June 27, 2008

Bangor Hydro Electric Company Announces Annual Transmission Rate Change

Bangor, ME-- Bangor Hydro Electric Company customers will see an increase in electric transmission rates as of July 1, 2008.

The increase is primarily due to an increase in transmission development to improve reliability throughout New England.

Transmission rates are regulated by the Federal Energy Regulatory Commission (FERC) and set on an annual basis. This adjustment occurs July 1 of each year. The transmission rate increase is offset by a decrease in stranded cost rates that was implemented in March 2008.

"Over the past several years, the costs to maintain a reliable transmission system have increased for Bangor Hydro and other New England utilities," said Susan Faloon, Communications Officer. "Reliability standards changed in the summer of 2003 when about 50-million customers lost power in the Northeast. These transmission projects will help us continue to meet those standards for all customers."

In addition to improving reliability, transmission projects currently under development will enable the diversification of energy sources by allowing access to renewable wind, solar, hydro, and tidal power. The projects will help reduce dependence on fossil fuels, while supporting Maine's ability to meet the targets of new environmental standards including the Regional Greenhouse Gas Initiative (RGGI) and Renewable Portfolio Standards (RPS).

The transmission rate increase will affect all Bangor Hydro customers, residential, commercial, and industrial. The increase will amount to about four percent or $3.50 for the average residential customer with an average bill of $85. The rate for commercial and industrial customers will amount to about four to five percent of each company's bill. The new rate will be posted at www.bhe.com after July 1.

Bangor Hydro continues to work to control costs for its customers. Bangor Hydro strives to keep operating costs down while maintaining the infrastructure necessary to provide reliable service. Bangor Hydro has been able to reduce distribution rates by more than 20 percent, adjusting for inflation, over the past seven years. During the first quarter of 2008, Bangor Hydro reduced delivery rates for its customers via a 39 percent reduction in Stranded Cost rates.

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.