----

| 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   March      31, 2009                                                                                                                 |
| 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 (800)      649-2877                |
| N/A(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 has submitted electronically and      posted on its corporate Web site, if any, every Interactive Data File      required to be submitted and posted pursuant to Rule 405 of Regulation S-T      (§232.405 of this chapter) during the preceding 12 months (or for such      shorter period that the registrant was required to submit and post such      files).  Yes ¨ 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 April 30, 2009      there were outstanding 11,653,134 shares of Common Stock, $6 Par      Value.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

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| CENTRAL      VERMONT PUBLIC SERVICE CORPORATION      |                                                                                             |
|------------------------------------------------------|--------------------------------------------------------------------------------------------------|
| Form      10-Q for Period Ended March 31, 2009       |                                                                                             |
|                                                 |                                                                                             |
| 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      Equity                                |   |   | 7 |   |
|                                                 | Notes to Condensed Consolidated Financial      Statements                                        |   |   | 8 |   |
|                                                 |                                                                                             |   |   |   |   |
| Item 2.                                              | Management’s Discussion and Analysis of Financial Condition      and Results of Operations |   |   | 23 |   |
|                                                 |                                                                                             |   |   |   |   |
| Item 3.                                              | Quantitative and Qualitative Disclosures about Market Risk      Controls and Procedures          |   |   | 32 |   |
|                                                 |                                                                                             |   |   |   |   |
| Item 4.                                              | Controls and Procedures                                                                          |   |   | 33 |   |
|                                                 |                                                                                             |   |   |   |   |
| PART II.   Other      Information:    |                                                                                             |   |   |   |
|                                                 |                                                                                             |   |   |   |   |
| Item 1.                                              | Legal Proceedings                                                                                |   |   | 34 |   |
|                                                 |                                                                                             |   |   |   |   |
| Item 1A.                                             | Risk Factors                                                                                     |   |   | 34 |   |
|                                                 |                                                                                             |   |   |   |   |
| Item 6.                                              | Exhibits                                                                                         |   |   | 34 |   |
|                                                 |                                                                                             |   |   |   |   |
| SIGNATURES                                           |                                                                                             |   |   | 35 |   |

----

PART I. FINANCIAL 

Item1. 

| CENTRAL VERMONT PUBLIC SERVICE    CORPORATION                                                               |   |
|-------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENTS OF INCOME                                                            |   |
| (dollars      in thousands, except per share data)                                                          |   |
| (unaudited)                                                                                                 |   |
|                                                                                                        |   |   |   |   |   |   |
|                                                                                                        |   | Three      months ended March 31 |   |
|                                                                                                        |   | 2009 |   |   | 2008 |   |
| Operating      Revenues                                                                                     |   | $ | 90,727 |   |   | $ | 91,224 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |
| Operating      Expenses                                                                                     |   |   |   |   |   |   |   |   |
| Purchased      Power - affiliates                                                                           |   |   | 16,062 |   |   |   | 16,468 |   |
| Purchased      Power                                                                                        |   |   | 25,548 |   |   |   | 26,438 |   |
| Production                                                                                                  |   |   | 3,220 |   |   |   | 3,342 |   |
| Transmission      - affiliates                                                                              |   |   | 2,481 |   |   |   | 3,389 |   |
| Transmission      - other                                                                                   |   |   | 5,695 |   |   |   | 4,474 |   |
| Other      operation                                                                                        |   |   | 15,533 |   |   |   | 14,745 |   |
| Maintenance                                                                                                 |   |   | 4,492 |   |   |   | 6,169 |   |
| Depreciation                                                                                                |   |   | 4,029 |   |   |   | 3,869 |   |
| Taxes      other than income                                                                                |   |   | 4,168 |   |   |   | 4,039 |   |
| Income      tax expense                                                                                     |   |   | 2,876 |   |   |   | 1,859 |   |
| Total      Operating Expenses                                                                               |   |   | 84,104 |   |   |   | 84,792 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |
| Utility      Operating Income                                                                               |   |   | 6,623 |   |   |   | 6,432 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |
| Other      Income                                                                                           |   |   |   |   |   |   |   |   |
| Equity      in earnings of affiliates                                                                       |   |   | 4,445 |   |   |   | 4,185 |   |
| Allowance      for equity funds during construction                                                         |   |   | 150 |   |   |   | 17 |   |
| Other      income                                                                                           |   |   | 733 |   |   |   | 767 |   |
| Other      deductions                                                                                       |   |   | (770 | ) |   |   | (1,308 | ) |
| Income      tax expense                                                                                     |   |   | (1,433 | ) |   |   | (1,425 | ) |
| Total      Other Income                                                                                     |   |   | 3,125 |   |   |   | 2,236 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |
| Interest      Expense                                                                                       |   |   |   |   |   |   |   |   |
| Interest      on long-term debt                                                                             |   |   | 2,811 |   |   |   | 1,937 |   |
| Other      interest                                                                                         |   |   | 119 |   |   |   | 831 |   |
| Allowance      for borrowed funds during construction                                                       |   |   | (54 | ) |   |   | (8 | ) |
| Total      Interest Expense                                                                                 |   |   | 2,876 |   |   |   | 2,760 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |
| Net      Income                                                                                             |   |   | 6,872 |   |   |   | 5,908 |   |
| Dividends      declared on preferred stock                                                                  |   |   | 92 |   |   |   | 92 |   |
| Earnings      available for common stock                                                                    |   | $ | 6,780 |   |   | $ | 5,816 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |
| Per      Common Share Data:                                                                                 |   |   |   |   |   |   |   |   |
| Basic      earnings per share                                                                               |   | $ | 0.58 |   |   | $ | 0.57 |   |
| Diluted      earnings per share                                                                             |   | $ | 0.58 |   |   | $ | 0.56 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |
| Average      shares of common stock outstanding - basic                                                     |   |   | 11,602,354 |   |   |   | 10,275,505 |   |
| Average      shares of common stock outstanding - diluted                                                   |   |   | 11,655,175 |   |   |   | 10,377,034 |   |
|                                                                                                        |   |   |   |   |   |   |   |   |
| Dividends      declared per share of common stock                                                           |   | $ | 0.46 |   |   | $ | 0.46 |   |
| The      accompanying notes are an integral part of these condensed consolidated      financial statements. |   |

