263 |   |   |   | 526 |   |   |   | 526 |   |
| Amortization      of transition obligation |   |                            | 64     |   |                          |   | 64 |   |   |   | 128 |   |   |   | 128 |   |
| Net      periodic benefit cost             |   |                            | 618    |   |                          |   | 616 |   |   |   | 1,236 |   |   |   | 1,232 |   |
| Less      amounts capitalized              |   |                            | 101    |   |                          |   | 110 |   |   |   | 190 |   |   |   | 214 |   |
| Net      benefit costs expensed            |   | $                               | 517    |   |                          | $      | 506 |   |   | $ | 1,046 |   |   | $ | 1,018 |   |

----

----

----

|                                   |   |   |    |   |      |   |   | Reclassification      & |   |   |         |   |
|----------------------------------------|--------|--------|---------|--------|-----------|--------|--------|-----------------------------|--------|--------|--------------|--------|
|                                   |   |   |    |   | Other     |   |   | Consolidating               |   |   |         |   |
|                                   |   | CV-VT  |    |   | Companies |   |   | Entries                     |   |   | Consolidated |   |
| Three      Months Ended                |   |   |    |   |      |   |   |                        |   |   |         |   |
| June 30,      2008                     |   |   |    |   |      |   |   |                        |   |   |         |   |
| Revenues      from external customers  |   | $      | 84,487  |   |      | $      | 434    |                        |   | $      | (434         | )      |   | $ | 84,487 |   |
| Net      income                        |   | $      | 3,939   |   |      | $      | 62     |                        |   | $      | -            |   |   | $ | 4,001 |   |
| Total      assets at June 30, 2008     |   | $      | 555,422 |   |      | $      | 1,965  |                        |   | $      | (242         | )      |   | $ | 557,145 |   |
|                                   |   |   |    |   |      |   |   |                        |   |   |         |   |   |   |   |   |
| June 30,      2007                     |   |   |    |   |      |   |   |                        |   |   |         |   |   |   |   |   |
| Revenues      from external customers  |   | $      | 77,380  |   |      | $      | 439    |                        |   | $      | (439         | )      |   | $ | 77,380 |   |
| Net      income                        |   | $      | 433     |   |      | $      | 88     |                        |   | $      | -            |   |   | $ | 521 |   |
| Total      assets at December 31, 2007 |   | $      | 538,481 |   |      | $      | 2,134  |                        |   | $      | (301         | )      |   | $ | 540,314 |   |
|                                   |   |   |    |   |      |   |   |                        |   |   |         |   |   |   |   |   |
| Six      Months Ended                  |   |   |    |   |      |   |   |                        |   |   |         |   |   |   |   |   |
| June 30,      2008                     |   |   |    |   |      |   |   |                        |   |   |         |   |   |   |   |   |
| Revenues      from external customers  |   | $      | 175,711 |   |      | $      | 866    |                        |   | $      | (866         | )      |   | $ | 175,711 |   |
| Net      income                        |   | $      | 9,769   |   |      | $      | 140    |                        |   | $      | -            |   |   | $ | 9,909 |   |
| Total      assets at June 30, 2008     |   | $      | 555,422 |   |      | $      | 1,965  |                        |   | $      | (242         | )      |   | $ | 557,145 |   |
|                                   |   |   |    |   |      |   |   |                        |   |   |         |   |   |   |   |   |
| June 30,      2007                     |   |   |    |   |      |   |   |                        |   |   |         |   |   |   |   |   |
| Revenues      from external customers  |   | $      | 164,076 |   |      | $      | 874    |                        |   | $      | (874         | )      |   | $ | 164,076 |   |
| Net      income                        |   | $      | 5,911   |   |      | $      | 316    |                        |   | $      | -            |   |   | $ | 6,227 |   |
| Total      assets at December 31, 2007 |   | $      | 538,481 |   |      | $      | 2,134  |                        |   | $      | (301         | )      |   | $ | 540,314 |   |

