Bangor Hydro Reports Second Quarter 1999 Earnings.

BANGOR, Maine--(BUSINESS WIRE)--July 13, 1999--

Bangor Hydro-Electric Company (NYSE:BGR) today announced unaudited quarterly earnings figures. The Company reported earnings for the quarter ended June 30, 1999 of $.43 per common share compared to $.27 per common share for the same period in 1998. The improvement in second quarter earnings is attributable to an increase in KWH sales, savings from the restructuring of a major power purchase contract at the end of the second quarter of 1998, a one time benefit of $896,000 related to the settlement of a dispute related to the New England Power Pool transmission rates and a 1.36% increase in rates related to the Company's "alternative rate plan" (ARP) effective June 1, 1999.

The Company reported earnings for the six months ended June 30, 1999 of $.97 per common share compared to $.55 per common share for the same period in 1998. Earnings for the twelve months ended June 30, 1999 were $1.80 per common share, compared to earnings of $.45 for the twelve months ended June 30, 1998. The improvement in year to date and twelve months ended earnings is attributable to the above mentioned items, as well as the February 9, 1998 rate increase authorized by the Maine Public Utilities Commission.

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     The June 1999 results are summarized below:


Twelve months ended June 30:            1999           1998

  Revenues                          $196,964,444    $192,613,454

  Net Income                        $ 14,454,686    $  4,609,205

  Basic earnings per Common Share          $1.80            $.45

  Weighted Average Number
   of Shares                           7,363,424       7,363,424



Six months ended June 30:               1999           1998

  Revenues                          $ 97,521,211    $ 95,700,774

  Net Income                        $  7,664,176    $  4,674,808

  Basic earnings per
   Common Share                             $.97            $.55

  Weighted Average Number
   of Shares                           7,363,424       7,363,424



Three months ended June 30:             1999           1998

  Revenues                          $ 47,299,716    $ 46,600,598

  Net Income                        $  3,452,758    $  2,267,167

  Basic earnings per
   Common Share                             $.43            $.27

  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.