----

| CENTRAL VERMONT PUBLIC SERVICE CORPORATION                                                                                                                  |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME                                                                                              |   |
| (dollars      in thousands)                                                                                                                                 |   |
| (unaudited)                                                                                                                                                 |   |
|                                                                                                                                                        |   | Three      months ended March 31 |   |
|                                                                                                                                                        |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                        |   |   |   |   |   |   |
| Net      Income                                                                                                                                             |   | $ | 6,872 |   |   | $ | 5,908 |   |
|                                                                                                                                                        |   |   |   |   |   |   |   |   |
| 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 $0 and $0                                                     |   |   | 1 |   |   |   | 1 |   |
|         Prior      service cost, net of income taxes of $3 and $3                                                   |   |   | 3 |   |   |   | 2 |   |
|                                                                                                                                                        |   |   | 4 |   |   |   | 3 |   |
|   Portion      reclassified due to adoption of SFAS 158 measurement    provision,      included in retained earnings:         |   |   |   |   |   |   |   |   |
|         Prior      service cost, net of income taxes of $0 and $2                                                   |   |   | 0 |   |   |   | 4 |   |
|                                                                                                                                                        |   |   | 0 |   |   |   | 4 |   |
|                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Comprehensive      income adjustments                                                                                                                       |   |   | 4 |   |   |   | 7 |   |
|                                                                                                                                                        |   |   |   |   |   |   |   |   |
| Total      comprehensive income                                                                                                                             |   | $ | 6,876 |   |   | $ | 5,915 |   |

----

| CENTRAL VERMONT PUBLIC SERVICE CORPORATION                                                                                                                       |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED BALANCE SHEETS                                                                                                                       |   |
| (dollars      in thousands, except share data)                                                                                                                   |   |
| (unaudited)                                                                                                                                                      |   |
|                                                                                                                                                             |   |   |   |   |   |   |
|                                                                                                                                                             |   | March      31, 2009 |   |   | December      31, 2008 |   |
| ASSETS                                                                                                                                                           |   |   |   |   |   |   |
| Utility      plant                                                                                                                                               |   |   |   |   |   |   |
|   Utility      plant, at original cost                                                                                                                 |   | $ | 571,858 |   |   | $ | 554,506 |   |
|   Less      accumulated depreciation                                                                                                                   |   |   | 248,328 |   |   |   | 244,219 |   |
|   Utility      plant, at original cost, net of accumulated depreciation                                                                                |   |   | 323,530 |   |   |   | 310,287 |   |
|   Property      under capital leases, net                                                                                                              |   |   | 5,901 |   |   |   | 6,133 |   |
|   Construction      work-in-progress                                                                                                                   |   |   | 14,340 |   |   |   | 24,632 |   |
|   Nuclear      fuel, net                                                                                                                               |   |   | 1,443 |   |   |   | 1,475 |   |
| Total      utility plant, net                                                                                                                                    |   |   | 345,214 |   |   |   | 342,527 |   |
|                                                                                                                                                             |   |   |   |   |   |   |   |   |
| Investments      and other assets                                                                                                                                |   |   |   |   |   |   |   |   |
|   Investments      in affiliates                                                                                                                       |   |   | 104,158 |   |   |   | 102,232 |   |
|   Non-utility      property, less accumulated depreciation    ($3,663      in 2009 and $3,657 in 2008)                             |   |   | 1,816 |   |   |   | 1,786 |   |
|   Millstone      decommissioning trust fund                                                                                                            |   |   | 3,712 |   |   |   | 4,203 |   |
|   Other                                                                                                                                                |   |   | 5,395 |   |   |   | 5,469 |   |
| Total      investments and other assets                                                                                                                          |   |   | 115,081 |   |   |   | 113,690 |   |
|                                                                                                                                                             |   |   |   |   |   |   |   |   |
| Current      assets                                                                                                                                              |   |   |   |   |   |   |   |   |
|   Cash      and cash equivalents                                                                                                                       |   |   | 13,544 |   |   |   | 6,722 |   |
|   Restricted      cash                                                                                                                                 |   |   | 5,621 |   |   |   | 3,636 |   |
|   Special      deposits                                                                                                                                |   |   | 6 |   |   |   | 1,006 |   |
|   Accounts      receivable, less allowance for uncollectible      accounts      ($2,522      in 2009 and $2,184 in 2008) |   |   | 28,802 |   |   |   | 23,176 |   |
|   Accounts      receivable - affiliates, less allowance for uncollectible    accounts ($0      in 2009 and 2008)              |   |   | 78 |   |   |   | 76 |   |
|   Unbilled      revenues                                                                                                                               |   |   | 15,418 |   |   |   | 18,546 |   |
|   Materials      and supplies, at average cost                                                                                                         |   |   | 6,088 |   |   |   | 6,299 |   |
|   Prepayments                                                                                                                                          |   |   | 6,958 |   |   |   | 17,367 |   |
|   Power-related      derivatives                                                                                                                       |   |   | 15,527 |   |   |   | 12,758 |   |
|   Other      current assets                                                                                                                            |   |   | 1,433 |   |   |   | 1,269 |   |
|   Total current      assets                                                                                                                            |   |   | 93,475 |   |   |   | 90,855 |   |
|                                                                                                                                                             |   |   |   |   |   |   |   |   |
| Deferred      charges and other assets                                                                                                                           |   |   |   |   |   |   |   |   |
|   Regulatory      assets                                                                                                                               |   |   | 60,729 |   |   |   | 63,474 |   |
|   Other      deferred charges - regulatory                                                                                                             |   |   | 8,769 |   |   |   | 9,980 |   |
|   Other      deferred charges and other assets                                                                                                         |   |   | 4,228 |   |   |   | 5,467 |   |
|   Power-related      derivatives                                                                                                                       |   |   | 0 |   |   |   | 133 |   |
| Total      deferred charges and other assets                                                                                                                     |   |   | 73,726 |   |   |   | 79,054 |   |
|                                                                                                                                                             |   |   |   |   |   |   |   |   |
| TOTAL      ASSETS                                                                                                                                                |   | $ | 627,496 |   |   | $ | 626,126 |   |

