MONTPELIER (AP) - Customers of Vermont's dominant power company will see a nearly 2.5 percent rate drop beginning in October, while IBM's plants outside Burlington will see their electric rates frozen for three years, under a newly announced agreement.

Gov. Peter Shumlin joined officials with the state Public Service Department and Green Mountain Power on Friday to announce the agreement between those parties, IBM and Associated Industries of Vermont, a manufacturers' group.

The agreement calls for a 1.46 rate cut, plus an additional 1 percent reduction due to an earlier revenue sharing agreement between the state and the owners of the Vermont Yankee nuclear plant.

The agreement requires approval of the Public Service Board, which is expected to consider the proposed resolution over the next few months.