CVPS Announces Public Stock Offering

Central Vermont Public Service Corporation (NYSE: CV) today announced a public offering of 1,125,000 newly issued shares of its common stock. Central Vermont expects to grant the underwriters of the offering a 30-day option to purchase up to 112,500 additional shares of Central Vermont common stock solely to cover over-allotments, if any. Central Vermont intends to use the net proceeds of the offering for general corporate purposes, including the repayment of debt, capital expenditures, investments in Vermont Transco LLC and working capital requirements.

Morgan Stanley & Co. Incorporated is acting as sole bookrunner, and KeyBanc Capital Markets Inc. is acting as co-manager for this offering. You may obtain a copy of the preliminary prospectus supplement and final prospectus supplement, when available, from Morgan Stanley & Co. Incorporated, 180 Varick Street 2/F, New York, NY 10014, prospectus@morganstanley.com, or toll-free at 1-866-718-1649.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of, these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The offering may be made only by means of a prospectus and related prospectus supplement.