Bangor Hydro Intends to Sell Interest in Bangor Gas Co., LLC.

BANGOR, Maine--(BUSINESS WIRE)--Nov. 22, 1999--

Bangor Hydro-Electric Company (NYSE:BGR) announced today that it intends to sell its interest in Bangor Gas Company, LLC. Bangor Hydro owns a 50% interest in Bangor Gas, which is a joint venture with a subsidiary of Sempra Energy. Sempra, through other subsidiaries, is the largest operator of gas distribution systems in the U.S.

Bangor Hydro and Sempra formed Bangor Gas in 1997 to develop a natural gas distribution system in Bangor and neighboring communities. Gas service in the Bangor area has become feasible for the first time because of development of the Maritimes and Northeast Pipeline Project, which will tap gas fields off the coast of Nova Scotia and interconnect with another pipeline in Massachusetts.

"Our value to the venture has been in our knowledge of the local area and the regulatory processes," said Robert S. Briggs, President of Bangor Hydro. "Now, Bangor Gas is up and running with all the necessary approvals and with its own identity. We think it's an appropriate time for us to sell our interest and focus on our core business as an electric utility." Briggs indicated that Bangor Hydro will be seeking expressions of interest for the purchase of its share of Bangor Gas.

Bangor Hydro's core business is as an electric transmission and distribution utility. Electric companies in Maine are in the midst of implementing Maine's comprehensive electric utility restructuring law, which takes full effect March 1, 2000. "We have come to realize that we have to devote all of our energies and resources to our core business," said Briggs. "Counting our predecessor companies, we've been doing this work for over a hundred years," he continued, "and the change we are adapting to is the most significant event in our history. It demands all of our attention in order to do it right."

Bangor Hydro (www.bhe.com) is an electric utility serving a population of about 192,000 in an area encompassing 5,275 square miles in eastern and east coastal Maine. Bangor Hydro 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.