----

Discussion and Analysis 

| §  | the      actions of regulatory bodies with respect to allowed rates of return,      continued recovery of regulatory assets and proposed alternative      regulations;                          |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| §  | performance      and continued operation of the Vermont Yankee nuclear power      plant;                                                                                                        |
| §  | effects      of and changes in weather and economic conditions;                                                                                                                                 |
| §  | volatility      in wholesale power markets;                                                                                                                                                     |
| §  | our      ability to maintain or improve our current credit  ratings;                                                                                                                            |
| §  | the      operations of ISO-New England;                                                                                                                                                         |
| §  | changes      in the cost or availability of capital;                                                                                                                                            |
| §  | changes      in financial or regulatory accounting principles or policies imposed by      governing bodies;                                                                                     |
| §  | capital      market conditions, including price risk due to marketable securities held      as investments in trust for nuclear decommissioning, pension and      postretirement medical plans; |
| §  | changes      in the levels and timing of capital expenditures, including our      discretionary future investments in Transco;                                                                  |
| §  | our      ability to replace or renegotiate our long-term power supply      contracts;                                                                                                           |
| §  | our      ability to replace a mature workforce and retain qualified, skilled and      experienced personnel; and                                                                                |
| §  | other      presently unknown or unforeseenfactors.                                                                                                                                              |

----

----

|                               |   | Payments      Due by Period (dollars in millions) |   |
|------------------------------------|--------|---------------------------------------------------|--------|
|                               |   | Total                                             |   |   | Less      than 1 year (a) |   |   | 1 -      3 years |   |   | 3 -      5 years |   |   | After      5 years |   |
| Long-term      debt                |   | $                                                 | 176.0  |   |   | $ | 3.0 |   |   | $ | 5.5 |   |   | $ | 20.0 |   |   | $ | 147.5 |   |
| Interest      on long-term debt    |   | $                                                 | 169.3  |   |   | $ | 5.6 |   |   | $ | 21.8 |   |   | $ | 20.0 |   |   | $ | 121.9 |   |
| Notes      payable (b)             |   | $                                                 | 10.8   |   |   | $ | 0.0 |   |   | $ | 0.0 |   |   | $ | 0.0 |   |   | $ | 10.8 |   |
| Interest      on notes payable (b) |   | $                                                 | 2.3    |   |   | $ | 0.2 |   |   | $ | 0.7 |   |   | $ | 0.7 |   |   | $ | 0.7 |   |

| (a)   | Includes      obligations for the six month period July 1, 2008 through December 31,      2008. |
|-----------------|-------------------------------------------------------------------------------------------------|

| (b)   | Includes      two revenue bonds, one for $5.8 million due in 2013 and one for $5 million      due in 2015.  The bonds are floating rate, monthly demand      pollution-control bonds. The interest rates reset monthly and there is a      remarketing feature if the bonds are put for redemption.  These      bonds have historically been remarketed in the secondary market. The bonds      are callable by the issuer on any business day.  Although the      bonds are classified as current (payable within one year) under generally      accepted accounting principles in the United States ("U. S. GAAP"), the      bonds and related interest are shown in the table above as payments due on      the due dates. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                            |   |                       |   |   |    |   |
|---------------------------------|--------|----------------------------|--------|--------|---------|--------|
|                            |   | (dollars      in millions) |   |   | Percent |   |
| Common      stock equity        |   | $                          | 193.3  |   |    |   | 49 | % |
| Preferred      stock*           |   |                       | 10.1   |   |    |   | 2 | % |
| Long-term      debt*            |   |                       | 186.8  |   |    |   | 47 | % |
| Capital      lease obligations* |   |                       | 6.3    |   |    |   | 2 | % |
|                            |   | $                          | 396.5  |   |    |   | 100 | % |
| *      includes current portion |   |                       |   |   |    |   |   |   |

