December 20, 2007

Bangor Hydro Electric Company Rate Changes Mean Good News for Customers Customers Will See Decrease in Delivery Charges

Bangor, ME--Bangor Hydro Electric Company customers will see a decrease in delivery charges during the first quarter of 2008. On Thursday, December 20, 2007, the Maine Public Utilities Commission approved new rates for Bangor Hydro's delivery services. Fully implemented, the rate change will result in a decrease estimated at $1.95 per month or 2.25 percent for the typical residential customer bill.

Over the past several years, Bangor Hydro has been able to significantly lower costs. Bangor Hydro strives to keep operating costs down while maintaining the infrastructure necessary to provide reliable service.

"We can't control the cost of energy supply, but we can work to control the cost of delivery, improve efficiency and reliability, and pass savings on to customers," said Bangor Hydro President and Chief Operating Officer Bob Hanf. "I'm particularly proud of the work we've done over the last six years to improve customer service while reducing distribution rates by more than 20 percent, factoring in inflation."

Bangor Hydro continues to invest in technological and efficiency improvements. The company's newest initiative is the Storm Restoration Project, which is designed to improve how Bangor Hydro manages outage restoration not only during severe weather conditions, but also on a daily basis.

Bangor Hydro energized its Northeast Reliability Interconnect on December 5, 2007. The NRI improves the reliability of both the U.S. and Canadian electrical systems. The 345,000 volt transmission line is a new connection to the New England and Maritime Canada systems. It runs 85 miles from Orrington between the St. Croix River near Baileyville, where it connects to a new line built by New Brunswick Power.

Bangor Hydro worked with the MPUC staff and the Office of the Public Advocate to negotiate new rates that would allow the company to provide reliable service while controlling costs for customers. The rate change will be implemented in two stages, with a small increase in January 2008 and a larger decrease in March 2008.

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.