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): May 27, 1999
------------
BANGOR HYDRO-ELECTRIC COMPANY
-----------------------------------------------------
(Exact name of registrant as specified in its charter)
Maine 0-505 01-0024370
- ---------------------------- --------------------- --------------------
(State of Incorporation) (Commission File No.) (IRS EmployerID No.)
33 State Street, Bangor, Maine 04401
-------------------------------- ---------
(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 4, 1999
- ----------------------------- -------------
Item 5. Other Events
- ------ ------------
Sale of Company's Generating Assets. As previously reported, the
Company had reached agreement with PP&L Global, Inc., a Pennsylvania
corporation and a subsidiary of PP&L Resources, Inc., for PP&L Global
to acquire most of the Company's electric generating assets.
Attached is a copy of a press release issued by the Company on May
27, 1999 relating to this sale of assets.
Bangor Hydro Transacts Sale of Generating Assets and
Transmission Rights to PP&L Global
BANGOR, Maine--(BUSINESS WIRE)--May 27, 1999--Bangor Hydro-Electric
Company (NYSE:BGR - news) announced it has completed most of the
transaction for the sale of its electric generating assets and
certain transmission rights to PP&L Global.The purchase price for the
assets transferred was $79 million.
The sale involved all but one of Bangor Hydro's hydroelectric plants
on the Penobscot, Piscataquis, and Union rivers and Bangor
Hydro's 8.33% ownership interest in the Wyman Unit #4 oil-fired plant
in Yarmouth, Maine--a total base load capacity of 83
megawatts. The sale also involved a transfer by Bangor Hydro of
rights to transmit power over the Maine Electric Power
Company (MEPCO) transmission facilities connecting the New England
Power Pool (NEPOOL) to New Brunswick Canada; Bangor Hydro's rights as
a participant in the regional utilities' agreement with Hydro-Quebec
pursuant to an agency agreement; and Bangor Hydro's rights to develop
a second high voltage transmission line that will connect NEPOOL to
New Brunswick, Canada.
Bangor Hydro and other Maine utilities are required to sell their
generation assets as a result of the comprehensive electric utility
industry restructuring law adopted in Maine in 1997. Bangor Hydro
conducted an auction in 1998, which lead to the signing of a
purchase and sale agreement with PP&L Global in late September 1998.
The purchase and sale agreement also includes Bangor
Hydro's 50% interest in the 13 megawatt West Enfield hydro station on
the Penobscot River. The completion of this portion of the
transaction is expected in the near future.
Bangor Hydro will apply most of the net proceeds of the sale to the
reduction of outstanding debt.
"This is the largest single - and the most visible - step that we
will take in the transition mandated by the restructuring law," said
Robert S. Briggs, President of Bangor Hydro. "And it is with
decidedly mixed emotions that we do so." Briggs indicated that it is
very difficult to part company with the assets that Bangor Hydro has
owned and operated for most of this century and with the
people that operate them. "Our people have done a great job with our
hydro plants," said Briggs. "We hate to see them go, but we
know that they'll do good work for PP&L Global, too."
Briggs indicated that the sale is advantageous to Bangor Hydro and
its customers. "Our financial condition is substantially
improved by it, and the proceeds help reduce costs that our customers
would otherwise have to bear," said Briggs. "All in all,
since we had to sell these plants, this is as beneficial a deal for
all parties concerned as we could have hoped."
Briggs also commented favorably on the process of completing the
transaction. "Everyone worked hard, and, except for the West
Enfield piece, we closed the deal almost eight months to the day
since we signed the agreement, which is several weeks ahead of
the aggressive schedule we predicted back then." He cited excellent
cooperation from the regulatory and governmental agencies
involved in the approval process. The transaction required approvals
from the Maine Public Utilities Commission, the Federal
Energy Regulatory Commission, and other agencies.
Bangor Hydro 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.
Contact:
Bangor Hydro-Electric
Robert S. Briggs, (207) 941-6607
or
Carroll R. Lee, (207) 941-6663
BANGOR HYDRO-ELECTRIC COMPANY
by /s/ Frederick S. Samp
------------------------
Frederick S. Samp
Chief Financial Officer
Dated: June 4, 1999
