Bangor Hydro-Electric Co. announced plans to sell its 50% stakein Bangor Gas, the recently formed local distribution company thatwill deliver Sable Island gas to retail customers in the state ofMaine once the Maritimes pipeline begins service this winter.Sempra Energy owns the other half of the company, which was formedin 1997 to distribute gas production to customers in and aroundBangor and other cities in Maine.

“Our value to the venture has been in our knowledge of the localarea and the regulatory processes,” said Robert S. Briggs,president of Bangor Hydro. “Now, Bangor Gas is up and running withall the necessary approvals and with its own identity. We thinkit’s an appropriate time for us to sell our interest and focus onour core business as an electric utility.”

Briggs said the company’s capital investment has been minimalbut is about to increase sharply given the need to install asignificant amount of distribution pipe. That money, however, wouldbe better invested in Bangor Hydro’s core electric transmission anddistribution business, he said. Electric companies in Maine are inthe midst of implementing Maine’s comprehensive electric utilityrestructuring law, which takes full effect March 1.

“We have come to realize that we have to devote all of ourenergies and resources to our core business,” said Briggs.”Counting our predecessor companies, we’ve been doing this work forover a hundred years, and the change we are adapting to is the mostsignificant event in our history. It demands all of our attentionin order to do it right.”

He added that the decision was not a reflection on the status orperformance of Bangor Gas, which is diligently installing pipe inpreparation for initial service from Maritimes this winter.

Briggs said the company has not yet lined up a buyer for itsstake in the LDC and has no deadline for a sale. Bangor Hydro is asmall electric utility serving 192,000 people and is a member ofthe New England Power Pool.

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