----

|                                                           |   | Three      Months Ended |   |   | Six      Months Ended |   |
|----------------------------------------------------------------|--------|-------------------------|--------|--------|-----------------------|--------|
| 2007      Earnings per diluted share                           |   | $                       | 0.04   |   |                  | $      | 0.58 |   |
|    Higher      operating revenues               |   |                    | 0.40   |   |                  |   | 0.66 |   |
|    Higher      equity in earnings of affiliates |   |                    | 0.21   |   |                  |   | 0.27 |   |
|    Higher      purchased power expense          |   |                    | (0.08  | )      |                  |   | (0.12 | ) |
|    Higher      transmission expense             |   |                    | (0.15  | )      |                  |   | (0.28 | ) |
|    Lower      (higher) other operating expenses |   |                    | 0.11   |   |                  |   | (0.02 | ) |
|    Other                                        |   |                    | (0.15  | )      |                  |   | (0.15 | ) |
| 2008      Earnings per diluted share                           |   | $                       | 0.38   |   |                  | $      | 0.94 |   |

----

|                                      |   |                             |   |   |                           |   |   |                         |   |   |           |   |   |   |    |   |   |   |    |   |   |   |    |   |
|-------------------------------------------|--------|----------------------------------|--------|--------|--------------------------------|--------|--------|------------------------------|--------|--------|----------------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|
|                                      |   | Three      months ending June 30 |   |   | Six      months ending June 30 |   |
|                                      |   | Revenues      (in thousands)     |   |   | mWh      Sales                 |   |   | Revenues      (in thousands) |   |   | mWh      Sales |   |
|                                      |   | 2008                             |   |   | 2007                           |   |   | 2008                         |   |   | 2007           |   |   | 2008   |    |   | 2007   |   |    | 2008   |   |   | 2007    |   |
|     Residential       |   | $                                | 31,190 |   |                           | $      | 30,744 |                         |   |   | 218,134        |   |   |   | 222,106 |   |   | $      | 69,702  |   |   | $      | 68,449  |   |   |   | 499,129 |   |   |   | 509,694 |   |
|     Commercial        |   |                             | 26,051 |   |                           |   | 25,615 |                         |   |   | 206,747        |   |   |   | 209,137 |   |   |   | 52,850  |   |   |   | 52,763  |   |   |   | 426,498 |   |   |   | 433,809 |   |
|     Industrial        |   |                             | 7,865  |   |                           |   | 8,321  |                         |   |   | 91,862         |   |   |   | 101,461 |   |   |   | 17,495  |   |   |   | 18,559  |   |   |   | 196,787 |   |   |   | 219,839 |   |
|     Other             |   |                             | 467    |   |                           |   | 462    |                         |   |   | 1,579          |   |   |   | 1,570   |   |   |   | 932     |   |   |   | 912     |   |   |   | 3,149 |   |   |   | 3,107 |   |
|     Total      Retail |   |                             | 65,573 |   |                           |   | 65,142 |                         |   |   | 518,322        |   |   |   | 534,274 |   |   |   | 140,979 |   |   |   | 140,683 |   |   |   | 1,125,563 |   |   |   | 1,166,449 |   |
| Resale      Sales                         |   |                             | 16,177 |   |                           |   | 10,044 |                         |   |   | 230,655        |   |   |   | 185,296 |   |   |   | 29,679  |   |   |   | 19,651  |   |   |   | 435,792 |   |   |   | 360,279 |   |
| Provision      for Rate Refund            |   |                             | -      |   |                           |   | (186   | )                            |   |   | -              |   |   |   | -       |   |   |   | (62     | )      |   |   | (373    | )      |   |   | - |   |   |   | - |   |
| Other      Operating Revenues             |   |                             | 2,737  |   |                           |   | 2,380  |                         |   |   | -              |   |   |   | -       |   |   |   | 5,115   |   |   |   | 4,115   |   |   |   | - |   |   |   | - |   |
| Total      Operating Revenues             |   | $                                | 84,487 |   |                           | $      | 77,380 |                         |   |   | 748,977        |   |   |   | 719,570 |   |   | $      | 175,711 |   |   | $      | 164,076 |   |   |   | 1,561,355 |   |   |   | 1,526,728 |   |