----

| CENTRAL      VERMONT PUBLIC SERVICE CORPORATION                                                                                                                                                                                                                    |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED BALANCE SHEETS                                                                                                                                                                                                                         |   |
| (dollars      in thousands, except share data)                                                                                                                                                                                                                     |   |
| (unaudited)                                                                                                                                                                                                                                                        |   |
|                                                                                                                                                                                                                                                               |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                               |   | March      31, 2009 |   |   | December      31, 2008 |   |
| CAPITALIZATION      AND LIABILITIES                                                                                                                                                                                                                                |   |   |   |   |   |   |
| Capitalization                                                                                                                                                                                                                                                     |   |   |   |   |   |   |
|   Common      stock, $6 par value, 19,000,000 shares authorized, 13,811,970         issued and 11,648,948 outstanding at March 31, 2009 and      13,750,717         issued and 11,574,825 outstanding at December 31, 2008 |   | $ | 82,872 |   |   | $ | 82,504 |   |
|   Other      paid-in capital                                                                                                                                                                                                                             |   |   | 71,552 |   |   |   | 71,489 |   |
|   Accumulated      other comprehensive loss                                                                                                                                                                                                              |   |   | (224 | ) |   |   | (228 | ) |
|   Treasury      stock, at cost, 2,163,022 shares at March 31, 2009         and 2,175,892 shares at December 31, 2008                                                                                                                 |   |   | (49,208 | ) |   |   | (49,501 | ) |
|   Retained      earnings                                                                                                                                                                                                                                 |   |   | 116,655 |   |   |   | 115,215 |   |
| Total      common stock equity                                                                                                                                                                                                                                     |   |   | 221,647 |   |   |   | 219,479 |   |
|   Preferred      and preference stock not subject to mandatory redemption                                                                                                                                                                                |   |   | 8,054 |   |   |   | 8,054 |   |
|   Preferred      stock subject to mandatory redemption                                                                                                                                                                                                   |   |   | 0 |   |   |   | 1,000 |   |
|   Long-term      debt                                                                                                                                                                                                                                    |   |   | 167,500 |   |   |   | 167,500 |   |
|   Capital      lease obligations                                                                                                                                                                                                                         |   |   | 4,934 |   |   |   | 5,173 |   |
| Total      capitalization                                                                                                                                                                                                                                          |   |   | 402,135 |   |   |   | 401,206 |   |
|                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Current      liabilities                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
|   Current      portion of preferred stock subject to mandatory redemption                                                                                                                                                                                |   |   | 1,000 |   |   |   | 1,000 |   |
|   Current      portion of long-term debt                                                                                                                                                                                                                 |   |   | 5,450 |   |   |   | 5,450 |   |
|   Accounts      payable                                                                                                                                                                                                                                  |   |   | 7,896 |   |   |   | 3,549 |   |
|   Accounts      payable - affiliates                                                                                                                                                                                                                     |   |   | 11,295 |   |   |   | 11,338 |   |
|   Notes      payable                                                                                                                                                                                                                                     |   |   | 10,827 |   |   |   | 10,800 |   |
|   Nuclear      decommissioning costs                                                                                                                                                                                                                     |   |   | 1,363 |   |   |   | 1,431 |   |
|   Power-related      derivatives                                                                                                                                                                                                                         |   |   | 0 |   |   |   | 2 |   |
|   Other      current liabilities                                                                                                                                                                                                                         |   |   | 29,772 |   |   |   | 33,645 |   |
| Total      current liabilities                                                                                                                                                                                                                                     |   |   | 67,603 |   |   |   | 67,215 |   |
|                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Deferred      credits and other liabilities                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|   Deferred      income taxes                                                                                                                                                                                                                             |   |   | 42,889 |   |   |   | 45,314 |   |
|   Deferred      investment tax credits                                                                                                                                                                                                                   |   |   | 2,871 |   |   |   | 2,962 |   |
|   Nuclear      decommissioning costs                                                                                                                                                                                                                     |   |   | 8,232 |   |   |   | 8,618 |   |
|   Asset      retirement obligations                                                                                                                                                                                                                      |   |   | 3,353 |   |   |   | 3,302 |   |
|   Accrued      pension and benefit obligations                                                                                                                                                                                                           |   |   | 52,145 |   |   |   | 51,211 |   |
|   Power-related      derivatives                                                                                                                                                                                                                         |   |   | 4,235 |   |   |   | 4,069 |   |
|   Other      deferred credits - regulatory                                                                                                                                                                                                               |   |   | 20,179 |   |   |   | 17,696 |   |
|   Other      deferred credits and other liabilities                                                                                                                                                                                                      |   |   | 23,854 |   |   |   | 24,533 |   |
| Total      deferred credits and other liabilities                                                                                                                                                                                                                  |   |   | 157,758 |   |   |   | 157,705 |   |
|                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Commitments      and contingencies                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| TOTAL      CAPITALIZATION AND LIABILITIES                                                                                                                                                                                                                          |   | $ | 627,496 |   |   | $ | 626,126 |   |

