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

| (Mark      One) |                                                                                                                                                                                                                      |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ý          | ANNUAL      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE      ACT OF 1934For      the fiscal year ended December 31, 2008                                                                        |
| OR         |
| ¨          | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIESEXCHANGE      ACT OF 1934For      the transition period      from             to |

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

| Vermont(State      or other jurisdiction ofincorporation      or organization) 77      Grove Street, Rutland, Vermont(Address      of principal executive offices) | 03-0111290(IRS      EmployerIdentification      No.) 05701(Zip      Code)  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|
| Registrant’s      telephone number, including area code     (800)      649-2877                                                               |

|                                                                                                                                                                           |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|  Securities      registered pursuant to Section 12(b) of the Act:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| Title      of each class                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Name      of each exchange on which registered  |
| Common      Stock $6 Par Value                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         | New      York Stock Exchange |

| Securities registered pursuant      to Section 12(g) of the Act:   None Indicate      by check mark if the registrant is a well-known seasoned issuer, as      defined in Rule 405 of the Securities Act.  Yes  ¨  No  ý Indicate      by check mark if the registrant is not required to file reports pursuant      to Section 13 or Section 15(d) of the Act.  Yes  ¨  No  ý 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  ý  No  ¨ Indicate      by check mark if disclosure of delinquent filers pursuant to Item 405 of      Regulation S-K is not contained herein, and will not be contained, to the      best of registrant’s knowledge, in definitive proxy or information      statements incorporated by reference in Part III of this Form 10-K or any      amendment to this Form 10-K.  ý  |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| 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   ý |
| 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 Act).  Yes  ¨ No  ý The      aggregate market value of voting and non-voting common equity held by non      affiliates of the registrant as of June 30, 2008 (2nd      quarter) was approximately $150,729,379 (based on the $19.37 per share      closing price of the Company’s Common Stock, $6 Par Value, as reported on      the New York Stock Exchange on June 30, 2008).  In determining      who are affiliates of the Company for purposes of computation, it is      assumed that directors, officers, and other persons who held on December      31, 2008, more than 5 percent of the issued and outstanding Common Stock      of the Company are “affiliates” of the Company.  The      characterization of such directors, officers, and other persons as      affiliates is for the purposes of this computation only and should not be      construed as a determination or admission for any other      purpose. On      February 27, 2009 there were outstanding 11,610,905 shares of voting      Common Stock, $6 Par Value. DOCUMENTS      INCORPORATED BY REFERENCE The      Company’s Definitive Proxy Statement relating to its Annual Meeting of      Stockholders to be held on May      5, 2009 to be filed with the Securities and Exchange Commission pursuant      to Regulation 14A under the Securities Act of 1934, is incorporated by      reference in Items 10, 11, 12, 13 and 14 of Part III of this Form      10-K. |

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|   | CENTRAL      VERMONT PUBLIC SERVICE CORPORATION |                                                                                                                              |
|--------|-------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------|
|   | FORM      10-K - 2008                           |                                                                                                                              |
|   | TABLE      OF CONTENTS                          |                                                                                                                              |
|   |                                            |                                                                                                                              |   |
|   |                                            |                                                                                                                              | Page |
|   |                                            | PART      I                                                                                                                       |   |
|   | Item      1.                                    | Business                                                                                                                          |        2 |
|   | Item      1A                                    | Risk      Factors                                                                                                                 |        10 |
|   | Item      1B                                    | Unresolved      Staff Comments                                                                                                    |        14 |
|   | Item      2.                                    | Properties                                                                                                                        |        14 |
|   | Item      3.                                    | Legal      Proceedings                                                                                                            |        14 |
|   | Item      4.                                    | Submission      of Matters to a Vote of Security Holders                                                                          |        14 |
|   |                                            |                                                                                                                              |   |
|   |                                            | PART      II                                                                                                                      |   |
|   | Item      5.                                    | Market      for Registrant’s Common Equity, Related Stockholder Matters and      Issuer Purchases of Equity Securities |        15 |
|   | Item      6.                                    | Selected      Financial Data                                                                                                      |        16 |
|   | Item      7.                                    | Management’s      Discussion and Analysis of Financial  Condition and Results of      Operations                       |        17 |
|   | Item      7A.                                   | Quantitative      and Qualitative Disclosures About Market Risk                                                                   |        42 |
|   | Item      8.                                    | Financial      Statements and Supplementary Data                                                                                  |        45 |
|   | Item      9.                                    | Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosure                                    |        95 |
|   | Item      9A.                                   | Controls      and Procedures                                                                                                      |        95 |
|   | Item      9B.                                   | Other      Information                                                                                                            |        96 |
|   |                                            |                                                                                                                              |   |
|   |                                            | PART      III                                                                                                                     |   |
|   | Item      10.                                   | Directors,      Executive Officers and Corporate Governance                                                                       |        97 |
|   | Item      11.                                   | Executive      Compensation                                                                                                       |        97 |
|   | Item      12.                                   | Security      Ownership of Certain Beneficial Owners and Management and      Related Stockholder Matters                     |        97 |
|   | Item      13.                                   | Certain      Relationships and Related Transactions, and Director      Independence                                               |        97 |
|   | Item      14.                                   | Principal      Accounting Fees and Services                                                                                       |        97 |
|   |                                            |                                                                                                                              |   |
|   |                                            | PART      IV                                                                                                                      |   |
|   | Item      15.                                   | Exhibits,      Financial Statement Schedules                                                                                      |        98 |
|   |                                            |                                                                                                                              |   |
|   | Schedule      II                                | Valuation      and Qualifying Accounts                                                                                            |        111 |
|   |                                            |                                                                                                                              |   |
|   | Signatures                                      |                                                                                                                              |        112 |

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CENTRAL VERMONT PUBLIC SERVICE CORPORATION

| §  | the      actions of regulatory bodies with respect to allowed rates of return,      continued recovery of regulatory assets and proposed 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.                                                                                                                                              |

| §   | Custom      Investment Corporation (“Custom”), formed for the purpose of holding      passive investments, including the stock of our subsidiaries that invest      in regulated business opportunities.  On October 13, 2003, we      transferred our shares of Vermont Yankee Nuclear Power Corporation      (“VYNPC”) to Custom.  The transfer to Custom does not affect our      rights and obligations related toVYNPC. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | C.V.      Realty, Inc., a real estate company that owns, buys, sells and leases real      and personal property and interests therein related to the utility      business. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | CVPSC      - East Barnet Hydroelectric, Inc., formed for the purpose of financing and      constructing a hydroelectric facility in Vermont, which became operational      September 1, 1984.  We have leased and operated it since the      in-service date. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Catamount      Resources Corporation (“CRC”), formed for the purpose of holding our      investments in unregulated business opportunities.  CRC’s wholly      owned subsidiary, Eversant Corporation, engages in the sale and rental of      electric water heaters in Vermont and New Hampshire through a wholly owned      subsidiary, SmartEnergy Water Heating Services,  Inc. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| §   | In      2007, we dissolved our wholly owned subsidiary Connecticut Valley Electric      Company, Inc. (“Connecticut Valley”), which had been incorporated under      the laws of New Hampshire on December 9, 1948.  Connecticut      Valley distributed and sold electricity in parts of New Hampshire      bordering the Connecticut River, until January 1, 2004, when it completed      the sale of substantially all of its plant assets and its franchise to      Public Service Company of New Hampshire.  Its remaining assets      were nominal. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | We      own 58.85 percent of the common stock of VYNPC, which was initially formed      by a group of New England utilities to build and operate a nuclear-powered      generating plant in Vernon, Vermont.  On July 31, 2002, the      plant was sold to Entergy Nuclear Vermont Yankee, LLC (“Entergy-Vermont      Yankee”).  The sale agreement included a purchased power      contract between VYNPC and Entergy-Vermont Yankee.  Under the      purchased power contract, VYNPC pays Entergy-Vermont Yankee for generation      at fixed rates, and in turn, bills the purchased power contract charges      from Entergy-Vermont Yankee with certain residual costs of service through      a FERC tariff to us and the other Vermont Yankee      sponsors.  Although we own a majority of the shares of VYNPC,      our ability to exercise control is effectively restricted by the purchased      power contract, the sponsor agreement among the group of New England      utilities that formed VYNPC and the composition of the board of directors      under which it operates. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | We      own 47.05 percent of the common stock and 48.03 percent of the preferred      stock of Vermont Electric Power Company, Inc. (“VELCO”).  In      June 2006, VELCO transferred substantially all of its business operations      and assets to Vermont Transco LLC (“Transco”).  VELCO’s wholly      owned subsidiary, Vermont Electric Transmission Company, Inc., was formed      to finance, construct and operate the Vermont portion of the 450 kV DC      transmission line connecting the Province of Quebec with Vermont and the      rest of New England. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | We      own 33.02 percent of the voting equity units of Transco, which was formed      by VELCO and its owners, including us, in June 2006.   Transco      owns and operates the high-voltage transmission system in      Vermont.  VELCO and its employees manage the operations of      Transco under a Management Services Agreement.  VELCO owns 14.14      percent of the voting equity units of Transco.  Our total      direct and indirect (through our VELCO ownership) interest in Transco      is 39.67 percent of the voting equityunits. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | We      own 2 percent of the outstanding common stock of Maine Yankee Atomic Power      Company (“Maine Yankee”), 2 percent of the outstanding common stock of      Connecticut Yankee Atomic Power Company (“Connecticut Yankee”) and 3.5      percent of the outstanding common stock of Yankee Atomic Electric Company      (“Yankee Atomic”).  All of the plants have been permanently shut      down and have completeddecommissioning. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                    |   | Revenues |   |   | Energy      (mWh) Sales |   |
|---------------------------------------------------------|--------|----------|--------|--------|-------------------------|--------|
|                                                    |   | 2008     |   |   | 2007                    |   |   | 2006 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Retail      Sales:                                      |   |     |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Residential               |   |     | 40     | %      |                    |   | 41 | % |   |   | 38 | % |   |   | 33 | % |   |   | 33 | % |   |   | 29 | % |
|      Commercial                |   |     | 32     | %      |                    |   | 33 | % |   |   | 32 | % |   |   | 29 | % |   |   | 29 | % |   |   | 27 | % |
|      Industrial      and other |   |     | 11     | %      |                    |   | 11 | % |   |   | 12 | % |   |   | 13 | % |   |   | 14 | % |   |   | 13 | % |
| Resale      Sales                                       |   |     | 14     | %      |                    |   | 12 | % |   |   | 16 | % |   |   | 25 | % |   |   | 24 | % |   |   | 31 | % |
| Other      operating revenue                            |   |     | 3      | %      |                    |   | 3 | % |   |   | 2 | % |   |   | 0 | % |   |   | 0 | % |   |   | 0 | % |

|                                               |   | Net      Effective Capability |   |   | Generated      and Purchased |   |
|----------------------------------------------------|--------|-------------------------------|--------|--------|------------------------------|--------|
|                                               |   | 12      Month Average MW      |   |   | mWh                          |   |   | Percent |   |
| Wholly      Owned Plants:                          |   |                          |   |   |                         |   |   |   |   |
|    Hydro                            |   |                          | 42.8   |   |                         |   | 231,193 |   |   |   | 7.3 |   |
|    Diesel      and Gas Turbine      |   |                          | 24.7   |   |                         |   | 625 |   |   |   | 0.0 |   |
| Jointly      Owned Plants:                         |   |                          |   |   |                         |   |   |   |   |   |   |   |
|    Millstone      #3                |   |                          | 19.8   |   |                         |   | 152,782 |   |   |   | 4.8 |   |
|    Wyman      #4                    |   |                          | 10.8   |   |                         |   | 2,276 |   |   |   | 0.1 |   |
|    McNeil                           |   |                          | 10.7   |   |                         |   | 50,440 |   |   |   | 1.6 |   |
| Long-Term      Purchases:                          |   |                          |   |   |                         |   |   |   |   |   |   |   |
|    VYNPC                            |   |                          | 179.5  |   |                         |   | 1,417,144 |   |   |   | 44.8 |   |
|    Hydro-Quebec                     |   |                          | 143.2  |   |                         |   | 937,923 |   |   |   | 29.7 |   |
|    Independent      Power Producers |   |                          | 34.6   |   |                         |   | 202,193 |   |   |   | 6.4 |   |
| Other      Purchases:                              |   |                          |   |   |                         |   |   |   |   |   |   |   |
|    System      and other purchases  |   |                          | 0.4    |   |                         |   | 93,918 |   |   |   | 3.0 |   |
|    NEPOOL      (ISO-New England)    |   |                          | -      |   |                         |   | 71,444 |   |   |   | 2.3 |   |
| Total                                              |   |                          | 466.5  |   |                         |   | 3,159,938 |   |   |   | 100.0 |   |

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|                                | Fuel      Type |   | Ownership |   | Date      In Service |   | MW      Entitlement |   |
|-------------------------------------|----------------|--------|-----------|--------|----------------------|--------|---------------------|--------|
| Wyman      #4                       | Oil            |   |      | 1.78   | %                    | 1978   |                |   | 10.8 |   |
| Joseph      C. McNeil               | Various        |   |      | 20.00  | %                    | 1984   |                |   | 10.8 |   |
| Millstone      Unit #3              | Nuclear        |   |      | 1.73   | %                    | 1986   |                |   | 20.0 |   |
| Highgate      Transmission Facility |           |   |      | 47.52  | %                    | 1985   |                |   | N/A |   |

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| Name      and Age                | Office                                                                          | Officer      Since |
|----------------------------------|---------------------------------------------------------------------------------|--------------------|
| Robert      H. Young, 61    | President      and chief executive officer                                 | 1987          |
| Pamela      J. Keefe, 43    | Vice      president, chief financial officer, and treasurer                | 2006          |
| William      J. Deehan, 56  | Vice      president - power planning and regulatory affairs                | 1991          |
| Joan      F. Gamble, 51     | Vice      president - strategic change and business services               | 1998          |
| Brian      P. Keefe, 51     | Vice      president - government and public affairs                        | 2006          |
| Joseph      M. Kraus, 53    | Senior      vice president - operations, engineering and customer service  | 1987          |
| Dale      A. Rocheleau, 50  | Senior      vice president, general counsel and corporate secretary             | 2003               |

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|                | Market      Price |
|---------------------|-------------------|
| 2008                | High              | Low |
| First      Quarter  | $32.43            | $22.40 |
| Second      Quarter | $25.13            | $18.74 |
| Third      Quarter  | $25.84            | $18.17 |
| Fourth      Quarter | $24.37            | $15.16 |
|                |              |   |
| 2007                |              |   |
| First      Quarter  | $29.19            | $22.53 |
| Second      Quarter | $38.24            | $29.10 |
| Third      Quarter  | $41.05            | $32.38 |
| Fourth      Quarter | $38.40            | $25.95 |

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| Item      6.   Selected Financial Data  |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
|--------------------------------------------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
| (in      thousands, except per share amounts)          |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
|                                                   |   | 2008   |    |   | 2007   |   |    | 2006   |   |   | 2005    |   |   | 2004   |    |
| Income      Statement                                  |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| Operating      revenues                                |   | $      | 342,162 |   |   | $      | 329,107 |   |   | $      | 325,738 |   |   | $      | 311,359 |   |   | $ | 302,286 |   |
|                                                   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Income      from continuing operations (a)             |   | $      | 16,385  |   |   | $      | 15,804  |   |   | $      | 18,101  |   |   | $      | 1,410   |   |   | $ | 7,493 |   |
| Income      from discontinued operations (b)           |   |   | 0       |   |   |   | 0       |   |   |   | 251     |   |   |   | 4,936   |   |   |   | 16,262 |   |
| Net      income                                        |   | $      | 16,385  |   |   | $      | 15,804  |   |   | $      | 18,352  |   |   | $      | 6,346   |   |   | $ | 23,755 |   |
|                                                   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Per Common Share      Data                             |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Basic      earnings from continuing operations         |   | $      | 1.53    |   |   | $      | 1.52    |   |   | $      | 1.65    |   |   | $      | 0.09    |   |   | $ | 0.59 |   |
| Basic      earnings from discontinued operations       |   |   | 0.00    |   |   |   | 0.00    |   |   |   | 0.02    |   |   |   | 0.40    |   |   |   | 1.34 |   |
| Basic      earnings per share                          |   | $      | 1.53    |   |   | $      | 1.52    |   |   | $      | 1.67    |   |   | $      | 0.49    |   |   | $ | 1.93 |   |
|                                                   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Diluted      earnings from continuing operations       |   | $      | 1.52    |   |   | $      | 1.49    |   |   | $      | 1.64    |   |   | $      | 0.08    |   |   | $ | 0.58 |   |
| Diluted      earnings from discontinued operations     |   |   | 0.00    |   |   |   | 0.00    |   |   |   | 0.02    |   |   |   | 0.40    |   |   |   | 1.32 |   |
| Diluted      earnings per share                        |   | $      | 1.52    |   |   | $      | 1.49    |   |   | $      | 1.66    |   |   | $      | 0.48    |   |   | $ | 1.90 |   |
|                                                   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Cash      dividends declared per share of common stock |   | $      | 0.92    |   |   | $      | 0.92    |   |   | $      | 0.69    |   |   | $      | 1.15    |   |   | $ | 0.92 |   |
|                                                   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Balance      Sheet                                     |   |   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Long-term      debt (c)                                |   | $      | 167,500 |   |   | $      | 112,950 |   |   | $      | 115,950 |   |   | $      | 115,950 |   |   | $ | 115,950 |   |
| Capital      lease obligations (c)                     |   | $      | 5,173   |   |   | $      | 5,889   |   |   | $      | 6,612   |   |   | $      | 6,153   |   |   | $ | 7,094 |   |
| Redeemable      preferred stock (c)                    |   | $      | 1,000   |   |   | $      | 2,000   |   |   | $      | 3,000   |   |   | $      | 4,000   |   |   | $ | 6,000 |   |
| Total      capitalization (c)                          |   | $      | 401,206 |   |   | $      | 317,700 |   |   | $      | 312,968 |   |   | $      | 351,527 |   |   | $ | 361,751 |   |
| Total      assets                                      |   | $      | 621,126 |   |   | $      | 540,314 |   |   | $      | 500,938 |   |   | $      | 551,433 |   |   | $ | 563,389 |   |

| (a)   | For      2005 includes a $21.8 million pre-tax charge to earnings ($11.2 million      after-tax) related to a 2005 RateOrder. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------|

|   | For      2004 includes a $14.4 million pre-tax charge to earnings ($8.4 million      after-tax) related to termination of a long-term power contract with      Connecticut Valley as a result of the January 1, 2004 sale of      substantially all of its assets andfranchise. |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | For      2006 and 2005 includes Catamount, which was sold in the fourth quarter of      2005.  For 2004 includes Catamount and Connecticut      Valley. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (c)   | Amounts      exclude current portions. |
|-----------------|----------------------------------------|

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| §   | On      May 15, 2008, we issued $60 million of our First Mortgage 6.83% Bonds,      Series UU due May 15, 2028.  We used the proceeds of this      offering to repay a $53 million note that was due on June 30, 2008 and for      general corporate purposes.  We are evaluating other financing      options to support current and future working capital needs resulting from      investments in our distribution and transmission system and optional      future investments in Vermont Transco LLC (“Transco”), the Vermont company      that owns and operates the high-voltage transmission system in      Vermont. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | On      September 30, 2008, the PSB issued an order approving, with modifications,      the alternative regulation plan proposal that we submitted in August      2007.  The plan became effective on November 1,      2008.  It expires on December 31, 2011, but we have an option to      petition for an extension beyond 2011.  The plan replaces the      traditional ratemaking process and allows for annual base rate      adjustments, quarterly rate adjustments to reflect changes in power supply      and transmission-by-others cost changes and annual rate adjustments to      reflect changes, within predetermined limits, from the allowed earnings      level.  See Retail Rates and Alternative    Regulation. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | In      November 2008, we issued 1,190,000 shares of common stock.  We      used the net proceeds of the offering for general corporate purposes,      including the repayment of debt, capital expenditures, investments in      Transco and working capitalrequirements. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | In      December 2008, we made a $3.1 million investment in      Transco.  This increased our equity investment in Transco to      $87.6 million at December 31, 2008.  See Liquidity, Capital      Resources and Commitments. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                                     |   | Payments      Due by Period (dollars in millions) |    |
|----------------------------------------------------------|--------|---------------------------------------------------|---------|
| Contractual      Obligations                             |   | Total                                             |    |   | Less      than 1 year |   |   | 1 -      3 years |   |   | 3 -      5 years |   |   | After      5 years |   |
| Long-term      debt                                      |   | $                                                 | 173.0   |   |   | $ | 5.5 |   |   | $ | 20.0 |   |   | $ | 0.0 |   |   | $ | 147.5 |   |
| Interest      on long-term debt (a)                      |   |                                              | 163.7   |   |   |   | 11.0 |   |   |   | 21.0 |   |   |   | 19.6 |   |   |   | 112.1 |   |
| Notes      payable (b)                                   |   |                                              | 10.8    |   |   |   | 10.8 |   |   |   | 0.0 |   |   |   | 0.0 |   |   |   | 0.0 |   |
| Interest      on notes payable (a)                       |   |                                              | 0.6     |   |   |   | 0.1 |   |   |   | 0.2 |   |   |   | 0.2 |   |   |   | 0.1 |   |
| Redeemable      preferred stock                          |   |                                              | 2.0     |   |   |   | 1.0 |   |   |   | 1.0 |   |   |   | 0.0 |   |   |   | 0.0 |   |
| Capital      lease (c)                                   |   |                                              | 7.9     |   |   |   | 1.4 |   |   |   | 2.6 |   |   |   | 2.2 |   |   |   | 1.7 |   |
| Operating      leases - vehicle and other (d)            |   |                                              | 11.0    |   |   |   | 9.0 |   |   |   | 0.7 |   |   |   | 0.7 |   |   |   | 0.6 |   |
| Purchased      power contracts (e)                       |   |                                              | 831.7   |   |   |   | 148.2 |   |   |   | 294.0 |   |   |   | 170.0 |   |   |   | 219.5 |   |
| Nuclear      decommissioning and other closure costs (f) |   |                                              | 10.0    |   |   |   | 1.4 |   |   |   | 3.1 |   |   |   | 3.2 |   |   |   | 2.3 |   |
|    Total      Contractual Obligations     |   | $                                                 | 1,210.7 |   |   | $ | 188.4 |   |   | $ | 342.6 |   |   | $ | 195.9 |   |   | $ | 483.8 |   |

|                           |   | (dollars      in thousands) |    |   | Percent |   |
|--------------------------------|--------|-----------------------------|---------|--------|---------|--------|
|                           |   | 2008                        |    |   | 2007    |   |   | 2008 |   |   | 2007 |   |
| Common      stock equity       |   |                        | 219,479 |   |    | $      | 188,807 |   |   |   | 55 | % |   |   | 59 | % |
| Preferred      stock           |   |                        | 9,054   |   |    |   | 10,054 |   |   |   | 2 | % |   |   | 3 | % |
| Long-term      debt            |   |                        | 167,500 |   |    |   | 112,950 |   |   |   | 42 | % |   |   | 36 | % |
| Capital      lease obligations |   |                        | 5,173   |   |    |   | 5,889 |   |   |   | 1 | % |   |   | 2 | % |
|                           |   | $                           | 401,206 |   |    | $      | 317,700 |   |   |   | 100 | % |   |   | 100 | % |

----

----

----

----

----

|                                                                  |   | Discount      Rate |   |   | Return      on Assets |   |
|-----------------------------------------------------------------------|--------|--------------------|--------|--------|-----------------------|--------|
|                                                                  |   | Increase           |   |   | Decrease              |   |   | Increase |   |   | Decrease |   |
| Pension      Plan                                                     |   |               |   |   |                  |   |   |   |   |   |   |   |
| Effect      on accumulated benefit obligation as of December 31, 2008 |   | $                  | (1,816 | )      |                  | $      | 1,851 |   |   | $ | 0 |   |   | $ | 0 |   |
| Effect      on 2008 net period benefit cost                           |   | $                  | (19    | )      |                  | $      | 13 |   |   | $ | (222 | ) |   | $ | 222 |   |
|                                                                  |   |               |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Other Postretirement      Medical Benefit Plans                       |   |               |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Effect      on accumulated benefit obligation as of December 31, 2008 |   | $                  | (706   | )      |                  | $      | 722 |   |   | $ | 0 |   |   | $ | 0 |   |
| Effect      on 2008 net periodic benefit cost                         |   | $                  | (77    | )      |                  | $      | 77 |   |   | $ | (32 | ) |   | $ | 33 |   |

