SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C.  20549

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                                    FORM 8-K


              CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

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                DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED):
                                JANUARY 23, 2001


                                GREEN MOUNTAIN POWER CORPORATION
             (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)


     VERMONT                                    03-0127430
(STATE  OR  OTHER  JURISDICTION  OF  INCORPORATION)                      (I.R.S.
EMPLOYER  IDENTIFICATION  NUMBER)


                                          1-8291
                             COMMISSION FILE NUMBER


         163  ACORN  LANE,
                 COLCHESTER, VERMONT                       05446
      (ADDRESS  OF  PRINCIPAL  EXECUTIVE  OFFICES)
(ZIP  CODE)





                                    (802) 864-5731
                         (REGISTRANT'S TELEPHONE NUMBER,
                              INCLUDING AREA CODE)













Item  5.  Other  Events-Announcement  of  Final  Rate  Case  Order
     Green  Mountain  Power  Corporation (NYSE: GMP) announced January 23, 2001,
that  the Vermont Public Service board has issued its final Order in the pending
rate  case.  The  Company's  press  release  follows:

COLCHESTER,  VT  -- Green Mountain Power Corporation (NYSE: GMP) announced today
the  Vermont  Public Service Board has approved an agreement between GMP and the
Department  of  Public Service to increase electric rates by 3.42 percent and to
make  permanent  two  earlier  temporary rate increases.  The Board's order also
allows  GMP  full  recovery  of  costs associated with GMP's long-term power and
energy  contract  with  Hydro-Quebec.

     "This  long-awaited  ruling  lifts  the  dark financial cloud that has been
hanging  over  GMP  since  March  1998.  Along with the aggressive steps we have
taken  internally  to  restructure  the  Company, this order will restore GMP to
financial  health,"  said  GMP  President  and  CEO  Christopher  L.  Dutton.

     Mr.  Dutton  said that GMP expects to earn its 11.25 percent rate of return
in  2001  and  2002, as allowed under the PSB decision, which should bring about
restoration  of  the  Company's  investment  grade  status.

     In  approving  the  settlement  the  PSB  said  today  in a press release :
"Overall,  the  Order  sets  GMP  on  the  path  to  financial health, providing
ratepayers  with  the strong prospect of a stable company capable of maintaining
and  improving  the  quality  of  service  to  its customers."  Chairman Michael
Dworkin,  speaking  for the Board, said, "The settlement agreement presents many
advantages  as well as costs, but the greatest benefit to ratepayers is a stable
company,  achieved  at  rates  comparable  to  those  throughout  New  England."

     Even  with  the 3.42 percent increase, GMP's electric rates are still below
the New England average, as has been the case for years.  The rate increase will
add  $2.59  a  month  to  the bill of a typical Green Mountain Power residential
customer  using  600 kilowatt-hours a month, making a total average monthly bill
of  $78.15.


      Under  the  settlement  forged by the Department of Public Service and GMP
and  approved  by  the  Board  today,  GMP has agreed not to seek a further rate
increase  to  become  effective  before January 2003, unless the Company's power
supply  costs  exceed a specified forecast amount, or other extraordinary events
occur.

     "This  is  a very important provision that provides for rate stability, but
also allows us the right to recover our costs should there be, for example, some
unanticipated  developments  in  New  England's somewhat volatile and developing
power  supply  markets.  GMP's  resource  mix, however, is relatively stable and
predictable  due  in  large part to a broad spectrum of alternative fueled power
supply,  including  the  Hydro Quebec contract, Vermont Yankee and several other
non-fossil-fuel-based  sources,"  Mr.  Dutton  said.

     GMP  entered  into  a long-term contract with Hydro-Quebec in December 1987
that  provides  electricity for 38 percent of GMP customers' needs. Since May 1,
1999  energy  prices  have  dramatically changed in New England.  Today, the 6.5
cents  per kilowatt-hour contract price for Hydro Quebec power is lower than the
daily market as well as current forward prices for electricity for the remainder
of  2001.

     The  settlement approved by the PSB includes an agreement by the Company to
write  off  in  calendar  year  2000  regulatory  assets  totaling $3.2 million.
Consequently,  GMP anticipates that it will report a loss in calendar year 2000,
reflecting  also  prior  power cost increases and continued write down of assets
associated  with  discontinued  operations.

     The  new  rate  order  authorizes GMP to end its 20-year long winter-summer
rate  differential.   Rate  levelization  will  result in additional billings of
approximately  $6 million during 2001 that can be used to offset increased costs
during  2001,  2002 and 2003.  The approved settlement also includes a provision
limiting  the  Company's  earnings  to the allowed return on equity.  Any unused
balance  of amounts in excess of the allowed return on equity at the end of 2003
will  be used to recover regulatory assets.  The new year-round rate levels will
begin  in  April  2001.

The  decision  commits  the  Company  to  certain levels of capital spending for
system  improvements.  Also,  for the first time for a Vermont electric utility,
customer and system reliability performance standards will be benchmarked to set
the  stage  for  eventually  moving  to  performance-based  regulation.

     In  approving  the  settlement,  the  PSB  imposed  two  conditions:
*     A  requirement that GMP and customers share equally any premium above book
value  realized  by the Company in any future merger, acquisition, or asset sale
(with  a  limit  of  $8  million  on  the  amount  provided  to  customers).
*     Restrictions  on  GMP's  investments  in  non-utility  operations.

     "Today's  PSB decision marks a turning point in GMP's two and one-half year
effort to convince our regulators and State policy makers that full Hydro-Quebec
costs  should  be  recovered  in  rates.  In approving the far-reaching and fair
settlement  we  negotiated with the Department of Public Service, we believe the
PSB  ruling  today  shows that Vermont has returned to more balanced regulation.

     "Our  long  financial  struggle  has had customer benefits.  It provided us
with the impetus to complete an internal restructuring of the Company, resulting
in  annual  savings  of  $4.8  million,  and  featuring the use of technology, a
reduction  in  staff  from  320  to  195,  and  our creating new ways to deliver
superior  service  to  our  84,000  customers.

     "We are now a stronger company than at any time in our recent past.  We are
now  better  able  to  serve our customers quickly, effectively and efficiently.

"We  look forward to future opportunities with new vigor and vitality," said Mr.
Dutton.

     For further information, please contact Dorothy Schnure, Manager, Corporate
Communications  for  Green  Mountain Power at 802-655-8418 or 802-482-2503 after
6:00  p.m.
ITEM  7.  FINANCIAL  STATEMENTS,  PRO  FORMA FINANCIAL INFORMATION AND EXHIBITS.
(a)  and  (b)  --not  applicable
(c)  Exhibits--not  applicable

     SIGNATURES


     Pursuant  to  the  requirements of the Securities Exchange Act of 1934, the
Registrant  has  duly  cased  this  report  to  be  signed  on its behalf by the
undersigned  thereunto  duly  authorized.

GREEN  MOUNTAIN  POWER  CORPORATION
- -----------------------------------
                                         Registrant

By  /s/Nancy  Rowden  Brock
    -----------------------
NANCY  ROWDEN  BROCK,  VICE  PRESIDENT,  CHIEF  FINANCIAL OFFICER, TREASURER AND
CORPORATE  SECRETARY

BY  /s/ROBERT  J.  GRIFFIN
    ----------------------
ROBERT  J.  GRIFFIN,  CONTROLLER

DATED:  January  23,  2001