CVPS Placed on Credit Watch

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There’s a new warning out about the finances of the state’s largest power company. State regulators recently ordered the Central Vermont Public Service Corporation to lower rates and make refunds to customers. CVPS says that decision led Standard and Poor’s credit service to place the company on a credit watch. The utility’s credit rating is currently one step above junk bond status. And Standard and Poor’s has not lowered that rating.

Meanwhile, CVPS President Bob Young said the company has enough cash reserves to maintain a sold financial foundation for the near term. Last week, the state Public Service Board ruled that CVPS had overcharged customers. But the amount of the refund and rate decrease was miscalculated. CVPS now says it must reduce rates by 2.75 percent in April, and refund about $6.3 million to customers.

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