Central Vermont Public Service (CVPS), the largest utility in the US state of Vermont, has agreed to acquire hydroelectric and transmission facilities from Vermont Marble in a US$29M deal.
CVPS announced this week that it had reached a settlement with the Vermont Department of Public Service, the Town of Proctor Selectboard and Omya Inc. for the purchase of the assets of and consolidation of service territory of the Vermont Marble Power Division of Omya.
The transaction has already been approved by the Federal Energy Regulatory Commission, which regulates the hydro sites and transmission facilities involved in the sale, but must also be approved by the Vermont Public Service Board.
Under the deal, the purchase price of the previously announced sale will decrease from $33.2M to approximately $29.25M, including $28.25M for Vermont Marble’s hydroelectric facilities and about $1M for the other assets.
“The Department of Public Service raised concerns about the purchase price, which led to further negotiations and a reduced price,” CVPS Executive Chairman Bob Young said. “The Town of Proctor was also helpful in suggesting ways to reduce the impact of rate changes on customers, which led to the long-term phase-in for residential customers.”
Included in the sale are rights to serve about 875 customers in Proctor, including the Omya industrial facility in Florence, which will become CVPS’ single-largest customer. The sale also includes four hydroelectric facilities with a current combined capacity of 18.5MW. After the acquisition, CVPS will own and operate the largest fleet of hydroelectric generating stations in all of New England.
CVPS plans to invest an estimated $15M to upgrade the Vermont Marble facilities and operate them in conjunction with the company’s existing Otter Creek and East Creek hydro operations.