----

----

|                                                   |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|--------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Income      from continuing operations                 |   | $      | 16,385 |   |   | $      | 15,804 |   |   | $ | 18,101 |   |
| Income      from discontinued operations               |   |   | 0      |   |   |   | 0      |   |   |   | 251 |   |
| Net      Income                                        |   | $      | 16,385 |   |   | $      | 15,804 |   |   | $ | 18,352 |   |
|                                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings      per share - basic:                       |   |   |   |   |   |   |   |   |   |   |   |   |
|   Earnings      from continuing operations   |   | $      | 1.53   |   |   | $      | 1.52   |   |   | $ | 1.65 |   |
|   Earnings      from discontinued operations |   |   | 0      |   |   |   | 0      |   |   |   | 0.02 |   |
|   Earnings      per share                    |   | $      | 1.53   |   |   | $      | 1.52   |   |   | $ | 1.67 |   |
| Earnings      per share - diluted:                     |   |   |   |   |   |   |   |   |   |   |   |   |
|   Earnings      from continuing operations   |   | $      | 1.52   |   |   | $      | 1.49   |   |   | $ | 1.64 |   |
|   Earnings      from discontinued operations |   |   | 0      |   |   |   | 0      |   |   |   | 0.02 |   |
|   Earnings      per share                    |   | $      | 1.52   |   |   | $      | 1.49   |   |   | $ | 1.66 |   |

|                                         |   | 2008      vs. 2007 |   |
|----------------------------------------------|--------|--------------------|--------|
| 2007      Earnings per diluted share         |   | $                  | 1.49   |   |
|                                         |   |               |   |   |
| Year-over-Year Effects      on Earnings:     |   |               |   |   |
| Higher      operating revenues               |   |               | 0.73   |   |
| Higher      equity in earnings of affiliates |   |               | 0.54   |   |
| Higher      purchased power expense          |   |               | (0.27  | ) |
| Higher      transmission expense             |   |               | (0.25  | ) |
| Higher      interest expense                 |   |               | (0.17  | ) |
| Higher      other operating expenses         |   |               | (0.21  | ) |
| Other                                        |   |               | (0.34  | ) |
| 2008      Earnings per diluted share         |   | $                  | 1.52   |   |
|                                         |   |               |   |   |
|                                         |   | 2007      vs. 2006 |   |
| 2006      Earnings per diluted share         |   | $                  | 1.66   |   |
|                                         |   |               |   |   |
| Year-over-Year Effects      on Earnings (a): |   |               |   |   |
| Higher      operating revenues               |   |               | 0.15   |   |
| Higher      equity in earnings of affiliates |   |               | 0.19   |   |
| Lower      purchased power expense           |   |               | 0.49   |   |
| Higher      transmission expense             |   |               | (0.37  | ) |
| Higher      other operating expenses         |   |               | (0.42  | ) |
| Other                                        |   |               | (0.21  | ) |
| 2007      Earnings per diluted share         |   | $                  | 1.49   |   |

| (a) | The      favorable impact of the April 2006 stock buyback is included in the      individual EPS variances and not shown separately in the table      above. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                           |   | Revenue      (dollars in thousands) |    |   | mWh      Sales |   |
|--------------------------------|--------|-------------------------------------|---------|--------|----------------|--------|
|                           |   | 2008                                |    |   | 2007           |   |   | 2006 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|   Residential        |   | $                                   | 138,091 |   |           | $      | 136,359 |   |   | $ | 124,520 |   |   |   | 982,966 |   |   |   | 1,003,055 |   |   |   | 959,455 |   |
|   Commercial         |   |                                | 108,252 |   |           |   | 107,556 |   |   |   | 103,432 |   |   |   | 873,192 |   |   |   | 885,713 |   |   |   | 888,537 |   |
|   Industrial         |   |                                | 34,858  |   |           |   | 36,064 |   |   |   | 35,052 |   |   |   | 396,741 |   |   |   | 425,356 |   |   |   | 430,348 |   |
|   Other              |   |                                | 1,872   |   |           |   | 1,840 |   |   |   | 1,768 |   |   |   | 6,312 |   |   |   | 6,250 |   |   |   | 6,125 |   |
|   Total      Retail  |   |                                | 283,073 |   |           |   | 281,819 |   |   |   | 264,772 |   |   |   | 2,259,211 |   |   |   | 2,320,374 |   |   |   | 2,284,465 |   |
| Resale      Sales              |   |                                | 48,641  |   |           |   | 38,935 |   |   |   | 53,149 |   |   |   | 759,832 |   |   |   | 697,749 |   |   |   | 1,031,171 |   |
| Provision      for Rate Refund |   |                                | (296    | )      |           |   | (747 | ) |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| Other      Operating Revenues  |   |                                | 10,744  |   |           |   | 9,100 |   |   |   | 7,817 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| Operating      Revenues        |   | $                                   | 342,162 |   |           | $      | 329,107 |   |   | $ | 325,738 |   |   |   | 3,019,043 |   |   |   | 3,018,123 |   |   |   | 3,315,636 |   |

|              |   | 2008   |    |   | 2007   |   |    | 2006   |   |
|-------------------|--------|--------|---------|--------|--------|--------|---------|--------|--------|
| Residential       |   |   | 136,074 |   |   |   | 135,591 |   |   |   | 131,483 |   |
| Commercial        |   |   | 22,407  |   |   |   | 22,106  |   |   |   | 21,506 |   |
| Industrial        |   |   | 35      |   |   |   | 37      |   |   |   | 35 |   |
| Other             |   |   | 175     |   |   |   | 175     |   |   |   | 173 |   |
|   Total |   |   | 158,691 |   |   |   | 157,909 |   |   |   | 153,197 |   |

|                                                                               |   | 2008      vs. 2007 |   |   | 2007      vs. 2006 |   |
|------------------------------------------------------------------------------------|--------|--------------------|--------|--------|--------------------|--------|
| Retail      sales:                                                                 |   |               |   |   |               |   |
|    Volume      (mWh)                                                |   | $                  | (6,660 | )      |               | $      | 4,960 |   |
|    Average      price due to customer sales mix                     |   |               | 2,194  |   |               |   | 1,124 |   |
|    Average      price due to rate increases Jan. 2007 and Feb. 2008 |   |               | 5,720  |   |               |   | 10,963 |   |
|    Subtotal                                                         |   |               | 1,254  |   |               |   | 17,047 |   |
| Resale      sales                                                                  |   |               | 9,706  |   |               |   | (14,214 | ) |
| Provision      for rate refund                                                     |   |               | 451    |   |               |   | (747 | ) |
| Other      operating revenues                                                      |   |               | 1,644  |   |               |   | 1,283 |   |
| Increase      in operating revenues                                                |   | $                  | 13,055 |   |               | $      | 3,369 |   |

| §   | Retail      sales increased $1.3 million resulting from a 2.3 percent rate increase      effective February 1, 2008 and a higher average price due to customer      sales mix.  Retail sales volume was lower in 2008 largely due to      lower average usage caused by milder weather, a slowing economy and energy      conservation. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Resale      sales increased $9.7 million resulting from higher average prices and an      increase in excess power available for resale due to lower retail sales      volume, higher output from our hydro facilities and Independent Power      Producers and less lost output from unplanned outages at Vermont      Yankee. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | The      provision for rate refund, which is a reduction in operating revenues, is      related to amounts that were included in retail rates in 2007 and January      2008 that were to be refunded to customers.  The provision for      refund ended with new retail rates effective February 1, 2008 that reflect      the customer refund. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Other      operating revenues increased $1.6 million due to sales of transmission      rights and increased revenue from storm restoration performed for other      utilities, partially offset by a provision for refund to retail      customers. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| §   | Retail      sales increased $17 million resulting from a 4.07 percent rate increase as      of January 1, 2007 and higher residential sales volume.  Retail      sales volume increased during 2007 largely due to an increase in the      number of residential customers resulting from small service territory      acquisitions in the second half of 2006 and customer growth in our service      territory.  Colder weather in the winter months in 2007 also      contributed to increased retail sales volume.  Customer sales      mix increased average prices on retail sales because the unit price for      residential sales is higher than those of other customer      classes. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Resale      sales decreased $14.2 million resulting from less excess power available      for resale.  The decrease in excess power available for resale      resulted from second quarter 2007 scheduled refueling outages at Vermont      Yankee and Millstone Unit #3, decreased Vermont Yankee purchases due to a      derate and unplanned outage during the third quarter of 2007, and lower      output from our hydro facilities and from Independent Power Producers due      to less rainfall compared to 2006.  The increase in retail sales      volume also reduced the amount of power available for      resale.  Additionally, 2006 results included approximately $8.4      million of Vermont Yankee uprate energy that was resold as described in      Purchased Power below.  This power was resold at the same prices      that we paid for it. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | The      provision for rate refund decreased revenue by $0.7      million.  This amount was included in the 4.07 percent rate      increase and was refunded to customers in 2008 because the PSB disallowed      our request to recover $1.5 million of Vermont Yankee 2005 incremental      refueling costs over two years. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Other      operating revenues increased $1.3 million largely from the sale of      additional transmission capacity on our share of Phase I/II transmission      facility rights, offset by revenue for storm restoration performed for      other utilities in 2006. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                        |   | 2008 over/(under)      2007 |   |   | 2007 over/(under)      2006 |   |
|---------------------------------------------|--------|-----------------------------|--------|--------|-----------------------------|--------|
|                                        |   | Total      Variance         |   |   | Percent                     |   |   | Total      Variance |   |   | Percent |   |
| Purchased      power - affiliates and other |   | $                           | 4,729  |   |                        |   | 2.9 | % |   | $ | (8,726 | ) |   |   | 5.1 | % |
| Production                                  |   |                        | 523    |   |                        |   | 4.5 | % |   |   | 1,972 |   |   |   | 20.3 | % |
| Transmission      - affiliates              |   |                        | 2,136  |   |                        |   | 41.5 | % |   |   | 3,970 |   |   |   | * |   |
| Transmission      - other                   |   |                        | 2,327  |   |                        |   | 14.1 | % |   |   | 2,605 |   |   |   | 18.7 | % |
| Other      operation                        |   |                        | 2,287  |   |                        |   | 4.3 | % |   |   | 4,775 |   |   |   | 9.8 | % |
| Maintenance                                 |   |                        | 55     |   |                        |   | 0.2 | % |   |   | 5,898 |   |   |   | 26.8 | % |
| Depreciation                                |   |                        | 443    |   |                        |   | 2.9 | % |   |   | (1,281 | ) |   |   | -7.8 | % |
| Taxes      other than income                |   |                        | 513    |   |                        |   | 3.4 | % |   |   | 782 |   |   |   | 5.4 | % |
| Income      tax expense (benefit)           |   |                        | (413   | )      |                        |   | -7.8 | % |   |   | (3,278 | ) |   |   | -38.3 | % |
| Total      operating expenses               |   | $                           | 12,600 |   |                        |   | 4.0 | % |   | $ | 6,717 |   |   |   | 2.2 | % |

|                                                      |   | Purchases      (in thousands) |    |   | mWh      purchases |   |
|-----------------------------------------------------------|--------|-------------------------------|---------|--------|--------------------|--------|
|                                                      |   | 2008                          |    |   | 2007               |   |   | 2006 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| VYNPC      (a)                                            |   | $                             | 57,708  |   |               | $      | 55,772 |   |   | $ | 70,116 |   |   |   | 1,417,144 |   |   |   | 1,361,754 |   |   |   | 1,689,390 |   |
| Hydro-Quebec                                              |   |                          | 63,670  |   |               |   | 64,869 |   |   |   | 64,297 |   |   |   | 937,923 |   |   |   | 998,411 |   |   |   | 998,365 |   |
| Independent      Power Producers                          |   |                          | 26,430  |   |               |   | 22,796 |   |   |   | 23,998 |   |   |   | 202,193 |   |   |   | 176,169 |   |   |   | 198,735 |   |
|     Subtotal      long-term contracts |   |                          | 147,808 |   |               |   | 143,437 |   |   |   | 158,411 |   |   |   | 2,557,260 |   |   |   | 2,536,334 |   |   |   | 2,886,490 |   |
| Other      purchases                                      |   |                          | 16,877  |   |               |   | 16,018 |   |   |   | 5,525 |   |   |   | 165,362 |   |   |   | 219,186 |   |   |   | 90,440 |   |
| SFAS      No. 5 Loss amortizations                        |   |                          | (1,196  | )      |               |   | (1,196 | ) |   |   | (1,196 | ) |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| Nuclear      decommissioning                              |   |                          | 2,070   |   |               |   | 2,588 |   |   |   | 5,412 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| Other                                                     |   |                          | (108    | )      |               |   | (125 | ) |   |   | 1,296 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| Total      purchased power                                |   | $                             | 165,451 |   |               | $      | 160,722 |   |   | $ | 169,448 |   |   |   | 2,722,622 |   |   |   | 2,755,520 |   |   |   | 2,976,930 |   |

----

|                                                      |   | 2008      vs. 2007 |   |   | 2007      vs. 2006 |   |
|-----------------------------------------------------------|--------|--------------------|--------|--------|--------------------|--------|
| VYNPC      (a)                                            |   | $                  | 1,936  |   |               | $      | (14,344 | ) |
| Hydro-Quebec                                              |   | $                  | (1,199 | )      |               | $      | 572 |   |
| Independent      Power Producers                          |   | $                  | 3,634  |   |               | $      | (1,202 | ) |
|     Subtotal      long-term contracts |   | $                  | 4,371  |   |               | $      | (14,974 | ) |
| Other      purchases                                      |   | $                  | 859    |   |               | $      | 10,493 |   |
| Nuclear      decommissioning                              |   | $                  | (518   | )      |               | $      | (2,824 | ) |
| Other                                                     |   | $                  | 17     |   |               | $      | (1,421 | ) |
| Total      purchased power                                |   | $                  | 4,729  |   |               | $      | (8,726 | ) |

| §   | Purchased      power costs under long-term contracts increased $4.4 million in 2008, due      primarily to increased purchases from Independent Power Producers at      higher prices and from increased Vermont Yankee plant output we purchase      at favorable rates under the long-term power contract (“PPA”) with Vermont      Yankee Nuclear Power Corporation (“VYNPC”).  The Vermont Yankee      plant operated at nearly full capacity in 2008 with the exception of a few      small derates and the planned refueling outage in the fourth      quarter.  These increases were offset by fewer purchases from      Hydro-Quebec due to a 5 percent decrease in the annual load      factor. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Other      purchases increased $0.9 million in 2008 resulting from higher average      prices for replacement energy purchased during the Vermont Yankee      refueling outage and derate describedabove. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Nuclear      decommissioning costs decreased $0.5 million in 2008 and are associated      with our ownership interests in Maine Yankee, Connecticut Yankee and      Yankee Atomic.  These costs are based on FERC-approved      tariffs.  The decrease is largely due to lower revenue      requirements for Connecticut Yankee and Maine  Yankee. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Purchased      power costs under long-term contracts decreased $15 million in 2007      largely resulting from decreased Vermont Yankee plant output we purchase      under the PPA with VYNPC.  The Vermont Yankee plant produced      less power in 2007 due to a second-quarter scheduled refueling outage and      a third-quarter derate and unplanned outage.  Also in 2006 we      were required to purchase additional Vermont Yankee uprate power at market      prices.  That power was resold in the wholesale energy markets      as described in Revenue above.  Purchases from Independent Power      Producers, most of which are hydro facilities, decreased resulting from      less rainfall, partly offset by an increase in average      rates.  Purchases from Hydro-Quebec increased during 2007      resulting from an increase in the average energy  price. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Other      purchases increased $10.5 million in 2007 resulting from replacement      energy purchased during the Vermont Yankee outages and derate described      above. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Nuclear      decommissioning costs are associated with our ownership interests in the      Maine Yankee, Connecticut Yankee and Yankee Atomic      plants.  These costs decreased $2.8 million in 2007 due to lower      collection schedules for Connecticut Yankee and Yankee      Atomic.  Decommissioning activities were completed at both      plants during 2007. Maine Yankee decommissioning activity was completed in      2006. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Other      costs decreased $1.4 million principally due to a net accounting deferral      in 2007 versus amortizations in 2006 for Millstone Unit #3 scheduled      refueling outages.  Based on approved regulatory accounting      treatment, we defer the cost of incremental replacement energy costs of      scheduled refueling outages, and amortize those costs through the next      scheduled refueling outage, which typically spans an 18-month      period.  The last refueling outage at Millstone Unit #3 occurred      in April and May 2007. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                                |   | 2008 over/(under)      2007 |   |   | 2007 over/(under)      2006 |   |
|-----------------------------------------------------|--------|-----------------------------|--------|--------|-----------------------------|--------|
|                                                |   | Total      Variance         |   |   | Percent                     |   |   | Total      Variance |   |   | Percent |   |
| Equity      in earnings of affiliates               |   |                        | 9,834  |   |                        |   | * |   |   | $ | 3,190 |   |   |   | 98.5 | % |
| Allowance      for equity funds during construction |   |                        | 281    |   |                        |   | * |   |   |   | (73 | ) |   |   | -60.8 | % |
| Other      income                                   |   |                        | (215   | )      |                        |   | -5.6 | % |   |   | (1,674 | ) |   |   | -30.5 | % |
| Other      deductions                               |   |                        | 2,324  |   |                        |   | 93.7 | % |   |   | 80 |   |   |   | 3.3 | % |
| Income      tax expense                             |   |                        | 4,404  |   |                        |   | * |   |   |   | 21 |   |   |   | 1.5 | % |
| Total      other income and deductions              |   |                        | 3,172  |   |                        |   | 49.9 | % |   | $ | 1,342 |   |   |   | 26.8 | % |

|                                                  |   | 2008 over/(under)      2007 |   |   | 2007 over/(under)      2006 |   |
|-------------------------------------------------------|--------|-----------------------------|--------|--------|-----------------------------|--------|
|                                                  |   | Total      Variance         |   |   | Percent                     |   |   | Total      Variance |   |   | Percent |   |
| Interest      on long-term debt                       |   |                        | 2,581  |   |                        |   | 35.9 | % |   | $ | 1 |   |   |   | 0.0 | % |
| Other      interest                                   |   |                        | 565    |   |                        |   | 42.0 | % |   |   | 270 |   |   |   | 25.1 | % |
| Allowance      for borrowed funds during construction |   |                        | (100   | )      |                        |   | * | % |   |   | 20 |   |   |   | -51.3 | % |
| Total      interest expense                           |   |                        | 3,046  |   |                        |   | 35.7 | % |   | $ | 291 |   |   |   | 3.5 | % |

----

|              |   | 2008   |   |   | 2007   |   |   | 2006 |   |
|-------------------|--------|--------|--------|--------|--------|--------|--------|------|--------|
| Nuclear           |   |   | 50     | %      |   |   | 48     | %    |   |   | 54 | % |
| Hydro             |   |   | 39     | %      |   |   | 39     | %    |   |   | 38 | % |
| Oil      and wood |   |   | 5      | %      |   |   | 6      | %    |   |   | 5 | % |
| Other             |   |   | 6      | %      |   |   | 7      | %    |   |   | 3 | % |
| Total             |   |   | 100    | %      |   |   | 100    | %    |   |   | 100 | % |

----

----

----

----

| §   | A      requirement that, by 2013, new renewable resources must provide      electricity equivalent to 5 percent of the state’s total retail      electricity sales in 2005.  This is in addition to a previously      existing requirement that such resources produce the electricity      equivalent to the state’s incremental sales growth after    2005. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | Expansion      of the state’s net metering law by increasing the size of qualifying      facilities from a capacity of 15 kW to 250 kW, and by authorizing group      net metering for customers within a single utility service      area; |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | A      requirement that Vermont electric utilities install advanced smart      metering equipment capable of sending two-way signals and sufficient to      support advanced time-of-usepricing. |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| §   | An      expansion of the state’s energy efficiency programs from the existing      focus on electricity use to include thermal uses such as oil, propane,      natural gas and wood used to heat homes and businesses.  Funding      for these new programs comes from existing sources, along with expected      revenues from the Regional Greenhouse Gas  Initiative. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| §   | A      state goal for all energy sectors to produce, by the year 2025, 25 percent      of the energy consumed within the state from renewable energy sources,      particularly from Vermont’s farms andforests. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

|                  |                                                                                  |   | 2008   |      |   | 2007   |   |   | 2006   |   |
|-----------------------|---------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|--------|--------|--------|
|                  |              Expires |   | mWh    |      |   | $/mWh  |   |   | mWh    |   |   | $/mWh |   |   | mWh |   |   | $/mWh |   |
| Hydro-Quebec      (a) | 2016                                                                                  |   |   | 937,923   |   |   | $      | 67.88  |   |   |   | 998,411 |   |   | $ | 64.97 |   |   |   | 998,365 |   |   | $ | 64.40 |   |
| VYNPC      (b)        | March      2012                                                                       |   |   | 1,417,144 |   |   | $      | 40.72  |   |   |   | 1,361,754 |   |   | $ | 40.96 |   |   |   | 1,689,390 |   |   | $ | 41.50 |   |

| (a)   | Under      the terms of the Hydro-Quebec contract, there is a defined energy rate      that escalates at the general inflation rate based on the U.S. Gross      National Product Implicit Price Deflator (“GNPIPD”) and capacity rates are      constant with the potential for small reductions if interest rates      decrease below average values set in prior  years. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Under      the terms of the contract with VYNPC the energy price generally ranges      from 3.9 cents to 4.5 cents per kilowatt-hour through      2012.  Effective November 2005, the contract prices are subject      to a “low-market adjuster”mechanism. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                       |   | Forward   |   |   | Forward   |   |   |             |   |   |   |   |
|--------------------------------------------------------------------------------------------|--------|-----------|--------|--------|-----------|--------|--------|------------------|--------|--------|--------|--------|
|                                                                                       |   | Sales     |   |   | Purchase  |   |   | Hydro-Quebec     |   |   |   |   |
|                                                                                       |   | Contracts |   |   | Contracts |   |   | Sellback      #3 |   |   | Total  |   |
| Total      fair value at December 31, 2007 - unrealized loss                               |   | $         | (2,037 | )      |      | $      | (481   | )                |   | $      | (4,592 | )      |   | $ | (7,110 | ) |
| Plus      new contracts entered into during the period                                     |   |      | (440   | )      |      |   | 191    |             |   |   | 0      |   |   |   | (249 | ) |
| Less      amounts settled during the period                                                |   |      | 7,385  |   |      |   | 1,165  |             |   |   | 0      |   |   |   | 8,550 |   |
| Change      in fair value during the period                                                |   |      | 7,845  |   |      |   | (739   | )                |   |   | 523    |   |   |   | 7,629 |   |
| Total      fair value at December 31, 2008 - unrealized (loss) gain,    net                |   | $         | 12,753 |   |      | $      | 136    |             |   | $      | (4,069 | )      |   | $ | 8,820 |   |
|                                                                                       |   |      |   |   |      |   |   |             |   |   |   |   |   |   |   |   |
| Estimated      fair value at December 31, 2008 for changes in projected market      price: |   |      |   |   |      |   |   |             |   |   |   |   |   |   |   |   |
|    10      percent increase                                                 |   | $         | 9,652  |   |      | $      | 150    |             |   | $      | (7,229 | )      |   | $ | 2,573 |   |
|    10      percent decrease                                                 |   | $         | 15,857 |   |      | $      | 122    |             |   | $      | (962   | )      |   | $ | 15,017 |   |

----

|                                                                                           |   | Expected      Maturity Date |   |   |   |   |
|------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|--------|--------|
|                                                                                           |   | 2009                        |   |   | 2010   |   |   | 2011 |   |   | 2012 |   |   | 2013 |   |   | Thereafter |   |   | Total |   |
|    Fixed      Rate ($)                                                          |   | $                           | 11.00  |   |   | $      | 10.80 |   |   | $ | 10.20 |   |   | $ | 9.80 |   |   | $ | 9.80 |   |   | $ | 112.10 |   |   | $ | 163.70 |   |
|    Average      Fixed           Interest Rate      (%) |   |                        | 6.36   | %      |   |   | 6.44 | % |   |   | 6.54 | % |   |   | 6.64 | % |   |   | 6.64 | % |   |   | 6.98 | % |   |   |   |   |
|                                                                                           |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Variable Rate      ($)                                                       |   | $                           | 0.10   |   |   | $      | 0.10 |   |   | $ | 0.10 |   |   | $ | 0.10 |   |   | $ | 0.10 |   |   | $ | 0.10 |   |   | $ | 0.60 |   |
|    Average      Variable           Rate (%)            |   |                        | 0.92   | %      |   |   | 0.92 | % |   |   | 0.92 | % |   |   | 0.92 | % |   |   | 0.92 | % |   |   | 1.00 | % |   |   |   |   |

