Bangor Gas Receives Approval for Natural Gas Service From the Maine Public Utilities Commission.

BANGOR, Maine--(BUSINESS WIRE)--May 19, 1998--Yesterday the Maine Public Utilities Commission (MPUC) granted Bangor Gas Company, LLC an unconditional authority to provide natural gas service to Bangor, Brewer, Veazie, Old Town and Orono. "This action will enable Bangor Gas to begin construction cooperatively with the five communities this summer," said Andrew Rea, Vice President of Business Development for Energy Pacific and Director and Senior Vice President of Bangor Gas.

Bangor Hydro and Energy Pacific formed a joint-venture company in August, 1997 seeking approval from the Maine Public Utilities Commission (MPUC) to build, own and operate a natural gas distribution system to serve the greater Bangor area. The two partners formed Bangor Gas, LLC which will provide gas service to residential, commercial and industrial customers in the greater Bangor area.

Gas service to the Bangor area will be made economically feasible for the first time by the Maritimes and Northeast Pipeline Project, slated for completion in late-1999. The new pipeline will extend from the Sable Offshore Energy Project near Sable Island, Nova Scotia through the State of Maine and interconnecting with the Tennessee Gas Pipeline in Dracut, Massachusetts. The route, as proposed, comes near the greater Bangor area providing an opportunity for residences in the greater Bangor marketplace.

"Providing energy options for our customers is important and we are pleased with the MPUC's action," said Robert S. Briggs, Bangor Hydro's President.

The hearing examiner (MPUC staff person conducting the formal proceeding) in recommending approval for unconditional authority to serve said, "We have before us strong evidence that Bangor Gas has undertaken to develop a start-up local distribution natural gas utility in the greater Bangor area with expertise, analysis, and commitment that demonstrates it is well qualified to serve. It is positioned to finalize its plans and begin construction as soon as our review of its application is completed. Bangor Gas's partnership with Bangor Hydro lends its project the benefit of local knowledge, connections, and assistance."

Locally, Bangor, Brewer, Orono, Veazie and the Greater Bangor Region Chamber of Commerce have all passed resolutions supporting Bangor Gas as the preferred local vendor.

Company officials estimate the cost to build and implement the new Bangor Gas system to be approximately $40 million.

Energy Pacific, an unregulated joint-venture of Pacific Enterprises (NYSE:PET) and Enova Corporation (NYSE:ENA) is a multi-regional energy service company providing a wide range of products and service in California and throughout the United States. Included are consumer products, commodity procurement and sales, and energy management and retrofit services, energy services for utilities, municipalities and industrial customers, and customized offerings related to energy usage, information services and financing.

Bangor Hydro (NYSE:BGR) is the second largest electric utility in Maine serving a population of 192,000 in a service territory extending approximately 5,200 square miles in eastern and east coastal Maine. The company is a member of the New England Power Pool and is interconnected with other New England utilities to the south and with New Brunswick Power Corporation to the north.

CONTACT: Bangor Gas Company, LLC

Jim Tyler, [phone]