Bangor Hydro requests to intervene before the Federal Energy Regulatory Commission regarding the Maritimes and Northeast Pipeline Project.

BANGOR, Maine--(BUSINESS WIRE)--Nov. 4, 1996-- Concerned about the possibility of a major increase in electric rates for residential and commercial customers and unfair subsidies by the proposed gas pipeline companies, today Bangor Hydro asked the Federal Energy Regulatory Commission (FERC) to grant it intervenor status in the Maritimes & Northeast Pipeline, L.L.C. (Maritimes) case.

If the FERC grants intervenor status to Bangor Hydro, the Company would be allowed to participate in FERC proceedings in the Maritimes request for permits to build and operate a natural gas pipeline in Maine.

"We are not opposed to the project, and to the extent it provides opportunities for additional economic development in our region of Maine, we fully support it. However, we are asking the FERC to assure that the pipeline is not built at the expense of increased costs to our residential and smaller commercial customers," said Robert S. Briggs, President of Bangor Hydro.

Maritimes proposes that it be allowed to run secondary pipelines to serve individual industrial customers in Maine. In its filing to the FERC, Bangor Hydro has asked that the permits include sufficient conditions to assure that the provision of gas service to these industrial customers will not result in higher electric rates for Bangor Hydro's residential and commercial customers. Over the years, in accordance with its legal obligation to provide electric service to all customers in its territory, Bangor Hydro has made power purchase commitments and has invested in facilities to supply electricity to these industrial customers. Moreover, the public policies of the 1980's lead to large commitments to non-utility generators, which has resulted in high electric rates. Everyone--including industrial electric customers--shares in paying off these obligations, so if the electric company loses business these costs must then be collected from a smaller customer base. The Company's filing asks the FERC to assure that residential and commercial customers -- people who are not likely to benefit from the gas line -- are not asked to pay for these costs.

"While there is certainly local enthusiasm and support for the gas line, we think there is little understanding of the potential downside," said Mr. Briggs. "The FERC is supposed to decide whether the gas line is in the public good, and we think the potential that only a few might benefit, and do so at the expense of others, is a legitimate issue for the FERC to address."

Bangor Hydro is the second largest electric utility in Maine. It serves a population of about 192,000 in an area encompassing 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 the New Brunswick Power Corporation to the north.

CONTACT: Bangor Hydro Electric Co.

Bill Cohen, [phone]