----

----

| CENTRAL      VERMONT PUBLIC SERVICE CORPORATION               |   |
|---------------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF INCOME                        |   |
| (dollars      in thousands, except per share data)            |   |
|                                                          |   |   |   |   |   |   |   |   |   |
|                                                          |   | For      the year ended December 31 |   |
|                                                          |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Operating      Revenues                                       |   | $ | 342,162 |   |   | $ | 329,107 |   |   | $ | 325,738 |   |
| Operating      Expenses                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Purchased      Power - affiliates                             |   |   | 59,778 |   |   |   | 58,361 |   |   |   | 75,527 |   |
| Purchased      Power - other                                  |   |   | 105,673 |   |   |   | 102,361 |   |   |   | 93,921 |   |
| Production                                                    |   |   | 12,223 |   |   |   | 11,700 |   |   |   | 9,728 |   |
| Transmission      - affiliates                                |   |   | 7,280 |   |   |   | 5,144 |   |   |   | 1,174 |   |
| Transmission      - other                                     |   |   | 18,851 |   |   |   | 16,524 |   |   |   | 13,919 |   |
| Other      operation                                          |   |   | 55,744 |   |   |   | 53,457 |   |   |   | 48,682 |   |
| Maintenance                                                   |   |   | 27,992 |   |   |   | 27,937 |   |   |   | 22,039 |   |
| Depreciation                                                  |   |   | 15,660 |   |   |   | 15,217 |   |   |   | 16,498 |   |
| Taxes      other than income                                  |   |   | 15,653 |   |   |   | 15,140 |   |   |   | 14,358 |   |
| Income      tax expense                                       |   |   | 4,878 |   |   |   | 5,291 |   |   |   | 8,569 |   |
| Total      Operating Expenses                                 |   |   | 323,732 |   |   |   | 311,132 |   |   |   | 304,415 |   |
| Utility      Operating Income                                 |   |   | 18,430 |   |   |   | 17,975 |   |   |   | 21,323 |   |
| Other      Income                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity      in earnings of affiliates                         |   |   | 16,264 |   |   |   | 6,430 |   |   |   | 3,240 |   |
| Allowance      for equity funds during construction           |   |   | 328 |   |   |   | 47 |   |   |   | 120 |   |
| Other      income                                             |   |   | 3,598 |   |   |   | 3,813 |   |   |   | 5,487 |   |
| Other      deductions                                         |   |   | (4,805 | ) |   |   | (2,481 | ) |   |   | (2,401 | ) |
| Income      tax expense                                       |   |   | (5,862 | ) |   |   | (1,458 | ) |   |   | (1,437 | ) |
| Total      Other Income                                       |   |   | 9,523 |   |   |   | 6,351 |   |   |   | 5,009 |   |
| Interest      Expense                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      on long-term debt                               |   |   | 9,778 |   |   |   | 7,197 |   |   |   | 7,196 |   |
| Other      interest                                           |   |   | 1,909 |   |   |   | 1,344 |   |   |   | 1,074 |   |
| Allowance      for borrowed funds during construction         |   |   | (119 | ) |   |   | (19 | ) |   |   | (39 | ) |
| Total      Interest Expense                                   |   |   | 11,568 |   |   |   | 8,522 |   |   |   | 8,231 |   |
| Income      from continuing operations                        |   |   | 16,385 |   |   |   | 15,804 |   |   |   | 18,101 |   |
| Income      from discontinued operations, net of income taxes |   |   | 0 |   |   |   | 0 |   |   |   | 251 |   |
| Net      Income                                               |   |   | 16,385 |   |   |   | 15,804 |   |   |   | 18,352 |   |
| Dividends      declared on preferred stock                    |   |   | 368 |   |   |   | 368 |   |   |   | 368 |   |
| Earnings      available for common stock                      |   | $ | 16,017 |   |   | $ | 15,436 |   |   | $ | 17,984 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      earnings from continuing operations                |   | $ | 1.53 |   |   | $ | 1.52 |   |   | $ | 1.65 |   |
| Basic      earnings from discontinued operations              |   | $ | 0.00 |   |   | $ | 0.00 |   |   | $ | 0.02 |   |
| Basic      Earnings per share                                 |   | $ | 1.53 |   |   | $ | 1.52 |   |   | $ | 1.67 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      earnings from continuing operations              |   | $ | 1.52 |   |   | $ | 1.49 |   |   | $ | 1.64 |   |
| Diluted      earnings from discontinued operations            |   | $ | 0.00 |   |   | $ | 0.00 |   |   | $ | 0.02 |   |
| Diluted      earnings per share                               |   | $ | 1.52 |   |   | $ | 1.49 |   |   | $ | 1.66 |   |
|                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Average      shares of common stock outstanding - basic       |   |   | 10,458,220 |   |   |   | 10,185,930 |   |   |   | 10,756,027 |   |
| Average      shares of common stock outstanding - diluted     |   |   | 10,536,131 |   |   |   | 10,350,191 |   |   |   | 10,827,182 |   |
| Dividends      declared per share of common stock             |   | $ | 0.92 |   |   | $ | 0.92 |   |   | $ | 0.69 |   |

----

| CENTRAL VERMONT PUBLIC SERVICE      CORPORATION                                                                                                                                                      |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF COMPREHENSIVE INCOME                                                                                                                                                 |   |
| (dollars      in thousands)                                                                                                                                                                          |   |
|                                                                                                                                                                                                 |   |
|                                                                                                                                                                                                 |   |
|                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                 |   |   |   |   |   |   |
|                                                                                                                                                                                                 |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Net      Income                                                                                                                                                                                      |   | $ | 16,385 |   |   | $ | 15,804 |   |   | $ | 18,352 |   |
|                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income, net      of tax:                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Defined      benefit pension and postretirement medical plans:                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|   Portion      reclassified through amortizations,    included      in benefit costs and recognized in net income:                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|     Actuarial      losses, net of income taxes of $1 in 2008, $12 in 2007 and $0 in      2006                                                                                    |   |   | 2 |   |   |   | 19 |   |   |   | 0 |   |
|     Prior      service cost, net of income taxes of $9 in 2008 and 2007 and $0 in      2006                                                                                      |   |   | 13 |   |   |   | 13 |   |   |   | 0 |   |
|     Transition      benefit obligation, net of income taxes of $0 in 2008, 2007 and      2006                                                                                    |   |   | 1 |   |   |   | 1 |   |   |   | 0 |   |
|                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|   Portion      reclassified due to adoption of SFAS 158 measurement      provision,    included      in retained earnings                                              |   |   |   |   |   |   |   |   |   |   |   |   |
|     Prior      service cost, net of income taxes of $2 in 2008 and $0 in 2007 and      2006                                                                                      |   |   | 4 |   |   |   | 0 |   |   |   | 0 |   |
|                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|   Change      in funded status of pension, postretirement medical and other benefit      plans,    net      of income taxes of $89 in 2008, $92 in 2007 and $0 in 2006 |   |   | 130 |   |   |   | 133 |   |   |   | 0 |   |
|                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|   Minimum      pension liability adjustment,    net      of income taxes of $0 in 2008 and 2007 and $203 in 2006                                                       |   |   | 0 |   |   |   | 0 |   |   |   | 285 |   |
|                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Defined      benefit pension plans, net                                                                                                                                                              |   |   | 150 |   |   |   | 166 |   |   |   | 285 |   |
|                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment      securities:                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|   Unrealized      holding gain, net of income taxes of $0 in 2008 and 2007 and $60 in      2006                                                                                            |   |   | 0 |   |   |   | 0 |   |   |   | 89 |   |
|   Less      reclassification adjustment for gains included in net income,    net      of income taxes of $0 in 2008 and 2007 and $(45) in 2006                         |   |   | 0 |   |   |   | 0 |   |   |   | (69 | ) |
|                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      income adjustments                                                                                                                                                                |   |   | 150 |   |   |   | 166 |   |   |   | 305 |   |
|                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      comprehensive income                                                                                                                                                                      |   | $ | 16,535 |   |   | $ | 15,970 |   |   | $ | 18,657 |   |

----

| CENTRAL      VERMONT PUBLIC SERVICE CORPORATION                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENTS OF CASH FLOWS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
|                                                                                          (dollars      in thousands) |   | For      the Years Ended December 31 |   |
| Cash      flows provided (used) by:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| OPERATING      ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |
| Net      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | $ | 16,385 |   |   | $ | 15,804 |   |   | $ | 18,352 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|      Equity      in earnings of affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | (16,264 | ) |   |   | (6,430 | ) |   |   | (3,240 | ) |
|      Distributions      received from affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 10,694 |   |   |   | 4,894 |   |   |   | 2,106 |   |
|      Depreciation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 15,660 |   |   |   | 15,217 |   |   |   | 16,498 |   |
|      Deferred      income taxes and investment tax credits                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 16,723 |   |   |   | 2,726 |   |   |   | 3,820 |   |
|      Amortization      of capital leases                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 900 |   |   |   | 873 |   |   |   | 1,096 |   |
|      Regulatory      and other amortization, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | (4,698 | ) |   |   | (5,097 | ) |   |   | (3,354 | ) |
|      Non-cash      employee benefit plan costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 5,641 |   |   |   | 6,794 |   |   |   | 9,997 |   |
|      Other      non-cash expense and (income), net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 6,058 |   |   |   | 3,979 |   |   |   | 413 |   |
|      Changes      in assets and liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|          Increase      in accounts receivable and unbilled revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | (2,454 | ) |   |   | (366 | ) |   |   | (5,456 | ) |
|          Decrease      in accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | (1,740 | ) |   |   | (504 | ) |   |   | (252 | ) |
|          (Decrease)      increase in accounts payable – affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | (1,867 | ) |   |   | 1,183 |   |   |   | 620 |   |
|               Decrease (increase) in other current      assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 1,456 |   |   |   | 614 |   |   |   | (761 | ) |
|          (Increase)      decrease in special deposits and restricted cash for power      collateral                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | (3,580 | ) |   |   | 3,519 |   |   |   | 15,512 |   |
|          Employee      benefit plan funding                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | (7,880 | ) |   |   | (7,878 | ) |   |   | (28,420 | ) |
|          Decrease      in other current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | (5,222 | ) |   |   | (2,362 | ) |   |   | (1,144 | ) |
|          (Increase)      decrease in other long-term assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | (2,178 | ) |   |   | 40 |   |   |   | (169 | ) |
|          Increase      in other long-term liabilities and other                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 766 |   |   |   | 1,086 |   |   |   | 551 |   |
| Net      cash provided by operating activities of continuing    operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 28,400 |   |   |   | 34,092 |   |   |   | 26,169 |   |
| INVESTING      ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|      Construction      and plant expenditures                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | (36,835 | ) |   |   | (23,663 | ) |   |   | (19,504 | ) |
|      Investments      in available-for-sale securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | (1,475 | ) |   |   | (20,797 | ) |   |   | (256,431 | ) |
|      Proceeds      from sale of available-for-sale securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 1,201 |   |   |   | 20,670 |   |   |   | 334,390 |   |
|      Investment      in affiliates (Transco)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   | (3,090 | ) |   |   | (53,000 | ) |   |   | (23,291 | ) |
|      Acquisition      of utility property (Rochester Electric and Vermont Electric      Coop)                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 0 |   |   |   | 0 |   |   |   | (4,306 | ) |
|      Other      investing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | (299 | ) |   |   | 170 |   |   |   | 1,242 |   |
| Net      cash (used for) provided by investing activities of continuing      operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | (40,498 | ) |   |   | (76,620 | ) |   |   | 32,100 |   |
| FINANCING      ACTIVITIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|      Proceeds      from issuance of common stock                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 23,540 |   |   |   | 2,131 |   |   |   | 1,267 |   |
|      Treasury      stock acquisition - tender offer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 0 |   |   |   | 0 |   |   |   | (51,186 | ) |
|      Retirement      of preferred stock subject to mandatory redemption                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | (1,000 | ) |   |   | (1,000 | ) |   |   | (2,000 | ) |
|      Common      and preferred dividends paid                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | (9,868 | ) |   |   | (9,734 | ) |   |   | (10,164 | ) |
|      Proceeds      from issuance of first mortgage bonds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 60,000 |   |   |   | 0 |   |   |   | 0 |   |
|      Repayment      of first mortgage bonds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | (3,000 | ) |   |   | 0 |   |   |   | 0 |   |
|      (Repayment      of) proceeds from short-term bridge loan                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | (53,000 | ) |   |   | 53,000 |   |   |   | 0 |   |
|      Proceeds      from other short-term borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 12,700 |   |   |   | 45,600 |   |   |   | 18,100 |   |
|      Repayments      under other short-term borrowings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | (12,700 | ) |   |   | (45,600 | ) |   |   | (18,100 | ) |
|      Payments      required for unremarketed bonds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | (3,400 | ) |   |   | 0 |   |   |   | 0 |   |
|      Proceeds      from remarketed bonds                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 3,400 |   |   |   | 0 |   |   |   | 0 |   |
|      Debt      issuance and common stock offering costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | (1,054 | ) |   |   | 0 |   |   |   | 0 |   |
|      Other      financing activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | (601 | ) |   |   | (865 | ) |   |   | 37 |   |
| Net      cash provided by (used for) financing activities of continuing      operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 15,017 |   |   |   | 43,532 |   |   |   | (62,046 | ) |
| Net      increase (decrease) in cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 2,919 |   |   |   | 1,004 |   |   |   | (3,777 | ) |
| Cash      and cash equivalents at beginning of the period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | 3,803 |   |   |   | 2,799 |   |   |   | 6,576 |   |
| Cash      and cash equivalents at end of the period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | $ | 6,722 |   |   | $ | 3,803 |   |   | $ | 2,799 |   |

----

| CENTRAL      VERMONT PUBLIC SERVICE CORPORATION                                                                                                       |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED      BALANCE SHEETS                                                                                                                      |   |
| (dollars      in thousands, except share data)                                                                                                        |   |
|                                                                                                                                                  |   |
|                                                                                                                                                  |   | December      31, 2008 |   |   | December      31, 2007 |   |
| ASSETS                                                                                                                                                |   |   |   |   |   |   |
| Utility      plant                                                                                                                                    |   |   |   |   |   |   |
|   Utility      plant, at original cost                                                                                                      |   | $ | 554,506 |   |   | $ | 538,229 |   |
|   Less      accumulated depreciation                                                                                                        |   |   | 244,219 |   |   |   | 235,465 |   |
|   Utility      plant, at original cost, net of accumulated depreciation                                                                     |   |   | 310,287 |   |   |   | 302,764 |   |
|   Property      under capital leases, net                                                                                                   |   |   | 6,133 |   |   |   | 6,788 |   |
|   Construction      work-in-progress                                                                                                        |   |   | 24,632 |   |   |   | 9,611 |   |
|   Nuclear      fuel, net                                                                                                                    |   |   | 1,475 |   |   |   | 1,105 |   |
| Total      utility plant, net                                                                                                                         |   |   | 342,527 |   |   |   | 320,268 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Investments      and other assets                                                                                                                     |   |   |   |   |   |   |   |   |
|   Investments      in affiliates                                                                                                            |   |   | 102,232 |   |   |   | 93,452 |   |
|   Non-utility      property, less accumulated depreciation    ($3,657      in 2008 and $3,681 in 2007)                  |   |   | 1,786 |   |   |   | 1,646 |   |
|   Millstone      decommissioning trust fund                                                                                                 |   |   | 4,203 |   |   |   | 5,645 |   |
|   Other                                                                                                                                     |   |   | 5,469 |   |   |   | 7,504 |   |
| Total      investments and other assets                                                                                                               |   |   | 113,690 |   |   |   | 108,247 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Current      assets                                                                                                                                   |   |   |   |   |   |   |   |   |
|   Cash      and cash equivalents                                                                                                            |   |   | 6,722 |   |   |   | 3,803 |   |
|   Restricted      cash                                                                                                                      |   |   | 3,636 |   |   |   | 62 |   |
|   Special      deposits                                                                                                                     |   |   | 1,006 |   |   |   | 1,000 |   |
|   Accounts      receivable, less allowance for uncollectible accounts         ($2,184 in 2008 and $1,751 in 2007)            |   |   | 23,176 |   |   |   | 24,086 |   |
|   Accounts      receivable - affiliates, less allowance for uncollectible      accounts         ($0 in 2008 and $48 in 2007) |   |   | 76 |   |   |   | 254 |   |
|   Unbilled      revenues                                                                                                                    |   |   | 18,546 |   |   |   | 17,665 |   |
|   Materials      and supplies, at average cost                                                                                              |   |   | 6,299 |   |   |   | 5,461 |   |
|   Prepayments                                                                                                                               |   |   | 17,367 |   |   |   | 8,942 |   |
|   Deferred      income taxes                                                                                                                |   |   | 0 |   |   |   | 3,638 |   |
|   Power-related      derivatives                                                                                                            |   |   | 12,758 |   |   |   | 707 |   |
|   Other      current assets                                                                                                                 |   |   | 1,269 |   |   |   | 1,081 |   |
|   Total current      assets                                                                                                                 |   |   | 90,855 |   |   |   | 66,699 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |
| Deferred      charges and other assets                                                                                                                |   |   |   |   |   |   |   |   |
|   Regulatory      assets                                                                                                                    |   |   | 63,474 |   |   |   | 31,988 |   |
|   Other      deferred charges - regulatory                                                                                                  |   |   | 9,980 |   |   |   | 8,988 |   |
|   Other      deferred charges and other assets                                                                                              |   |   | 5,467 |   |   |   | 4,124 |   |
|   Power-related      derivatives                                                                                                            |   |   | 133 |   |   |   | 0 |   |
| Total      deferred charges and other assets                                                                                                          |   |   | 79,054 |   |   |   | 45,100 |   |
|                                                                                                                                                  |   |   |   |   |   |   |   |   |
| TOTAL      ASSETS                                                                                                                                     |   | $ | 626,126 |   |   | $ | 540,314 |   |

----

| CENTRAL      VERMONT PUBLIC SERVICE CORPORATION                                                                                                                                                                                                                                           |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED      BALANCE SHEETS                                                                                                                                                                                                                                                          |   |
| (dollars      in thousands, except share data)                                                                                                                                                                                                                                            |   |
|                                                                                                                                                                                                                                                                                      |   |
|                                                                                                                                                                                                                                                                                      |   | December      31, 2008 |   |   | December      31, 2007 |   |
| CAPITALIZATION      AND LIABILITIES                                                                                                                                                                                                                                                       |   |   |   |   |   |   |
| Capitalization                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |
|   Common      stock, $6 par value, 19,000,000 shares      authorized, 13,750,717 issued and 11,574,825 outstanding at                 December 31, 2008 and 12,474,687      issued and 10,244,559 outstanding at December 31, 2007 |   | $ | 82,504 |   |   | $ | 74,848 |   |
|   Other      paid-in capital                                                                                                                                                                                                                                                    |   |   | 71,489 |   |   |   | 56,324 |   |
|   Accumulated      other comprehensive loss                                                                                                                                                                                                                                     |   |   | (228 | ) |   |   | (378 | ) |
|   Treasury      stock, at cost, 2,175,892 shares at December 31, 2008      and  2,230,128 shares at December 31, 2007                                                                                                                                                 |   |   | (49,501 | ) |   |   | (50,734 | ) |
|   Retained      earnings                                                                                                                                                                                                                                                        |   |   | 115,215 |   |   |   | 108,747 |   |
| Total      common stock equity                                                                                                                                                                                                                                                            |   |   | 219,479 |   |   |   | 188,807 |   |
|   Preferred      and preference stock not subject to mandatory redemption                                                                                                                                                                                                       |   |   | 8,054 |   |   |   | 8,054 |   |
|   Preferred      stock subject to mandatory redemption                                                                                                                                                                                                                          |   |   | 1,000 |   |   |   | 2,000 |   |
|   Long-term      debt                                                                                                                                                                                                                                                           |   |   | 167,500 |   |   |   | 112,950 |   |
|   Capital      lease obligations                                                                                                                                                                                                                                                |   |   | 5,173 |   |   |   | 5,889 |   |
| Total      capitalization                                                                                                                                                                                                                                                                 |   |   | 401,206 |   |   |   | 317,700 |   |
|                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Current      liabilities                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |
|   Current      portion of preferred stock subject to mandatory redemption                                                                                                                                                                                                       |   |   | 1,000 |   |   |   | 1,000 |   |
|   Current      portion of long-term debt                                                                                                                                                                                                                                        |   |   | 5,450 |   |   |   | 3,000 |   |
|   Accounts      payable                                                                                                                                                                                                                                                         |   |   | 3,549 |   |   |   | 6,253 |   |
|   Accounts      payable - affiliates                                                                                                                                                                                                                                            |   |   | 11,338 |   |   |   | 13,205 |   |
|   Notes      payable                                                                                                                                                                                                                                                            |   |   | 10,800 |   |   |   | 63,800 |   |
|   Nuclear      decommissioning costs                                                                                                                                                                                                                                            |   |   | 1,431 |   |   |   | 2,309 |   |
|   Power-related      derivatives                                                                                                                                                                                                                                                |   |   | 2 |   |   |   | 3,225 |   |
|   Other      current liabilities                                                                                                                                                                                                                                                |   |   | 33,645 |   |   |   | 20,761 |   |
| Total      current liabilities                                                                                                                                                                                                                                                            |   |   | 67,215 |   |   |   | 113,553 |   |
|                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Deferred      credits and other liabilities                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
|   Deferred      income taxes                                                                                                                                                                                                                                                    |   |   | 45,314 |   |   |   | 33,666 |   |
|   Deferred      investment tax credits                                                                                                                                                                                                                                          |   |   | 2,962 |   |   |   | 3,341 |   |
|   Nuclear      decommissioning costs                                                                                                                                                                                                                                            |   |   | 8,618 |   |   |   | 9,580 |   |
|   Asset      retirement obligations                                                                                                                                                                                                                                             |   |   | 3,302 |   |   |   | 3,200 |   |
|   Accrued      pension and benefit obligations                                                                                                                                                                                                                                  |   |   | 51,211 |   |   |   | 19,874 |   |
|   Power-related      derivatives                                                                                                                                                                                                                                                |   |   | 4,069 |   |   |   | 4,592 |   |
|   Other      deferred credits - regulatory                                                                                                                                                                                                                                      |   |   | 17,696 |   |   |   | 9,395 |   |
|   Other      deferred credits and other liabilities                                                                                                                                                                                                                             |   |   | 24,533 |   |   |   | 25,413 |   |
| Total      deferred credits and other liabilities                                                                                                                                                                                                                                         |   |   | 157,705 |   |   |   | 109,061 |   |
|                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Commitments      and contingencies                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| TOTAL      CAPITALIZATION AND LIABILITIES                                                                                                                                                                                                                                                 |   | $ | 626,126 |   |   | $ | 540,314 |   |

----

| CENTRAL VERMONT PUBLIC      SERVICE CORPORATION                                          |   |
|------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED      STATEMENT OF CHANGES IN COMMON STOCK EQUITY                            |   |
| (in      thousands, except share data)                                                   |   |
|                                                                                     |   | Common      Stock |   |   |   |   |   | Accumulated |   |   | Treasury      Stock |   |   |   |   |   |   |   |
|                                                                                     |   |   |   |   |   |   |   | Other |   |   | Other |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                     |   | Shares |   |   |   |   |   | Paid-in |   |   | Comprehensive |   |   |   |   |   |   |   |   | Retained |   |   |   |   |
|                                                                                     |   | Issued |   |   | Amount |   |   | Capital |   |   | Loss |   |   | Shares |   |   | Amount |   |   | Earnings |   |   | Total |   |
| Balance,      December 31, 2005                                                          |   |   | 12,283,405 |   |   | $ | 73,695 |   |   | $ | 52,508 |   |   | $ | (414 | ) |   |   | 0 |   |   | $ | 0 |   |   | $ | 91,581 |   |   | $ | 217,370 |   |
| Net      Income                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 18,352 |   |   |   | 18,352 |   |
| Other      comprehensive income                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 305 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 305 |   |
| Adjust      to initially apply SFAS 158,      net      of tax                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (435 | ) |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (435 | ) |
| Common      stock reacquired                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 2,249,975 |   |   |   | (51,186 | ) |   |   |   |   |   |   | (51,186 | ) |
| Stock      options exercised                                                             |   |   | 79,335 |   |   |   | 476 |   |   |   | 920 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,396 |   |
| Share-based      compensation:                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Common      and nonvested shares                                 |   |   | 20,061 |   |   |   | 126 |   |   |   | 295 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 421 |   |
|     Performance      share plans                                     |   |   |   |   |   |   |   |   |   |   | 478 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 478 |   |
| Dividends      declared:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Common      - $0.69 per share                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (6,971 | ) |   |   | (6,971 | ) |
|     Non-redeemable      preferred stock                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (368 | ) |   |   | (368 | ) |
| Amortization      of preferred stock issuance      expenses                              |   |   |   |   |   |   |   |   |   |   | 17 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 17 |   |
| Loss      on reacquisition of capital stock                                              |   |   |   |   |   |   |   |   |   | 7 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (34 | ) |   |   | (27 | ) |
| Balance,      December 31, 2006                                                          |   |   | 12,382,801 |   |   | $ | 74,297 |   |   | $ | 54,225 |   |   | $ | (544 | ) |   |   | 2,249,975 |   |   | $ | (51,186 | ) |   | $ | 102,560 |   |   | $ | 179,352 |   |
| Cumulative      effect of adoption of FIN 48                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 120 |   |   |   | 120 |   |
| Adjusted      balance at Jan. 1, 2007                                                    |   | 12,382,801 |   |   | $ | 74,297 |   |   | $ | 54,225 |   |   | $ | (544 | ) |   |   | 2,249,975 |   |   | $ | (51,186 | ) |   | $ | 102,680 |   |   | $ | 179,472 |   |
| Net      Income                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 15,804 |   |   |   | 15,804 |   |
| Other      comprehensive income                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 166 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 166 |   |
| Dividend      reinvestment plan                                                          |   |   | 9,721 |   |   |   | 58 |   |   |   | 475 |   |   |   |   |   |   |   | (19,847 | ) |   |   | 452 |   |   |   |   |   |   |   | 985 |   |
| Stock      options exercised                                                             |   |   | 75,775 |   |   |   | 455 |   |   |   | 1,097 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,552 |   |
| Share-based      compensation:                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Common      and nonvested shares                                 |   |   | 6,390 |   |   |   | 38 |   |   |   | 174 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 212 |   |
|     Performance      share plans                                     |   |   |   |   |   |   |   |   |   |   | 333 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 333 |   |
| Dividends      declared:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Common      - $0.92 per share                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (9,366 | ) |   |   | (9,366 | ) |
|     Non-redeemable      preferred stock                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (368 | ) |   |   | (368 | ) |
| Amortization      of preferred stock issuance      expenses                              |   |   |   |   |   |   |   |   |   |   | 17 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 17 |   |
| Loss      on reacquisition of capital stock                                              |   |   |   |   |   |   |   |   |   | 3 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (3 | ) |   |   |   |   |
| Balance,      December 31, 2007                                                          |   |   | 12,474,687 |   |   | $ | 74,848 |   |   | $ | 56,324 |   |   | $ | (378 | ) |   |   | 2,230,128 |   |   | $ | (50,734 | ) |   | $ | 108,747 |   |   | $ | 188,807 |   |
| Adjust      to initially apply SFAS 158      measurement      provision,      net of tax |   |   |   |   |   |   |   |   |   |   |   |   |   | 4 |   |   |   |   |   |   |   |   |   |   |   | (46 | ) |   |   | (42 | ) |
| Net      income                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 16,385 |   |   |   | 16,385 |   |
| Other      comprehensive income                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 146 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 146 |   |
| Common      stock issuance, net of issuance      costs                                   |   |   | 1,190,000 |   |   |   | 7,140 |   |   |   | 13,760 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 20,900 |   |
| Dividend      reinvestment plan                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (54,236 | ) |   |   | 1,233 |   |   |   |   |   |   |   | 1,233 |   |
| Stock      options exercised                                                             |   |   | 67,050 |   |   |   | 402 |   |   |   | 882 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 1,284 |   |
| Share-based      compensation:                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      & nonvested shares                                                       |   |   | 3,891 |   |   |   | 23 |   |   |   | 65 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 88 |   |
| Performance      share plans                                                             |   |   | 15,089 |   |   |   | 91 |   |   |   | 418 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 509 |   |
| Dividends      declared:                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Common      - $0.92 per share                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (9,500 | ) |   |   | (9,500 | ) |
| Cumulative      non-redeemable preferred      stock                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (368 | ) |   |   | (368 | ) |
| Amortization      of preferred stock issuance      expense                               |   |   |   |   |   |   |   |   |   |   | 17 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 17 |   |
| Gain      (loss) on capital stock                                                        |   |   |   |   |   |   |   |   |   |   | 23 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (3 | ) |   |   | 20 |   |
| Balance,      December 31, 2008                                                          |   |   | 13,750,717 |   |   | $ | 82,504 |   |   | $ | 71,489 |   |   | $ | (228 | ) |   |   | 2,175,892 |   |   | $ | (49,501 | ) |   | $ | 115,215 |   |   | $ | 219,479 |   |

