November 16, 2006

Bangor Hydro Electric Company Submits Notice of Changes To Electric Distribution and Stranded Cost Rates

Electric Delivery Rates Forecast To Remain Stable Through 2008

BANGOR - Bangor Hydro Electric Company announced its intent to file with the Maine Public Utilities Commission a request for changes in both its distribution rates and stranded cost rates to go into effect in the first quarter of 2008. Bangor Hydro is forecasting stable electric delivery rates through 2008. "Considering the current cost pressures facing the energy market, we are pleased to put forward a plan for our customers that keeps electric distribution rates relatively stable for the near future," said Kathy Billings, director of corporate and community relations.

"Over the past four years, we have significantly lowered costs and passed those savings on to customers," Billings said. "We have cut electric distribution rates every year by about 2 percent, which will amount to an overall rate reduction of approximately 9.5 percent through the term of our existing Alternative Rate Plan with the Maine Public Utilities Commission." Significant rate increases in the supply portion of electricity bills related to sharply rising fuel costs have offset Bangor Hydro’s distribution rate decreases in recent years. Supply costs now represent slightly more than half of a typical residential customer's bill (see chart below).

Since 2000, when Bangor Hydro was required to sell its electric generation assets as a result of electric utility restructuring in Maine, the company has not generated electricity or arranged for energy supply.

Bangor Hydro's filing requests an increase in distribution rates attributed to load reductions. This increase is nearly offset by a requested reduction in stranded cost rates. It is estimated that the combined impact of the filings will result in an increase of approximately 70 cents per month for the typical residential customer bill beginning the first quarter of 2008.

"We recognize that our customers continue to struggle with the overall cost of electricity," said Billings. "We continue to do everything we can to control our costs in an effort to limit the impact of increasing electric supply prices on our customers."

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.