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): JUNE 16, 1999
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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
Current Report, Form 8-K Date of Report
BANGOR HYDRO-ELECTRIC COMPANY JUNE 16, 1999
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ITEM 5. OTHER EVENTS
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RESUMPTION OF DIVIDEND ON COMMON STOCK. At a regularly scheduled Board of
Directors meeting held on June 16, 1999, the Board of Directors of the
Company declared a cash dividend on its common stock of $.15 per share,
payable July 20, 1999 to shareholders of record June 30, 1999. This will be
the first common stock dividend since the Company suspended common dividend
payments in March 1997 due to financial difficulties. Attached is a copy of
a press release issued by the Company on June 16, 1999 relating to this
resumption of dividends.
BANGOR HYDRO RESUMES DIVIDEND PAYMENTS
Bangor, ME - The Board of Directors of Bangor Hydro-Electric Company (NYSE:
BGR) today declared a cash dividend on its common stock of $.15 per share,
payable July 20, 1999 to shareholders of record June 30, 1999. This will be
the first common stock dividend since the Company suspended common dividend
payments in March 1997 due to financial difficulties triggered by problems at
the Maine Yankee nuclear generating plant. Bangor Hydro has a 7% ownership
interest in Maine Yankee, which was permanently shut down later in 1997 and
is now in the process of being decommissioned. Prior to suspending the common
dividend in March 1997, Bangor Hydro had been paying quarterly dividends on
its common stock of $.18 per share.
"We are pleased that our financial performance has recovered to the point
where we can resume dividend payments," said Robert Briggs, President of
Bangor Hydro. "We've worked hard to make it happen, and in the meantime our
shareholders have been very patient. Common stockholders have a right to
expect a reasonable return for providing the investment foundation for the
facilities necessary to serve customers, and we appreciate the support our
shareholders have provided while we've been dealing with difficult
challenges."
Briggs indicated that the Board was taking a cautious approach to the
resumption of common dividends. "While Maine Yankee's uncertainties seem to
be behind us," said Briggs, "we're still dealing with others." Bangor Hydro
and Maine's other electric utilities, in concert with Maine regulators, are
in the process of implementing Maine's comprehensive electric utility
restructuring law by March 1, 2000. The law, adopted in 1997, provides for
direct consumer choice for electricity suppliers, while Bangor Hydro will
continue to provide the "delivery" service as a regulated transmission and
distribution utility. "The regulatory proceedings to establish the rates for
the company on and after March 1, 2000 will not be completed until late this
year or early next year," said Briggs, "and the outcome of that case is
important to our expectations of financial results going forward." Briggs
also indicated that the company's dividend policy would have to reflect the
fundamental changes taking place in the industry and the need to retain
financial flexibility to take advantage of other opportunities or to respond
to unanticipated developments.
Bangor Hydro is required to exit the generation business as a part of utility
restructuring, and on May 27 closed on a generation asset sale transaction
that brought $79 million in cash proceeds, with another $10 million part of
the transaction expected to be consummated soon. The generation asset sale
proceeds are being used to reduce outstanding debt. "The proceeds from our
generation asset sale have undoubtedly put us on sounder financial footing,"
said Briggs.
Regular quarterly dividends on Bangor Hydro's various series of preferred
stock were declared as well.
Dividend Declaration Summary
Common stock, $5 par value ------------------------ $0.15 per share
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 (www.bhe.com) is an electric utility serving a population of
about 192,000 in an area encompassing 5,275 square miles in eastern and east
coastal Maine. Bangor Hydro 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.
For More Information Contact:
Robert S. Briggs, President & CEO / (207) 941-6607
or Frederick Samp, Chief Financial Officer / (207) 941-6653
BANGOR HYDRO-ELECTRIC COMPANY
by /s/ Frederick S. Samp
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Frederick S. Samp
Chief Financial Officer
Dated: June 17, 1999