----

| CENTRAL VERMONT PUBLIC SERVICE CORPORATION                                                                                                                                                                                          |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                                                                                                                                |   |
| (dollars      in thousands)                                                                                                                                                                                                         |   |
| (unaudited)                                                                                                                                                                                                                         |   |
|                                                                                                                                                                                                                                |   | Three      months ended March 31 |   |
|                                                                                                                                                                                                                                |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                                                                                                |   |   |   |   |   |   |
| OPERATING      ACTIVITIES                                                                                                                                                                                                           |   |   |   |   |   |   |
| Net      income                                                                                                                                                                                                                     |   | $ | 6,872 |   |   | $ | 5,908 |   |
| Adjustments      to reconcile net income to net cash provided  by      operating activities:                                                                                                                              |   |   |   |   |   |   |   |   |
|      Equity      in earnings of affiliates                                                                                                                                                                 |   |   | (4,445 | ) |   |   | (4,185 | ) |
|      Distributions      received from affiliates                                                                                                                                                           |   |   | 2,519 |   |   |   | 1,330 |   |
|      Depreciation                                                                                                                                                                                          |   |   | 4,029 |   |   |   | 3,869 |   |
|      Deferred      income taxes and investment tax credits                                                                                                                                                 |   |   | (116 | ) |   |   | (200 | ) |
|      Regulatory      and other amortization, net                                                                                                                                                           |   |   | 249 |   |   |   | 149 |   |
|      Non-cash      employee benefit plan costs                                                                                                                                                             |   |   | 1,597 |   |   |   | 1,445 |   |
|      Other      non-cash expense and (income), net                                                                                                                                                         |   |   | 1,617 |   |   |   | 1,368 |   |
|      Changes      in assets and liabilities:                                                                                                                                                               |   |   |   |   |   |   |   |   |
|          Increase      in accounts receivable and unbilled revenues                                                                                                                    |   |   | (3,082 | ) |   |   | (1,350 | ) |
|          Increase      (decrease) in accounts payable                                                                                                                                  |   |   | 4,245 |   |   |   | (2,052 | ) |
|          Decrease      in prepaid income taxes                                                                                                                                         |   |   | 10,619 |   |   |   | 3,098 |   |
|               Decrease in other current    assets                                                                                                                                           |   |   | 203 |   |   |   | 702 |   |
|          (Increase)      decrease in special deposits and restricted cash              for      power collateral |   |   | (1,985 | ) |   |   | 62 |   |
|          Employee      benefit plan funding                                                                                                                                            |   |   | (275 | ) |   |   | (586 | ) |
|          (Decrease)      increase in other current liabilities                                                                                                                         |   |   | (7,332 | ) |   |   | 1,848 |   |
|          Increase      (decrease) in other long-term liabilities and other                                                                                                             |   |   | 413 |   |   |   | (184 | ) |
| Net      cash provided by operating activities                                                                                                                                                                                      |   |   | 15,128 |   |   |   | 11,222 |   |
| INVESTING      ACTIVITIES                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
|      Construction      and plant expenditures                                                                                                                                                              |   |   | (5,805 | ) |   |   | (7,267 | ) |
|      Investments      in available-for-sale securities                                                                                                                                                     |   |   | (316 | ) |   |   | (202 | ) |
|      Proceeds      from sale of available-for-sale securities                                                                                                                                              |   |   | 249 |   |   |   | 135 |   |
|      Return      of capital from investments in affiliates                                                                                                                                                 |   |   | 0 |   |   |   | 96 |   |
|      Other      investing activities                                                                                                                                                                       |   |   | (65 | ) |   |   | (44 | ) |
| Net      cash used by investing activities                                                                                                                                                                                          |   |   | (5,937 | ) |   |   | (7,282 | ) |
| FINANCING      ACTIVITIES                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
|      Proceeds      from issuance of common stock                                                                                                                                                           |   |   | 687 |   |   |   | 1,180 |   |
|      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 |   |
|      Common      and preferred dividends paid                                                                                                                                                              |   |   | (2,758 | ) |   |   | (2,453 | ) |
|      Proceeds      from borrowings under revolving credit facility                                                                                                                                         |   |   | 11,325 |   |   |   | 9,300 |   |
|      Repayments      under revolving credit facility                                                                                                                                                       |   |   | (11,298 | ) |   |   | (9,300 | ) |
|      Common      stock offering costs                                                                                                                                                                      |   |   | (54 | ) |   |   | 0 |   |
|      Other      financing activities                                                                                                                                                                       |   |   | (271 | ) |   |   | (105 | ) |
| Net      cash used by financing activities                                                                                                                                                                                          |   |   | (2,369 | ) |   |   | (1,378 | ) |
| Net      increase in cash and cash equivalents                                                                                                                                                                                      |   |   | 6,822 |   |   |   | 2,562 |   |
| Cash      and cash equivalents at beginning of the period                                                                                                                                                                           |   |   | 6,722 |   |   |   | 3,803 |   |
| Cash      and cash equivalents at end of the period                                                                                                                                                                                 |   | $ | 13,544 |   |   | $ | 6,365 |   |

----

| CENTRAL VERMONT PUBLIC SERVICE    CORPORATION                                       |   |
|-------------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENT OF CHANGES IN COMMON STOCK EQUITY             |   |
| (in      thousands, except share data)                                              |   |
| (unaudited)                                                                         |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                |   | Common      Stock |   |   |   |   |   |   |   |   | Treasury      Stock |   |   |   |   |   |   |   |
|                                                                                |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                |   |   |   |   |   |   |   | Other |   |   | Other |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                |   | Shares |   |   |   |   |   | Paid-in |   |   | Comprehensive |   |   |   |   |   |   |   |   | Retained |   |   |   |   |
|                                                                                |   | Issued |   |   | Amount |   |   | Capital |   |   | Loss |   |   | Share |   |   | Amount |   |   | Earnings |   |   | Total |   |
| Balance,      December 31, 2008                                                     |   |   | 13,750,717 |   |   | $ | 82,504 |   |   | $ | 71,489 |   |   | $ | (228 | ) |   |   | 2,175,892 |   |   | $ | (49,501 | ) |   | $ | 115,215 |   |   | $ | 219,479 |   |
| Net      income                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 6,872 |   |   |   | 6,872 |   |
| Other      comprehensive income                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 4 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 4 |   |
| Common      Stock Issuance,     net      of issuance costs |   |   |   |   |   |   |   |   |   |   | (54 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (54 | ) |
| Dividend      reinvestment plan                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (12,870 | ) |   |   | 293 |   |   |   |   |   |   |   | 293 |   |
| Stock      options exercised                                                        |   |   | 36,160 |   |   |   | 217 |   |   |   | 284 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 501 |   |
| Share-based      compensation:                                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      & nonvested shares                                                  |   |   |   |   |   |   |   |   |   |   | 1 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1 |   |
| Performance      share plans                                                        |   |   | 25,093 |   |   |   | 151 |   |   |   | (187 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (36 | ) |
| Dividends      declared:                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      - $0.46 per share                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (5,337 | ) |   |   | (5,337 | ) |
| Cumulative      non-redeemable    preferred      stock          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (92 | ) |   |   | (92 | ) |
| Amortization      of preferred stock    issuance      expense   |   |   |   |   |   |   |   |   |   |   | 3 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 3 |   |
| Gain      (Loss) on capital stock                                                   |   |   |   |   |   |   |   |   |   |   | 16 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (3 | ) |   |   | 13 |   |
| Balance,      March 31, 2009                                                        |   |   | 13,811,970 |   |   | $ | 82,872 |   |   | $ | 71,552 |   |   | $ | (224 | ) |   |   | 2,163,022 |   |   | $ | (49,208 | ) |   | $ | 116,655 |   |   | $ | 221,647 |   |

