Bangor Hydro reports second-quarter losses

BANGOR – Bangor Hydro-Electric Co. (NYSE: BGR) has reported a loss for the quarter ended June 30 of 4 cents per common share compared with earnings of 17 cents per common share for the same quarter a year ago.

Earnings were negatively affected in the second quarter of 2001 by several one-time events, according to a company news release.

Among the one-time expenses were ISO New England costs associated with transmission constraints and adjustments made to a reserve account for bad debts due mostly to a large industrial customer filing for Chapter 11 bankruptcy.

The company reported earnings for the six months ended June 30 of 58 cents per common share compared with 70 cents per common share for the same period in 2000. The six months’ earnings numbers declined because of the same one-time events, according to the company.

Aside from the one-time items, energy sales to the company’s noncontract customers increased modestly in both periods.

Regulatory approvals for the pending merger of Bangor Hydro-Electric Co. and Canadian-based Emera Inc. are nearing completion. Under an agreement reached in June 2000, Emera will acquire all of the outstanding common stock of Bangor Hydro for $26.50 (U.S.) per share as adjusted in accordance with the agreement. All necessary regulatory approvals required for the merger have been received, except for approval from the U.S. Securities and Exchange Commission. That approval is expected soon.