Published 06/02/2009  
Johnson, VT –Vermont Electric Cooperative, Inc. (VEC) announced that Standard & Poor’s (S&P’s) Rating Services has upgraded the long-term financial rating of VEC from BBB- to BBB. Additionally, S&P has upgraded VEC’s outlook from stable to positive.

“This upgrade will benefit VEC and its member-owners in a number of tangible ways,” said Michael Bursell, Chief Financial Officer. “Most significantly, it will allow us to obtain more favorable credit terms in our power supply contracts. Power supply will be a major focus for VEC, as we begin to replace our Hydro-Quebec commitments which will expire beginning in 2012.” 

In addition, the upgraded rating will give VEC access to favorable financing  arrangements and provide negotiation leverage with other trade suppliers. 

In a credit profile released on June 1, 2009, S&P noted that the rating upgrade reflects stronger financial metrics attributable to a rate structure that has been developed over the past five years.  “VEC began working on improving our financial position in the 2005 rate case, in which VEC and the Vermont Department of Public Service agreed on a new path for the Cooperative,” said David Hallquist, Chief Executive Officer. “We expect to build on these improvements as we face a challenging energy future.” 

Another factor contributing to VEC’s improved financial health is management’s ability to reduce peak load requirements by optimizing the use of smart meters. VEC has taken the lead in Vermont in smart meter installation. More than 80% of the VEC system utilizes smart meters. Smart meters can enable consumers and utilities to manage consumption more efficiently. 

“VEC cannot overstate the significance of this milestone,” commented Bursell. “It represents the culmination of careful financial planning by VEC over the past several years, as well as support from the Department of Public Service and the Public Service Board to put a rate structure in place that has substantially improved VEC’s financial health.”