THE UNDERLYING (AND UNADDRESSED) ISSUE BEHIND THE BANGOR HYDRO PROPOSED RATE INCREASE

What follows is a copy of a faxed communication sent to the Maine Public Utilities Commission (MPUC) challenging the legal authority of both Bangor Hydro Electric (BHE) and the MPUC to issue any Stranded Cost rate increases to be paid by Maine ratepayers (residents and businesses in Maine). These Stranded Cost rate increases have been granted by the MPUC ever since the BHE hydro generating powers (and BHE) were sold to EMERA, a Canadian corporation, ten years ago.
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STATE OF MAINE
PUBLIC UTILITIES COMMISSION
BANGOR HYDRO-ELECTRIC COMPANY
Investigation into Bangor Hydro's
Stranded Cost Revenue Requirement and Rates
Docket No. 2010-377
MARCH 7, 2011
INTERVENOR
RESPONSE

BHE was purchased outright by Canadian Company, Emera Corp. almost ten years ago. Therefore, it is a pretty fiction to pretend that Bangor Hydro Electric ratepayers can be forced to pay Stranded Costs under USA FERC RULES and State of Maine Statute.

Instead Canadian rules and statutes apply. (refer to Intervenor's exhibits faxed to PUC & N. Healy 3-6-11)

(History:) After USA nationwide deregulation, it is estimated that $200 Billion of Stranded Costs were owed by United States' utilities companies. In order to prevent a massive transfer of wealth from shareholders to consumers, the US utilities' industry was given Federal Regulatory Commission permission to shift their bad debts onto US ratepayers. State statutes were then promulgated to enforce this.

But this is cold comfort for BHE because they were sold. They are NOT an American company. They are EMERA. Emera is a corporation of Canada. Emera is responsible for BHE's bad debts ever since the buyout. (Meaning: EMERA should have become responsible for any BHE debts at that point.) BHE cannot lawfully continue to issue more shares and deny to its State of Maine ratepayers all the protections and benefits that all the other Emera electricity ratepayers enjoy. (The) Stranded Cost rate setting in (case) 2010-377 before Maine PUC is (therefore)illegal.

Therefore, I oppose the net 1% rate decrease in 2010-377. I am writing in Response to the telephone call from Bangor Hydro Electric Company's attorney, Nora Healy, that I received on Friday night, March 4, 2011. In it she mentioned the net one per cent figure. A 14% rate decrease granted to other Emera ratepayers would be more appropriate at this time.

(Signed) Helen Patterson
33 Henderson St, Brownville, ME 04414
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Why is this important to Maine ratepayers?
If the federal statute applies, ALL of the BHE Stranded Cost rate increases, which the MPUC has approved these past several years, may well be illegal. It would mean the ratepayers have been overcharged for delivery and transmission of electrical power.

If that is the case, Maine ratepayers are owed significant refunds and both BHE and the MPUC are in trouble.

Why has the Office of the Public Advocate (OPA) stayed silent on this issue when it has been raised in this case? The OPA is charged with being an advocate for the people's interest.
It has been proposed that the State of Maine's pension fund holds a significant number of BHE shares (and BHE issues thousands of additional shares annually). If BHE/EMERA had to refund the ratepayers the millions of dollars it has collected these last ten years in Stranded Cost rates, what would that do to the already indebted pension fund for state employees and teachers?

On the other hand, IF the state pension fund does hold BHE/EMERA stock-shares, could that be the reason why the OPA is not arguing the issue of illegal collection of Stranded Cost rates?

Would that not be a Conflict of Interest?

Would it not continue to be a Conflict of Interest if the case were taken to the office of the Maine Attorney General?

IF the federal statute referenced in Ms. Patterson's statement applies to BHE/EMERA, the only course for Maine ratepayers may be to file a complaint on behalf of the ratepayes with the Federal Appeals Court.

This case will be coming to some kind of a head at a PUBLIC HEARING in Bangor soon and BHE ratepayers from throughout the region should plan to attend and speak up. The time, date and place will be posted here so keep reading.

Something to Consider: If responsible people had spoken up four and five years ago, Wall Street Bankers and Investment firms would have been stopped in their tracks before they drove this country to its knees three years ago. Maine's financial recovery cannot happen while the price of delivering purchased energy continues to break the backs of both residents and businesses trying to live and survive in this state. Nor should Maine's people be forced to serve as pack animals to carry the burden of mismanagement and self-serving organizations whose licenses-to-operate require they serve the public good.

Maine people used to be known for their backbone and independence. Time to find it. Act like sheep - be treated like sheep. Speak up - or be silenced.