GMP Announces Second Quarter Earnings

Green Mountain Power Corporation (NYSE: GMP) today
announced consolidated earnings of $0.38 per share of common stock,
diluted, for the second quarter of 2006, compared with $0.45 per
share, diluted, for the same period in 2005. Earnings for the first
six months of 2006 are $1.06 per share, diluted, compared with $1.02
per share, diluted, for the same period in 2005.
   "We are pleased with the operating results for the second quarter.
Our retail and other operating revenue for the second quarter of 2006
increased by $0.8 million (1.6%) compared to the same quarter of 2005
and revenues from sales of our excess power to the wholesale market
while prices were high increased $3.7 million (91.7%) compared to the
same quarter in 2005," said Christopher L. Dutton, President and Chief
Executive Officer. "We expect diluted earnings per share for the year
to range between $1.85 to $2.15."
   In the second quarter of 2006, total operating revenues increase
by $4.5 million while power supply expenses increased by $2.3 million,
compared with the same period last year. The increase in operating
revenues resulted from the sale of excess electricity at prices above
our underlying power purchase or generation costs. The Company's power
supply resources exceeded customer demand during the second quarter of
2006 due to increased purchases of energy under a long-term contract
for output from the Vermont Yankee nuclear power plant and the
Company's election to exercise contract rights to increase deliveries
at below market prices from one of its suppliers during 2006. We also
benefited in 2006 from added precipitation-based production by Company
hydro power plants (which produced low-cost electricity) that replaced
higher priced market purchases made during the second quarter of 2005.
   Wholesale revenue increased because the Company was able to sell
approximately 57,000 megawatt hours of excess power supply in the
wholesale energy market. The Company sold some of its expected energy
deliveries for April and May 2006 late last year when prices were very
high, which added an estimated $0.11 to earnings in the second quarter
of 2006. Retail electricity consumption decreased by 0.5 percent in
2006 but the effect on retail revenue was offset by a rate increase of
0.9 percent that took effect in January, 2006.
   Other operating expenses increased $2.6 million in the second
quarter of 2006, compared with the same quarter in 2005, reflecting
expenses relating to the proposed acquisition of the Company by an
affiliate of Gaz Metro Incorporated, increased expenses associated
with the sale of utility services to commercial and municipal
customers and increased expenses for employee benefits.
   "We are pleased with our present outlook. Following the
announcement of our pending merger, on June 22, 2006, S&P placed its
'BBB' long-term credit rating of the Company on CreditWatch with
positive implications," said Mr. Dutton.
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Green Mountain Power Corporation       Quarterly Earnings Summary
                                    Three Months        Six months
                                       Ended              ended
                                      June 30            June 30
                                   2006     2005      2006      2005
                                 -------------------------------------
                                 in thousands except per share amounts
Retail revenues                  $51,677  $50,870  $105,627  $105,291
Wholesale revenues                 7,703    4,018    14,729     7,846
                                 -------------------------------------
Total operating revenues         $59,380  $54,888  $120,356  $113,137
                                 -------------------------------------
Net income                       $ 2,026  $ 2,381  $  5,638  $  5,361
Net income-continuing operations   2,026    2,384     5,561     5,367
Net income(loss)-discontinued
 operations                            -       (3)       77        (6)

Basic earnings per share-
 continuing operations           $  0.39  $  0.46  $   1.06  $   1.04
Basic earnings per share-
 discontinued operations               -        -      0.01         -
                                 -------------------------------------
Basic earnings per Common share  $  0.39  $  0.46  $   1.07  $   1.04
                                 =====================================
Diluted earnings per share-
 continuing operations           $  0.38  $  0.45  $   1.05  $   1.02
Diluted earnings per share-
 discontinued operations               -        -      0.01         -
                                 -------------------------------------
Fully diluted earnings per
 common share                    $  0.38  $  0.45  $   1.06  $   1.02
                                 =====================================
Dividends declared per share     $  0.28  $  0.25  $   0.56  $   0.50
Weighted average shares of
 common stock outstanding-Basic    5,260    5,186     5,251     5,173
Weighted average shares of
 common stock outstanding-
 Diluted                           5,321    5,271     5,330     5,261
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   Certain statements in this press release may be forward-looking in
nature, or "forward-looking" statements as defined in the United
States Securities Litigation Reform Act of 1995. Actual results may
differ from those expressed or implied in forward-looking statements.
The forward-looking statements contained in this press release are
subject to a number of factors and uncertainties, including regulatory
and judicial decisions or legislation, changes in regional market and
transmission rules, energy supply and demand and pricing, contractual
commitments, availability, terms and use of capital, general economic
and business environment, changes in technology, nuclear and
environmental issues, industry restructuring and cost recovery
(including stranded costs, and weather), and other factors and
uncertainties disclosed from time to time in our filings with the
Securities and Exchange Commission. Any forward-looking statements in
this press release should be evaluated in light of these important
factors and uncertainties. The Company disclaims any obligation to
update any information in this press release.