NRI Project in Maine confirmed by ISO-NE

Bangor Hydro-Electric Company recently announced that the Independent System Operator of New England (ISO-NE) has approved the Northeast Reliability Interconnect Project (NRI) as a Pool Transmission Facility, or PTF in recognition of its regional reliability benefits.

ISO-NE examined a range of options and concluded that the NRI will best address current system reliability concerns arising out of Maine. The decision means that up to $90.4 million in costs of building the US section of a new 345 kV transmission line connecting eastern Maine with New Brunswick, Canada will be shared across all 6.5 million customers within the New England Power Pool (NEPOOL).

Bangor Hydro applied to ISO-NE for approval of the Northeast Reliability Interconnect as a pool-supported project in June 2004. The purpose was to minimize the project's impact on Maine customers' rates by spreading the cost across New England in recognition of the regional need for improved reliability and efficiency.

"In making its determination that the NRI should be a pool-supported PTF, the ISO concurs with the NEPOOL Reliability Committee that the reliability improvements will benefit the region's customers and that the costs of the NRI are reasonable," said Rob Bennett, General Manager, T&D Assets for Bangor Hydro.

Currently, the Keswick-Orrington line is the only transmission line connecting Maine and New Brunswick, Canada. Built in 1970, the 345 kV line is aging.

The NRI will reduce the Northeastern power grid's vulnerability to contingency events, reliability concerns and outages.

"The NRI will greatly enhance the operation of the electric system and will provide more system options for maintaining reliable service in response to contingencies," Bennett said.

The Northeast Reliability Interconnect will also make it more efficient to import and export electricity between Maine, New England and the Maritimes, by reducing line losses. Further, NEPOOL energy market participants will be provided additional market and supply options thereby reducing overall electrical costs.

Electrical demand is highest in winter in the Maritime Provinces and peaks in the summer in New England. These complementary peaking seasons provide economic advantages to both regions.

"Electricity is not practically storable, but it can be easy to transfer, if the infrastructure is in place," said Senator Ed Youngblood, member of the Maine Legislature's Utilities and Energy Committee.

"The Northeast Reliability Interconnect will allow Maine and New Brunswick to benefit from seasonal market shifts, and the savings will result in lower costs to customers and better service. We've waited a long time for this," he added.

According to BHE's Bennett, by allowing greater power transfer capacity between Maine and New Brunswick, the Northeast Reliability Interconnect will provide a range of economic benefits in addition to improved reliability and service.

The Maine section of the line will be built, owned and operated by Bangor Hydro; the New Brunswick section of the line will be built, owned and operated by New Brunswick Power.

Bangor Hydro has not yet announced the selection of a route for the new line. The route selection process began in 2003 when Bangor Hydro approached major landowners, state and federal review agencies and interest groups to help identify the criteria for Bangor Hydro to evaluate five route alternatives from Orrington, Maine to Point Lepreau, New Brunswick. Nearly 70 criteria are being evaluated for each route alternative. The company expects to make a route announcement soon.

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 and provides electricity transmission and distribution service to 107,000 customers. 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. is a diversified energy and services company, with 550,000 customers and $4.0 billion in assets. The company has two wholly owned regulated electric utility subsidiaries, Nova Scotia Power Inc., which supplies over 95% of the electric generation, transmission and distribution in Nova Scotia and Bangor Hydro-Electric Company, which provides electricity transmission and distribution service to 110,000 customers in Maine. In addition, Emera Energy includes Emera's 12.5% interest in the Maritimes & Northeast Pipeline, which delivers Sable natural gas to markets in Maritime Canada and the northeastern United States, Emera Energy Services, Emera Fuels, and Emera's business development activities.