Renewable Resources - Hydropower

As the chart below shows, the share of GMP power produced by hydroelectric facilities has climbed in recent years and will continue to rise in the future. At the same time, the percentage of power produced by plants fired by fossil fuels like coal and oil has diminished.
Energy Source Comparison	GMP believes its power-supply portfolio, with its increasing concentration of clean sources, is a material advantage in an era when consumers are concerned about overall environmental quality. Through its relationship with Hydro-Quebec, with its vast hydroelectric resources, GMP has access to additional "green" power.

GMP's own hydroelectric resources include eight small generating stations, with a total generating capacity of 36 megawatts.

For one of those sites, the Essex 19 facility on the Winooski River, the Federal Energy Regulatory Commission issued a new 30-year operating license in 1995. During the relicensing process, the Company committed itself:

• To operate the generating plant with minimum river flows, which will maintain water quality, promote fish spawning and support plant life.
• To build a downstream fish bypass to help landlocked salmon fry return to Lake Champlain.
• To upgrade the recreational facilities at the site, building a new canoe portage and making improvements to an adjacent park.

Among Vermont utilities seeking to relicense hydro sites, only GMP has avoided litigation. The Company's success in relicensing the Essex site is a result of its having taken the initiative to win support for the improvements to its hydro site.