Bangor Hydro Reports 2000 Earnings.

Business Editors/Energy Writers and Analysts

BANGOR, Maine--(BUSINESS WIRE)--Feb. 8, 2001

Bangor Hydro-Electric Company today announced its 2000 financial results. The Company reported earnings of $1.47 per common share for 2000 compared to $2.35 per common share for 1999. For the fourth quarter of 2000 the Company reported earnings of $.25 per common share compared to $.74 per common share in 1999. As previously reported by the Company, the relatively high level of earnings in 1999 was in part attributable to a number of one-time benefits amounting to approximately $.52 per share.

Several other major changes account for the difference between 2000 and 1999 earnings. The largest change is attributable to new rates implemented by order of the Maine Public Utilities Commission ("MPUC") effective March 1, 2000 that reflect a lower authorized return on equity of 11% in Maine's restructured electric industry. Also affecting earnings in 2000 were costs billed to the Company associated with transmission constraints in New England ($.15 per common share after taxes), the recognition of costs related to the proposed merger ($.25 per common share after taxes) with Emera Incorporated (EMA.TO) that was announced on June 30, 2000, and a write-off associated with power costs to replace generation from the Maine Yankee nuclear power plant ($.16 per common share after taxes). Somewhat offsetting these charges to earnings was a gain on the sale of Penobscot Natural Gas, the Company's wholly-owned subsidiary which owned a 50% interest in Bangor Gas ($.10 per common share after taxes). Total revenues and expenses for the periods presented are difficult to compare because of accounting changes ordered by the MPUC in its rate order and because of changes associated with the introduction of retail competition for energy providers effective March 1, 2000.

Aside from the one-time items mentioned above, energy sales to the Company's non-contract customers increased by 3.4% over 1999 showing continued strength in the local economy.

The 2000 results are summarized below:

Twelve months ended December 31:               2000           1999

    Revenues                           $212,337,545   $197,994,796
    Net Income                         $ 11,102,047   $ 18,280,601
    Basic Earnings per
     Common Share                             $1.47          $2.35
    Weighted Average Number
     of Shares                            7,363,424      7,363,424


Three months ended December 31:                2000           1999

    Revenues                           $ 55,011,870   $ 49,022,051
    Net Income                         $  1,884,672   $  5,579,643
    Basic Earnings per
     Common Share                             $ .25          $ .74
    Weighted Average Number
     of Shares                            7,363,424      7,363,424

Bangor Hydro (www.bhe.com) is an electric utility serving a population of about 192,000 in an area encompassing approximately 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 Corporation to the north.