----

NOTES TO 

----

----

|                                                             |   | 2009   |       |   | 2008   |   |
|------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Numerator for basic and diluted      EPS:                        |   |   |       |   |   |   |
| Net      income                                                  |   | $      | 6,872      |   |   | $      | 5,908 |   |
| Dividends      declared on preferred stock                       |   |   | (92        | )      |   |   | (92 | ) |
| Net      income available for common stock                       |   | $      | 6,780      |   |   | $      | 5,816 |   |
|                                                             |   |   |       |   |   |   |   |   |
| Denominators for basic and diluted      EPS:                     |   |   |       |   |   |   |   |   |
| Weighted-average      basic shares of common stock outstanding   |   |   | 11,602,354 |   |   |   | 10,275,505 |   |
|    Dilutive      effect of stock options          |   |   | 39,127     |   |   |   | 90,916 |   |
|    Dilutive      effect of performance shares     |   |   | 13,694     |   |   |   | 10,613 |   |
| Weighted-average      diluted shares of common stock outstanding |   |   | 11,655,175 |   |   |   | 10,377,034 |   |

|                                                           |   | 2009   |   |   | 2008   |   |
|----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Operating      revenues                                        |   | $      | 23,747 |   |   | $      | 17,874 |   |
| Operating      income                                          |   | $      | 12,315 |   |   | $      | 8,609 |   |
|                                                           |   |   |   |   |   |   |   |   |
| Net      income                                                |   | $      | 9,963  |   |   | $      | 8,339 |   |
| Less      net income attributable to non-controlling interests |   |   | 9,073  |   |   |   | 7,628 |   |
| Net      income attributable to VELCO                          |   | $      | 890    |   |   | $      | 711 |   |
|                                                           |   |   |   |   |   |   |   |   |
| Company's      common stock ownership interest                 |   |   | 47.05  | %      |   |   | 47.05 | % |
| Company's      equity in net income                            |   | $      | 414    |   |   | $      | 372 |   |

----

|                                      |   | 2009   |   |   | 2008   |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|
| Operating      revenues                   |   | $      | 23,621 |   |   | $      | 17,747 |   |
| Operating      income                     |   | $      | 12,998 |   |   | $      | 9,058 |   |
| Net      income                           |   | $      | 10,733 |   |   | $      | 8,767 |   |
|                                      |   |   |   |   |   |   |   |   |
| Company’s      ownership interest   |   |   | 33.02  | %      |   |   | 39.79 | % |
| Company’s      equity in net income |   | $      | 3,968  |   |   | $      | 3,732 |   |

|                                                 |   | 2009   |   |   | 2008   |   |
|------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Operating      revenues                              |   | $      | 44,771 |   |   | $      | 45,654 |   |
| Operating      (loss) income                         |   | $      | (974   | )      |   | $      | 139 |   |
| Net      income                                      |   | $      | 94     |   |   | $      | 124 |   |
|                                                 |   |   |   |   |   |   |   |   |
| Company’s      common stock ownership interest |   |   | 58.85  | %      |   |   | 58.85 | % |
| Company’s      equity in net income            |   | $      | 56     |   |   | $      | 73 |   |

----

----

----

|                                                     |   | March      31, 2009 |   |   | December      31, 2008 |   |
|----------------------------------------------------------|--------|---------------------|--------|--------|------------------------|--------|
| Regulatory assets                                        |   |                |   |   |                   |   |
| Pension      and postretirement medical costs - SFAS 158 |   | $                   | 44,462 |   |                   | $      | 46,911 |   |
| Nuclear      plant dismantling costs                     |   | $                   | 9,594  |   |                   |   | 10,049 |   |
| Nuclear      refueling outage costs - Millstone Unit #3  |   | $                   | 1,077  |   |                   |   | 1,347 |   |
| Income      taxes                                        |   | $                   | 4,212  |   |                   |   | 4,115 |   |
| Asset      retirement obligations and other              |   | $                   | 1,384  |   |                   |   | 1,052 |   |
| Total      Regulatory assets                             |   | $                   | 60,729 |   |                   |   | 63,474 |   |
|                                                     |   |                |   |   |                   |   |   |   |
| Other deferred charges -      regulatory                 |   |                |   |   |                   |   |   |   |
| Vermont      Yankee sale costs (tax)                     |   |                | 673    |   |                   |   | 673 |   |
| Deferral      of December 2008 storm costs               |   |                | 3,235  |   |                   |   | 4,059 |   |
| Unrealized      losses on power-related derivatives      |   |                | 4,235  |   |                   |   | 4,070 |   |
| Other                                                    |   |                | 626    |   |                   |   | 1,178 |   |
| Total Other      deferred charges - regulatory      |   |                | 8,769  |   |                   |   | 9,980 |   |
|                                                     |   |                |   |   |                   |   |   |   |
| Other deferred credits -      regulatory                 |   |                |   |   |                   |   |   |   |
| Asset      retirement obligation - Millstone Unit #3     |   |                | 967    |   |                   |   | 1,497 |   |
| Vermont      Yankee settlements                          |   |                | 638    |   |                   |   | 789 |   |
| Emission      allowances and renewable energy credits    |   |                | 231    |   |                   |   | 308 |   |
| Unrealized      gains on power-related derivatives       |   |                | 15,424 |   |                   |   | 12,756 |   |
| Environmental      remediation                           |   |                | 750    |   |                   |   | 1,000 |   |
| PCAM      adjustment                                     |   |                | 578    |   |                   |   | 0 |   |
| Other                                                    |   |                | 1,591  |   |                   |   | 1,346 |   |
| Total Other      deferred credits - regulatory      |   | $                   | 20,179 |   |                   | $      | 17,696 |   |