----

----

|                                                                       |   | 2008   |   |   | 2007   |   |
|----------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Balance      at January 1                                                  |   | $      | 1,870  |   |   | $      | 669 |   |
| Reductions      from lapse of the statute of limitations                   |   |   | (74    | )      |   |   | (39 | ) |
| Reductions      due to the passage of time (depreciation)                  |   |   | (134   | )      |   |   | 0 |   |
| Gross      amount of increase as a result of current year tax    positions |   |   | 0      |   |   |   | 1,240 |   |
| Balance      at December 31                                                |   | $      | 1,662  |   |   | $      | 1,870 |   |

----

----

|                                                                               |   | 2008   |     |   | 2007   |   |
|------------------------------------------------------------------------------------|--------|--------|----------|--------|--------|--------|
| Wholly      owned electric plant in service:                                       |   |   |     |   |   |   |
|   Distribution                                                           |   | $      | 301,070  |   |   | $      | 288,548 |   |
|   Hydro      facilities                                                  |   |   | 48,616   |   |   |   | 47,759 |   |
|   Transmission                                                           |   |   | 45,044   |   |   |   | 43,230 |   |
|   General                                                                |   |   | 34,788   |   |   |   | 33,572 |   |
|   Intangible      plant                                                  |   |   | 6,369    |   |   |   | 6,776 |   |
|   Other                                                                  |   |   | 4,693    |   |   |   | 4,576 |   |
|      Subtotal      wholly owned electric plant in service |   |   | 440,580  |   |   |   | 424,461 |   |
| Jointly      owned generation and transmission units                               |   |   | 111,915  |   |   |   | 110,830 |   |
| Completed      construction                                                        |   |   | 1,968    |   |   |   | 2,895 |   |
| Held      for future use                                                           |   |   | 43       |   |   |   | 43 |   |
|    Utility      plant, at original cost                             |   |   | 554,506  |   |   |   | 538,229 |   |
| Accumulated      depreciation                                                      |   |   | (244,219 | )      |   |   | (235,465 | ) |
| Property      under capital leases, net                                            |   |   | 6,133    |   |   |   | 6,788 |   |
| Construction      work-in-progress                                                 |   |   | 24,632   |   |   |   | 9,611 |   |
| Nuclear      fuel, net                                                             |   |   | 1,475    |   |   |   | 1,105 |   |
| Total      Utility Plant, net                                                      |   | $      | 342,527  |   |   | $      | 320,268 |   |

|                                                   |   | 2008   |   |   | 2007   |   |
|--------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Asset      retirement obligations at January 1         |   | $      | 3,200  |   |   | $      | 3,041 |   |
|  Revisions      in estimated cash flows           |   |   | (55    | )      |   |   | (2 | ) |
|  Accretion                                        |   |   | 159    |   |   |   | 235 |   |
|  Liabilities      settled during the period       |   |   | (2     | )      |   |   | (74 | ) |
|  Asset      retirement obligations at December 31 |   | $      | 3,302  |   |   | $      | 3,200 |   |

----

----

|                                                       |   | AOCL      |   |
|------------------------------------------------------------|--------|-----------|--------|
|                                                       |   | After-tax |   |
| Balance      at December 31, 2006                          |   | $         | (544   | ) |
| Pension      and postretirement medical benefit costs, net |   |      | 166    |   |
| Balance      at December 31, 2007                          |   | $         | (378   | ) |
| Pension      and postretirement medical benefit costs, net |   |      | 150    |   |
| Balance      at December 31, 2008                          |   | $         | (228   | ) |

|                                                                  |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|-----------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Interest      on temporary investments                                |   | $      | 257    |   |   | $      | 273    |   |   | $ | 1,603 |   |
| Non-utility      revenue and non-operating rental income              |   |   | 1,901  |   |   |   | 1,842  |   |   |   | 1,878 |   |
| Amortization      of contributions in aid of construction - tax adder |   |   | 991    |   |   |   | 951    |   |   |   | 888 |   |
| Other      interest and dividends                                     |   |   | 148    |   |   |   | 372    |   |   |   | 511 |   |
| Gain      on sale of non-utility property                             |   |   | 7      |   |   |   | 105    |   |   |   | 317 |   |
| Miscellaneous      other income                                       |   |   | 294    |   |   |   | 270    |   |   |   | 290 |   |
| Total                                                                 |   | $      | 3,598  |   |   | $      | 3,813  |   |   | $ | 5,487 |   |

|                                                  |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|-------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Supplemental      retirement benefits and insurance   |   | $      | 3,041  |   |   | $      | 785    |   |   | $ | 568 |   |
| Non-utility      expenses                             |   |   | 1,294  |   |   |   | 1,183  |   |   |   | 1,281 |   |
| Realized      losses on available-for-sale securities |   |   | 0      |   |   |   | 0      |   |   |   | 151 |   |
| Miscellaneous      other deductions                   |   |   | 470    |   |   |   | 513    |   |   |   | 401 |   |
| Total                                                 |   | $      | 4,805  |   |   | $      | 2,481  |   |   | $ | 2,401 |   |

|          |   | 2008   |   |   | 2007   |   |
|---------------|--------|--------|--------|--------|--------|--------|
| Taxes         |   | $      | 14,924 |   |   | $      | 5,361 |   |
| Insurance     |   |   | 1,310  |   |   |   | 2,869 |   |
| Miscellaneous |   |   | 1,133  |   |   |   | 712 |   |
| Total         |   | $      | 17,367 |   |   | $      | 8,942 |   |

----

|                                                 |   | 2008   |   |   | 2007   |   |
|------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Deferred      compensation plans and other           |   | $      | 2,623  |   |   | $      | 2,655 |   |
| Accrued      employee-related costs                  |   |   | 4,946  |   |   |   | 4,367 |   |
| Other      taxes and Energy Efficiency Utility       |   |   | 5,882  |   |   |   | 3,264 |   |
| Cash      concentration account - outstanding checks |   |   | 3,701  |   |   |   | 740 |   |
| Obligation      under capital leases                 |   |   | 942    |   |   |   | 899 |   |
| December      2008 storm accrual                     |   |   | 3,491  |   |   |   | 0 |   |
| Miscellaneous      accruals                          |   |   | 12,060 |   |   |   | 8,836 |   |
| Total                                                |   | $      | 33,645 |   |   | $      | 20,761 |   |

|                                                 |   | 2008   |   |   | 2007   |   |
|------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Environmental      reserve                           |   | $      | 973    |   |   | $      | 1,097 |   |
| Non-legal      removal costs                         |   |   | 9,954  |   |   |   | 8,990 |   |
| Contribution      in aid of construction - tax adder |   |   | 5,210  |   |   |   | 5,423 |   |
| Reserve      for loss on power contract              |   |   | 7,175  |   |   |   | 8,371 |   |
| Accrued      income taxes and interest               |   |   | 683    |   |   |   | 718 |   |
| Provision      for rate refund                       |   |   | 234    |   |   |   | 778 |   |
| Other                                                |   |   | 304    |   |   |   | 36 |   |
| Total                                                |   | $      | 24,533 |   |   | $      | 25,413 |   |

|                                       |   | 2008 |   |   | 2007   |   |   | 2006   |   |
|--------------------------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|
| Interest      (net of amounts capitalized) |   | $    | 10,716 |   |   | $      | 8,073  |   |   | $ | 8,109 |   |
| Income      taxes (net of refunds)         |   | $    | 3,142  |   |   | $      | 6,162  |   |   | $ | 6,300 |   |

----

----

----

|                                                                     |   | 2008   |       |   | 2007   |   |       | 2006   |   |
|--------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Numerator for basic      and diluted EPS:                                |   |   |       |   |   |   |       |   |   |
| Income      from continuing operations                                   |   | $      | 16,385     |   |   | $      | 15,804     |   |   | $ | 18,101 |   |
| Dividends      declared on preferred stock                               |   |   | 368        |   |   |   | 368        |   |   |   | 368 |   |
| Net      income from continuing operations available for common    stock |   | $      | 16,017     |   |   | $      | 15,436     |   |   | $ | 17,733 |   |
|                                                                     |   |   |       |   |   |   |       |   |   |   |   |   |
| Denominators for basic      and diluted EPS:                             |   |   |       |   |   |   |       |   |   |   |   |   |
| Weighted-average      basic shares of common stock outstanding           |   |   | 10,458,220 |   |   |   | 10,185,930 |   |   |   | 10,756,027 |   |
|    Dilutive      effect of stock options                  |   |   | 55,525     |   |   |   | 132,302    |   |   |   | 66,971 |   |
|    Dilutive      effect of performance shares             |   |   | 22,386     |   |   |   | 31,959     |   |   |   | 4,184 |   |
| Weighted-average      diluted shares of common stock outstanding         |   |   | 10,536,131 |   |   |   | 10,350,191 |   |   |   | 10,827,182 |   |

|                                          |   |      |   |   | Investment          |   |    | Equity      in Earnings |   |
|-----------------------------------------------|--------|-----------|--------|--------|---------------------|--------|---------|-------------------------|--------|
|                                          |   |      |   |   | At      December 31 |   |    | As      of December 31  |   |
|                                          |   | Direct    |   |   |                |   |    |                    |   |   |   |   |   |   |   |   |   |   |
|                                          |   | Ownership |   |   | 2008                |   |    | 2007                    |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Vermont      Electric Power Company, Inc.:    |   |      |   |   |                |   |    |                    |   |   |   |   |   |   |   |   |   |   |
|    Common      stock           |   |      | 47.05  | %      |                | $      | 11,257  |                    |   | $ | 11,257 |   |   |   |   |   |   |   |   |   |   |
|    Preferred      stock        |   |      | 48.03  | %      |                | $      | 267     |                    |   | $ | 277 |   |   |   |   |   |   |   |   |   |   |
|      Subtotal        |   |      |   |   |                |   | 11,524  |                    |   |   | 11,534 |   |   | $ | 1,296 |   |   | $ | 1,404 |   |   | $ | 1,324 |   |
| Vermont      Transco LLC (a)                  |   |      | 33.02  | %      |                |   | 87,597  |                    |   |   | 78,784 |   |   |   | 14,806 |   |   |   | 4,482 |   |   |   | 1,500 |   |
| Vermont      Yankee Nuclear Power Corporation |   |      | 58.85  | %      |                |   | 2,763   |                    |   |   | 2,804 |   |   |   | 144 |   |   |   | 431 |   |   |   | 441 |   |
| Connecticut      Yankee Atomic Power Company  |   |      | 2.00   | %      |                |   | 259     |                    |   |   | 250 |   |   |   | 9 |   |   |   | 94 |   |   |   | (61 | ) |
| Maine      Yankee Atomic Power Company        |   |      | 2.00   | %      |                |   | 34      |                    |   |   | 29 |   |   |   | 6 |   |   |   | 8 |   |   |   | 31 |   |
| Yankee      Atomic Electric Company           |   |      | 3.50   | %      |                |   | 55      |                    |   |   | 51 |   |   |   | 3 |   |   |   | 11 |   |   |   | 5 |   |
| Total      Investments in Affiliates          |   |      |   |   |                | $      | 102,232 |                    |   | $ | 93,452 |   |   | $ | 16,264 |   |   | $ | 6,430 |   |   | $ | 3,240 |   |

----

|                                                        |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|-------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Operating      revenues                                     |   | $      | 75,660 |   |   | $      | 51,911 |   |   | $ | 35,808 |   |
| Operating      income                                       |   | $      | 40,088 |   |   | $      | 21,922 |   |   | $ | 13,467 |   |
|                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Income      before non-controlling interest and income tax  |   | $      | 35,688 |   |   | $      | 13,955 |   |   | $ | 8,000 |   |
| Less      members’ non-controlling interest in income |   |   | 30,712 |   |   |   | 9,483  |   |   |   | 3,245 |   |
| Less      income tax                                        |   |   | 2,175  |   |   |   | 1,661  |   |   |   | 1,888 |   |
| Net      income                                             |   | $      | 2,801  |   |   | $      | 2,811  |   |   | $ | 2,867 |   |

|                                                                 |   | 2008   |    |   | 2007   |   |
|----------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Current      assets                                                  |   | $      | 34,687  |   |   | $      | 50,467 |   |
| Non-current      assets                                              |   |   | 496,316 |   |   |   | 395,923 |   |
| Total      assets                                                    |   |   | 531,003 |   |   |   | 446,390 |   |
| Less:                                                                |   |   |    |   |   |   |   |   |
|     Current      liabilities                     |   |   | 63,725  |   |   |   | 34,384 |   |
|     Non-current      liabilities                 |   |   | 220,443 |   |   |   | 215,014 |   |
|     Members’      non-controlling interest |   |   | 222,409 |   |   |   | 172,592 |   |
| Net      assets                                                      |   | $      | 24,426  |   |   | $      | 24,400 |   |

|                    |   | 2008 |   |   | 2007   |   |   | 2006   |   |
|-------------------------|--------|------|--------|--------|--------|--------|--------|--------|--------|
| Operating      revenues |   | $    | 75,200 |   |   | $      | 51,466 |   |   | $ | 18,330 |   |
| Operating      income   |   | $    | 40,088 |   |   | $      | 21,922 |   |   | $ | 7,950 |   |
| Net      income         |   | $    | 35,647 |   |   | $      | 13,904 |   |   | $ | 5,527 |   |

|                                                                 |   | 2008   |    |   | 2007   |   |
|----------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Current      assets                                                  |   | $      | 33,791  |   |   | $      | 39,354 |   |
| Non-current      assets                                              |   |   | 485,405 |   |   |   | 389,351 |   |
| Total      assets                                                    |   |   | 519,196 |   |   |   | 428,705 |   |
| Less:                                                                |   |   |    |   |   |   |   |   |
|     Current      liabilities                     |   |   | 49,179  |   |   |   | 21,120 |   |
|     Non-current      liabilities                 |   |   | 210,339 |   |   |   | 209,383 |   |
|     Mandatorily      redeemable membership units |   |   | 10,000  |   |   |   | 0 |   |
| Net      assets                                                      |   | $      | 249,678 |   |   | $      | 198,202 |   |

----

|                    |   | 2008 |    |   | 2007   |   |    | 2006   |   |
|-------------------------|--------|------|---------|--------|--------|--------|---------|--------|--------|
| Operating      revenues |   | $    | 166,104 |   |   | $      | 160,143 |   |   | $ | 201,325 |   |
| Operating      income   |   | $    | (543    | )      |   | $      | 3,130   |   |   | $ | 3,513 |   |
| Net      income         |   | $    | 245     |   |   | $      | 733     |   |   | $ | 748 |   |

|                                                 |   | 2008   |    |   | 2007   |   |
|------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Current      assets                                  |   | $      | 28,102  |   |   | $      | 31,121 |   |
| Non-current      assets                              |   |   | 140,291 |   |   |   | 135,092 |   |
| Total      assets                                    |   |   | 168,393 |   |   |   | 166,213 |   |
| Less:                                                |   |   |    |   |   |   |   |   |
|     Current      liabilities     |   |   | 16,009  |   |   |   | 16,325 |   |
|     Non-current      liabilities |   |   | 147,689 |   |   |   | 145,123 |   |
| Net      assets                                      |   | $      | 4,695   |   |   | $      | 4,765 |   |

----

|                    |   | Remaining      Obligations |   |   | Revenue      Requirements |   |   | Company      Share |   |
|-------------------------|--------|----------------------------|--------|--------|---------------------------|--------|--------|--------------------|--------|
| Maine      Yankee       |   | $                          | 123.9  |   |                      | $      | 67.3   |               |   | $ | 1.3 |   |
| Connecticut      Yankee |   | $                          | 152.9  |   |                      | $      | 312.1  |               |   | $ | 6.2 |   |
| Yankee      Atomic      |   | $                          | 106.1  |   |                      | $      | 70.5   |               |   | $ | 2.5 |   |

----

----

|                                                                                 |   | 2008     |    |   | 2007   |   |
|--------------------------------------------------------------------------------------|--------|----------|---------|--------|--------|--------|
|                                                                                 |   | Carrying |    |   | Fair   |   |   | Carrying |   |   | Fair |   |
|                                                                                 | Amount |     |    | Value  |   |   | Amount |   |   | Value |   |
| Power      contract derivative assets (includes current portion)                     |   | $        | 12,891  |   |   | $      | 12,891 |   |   | $ | 707 |   |   | $ | 707 |   |
| Power      contract derivative liabilities (includes current portion)                |   | $        | 4,071   |   |   | $      | 4,071 |   |   | $ | 7,817 |   |   | $ | 7,817 |   |
| Preferred      stock subject to mandatory redemption (includes current      portion) |   | $        | 2,000   |   |   | $      | 2,003 |   |   | $ | 3,000 |   |   | $ | 2,975 |   |
|                                                                                 |   |     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term      debt:                                                                 |   |     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    First      mortgage bonds (includes current portion)               |   | $        | 167,500 |   |   | $      | 159,172 |   |   | $ | 110,500 |   |   | $ | 114,279 |   |
|    New      Hampshire Industrial Development Authority Bonds          |   | $        | 5,450   |   |   | $      | 5,383 |   |   | $ | 5,450 |   |   | $ | 5,371 |   |

----

|                                                                     |   | 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 |   |

----

|                                                                                       |   | 2008   |   |
|--------------------------------------------------------------------------------------------|--------|--------|--------|
| Balance      at Beginning of Period                                                        |   | $      | (7,110 | ) |
|      Gains      and losses (realized and unrealized)              |   |   | 7,189  |   |
|      Purchases,      sales, issuances and net settlements         |   |   | 8,741  |   |
| Balance      at December 31                                                                |   | $      | 8,820  |   |
|                                                                                       |   |   |   |   |
| Net      realized (losses) gains relating to instruments still held during the      period |   | $      | 0      |   |

----

|                                |   | 2008      |   |   | 2007       |   |
|-------------------------------------|--------|-----------|--------|--------|------------|--------|
|                                |   | Amortized |   |   | Unrealized |   |   | Unrealized |   |   | Estimated |   |   | Amortized |   |   | Unrealized |   |   | Unrealized |   |   | Estimated |   |
| Security      Types                 |   | Cost      |   |   | Gains      |   |   | Losses |   |   | Fair      Value |   |   | Cost |   |   | Gains |   |   | Losses |   |   | Fair      Value |   |
| Equity      Securities              |   | $         | 2,406  |   |       | $      | 240 |   |   | $ | 0 |   |   | $ | 2,646 |   |   | $ | 2,691 |   |   | $ | 1,467 |   |   | $ | 0 |   |   | $ | 4,158 |   |
| Debt      Securities                |   |      | 1,407  |   |       |   | 90 |   |   |   | 0 |   |   |   | 1,497 |   |   |   | 1,413 |   |   |   | 44 |   |   |   | 0 |   |   |   | 1,457 |   |
| Cash      and other                 |   |      | 60     |   |       |   | 0 |   |   |   | 0 |   |   |   | 60 |   |   |   | 30 |   |   |   | 0 |   |   |   | 0 |   |   |   | 30 |   |
|      Total |   | $         | 3,873  |   |       | $      | 330 |   |   | $ | 0 |   |   | $ | 4,203 |   |   | $ | 4,134 |   |   | $ | 1,511 |   |   | $ | 0 |   |   | $ | 5,645 |   |

|                 |   | Fair      value of debt securities at contractual maturity dates |   |
|----------------------|--------|------------------------------------------------------------------|--------|
|                 |   | Less      than 1 year                                            |   |   | 1      to 5 years |   |   | 5      to 10 years |   |   | After      10 years |   |   | Total |   |
| Debt      Securities |   | $                                                                | 42     |   |   | $ | 245 |   |   | $ | 320 |   |   | $ | 890 |   |   | $ | 1,497 |   |

----

----

|                                                     |   | 2008   |   |   | 2007   |   |
|----------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Regulatory      assets                                   |   |   |   |   |   |   |
| Pension      and postretirement medical costs - SFAS 158 |   | $      | 46,911 |   |   | $      | 14,673 |   |
| Nuclear      plant dismantling costs                     |   |   | 10,049 |   |   |   | 11,889 |   |
| Nuclear      refueling outage costs - Millstone Unit #3  |   |   | 1,347  |   |   |   | 820 |   |
| Income      taxes                                        |   |   | 4,115  |   |   |   | 3,757 |   |
| Asset      retirement obligations and other              |   |   | 1,052  |   |   |   | 849 |   |
| Total      Regulatory assets                             |   |   | 63,474 |   |   |   | 31,988 |   |
|                                                     |   |   |   |   |   |   |   |   |
| Other deferred charges      - regulatory                 |   |   |   |   |   |   |   |   |
| Vermont      Yankee sale costs (tax)                     |   |   | 673    |   |   |   | 673 |   |
| Deferral      of December 2008 storm costs               |   |   | 4,059  |   |   |   | 0 |   |
| Unrealized      losses on power-related derivatives      |   |   | 4,070  |   |   |   | 7,817 |   |
| Other                                                    |   |   | 1,178  |   |   |   | 498 |   |
| Total Other      deferred charges - regulatory      |   |   | 9,980  |   |   |   | 8,988 |   |
|                                                     |   |   |   |   |   |   |   |   |
| Other deferred credits      - regulatory                 |   |   |   |   |   |   |   |   |
| Asset      retirement obligation - Millstone Unit #3     |   |   | 1,497  |   |   |   | 3,085 |   |
| Vermont      Yankee related deferrals                    |   |   | 789    |   |   |   | 1,596 |   |
| Emission      allowances and renewable energy credits    |   |   | 308    |   |   |   | 616 |   |
| Unrealized      gains on power-related derivatives       |   |   | 12,756 |   |   |   | 707 |   |
| Environmental      remediation                           |   |   | 1,000  |   |   |   | 1,834 |   |
| Other                                                    |   |   | 1,346  |   |   |   | 1,557 |   |
| Total Other      deferred credits - regulatory      |   | $      | 17,696 |   |   | $      | 9,395 |   |

----

|                                        |   |       |      |   | Stock       |   |    | Shares             |   |
|---------------------------------------------|--------|------------|-----------|--------|-------------|--------|---------|--------------------|--------|
|                                        |   | Shares     |      |   | Options     |   |    | Available      for |   |
| Plan                                   |   | Authorized |      |   | Outstanding |   |    | Future      Grant  |   |
| 1997      Stock Option Plan - Key Employees |   |       | 350,000   |   |        |   | 79,458  |               |   |   | 0 |   |
| 2000      Stock Option Plan - Key Employees |   |       | 350,000   |   |        |   | 182,630 |               |   |   | 0 |   |
| Omnibus      Stock Plan (a)                 |   |       | 450,000   |   |        |   | 116,869 |               |   |   | 154,863 |   |
|    Total                     |   |       | 1,150,000 |   |        |   | 378,957 |               |   |   | 154,863 |   |

| (a)   | The      2002 Long-Term Incentive Plan was amended in 2008.  The      amendments renamed the plan as the Central Vermont Public Service      Corporation Omnibus Stock Plan (“Omnibus Stock Plan”), added 100,000      additional shares of our common stock to be issued under the plan and      revised the plan to conform to certain other regulatory      changes.  The adoption of the amendments to the plan was      authorized by the PSB on April 23, 2008 and by our shareholders on May 6,      2008. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                    |   |   |    |   | Weighted      Average |   |
|---------------------------------------------------------|--------|--------|---------|--------|-----------------------|--------|
|                                                    |   | Shares |    |   | Exercise      Price   |   |
| Options      outstanding and exercisable at January 1   |   |   | 446,007 |   |                  | $      | 17.23 |   |
|     Exercised                       |   |   | (67,050 | )      |                  | $      | 15.40 |   |
|     Granted                         |   |   | 0       |   |                  | $      | 0.00 |   |
|     Forfeited                       |   |   | 0       |   |                  | $      | 0.00 |   |
|     Expired                         |   |   | 0       |   |                  | $      | 0.00 |   |
| Options      outstanding and exercisable at December 31 |   |   | 378,957 |   |                  | $      | 17.55 |   |

