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):
                                 AUGUST 15, 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-On August 15, 2001, Entergy Corporation and Vermont Yankee
Nuclear  Power Corporation ("Vermont Yankee") announced an agreement to sell its
nuclear  power  plant  to  Entergy  Corporation  for approximately $180 million.
Green Mountain Power Corporation owns approximately 17.9% of the common stock of
Vermont  Yankee.
     The  following  press release issued by Entergy and Vermont Yankee today is
provided  for  more  information:

NEW  ORLEANS  -  Entergy  Corporation (NYSE: ETR) and the Vermont Yankee Nuclear
Power  Corporation  have reached an agreement to sell the Vermont Yankee nuclear
power  plant  in  Vernon,  VT,  to  Entergy  for  $180  million.
     Vermont Yankee will become Entergy's 10th nuclear unit and its fifth in the
Northeast.  Entergy  Nuclear  has  operated  five  nuclear  units  in  Arkansas,
Mississippi and Louisiana for more than 20 years and began buying its properties
in  the  Northeast  in  1999.
The  $180  million  in  cash  represents  $145 million for the plant and related
assets,  and  $35  million  for  nuclear  fuel.
"We expect to realize significant operating efficiencies since Vermont Yankee is
a  sister  plant  to  our  Pilgrim plant in Plymouth, Mass., and our FitzPatrick
plant  in  Oswego  County, N.Y.," said Wayne Leonard, Chief Executive Officer of
Entergy.  All three are boiling water reactors designed by General Electric and,
as  a  result,  many  resources such as inventories and spare parts, best safety
practices,  group  purchasing,  specialized  technical  skills,  manpower,  key
management  and  financing  can  be  shared.
Ross  Barkhurst,  President and Chief Executive Officer of Vermont Yankee, said,
"We  are  pleased  to  be  selling  this outstanding nuclear plant to a national
leader  in  nuclear  plant  operations  with  a  strong  track  record  of  safe
operations.  We  are  very  pleased that the auction process run by JPMorgan has
been  so successful.  We were able to execute the auction on a timely basis with
a process which garnered significant interest and clearly maximized the value of
the  plant."
In  addition  to  $180 million, Entergy will retain the plant's 450 employees at
their  same  salary  and comparable benefits.  Entergy will also receive nuclear
fuel  and  all  materials  and  spare  parts  inventory  as  well  as the plant,
switchyard  and  related  real  estate in nearby Brattleboro.  Entergy will also
assume  decommissioning  liability for the plant and the plant's decommissioning
trust  fund,  which  is  required by the U.S. Nuclear Regulatory Commission.  No
decommissioning  top-off  or any other financing by Vermont Yankee Nuclear Power
Corporation  is  anticipated  with  the  transaction.
The  deal  calls for Entergy to provide the current output level of the plant to
Vermont  Yankee's  present  sponsors at average annual prices ranging from $39 -
$45  per megawatt-hour through 2012, when the present operating license expires.
The  agreement  includes  a  "low  market adjuster" that protects Vermont Yankee
owner-utilities  and  their  power  consumers  in  case power market prices drop
significantly.  If  a  prior  year's  average market price of power is more than
five  percent  below  the  annual  agreement  price  for  the  current year, the
agreement  price would drop to 105 percent of the previous year's average market
price.
     The  Vermont  Yankee  Nuclear  Power Corporation is owned by 12 New England
utilities.  The  largest  shareholder is Central Vermont Public Service Corp. in
Rutland,  VT,  31.3  percent,  and  the  others  are New England Power Co., 22.5
percent;Green  Mountain  Power  Corp., 17.9 percent; Connecticut Light and Power
Co.,  9.5  percent;  Central  Maine  Power Co. and Public Service Company of New
Hampshire,  4  percent  each;  Burlington  Electric  Department,  3.6  percent;
Cambridge  Electric  Light  and  Western Massachusetts Electric Co., 2.5 percent
each;  Vermont  Electric  Cooperative,  Inc., 1 percent, and Washington Electric
Cooperative  Inc.  and  Village  of Lyndonville Electric Department, 0.6 percent
each.
     Entergy  Nuclear  Chief  Executive  Officer  Jerry Yelverton said the power
purchase  agreement benefits Entergy as well as New England.  "New England power
consumers  will  have  a  reliable  source  of  electricity  with built-in price
stability.  That  reduces our risk and allows us to focus our time and attention
on  increasing  the plant's capacity factor, achieving cost synergies with other
plants,  and  maintaining  the  highest  level  of  safe  operations."
The  sale is subject to the approval of the Public Service Board of Vermont, the
U.S. Nuclear Regulatory Commission, the Federal Energy Regulatory Commission and
other  regulatory authorities.  After their approvals, a closing is targeted for
the  spring  of  2002.
Vermont  Yankee  is  the  largest power generator in Vermont, producing about 30
percent  of  the  power used by Vermont consumers. With a 510-megawatt capacity,
the  unit can produce enough power to supply about 500,000 homes.  The plant has
been  an  excellent performer with an average capacity factor of 89 percent over
the past 10 years, the second highest of all boiling water power reactors in the
nation.
"The  men and women of Vermont Yankee have worked hard fulfilling our commitment
to  a  high standard of operations," said Barkhurst, Vermont Yankee's president.
"Entergy's  purchase  is  a  clear  indication that our hard work is valued by a
nuclear  industry leader.  Our employees' culture of excellence will be welcomed
by  Entergy's  successful  national  operation."
Yelverton,  Entergy  Nuclear's  CEO,  said  Entergy  will  be  committed to high
environmental  standards and close, supportive relations with local communities,
as  the  current  Vermont  Yankee  owners  have  been.
Vermont  Yankee  Chairman  Robert  Young  said,  "This  agreement  preserves the
economic  benefits that Vermont Yankee provides the state and the region and the
price  stability  inherent  in  the  purchase  power agreement helps protect New
England's  electric  consumers from the volatility of the electricity market. We
look  forward  to  bringing  this agreement before our regulators for a thorough
review  in  the  coming  months."
The  plant  and  related  assets  will be transferred to Entergy Nuclear Vermont
Yankee  LLC,  an Entergy subsidiary, and will become part of the Entergy Nuclear
Northeast  fleet.  In  addition  to  the three boiling water reactors mentioned,
Entergy  also  owns and operates the Indian Point 3 unit, purchased from the New
York  Power  Authority  last November, and is preparing to close the purchase of
the  Indian  Point  2  plant  from  Con Edison this fall.  Both are Westinghouse
pressurized  water  reactors  and  located on the same site in north Westchester
County,  N.Y.
     The nuclear businesses of Entergy Corporation are headquartered in Jackson,
Miss.  As  a  global energy company, Entergy, based in New Orleans, is the third
largest  power  generator  in  the  nation  with  more  than 30,000 megawatts of
generating  capacity,  about  $9  billion in annual revenue and over 2.6 million
customers  in  Arkansas,  Mississippi,  Louisiana  and  Texas.
Entergy  Nuclear  South  operates five nuclear units from its regional office in
Jackson,  Miss.  Its  newly  acquired units are managed from its Entergy Nuclear
Northeast  regional  office  in White Plains, N.Y.  Entergy Nuclear also manages
decommissioning activities and furnishes license renewal engineering services to
the  U.S.  nuclear  power  industry.
JPMorgan acted as exclusive financial advisor to Vermont Yankee on the sale, and
has  been  advisor  on  the  sale of 11 of the last 13 nuclear units sold in the
U.S.,  including  Millstone,  Nine  Mile  Point,  Indian  Point  3  and James A.
Fitzpatrick.

