BANGOR – Bangor Hydro Electric Co. announced its intention to file a request to raise its distribution rates and lower its stranded cost rates, creating an average $.70 per household increase on residential bills beginning in 2008. Commercial customers are expected to see a decrease in their overall bill, according to the company.

The request, which will be filed with the Maine Public Utilities Commission in January 2007, is an effort to recover dollars Bangor Hydro has lost to customers who have closed businesses, including mills in Old Town and Millinocket, Eastern Maine Medical Center’s self-generating power facility in Bangor, and customers pursuing energy conservation, according to Kathy Billings, a spokesperson for Bangor Hydro.

If approved, the rate change would only affect the delivery portion of commercial and residential bills. The delivery portion of the bill is divided into three parts: stranded costs, distribution and transmission. Distribution costs will be raised by 7.5 percent, while stranded costs will decrease by 21 percent. The resulting change in the delivery portion of the bill depends on whether the customer is residential or commercial and the size of the commercial customer.

Bangor Hydro predicts its residential customers will see an overall increase of $.70 on the delivery portion of their bill. Commercial customers are likely to see a decrease of varying amounts, Billings said.

Bangor Hydro forecasts stable electric delivery rates through 2008, Billings said.

“We recognize that our customers continue to struggle with the overall cost of electricity,” said Billings. “We continue to do everything we can to control our costs in an effort to limit the impact of increasing electric supply prices on our customers.”