Transmission upgrade investments yield big returns for CVPS and Green Mountain Power

State utilities make millions of dollars each year from investments to upgrade the state’s transmission system, known as Vermont Transco.

The state’s two largest electric power companies, Central Vermont Public Service and Green Mountain Power, have made the most significant investments in Transco and also have the most to gain financially from the high rate of return, 11.5 percent on average, that regulators allow on transmission infrastructure.

Central Vermont Public Service Corp. made investments in Transco from 2006 to 2011 that returned more than $15 million annually. Green Mountain Power earns about $13 million in returns on investment annually from its share of Transco investments. Representatives from both utilities and an entity known as VELCO, which manages the transmission infrastructure limited liability subsidiary Vermont Transco, say most of this money goes toward reducing electric rates for businesses, institutions and consumers.

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