----

|                              |   |   |   |   | Weighted      Average      |   |
|-----------------------------------|--------|--------|--------|--------|----------------------------|--------|
|                              |   | Shares |   |   | Grant-Date      Fair Value |   |
| Nonvested      at January 1       |   |   | 1,000  |   |                       | $      | 18.15 |   |
|     Granted   |   |   | 10,376 |   |                       | $      | 21.18 |   |
|     Vested    |   |   | (3,891 | )      |                       | $      | 21.18 |   |
|     Deferred  |   |   | (6,485 | )      |                       | $      | 21.18 |   |
|     Forfeited |   |   | 0      |   |                       | $      | 0.00 |   |
| Nonvested      at December 31     |   |   | 1,000  |   |                       | $      | 18.15 |   |

|                          |   | 2008   |   |   | 2007   |   |
|-------------------------------|--------|--------|--------|--------|--------|--------|
| Volatility                    |   |   | 32.20  | %      |   |   | 25.97 | % |
| Risk-free      rate of return |   |   | 2.76   | %      |   |   | 4.68 | % |
| Dividend      yield           |   |   | 3.08   | %      |   |   | 4.04 | % |
| Term      (years)             |   |   | 3      |   |   |   | 3 |   |

----

|                                                                                    |   |   |    |   | Weighted      Average      |   |
|-----------------------------------------------------------------------------------------|--------|--------|---------|--------|----------------------------|--------|
|                                                                                    |   | Shares |    |   | Grant-Date      Fair Value |   |
| Outstanding      at January 1                                                           |   |   | 62,400  |   |                       | $      | 19.47 |   |
|     Contingently      granted for the 2008 - 2010 performance cycle |   |   | 21,700  |   |                       | $      | 29.20 |   |
|     Vested      for the 2006 - 2008 performance cycle (a)           |   |   | (33,800 | )      |                       | $      | 17.50 |   |
|     Forfeited                                                       |   |   | 0       |   |                       | $      | 0.00 |   |
| Outstanding      at December 31                                                         |   |   | 50,300  |   |                       | $      | 25.00 |   |

|                                                                               |   | 2008   |   |   | 2007   |   |
|------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Preferred      stock, $100 par value, outstanding:                                 |   |   |   |   |   |   |
|    4.150%      Series;  37,856 shares                     |   | $      | 3,786  |   |   | $      | 3,786 |   |
|    4.650%      Series;  10,000 shares                     |   |   | 1,000  |   |   |   | 1,000 |   |
|    4.750%      Series;  17,682 shares                     |   |   | 1,768  |   |   |   | 1,768 |   |
|    5.375%      Series;  15,000 shares                     |   |   | 1,500  |   |   |   | 1,500 |   |
| Total      preferred and preference stock not subject to mandatory      redemption |   | $      | 8,054  |   |   | $      | 8,054 |   |

----

| Preferred and      Preference Stock | Premiums Per      Share |
|-------------------------------------|-------------------------|
| 4.150%  Series            | $5.500                  |
| 4.650%  Series            | $5.000                  |
| 4.750%  Series            | $1.000                  |
| 5.375%      Series                  | $5.000                  |

----

|                                                                                |   | December      31, 2008 |    |   | December      31, 2007 |   |
|-------------------------------------------------------------------------------------|--------|------------------------|---------|--------|------------------------|--------|
| First      Mortgage Bonds                                                           |   |                   |    |   |                   |   |
|      6.27%,      Series NN, due 2008                       |   | $                      | 0       |   |                   | $      | 3,000 |   |
|      5.00%,      Series SS, due 2011                       |   |                   | 20,000  |   |                   |   | 20,000 |   |
|      5.72%,      Series TT, due 2019                       |   |                   | 55,000  |   |                   |   | 55,000 |   |
|      6.90%,      Series OO, due 2023                       |   |                   | 17,500  |   |                   |   | 17,500 |   |
|      6.83%,      Series UU, due 2028                       |   |                   | 60,000  |   |                   |   | 0 |   |
|      8.91%,      Series JJ, due 2031                       |   |                   | 15,000  |   |                   |   | 15,000 |   |
| Revenue      Bonds                                                                  |   |                   |    |   |                   |   |   |   |
|   New      Hampshire Industrial Development Authority Bonds               |   |                   |    |   |                   |   |   |   |
|      3.75%,      due 2009                                  |   |                   | 5,450   |   |                   |   | 5,450 |   |
| Total      long-term debt                                                           |   |                   | 172,950 |   |                   |   | 115,950 |   |
|      Less      current amount payable, due within one year |   |                   | (5,450  | )      |                   |   | (3,000 | ) |
| Total      long-term debt less current portion                                      |   | $                      | 167,500 |   |                   | $      | 112,950 |   |

----

|                                                                                                              |   | December      31, 2008 |   |   | December      31, 2007 |   |
|-------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|--------|------------------------|--------|
| Revenue      Bonds                                                                                                |   |                   |   |   |                   |   |
| Vermont      Industrial Development Authority Bonds                                                               |   |                   |   |   |                   |   |
|     Variable,      due 2013 (0.85 % at December 31, 2008 and 3.05% at December 31,      2007) |   | $                      | 5,800  |   |                   | $      | 5,800 |   |
| Connecticut      Development Authority Bonds                                                                      |   |                   |   |   |                   |   |   |   |
|     Variable,      due 2015 (1.0% at December 31, 2008 and 3.55% at December 31,      2007)   |   |                   | 5,000  |   |                   |   | 5,000 |   |
| Short-term      note payable                                                                                      |   |                   |   |   |                   |   |   |   |
|     Variable,      due June 30, 2008 (5.44% at December 31, 2007)                             |   |                   | 0      |   |                   |   | 53,000 |   |
| Total      Notes Payable                                                                                          |   | $                      | 10,800 |   |                   | $      | 63,800 |   |

----

|                                                          |   |                  |    |   | Postretirement        |   |
|---------------------------------------------------------------|--------|-----------------------|---------|--------|-----------------------|--------|
|                                                          |   | Pension      Benefits |    |   | Medical      Benefits |   |
|                                                          |   | 2008                  |    |   | 2007                  |   |   | 2008 |   |   | 2007 |   |
| Benefit      obligation at beginning of measurement date      |   | $                     | 96,050  |   |                  | $      | 103,853 |   |   | $ | 26,520 |   |   | $ | 26,276 |   |
| Effect      of eliminating early measurement date             |   |                  | 884     |   |                  |   | 0 |   |   |   | 66 |   |   |   | 0 |   |
| Service      cost                                             |   |                  | 3,291   |   |                  |   | 3,552 |   |   |   | 621 |   |   |   | 577 |   |
| Interest      cost                                            |   |                  | 6,093   |   |                  |   | 6,242 |   |   |   | 1,611 |   |   |   | 1,507 |   |
| Plan      participants' contributions                         |   |                  | 0       |   |                  |   | 0 |   |   |   | 1,057 |   |   |   | 987 |   |
| Actuarial      loss (gain)                                    |   |                  | 4,318   |   |                  |   | (11,048 | ) |   |   | (951 | ) |   |   | (33 | ) |
| Gross      benefits paid                                      |   |                  | (4,400  | )      |                  |   | (6,549 | ) |   |   | (2,501 | ) |   |   | (2,993 | ) |
|    less:      federal subsidy on benefits paid |   |                  | 0       |   |                  |   | 0 |   |   |   | 230 |   |   |   | 199 |   |
| Plan      amendments                                          |   |                  | 0       |   |                  |   | 0 |   |   |   | 1,900 |   |   |   | 0 |   |
| Projected      obligation as of measurement date              |   | $                     | 106,236 |   |                  | $      | 96,050 |   |   | $ | 28,553 |   |   | $ | 26,520 |   |
|                                                          |   |                  |    |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Accumulated      obligation as of measurement date            |   | $                     | 87,310  |   |                  | $      | 78,894 |   |   |   | n/a |   |   |   | n/a |   |

----

|                                                |   |                  |   |   | Postretirement        |   |
|-----------------------------------------------------|--------|-----------------------|--------|--------|-----------------------|--------|
|                                                |   | Pension      Benefits |   |   | Medical      Benefits |   |
|                                                |   | 2008                  |   |   | 2007                  |   |   | 2008 |   |   | 2007 |   |
| Discount      rates                                 |   |                  | 6.15   | %      |                  |   | 6.30 | % |   |   | 6.05 | % |   |   | 6.15 | % |
| Rate      of increase in future compensation levels |   |                  | 4.25   | %      |                  |   | 4.25 | % |   |   | 4.25 | % |   |   | 4.25 | % |

|                                                                                  |   | Increase |   |   | Decrease |   |
|---------------------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|
| Effect      on postretirement medical benefit obligation as of December 31,      2008 |   | $        | 2,347  |   |     | $      | (1,977 | ) |
| Effect      on aggregate service and interest costs                                   |   | $        | 214    |   |     | $      | (174 | ) |

|                   |   | Pension      Plan |   |   | Postretirement      Medical Plan |   |
|------------------------|--------|-------------------|--------|--------|----------------------------------|--------|
|                   |   | 2009      Target  |   |   | 2008                             |   |   | 2007 |   |   | 2009      Target |   |   | 2008 |   |   | 2007 |   |
| Equity      securities |   |              | 61     | %      |                             |   | 44 | % |   |   | 68 | % |   |   | 67 | % |   |   | 67 | % |   |   | 67 | % |
| Debt      securities   |   |              | 39     | %      |                             |   | 37 | % |   |   | 32 | % |   |   | 33 | % |   |   | 33 | % |   |   | 33 | % |
| Other                  |   |              | 0      | %      |                             |   | 19 | % |   |   | 0 | % |   |   | 0 | % |   |   | 0 | % |   |   | 0 | % |
| Total                  |   |              | 100    | %      |                             |   | 100 | % |   |   | 100 | % |   |   | 100 | % |   |   | 100 | % |   |   | 100 | % |

----

|                                                            |   |              |    |   | Postretirement    |   |
|-----------------------------------------------------------------|--------|-------------------|---------|--------|-------------------|--------|
|                                                            |   | Pension      Plan |    |   | Medical      Plan |   |
|                                                            |   | 2008              |    |   | 2007              |   |   | 2008 |   |   | 2007 |   |
| Fair      value of plan assets at beginning of measurement date |   | $                 | 94,356  |   |              | $      | 86,131 |   |   | $ | 13,264 |   |   | $ | 11,526 |   |
| Effect      of eliminating early measurement date               |   | $                 | 369     |   |              |   | 0 |   |   | $ | (22 | ) |   |   | 0 |   |
| Actual      (loss) return on plan assets                        |   |              | (14,209 | )      |              |   | 10,718 |   |   |   | (5,652 | ) |   |   | 605 |   |
| Employer      contributions                                     |   |              | 3,062   |   |              |   | 4,056 |   |   |   | 3,104 |   |   |   | 3,139 |   |
| Plan      participants’ contributions                     |   |              | 0       |   |              |   | 0 |   |   |   | 1,057 |   |   |   | 987 |   |
| Gross      benefits paid                                        |   |              | (4,400  | )      |              |   | (6,549 | ) |   |   | (2,502 | ) |   |   | (2,993 | ) |
| Fair      value of assets as of measurement date                |   | $                 | 79,178  |   |              | $      | 94,356 |   |   | $ | 9,249 |   |   | $ | 13,264 |   |

|                                                           |   |              |     |   | Postretirement    |   |
|----------------------------------------------------------------|--------|-------------------|----------|--------|-------------------|--------|
|                                                           |   | Pension      Plan |     |   | Medical      Plan |   |
|                                                           |   | 2008              |     |   | 2007              |   |   | 2008 |   |   | 2007 |   |
| Fair      value of assets                                      |   | $                 | 79,178   |   |              | $      | 94,356 |   |   | $ | 9,249 |   |   | $ | 13,264 |   |
| Benefit      obligation                                        |   |              | (106,236 | )      |              |   | (96,050 | ) |   |   | (28,553 | ) |   |   | (26,520 | ) |
| CVPS      contributions between measurement and year-end dates |   |              | 0        |   |              |   | 0 |   |   |   | 0 |   |   |   | 153 |   |
| Funded      Status                                             |   | $                 | (27,058  | )      |              | $      | (1,694 | ) |   | $ | (19,304 | ) |   | $ | (13,103 | ) |

|                       |   |                  |    |   | Postretirement        |   |
|----------------------------|--------|-----------------------|---------|--------|-----------------------|--------|
|                       |   | Pension      Benefits |    |   | Medical      Benefits |   |
|                       |   | 2008                  |    |   | 2007                  |   |   | 2008 |   |   | 2007 |   |
| Non-current      liability |   | $                     | (27,058 | )      |                  | $      | (1,694 | ) |   | $ | (19,304 | ) |   | $ | (13,103 | ) |

|                       |   | Pension      Benefits |   |   | Postretirement      Medical Benefits |   |
|----------------------------|--------|-----------------------|--------|--------|--------------------------------------|--------|
|                       |   | Regulatory            |   |   |                                 |   |   |   |   |   | Regulatory |   |   |   |   |   |   |   |
|                       |   | Asset                 |   |   | AOCL                                 |   |   | Total |   |   | Asset |   |   | AOCL |   |   | Total |   |
| Net      actuarial loss    |   | $                     | 24,883 |   |                                 | $      | 76 |   |   | $ | 24,959 |   |   | $ | 16,074 |   |   | $ | 48 |   |   | $ | 16,122 |   |
| Prior      service cost    |   |                  | 2,093  |   |                                 |   | 6 |   |   |   | 2,099 |   |   |   | 1,894 |   |   |   | 6 |   |   |   | 1,900 |   |
| Transition      obligation |   |                  | 0      |   |                                 |   | 0 |   |   |   | 0 |   |   |   | 957 |   |   |   | 3 |   |   |   | 960 |   |
| Net      amount recognized |   | $                     | 26,976 |   |                                 | $      | 82 |   |   | $ | 27,058 |   |   | $ | 18,925 |   |   | $ | 57 |   |   | $ | 18,982 |   |

----

|                       |   | Pension      Benefits |   |   | Postretirement      Medical Benefits |   |
|----------------------------|--------|-----------------------|--------|--------|--------------------------------------|--------|
|                       |   | Regulatory            |   |   |                                 |   |   |   |   |   | Regulatory |   |   |   |   |   |   |   |
|                       |   | Asset                 |   |   | AOCL                                 |   |   | Total |   |   | Asset |   |   | AOCL |   |   | Total |   |
| Net      actuarial loss    |   | $                     | (888   | )      |                                 | $      | (3 | ) |   | $ | (891 | ) |   | $ | 11,622 |   |   | $ | 35 |   |   | $ | 11,657 |   |
| Prior      service cost    |   |                  | 2,577  |   |                                 |   | 8 |   |   |   | 2,585 |   |   |   | 1 |   |   |   | 0 |   |   |   | 1 |   |
| Transition      obligation |   |                  | 0      |   |                                 |   | 0 |   |   |   | 0 |   |   |   | 1,275 |   |   |   | 4 |   |   |   | 1,279 |   |
| Net      amount recognized |   | $                     | 1,689  |   |                                 | $      | 5 |   |   | $ | 1,694 |   |   | $ | 12,898 |   |   | $ | 39 |   |   | $ | 12,937 |   |

|                                       |   | Pension      Benefits |   |   | Postretirement      Medical Benefits |   |
|--------------------------------------------|--------|-----------------------|--------|--------|--------------------------------------|--------|
|                                       |   | Regulatory            |   |   |                                 |   |   |   |   |   | Regulatory |   |   |   |   |   |   |   |
|                                       |   | Asset                 |   |   | AOCL                                 |   |   | Total |   |   | Asset |   |   | AOCL |   |   | Total |   |
| Current      year actuarial (gain)/loss    |   | $                     | 25,773 |   |                                 | $      | 78 |   |   | $ | 25,851 |   |   | $ | 5,763 |   |   | $ | 17 |   |   | $ | 5,780 |   |
| Amortization      of actuarial loss        |   |                  | 0      |   |                                 |   | 0 |   |   |   | 0 |   |   |   | (1,049 | ) |   |   | (3 | ) |   |   | (1,052 | ) |
| Current      year prior service cost       |   |                  | 0      |   |                                 |   | 0 |   |   |   | 0 |   |   |   | 1,894 |   |   |   | 6 |   |   |   | 1,900 |   |
| Amortization      of prior service cost    |   |                  | (388   | )      |                                 |   | (1 | ) |   |   | (389 | ) |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
| Amortization      of transition obligation |   |                  | 0      |   |                                 |   | 0 |   |   |   | 0 |   |   |   | (255 | ) |   |   | (1 | ) |   |   | (256 | ) |
| Net      amount recognized                 |   | $                     | 25,385 |   |                                 | $      | 77 |   |   | $ | 25,462 |   |   | $ | 6,353 |   |   | $ | 19 |   |   | $ | 6,372 |   |

|                                       |   | Pension      Benefits |   |   | Postretirement      Benefits |   |
|--------------------------------------------|--------|-----------------------|--------|--------|------------------------------|--------|
|                                       |   | 2008                  |   |   | 2007                         |   |   | 2006 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Service      cost                          |   | $                     | 3,291  |   |                         | $      | 3,552 |   |   | $ | 3,686 |   |   | $ | 621 |   |   | $ | 578 |   |   | $ | 706 |   |
| Interest      cost                         |   |                  | 6,092  |   |                         |   | 6,242 |   |   |   | 5,971 |   |   |   | 1,611 |   |   |   | 1,507 |   |   |   | 1,695 |   |
| Expected      return on plan assets        |   |                  | (7,323 | )      |                         |   | (6,719 | ) |   |   | (5,744 | ) |   |   | (1,067 | ) |   |   | (932 | ) |   |   | (716 | ) |
| Amortization      of net actuarial loss    |   |                  | 0      |   |                         |   | 582 |   |   |   | 785 |   |   |   | 1,052 |   |   |   | 1,051 |   |   |   | 1,591 |   |
| Amortization      of prior service cost    |   |                  | 389    |   |                         |   | 399 |   |   |   | 401 |   |   |   | 0 |   |   |   | 0 |   |   |   | 1 |   |
| Amortization      of transition obligation |   |                  | 0      |   |                         |   | 0 |   |   |   | 0 |   |   |   | 256 |   |   |   | 256 |   |   |   | 256 |   |
| Net      periodic benefit cost             |   |                  | 2,449  |   |                         |   | 4,056 |   |   |   | 5,099 |   |   |   | 2,473 |   |   |   | 2,460 |   |   |   | 3,533 |   |
| Less      amounts capitalized              |   |                  | 405    |   |                         |   | 693 |   |   |   | 885 |   |   |   | 409 |   |   |   | 420 |   |   |   | 613 |   |
| Net      benefit costs expensed            |   | $                     | 2,044  |   |                         | $      | 3,363 |   |   | $ | 4,214 |   |   | $ | 2,064 |   |   | $ | 2,040 |   |   | $ | 2,920 |   |

|                                                |   | Pension      Benefits |   |   | Postretirement      Medical Benefits |   |
|-----------------------------------------------------|--------|-----------------------|--------|--------|--------------------------------------|--------|
|                                                |   | 2008                  |   |   | 2007                                 |   |   | 2006 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
| Weighted-average      discount rates                |   |                  | 6.30   | %      |                                 |   | 5.95 | % |   |   | 5.65 | % |   |   | 6.15 | % |   |   | 5.80 | % |   |   | 5.65 | % |
| Expected      long-term return on assets            |   |                  | 8.25   | %      |                                 |   | 8.25 | % |   |   | 8.25 | % |   |   | 8.25 | % |   |   | 8.25 | % |   |   | 8.25 | % |
| Rate      of increase in future compensation levels | 4.25   | %                     |   |   | 4.25                                 | %      |   |   | 4.00 | % |   |   | 4.25 | % |   |   | 4.25 | % |   |   | 4.00 | % |

|                               |   |                  |   |   | Postretirement        |   |
|------------------------------------|--------|-----------------------|--------|--------|-----------------------|--------|
|                               |   | Pension      Benefits |   |   | Medical      Benefits |   |
| Actuarial      loss                |   | $                     | 0      |   |                  | $      | 1,570 |   |
| Prior      service cost            |   |                  | 351    |   |                  |   | 225 |   |
| Transition      benefit obligation |   |                  | 0      |   |                  |   | 256 |   |
| Total                              |   | $                     | 351    |   |                  | $      | 2,051 |   |

----

|                           |   | Pension      Benefits |   |   | Postretirement      Medical Benefits |   |
|--------------------------------|--------|-----------------------|--------|--------|--------------------------------------|--------|
|                           |   |                  |   |   |                                 |   |   | Expected |   |
|                           |   |                  |   |   | Gross                                |   |   | Federal      Subsidy |   |
| Employer      Contributions    |   |                  |   |   |                                 |   |   |   |   |
| 2009                           |   | $                     | 3,000  |   |                                 | $      | 3,700 |   |   |   |   |
| Expected      Benefit Payments |   |                  |   |   |                                 |   |   |   |   |   |   |
| 2009                           |   | $                     | 8,350  |   |                                 | $      | 2,258 |   |   | $ | 253 |   |
| 2010                           |   | $                     | 7,811  |   |                                 | $      | 2,348 |   |   | $ | 282 |   |
| 2011                           |   | $                     | 7,460  |   |                                 | $      | 2,416 |   |   | $ | 310 |   |
| 2012                           |   | $                     | 10,726 |   |                                 | $      | 2,465 |   |   | $ | 341 |   |
| 2013                           |   | $                     | 7,766  |   |                                 | $      | 2,570 |   |   | $ | 368 |   |
| 2014      – 2018         |   | $                | 46,623 |   |                                 | $      | 13,609 |   |   | $ | 2,309 |   |

----

|                                                                    |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|-------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Federal:                                                                |   |   |   |   |   |   |   |   |   |
|   Current                                                     |   | $      | (6,636 | )      |   | $      | 2,899  |   |   | $ | 4,875 |   |
|   Deferred                                                    |   |   | 15,398 |   |   |   | 2,566  |   |   |   | 3,144 |   |
|   Investment      tax credits, net                            |   |   | (379   | )      |   |   | (379   | )      |   |   | (379 | ) |
|   Valuation      allowance                                    |   |   | (99    | )      |   |   | 0      |   |   |   | 0 |   |
|                                                                    |   |   | 8,284  |   |   |   | 5,086  |   |   |   | 7,640 |   |
| State:                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|   Current                                                     |   |   | 519    |   |   |   | 1,124  |   |   |   | 1,311 |   |
|   Deferred                                                    |   |   | 1,654  |   |   |   | 539    |   |   |   | 1,055 |   |
|   Valuation      allowance                                    |   |   | 283    |   |   |   | 0      |   |   |   | 0 |   |
|                                                                    |   |   | 2,456  |   |   |   | 1,663  |   |   |   | 2,366 |   |
|      Total      federal and state income taxes |   | $      | 10,740 |   |   | $      | 6,749  |   |   | $ | 10,006 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal      and state income taxes charged to:                         |   |   |   |   |   |   |   |   |   |   |   |   |
|   Operating      expenses                                     |   | $      | 4,878  |   |   | $      | 5,291  |   |   | $ | 8,569 |   |
|   Other      income                                           |   |   | 5,862  |   |   |   | 1,458  |   |   |   | 1,437 |   |
|                                                                    |   | $      | 10,740 |   |   | $      | 6,749  |   |   | $ | 10,006 |   |

----

|                                                           |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|----------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Income      (loss) before income tax                           |   | $      | 27,125 |   |   | $      | 22,553 |   |   | $ | 28,107 |   |
| Federal      statutory rate                                    |   |   | 35.0   | %      |   |   | 35.0   | %      |   |   | 35.0 | % |
| Federal      statutory tax expense                             |   |   | 9,494  |   |   |   | 7,894  |   |   |   | 9,838 |   |
| Increase      (benefit) in taxes resulting from:               |   |   |   |   |   |   |   |   |   |   |   |   |
|   Dividend      received deduction                   |   |   | (408   | )      |   |   | (647   | )      |   |   | (494 | ) |
|   State      income taxes net of federal tax benefit |   |   | 1,695  |   |   |   | 1,106  |   |   |   | 1,729 |   |
|   Investment      credit amortization                |   |   | (379   | )      |   |   | (379   | )      |   |   | (379 | ) |
|   Renewable      Electricity Credit                  |   |   | (249   | )      |   |   | (275   | )      |   |   | (273 | ) |
|   AFUDC      equity                                  |   |   | 109    |   |   |   | 198    |   |   |   | 194 |   |
|   Life      insurance                                |   |   | 680    |   |   |   | (139   | )      |   |   | (236 | ) |
|   Medicare      Part D                               |   |   | (157   | )      |   |   | (193   | )      |   |   | (107 | ) |
|   Domestic      production activities deduction      |   |   | 0      |   |   |   | (147   | )      |   |   | (63 | ) |
|   Valuation      allowance                           |   |   | (99    | )      |   |   | 0      |   |   |   | 0 |   |
|   Change      in estimate for tax contingencies      |   |   | 0      |   |   |   | 0      |   |   |   | (191 | ) |
|   Other                                              |   |   | 54     |   |   |   | (669   | )      |   |   | (12 | ) |
|   Total      income tax expense                      |   | $      | 10,740 |   |   | $      | 6,749  |   |   | $ | 10,006 |   |
|                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Effective      combined federal and state income tax rate      |   |   | 39.6   | %      |   |   | 29.9   | %      |   |   | 35.6 | % |

