Bangor Hydro Announces Decision on New Transmission Line Route Expected Soon.

Energy Editors/Business Editors

BANGOR, Maine--(BUSINESS WIRE)--Jan. 23, 2004

Bangor Hydro is nearing completion of its analysis of five alternative routes for a new 345 kV transmission line between eastern Maine and the Maritimes. The route analysis process for the permitting and construction of The Northeast Reliability Interconnect (NRI) is expected to be complete in February according to Fred Leigh, Bangor Hydro's Environmental Permitting Manager for the project.

The evaluation process has been on going since last September, when Bangor Hydro began soliciting feedback from a number of parties, including major landowners, state and federal review agencies and interest groups, on a preliminary list of criteria the company had developed to evaluate route alternatives. Bangor Hydro has been seeking input on appropriate environmental, engineering and cost criteria that should be considered in the selection of a preferred route.

As a result of these discussions, nearly 70 different criteria for five route alternatives were identified. The evaluation criteria are intended to measure such items as project purpose, project cost, impacts to wetlands, rare plants, wildlife, fisheries, recreational resources and archeological sites.

"Communicating with others early in the permitting process has provided us with a broader perspective on the significance of various criteria and with site-specific data that would not normally have surfaced until we were much further along" said Leigh. "We believe that knowledge gained from a comprehensive communication process will enable the selection of a route that best achieves the project purpose while balancing landowner, environmental and cost considerations."

Bangor Hydro will continue to meet with landowners, municipal officials, local interest groups and business and community leaders to build awareness and gather more information relative to route selection.

The new transmission line is needed to improve reliability of electrical service. Although Maine shares over 600 miles of border with Canada, there is only one bulk transmission line linking the two regions and their electrical system operations. Reliance on a single, aging transmission line threatens to increasingly compromise electrical service.

A second transmission line will improve electric system reliability, stability and efficiency in addition to expanding competition and electric energy transfers between New England and the Maritimes. The Maine section of the line will be built, owned and operated by Bangor Hydro; the New Brunswick section of the line will be built, owned and operated by NB Power.

Additional public outreach efforts are planned once the route has been selected in order to share information and to receive further input that will factor into route adjustment decisions for specific localized concerns. Federal Department of Energy and state Department of Environmental Protection permitting processes will consider public comments as well. Public notice of those sessions will be issued well in advance.

Parties interested in more information on the project are invited to contact the Company directly at 1-800-499-6600 extension 2568 or through the website at: www.bhe.com/nri

Bangor Hydro-Electric: Bangor Hydro-Electric (BHE) is an electric utility wholly-owned by Emera Inc. BHE serves a population of 192,000 in an area encompassing 5,275 square miles in eastern and east coastal Maine. BHE is a member of the New England Power Pool and is interconnected with other New England utilities to the south and with the New Brunswick Power Corp. to the north. Visit us at www.bhe.com.

Emera Inc. (TSX:EMA) is a diversified energy and services company, with 550,000 customers and $4.0 billion in assets. The company has two wholly owned regulated electric utility subsidiaries, Nova Scotia Power Inc. and Bangor Hydro-Electric Company. Nova Scotia Power supplies over 95% of the electric generation, transmission and distribution in Nova Scotia. Bangor Hydro provides electricity transmission and distribution service to 107,000 customers in eastern Maine. It is a member of the New England Power Pool, and is interconnected with the other New England utilities to the south and with New Brunswick Power to the north. In addition, Emera Energy includes Emera's 12.5% interest in the Maritimes & Northeast Pipeline, which delivers Sable natural gas to markets in Maritime Canada and the northeastern United States, Emera Energy Services, Emera Fuels, and Emera's business development activities.