March  5,  2001

Moody's  Upgrades  Green  Mountain  Power
to  Investment  Grade

COLCHESTER,  VT  Green  Mountain  Power Corporation (NYSE: GMP) announced today
that  Moody's  Investors  Service  has  returned GMP to investment grade status.

Nancy  Rowden  Brock,  GMP's  Vice  President  and Chief Financial Officer, said
Monday,  "This is a very positive development for our company, its customers and
shareholders. The outlook for stable ratings makes it clear that the January 23,
2001  Vermont Public Service Board approval of the 3.42 percent rate increase is
the  major  factor  for  this  upgrade."

The  text  of  the Moody's Investors Service press release detailing the reasons
for  the  upgrade  follows:

New  York,  March  05, 2001 -- Moody's Investors Service upgraded Green Mountain
Power Corporation's senior secured debt rating to Baa2 from Ba1 and upgraded the
company's  preferred  stock  rating  to  "baa3"  from "ba3". The outlook for the
ratings  is now stable. The rating action reflects Moody's expectations for more
stable  and  predictable  earnings  and cash flow following the January 23, 2001
approval by the Vermont Public Service Board of an agreement between GMP and the
Vermont  Department  of  Public Service (VDPS). On balance, the state regulatory
decision indicates a more supportive stance than has been the case over the past
three  years.  From  Moody's  perspective,  the  regulatory  decision  favorably
resolves  the  earlier  credit  concerns  surrounding  GMP  due to the company's
contract  to  purchase  power  from  Hydro  Quebec (HQ). This action concludes a
review of GMP's credit ratings for possible upgrade, which was announced January
29,  2001.
Under the terms of the agreement, GMP was granted a 3.42% base rate increase and
the  previously  approved  8.5%  temporary  rate  increases  became  permanent.
Importantly,  GMP  will  not  be  subject  to  further prudence penalties and is
assured of full recovery of its costs relating to its long-term power and energy
contract  with  HQ.  Consistent with its earlier compromise offered up under the
agreement,  GMP will write off $3.2 million of regulatory assets when it reports
its  year  end  results  for  2000. Furthermore, GMP has agreed not to raise its
rates  again  before  January 2003, except under certain extreme conditions, and
will  be  bound by a return on equity cap of 11.25%. Any earnings deferred under
the  ROE  cap  will  be  used  to  recover regulatory assets at the end of 2003.
According  to some of the other key features of the agreement, GMP will spend up
to  certain  levels  for  system  improvements  and  be  subject  to reliability
performance  standards  in  anticipation  of performance-based regulation in the
future;  the  company  will  also  keep within prescribed guidelines when making
investments  in  non-utility  operations;  and  it  will  share equally with its
customers  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).
In  addition  to the rate increases approved under the settlement agreement, GMP
has  arranged  for  an  extension  of  its  power supply arrangement with Morgan
Stanley,  which now is in effect through 2003. The extension and enhancements to
the  earlier  arrangement  in  effect  during 2000 should enable GMP to meet the
power  supply  demands of its customers in a reliable and cost efficient manner.
Indeed,  Moody's  believes  that  GMP  is  now  well  positioned  to provide its
customers  with electric service at more stable and predictable rates than would
have  been  the  case  previously.  At  the  same  time,  we  expect healthy and
sustainable  improvement  in key credit indices, including cash flow coverage of
interest  and  debt  to  capitalization  ratios,  which should help solidify the
company's  relationships  with its banks. Finally, Moody's also notes that there
are  still  good  prospects  for  GMP  to reduce its exposure to nuclear-related
financial  and operating risks in light of the company's continued evaluation of
an  auction of the Vermont Yankee plant. The consideration of an auction follows
the  VPSB's  recent  rejection  of  an  earlier  bilateral agreement to sell the
Vermont  Yankee  plant  to  AmerGen.
Green  Mountain  Power  Corporation  is an investor-owned electric utility whose
headquarters  are  in  Colchester,  Vermont

For  further  information, please contact Nancy Rowden Brock, Vice President and
Chief  Financial  Officer  of  Green  Mountain  Power, (802) 655-8451 or Dorothy
Schnure,  Manager  of  Corporate  Communications,  at  802-655-8418.