We think this merger is a good idea. Here’s why.
GMP and CVPS coming together will establish one strong company, much more capable of handling all that is included in delivering electricity efficiently and affordably in the state of Vermont. To boot, the two companies coming together will result in a guaranteed savings of $144 million for customers over the next decade.
Where will that money come from? As the companies come together, distribution resources can be used more efficiently, equipment and facilities can be combined and anything in excess can be sold, overhead for regulatory expenses will be reduced, and the new, larger GMP will have more purchasing leverage with its vendors and services. One way that GMP will not save any money: layoffs. With the exception of certain executive officers and natural retirements and turnover, the work force of both companies will integrate as one.
In addition to savings through corporate harmony, GMP has also proposed a $21 million investment that would provide around $40 million in energy efficiency benefits for former CVPS customers.
For the community in the Rutland area, GMP is making it a point to maintain the special relationship that CVPS has spent the last eight decades building. To ensure that this commitment is honored with the emergence of the new GMP, the company will locate its Headquarters for Operations and Energy Innovation Center in Rutland or Rutland Town, and continue to build on the extensive efforts CVPS made to support the community.
To complement this commitment, GMP is planning the possibility of development a “Solar City” in the Rutland region, which would establish Rutland County as the leading solar generation center in Vermont. GMP is also investing $100,000 in the “Open for Business Fund” at the Rutland Downtown Partnership, and $100,000 in the “Green Growth Fund” at the Rutland Economic Development Corp.