Green Mountain Power 8-K 02-27-2006

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of The Securities Exchange Act Of 1934

February 27, 2006

Date of Report (Date of earliest event reported)

GREEN MOUNTAIN POWER CORPORATION

(Exact name of registrant as specified in its charter)

VERMONT

(State of other jurisdiction of incorporation)

1-8291	03-0127430
(Commission File Number)	(IRS Employer Identification Number)

163 ACORN LANE

COLCHESTER, VT 05446

(Address and zip code of principal executive offices)

(802) 864-5731

(Registrant’s telephone number, including area code)

N/A

(Former name of former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01

Other Events.

On February 27, 2006, Green Mountain Power Corporation (the “Company”) received an order from the Vermont Public Service Board (“VPSB”) granting the Company’s request for an Accounting Order permitting the Company to defer certain revenues and expenses as follows:

The Company is authorized to defer actual incremental power supply-related revenues incurred in the fourth quarter of 2005 in the amount of $1,245,444, incurred as a result of wholesale sales of electricity at unusually high prices resulting in part from 2005 hurricanes.

The Company is authorized to defer and shall defer actual incremental power supply related costs incurred in 2006 up to a total of $3,716,634, which will be reduced by the revenues deferred and amortized pursuant to paragraph 1 above, incurred as a result of hurricane-related wholesale electricity price increases of power purchased to replace power recalled by Hydro Quebec under Green Mountain Power’s 9701 agreement with Hydro Quebec.

The Vermont Public Service Board Accounting Order is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Item 9.01

Financial Statements and Exhibits.

Exhibit	Description
99.1	Vermont Public Service Board Order dated February 23, 2006, granting request for accounting order.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	GREEN MOUNTAIN POWER CORPORATION
	(Registrant)

	By: /s/ Robert J. Griffin		March 1, 2006
	Robert J. Griffin		Date
	Vice President, Chief Financial Officer, Treasurer and Principal Accounting Officer

EXHIBIT INDEX

Exhibit	Description
99.1	Vermont Public Service Board Order dated February 23, 2006, granting request for accounting order.

112 State Street

Drawer 20

Montpelier, VT 05620-2701

Tel.: (802) 828-2358

TTY/TDD (VT): 1-800-734-8390

Fax: (802) 828-3351

E-Mail: clerk@psb.state.vt.us

Internet: http://www.state.vt.us/psb

Mr. Robert J. Griffin, Treasurer and Controller

Green Mountain Power Corporation

Colchester, Vermont 05446

Re:

Request for Accounting Order - Deferral of incremental power supply costs resulting from 2005 Hurricanes

The Vermont Public Service Board ("Board") has reviewed your submission of January 26, 2006, requesting that the Board issue an Accounting Order permitting Green Mountain Power Corporation (hereinafter "Green Mountain Power" or the "Company") to book in Account 253.0 Other Deferred Credits certain extraordinary revenues incurred in the fourth quarter of 2005 as a result of high incremental wholesale electricity prices and to book in Account 186.0 Miscellaneous Deferred Debits (as defined in the FERC Uniform System of Accounts) certain extraordinary hurricane-related power costs to be incurred in 2006 to replace power recalled by Hydro Quebec pursuant to Green Mountain Power's "9701" agreement. The total net amount of these incremental power supply-related costs is currently estimated to be $2,371,190, but only the actual costs up to this amount would be subject to the Accounting Order.

On February 16, 2006, the Vermont Department of Public Service ("Department") recommended approval of the requested cost deferral and the respective amortization periods.

Upon consideration of this matter, the Board, pursuant to its accounting authority provided in 30 V.S.A § 221 over the books and accounts of utilities subject to its jurisdiction, ORDERS that:

1. The Company is authorized to defer actual incremental power supply-related revenues incurred in the fourth quarter of 2005 in the amount of $ 1,345,444, incurred as a result of wholesale sales of electricity at unusually high prices resulting in part from 2005 hurricanes. Such amounts shall be recorded in Account 253.0 Other Deferred Credits and amortized in full in

the first quarter of 2006 to reduce amounts recorded in Account 186.0 Miscellaneous Deferred Debits (as defined in the FERC Uniform System of Accounts).

2. The Company is authorized to defer and shall defer actual incremental power supply related costs incurred in 2006 up to a total of $3,716,634, which will be reduced by the revenues deferred and amortized pursuant to paragraph 1 above, incurred as a result of hurricane-related wholesale electricity price increases of power purchased to replace power recalled by Hydro Quebec under Green Mountain Power's 9701 agreement with Hydro Quebec. Such amounts shall be recorded in Account 186.0 Miscellaneous Deferred Debits (as defined in the FERC Uniform System of Accounts) and amortized to expense over the same period beginning at the same date as the amortization of such costs to cost of service upon which rates from a future Company retail rate proceeding are based.

3. The Company shall accrue carrying charges on the deferred balance from the time those costs are incurred.

4. This Order is limited to the accounting treatment for the subject costs and does not bar any party from contesting or the Board from determining or disallowing the reasonableness or prudence of such costs, in whole or in part, in any rate proceeding in which the subject costs are included in cost of service.

5. Nothing in this Accounting Order shall have any precedential effect.

6. Nothing in the Accounting Order shall preclude the Board from determining the recovery mechanism used to recover the remaining balance of subject costs should retail competition or other regulatory reforms be implemented in Vermont.

	VERMONT PUBLIC SERVICE BOARD

	s/ James Volz	)
		)
		)
	s/ David C. Coen	)
		)
		)
	s/ John D. Burke	)

A True Copy:
/s/ Susan M. Hudson, Clerk of the Board
cc:	David O'Brien, Commissioner, VDPS
	Sarah Hofmann, Esq., VDPS