_______________________________________________________________ SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549
___________________________________ 
FORM 10-Q ( / ) QUARTERLY REPORT PURSUANT
TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 FOR THE QUARTERLY PERIOD
ENDED JUNE 30, 2003 -OR- ( ) TRANSITION REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
___________________________________ Commission File No.
333-103749 MAINE & MARITIMES
CORPORATION A Maine Corporation I.R.S. Employer
Identification No. 30-0155348 209 STATE STREET, PRESQUE
ISLE, MAINE 04769 (207) 760-2499 ___________________________________ Indicate by check mark
whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the
past 90 days. Yes X. No. Indicate the number of
shares outstanding of each of the issuer's classes of common stock, as of the
close of the period covered by this report. Common Stock, $7.00 par
value - 1,574,582 shares
__________________________________________________________________________  Form 10-Q PART 1. FINANCIAL INFORMATION Item 1. Financial Statements See the following exhibits: (1)
Maine & Maritimes Corporation and Subsidiaries Condensed Consolidated
Financial Statements, including an unaudited statement of consolidated
operations for the quarter and six months ended June 30, 2003, and for the
corresponding periods of the preceding year; (2) an unaudited consolidated
balance sheet as of June 30, 2003; and (3) an audited consolidated balance
sheet as of December 31, 2002, the end of Maine Public Service Company's
preceding fiscal year; and (4) an unaudited statement of consolidated cash
flows for the period January 1 (beginning of the fiscal year) through June 30,
2003, and for the corresponding period of the preceding year. In the opinion of management, the accompanying unaudited,
condensed and consolidated financial statements present fairly the financial
position of the Company and Subsidiaries at June 30, 2003, and December 31,
2002, and the results of their operations for the three and six months ended
June 30, 2003, and their cash flows for the six months ended June 30, 2003, and
for the corresponding periods of the preceding year. The accompanying unaudited
consolidated financial statements include the accounts of Maine & Maritimes
Corporation (the "Company" or "MAM"), its wholly-owned, regulated
transmission and distribution subsidiary, Maine Public Service Company ("MPS"),
and its unregulated energy marketing subsidiary, Energy Atlantic, LLC ("EA"). Maine & Maritimes Corporation, a Maine corporation which
became a holding company effective June 30, 2003, owns all of the common stock
of Maine Public Service Company.  All of the shares of MPS common stock
were converted into an equal number of shares of MAM common stock, which are
listed on the American Stock Exchange under the symbol MAM.  The
reorganization was approved by MPS's shareholders at the annual meeting on May
30, 2003. The U.S. Securities and Exchange Commission ("SEC") had previously
accepted MAM's S-4A Registration Statement for registration and other
appropriate state and federal regulatory agencies issued the necessary
approvals on various dates in 2003.  Amounts shown for 2002 were reported
by MPS.  Amounts that were in the first three month period of the
six-month period ending June 30, 2003 were also reported by MPS. MPS is subject to the
regulatory authority of the Maine Public Utilities Commission ("MPUC") and,
with respect to wholesale rates, the Federal Energy Regulatory Commission
("FERC"). The accompanying unaudited consolidated financial statements
should be read in conjunction with the MPS 2002 Annual Report which includes
MPS's Form 10-K.  Certain financial statement disclosures have been
condensed or omitted but are an integral part of the MPS 2002 Form 10-K.
 These statements reflect all adjustments that are, in the opinion of
management, necessary to a fair statement of results for interim periods
presented.  All such adjustments are of a normal recurring nature.
 The Company's significant accounting policies are the same as those of
MPS, which are described in the Notes to Consolidated Financial Statements of
MPS's 2002 Annual Report filed with Form 10-K.  For interim reporting
purposes, these same accounting policies are followed.  MAINE & MARITIMES CORPORATION AND SUBSIDIARIESSTATEMENTS OF CONSOLIDATED OPERATIONS(Unaudited)(Dollars in Thousands Except Per Share Amounts)Three Months Ended
  Six Months EndedJune 30,
  June 30,2003
  2002
  2003
  2002Operating RevenuesRegulated
  $  6,322
  $  6,401
  $ 15,902
  $ 16,000Unregulated
  1,699
  1,647
  3,487
  3,047Unregulated
  SOS Margin
  0
  5
  0
  412Total Revenues
  8,021
  8,053
  19,389
  19,459Operating ExpensesUnregulated
  Energy Supply
  1,399
  1,315
  2,893
  2,516Operation
  & MaintenanceRegulated
  3,129
  2,764
  5,894
  5,528Unregulated
  642
  343
  1,109
  668Total
  Operation & Maintenance
  3,771
  3,107
  7,003
  6,196Depreciation
  665
  503
  1,330
  1,158Amortization
  of Stranded Costs
  2,225
  2,182
  4,673
  4,643Amortization
  52
  59
  103
  118Taxes
  other than Income
  371
  357
  739
  714Provision/(Benefit)
  for Income TaxesRegulated
  (212)
  57
  879
  1,405Unregulated
  20
  (12)
  16
  90Total Provision/(Benefit)
  for Income Taxes
  (192)
  45
  895
  1,495Total Operating Expenses
  8,291
  7,568
  17,636
  16,840Operating Income
  (270)
  485
  1,753
  2,619Other Income (Deductions)Equity
  in Income of Associated Companies
  66
  72
  137
  160Allowance
  for Equity Funds Used During Construction
  31
  21
  31
  35Provision/(Benefit)
  for Income TaxesRegulated
  8
  7
  (3)
  (63)Unregulated
  (7)
  (8)
  (12)
  (11)Other
  - Net
  (65)
  (41)
  (147)
  45Total
  33
  51
  6
  166Income (Loss) Before
  Interest Charges
  (237)
  536
  1,759
  2,785Interest
  ChargesLong-Term
  Debt & Notes Payable
  331
  411
  686
  805Less
  Carrying Costs-Stranded Costs and Allowance for Borrowed Funds used During
  Construction
  (332)
  (273)
  (631)
  (523)Total
  (1)
  138
  55
  282Net Income (Loss) Available
  for Common Stock
  $      (236)
  $      398
  $    1,704
  $   2,503Average Shares Outstanding
  (000's)
  1,575
  1,574
  1,574
  1,574Basic & Diluted Earnings
  (Loss) Per Share
  $     (0.15)
  $     0.25
  $      1.08
  $     1.59Dividends Declared per
  Common Share
  $      0.37
  $     0.35
  $      0.74
  $     0.70The accompanying notes are
  an integral part of these financial statements.    MAINE & MARITIMES CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(Dollars in Thousands)(Unaudited)ASSETS
  June
  30,
  December
  31,2003
  2002Utility PlantElectric Plant in Service
  $
   87,663
  $
   88,072Less Accumulated Depreciation
  40,452
  39,432Net Electric Plant in Service
  47,211
  48,640Construction Work-in-Progress
  2,696
  96Total
  49,907
  48,736Investment in Associated
  CompaniesMaine Yankee Atomic Power
  Company
  2,433
  2,873Maine Electric Power Company,
  Inc.
