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Maine & Maritimes Corporation (AMEX:MAM) is the parent company of Maine
Public Service Company, a regulated electric transmission and distribution
utility serving approximately 36,000 electricity customer accounts in
northern Maine. MAM is also the parent company of a subsidiary that provides
utility-related services, including transmission line and substation
design-and-build services for generator projects outside the MPS service
territory and contract work within MPS's territory that MPS is not required
to provide. MAM USG focuses on areas such as transmission infrastructure to
support renewable generation, utility asset maintenance contracts, and other
utility-related services.
Solid Earnings
As a transmission and distribution, or electricity delivery company, the
utility has regulated rates of return which help solidify its ability to
maintain a positive financial position for shareholders. As a 105-year old
company, almost 50 years publicly traded, MPS has demonstrated it is capable
of long-term success, controlling costs, and maintaining the electrical
system for its customers in a prudent and effective manner, while providing
shareholder value.
New Growth Opportunities
In the late 1990's the electric utility industry underwent the process of
"deregulation." In an effort to promote competition and therefore lower
energy prices, the State of Maine passed legislation requiring the sale of
all electricity generating assets by the State's three investor-owned
electric utilities, including MPS. Nearly a decade later, it has become
apparent that these decisions have not yielded the results sought by
lawmakers.
At the same time, the combination of the need for electricity in congested
areas of New England, the lack of significant generation being commissioned,
and the related need for investment in transmission assets to alleviate the
ever-growing demand for electricity, have all improved the opportunity
landscape available to the utility business.
New generation in the form of Maine's largest wind farm is now located
within MPS's service territory. MPS is pursing the development of a
large-scale transmission project, which has the potential to produce
substantial returns and connect MPS to the New England grid.
On July 1, 2008, MPS and CMP announced plans to construct a 345 kV
transmission line from central Maine to northern Aroostook County. The
joint Maine Power Connection (MPC) transmission line project will connect
northern Maine to the CMP and New England electrical grids to provide MPS
customers with access to competitive power markets and support development
of 1,250 MW of proposed wind generation in Aroostook County.
Presently, MPS does not have a connection to the New England electrical grid
or adequate capacity to handle burgeoning requests for transmission
connections from wind developers. The Maine Power Connection
transmission line project will create access to renewable resources and
provide tremendous economic and environmental benefits to northern Maine.
All of these factors, when combined, position MPS to provide long-term
shareholder value.
Experienced Leadership
The executive team at Maine & Maritimes Corporation is united by a shared
commitment to hard work, reliability, and integrity. Management works
cohesively to ensure organizational strategies are effective and goals are
consistently achieved. It is the entire organization's goal to build
respectful relationships and create an environment where capable people
thrive and customers are treated fairly. Talented leaders and
employees throughout the organization are the keys to achieving success;
and, you can count on our integrity and way of doing business to remain
trustworthy.
Best Strategy To Preserve, Sustain, and Grow Shareholder Value.
Company officials believe that the utility base of operations is well
positioned to leverage opportunities as they move forward. Priorities
for growth include investments in MAM USG projects as well as the MPC
transmission line project; debt repayments; and, resumption of dividend
payments to Common shareholders, when prudent and when adequate cash flow is
available.
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