GETTING PREPARED FOR THE PUC/BANGOR HYDRO PUBLIC HEARING 3/17/2011

The following QUESTIONS should be added to the earlier list. Maybe they will generate more questions in your mind as you consider them.

1. Since the Office of the Public Advocate (OPA) will have to sign off on any Settlement that may be reached with Bangor Hydro Electric (BHE), WHO in the OPA will sign the Order to raise BHE's residential ratepayers' Transmission and Delivery rates in this Case (2010-377)? The Public Advocate Richard Davies? Someone else? How has that person(s) participated in this Case? Has he filed any Testimony, Data Requests, or responded to any data or issues raised by any other Intervenors (petitioners against the rate increases)? Has he attended and/or participated in any of the numerous Technical Conferences that have been conducted by the Maine Public Utilities Commission (MPUC) Hearing Examiner, Benjamin Smith? If not, Why Not?

2.Does the State of Maine support its pension system by investing in the companies the MPUC regulates? Specifically any of the electrical companies (EMERA, formerly BHE, or IBERDROLA, formerly CMP)? What about wind? solar? gas or other? Why is this not publically disclosed?

3. Any state employee (or teacher) has a vested interest in wanting MPERS investment assets to maintain or increase in value. The higher the rates BHE can charge its ratepayers, the higher the value on its stock/shares. Employees of the MPUC and the Maine OPA are state employees. IF MPERS holds BHE/EMERA shares, is there not a conflict of interest in their participation in BHE requests for rate increases?

4. How are EMERA/BHE board members and executives paid? Salary? Stock only? Salary and Stock?

5. How does EMERA/BHE define "customer?" (Companies that issue stock consider their "Customers" the stock holders.) Who are EMERA/BHE's "customers?" The stock holders or the ratepayers?

6. When EMERA bought BHE, how many shares of BHE stock were outstanding? Were the shares converted to EMERA stock? How many BHE/EMERA shares are now outstanding? In what name are the stock dividends issued and/or paid - BHE or EMERA?

7. How can BHE continue to issue stock shares after the buyout of EMERA of Canada?

8. EMERA Corporation of Canada is governed by Canadian law and regulation. They are not governed by the United States Federal Energy Regulatory Commission (FERC) and/or State of Maine utilities' statutes. In the current case, Why is the MPUC using a Maine statute and FERC Rules to falsely justify rate settings to collect Stranded Costs from a Canadian Corporation, EMERA, over which U.S. utility regulators have no jurisdiction?


And now for a little information:

The issue of Stranded Costs came about in the late 1990s when deregulation went into effect. United States Federal Energy Regulatory Commission (FERC) Order No. 888, issued November 25, 1997, governs the calculation and collection of Stranded Costs. An excellent explanation is available in the October 1998 report published by the Congressional Budget Office, titled “Electric Utilities: Deregulation and Stranded Costs.”

Stranded Costs are defined as a company's debt or lost income. Why are Maine ratepayers being expected to pay for a Canadian Corporation's debts?

Page 9 of the above referenced report contains the following two paragraphs:

Estimates of utilities' total stranded costs nationwide have ranged from $10 billion to $500 billion, although most estimates fall between $100 billion and $200 billion. Various financial houses, government agencies, and consulting firms have produced independent estimates of stranded costs, mainly looking at individual states. Three independent estimates that look at such costs nationwide come from Moody's Investors Service, Resource Data International (RDI), and the Oak Ridge National Laboratory. They are all administrative ex ante estimates.

Those three sources give remarkably similar numbers for utilities' total exposure to stranded costs. Oak Ridge's estimate is the lowest because it nets out taxes (assuming a federal tax rate of 35 percent) if those losses are written off. The three sources also give similar estimates of stranded costs by region. All three report that utilities in New England and the West face the highest stranded costs.

Neither the Maine PUC nor Bangor Hydro want people to be raising this issue or have a court of jurisdiction (federal court) address the issue of whether or not BHE/EMERA have the right, under FERC rules, to collect Stranded Costs from Maine customers.

The Maine Public Utilities Commission will be conducting a Public Hearing on this issue. It is scheduled for Thursday, March 17 at 6pm at the Richard E. Dyke Center for Family Business at Husson College in Bangor. The Hearing Examiner was reminded that date was St. Patrick's Day. He continued to schedule the PUBLIC Hearing on that date. Could it be it was with the intention (hope) few people would attend?

The issue is Bangor Hydro Electric (BHE) Company’s attempt to raise residential stranded cost rates. BHE’s intent is to apply these rate increases to the Transmission and Delivery of ratepayers bills. Attend, Speak Up, Ask Questions.