October 13, 2006

Bangor Hydro-Electric Company and Governor John Baldacci Break Ground for Northeast Reliability Interconnect

Bangor, ME: Bangor Hydro-Electric Company and Governor John Baldacci conducted a formal groundbreaking ceremony for the Northeast Reliability Interconnect (NRI). The NRI is an 85- mile long, 345 kV electric transmission line, that will extend from Orrington, Maine to the St. Croix River near Baileyville, Maine. The NRI is designed to improve electric system reliability, stability and efficiency in the region, in addition to expanding competition and electric energy exchanges between New England and the Maritimes. The Maine section of the line will be owned and operated by Bangor Hydro; the New Brunswick section will be owned and operated by N.B. Power Holding Corporation.

"The NRI will provide a number of benefits directly to Bangor Hydro’s customer base, the region, the state of Maine and the Maritimes," said Rob Bennett, President and COO of Bangor Hydro. "But this is more than just a transmission line - the benefits to Eastern Maine will translate to additional jobs and improvement of economic conditions in the region. Because with improved electrical efficiency, we hope to help build a foundation for regional economic development," Bennett added.

"I want to congratulate Bangor Hydro for completion of a very successful permitting process early this year and now at the start of construction. By listening to and addressing the concerns of all interested parties, and by adjusting the line's path where feasible, you have set a fine example that I hope all developers in Maine follow," stated Governor John Baldacci.

Also included in the groundbreaking ceremony were Wayne Snowden, Vice President for New Brunswick Power Transmission and David Helwig, President and CEO of InfraSource, Inc., the construction contractor for the project.

Bangor Hydro considered many factors when selecting the route, including landowner concerns, environmental impacts and regulatory requirements. The line is scheduled to be in service by the end of 2007.

Bangor Hydro-Electric Company (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. (EMA-TSX) is an energy and services company with $4.0 billion in assets. Electricity is Emera's core business. The company has two wholly-owned regulated electric utility subsidiaries, Nova Scotia Power Inc. and Bangor Hydro-Electric Company, which together serve 590,000 customers. Emera's other investments include a joint venture interest in Bear Swamp, a 600 megawatt pumped storage hydro-electric facility in northern Massachusetts; a 12.9% interest in the Maritimes & Northeast Pipeline ; and Emera Energy Services which manages energy assets on behalf of third parties and provides related services. Visit Emera on the web at www.emera.com.