History
Maine Public Service Company
The Early Years
In the early 1800’s, families in the lumbering business settled along both banks of the Saint John River. Dams were built around various waterfalls to provide power to sawmills for milling logs. As the areas were cleared of trees, the fields were planted with crops of potatoes and grains. The development of agriculture brought more people to the region. Gristmills and starch factories were built and small towns spread out around the power sites, without much concern given to the international boundary separating Maine from Canada.
Electricity was generated by falling water and by using waste wood to fuel small steam generators. Power was sometimes intermittent and not very dependable in the early days. The main use of electricity was to power the mills. Electric energy supplied to residents was of secondary interest; and, it wasn’t until later that service was extended to the communities.
Gould Harnesses Aroostook Falls
In 1886, Arthur R. Gould of East Corinth, Maine, came to Presque Isle and bought a sawmill on the Presque Isle Stream. The next year, the Presque Isle Electric Light Company was formed and in 1891 was moved across the stream to the location of the Gould Sawmill. Gould was made General Manager and power production and lumber milling efforts were combined.
On May 9, 1903, a charter was secured by a group of businessmen for the corporation called Maine & New Brunswick Electrical Power Company, Limited, (Me&NBEPC, Ltd.) The New Brunswick Legislature issued a charter specifying that the directors were required to spend $25,000 within two years and $75,000 within four years. The newly proposed power station to be built at the great Aroostook Falls in Canada had to be completed in six years.
The directors were not able to raise sufficient money to build the power station; and, realizing their time was running out, they approached Arthur R. Gould for financial help. The charter and corporation were turned over to Gould, who had agreed to raise the funds and construct the hydro-station that is known today as “Tinker.”
In 1905, Me&NBEPC, Ltd., was granted an amendment to its original charter by the New Brunswick Legislature, with the consent of the Maine Legislature. This amendment permitted the Company to sell power in the State of Maine. Funds to construct the power plant were hard to raise. Cash was in short supply and several times Gould had difficulty meeting the Saturday night payroll.
Finally, on October 17, 1907, the electric power was turned on. The dream of harnessing the great Aroostook Falls was a reality. The project had called for a vast amount of vision, courage, and steady persistence that persevered, despite countless difficulties and many discouragements.
The Tinker Plant had two 500 kilowatt General Electric generators and provisions for future expansion. The first communities to be served by the new plant were Fort Fairfield and Presque Isle. Just three years later, however, power was supplied to Perth-Andover, Easton, Mars Hill, Bridgewater, Monticello, and Houlton.
Two Companies Operate Independently
The Maine Public Utilities Commission was formed in 1915 to regulate Maine utilities. At the same time, the United States government implemented an income tax which applied to all profits generated within the United States. These two events made it extremely difficult to operate as an international company; and for these reasons, Gould Electric Company was officially organized on January 1, 1918. Me&NBEPC, Ltd., was authorized by the New Brunswick Legislature to sell all its property outside the Province of New Brunswick to Gould Electric Company.
The two companies had the same board of directors and same stockholders, but they operated as two independent companies with contracts between them for the exchange and transmission of electricity. The major generation, naturally, was in Canada; however, most of the transmission facilities were in Maine. Gould Electric transmitted electricity over its transmission lines for re-delivery back into Canada for the New Brunswick company.
Over the years, customers were becoming accustomed to and insisting on more reliable power. Since the Me&NBEPC, Ltd., together with the Gould Elelctric Company, could supply this more reliable source, more and more communities took their power needs from these companies.
A major event occurred in the winter of 1921 and 1922. Heavy snows accumulated over the watersheds of the Aroostook Falls area and all of northern Maine. Warm rains combined with the melting snow produced excessive runoff and flood conditions in all of the streams and rivers. It was a disaster for many small hydro plants. Dams were destroyed and many of the small electric companies never rebuilt. This created a tremendous demand for electricity from the Tinker Plant. Transmission lines were built in a hurry, both north and south. The dam at Woodstock was one of those lost, so a transmission line from the border at Bridgewater to Woodstock, with spurs to Hartland, Bath, Bristol, and Florenceville, was constructed. Eventually, the two companies served both sides of the border, south to Houlton and Woodstock, and north to Fort Kent and Clair.
On May 14, 1926, a change took place in the two companies. The Central Public Service Company, a holding corporation situated in Chicago, purchased all the capital stock of the two companies. The holding company continued to purchase smaller electric companies on both sides of the border. There was a need to consolidate all of these holdings into as few companies as possible, and to that end, a new holding company was organized, called the Maine Public Utilities Company. This company name was changed to Maine Public Service Company by charter amendment in 1929.
The stock market crash of 1929 and the following Great Depression caused the bankruptcy of the holding company system; and, eventually the stock was passed to Consolidated Gas and Electric Company and remained there until 1947.
In 1941, the charter of Me&NBEPC, Ltd., was amended to enable the purchase of Clair Electric Company, Ltd., Woodstock Electric Railway, Light and Power Company, and the Carlton Electric Company, Ltd. Shortly thereafter, these companies were consolidated into Me&NBEPC, Ltd.
The Me&NBEPC, Ltd., and Maine Public Service Company operated as two different affiliated companies until 1942, when Maine Public Service Company purchased all of the then outstanding stock and became the parent organization. In 1947, the holding company sold Maine Public Service Company’s stock to the public.