              Entergy's on-line address is www.entergy-nuclear.com
                                           -----------------------
            Vermont Yankee's on-line address is www.vermontyankee.com



The following constitutes a "Safe Harbor" statement under the Private Securities
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Litigation  Reform  Act  of  1995:  Investors are cautioned that forward-looking
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statements contained herein with respect to the revenues, earnings, performance,
- ---
strategies,  prospects and other aspects of the business of Green Mountain Power
Corporation  and  affiliated  companies  may involve risks and uncertainties.  A
number  of  factors  could cause actual results or outcomes to differ materially
from those indicated by such forward-looking statements.  These factors include,
but  are  not  limited  to, risks and uncertainties relating to:  the effects of
weather,  the  performance  of  generating  units  and transmission systems, the
possession  of  nuclear  materials,  fuel  and  purchased  power  prices  and
availability,  the  effects  of  regulatory  decisions  and  changes  in  law,
litigation,  capital  spending requirements, the onset of competition, including
the ability to recover net regulatory assets and other potential stranded costs,
the  effects  of recent developments in the California electricity market on the
utility  industry  nationally,  advances  in  technology,  changes in accounting
standards, corporate restructuring and changes in capital structure, the success
of  new  business  ventures,  changes  in  the markets for electricity and other
energy-related  commodities,  changes  in  interest  rates  and in financial and
foreign  currency  markets  generally,  the economic climate and growth in Green
Mountain Power's service territories, changes in corporate strategies, and other
factors.

     For further information, please contact Dorothy Schnure, Manager, Corporate
Communications  for  Green  Mountain  Power  at  802-655-8418.

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
DATED:  August  15,  2001
By  /s/STEPHEN  C.  TERRY
    ---------------------
STEPHEN  C.  TERRY,  SENIOR  VICE  PRESIDENT,  CORPORATE  AND  LEGAL  AFFAIRS

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