----

|                                                                     |   | Fair      Value as of March 31, 2009 |   |
|--------------------------------------------------------------------------|--------|--------------------------------------|--------|
|                                                                     |   | Level      1                         |   |   | Level      2 |   |   | Level      3 |   |   | Total |   |
| Assets:                                                                  |   |                                 |   |   |   |   |   |   |   |   |   |   |
|      Millstone      decommissioning trust fund  |   | $                                    | 0      |   |   | $ | 3,712 |   |   | $ | 0 |   |   | $ | 3,712 |   |
|      Cash      equivalents                      |   |                                 | 10,990 |   |   |   | 0 |   |   |   | 0 |   |   |   | 10,990 |   |
|      Restricted      cash                       |   |                                 | 5,621  |   |   |   | 0 |   |   |   | 0 |   |   |   | 5,621 |   |
|      Power-related      derivatives - current   |   |                                 | 0      |   |   |   | 0 |   |   |   | 15,527 |   |   |   | 15,527 |   |
|      Total                                      |   | $                                    | 16,611 |   |   | $ | 3,712 |   |   | $ | 15,527 |   |   | $ | 35,850 |   |
|                                                                     |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                                             |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Power-related      derivatives - current   |   | $                                    | 0      |   |   | $ | 0 |   |   | $ | 0 |   |   | $ | 0 |   |
|      Power-related      derivatives - long term |   |                                 | 0      |   |   |   | 0 |   |   |   | 4,235 |   |   |   | 4,235 |   |
|      Total                                      |   | $                                    | 0      |   |   | $ | 0 |   |   | $ | 4,235 |   |   | $ | 4,235 |   |

|                                                                     |   | Fair      Value as of December 31, 2008 |   |
|--------------------------------------------------------------------------|--------|-----------------------------------------|--------|
|                                                                     |   | Level      1                            |   |   | Level      2 |   |   | Level      3 |   |   | Total |   |
| Assets:                                                                  |   |                                    |   |   |   |   |   |   |   |   |   |   |
|      Millstone      decommissioning trust fund  |   | $                                       | 0      |   |   | $ | 4,203 |   |   | $ | 0 |   |   | $ | 4,203 |   |
|      Cash      equivalents                      |   |                                    | 5,028  |   |   |   | 0 |   |   |   | 0 |   |   |   | 5,028 |   |
|      Restricted      cash                       |   |                                    | 3,636  |   |   |   | 0 |   |   |   | 0 |   |   |   | 3,636 |   |
|      Power-related      derivatives - current   |   |                                    | 0      |   |   |   | 0 |   |   |   | 12,758 |   |   |   | 12,758 |   |
|      Power-related      derivatives - long term |   |                                    | 0      |   |   |   | 0 |   |   |   | 133 |   |   |   | 133 |   |
|      Total                                      |   | $                                       | 8,664  |   |   | $ | 4,203 |   |   | $ | 12,891 |   |   | $ | 25,758 |   |
|                                                                     |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                                             |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Power-related      derivatives - current   |   | $                                       | 0      |   |   | $ | 0 |   |   | $ | 2 |   |   | $ | 2 |   |
|      Power-related      derivatives - long term |   |                                    | 0      |   |   |   | 0 |   |   |   | 4,069 |   |   |   | 4,069 |   |
|      Total                                      |   | $                                       | 0      |   |   | $ | 0 |   |   | $ | 4,071 |   |   | $ | 4,071 |   |

----

|                                                                                               |   | 2009   |   |   | 2008   |   |
|----------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Power-related      Derivatives, net                                                                |   |   |   |   |   |   |
| Balance      as of January 1                                                                       |   | $      | 8,820  |   |   | $      | (7,110 | ) |
|      Gains      and losses (realized and unrealized)                      |   |   |   |   |   |   |   |   |
|        Included      in earnings                                |   |   | 4,794  |   |   |   | (549 | ) |
|        Included      in Regulatory and other assets/liabilities |   |   | 2,504  |   |   |   | (4,296 | ) |
|      Purchases,      sales, issuances and net settlements                 |   |   | (4,826 | )      |   |   | 529 |   |
| Balance      as of March 31                                                                        |   | $      | 11,292 |   |   | $      | (11,426 | ) |

----

| Commodity                          |   | mWh      (000s) |    |
|------------------------------------|--------|-----------------|---------|
| Forward      Energy Sales          |   |            | 404.7   |   |
| Forward      Energy Purchase       |   |            | 394.2   |   |
| Financial      Transmission Rights |   |            | 1,176.3 |   |
| Hydro-Quebec      Sellback #3      |   |            | 438.0   |   |

|                                                            |   | 2009 |   |   | 2008   |   |
|-----------------------------------------------------------------|--------|------|--------|--------|--------|--------|
| Net      realized gains (losses) reported in operating revenues |   | $    | 4,812  |   |   | $      | (505 | ) |
| Net      realized gains (losses) reported in purchased power    |   | $    | (18    | )      |   | $      | (44 | ) |

|                                       |   | Pension      Benefits |   |   | Postretirement      Benefits |   |
|--------------------------------------------|--------|-----------------------|--------|--------|------------------------------|--------|
|                                       |   | 2009                  |   |   | 2008                         |   |   | 2009 |   |   | 2008 |   |
| Service      cost                          |   | $                     | 946    |   |                         | $      | 823 |   |   | $ | 178 |   |   | $ | 155 |   |
| Interest      cost                         |   |                  | 1,652  |   |                         |   | 1,523 |   |   |   | 428 |   |   |   | 403 |   |
| Expected      return on plan assets        |   |                  | (2,077 | )      |                         |   | (1,831 | ) |   |   | (196 | ) |   |   | (267 | ) |
| Amortization      of net actuarial loss    |   |                  | 86     |   |                         |   | 0 |   |   |   | 70 |   |   |   | 263 |   |
| Amortization      of prior service cost    |   |                  | 0      |   |                         |   | 97 |   |   |   | 379 |   |   |   | 0 |   |
| Amortization      of transition obligation |   |                  | 0      |   |                         |   | 0 |   |   |   | 64 |   |   |   | 64 |   |
| Net      periodic benefit cost             |   |                  | 607    |   |                         |   | 612 |   |   |   | 923 |   |   |   | 618 |   |
| Less      amounts capitalized              |   |                  | 68     |   |                         |   | 88 |   |   |   | 102 |   |   |   | 89 |   |
| Net      benefit costs expensed            |   | $                     | 539    |   |                         | $      | 524 |   |   | $ | 821 |   |   | $ | 529 |   |

