Green Mountain Power Launches New Program for Customers to Combat Global Warming With Renewable Energy Projects

Partnership With Clean Air-Cool Planet Will Help Build New Local and National Projects to Reduce Carbon Dioxide Emissions

COLCHESTER, VT. (Jan. 13, 2003) - Green Mountain Power (NYSE: GMP) today announced its introduction of a new monthly renewable energy service, CoolHome^SM, that will enable its customers to take action in the fight against global warming. Voluntary charitable donations will help to build Vermont methane generators and other renewable energy projects, which will reduce the greenhouse gas emissions that contribute to global warming.

"We've made it very simple for customers to do something that works every day to fight global warming," said Stephen C. Terry, Green Mountain Power's Senior Vice President of Corporate and Legal Affairs. "Now our customers who are concerned about global warming can choose to include a contribution to the non-profit Clean Air-Cool Planet on their Green Mountain Power bill each month. Our electricity supply is already unusually low in emissions. Now our customers can choose to lessen the impact of their total energy use," he says.

CoolHome^SM was first introduced to Green Mountain Power customers as a one-time-payment pilot program in May 2002. Customers reacted positively to the program and the change to monthly payments makes it easier to participate.

Green Mountain Power's new CoolHome^SM program allows customers to support fledgling renewable energy projects through $6 monthly tax-deductible donations to Clean Air-Cool Planet (CA-CP), a nonprofit organization bringing climate change solutions to the Northeast. CA-CP in turn uses the donations to support development of new renewable energy projects through Vermont-based NativeEnergy.

Each household participating for one year reduces carbon dioxide emissions by six tons - the annual fossil fuel and electricity-related emissions of the average Vermont household. CA-CP makes this happen by purchasing and retiring "renewable energy credits" from NativeEnergy, allowing participating households to enjoy a year of "climate-neutral" living.

"We're excited to work with Green Mountain Power in this initiative," said Adam Markham, Clean Air-Cool Planet's Executive Director. "It's a great way to increase awareness about global warming and demonstrate the importance of individual action. People often feel like there's nothing they can do, so a program like this that gives people a simple way to have real impact helps overcome that inertia, and often prompts action in other areas."

To show their support for the program, Green Mountain Power, the Department of Public Service and the Public Service Board have all offset a year's emissions from their offices' total energy use. The Department played a leadership role in calculating the annual carbon dioxide emissions for the entire office building the Department and the Board share with AARP and Chittenden Bank. Their collective participation resulted in Montpelier's first "climate-neutral" large office building.

"I'm delighted to see Green Mountain Power offering this fine choice to its customers," noted Michael Dworkin, Chairman of the Vermont Public Service Board. "This kind of market-based initiative will give thousands of Vermonters a chance to make a contribution towards a better world for all of us. At the same time, it shows how a small utility can be a leader in an emerging field. I look forward to this innovation becoming a model, as others offer similar choices to their customers."

The Green Mountain Power program passes 100% of the donated funds to Clean Air-Cool Planet, which supports the development of new renewable energy projects utilizing the services of Vermont-based NativeEnergy. The financial support is provided through Clean Air-Cool Planet's up-front purchase of long-term streams of the projects' renewable energy credits, which Clean Air-Cool Planet will then retire to assure permanent environmental benefit and fulfill its mission to reduce global warming.

Green Mountain Power CoolHome^SM Fact Sheet

The Problem: Many concerned Vermonters recognize the potential problems associated with global warming and want to do their part to reduce the impact their energy use has on the environment. The new Green Mountain Power program offers a solution for Vermont energy users.

CoolHome^SM: a unique new renewable energy service offered by Green Mountain Power that enables its customers to take action in the fight against global warming. Announcement of the service is included with customers' monthly statement; customers sign up in one of three ways:
Return the authorization form with bill payment
Visit Green Mountain Power online at www.greenmountainpower.biz
Call 1-888-TEL-GMPC (1-888-835-4672).

