BANGOR – Bangor Hydro-Electric Co. has filed a formal request with the Public Utilities Commission to raise its distribution rates and lower its stranded cost rates, creating an average 70 cents 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.

Customers and other stakeholders have the opportunity to intervene in the process by Feb. 14.

Bangor Hydro’s request and potential rate change are unrelated to the PUC’s recent announcement of a standard offer electric rate increase beginning March 1.

Despite declining energy prices, residential and small business customers of Central Maine Power Co. will be paying 2.7 percent more in combined energy and delivery charges, while those served by Bangor Hydro will see their rates go up by 1.7 percent, or about $1.80 on an average homeowner’s monthly bill.

PUC Chairman Kurt Adams said rates would have gone down if not for new payments mandated by the Federal Energy Regulatory Commission to promote more power generation in parts of New England.

As a member of the ISO-New England energy consortium, Maine is obligated to pay into a pool that supports energy production in New England. Maine has a surplus of electricity production, but other areas, such as southwest Connecticut, lack power plants.

“These capacity payments present an unfair burden for Maine ratepayers,” Adams said.

He vowed that his agency will continue to oppose the federal decision to impose the charges, saying they stand to cost Maine consumers $300 million over the next four years.

The PUC last month appealed the FERC decision in the U.S. Circuit Court of Appeals in Washington.

For more information, visit the PUC Web site at www.mainel.gov/mpuc/ or call 287-3831.