----

|                                                                  |   | 2008   |   |   | 2007   |   |
|-----------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Deferred      tax assets - current                                    |   |   |   |   |   |   |
|   Reserves      for uncollectible accounts                  |   | $      | 885    |   |   | $      | 710 |   |
|   Deferred      compensation and pension                    |   |   | 975    |   |   |   | 968 |   |
|   Environmental      costs accrual                          |   |   | 307    |   |   |   | 188 |   |
|   SFAS      No. 5 loss accrual                              |   |   | 485    |   |   |   | 485 |   |
|   Active      Medical Accrual                               |   |   | 379    |   |   |   | 337 |   |
|   SFAS      No. 133 - derivative instruments                |   |   | 1      |   |   |   | 1,307 |   |
|   Other      accruals                                       |   |   | 391    |   |   |   | 223 |   |
| Total      deferred tax assets - current                              |   |   | 3,423  |   |   |   | 4,218 |   |
| Deferred      tax liabilities - current                               |   |   |   |   |   |   |   |   |
|   Property      tax accruals                                |   |   | 304    |   |   |   | 265 |   |
|   Prepaid      insurance                                    |   |   | 382    |   |   |   | 315 |   |
|   SFAS      No. 133 - derivative instruments                |   |   | 5,115  |   |   |   | 0 |   |
| Total      deferred tax liabilities - current                         |   |   | 5,801  |   |   |   | 580 |   |
| Net      deferred tax (liabilities) assets - current                  |   |   | (2,378 | )      |   |   | 3,638 |   |
|                                                                  |   |   |   |   |   |   |   |   |
| Deferred      tax assets - long term                                  |   |   |   |   |   |   |   |   |
|   Equity      investments                                   |   |   | 0      |   |   |   | 1,348 |   |
|   Accruals      and other reserves not currently deductible |   |   | 1,861  |   |   |   | 612 |   |
|   Deferred      compensation and pension                    |   |   | 473    |   |   |   | 508 |   |
|   Environmental      costs accrual                          |   |   | 800    |   |   |   | 1,333 |   |
|   Millstone      decommissioning costs                      |   |   | 1,703  |   |   |   | 2,288 |   |
|   Contributions      in aid of construction                 |   |   | 2,111  |   |   |   | 2,198 |   |
|   Revenue      deferral - Vermont utility earnings          |   |   | 22     |   |   |   | 389 |   |
|   SFAS      No. 5 - loss accrual                            |   |   | 2,908  |   |   |   | 3,393 |   |
|   SFAS      No. 133 - derivative instruments                |   |   | 6,818  |   |   |   | 1,861 |   |
|   SFAS      No. 158 - benefit liability                     |   |   | 18,786 |   |   |   | 6,204 |   |
|   Long-term      disability                                 |   |   | 536    |   |   |   | 637 |   |
| Total      deferred tax assets - long term                            |   |   | 36,018 |   |   |   | 20,771 |   |
| Less      valuation allowance                                         |   |   | (184   | )      |   |   | 0 |   |
|                                                                  |   |   | 35,834 |   |   |   | 20,771 |   |
| Deferred      tax liabilities                                         |   |   |   |   |   |   |   |   |
|   Property,      plant and equipment                        |   |   | 44,087 |   |   |   | 40,190 |   |
|   Net      SFAS No. 109 regulatory asset                    |   |   | 1,668  |   |   |   | 1,523 |   |
|   Vermont      Yankee sale                                  |   |   | 672    |   |   |   | 672 |   |
|   SFAS      No. 158 - regulatory asset                      |   |   | 19,011 |   |   |   | 5,946 |   |
|   SFAS      No. 133 - derivative instruments                |   |   | 1,704  |   |   |   | 3,168 |   |
|   Decommissioning      costs                                |   |   | 1,312  |   |   |   | 1,909 |   |
|   Partnerships                                              |   |   | 8,968  |   |   |   | 0 |   |
|   Storm      Deferral                                       |   |   | 1,645  |   |   |   | 0 |   |
|   Other                                                     |   |   | 2,081  |   |   |   | 1,029 |   |
| Total      deferred tax liabilities - long term                       |   |   | 81,148 |   |   |   | 54,437 |   |
| Net      deferred tax liabilities - long term                         |   |   | 45,314 |   |   |   | 33,666 |   |
|                                                                  |   |   |   |   |   |   |   |   |
| Net      deferred tax liabilities                                     |   | $      | 47,692 |   |   | $      | 30,028 |   |

----

|                                                        |   | 2008   |   |   | 2007   |   |
|-------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Total      deferred tax liabilities - current and long-term |   | $      | 86,949 |   |   | $      | 55,017 |   |
| Less      total deferred tax assets - current and long-term |   |   | 39,257 |   |   |   | 24,989 |   |
| Net      deferred tax liabilities                           |   | $      | 47,692 |   |   | $      | 30,028 |   |

|                              |   |        |   |   | Estimated      Average |             |
|-----------------------------------|--------|-------------|--------|--------|------------------------|------------------|
|                              |   | 2009        |   |   |                   | 2010      - 2012 |   |
| Average      capacity acquired    |   | 176      MW |   |   | 131      MW            |             |
| Share      of VYNPC entitlement   |   |        | 34.83  | %      |                   |             | 34.83 | % |
| Annual      energy charge per mWh |   | $           | 42.07  |   |                   | $                | 43.83 |   |
| Average      total cost per mWh   |   | $           | 42.36  |   |                   | $                | 43.94 |   |
| Contract      period termination  |   |        |   |   |                   | March      2012  |   |

----

----

|                                              |   | Estimated Average |             |
|---------------------------------------------------|--------|------------------------|------------------|
|                                              |   |                   | 2009      - 2012 |   |   |   | 2013      - 2016 |   |
| Annual      Capacity Acquired                     |   | 145.2      MW          |             |   | (a) |   |
| Minimum      Energy Purchase - annual load factor |   |                   | 75               | % |   |   | 75 | % |
|                                              |   |                   |             |   |   |   |   |   |
| Energy      Charge                                |   | $                      | 31,617           |   |   | $ | 20,873 |   |
| Capacity      Charge                              |   |                   | 32,845           |   |   |   | 20,007 |   |
| Total      Energy and Capacity Charge             |   | $                      | 64,462           |   |   | $ | 40,880 |   |
|                                              |   |                   |             |   |   |   |   |   |
| Average      Cost per kWh                         |   | $                      | 0.068            |   |   | $ | 0.071 |   |

|                                | Fuel      Type |   | Ownership |   | Date      In Service |   | MW      Entitlement |   |
|-------------------------------------|----------------|--------|-----------|--------|----------------------|--------|---------------------|--------|
| Wyman      #4                       | Oil            |   |      | 1.78   | %                    | 1978   |                |   | 10.8 |   |
| Joseph      C. McNeil               | Various        |   |      | 20.00  | %                    | 1984   |                |   | 10.8 |   |
| Millstone      Unit #3              | Nuclear        |   |      | 1.73   | %                    | 1986   |                |   | 21.4 |   |
| Highgate      Transmission Facility |           |   |      | 47.52  | %                    | 1985   |                |   | N/A |   |

----

|                                |       | 2008   |    |         | 2007        |   |
|-------------------------------------|------------|--------|---------|--------------|-------------|--------|
|                                |       | Gross  |    |         | Accumulated |   |   | Net |   |   | Gross |   |   | Accumulated |   |   | Net |   |
|                                | Investment |   |    | Depreciation |        |   | Investment |   |   | Investment |   |   | Depreciation |   |   | Investment |   |
| Wyman      #4                       |       | $      | 3,690   |         |        | $      | 2,914 |   |   | $ | 776 |   |   | $ | 3,504 |   |   | $ | 2,817 |   |   | $ | 687 |   |
| Joseph      C. McNeil               |       |   | 15,857  |         |        |   | 12,291 |   |   |   | 3,566 |   |   |   | 15,587 |   |   |   | 11,762 |   |   |   | 3,825 |   |
| Millstone      Unit #3              |       |   | 77,879  |         |        |   | 40,246 |   |   |   | 37,633 |   |   |   | 77,349 |   |   |   | 39,322 |   |   |   | 38,027 |   |
| Highgate      Transmission Facility |       |   | 14,489  |         |        |   | 8,731 |   |   |   | 5,758 |   |   |   | 14,390 |   |   |   | 8,332 |   |   |   | 6,058 |   |
|                                |       | $      | 111,915 |         |        | $      | 64,182 |   |   | $ | 47,733 |   |   | $ | 110,830 |   |   | $ | 62,233 |   |   | $ | 48,597 |   |

----

----

| Year                                             |   | Capital      Leases |   |
|--------------------------------------------------|--------|---------------------|--------|
| 2009                                             |   | $                   | 1,426  |   |
| 2010                                             |   |                | 1,359  |   |
| 2011                                             |   |                | 1,235  |   |
| 2012                                             |   |                | 1,143  |   |
| 2013                                             |   |                | 1,060  |   |
| Thereafter                                       |   |                | 1,649  |   |
| Future      minimum lease payments               |   |                | 7,872  |   |
| Less:      amount representing interest          |   |                | 1,758  |   |
| Present      value of net minimum lease payments |   | $                   | 6,114  |   |

----

----

|                                              |   |              |    |   |      |   |   | Reclassification       |   |   |         |   |
|---------------------------------------------------|--------|-------------------|---------|--------|-----------|--------|--------|------------------------|--------|--------|--------------|--------|
|                                              |   |              |    |   | Other     |   |   | and      Consolidating |   |   |         |   |
| 2008                                              |   | CV      - VT |    |   | Companies |   |   | Entries                |   |   | Consolidated |   |
| Revenues      from external customers             |   | $                 | 342,162 |   |      | $      | 1,751  |                   |   | $      | (1,751       | )      |   | $ | 342,162 |   |
| Depreciation      and amortizations (a)           |   | $                 | 11,862  |   |      | $      | 192    |                   |   | $      | (192         | )      |   | $ | 11,862 |   |
| Operating      income tax expense                 |   | $                 | 4,878   |   |      | $      | 473    |                   |   | $      | (473         | )      |   | $ | 4,878 |   |
| Equity      in earnings of affiliates   |   | $                 | 16,264  |   |      | $      | 0      |                   |   | $      | 0            |   |   | $ | 16,264 |   |
| Interest      income (b)                          |   | $                 | 406     |   |      | $      | 24     |                   |   | $      | (24          | )      |   | $ | 406 |   |
| Interest      expense                             |   | $                 | 11,568  |   |      | $      | 51     |                   |   | $      | (51          | )      |   | $ | 11,568 |   |
| Income      from continuing operations            |   | $                 | 16,168  |   |      | $      | 217    |                   |   | $      | 0            |   |   | $ | 16,385 |   |
| Investments      in affiliates                    |   | $                 | 102,232 |   |      | $      | 0      |                   |   | $      | 0            |   |   | $ | 102,232 |   |
| Total      assets                                 |   | $                 | 624,341 |   |      | $      | 3,184  |                   |   | $      | (1,399       | )      |   | $ | 626,126 |   |
| Construction      and plant expenditures (c)      |   | $                 | 36,835  |   |      | $      | 339    |                   |   | $      | 0            |   |   | $ | 37,174 |   |
|                                              |   |
| 2007                                              |   |              |    |   |      |   |   |                   |   |   |         |   |   |   |   |   |
| Revenues      from external customers             |   | $                 | 329,107 |   |      | $      | 1,798  |                   |   | $      | (1,798       | )      |   | $ | 329,107 |   |
| Depreciation      and amortizations (a)           |   | $                 | 10,993  |   |      | $      | 184    |                   |   | $      | (184         | )      |   | $ | 10,993 |   |
| Operating      income tax expense                 |   | $                 | 5,291   |   |      | $      | 329    |                   |   | $      | (329         | )      |   | $ | 5,291 |   |
| Equity      in earnings of affiliates   |   | $                 | 6,430   |   |      | $      | 0      |                   |   | $      | 0            |   |   | $ | 6,430 |   |
| Interest      income (b)                          |   | $                 | 587     |   |      | $      | 58     |                   |   | $      | 0            |   |   | $ | 645 |   |
| Interest      expense                             |   | $                 | 8,475   |   |      | $      | 47     |                   |   | $      | 0            |   |   | $ | 8,522 |   |
| Income      from continuing operations            |   | $                 | 15,317  |   |      | $      | 487    |                   |   | $      | 0            |   |   | $ | 15,804 |   |
| Investments      in affiliates                    |   | $                 | 93,452  |   |      | $      | 0      |                   |   | $      | 0            |   |   | $ | 93,452 |   |
| Total      assets                                 |   | $                 | 538,481 |   |      | $      | 2,134  |                   |   | $      | (301         | )      |   | $ | 540,314 |   |
| Construction      and plant expenditures (c)      |   | $                 | 23,663  |   |      | $      | 250    |                   |   | $      | 0            |   |   | $ | 23,913 |   |

----

| 2006                                              |   |   |    |   |   |   |   |   |   |
|---------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
| Revenues      from external customers             |   | $      | 325,738 |   |   | $      | 1,838  |   |   | $ | (1,838 | ) |   | $ | 325,738 |   |
| Depreciation      and amortizations (a)           |   | $      | 14,240  |   |   | $      | 175    |   |   | $ | (175 | ) |   | $ | 14,240 |   |
| Operating      income tax (benefit) expense       |   | $      | 8,569   |   |   | $      | 284    |   |   | $ | (284 | ) |   | $ | 8,569 |   |
| Equity      in earnings of affiliates   |   | $      | 3,240   |   |   | $      | 0      |   |   | $ | 0 |   |   | $ | 3,240 |   |
| Interest      income (b)                          |   | $      | 1,386   |   |   | $      | 728    |   |   | $ | 0 |   |   | $ | 2,114 |   |
| Interest      expense                             |   | $      | 8,231   |   |   | $      | 0      |   |   | $ | 0 |   |   | $ | 8,231 |   |
| Income      from continuing operations            |   | $      | 17,074  |   |   | $      | 1,027  |   |   | $ | 0 |   |   | $ | 18,101 |   |
| Investments      in affiliates                    |   | $      | 39,339  |   |   | $      | 0      |   |   | $ | 0 |   |   | $ | 39,339 |   |
| Total      assets                                 |   | $      | 499,125 |   |   | $      | 2,314  |   |   | $ | (501 | ) |   | $ | 500,938 |   |
| Construction      and plant expenditures (d)      |   | $      | 23,810  |   |   | $      | 208    |   |   | $ | 0 |   |   | $ | 24,018 |   |

|  (a)   |  Includes      net deferral and amortization of nuclear replacement energy and      maintenance costs, and amortization of regulatory assets and      liabilities.  These items are included in Purchased Power and      Other Operation, respectively, on the Consolidated Statements of      Income.  Also includes capital lease    amortizations. |
|-----------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (b)   | Included      in Other Income on the Consolidated Statements of  Income. |
|-----------------|--------------------------------------------------------------------------|

| (c)   | Construction      and plant expenditures for Other Companies are included in other investing      activities on the Consolidated Statements of Cash  Flows. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d)   | Includes      acquisition of utility property. |
|-----------------|------------------------------------------------|

|                            |   |               |   |   |   |   |
|---------------------------------|--------|--------------------|--------|--------|--------|--------|
|                            |   | Quarter      Ended |   |   |   |   |
|                            |   | March              |   |   | June   |   |   | September |   |   | December |   |   | Total (a) |   |
| 2008                            |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      revenues         |   | $                  | 91,224 |   |   | $      | 84,487 |   |   | $ | 83,767 |   |   | $ | 82,684 |   |   | $ | 342,162 |   |
| Utility      operating income   |   | $                  | 6,432  |   |   | $      | 4,243 |   |   | $ | 7,315 |   |   | $ | 440 |   |   | $ | 18,430 |   |
|                            |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                 |   | $                  | 5,908  |   |   | $      | 4,001 |   |   | $ | 6,481 |   |   | $ | (5 | ) |   | $ | 16,385 |   |
|                            |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      earnings per share   |   | $                  | 0.57   |   |   | $      | 0.38 |   |   | $ | 0.62 |   |   | $ | (0.01 | ) |   | $ | 1.53 |   |
| Diluted      earnings per share |   | $                  | 0.56   |   |   | $      | 0.38 |   |   | $ | 0.61 |   |   | $ | (0.01 | ) |   | $ | 1.52 |   |
|                            |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2007                            |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating      revenues         |   | $                  | 86,696 |   |   | $      | 77,380 |   |   | $ | 79,174 |   |   | $ | 85,857 |   |   | $ | 329,107 |   |
| Utility      operating income   |   | $                  | 6,063  |   |   | $      | 887 |   |   | $ | 5,147 |   |   | $ | 5,878 |   |   | $ | 17,975 |   |
|                            |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                 |   | $                  | 5,706  |   |   | $      | 521 |   |   | $ | 4,321 |   |   | $ | 5,256 |   |   | $ | 15,804 |   |
|                            |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      earnings per share   |   | $                  | 0.55   |   |   | $      | 0.04 |   |   | $ | 0.41 |   |   | $ | 0.51 |   |   | $ | 1.52 |   |
| Diluted      earnings per share |   | $                  | 0.55   |   |   | $      | 0.04 |   |   | $ | 0.41 |   |   | $ | 0.50 |   |   | $ | 1.49 |   |

| (a)   | The      summation of quarterly earnings per share data may not equal annual data      due to rounding. |
|-----------------|---------------------------------------------------------------------------------------------------------|

----

----

----

|         Plan      Category |   Number      ofsecurities      to beissued      uponexercise      ofoutstandingoptions,      warrantsand      rights (a) |   Weighted-averageexercise      price ofoutstandingoptions,warrantsand      rights (b) | Number      ofsecuritiesremaining      availablefor      future issuanceunder      equitycompensationplans      (excludingsecurities      reflectedin      column (a)) (c) |
|--------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Equity      compensation plans approved by security holders        |                                                                                                                                     |                                                                                                  |                                                                                                                                                                            |
| 1997      Stock Option Plan for Key Employees                      | 79,458                                                                                                                                   | $15.97                                                                                                | -                                                                                                                                                                          |
| 2000      Stock Option Plan for Key Employees                      | 182,630                                                                                                                                  | $16.49                                                                                                | -                                                                                                                                                                          |
| Omnibus      Stock Plan                                            | 116,869                                                                                                                                  | $20.30                                                                                                | 154,863                                                                                                                                                                         |
| Total                                                              | 378,957                                                                                                                             | $17.55                                                                                                | 154,863                                                                                                                                                                         |

----

| (a)1.                                                                                                                            | The      following financial statements are included herein under Part II, Item 8,      financial Statements and Supplementary Data: Consolidated      Statements of Income for the three years ended     December      31, 2008, 2007 and 2006 Consolidated      Statements of Comprehensive Income for the three years ended     December      31, 2008, 2007 and 2006 Consolidated      Statements of Cash Flows for the three years ended     December      31, 2008, 2007 and 2006 Consolidated      Balance Sheets at December 31, 2008 and 2007 Consolidated      Statements of Changes in Common Stock Equity at     December      31, 2008, 2007 and 2006 Notes      to Consolidated Financial Statements  |
|----------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (a)2.                                                                                                                            | Schedule      II - Reserves for the three years ended December 31, 2008, 2007 and      2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| (a)3.                                                                                                                            | Exhibits      (* denotes filed herewith) Each      document described below is incorporated by reference to the appropriate      exhibit numbers and the Commission file numbers indicated in parentheses,      unless the reference to the document is marked as follows: * -      Filed herewith. Copies      of any of the exhibits filed with the Securities and Exchange Commission      in connection with this document may be obtained from the Company upon      written request.                                                                                                                                                                                                                                                                                                                                             |
| Exhibit      3     Articles of Incorporation and      By-laws                                      |
| 3-1                                                                                                                              | By-laws,      as amended October 8, 2005. (Exhibit 99.2, Current Report on Form 8-K      Filed October 11, 2005, File No. 1-8222)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 3-2                                                                                                                              | Articles      of Association, as amended August 11, 1992. (Exhibit No. 3-2, 1992 10-K,      File No. 1-8222)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
| Exhibit      4     Instruments defining the rights of      security holders, including Indentures  |
|                                                                                                                             | Incorporated      herein by reference:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| 4-1                                                                                                                              | Bond      Purchase Agreement between Merrill, Lynch, Pierce, Fenner & Smith,      Inc., Underwriters and The Industrial Development Authority of the State      of New Hampshire, issuer and Central Vermont Public Service Corporation.      (Exhibit B-46, 1984 Form 10-K, File No. 1-8222)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
| 4-2                                                                                                                              | Bond      Purchase Agreement among Connecticut Development Authority and Central      Vermont Public Service Corporation with E. F. Hutton & Company Inc.      dated December 11, 1985. (Exhibit B-48, 1985 Form 10-K, File No.      1-8222)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |

----

| 4-3                                                                                                   | Stock-Purchase      Agreement between Vermont Electric Power Company, Inc. and the Company      dated August 11, 1986 relative to purchase of Class C Preferred Stock.      (Exhibit B-49, 1986 Form 10-K, File No. 1-8222)                                                  |
|-------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4-4                                                                                                   | Forty-Fourth      Supplemental Indenture, dated as of June 15, 2004 amending and restating      the Company’s Indenture of Mortgage dated as of October 1, 1929. (Exhibit      4-63, Form 10-Q, June 30, 2004, File No. 1-8222)                                        |
| 4-5                                                                                                   | Forty-Fifth      Supplemental Indenture, dated as of July 15, 2004 and directors’      resolutions establishing the Series SS and Series TT Bonds and matter      connected therewith. (Exhibit 4-64, Form 10-Q, June 30, 2004, File No.      1-8222)                  |
| 4-6                                                                                                   | Form      of Bond Purchase Agreement dated as of July 15, 2004 relating to Series SS      and Series TT Bonds. (Exhibit 4-65, Form 10-Q, June 30, 2004, File No.      1-8222)                                                                                                |
| 4-7                                                                                                   | Forty-Sixth      Supplemental Indenture, dated as of May 1, 2008, from the Company to U.S.      Bank National Association, as trustee. (Exhibit 4-7, Current Report on      Form 8-K Filed May 15, 2008, File No. 1-8222)                                                    |
| 4-8                                                                                                   | Bond      Purchase Agreement, dated as of May 15, 2008, among the Company and the      purchasers listed on Schedule A thereto. (Exhibit 4-8, Current Report on      Form 8-K Filed May 15, 2008, File No. 1-8222)                                                 |
| Exhibit      10     Material Contracts (* Denotes filed      herewith)  |
|                                                                                                  | Incorporated      herein by reference:                                                                                                                                                                                                                                       |
| 10.1                                                                                                  | Copy      of firm power Contract dated August 29, 1958, and supplements thereto      dated September 19, 1958, October 7, 1958, and October 1, 1960, between      the Company and the State of Vermont (the “State”). (Exhibit C-1, File No.      2-17184)       |
|                                                                                                  | 10.1.1                                                                                                                                                                                                                                                                            | Agreement      setting out Supplemental NEPOOL Understandings dated as of April 2, 1973.      (Exhibit C-22, File No. 5-50198)  |
| 10.2                                                                                                  | Copy      of Transmission Contract dated June 13, 1957, between Velco and the State,      relating to transmission of power. (Exhibit 10.2, 1993 Form 10-K, File No.      1-8222)                                                                                            |
|                                                                                                  | 10.2.1    Copy      of letter agreement dated August 4, 1961, between Velco and the      State.  (Exhibit C-3, File No. 2-26485)                                                                                                               |
|                                                                                                  | 10.2.2    Amendment      dated September 23, 1969.  (Exhibit C-4, File No.      2-38161)                                                                                                                                                       |
|                                                                                                  | 10.2.3    Amendment      dated March 12, 1980. (Exhibit C-92, 1982 Form 10-K, File               No.      1-8222)                                                             |
|                                                                                                  | 10.2.4    Amendment      dated September 24, 1980.  (Exhibit C-93, 1982 Form      10-K,               File      No. 1-8222)                                         |
| 10.3                                                                                                  | Copy      of subtransmission contract dated August 29, 1958, between Velco and the      Company (there are seven similar contracts between Velco and other      utilities). (Exhibit 10.3, 1993 Form 10-K, Form No. 1-8222)                                                  |
|                                                                                                  | 10.3.1    Copies      of Amendments dated September 7, 196l, November 2, 1967,               March      22, 1968, and October 29, 1968. (Exhibit C-6, File No.      2-32917)  |