| §  | Retail      sales increased $0.4 million in the second quarter and $0.3 million in the      first six months due to higher average retail rates, largely offset by      lower sales volume.  This included: 1) an increase of $1.4      million in the second quarter and $2.6 million in the first six months due      to a 2.30 percent rate increase effective February 1, 2008; 2) an increase      of $0.6 million in the second quarter and $1.9 million in the first six      months as a result of a higher average unit price due to customer usage      mix; and 3) a decrease of $1.6 million in the second quarter and $4.2      million in the first six months due to a 3 percent and 3.5 percent      decrease in sales volume for the respective periods.  The sales      volume decrease reflects lower average usage resulting from a slowing      economy and energy conservation, including the effect of the loss of three      industrial customers due to plant closures.  Our business      follows the economic cycles of the customers we serve.  Economic      downturns typically lead to reductions in energy consumption and increased      conservation measures. |
|--------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| §  | Resale      sales increased $6.1 million in the second quarter, including $3.7 million      due to higher average prices and $2.4 million due to increased      volume.  Resale sales increased $10 million in the first six      months, including $5.9 million due to higher average prices and $4.1      million due to increased volume.  Resale sales were made at      higher average prices in 2008 compared to 2007 due to more favorable      prices on contract sales and overall higher market prices in ISO-New      England.  We had more power available for resale in 2008      compared to 2007 due to second quarter 2007 scheduled refueling outages at      Vermont Yankee and Millstone Unit #3 compared to nearly full production in      2008, and decreased retail sales volume.                                                                                                                                                                                                                                                                                                                                                                                                    |
| §  | The      provision for rate refund, which is a reduction in operating revenues, is      related to amounts that were included in retail rates in 2007 and January      2008 that were to be refunded to customers.  The provision for      refund ended with new retail rates effective February 1, 2008 that include      the customer refund.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| §  | Other      operating revenues increased $0.4 million in the second quarter resulting      from higher rates under our transmission tariffs and a $0.2 million      favorable true-up under the tariffs.  Other operating revenues      increased $1 million in the first six months for the same reasons and for      the sales of additional transmission capacity from our share of Phase I/II      transmission facility rights.  We began selling transmission      capacity in April 2007, and we have the ability to restrict the amount of      capacity assigned to the purchasers based on certain      conditions.  Revenue from these sales amounted to approximately      $1.4 million in calendar year 2007, and is estimated to be approximately      $1.8 million annually from 2008 through2010.                                                                                                                                                                                                                                                                                                                                                                                           |