----

----

----

----

----

|                                   |   |   |    |   |        |   |   | Reclassification      & |   |   |         |   |
|----------------------------------------|--------|--------|---------|--------|-------------|--------|--------|-----------------------------|--------|--------|--------------|--------|
|                                   |   |   |    |   | Unregulated |   |   | Consolidating               |   |   |         |   |
|                                   |   | CV-VT  |    |   | Companies   |   |   | Entries                     |   |   | Consolidated |   |
| March 31, 2009                         |   |   |    |   |        |   |   |                        |   |   |         |   |
| Revenues      from external customers  |   | $      | 90,727  |   |        | $      | 419    |                        |   | $      | (419         | )      |   | $ | 90,727 |   |
| Net      income                        |   | $      | 6,817   |   |        | $      | 55     |                        |   | $      | 0            |   |   | $ | 6,872 |   |
| Total      assets at March 31, 2009    |   | $      | 625,720 |   |        | $      | 2,000  |                        |   | $      | (224         | )      |   | $ | 627,496 |   |
|                                   |   |   |    |   |        |   |   |                        |   |   |         |   |   |   |   |   |
| March 31, 2008                         |   |   |    |   |        |   |   |                        |   |   |         |   |   |   |   |   |
| Revenues      from external customers  |   | $      | 91,224  |   |        | $      | 432    |                        |   | $      | (432         | )      |   | $ | 91,224 |   |
| Net      income                        |   | $      | 5,830   |   |        | $      | 78     |                        |   | $      | 0            |   |   | $ | 5,908 |   |
| Total      assets at December 31, 2008 |   | $      | 624,341 |   |        | $      | 3,184  |                        |   | $      | (1,399       | )      |   | $ | 626,126 |   |

----

Item 2.   Management’s 

| §  | the      actions of regulatory bodies with respect to allowed rates of return,      continued recovery of regulatory assets and application of alternative      regulation;                     |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| §  | liquidity      risks;                                                                                                                                                                           |
| §  | performance      and continued operation of the Vermont Yankee nuclear power      plant;                                                                                                        |
| §  | changes      in the cost or availability of capital;                                                                                                                                            |
| §  | our      ability to replace or renegotiate our long-term power supply      contracts;                                                                                                           |
| §  | effects      of and changes in local, national and worldwide economic      conditions;                                                                                                          |
| §  | effects      of and changes in weather;                                                                                                                                                         |
| §  | volatility      in wholesale power markets;                                                                                                                                                     |
| §  | our      ability to maintain or improve our current credit  ratings;                                                                                                                            |
| §  | the      operations of ISO-New England;                                                                                                                                                         |
| §  | 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 a mature workforce and retain qualified, skilled and      experienced personnel; and                                                                                |
| §  | other      presently unknown or unforeseenfactors.                                                                                                                                              |

----

----

----

----

| 2008      Earnings per diluted share                                                         |   | $      | 0.56  |   |
|----------------------------------------------------------------------------------------------|--------|--------|-------|--------|
|          Lower purchased power expense                                        |   |   | 0.07  |   |
|          Lower other operating expenses                                       |   |   | 0.04  |   |
|          Higher equity in earnings of affiliates                              |   |   | 0.02  |   |
|          Common stock issuance (Nov. 2008) - 1,190,000 additional      shares |   |   | (0.07 | )      |
|          Lower operating revenues                                             |   |   | (0.03 | )      |
|          Higher transmission expense                                          |   |   | (0.02 | )      |
|          Higher interest expense                                              |   |   | (0.01 | )      |
|          Other                                                                |   |   | 0.02  |   |
| 2009      Earnings per diluted share                                                         |   | $      | 0.58  |   |

|                                            |   | Revenue |   |   | mWh      Sales |   |
|-------------------------------------------------|--------|---------|--------|--------|----------------|--------|
|                                            |   | 2009    |   |   | 2008           |   |   | 2009 |   |   | 2008 |   |
| Residential                                     |   | $       | 38,966 |   |           | $      | 38,512 |   |   |   | 284,094 |   |   |   | 280,995 |   |
| Commercial                                      |   |    | 25,837 |   |           |   | 26,799 |   |   |   | 209,033 |   |   |   | 219,751 |   |
| Industrial                                      |   |    | 8,810  |   |           |   | 9,630 |   |   |   | 96,280 |   |   |   | 104,925 |   |
| Other                                           |   |    | 470    |   |           |   | 465 |   |   |   | 1,586 |   |   |   | 1,570 |   |
|     Total      retail sales |   |    | 74,083 |   |           |   | 75,406 |   |   |   | 590,993 |   |   |   | 607,241 |   |
| Resale      sales                               |   |    | 13,933 |   |           |   | 13,502 |   |   |   | 203,848 |   |   |   | 205,137 |   |
| Provision      for rate refund                  |   |    | 0      |   |           |   | (62 | ) |   |   | 0 |   |   |   | 0 |   |
| Other      operating revenues                   |   |    | 2,711  |   |           |   | 2,378 |   |   |   | 0 |   |   |   | 0 |   |
| Total      operating revenues                   |   | $       | 90,727 |   |           | $      | 91,224 |   |   |   | 794,841 |   |   |   | 812,378 |   |