----

|   | 10.3.2    Amendment      dated December 1, 1972. (Exhibit 10.3.2, 1993 Form 10-K,               File      No. 1-8222)                                                                                                                                                                                                                                          |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.4   | Copy      of Three-Party Agreement dated September 25, 1957, between the Company,      Green Mountain and Velco. (Exhibit C-7, File No. 2-17184)                                                                                                                                                                                                                                                                                                              |
|   | 10.4.1   Amended      and Restated Three-Party Agreement between the Company, Green Mountain      Power             Corporation,      Vermont Electric Power Company, Inc., and Vermont Transco, LLC      effective              June      30, 2006. (Exhibit 10.4.3, 2006 Form 10-K, File No. 1-8222)  |
| 10.5   | Copy      of firm power Contract dated December 29, 1961, between the Company and      the State, relating to purchase of Niagara Project power. (Exhibit C-8,      File No. 2-26485)                                                                                                                                                                                                                                                                         |
|   | 10.5.1    Amendment      effective as of January 1, 1980. (Exhibit 10.5.1, 1993 Form 10-K, File No.      1-8222)                                                                                                                                                                                                                                                                                                                          |
| 10.7   | Copy      of Capital Funds Agreement between the Company and Vermont Yankee dated as      of February 1, 1968. (Exhibit C-11, File No. 70-4611)                                                                                                                                                                                                                                                                                                               |
|   | 10.7.1    Copy      of Amendment dated March 12, 1968. (Exhibit C-12, File No.      70-4611)                                                                                                                                                                                                                                                                                                                                              |
|   | 10.7.2    Copy      of Amendment dated September 1, 1993. (Exhibit 10.7.2, 1994               Form      10-K, File No. 1-8222)                                                                                                                                                                                                                                 |
| 10.8   | Copy      of Power Contract between the Company and Vermont Yankee dated as of      February 1, 1968. (Exhibit C-13, File No. 70-4591)                                                                                                                                                                                                                                                                                                                        |
|   | 10.8.1    Amendment      dated April 15, 1983. (10.8.1, 1993 Form 10-K, File No.      1-8222)                                                                                                                                                                                                                                                                                                                                             |
|   | 10.8.2    Copy      of Additional Power Contract dated February 1, 1984.  (Exhibit      C-123,               1984      Form 10-K, File No. 1-8222)                                                                                                                                                                                                   |
|   | 10.8.3    Amendment      No. 3 to Vermont Yankee Power Contract, dated April 24, 1985.               (Exhibit      10-144, 1986 Form 10-K, File No. 1-8222)                                                                                                                                                                                                    |
|   | 10.8.4    Amendment      No. 4 to Vermont Yankee Power Contract, dated June 1, 1985.               (Exhibit      10-145, 1986 Form 10-K, File No. 1-8222)                                                                                                                                                                                                      |
|   | 10.8.5    Amendment      No. 5 dated May 6, 1988.  (Exhibit 10-179, 1988 Form      10-K,               File      No. 1-8222)                                                                                                                                                                                                                         |
|   | 10.8.6    Amendment      No. 6 dated May 6, 1988.  (Exhibit 10-180, 1988 Form      10-K,               File      No. 1-8222)                                                                                                                                                                                                                         |
|   | 10.8.7    Amendment      No. 7 dated June 15, 1989.  (Exhibit 10-195, 1989 Form      10-K,               File      No. 1-8222)                                                                                                                                                                                                                       |
|   | 10.8.8    Amendment      No. 8 dated November 17, 1999. (Exhibit 10.8.8, Form 10-Q,               June      30, 2000, File No. 1-8222)                                                                                                                                                                                                                         |
|   | 10.8.9    Amendment      No. 9 dated November 17, 1999. (Exhibit 10.8.9, Form 10-Q,               June      30, 2000, File No. 1-8222)                                                                                                                                                                                                                         |

----

|   | 10.8.10    2001      Amendatory Agreement dated as of September 21, 2001 to which      the               Company      is a party re: Vermont Yankee Nuclear Power Corporation Power               Contract.  (Exhibit      10.8.10, Form 10-Q, September 30, 2001, File No. 1-8222)                                      |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.9   | Copy      of Capital Funds Agreement between the Company and Maine Yankee dated as      of May 20, 1968.  (Exhibit C-14, File No. 70-4658)                                                                                                                                                                                                                                                                                                                                                         |
|   | 10.9.1    Amendment      No. 1 dated August 1, 1985.  (Exhibit C-125, 1984 Form      10-K,               File      No. 1-8222)                                                                                                                                                                                                                                                                      |
| 10.10  | Copy      of Power Contract between the Company and Maine Yankee dated as of May 20,      1968.  (Exhibit C-15, File No. 70-4658)                                                                                                                                                                                                                                                                                                                                                                  |
|   | 10.10.1    Amendment      No. 1 dated March 1, 1984.  (Exhibit C-112, 1984 Form      10-K,                 File      No. 1-8222)                                                                                                                                                                                                                                                          |
|   | 10.10.2    Amendment      No. 2 effective January 1, 1984. (Exhibit C-113, 1984 Form      10-K,                 File      No. 1-8222)                                                                                                                                                                                                                                                               |
|   | 10.10.3    Amendment      No. 3 dated October 1, 1984.  (Exhibit C-114, 1984 Form      10-K,                 File      No. 1-8222)                                                                                                                                                                                                                                                        |
|   | 10.10.4    Additional      Power Contract dated February 1, 1984. (Exhibit C-126, 1985 Form      10-K,                 File      No. 1-8222)                                                                                                                                                                                                                                                        |
| 10.11  | Copy      of Three-Party Power Agreement dated as of November 21, 1969, among the      Company, Velco, and Green Mountain relating to purchase and sale of power      from Vermont Yankee Nuclear Power Corporation.  (Exhibit C-18,      File No. 2-38161)                                                                                                                                                                                                                                        |
|   | 10.11.1    Amendment      dated June 1, 1981.  (Exhibit 10.13.1, 1993 Form 10-K, File No.      1-8222)                                                                                                                                                                                                                                                                                                                                                                         |
|   | 10.11.2    Superseding      Three Party Power Agreement dated January 1, 1990. (Exhibit 10-201, 1990      Form 10-K, File No. 1-8222)                                                                                                                                                                                                                                                                                                                                                    |
|   | 10.11.3    Agreement      Amending Superseding Three Party Power Agreement dated May 1, 1991.      (Exhibit 10.4.2, 1991 Form 10-K, File No. 1-8222)                                                                                                                                                                                                                                                                                                                                     |
| 10.12  | Copy      of Three-Party Transmission Agreement dated as of November 21, 1969, among      the Company, Velco, and Green Mountain providing for transmission of power      from Vermont Yankee Nuclear Power Corporation.  (Exhibit C-19,      File No. 2-38161)                                                                                                                                                                                                                                    |
|   | 10.12.1    Amendment      dated June 1, 1981.  (Exhibit 10.14.1, 1993 Form 10-K, File No.      1-8222)                                                                                                                                                                                                                                                                                                                                                                         |
|   | 10.12.2   Amended      and Restated Three-Party Transmission Agreement between the Company,      Green               Mountain      Power Corporation, Vermont Electric Power Company, Inc., and Vermont      Transco,               LLC      effective November 30, 2006. (Exhibit 10.14.2, 2006 Form 10-K, File      No. 1-8222)  |
| 10.13  | Copy      of Stockholders Agreement dated September 25, 1957, between the Company,      Velco, Green Mountain and Citizens Utilities Company.  (Exhibit      No. C-20, File No. 70-3558)                                                                                                                                                                                                                                                                                                           |
| 10.14  | New      England Power Pool Agreement dated as of September 1, 1971, as amended to      November 1, 1975.  (Exhibit C-21, File No. 2-55385)                                                                                                                                                                                                                                                                                                                                                        |
|   | 10.14.1    Amendment      dated December 31, 1976.  (Exhibit 10.16.1, 1993 Form 10-K, File      No. 1-8222)                                                                                                                                                                                                                                                                                                                                                                    |

----

|   | 10.14.2    Amendment      dated January 23, 1977.  (Exhibit 10.16.2, 1993 Form 10-K, File      No. 1-8222)                                                                                                                                                                                                                                                                                               |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 10.14.3    Amendment      dated July 1, 1977.  (Exhibit 10.16.3, 1993 Form 10-K, File No.      1-8222)                                                                                                                                                                                                                                                                                                   |
|   | 10.14.4    Amendment      dated August 1, 1977.  (Exhibit 10.16.4, 1993 Form 10-K, File      No. 1-8222)                                                                                                                                                                                                                                                                                                 |
|   | 10.14.5    Amendment      dated August 15, 1978.  (Exhibit 10.16.5, 1993 Form 10-K, File      No. 1-8222)                                                                                                                                                                                                                                                                                                |
|   | 10.14.6    Amendment      dated January 31, 1979.  (Exhibit 10.16.6, 1993 Form 10-K, File      No. 1-8222)                                                                                                                                                                                                                                                                                               |
|   | 10.14.7    Amendment      dated February 1, 1980.  (Exhibit 10.16.7, 1993 Form 10-K, File      No. 1-8222)                                                                                                                                                                                                                                                                                               |
|   | 10.14.8    Amendment      dated December 31, 1976.  (Exhibit 10.16.8, 1993 Form 10-K, File      No. 1-8222)                                                                                                                                                                                                                                                                                              |
|   | 10.14.9    Amendment      dated January 31, 1977.  (Exhibit 10.16.9, 1993 Form 10-K, File      No. 1-8222)                                                                                                                                                                                                                                                                                               |
|   | 10.14.10  Amendment      dated July 1, 1977.  (Exhibit 10.16.10, 1993 Form 10-K, File No.      1-8222)                                                                                                                                                                                                                                                                                                             |
|   | 10.14.11  Amendment      dated August 1, 1977.  (Exhibit 10.16.11, 1993 Form 10-K, File      No. 1-8222)                                                                                                                                                                                                                                                                                                           |
|   | 10.14.12  Amendment      dated August 15, 1978.  (Exhibit 10.16.12, 1993 Form 10-K, File      No. 1-8222)                                                                                                                                                                                                                                                                                                          |
|   | 10.14.13  Amendment      dated January 31, 1980.  (Exhibit 10.16.13, 1993 Form 10-K, File      No. 1-8222)                                                                                                                                                                                                                                                                                                         |
|   | 10.14.14  Amendment      dated February 1, 1980.  (Exhibit 10.16.14, 1993 Form 10-K, File      No. 1-8222)                                                                                                                                                                                                                                                                                                         |
|   | 10.14.15  Amendment      dated September 1, 1981.  (Exhibit 10.16.15, 1993 Form 10-K,      File No. 1-8222)                                                                                                                                                                                                                                                                                                        |
|   | 10.14.16  Amendment      dated December 1, 1981.  (Exhibit 10.16.16, 1993 Form 10-K, File      No. 1-8222)                                                                                                                                                                                                                                                                                                         |
|   | 10.14.17  Amendment      dated June 15, 1983.  (Exhibit 10.16.17, 1993 Form 10-K, File      No. 1-8222)                                                                                                                                                                                                                                                                                                            |
|   | 10.14.18  Amendment      dated September 1, 1985.  (Exhibit 10-160, 1986 Form 10-K, File      No. 1-8222)                                                                                                                                                                                                                                                                                                          |
|   | 10.14.19  Amendment      dated April 30, 1987.  (Exhibit 10-172, 1987 Form 10-K, File No.      1-8222)                                                                                                                                                                                                                                                                                                             |
|   | 10.14.20  Amendment      dated March 1, 1988.  (Exhibit 10-178, 1988 Form 10-K, File No.      1-8222)                                                                                                                                                                                                                                                                                                              |
|   | 10.14.21  Amendment      dated March 15, 1989.  (Exhibit 10-194, 1989 Form 10-K, File No.      1-8222)                                                                                                                                                                                                                                                                                                             |
|   | 10.14.22  Amendment      dated October 1, 1990.  (Exhibit 10-203, 1990 Form 10-K, File      No. 1-8222)                                                                                                                                                                                                                                                                                                            |
|   | 10.14.23  Amendment      dated September 15, 1992.  (Exhibit 10.16.23, 1992 Form 10-K,      File No. 1-8222)                                                                                                                                                                                                                                                                                                       |
|   | 10.14.24  Amendment      dated May 1, 1993.  (Exhibit 10.16.24, 1993 Form 10-K, File No.      1-8222)                                                                                                                                                                                                                                                                                                              |
|   | 10.14.25  Amendment      dated June 1, 1993. (Exhibit 10.16.25, 1993 Form 10-K, File No.      1-8222)                                                                                                                                                                                                                                                                                                                        |
|   | 10.14.26  Amendment      dated June 1, 1994.  (Exhibit 10.16.26, 1994 Form 10-K, File No.      1-8222)                                                                                                                                                                                                                                                                                                             |
|   | 10.14.27  Thirty-Second      Amendment dated September 1, 1995. (Exhibit 10.16.27, Form      10-Q                 dated      September 30, 1995, File No. 1-8222 and Exhibit 10.16.27, 1995 Form      10-K,                 File      No. 1-8222)  |

----

|   | 10.14.28  Security      Agreement dated October 7, 2003 between Central Vermont Public      Service                Corporation      and ISO New England Inc. (Exhibit 10.16.28, Form 10-Q, September 30,      2003,                File      No. 1-8222)  |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.15  | Sharing      Agreement - 1979 Connecticut Nuclear Unit dated September 1, 1973, to      which the Company is a party. (Exhibit C-40, File No.2-50142)                                                                                                                                                                                                                                                                               |
|   | 10.15.1                                                                                                                                                                                                                                                                                                                                                                                                                                  | Amendment      dated as of August 1, 1974. (Exhibit C-41, File No. 2-51999)  |
|   | 10.15.2                                                                                                                                                                                                                                                                                                                                                                                                                                  | Instrument      of Transfer dated as of February 28, 1974, transferring partial interest      from the Company to Green Mountain.  (Exhibit C-42, File No.      2-52177)  |
|   | 10.15.3                                                                                                                                                                                                                                                                                                                                                                                                                                  | Instrument      of Transfer dated January 17, 1975, transferring a partial interest from      the Company to Burlington Electric Department.  (Exhibit C-43,      File No. 2-55458)  |
|   | 10.15.4                                                                                                                                                                                                                                                                                                                                                                                                                                  | Amendment      dated May 11, 1984.  (Exhibit C-110, 1984 Form 10-K, File No.      1-8222)  |
| 10.16  | Agreement      for Joint Ownership, Construction and Operation of William F. Wyman Unit      No. 4 dated November 1, 1974, among Central Maine Power Company and other      utilities including the Company.  (Exhibit C-46, File No.      2-52900)                                                                                                                                                                       |
|   | 10.16.1                                                                                                                                                                                                                                                                                                                                                                                                                                  | Amendment      dated as of June 30, 1975.  (Exhibit C-47, File No.      2-55458)  |
|   | 10.16.2                                                                                                                                                                                                                                                                                                                                                                                                                                  | Instrument      of Transfer dated July 30, 1975, assigning a partial interest from Velco      to the Company. (Exhibit C-48, File No. 2-55458)  |
| 10.17  | Transmission      Agreement dated November 1, 1974, among Central Maine Power Company and      other utilities including the Company with respect to William F. Wyman      Unit No. 4.  (Exhibit C-49, File No. 2-54449)                                                                                                                                                                                                  |
| 10.18  | Copy      of Power Contract between the Company and Yankee Atomic dated as of June      30, 1959.  (Exhibit C-61, 1981 Form 10-K, File No.      1-8222)                                                                                                                                                                                                                                                                   |
|   | 10.18.1                                                                                                                                                                                                                                                                                                                                                                                                                                  | Revision      dated April 1, 1975.  (Exhibit C-61, 1981 Form 10-K, File No.      1-8222)  |
|   | 10.18.2                                                                                                                                                                                                                                                                                                                                                                                                                                  | Amendment      dated May 6, 1988.  (Exhibit 10-181, 1988 Form 10-K, File No.      1-8222)  |
|   | 10.18.3                                                                                                                                                                                                                                                                                                                                                                                                                                  | Amendment      dated June 26, 1989.  (Exhibit 10-196, 1989 Form 10-K, File No.      1-8222)  |
|   | 10.18.4                                                                                                                                                                                                                                                                                                                                                                                                                                  | Amendment      dated July 1, 1989.  (Exhibit 10-197, 1989 Form 10-K, File No.      1-8222)  |
|   | 10.18.5                                                                                                                                                                                                                                                                                                                                                                                                                                  | Amendment      dated February 1, 1992  (Exhibit 10.25.5, 1992 Form 10-K, File      No. 1-8222)  |
|   | 10.18.6                                                                                                                                                                                                                                                                                                                                                                                                                                  | Amendment      to the Power Contract between the Company and Yankee Atomic Electric      Company dated October 1, 1980. (Exhibit 10.25.6, Form 10-Q, September 30,      2006, File No. 1-8222)  |
|   | 10.18.7                                                                                                                                                                                                                                                                                                                                                                                                                                  | Amendment      No. 3 to the Power Contract between the Company and Yankee Atomic Electric      Company dated April 1, 1985. (Exhibit 10.25.7, Form 10-Q, September 30,      2006, File No. 1-8222)  |
|   | 10.18.8                                                                                                                                                                                                                                                                                                                                                                                                                                  | Amendment      No. 8 to the Power Contract between the Company and Yankee Atomic Electric      Company dated June 1, 2003. (Exhibit 10.25.8, Form 10-Q, September 30,      2006, File No. 1-8222)  |

----

|   | 10.18.9                                                                                                                                                                                                                                                | Amendment      No. 9 to the Power Contract between the Company and Yankee Atomic Electric      Company dated November 17, 2005. (Exhibit 10.25.9, Form 10-Q, September      30, 2006, File No. 1-8222)  |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 10.18.10                                                                                                                                                                                                                                               | Amendment      No. 10 to the Power Contract between the Company and Yankee Atomic      Electric Company dated April 14, 2006. (Exhibit 10.25.10, Form 10-Q,      September 30, 2006, File No. 1-8222)   |
| 10.19  | Copy      of Transmission Contract between the Company and Yankee Atomic dated as of      June 30, 1959.  (Exhibit C-63, 1981 Form 10-K, File No.      1-8222)                                                                          |
| 10.20  | Copy      of Power Contract between the Company and Connecticut Yankee dated as of      June 1, 1964.  (Exhibit C-64, 1981 Form 10-K, File No.      1-8222)                                                                             |
|   | 10.20.1                                                                                                                                                                                                                                                | Supplementary      Power Contract dated March 1, 1978. (Exhibit C-94, 1982 Form 10-K, File      No. 1-8222)                                                                                             |
|   | 10.20.2                                                                                                                                                                                                                                                | Amendment      dated August 22, 1980.  (Exhibit C-95, 1982 Form 10-K, File No.      1-8222)                                                                                                   |
|   | 10.20.3                                                                                                                                                                                                                                                | Amendment      dated October 15, 1982.  (Exhibit C-96, 1982 Form 10-K, File No.      1-8222)                                                                                                  |
|   | 10.20.4                                                                                                                                                                                                                                                | Second      Supplementary Power Contract dated April 30, 1984.  (Exhibit      C-115, 1984 Form 10-K, File No. 1-8222)                                                                         |
|   | 10.20.5                                                                                                                                                                                                                                                | Additional      Power Contract dated April 30, 1984. (Exhibit C-116, 1984 Form 10-K, File      No. 1-8222)                                                                                              |
|   | 10.20.6                                                                                                                                                                                                                                                | 1987      Supplementary Power Contract, dated as of April 1,      1987.  (Exhibit 10.27.6, Form 10-Q, June 30, 2000, File No.      1-8222)                                                    |
|   | 10.20.7                                                                                                                                                                                                                                                | 1996      Amendatory Agreement, dated December 1, 1996. (Exhibit 10.27.7, Form 10-Q,      June 30, 2000, File No. 1-8222)                                                                               |
|   | 10.20.8                                                                                                                                                                                                                                                | 2000      Amendatory Agreement, dated May, 2000. (Exhibit 10.27.8, Form 10-Q, June      30, 2000, File No. 1-8222)                                                                                      |
| 10.21  | Copy      of Transmission Contract between the Company and Connecticut Yankee dated      as of July 1, 1964.  (Exhibit C-65, 1981 Form 10-K, File No.      1-8222)                                                                      |
| 10.22  | Copy      of Capital Funds Agreement between the Company and Connecticut Yankee      dated as of July 1, 1964.  (Exhibit C-66, 1981 Form 10-K, File      No. 1-8222)                                                                    |
|   | 10.22.1                                                                                                                                                                                                                                                | Copy      of Capital Funds Agreement between the Company and Connecticut Yankee      dated as of September 1, 1964. (Exhibit C-67, 1981 Form 10-K, File No.      1-8222)                                |
| 10.23  | Copy      of Five-Year Capital Contribution Agreement between the Company and      Connecticut Yankee dated as of November 1, 1980. (Exhibit C-68, 1981 Form      10-K, File No. 1-8222)                                                          |
| 10.24  | Form      of Guarantee Agreement dated as of November 7, 1981, among certain banks,      Connecticut Yankee and the Company, relating to revolving credit notes of      Connecticut Yankee. (Exhibit C-69, 1981 Form 10-K, File No.      1-8222)  |

----

| 10.25  | Form      of Guarantee Agreement dated as of November 13, 1981, between The      Connecticut Bank and Trust Company, as Trustee, and the Company, relating      to debentures of Connecticut Yankee. (Exhibit C-70, 1981 Form 10-K, File      No. 1-8222)                                                                                                    |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.26  | Preliminary      Vermont Support Agreement re Quebec interconnection between Velco and      among seventeen Vermont Utilities dated May 1, 1981.  (Exhibit      C-97, 1982 Form 10-K, File No. 1-8222)                                                                                                                                             |
|   | 10.26.1                                                                                                                                                                                                                                                                                                                                                           | Amendment      dated June 1, 1982.  (Exhibit C-98, 1982 Form 10-K, File No.      1-8222)  |
| 10.27  | Vermont      Participation Agreement for Quebec Interconnection between Velco and among      seventeen Vermont Utilities dated July 15, 1982.  (Exhibit C-99,      1982 Form 10-K, File No. 1-8222)                                                                                                                                                |
|   | 10.27.1                                                                                                                                                                                                                                                                                                                                                           | Amendment      No. 1 dated January 1, 1986.  (Exhibit C-132, 1986 Form 10-K,      File No. 1-8222)  |
| 10.28  | Vermont      Electric Transmission Company Capital Funds Support Agreement between      Velco and among sixteen Vermont Utilities dated July 15,      1982.  (Exhibit C-100, 1982 Form 10-K, File No.      1-8222)                                                                                                                                 |
| 10.29  | Vermont      Transmission Line Support Agreement, Vermont Electric Transmission Company      and twenty New England Utilities dated December 1, 1981, as amended by      Amendment No. 1 dated June 1, 1982, and by Amendment No. 2 dated November      1, 1982.  (Exhibit C-101, 1982 Form 10-K, File No.      1-8222)                            |
|   | 10.29.1                                                                                                                                                                                                                                                                                                                                                           | Amendment      No. 3 dated January 1, 1986.  (Exhibit 10-149, 1986 Form 10-K,      File No. 1-8222)  |
| 10.30  | Phase      1 Terminal Facility Support Agreement between New England Electric      Transmission Corporation and twenty New England Utilities dated December      1, 1981, as amended by Amendment No. 1 dated as of June 1, 1982 and by      Amendment No. 2 dated as of November 1, 1982.  (Exhibit C-102,      1982 Form 10-K, File No. 1-8222)  |
| 10.31  | Power      Purchase Agreement between Velco and CVPS dated June 1,      1981.  (Exhibit C-103, 1982 Form 10-K, File No.      1-8222)                                                                                                                                                                                                               |
| 10.32  | Agreement      for Joint Ownership, Construction and Operation of the Joseph C. McNeil      Generating Station by and between City of Burlington Electric Department,      Central Vermont Realty, Inc. and Vermont Public Power Supply Authority      dated May 14, 1982. (Exhibit C-107, 1983 Form 10-K, File No.      1-8222)                             |
|   | 10.32.1                                                                                                                                                                                                                                                                                                                                                           | Amendment      No. 1 dated October 5, 1982.  (Exhibit C-108, 1983 Form 10-K,      File No. 1-8222)  |
|   | 10.32.2                                                                                                                                                                                                                                                                                                                                                           | Amendment      No. 2 dated December 30, 1983.  (Exhibit C-109, 1983 Form 10-K,      File No. 1-8222)  |
|   | 10.32.3                                                                                                                                                                                                                                                                                                                                                           | Amendment      No. 3 dated January 10, 1984.  (Exhibit 10-143, 1986 Form 10-K,      File No. 1-8222)  |
| 10.33  | Transmission      Service Contract between Central Vermont Public Service Corporation and      The Vermont Electric Generation & Transmission Cooperative, Inc. dated      May 14, 1984.  (Exhibit C-111, 1984 Form 10-K, File No.      1-8222)                                                                                                |
| 10.34  | Copy      of Highgate Transmission Interconnection Preliminary Support Agreement      dated April 9, 1984.  (Exhibit C-117, 1984 Form 10-K, File No.      1-8222)                                                                                                                                                                                  |
| 10.35  | Copy      of Allocation Contract for Hydro-Quebec Firm Power dated July 25,      1984.  (Exhibit C-118, 1984 Form 10-K, File No.      1-8222)                                                                                                                                                                                                      |
|   | 10.35.1                                                                                                                                                                                                                                                                                                                                                           | Tertiary      Energy for Testing of the Highgate HVDC Station Agreement, dated September      20, 1985.  (Exhibit C-129, 1985 Form 10-K, File No.      1-8222)  |

