The Portland Press Herald / The Maine Sunday Telegram

March 12

Maine Public Service is being
bought by Canadian utility firm

By Tux Turkel tturkel@mainetoday.com
Staff Writer

Maine Public Service Co., the dominant electric utility in Aroostook County, is being acquired by Nova Scotia-based Emera, Inc., which also owns Bangor Hydro-Electric Co.

Maine & Maritimes Corporation and Emera Inc. announced today that MAM has entered into a merger agreement with BHE Holdings Inc. of Bangor, a subsidiary of Emera Inc.  Under the terms of the agreement, all outstanding shares of MAM common stock will be purchased for $45 per share in cash, and MAM will become a wholly owned subsidiary of Emera.

MAM is the parent company of Maine Public Service  and MAM Utility Services Group. Maine Public Service is a regulated electric transmission and distribution utility serving approximately 36,000 electricity customer accounts in northern Maine.  MAM USG is an unregulated corporation that provides electrical services including transmission line and substation design and construction.

The transaction has been approved by the MAM board of directors, and is expected to close later this year, subject to approval by MAM’s shareholders and certain regulatory approvals, including the Maine Public Utilities Commission and the Federal Energy Regulatory Commission, as well as other customary closing conditions. Regulatory approvals are estimated to take 6-8 months. 

“We look forward to serving the customers of Northern Maine and building on the strong community reputation established by Maine Public Service Company,” said Chris Huskilson, President and CEO, Emera Inc. “Maine plays an important role in the Maritime and New England energy market.  This merger is an important next step in Emera’s strategy of growth and integration within the Northeast market, by geographically expanding our service territory in Maine to the New Brunswick market.”

According to Brent M. Boyles, President and CEO of Maine & Maritimes Corporation, “This transaction will be very advantageous for our shareholders and electricity customers.  Becoming part of Emera strengthens our company financially and enables us to improve reliability and delivery service by working together with Bangor Hydro Electric Company to meet the needs of northern and central Maine customers.” 

Upon completion of the merger, MAM common stock will cease to be publicly traded. There are no immediate plans to reduce staffing levels as Emera contemplates that both MPS and Bangor Hydro will continue to operate separately and serve their customers in their respective service territories.

Emera will honor the current collective bargaining agreements in place with the International Brotherhood of Electrical Workers, Local 1837.