----

|                               |   | Three      months ended June 30 |   |   | Six      months ended June 30 |   |
|------------------------------------|--------|---------------------------------|--------|--------|-------------------------------|--------|
|                               |   | Purchases                       |   |   |                          |   |   |   |   |   | Purchases |   |   |   |   |   |   |   |
|                               |   | (in      thousands)             |   |   | mWh      purchases            |   |   | (in      thousands) |   |   | mWh      purchases |   |
|                               |   | 2008                            |   |   | 2007                          |   |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |   | 2008 |   |   | 2007 |   |
| VYNPC      (a)                     |   | $                               | 15,721 |   |                          | $      | 11,116 |   |   |   | 377,349 |   |   |   | 266,715 |   |   | $ | 31,621 |   |   | $ | 26,570 |   |   |   | 770,921 |   |   |   | 653,711 |   |
| Hydro-Quebec                       |   |                            | 15,217 |   |                          |   | 15,922 |   |   |   | 212,605 |   |   |   | 240,941 |   |   |   | 31,637 |   |   |   | 32,655 |   |   |   | 463,694 |   |   |   | 508,483 |   |
| Independent      Power Producers   |   |                            | 7,137  |   |                          |   | 6,169 |   |   |   | 54,926 |   |   |   | 49,156 |   |   |   | 15,041 |   |   |   | 12,355 |   |   |   | 111,232 |   |   |   | 93,800 |   |
| Subtotal      long-term contracts  |   |                            | 38,075 |   |                          |   | 33,207 |   |   |   | 644,880 |   |   |   | 556,812 |   |   |   | 78,299 |   |   |   | 71,580 |   |   |   | 1,345,847 |   |   |   | 1,255,994 |   |
| Other      purchases               |   |                            | 2,992  |   |                          |   | 7,075 |   |   |   | 22,572 |   |   |   | 98,528 |   |   |   | 4,736 |   |   |   | 9,844 |   |   |   | 39,098 |   |   |   | 130,245 |   |
| SFAS      No. 5 Loss amortizations |   |                            | (299   | )      |                          |   | (299 | ) |   |   | - |   |   |   | - |   |   |   | (598 | ) |   |   | (598 | ) |   |   | - |   |   |   | - |   |
| Nuclear      decommissioning       |   |                            | 549    |   |                          |   | 701 |   |   |   | - |   |   |   | - |   |   |   | 1,117 |   |   |   | 1,385 |   |   |   | - |   |   |   | - |   |
| Other                              |   |                            | (35    | )      |                          |   | (865 | ) |   |   | - |   |   |   | - |   |   |   | 634 |   |   |   | (132 | ) |   |   | - |   |   |   | - |   |
| Total      purchased power         |   | $                               | 41,282 |   |                          | $      | 39,819 |   |   |   | 667,452 |   |   |   | 655,340 |   |   | $ | 84,188 |   |   | $ | 82,079 |   |   |   | 1,384,945 |   |   |   | 1,386,239 |   |
|                               |   |                            |   |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| §  | Purchases      under long-term contracts increased $4.9 million in the second quarter and      $6.7 million in the first six months compared to the same periods in      2007.  The increases for both periods largely resulted from      purchases of our share of Vermont Yankee plant output.  The      plant had a scheduled refueling outage during the second quarter of 2007      compared to nearly full production in 2008.  Higher output from      Independent Power Producers, most of which are hydro facilities, was      another source of increased purchased power during both      periods.  These were partially offset by fewer scheduled      deliveries from Hydro-Quebec because the annual load factor under the      contract decreased from 80 percent to 75 percent beginning November 1,      2007. |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| §  | Other      purchases decreased $4.1 million in the second quarter and $5.1 million in      the first six months largely due to replacement power purchases during the      second quarter 2007 Vermont Yankee scheduled refueling      outage.  We also had fewer short-term purchases in 2008 compared      to 2007 because our retail load was less and we had more power available      from Independent Power Producers and our owned  generation.                                                                                                                                                                                                                                                                                                                                                                                                        |
| §  | Nuclear      decommissioning costs are associated with our ownership interests in Maine      Yankee, Connecticut Yankee and Yankee Atomic.  These costs are      based on FERC-approved tariffs.  The costs decreased in the      second quarter and first six months largely due to lower revenue      requirements for Connecticut Yankee.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| §  | Other      costs include net accounting deferrals and amortizations for Millstone      Unit #3 scheduled refueling outages, and Vermont Yankee-related      deferrals.  These deferrals and amortizations are based on      PSB-approved regulatory accounting.  The increases in both      periods largely resulted from deferred costs in the second quarter of 2007      for a scheduled refueling outage at Millstone Unit #3 versus amortizations      in 2008.                                                                                                                                                                                                                                                                                                                                                                                |

----

| §   | Employee-related      benefits increased $0.4 million, including a $0.9 million increase in      active medical costs based on an increase in expected claims, a $0.3      million increase in reserves for workers' compensation claims and other      benefit costs, partially offset by a $0.8 million decrease in pension      costs resulting from lower service and interest costs and higher expected      return on assets as of the September 30, 2007 measurement      period. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Net      regulatory amortizations increased $0.3 million largely due to      amortization of certain regulatory assets based on retail rates effective      February 1, 2008. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Reserve      for uncollectible accounts increased $0.1 million resulting from a $0.6      million increase in 2008 largely driven by economic conditions, offset by      a $0.5 million write off in 2007 for one large  customer. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Other      miscellaneous offsetting items increased $0.2  million. |
|--------------------|--------------------------------------------------------------------|

