State utility regulators on Monday approved a special rate deal between Green Mountain Power and IBM. IBM is the state’s largest private employer. The company wanted a 1.5 percent discount on its electric rates.
The Public Service Board said the economic development contract is justified in order for IBM to retain jobs at its Essex Junction plant. But the board said that the discounted rate will be terminated if IBM cuts its Vermont workforce by five percent.
The Public Service Board also approved a rate settlement between GMP and the state. The settlement freezes rates through January, 2005 when GMP will be allowed to raise rates by 1.9 percent. The utility will be allowed to raise rates another 0.9 percent in 2006.