Vermont Regulators Approve Acquisition of Green Mountain Power by Northern New England Energy Corporation, a Subsidiary of Gaz M

  
    
  
  
    
      The Vermont Public Service Board (PSB) Monday issued its approval of 
      Green Mountain Power Corporation’s (NYSE: 
      GMP) proposed agreement and plan of merger with Northern New England 
      Energy Corporation (NNEEC) and its wholly-owned subsidiary Northstars 
      Merger Subsidiary Corporation. The decision is the final regulatory 
      approval necessary for the transaction, which is expected to close in 
      the second quarter of 2007.
    
    
      “We are delighted at the prospect of 
      welcoming Green Mountain Power into our group of energy companies, which 
      includes Vermont Gas Systems, and we look forward to completing the 
      acquisition,” said Sophie Brochu, president 
      and chief executive officer of Gaz Métro, 
      parent company of NNEEC. “Green Mountain 
      Power has proven itself to be well-managed, financially strong, 
      committed to environmental responsibility and energy efficiency, and has 
      a collaborative relationship with regulators and a dedication to 
      transparency in its operations. These characteristics are consistent 
      with the values of Gaz Métro, and so we 
      believe that the transaction will be a good fit and beneficial for both 
      companies and customers,” she said.
    
    
      In its unanimous approval order, the PSB said it concluded the 
      transaction “will promote the general good of 
      the State.” It also stated that “NNEEC 
      also has a proven record of technical, financial and managerial 
      competency through its twenty-year ownership of Vermont Gas Systems, 
      Inc. NNEEC and its parent, Gaz Métro, have a 
      well-documented and an established track record for operating regulated 
      and unregulated businesses in Vermont.”
    
    
      Chris Dutton, president and chief executive officer of Green Mountain 
      Power, said, “We expect that this transaction 
      will have many significant benefits to our customers and the entire 
      state of Vermont. Most importantly, Green Mountain Power will be in a 
      better financial position when we negotiate new power contracts. In 
      addition, we have created the Green Mountain Power Efficiency Fund to 
      provide more than $9 million in benefits for Green Mountain Power 
      customers by investing in demand side management and other innovative 
      efficiency programs.”
    
    
      On June 22, 2006, Green Mountain Power Corporation and Northern New 
      England Energy Corporation announced their merger agreement under which 
      Green Mountain Power will become a wholly-owned subsidiary of NNEEC in a 
      cash transaction valued at approximately $187 million. Green Mountain 
      Power shareholders overwhelmingly voted in favor of the transaction at a 
      special meeting on October 31, 2006.
    
    
      After the completion of the transaction, Green Mountain Power will 
      continue to be managed by its current leadership team and the Company 
      will operate out of its existing offices in Vermont. Employees will be 
      retained and the current labor contract with IBEW Local 300 will remain 
      in place. The Company will operate under the jurisdiction of state and 
      federal regulators, as it has for more than one hundred years.
    
    
      NNEEC is a Vermont corporation and a wholly-owned subsidiary of Gaz Métro 
      Limited Partnership (TSX-GZM.UN), a leading Québec 
      energy company with a long history of investment in Vermont.
    
    
      Gaz Métro is a major distributor of natural 
      gas in Québec and the northeastern United 
      States. With more than $2.7 billion of assets and more than 1,500 
      employees in Québec, Gaz Métro 
      serves about 164,000 customers through an underground pipeline network 
      of almost 10,000 km.
    
    
      Gaz Métro is also the parent company of 
      Vermont Gas Systems, which has 115 
      Vermont-based employees and serves about 40,000 customers. Gaz Métro 
      also has an indirect significant ownership interest in a natural gas 
      transportation company, Portland Natural Gas Transmission System 
      (PNGTS), and owns important interest in a natural gas transportation 
      enterprise (Trans Québec & Maritimes) and in 
      an enterprise specializing in underground natural gas storage facilities 
      (Intragaz). In addition, the company operates businesses providing 
      district heating and urban water rehabilitation services in Québec.
    
    
      Green Mountain Power is an electric utility operating company that 
      transmits, distributes and sells electricity and utility construction 
      services in the State of Vermont in a service territory with 
      approximately one quarter of Vermont’s 
      population. It serves approximately 90,000 customers.
    
    
      Forward-looking Statements
    
    
      This news release contains forward looking statements about Green 
      Mountain Power. Statements that are not historical or current facts, 
      including statements about beliefs and expectations are forward looking 
      statements. These statements often include the words “may,” 
      “could,” “would,” 
      “should,” “believes,” 
      “expects,” “anticipates,” 
      “estimates,” “intends,” 
      “plans,” “targets,” 
      “potentially,” “probably,” 
      “projects,” “outlook,” 
      or similar expressions. These forward-looking statements cover, among 
      other things, anticipated future plans and prospects of Green Mountain 
      Power. Forward-looking statements speak only as of the date they are 
      made, and Green Mountain Power undertakes no obligation to update them 
      in light of new information or future events.
    
    
      Forward-looking statements involve inherent risks and uncertainties, and 
      many factors could cause actual results to differ materially from those 
      anticipated, including those described in the Annual Report on Form 10-K 
      for the year ended December 31, 2006, of Green Mountain Power, which you 
      should read carefully, as well as the company’s 
      other filings with the Securities and Exchange Commission (the “SEC”). 
      The following factors, among others, could cause actual results to 
      differ materially from the anticipated results or other expectations 
      expressed in the forward-looking statement: the businesses of Green 
      Mountain Power and NNEEC’s subsidiary 
      Northstars Merger Subsidiary Corporation may not be combined 
      successfully, or such combination may take longer, be more difficult, 
      time-consuming or costly to accomplish than expected.