BANGOR HYDRO <BANG> SEEKS RATE CUT
Bangor Hydro-Electric Cor said it
has filed with the Maine Public Utilities Commission (MPUC) for
a two-stage base rate reduction.
    Bangor Hydro said the first stage, which could take effect
on April 1 and would stay effective until the MPUC makes a
final decision on the filing, could cut revenues by 6.149 mln
dlrs, or 9.7 pct.
    The company said lower federal income taxes and lower
capital costs prompted the filing.
    The second stage, Bangor Hydro said, effective when the
MPUC makes a final decision, calls for an additional revenue
reduction of 712,000 dlrs, or 1.1 pct.
    Bangor Hydro said, if approved, the cuts would reduce
residential base rates by 8.5 pct, with 7.5 pct cut by April 1.
    The utility company also said it is seeking to increase its
fuel cost adjustment rate by April 1.
    Bangor said if the increase is approved it could offset
much of the base rate cut and may cause a net increase in some
customers' rates.
 Reuter