----

----

Qualitative Disclosures 

|                                                                                   |   | Forward   |    |   | Forward   |   |   |             |   |   |    |   |
|----------------------------------------------------------------------------------------|--------|-----------|---------|--------|-----------|--------|--------|------------------|--------|--------|---------|--------|
|                                                                                   |   | Sales     |    |   | Purchase  |   |   | Hydro-Quebec     |   |   |    |   |
|                                                                                   |   | Contracts |    |   | Contracts |   |   | Sellback      #3 |   |   | Total   |   |
| Total      fair value at December 31, 2007 - unrealized loss                           |   | $         | (2,037  | )      |      | $      | (481   | )                |   | $      | (4,592  | )      |   | $ | (7,110 | ) |
| Plus      new contracts entered into during the period                                 |   |      | (1,270  | )      |      |   | 33     |             |   |   | 0       |   |   |   | (1,237 | ) |
| Less      amounts settled during the period                                            |   |      | 4,167   |   |      |   | (33    | )                |   |   | 0       |   |   |   | 4,134 |   |
| Change      in fair value during the period                                            |   |      | (9,649  | )      |      |   | 3,771  |             |   |   | (3,814  | )      |   |   | (9,692 | ) |
| Total      fair value at June 30, 2008 - unrealized (loss) gain, net                   |   | $         | (8,789  | )      |      | $      | 3,290  |             |   | $      | (8,406  | )      |   | $ | (13,905 | ) |
|                                                                                   |   |      |    |   |      |   |   |             |   |   |    |   |   |   |   |   |
| Estimated      fair value at June 30, 2008 for changes in projected market      price: |   |      |    |   |      |   |   |             |   |   |    |   |   |   |   |   |
|    10      percent increase                                             |   | $         | (12,027 | )      |      | $      | 4,204  |             |   | $      | (13,448 | )      |   | $ | (21,271 | ) |
|    10      percent decrease                                             |   | $         | (5,545  | )      |      | $      | 2,376  |             |   | $      | (3,363  | )      |   | $ | (6,532 | ) |

 and Procedures

----

| PART      II - OTHER INFORMATION  |
|----------------------------------------|
| Item 1.                                | Legal      Proceedings. The      Company is involved in legal and administrative proceedings in the normal      course of business and does not believe that the ultimate outcome of these      proceedings will have a material adverse effect on its financial position      or results of operations.  |
| Item 1A.                               | Risk      Factors. In      addition to the other information set forth in this report, you should      carefully consider the factors discussed in Part I "Item 1A. Risk      Factors", in our Annual Report on Form 10-K for the year ended December      31, 2007, which could materially affect our business, financial condition      or future results. The risks described in our Annual Report on Form 10-K      are not the only risks facing our Company.  Additional risks and      uncertainties not currently known to us or that we currently deem to be      immaterial also may materially adversely affect our business, financial      condition and/or operating results.  |
| Item 4.                                | Submission      of Matters to a Vote of Security Holders.  |
|                                   | (a) | The      registrant held its Annual Meeting of Stockholders on May 6,      2008.  |
|                                   | (b) | Directors      elected whose terms will expire in year 2011.  |
|                                   |   |   | Votes      FOR | Votes      WITHHELD |
|                                   |   | Douglas      J. Wacek | 8,370,825 | 319,809 |
|                                   |   | Robert      H. Young  | 8,359,646 | 330,989 |
|                                   |   | Other      Directors whose terms will expire in year 2010.  |
|                                   |   | Bruce      M. LismanJanice      L. ScitesWilliam      J. Stenger  |   |   |
|                                   |   | Other      Directors whose terms will expire in year 2009.  |
|                                   |   | Robert      L. BarnettRobert      G. ClarkeMary      Alice McKenzieWilliam      R. Sayre  |   |   |
|                                   | (c) | Approval      of Amended 2002 Long-Term Incentive Plan.  |
|                                   |   | ForAgainstAbstainBroker      Non-vote  | 5,795,889494,1681,026,5751,374,002 |
|                                   | (d) | Ratification      of the appointment of Deloitte & Touche LLP as independent registered      public accountants for fiscal year ending December 31, 2008.  |
|                                   |   | ForAgainstAbstain  | 8,548,71172,05469,867  |
|                                   | (e) | Stockholder      proposal requesting the Board of Directors take steps to      declassify.  |
|                                   |   | ForAgainstAbstainBroker      Non-vote | 5,706,222566,405719,9041,698,103 |