----

| 10.36  | Copy      of Highgate Operating and Management Agreement dated August 1,      1984.  (Exhibit C-119, 1986 Form 10-K, File No.      1-8222)                                                                                                                                                                                        |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 10.36.1                                                                                                                                                                                                                                                                                                                                          | Amendment      No. 1 dated April 1, 1985.  (Exhibit 10-152, 1986 Form 10-K,      File No. 1-8222)  |
|   | 10.36.2                                                                                                                                                                                                                                                                                                                                          | Amendment      No. 2 dated November 13, 1986.  (Exhibit 10-167, 1987 Form 10-K,      File No. 1-8222)  |
|   | 10.36.3                                                                                                                                                                                                                                                                                                                                          | Amendment      No. 3 dated January 1, 1987.  (Exhibit 10-168, 1987 Form 10-K,      File No. 1-8222)  |
| *      | 10.36.4                                                                                                                                                                                                                                                                                                                                          | Amendment      No. 4 dated December 1, 2008.  |
| 10.37  | Copy      of Highgate Construction Agreement dated August 1, 1984. (Exhibit C-120,      1984 Form 10-K, File No. 1-8222)                                                                                                                                                                                                                    |
|   | 10.37.1                                                                                                                                                                                                                                                                                                                                          | Amendment      No. 1 dated April 1, 1985.  (Exhibit 10-151, 1986 Form 10-K,      File No. 1-8222)  |
| 10.38  | Copy      of Agreement for Joint Ownership, Construction and Operation of the      Highgate Transmission Interconnection.  (Exhibit C-121, 1984      Form 10-K, File No. 1-8222)                                                                                                                                                  |
|   | 10.38.1                                                                                                                                                                                                                                                                                                                                          | Amendment      No. 1 dated April 1, 1985.  (Exhibit 10-153, 1986 Form 10-K,      File No. 1-8222)  |
|   | 10.38.2                                                                                                                                                                                                                                                                                                                                          | Amendment      No. 2 dated April 18, 1985.  (Exhibit 10-154, 1986 Form 10-K,      File No. 1-8222)  |
|   | 10.38.3                                                                                                                                                                                                                                                                                                                                          | Amendment      No. 3 dated February 12, 1986.  (Exhibit 10-155, 1986 Form 10-K,      File No. 1-8222)  |
|   | 10.38.4                                                                                                                                                                                                                                                                                                                                          | Amendment      No. 4 dated November 13, 1986.  (Exhibit 10-169, 1987 Form 10-K,      File No. 1-8222)  |
|   | 10.38.5                                                                                                                                                                                                                                                                                                                                          | Amendment      No. 5 and Restatement of Agreement dated January 1,      1987.  (Exhibit 10-170, 1987 Form 10-K, File No.      1-8222)  |
| 10.39  | Copy      of the Highgate Transmission Agreement dated August 1,      1984.  (Exhibit C-122, 1984 Form 10-K, File No.      1-8222)                                                                                                                                                                                                |
| 10.40  | Copy      of Preliminary Vermont Support Agreement Re: Quebec Interconnection -      Phase II dated September 1, 1984. (Exhibit C-124, 1984 Form 10-K, File No.      1-8222)                                                                                                                                                                |
|   | 10.40.1                                                                                                                                                                                                                                                                                                                                          | First      Amendment dated March 1, 1985.  (Exhibit C-127, 1985 Form 10-K,      File No. 1-8222)  |
| 10.41  | Vermont      Transmission and Interconnection Agreement between New England Power      Company and Central Vermont Public Service Corporation and Green Mountain      Power Corporation with the consent of Vermont Electric Power Company,      Inc., dated May 1, 1985.  (Exhibit C-128, 1985 Form 10-K, File      No. 1-8222)  |
| 10.42  | System      Sales & Exchange Agreement Between Niagara Mohawk Power Corporation      and Central Vermont Public Service Corporation dated October 1,      1986.  (Exhibit C-133, 1986 Form 10-K, File No.      1-8222)                                                                                                        |
| 10.43  | Transmission      Agreement between Vermont Electric Power Company, Inc. and Central Vermont      Public Service Corporation dated January 1, 1986.  (Exhibit      10-146, 1986 Form 10-K, File No. 1-8222)                                                                                                                       |
| 10.44  | 1985      Four-Party Agreement between Vermont Electric Power Company, Central      Vermont Public Service Corporation, Green Mountain Power Corporation and      Citizens Utilities dated July 1, 1985.  (Exhibit 10-147, 1986      Form 10-K, File No. 1-8222)                                                                  |

----

|   | 10.44.1                                                                                                                                                                                                                                                                           | Amendment      dated February 1, 1987.  (Exhibit 10-171, 1987 Form 10-K, File      No. 1-8222)          |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------|
| 10.45  | 1985      Option Agreement between Vermont Electric Power Company, Central Vermont      Public Service Corporation, Green Mountain Power Corporation and Citizens      Utilities dated December 27, 1985.  (Exhibit 10-148, 1986 Form      10-K, File No. 1-8222)  |
|   | 10.45.1                                                                                                                                                                                                                                                                           | Amendment      No. 1 dated September 28, 1988.  (Exhibit 10-182, 1988 Form      10-K, File No. 1-8222)  |
|   | 10.45.2                                                                                                                                                                                                                                                                           | Amendment      No. 2 dated October 1, 1991.  (Exhibit 10.56.2, 1991 Form 10-K,      File No. 1-8222)    |
|   | 10.45.3                                                                                                                                                                                                                                                                           | Amendment      No. 3 dated December 31, 1994.  (Exhibit 10.56.3, 1994 Form      10-K, File No. 1-8222)  |
|   | 10.45.4                                                                                                                                                                                                                                                                           | Amendment      No. 4 dated December 31, 1996.  (Exhibit 10.56.4, 1996 Form      10-K, file No. 1-8222)  |
| 10.46  | Highgate      Transmission Agreement dated August 1, 1984 by and between the owners of      the project and the Vermont electric distribution      companies.  (Exhibit 10-156, 1986 Form 10-K, File No.      1-8222)                                              |
|   | 10.46.1                                                                                                                                                                                                                                                                           | Amendment      No. 1 dated September 22, 1985.  (Exhibit 10-157, 1986 Form      10-K, File No. 1-8222)  |
| 10.47  | Vermont      Support Agency Agreement re: Quebec Interconnection - Phase II between      Vermont Electric Power Company, Inc. and participating Vermont electric      utilities dated June 1, 1985. (Exhibit 10-158, 1986 Form 10K, File No.      1-8222)                    |
|   | 10.47.1                                                                                                                                                                                                                                                                           | Amendment      No. 1 dated June 20, 1986.  (Exhibit 10-159, 1986 Form 10-K,      File No. 1-8222)       |
| 10.48  | Indemnity      Agreement B-39 dated May 9, 1969 with amendments 1-16 dated April 17, 1970      thru April 16, 1985 between licensees of Millstone Unit No. 3 and the      Nuclear Regulatory Commission. (Exhibit 10-161, 1986 Form 10-K, File No.      1-8222)              |
|   | 10.48.1                                                                                                                                                                                                                                                                           | Amendment      No. 17 dated November 25, 1985.  (Exhibit 10-162, 1986 Form      10-K, File No. 1-8222)  |
| 10.49  | Contract      for the Sale of 50MW of firm power between Hydro-Quebec and Vermont Joint      Owners of Highgate Facilities dated February 23, 1987.  (Exhibit      10-173, 1987 Form 10-K, File No. 1-8222)                                                        |
| 10.50  | Interconnection      Agreement between Hydro-Quebec and Vermont Joint Owners of Highgate      facilities dated February 23, 1987. (Exhibit 10-174, 1987 Form 10-K, File      No. 1-8222)                                                                                     |
|   | 10.50.1                                                                                                                                                                                                                                                                           | Amendment      dated September 1, 1993  (Exhibit 10.63.1, 1993 Form 10-K, File      No. 1-8222)         |
| 10.51  | Firm      Power and Energy Contract by and between Hydro-Quebec and Vermont Joint      Owners of Highgate for 500MW dated December 4, 1987.  (Exhibit      10-175, 1987 Form 10-K, File No. 1-8222)                                                                |
|   | 10.51.1                                                                                                                                                                                                                                                                           | Amendment      No. 1 dated August 31, 1988.  (Exhibit 10-191, 1988 Form 10-K,      File No. 1-8222)     |
|   | 10.51.2                                                                                                                                                                                                                                                                           | Amendment      No. 2 dated September 19, 1990.  (Exhibit 10-202, 1990 Form      10-K, File No. 1-8222)  |

----

|   | 10.51.3                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Firm      Power & Energy Contract dated January 21, 1993 by and between      Hydro-Quebec and Central Vermont Public Service Corporation for the sale      back of 25 MW of power.  (Exhibit 10.64.3, 1992 Form 10-K, File      No. 1-8222)                                                                                                                                                                         |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 10.51.4                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Firm      Power & Energy Contract dated January 21, 1993 by and between      Hydro-Quebec and Central Vermont Public Service Corporation for the sale      back of 50 MW of power.  (Exhibit 10.64.4, 1992 Form 10-K, File      No. 1-8222)                                                                                                                                                                         |
| 10.52  | Hydro-Quebec      Participation Agreement dated April 1, 1988 for 600 MW between      Hydro-Quebec and Vermont Joint Owners of Highgate.  (Exhibit      10-177, 1988 Form 10-K, File No. 1-8222)                                                                                                                                                                                                                                                                                                                                                                                       |
|   | 10.52.1                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Hydro-Quebec      Participation Agreement dated April 1, 1988 as amended and restated by      Amendment No. 5 thereto dated October 21, 1993, among Vermont utilities      participating in the purchase of electricity under the Firm Power and      Energy Contract by and between Hydro-Quebec and Vermont Joint Owners of      Highgate.  (Exhibit 10.66.1, 1997 Form 10-Q, March 31, 1997,      File. No. 1-8222)  |
| 10.53  | Sale      of firm power and energy (54MW) between Hydro-Quebec and Vermont Utilities      dated December 29, 1988.  (Exhibit 10-183, 1988 Form 10-K, File      No. 1-8222)                                                                                                                                                                                                                                                                                                                                                                                                             |
| 10.54  | Settlement      Agreement effective dated June 1, 2001 to which the Company is a party re:      Vermont Yankee Nuclear Power Corporation.  (Exhibit 10-84, Form      10-Q, June 30, 2001, File No. 1-8222)                                                                                                                                                                                                                                                                                                                                                                             |
| 10.55  | Form      of Secondary Purchaser Settlement Agreement dated December 6, 2001, with      Acknowledgement and Consent of VELCO, among the Company, Green Mountain      Power Corporation and each of: City of Burlington Electric Department;      Village of Lyndonville Electric Department; Village of Northfield Electric      Department; Village of Orleans Electric Department; Town of Hardwick      Electric Department; Town of Stowe Electric Department; and, Washington      Electric Cooperative. (Exhibit 10-85, 2001 Form 10-K, File No.      1-8222)                              |
| 10.56  | Memorandum      of Understanding, dated September 11, 2006, between the Vermont Department      of Public Service and Central Vermont Public Service Corporation. (Exhibit      10.93, Current Report on Form 8-K Filed September 11, 2006, File No.      1-8222)                                                                                                                                                                                                                                                                                                                                |
|   | 10.56.1        First      Amendment to Memorandum of Understanding, dated November 3, 2006, between      the                    Vermont      Department of Public Service and Central Vermont Public Service      Corporation.                    (Exhibit      10.93, Current Report on Form 8-K Filed November 6, 2006, File No.      1-8222)  |
| 10.57  | Operating      Agreement of Vermont Transco, LLC effective July 1, 2006. (Exhibit 10.94,      2006 Form 10-K, File No. 1-8222)                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| 10.58  | Amended      and Restated 1991 Transmission Agreement between Vermont Transco, LLC and      (to electric utilities furnishing service within the State of Vermont)      effective June 20, 2006. (Exhibit 10.95, 2006 Form 10-K, File No.      1-8222)                                                                                                                                                                                                                                                                                                                                           |
| 10.59  | Memorandum      of Understanding, dated November 29, 2007, between the Vermont Department      of Public Service and Central Vermont Public Service Corporation. (Exhibit      10.96, Current Report on Form 8-K Filed November 30, 2007, File No.      1-8222)                                                                                                                                                                                                                                                                                                                                  |
| 10.60  | Credit      Agreement dated as of December 28, 2007 between Central Vermont Public      Service Corporation, as Borrower and KeyBank National Association, as      Lender. (Exhibit 10.97, Current Report of Form 8-K Filed January 4, 2008,      File No. 1-8222)                                                                                                                                                                                                                                                                                                                               |

----

|                | 10.61                                                                                                                                                                                                      | Credit      Agreement dated as of November 3, 2008 between Central Vermont Public      Service Corporation, as Borrower and KeyBank National Association, as      Lender.  (Exhibit 10.98, Current Report on Form 8-K Filed      November 7, 2008, File No. 1-8222)                   |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                | 10.62                                                                                                                                                                                                      | Memorandum      of Understanding, dated December 17, 2008, between the Vermont Department      of Public Service and Central Vermont Public Service      Corporation.  (Exhibit 10.99, Current Report on Form 8-K Filed      December 18, 2008, File No. 1-8222)                      |
|                | 10.63                                                                                                                                                                                                      | Agreement      between Central Vermont Public Service Corporation and Local Union No. 300      International Brotherhood of Electrical Workers Effective as of January 1,      2009.  (Exhibit 10.100, Current Report on Form 8-K Filed January      7, 2009, File No. 1-8222)   |
|                | EXECUTIVE      COMPENSATION PLANS AND ARRANGEMENTS                                                                                                                                                    |
|                | A      10.1                                                                                                                                                                                                | Directors’      Supplemental Deferred Compensation Plan dated November 4,      1985.  (Exhibit 10-188, 1988 Form 10-K, File No.      1-8222)                                                                                                                                    |
|                |                                                                                                                                                                                                       | A      10.1.1                                                                                                                                                                                                                                                                                        | Amendment      dated October 2, 1995.  (Exhibit 10.72.1, 1995 Form 10-K, File      No. 1-8222)  |
|                | A      10.2                                                                                                                                                                                                | Directors’      Supplemental Deferred Compensation Plan dated January 1, 1990 (Exhibit      10.80, 1993 Form 10-K, File No. 1-8222)                                                                                                                                                       |
|                |                                                                                                                                                                                                       | A      10.2.1                                                                                                                                                                                                                                                                                        | Amendment      dated October 2, 1995.  (Exhibit No. 10.80.1, 1995 Form 10-K,      File No. 1-8222)  |
|                | A      10.3                                                                                                                                                                                                | Officers’      Supplemental Retirement and Deferred Compensation Plan, Amended and      Restated August 4, 2008, With an Effective Dated of January 1,      2008.  (Exhibit A 10.3.1, Form 10-Q, June 30, 2008, File No.      1-8222)                                           |
|                | A      10.4                                                                                                                                                                                                | 1997      Stock Option Plan for Key Employees (Exhibit 4.3 to Registration      Statement, Registration 333-57001)                                                                                                                                                                              |
|                | A      10.5                                                                                                                                                                                                | Officers’      Change of Control Agreements as approved April 3,      2000.  (Exhibit A 10.92, Form 10-Q, March 31, 2000, File No.      1-8222)                                                                                                                                 |
|                |                                                                                                                                                                                                       | A      10.5.1                                                                                                                                                                                                                                                                                        | Form      of Change In Control Agreement as Amended May 6, 2008.  (Exhibit      A 10.5.1, Form 10-Q, March 31, 2008, File No. 1-8222)  |
|                | A      10.6                                                                                                                                                                                                | Form      of Change In Control Agreement to Become Effective April      2009.  (Exhibit A 10.5.2, Form 10-Q, March 31, 2008, File No.      1-8222)                                                                                                                                    |
|                | A      10.7                                                                                                                                                                                                | 2000      Stock Option Plan for Key Employees.  (Previously filed as      Schedule A, Form DEF 14A - Proxy Statement, March 28, 2000, File No.      1-8222) - (Exhibit A 10.95, September 30, 2006 Form 10-Q, File No.      1-8222)                                                   |
|                | A      10.8                                                                                                                                                                                                | Deferred      Compensation Plan for Officers and Directors of Central Vermont Public      Service Corporation, Amended and Restated Effective August 4, 2008, With      An Effective Date of January 1, 2005.  (Exhibit A 10.7.1, Form      10-Q, June 30, 2008, File No. 1-8222)     |
| * A      10.9  | Omnibus      Stock Plan (Amended and Restated 2002 Long-Term Incentive      Plan).  (Previously filed as Schedule A, Form DEF 14A - Proxy      Statement, March 28, 2008, File No. 1-8222)  |
|                | A      10.10                                                                                                                                                                                               | Performance      Share Incentive Plan, Effective January 1, 2007. (Exhibit A 10.100.3, 2006      Form 10-K, File No. 1-8222)                                                                                                                                                                    |

----

|                                                                | A      10.10.1                                                                                                                                                                                                                                                                 | Performance      Share Incentive Plan, Effective January 1, 2007 and Amended January 1,      2008.  (Exhibit A 10.10.1, 2007 Form 10-K, File No.      1-8222)                                                                     |
|---------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| A      10.11                                                        | Performance      Share Incentive Plan, Effective January 1, 2008.  (Exhibit A      10.11, 2007 Form 10-K, File No. 1-8222)                                                                                                                                      |
| A      10.12                                                        | Form      of Central Vermont Public Service Performance Share Agreement Pursuant to      the Performance Share Incentive Plan. (Exhibit A 10.101, Form 10-Q,      September 30, 2004, File No. 1-8222)                                                                    |
| A      10.13                                                        | Form      of Central Vermont Public Service Corporation Stock Option Agreement      Pursuant to the 2002 Long-Term Incentive Plan. (Exhibit A 10.102, Form      10-Q, September 30, 2004, File No. 1-8222)                                                                |
| A      10.14                                                        | Form      of Central Vermont Public Service Corporation Stock Option Agreement      Pursuant to the 2000 Stock Option Plan for Key Employees of Central      Vermont Public Service Corporation. (Exhibit A 10.103, Form 10-Q,      September 30, 2004, File No. 1-8222)  |
| A      10.15                                                        | Form      of Central Vermont Public Service Corporation Stock Option Agreement      Pursuant to the 1997 Stock Option Plan for Key Employees of Central      Vermont Public Service Corporation. (Exhibit A 10.104, Form 10-Q,      September 30, 2004, File No. 1-8222)  |
| A      10.16                                                        | Form      of Indemnity Agreement between Directors and Executive Officers and      Central Vermont Public Service Corporation.  (Exhibit A 10.105,      2004 Form 10-K, File No. 1-8222)                                                                        |
| A -      Compensation related plan, contract, or arrangement.  |
|                                                                | 12                                                                                                                                                                                                                                                                             | Statements      Regarding Computation of Ratios                                                                                                                                                                                             |
|                                                                | *                                                                                                                                                                                                                                                                              | 12.1      Statements Regarding Computation of Ratios                                                                                                                                                                                        |
|                                                                | 21                                                                                                                                                                                                                                                                             | Subsidiaries      of the Registrant                                                                                                                                                                                                         |
|                                                                | *                                                                                                                                                                                                                                                                              | 21.1  List      of Subsidiaries of Registrant                                                                                                                                                                                     |
|                                                                | 23                                                                                                                                                                                                                                                                             | Consent      of Independent Registered Public Accounting Firm                                                                                                                                                                               |
|                                                                | *                                                                                                                                                                                                                                                                              | 23.1  Consent      of Independent Registered Public Accounting Firm (D&T)                                                                                                                                                     |
|                                                                | *                                                                                                                                                                                                                                                                              | 23.2  Consent      of Independent Registered Public Accounting Firm (KPMG -      VELCO)                                                                                                                                           |
|                                                                | *                                                                                                                                                                                                                                                                              | 23.3  Consent      of Independent Registered Public Accounting Firm (KPMG - VT      Transco)                                                                                                                                      |
|                                                                | 24                                                                                                                                                                                                                                                                             | Power      of Attorney                                                                                                                                                                                                                      |
|                                                                | *                                                                                                                                                                                                                                                                              | 24.1  Power      of Attorney executed by Directors and Officers of Company                                                                                                                                                        |
|                                                                | *                                                                                                                                                                                                                                                                              | 31.1  Certification      of Principal Executive Officer Pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                                                           |
|                                                                | *                                                                                                                                                                                                                                                                              | 31.2  Certification      of Principal Financial Officer Pursuant to Section 302 of the      Sarbanes-Oxley Act of 2002.                                                                                                           |
|                                                                | *                                                                                                                                                                                                                                                                              | 32.1  Certification      of Principal 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 Principal Financial Officer Pursuant to 18 U.S.C. Section 1350, as      Adopted Pursuant         to      Section 906 of the Sarbanes-Oxley Act of 2002.  |
|                                                                | *                                                                                                                                                                                                                                                                              | 99.1  Financial      Statements of Vermont Electric Power Company, Inc. and      Subsidiary                                                                                                                                       |
|                                                                | *                                                                                                                                                                                                                                                                              | 99.2  Financial      Statements of Vermont TranscoLLC.                                                                                                                                                                                 |

----

| CENTRAL      VERMONT PUBLIC SERVICE CORPORATION                                                                                                                                      |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Schedule      II - Valuation and Qualifying Accounts                                                                                                                                 |
|                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
| For      the Years Ended December 31                                                                                                                                                 |   |   | Additions |   |   |   |   |
|                                                                                                                                                                                 | Balance      at |   | Charged      to |   | Charged |   |   |   | Balance      at |
|                                                                                                                                                                                 | beginning |   | cost      and |   | to      other |   |   |   | end      of |
| 2008                                                                                                                                                                                 | of      year |   | expenses |   | accounts |   | Deductions |   | year |
| Reserves deducted from      assets to which they apply:                                                                                                                              |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                 |   |   |   |   | $112,413 | (1) |   |   |   |
|                                                                                                                                                                                 |   |   |   |   | $474,398 | (2) |   |   |   |
| Reserve      for uncollectible accounts receivable                                                                                                                                   | $1,751,069 |   | $2,472,997 |   | $586,811 |   | $2,627,277 | (3) | $2,183,600 |
| Reserve      for uncollectible accounts receivable - affiliates                                                                                                                      | $47,848 |   |   |   |   |   | $47,848 |   | $0 |
| Accumulated      depreciation of non-utility property                                                                                                                                | $3,681,992 |   | $202,767 |   |   |   | $227,349 |   | $3,657,410 |
| Reserves shown      separately:                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
| Environmental      Reserve                                                                                                                                                           | $1,917,674 |   |   |   |   |   | $186,123 |   | $1,731,551 |
|                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
| 2007                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Reserves deducted from      assets to which they apply:                                                                                                                              |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                 |   |   |   |   | $127,125 | (1) |   |   |   |
|                                                                                                                                                                                 |   |   |   |   | $405,882 | (2) |   |   |   |
| Reserve      for uncollectible accounts receivable                                                                                                                                   | $1,706,747 |   | $2,412,498 |   | $533,007 |   | $2,901,183 | (3) | $1,751,069 |
| Reserve      for uncollectible accounts receivable - affiliates                                                                                                                      | $47,848 |   |   |   |   |   |   |   | $47,848 |
|                                                                                                                                                                                 |   |   |   |   |   |   | $234,401 |   |   |
|                                                                                                                                                                                 |   |   |   |   |   |   | $330,899 | (7) |   |
| Accumulated      depreciation of non-utility property                                                                                                                                | $4,047,663 |   | $199,629 |   |   |   | $565,300 |   | $3,681,992 |
| Reserves shown      separately:                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
| Environmental      Reserve                                                                                                                                                           | $2,076,282 |   |   |   |   |   | $158,608 |   | $1,917,674 |
|                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
| 2006                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Reserves deducted from      assets to which they apply:                                                                                                                              |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                 |   |   |   |   | $106,373 | (1) | $1,757,826 | (3) |   |
|                                                                                                                                                                                 |   |   |   |   | $762,154 | (2) | $1,390,104 | (5) |   |
| Reserve      for uncollectible accounts receivable                                                                                                                                   | $2,614,137 |   | $1,372,013 |   | $868,527 |   | $3,147,930 |   | $1,706,747 |
| Reserve      for uncollectible accounts receivable - affiliates                                                                                                                      | $47,913 |   |   |   |   |   | $65 |   | $47,848 |
| Accumulated      depreciation of non-utility property                                                                                                                                | $4,063,491 |   | $201,469 |   |   |   | $217,297 |   | $4,047,663 |
| Reserves shown      separately:                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
| Injuries      and damages reserve (4)                                                                                                                                                | $200,000 |   |   |   |   |   | $200,000 |   | $0 |
| Environmental      Reserve                                                                                                                                                           | $5,426,110 |   |   |   |   |   | $3,349,828 | (6) | $2,076,282 |
|                                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
| Notes:                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |
| (1)  Amount      collected from collection agencies                                                                                                                        |   |   |   |   |   |   |   |   |   |
| (2)  Collections      of accounts previously written off                                                                                                                   |   |   |   |   |   |   |   |   |   |
| (3)  Uncollectible      accounts written off                                                                                                                               |   |   |   |   |   |   |   |   |   |
| (4)  This      represents our long-term reserve for injuries & damages needed to meet      our liability not covered by insurance.  We are      self-insured |
|        $200,000;      therefore, any activity for the year is charged to expense and recorded to      the current liability                       |   |   |   |
| (5)  Settlement      of accounts related to pole attachment tariff resolution                                                                                              |   |   |   |   |   |   |   |   |
| (6)  Reduction      of reserve based on updated cost estimates for remediation                                                                                             |   |   |   |   |   |   |   |   |
| (7)  Reclassified      to utility property                                                                                                                                 |   |   |   |   |   |   |   |   |   |

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| Signature                                                                                                                                                                                                                                                                                                                                                                             | Title                                                                                                                                                                                                                                                                                                                                                |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Robert      H. Young*   /s/ Pamela      J.      Keefe         (Pamela      J. Keefe) Mary      Alice McKenzie* Robert      L. Barnett* Robert      G. Clarke* Bruce      M. Lisman* William      R. Sayre* Janice      L. Scites* William      J. Stenger* Douglas      J. Wacek* | President      and Chief Executive Officer, and Director (Principal Executive      Officer) Vice      President, Chief Financial Officer, and Treasurer(Principal      Financial and Accounting Officer) Chair      of the Board of Directors Director Director Director Director Director Director Director |

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