As the Company continued to grow, it was unable to serve its load strictly from the Tinker Plant. Reservoirs were constructed on the U.S. side on Squa Pan and Millinocket Lakes to allow for the storage of water during the spring runoff for use in dry periods and under peak load conditions. In addition, the Company realized that it needed thermal generation to meet its ever-growing demands.
In 1947, the area had no appreciable rainfall for several months. Woods and fields were becoming tinder dry. Brooks, streams, and rivers became rocky runs with only a trickle of water. Ponds and lakes shrank to the lowest levels on record and the hydro storage reservoirs were reduced to wide areas of mud flats. These conditions made it necessary to sectionalize the system; and rationing of electricity began – one hour on and one hour off. All industry was requested to work at night and everyone was requested to cut all unnecessary use of electricity. The Company worked desperately to install a new diesel thermal generation unit to satisfy the immediate needs. This was followed later on by a new steam generation plant at Caribou.
Expropriation Then Expansion
Recognizing the great advantages of interconnection between the two systems, the New Brunswick Power Commission had resisted the pressures to move against our subsidiary and expropriation had been kept on the back burned; however, the threat had always been in the background.
No utility likes to give up any of its territory, but considering the Provincial dedication to public ownership of its electric utilities, the Company saw little choice in the matter. The principal concern was to continue to own and operate the Tinker Plant and, if possible, to install a larger unit to make better use of available water.
Since the water comes from Maine and the Tinker Plant had been developed by Maine people, for both Maine and New Brunswick residents, the generating property was exempted from the expropriation. The New Brunswick Power Commission recognized the difficulties they would have in controlling the river flows and agreed that the Tinker Plant should remain property of the subsidiary. A price for the remaining properties was agreed upon and the property changed hands in 1963.
The Company lost 5,800 retail customers and approximately $630,000 in annual revenues. Me&NBEPC, Ltd., was left with two wholesale customers, the Perth-Andover Electric Light Commission and The New Brunswick Power Commission itself, which continued to buy power for resale to its Carlingford, N.B. customers.
The money received from the sale of the expropriated property, together with additional funds, was used to give Tinker a $5 million facial and substantially increased the generating capacity. Work was started at the site in the summer of 1963. New bascule gates, nine and one-half feet high, were installed at the main dam. These gates could be raised and lowered hydraulically, provide much better control of the available water, and eliminate the use of flashboards. The canal was also raised and widened. A new bridge and trash racks were installed and Unit No. 5, a 24,600 kilowatt generator was installed adjacent to the existing power house. Tons of cement and steel and other materials were used in the construction project, which was finally placed on line in 1965, and dedicated to C. Hazen Stetson on June 1, that year.
Deregulation
About 30 years later, Maine’s electric restructuring law required Maine Public Service to sell its power plants. Since 2000, the Company no longer generates electricity, but remains responsible for delivering electric services. Now a wholly-owned subsidiary of Maine & Maritimes Corporation, Maine Public Service Company continues in its historic role of providing transmission and distribution facilities and other services necessary to deliver electricity, while maintaining safe, efficient, reliable, and reasonably priced service.
Today, MPS is an Industry Leader
Maine Public Service employs approximately 130 individuals who work to meet the electrical needs of customers and foster economic growth in northern Maine. Jointly with Central Maine Power Company, the largest electric utility in Maine, the Company is developing a large-scale transmission project that, if completed, would connect the MPS transmission network to the New England Electrical grid and allow the distribution of renewable energy generated in Maine to users in southern New England. Maine’s largest wind farm project began operating at Mars Hill in early 2007. Maine Public Service participated in the engineering and construction of this 42-megawatt wind farm and began transmitting power generated by Mars Hill windmills over its power lines in 2007.
The Power of Possibililties
The outlook for Maine Public Service is enhanced by steadily increasing energy consumption in the U. S. and growing interest in wind and other renewable energy projects within the region. Just as the men in 1903 came together at the international border to see the power of possibilities at Aroostook Falls, Maine Public Service leaders are pushing forward with long-term utility projects to provide reliability while connecting with renewable generation and regional investments that improve market efficiency to lower prices. The pioneering businessmen of long ago didn’t realize the immense improvement in our standard of living, which came as a result of their foresight, planning, and hard work. Today, at Maine Public Service, employees are proud of the rich tradition of service, and grateful for the trust extended to power the homes, businesses, and schools of area communities. With the flick of a switch, electricity powers
customer’s televisions, computers, air conditioners, microwaves and dishwashers—all the devices making our lives comfortable, safe and secure. Our customers have come to count on us. We want to ensure a continued reliable and responsible energy future for them, their children, and their grandchildren.
Maine Public Service Company, a subsidiary of Maine & Maritimes Corporation (AMEX: MAM) is a regulated electric transmission and distribution utility serving approximately 36,000 electricity customer accounts in northern Maine. MAM is also the parent company of MAM Utility Services Group, an unregulated wholly-owned US subsidiary which focuses on such areas as transmission infrastructure to support wind generation, utility asset maintenance contracts, and other utility-related services. Corporate headquarters are located in Presque Isle, Maine, and the corporate website is http://www.maineandmaritimes.com/.
Reference: C. Hazen Stetson (1984) From Logs To Electricity: A History of Maine Public Service Company, Presque Isle, Maine, 232 pages.
