SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 19, 1997
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BANGOR HYDRO-ELECTRIC COMPANY
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(Exact name of registrant as specified in its charter)
Maine 0-505 01-0024370
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(State of Incorporation) (Commission File No.) (IRS Employer ID No.)
33 State Street, Bangor, Maine 04401
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 207-945-5621
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Current Report, Form 8-K Date of Report
Bangor Hydro-Electric Company March 19, 1997
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Item 5. Other Events
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The Company issued the following news release on March 19, 1997:
BANGOR HYDRO SUSPENDS PAYMENT OF COMMON DIVIDENDS
Bangor, ME - The Board of Directors of Bangor Hydro-Electric Company today
did not declare a quarterly dividend on the company's common stock. The
Board determined that the payment of common stock dividends is being
suspended as a result of current financial pressures.
Regular quarterly dividends on Bangor Hydro's various series of preferred
stock were declared as follows:
8.76% Preferred Stock ---------------------- $2.19 per share
7% Preferred Stock ------------------------- $1.75 per share
4.25% Preferred Stock ---------------------- $1.06 per share
4% Preferred Stock ------------------------- $1.00 per share
Bangor Hydro cited the ongoing difficulties at the Maine Yankee nuclear
generating plant as the primary reason for suspending common dividend
payments. Bangor Hydro owns a 7% interest in Maine Yankee, which provides
almost a quarter of the utility's power supply requirement when the plant is
operating. Maine Yankee has experienced a series of problems, and is
presently off-line until at least mid-summer. While the plant is out of
service, Bangor Hydro must purchase replacement power at market prices, as
well as continue to pay it's share of the fixed costs at Maine Yankee.
"We sincerely regret having to omit the payment of common dividends", said
Robert S. Briggs, President and CEO. "But, as our stockholders know all too
well, we've been dealing with challenging financial pressures for some time
now. We have been making good progress, but we really needed Maine Yankee's
excellent, low-cost track record to continue. Unfortunately, that's not
happening right now." Bangor Hydro cited the lack of adequate earnings, the
need to conserve cash and the need to manage the potential for being unable
to comply with covenants in loan agreements with its lenders as the primary
reasons for omitting the common dividend. The quarterly common dividend
payment had previously been reduced, from $.33 to $.18, in the second quarter
of 1995, and had been maintained at that level until today's decision.
Bangor Hydro has also sought an increase in its rates as part of its plan to
address its financial condition. The utility has not had a rate increase in
several years.
Bangor Hydro is an electric utility serving a population of about 195,000 in
a service area of about 5,250 square miles in eastern and east central Maine.
It is a member of the New England Power Pool, and is interconnected with
other New England utilities to the south and with New Brunswick Power to the
north. Bangor Hydro is listed on the NYSE under the symbol "BGR".
BANGOR HYDRO-ELECTRIC COMPANY
by /s/ Frederick S. Samp
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Frederick S. Samp
Chief Financial Officer
Dated: March 19, 1997