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| §  | Retail      sales decreased $1.3 million comprised of a $1.7 million decrease due to      lower sales volume, partly offset by a $0.4 million increase due to higher      average retail rates.  Sales volume decreased due to lower      average usage by commercial and industrial customers resulting from      economic conditions.                                                                                                                                                                                 |
|--------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| §  | Resale      sales increased $0.4 million resulting from higher average prices from new      contracts.                                                                                                                                                                                                                                                                                                                                                                                                                            |
| §  | The      provision for rate refund was a reduction in operating revenues related to      amounts that were included in retail rates in 2007 and January 2008 that      were to be refunded to customers.  It ended with retail rates      effective February 1, 2008 because the customer refund was included in the      new rates.                                                                                                                                                                                    |
| §  | Other      operating revenues increased $0.3 million from sales of additional      transmission capacity from our share of Phase I/II transmission facility      rights and an increase in wholesale rates.  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 is estimated to be      approximately $1.8 million annually in 2009 and  2010. |

|                                                    |   | Purchases      (in thousands) |   |   | mWh      Purchases |   |
|---------------------------------------------------------|--------|-------------------------------|--------|--------|--------------------|--------|
|                                                    |   | 2009                          |   |   | 2008               |   |   | 2009 |   |   | 2008 |   |
| VYNPC                                                   |   | $                             | 15,733 |   |               | $      | 15,900 |   |   |   | 386,711 |   |   |   | 393,572 |   |
| Hydro-Quebec                                            |   |                          | 17,059 |   |               |   | 16,421 |   |   |   | 268,162 |   |   |   | 251,089 |   |
| Independent      Power Producers ("IPPs")               |   |                          | 5,909  |   |               |   | 7,904 |   |   |   | 47,952 |   |   |   | 56,306 |   |
|   Subtotal      long-term contracts           |   |                          | 38,701 |   |               |   | 40,225 |   |   |   | 702,825 |   |   |   | 700,967 |   |
| Other      purchases                                    |   |                          | 2,380  |   |               |   | 1,744 |   |   |   | 13,403 |   |   |   | 16,526 |   |
| SFAS      No. 5 loss amortizations                      |   |                          | (299   | )      |               |   | (299 | ) |   |   | - |   |   |   | - |   |
| Maine      Yankee, Connecticut Yankee and Yankee Atomic |   |                          | 329    |   |               |   | 568 |   |   |   | - |   |   |   | - |   |
| Amortizations      and deferrals                        |   |                          | 499    |   |               |   | 668 |   |   |   | - |   |   |   | - |   |
| Total      purchased power                              |   |                          | 41,610 |   |               |   | 42,906 |   |   |   | 716,228 |   |   |   | 717,493 |   |

| §  | Purchases      under long-term contracts decreased $1.5 million largely due to the Nov.      2008 termination of one IPP participant, resulting in fewer required IPP      purchases at lower prices and lower output from VYNPC.  This      decrease was partially offset by increased deliveries from Hydro-Quebec,      higher energy prices under the Hydro-Quebec and VYNPC contracts and a      lower nuclear insurance refund from VYNPC.  The impact of the      nuclear insurance is offset in amortizations and deferrals discussed      below. |
|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| §  | Other      purchases increased $0.6 million resulting from higher average      prices.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| §  | Nuclear      decommissioning costs decreased $0.2 million.  These costs are      associated with our ownership interests in Maine Yankee, Connecticut      Yankee and Yankee Atomic.  Their costs are based on      FERC-approved tariffs.                                                                                                                                                                                                                                                                                                                |
| §  | Amortizations      and deferrals decreased $0.2 million.  These amortizations and      deferrals are based on PSB-approved regulatory accounting, and include net      accounting deferrals and amortizations for incremental energy costs      related to Millstone Unit #3 scheduled refueling outages and deferrals for      our share of nuclear insurance refunds received by  VYNPC.                                                                                                                                                                          |

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Item3.  Quantitative 

|                                                                                    |   | Forward   |   |   | Forward   |   |   |             |   |   |   |   |
|-----------------------------------------------------------------------------------------|--------|-----------|--------|--------|-----------|--------|--------|------------------|--------|--------|--------|--------|
|                                                                                    |   | Sales     |   |   | Purchase  |   |   | Hydro-Quebec     |   |   |   |   |
|                                                                                    |   | Contracts |   |   | Contracts |   |   | Sellback      #3 |   |   | Total  |   |
| Total      fair value at December 31, 2008 - unrealized gain (loss),    net             |   | $         | 12,753 |   |      | $      | 136    |             |   | $      | (4,069 | )      |   | $ | 8,820 |   |
| Plus      new contracts entered into during the period                                  |   |      |   |   |      |   | (855   | )                |   |   |   |   |   |   | (855 | ) |
| Less      amounts settled during the period                                             |   |      | (4,812 | )      |      |   | (34    | )                |   |   |   |   |   |   | (4,846 | ) |
| Change      in fair value during the period                                             |   |      | 7,481  |   |      |   | (15    | )                |   |   | 707    |   |   |   | 8,173 |   |
| Total      fair value at March 31, 2009 - unrealized gain (loss), net                   |   | $         | 15,422 |   |      | $      | (768   | )                |   | $      | (3,362 | )      |   | $ | 11,292 |   |
|                                                                                    |   |      |   |   |      |   |   |             |   |   |   |   |   |   |   |   |
| Estimated      fair value at March 31, 2009 for changes in projected market      price: |   |      |   |   |      |   |   |             |   |   |   |   |   |   |   |   |
|    10      percent increase                                              |   | $         | 13,676 |   |      | $      | (838   | )                |   | $      | 6,451  |   |   | $ | 19,289 |   |
|    10      percent decrease                                              |   | $         | 17,168 |   |      | $      | 2,624  |             |   | $      | 761    |   |   | $ | 20,553 |   |

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Item4. Controls 

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| 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, 2008, which could materially affect our business, financial condition      or future results. The risks described in our 2008 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 6.                           | Exhibits.  |
|                              | (a) | List      of Exhibits  |   |
|                              | A      10.17 | Management      Incentive Plan, Effective as of January 1, 2009 (incorporated by reference      to Exhibit A 10.17 to the Company's Form 8-K filed with the SEC on April      7, 2009).  |   |
|                              | 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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| SIGNATURES      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. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | CENTRAL      VERMONT PUBLIC SERVICE CORPORATION                                                                                            |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------|
|   | (Registrant)                                                                                                                          |
| By     |  /s/ Pamela J.      Keefe                   |
|   | Pamela      J. KeefeSenior      Vice President, Chief Financial Officer, and  Treasurer                                                    |

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