How it works: CoolHome^SM participants make monthly, tax-deductible contributions to GMP. The Green Mountain Power program passes 100% of the donated funds to Clean Air-Cool Planet (CA-CP). CA-CP, through the services of Vermont-based NativeEnergy, uses contributions to provide financial support to fledgling renewable energy projects, which will reduce greenhouse gas emissions that contribute to global warming, such as carbon dioxide (CO2).
More renewable energy sources contributing power to the grid means less fossil fuel-generated power needed to meet energy demand, reducing emissions of CO2 and various pollutants.
Environmental benefits created by these new renewable projects are attributed to CoolHome^SM participants through the purchase and retirement of "renewable energy credits" on the participants' behalf. For each participant, one-half of the six tons of CO2 reductions will be generated by Vermont projects.

CoolHome^SM differs from traditional "green energy" programs: Under traditional green pricing programs customers pay a premium - to the utility. The utility purchases renewable energy or renewable energy credits for them, or "allocates" energy to them from the renewable resources in its portfolio. With CoolHome^SM, the customers accomplish the same environmental result through tax-deductible charitable contributions that fund the purchase and retirement of renewable energy credits by a non-profit dedicated to reducing global warming.
Traditional green energy programs are about mitigating the environmental impacts of electricity use. The CoolHome^SM program goes further, mitigating the global warming impact of home heating as well. On behalf of each participating household, CA-CP will purchase and retire enough renewable energy credits, including the CO2 reductions they represent, to "neutralize" the global warming impact of powering and heating the average Vermont home for a year.

Renewable energy projects

Essex Junction Wastewater Treatment Facility, Essex Junction, VT - this project will capture the methane gas created at the facility and will use the renewable fuel to power two 30 kW electricity-generating turbines. The electricity from these turbines will reduce the facility's consumption of electricity from the grid and reduce CO2 emissions by approximately 3,450 tons over 15 years.

Farm Methane Projects throughout Vermont are expected to be added to the current roster.
Rosebud Sioux Wind Turbine Project, Rosebud Sioux Reservation, SD - the first Native American-owned and operated utility scale wind turbine in the Great Plains, "the Saudi Arabia of Wind." The turbine will displace electricity currently generated mostly by burning coal, upwind of Vermont, which also contributes to acid rain. The turbine is the Rosebud Sioux Tribe's first step in developing a sustainable economy based on the wind.

About NativeEnergy
NativeEnergy is located in Shelburne, VT, and offers individuals and businesses simple, effective, and verifiable ways to fight global warming and climate change. NativeEnergy's patent-pending business process offers a convenient alternative to buying green electricity and is dedicated exclusively to driving the construction of new wind farms and other renewables to create new environmental benefits. NativeEnergy's regional business customers include Ben & Jerry's Homemade, Gravel & Shea, Northshire Bookstore, Stonyfield Farm, the Timberland Company and Vermont Businesses for Social Responsibility. More info is available at www.nativeenergy.com. "CoolHome^SM" is a service mark of NativeEnergy, LLC.

Contact: Tom Boucher, NativeEnergy, (802) 877-6826

About Green Mountain Power
Green Mountain Power Corporation is a Vermont-based energy services company serving 87,000 electric customers. See more information at www.greenmountainpower.biz including the new CoolHome program information at www.greenmountainpower.biz/coolhome.

Contact: Dotty Schnure, Green Mountain Power, 802/655-8418

About Clean Air-Cool Planet
Clean Air – Cool Planet is an action-oriented environmental group working directly with corporations, communities, and campuses to develop and implement voluntary greenhouse gas emission reduction efforts. A 501(c)(3) qualified non-profit organization, CA-CP works throughout the Northeast to provide practical solutions that demonstrate the economic opportunities and environmental benefits associated with early actions on climate change. CA-CP works directly with a growing number of companies and institutions that exemplify leadership and social responsibility, including Shaw's Supermarkets, The Timberland Company, Tufts University, Middlebury College, and The University of New Hampshire. See www.cleanair-coolplanet.org.

Contact: Clean Air-Cool Planet
Bill Burtis, Communications Manager, (603) 422-6464 ext. 105
bburtis@cleanair-coolplanet.org