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| Item 5. | Other      Information. On      August 4, 2008 the Board of Directors adopted changes to the existing      Officers' Supplemental Retirement and Deferred Compensation Plan ("SERP")      and the Deferred Compensation Plan for Officers and Directors of Central      Vermont Public Service Corporation ("Deferred Compensation Plan") to      comply with the new statutory rules under Section 409A of the Internal      Revenue Code of 1986, as amended, and to preserve the flexibility of      "grandfathered" participants enjoyed pre-409A (also known as bifurcating      the plans). Section      409A alters the income tax treatment of compensation that is regarded as      deferred under a nonqualified deferred compensation plans and      arrangements.  Section 409A also imposes other requirements on      such plans and arrangements. · 409A      Compliance for the SERP Plan includes:o Decoupling      SERP payment elections from basic pension plan payment      electionso Bifurcating      plan to create flexibility for "grandfathered" participantso New      benefit election form created for all participants to elect time and      method of paymento "Grandfathered"      participants that believe they will take their benefit in a lump-sum must      complete a form for their "grandfathered" benefit as well · 409A      Compliance for the Deferred Compensation Plan includes:o Bifurcating      plan to create flexibility for "grandfathered" participantso For      "grandfathered" participants, separately account for the pre-409A funds      (pre-2005 deferrals) as well as all earnings thereono For      "grandfathered" participants, complete new election form for pre-409A      funds to designate time and method of payment  |
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| Item 6. | Exhibits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|    | (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | List      of Exhibits  |   |
|    | 4.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Forty-Sixth      Supplemental Indenture, dated as of May 1, 2008, from the Company to U.S.      Bank National Association, as trustee (incorporated by reference to      Exhibit 4.7 to the Company’s Form 8-K filed with the SEC on May 15,      2008).  |   |
|    | 4.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Bond      Purchase Agreement, dated as of May 15, 2008, among the Company and the      purchasers listed on Schedule A thereto (incorporated by reference to      Exhibit 4.8 to the Company’s Form 8-K filed with the SEC on May 15,      2008).  |   |
|    | A      10.3.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Officers'      Supplemental Retirement and Deferred Compensation Plan, Amended and      Restated August 4, 2008, With An Effective Date of January 1,      2008.  |   |
|    | A      10.7.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Deferred      Compensation Plan for Officers and Directors of Central Vermont Public      Service Corporation Amended and Restated August 4, 2008, With An Effective      Date of January 1, 2005.  |   |
|    | 31.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Certification      of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002.  |   |
|    | 31.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Certification      of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley      Act of 2002.  |   |
|    | 32.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Certification      of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted      Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.  |   |
|    | 32.2                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | Certification      of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted      Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |   |

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| SIGNATURE      Pursuant      to the requirements of the Securities Exchange Act of 1934, the registrant      has duly caused this report to be signed on its behalf by the undersigned      thereunto duly authorized. |
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|   | CENTRAL      VERMONT PUBLIC SERVICE CORPORATION                                                                                                                                                                                                                                                                                                                                                                    |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (Registrant)                                                                                                                                                                                                                                                                                                                                                                                                  |
| By     |  /s/ Pamela J.      Keefe                                                               |
|   | Pamela      J. KeefeVice      President, Chief Financial Officer, and  Treasurer                                                                                                                                                                                                                                                                                                                                   |

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