  573
  525Total
  3,006
  3,398Net Utility Plant and Investments
  52,913
  52,134Current AssetsCash and Cash Equivalents
  3,304
  5,956Accounts Receivable Net
  4,327
  5,429Unbilled Base Revenue
  975
  1,294Other Current Assets
  1,130
  1,041Total
  9,736
  13,720Regulatory AssetsUncollected Maine Yankee
  Decommissioning Costs
  20,712
  22,153Recoverable Seabrook Costs
  14,444
  14,999Regulatory Assets - SFAS 109
  & 106
  7,099
  7,162Deferred Fuel and Purchased
  Energy Costs
  15,356
  13,132Regulatory Asset - Power
  Purchase Agreement Restructuring
  5,078
  5,804Unamortized Premium on Debt
  Redemptions
  1,604
  1,709Deferred Regulatory Costs (less
  accumulated amortization)
  1,790
  1,409Total
  66,083
  66,368Other AssetsUnamortized Debt Expense
  749
  823Restricted Investments
  2,962
  4,437Miscellaneous
  1,172
  655Total
  4,883
  5,915Total Assets
  $133,615
  $138,137CAPITALIZATION AND
  LIABILITIESCapitalizationCommon Shareholders' EquityCommon Stock
  $
   11,022
  $
   13,071Paid-in Capital
  0
  51Retained Earnings
  36,558
  40,503Treasury Stock, at cost
  0
  (6,596)Total
  47,580
  47,029Long-Term Debt (less current maturities)
  29,975
  30,680Current LiabilitiesLong-Term Debt Due Within One
  Year
  1,365
  3,085Notes Payable
  1,750
  2,800Accounts Payable and Accrued
  Liabilities
  3,665
  3,772Accrued Employee Benefits
  790
  1,336Dividends Declared
  583
  582Other Current Liabilities
  468
  225Total
  8,621
  11,800Deferred CreditsUncollected Maine Yankee
  Decommissioning Costs
  20,712
  22,153Deferred Income Tax
  22,446
  22,271Investment Tax Credits
  174
  189Deferred Gain & Related
  Accounts-Generating Asset Sale
  22
  469SFAS 87 Provision for Pension
  Benefits
  2,158
  1,956SFAS 106 Provision Other Post
  Employment Benefits
  1,349
  1,166Miscellaneous
  578
  424Total
  47,439
  48,628Total Capitalization and Liabilities
  $133,615
  $138,137The accompanying notes are an
  integral part of these financial statements.     MAINE & MARITIMES CORPORATION AND SUBSIDIARIESStatements of Consolidated Cash Flows(Unaudited)(Dollars in Thousands)Six  Months  Ended  June 30,2003
  2002Cash Flow From Operating
  ActivitiesNet Income
  $  1,704
  $  2,503Adjustments to Reconcile Net
  Income to Net Cash Provided By OperationsDepreciation
  1,330
  1,158Amortization
  658
  673Amortization
  of Deferred Gain from Asset Sale
  (443)
  (1,689)Amortization
  of W/S Upfront Payment
  726
  726Income
  on Tax Exempt Bonds-Restricted Funds
  (7)
  (33)Deferred
  Income Taxes - Net
  160
  515AFUDC
  (39)
  (46)Change
  in Deferred Fuel & Purchased Energy
  (2,224)
  122Change
  in Deferred Regulatory and Debt Issuance Costs
  (198)
  (534)Change
  in Deferred Regulatory Liability - Transition Costs
  (6)
  (7)Change
  in Deferred Regulatory Liability - NEIL Refund
  0
  (1,005)Change
  in Benefit Obligation
  533
  374Change
  in Current Assets and Liabilities
  923
  3,673Other
  (63)
  (160)Net Cash Flow Provided By
  Operating Activities
  3,054
  6,270Cash Flow From Financing
  ActivitiesDividend
  Payments
  (1,165)
  (1,102)Retirements
  on Long-Term Debt
  (2,425)
  (585)>Short-Term
  Borrowings (Repayments), Net
  (1,050)
  (650)Net Cash Flow Used For
  Financing Activities
  (4,640)
  (2,337)Cash Flow From Investing
  ActivitiesDrawdown
  of Tax Exempt Bonds Proceeds
  1,482
  1,654Stock
  Redemption from Associated Company
  224
  0Investment
  in Electric Plant
  (2,772)
  (3,130)Net
  Cash Flow Used For Investing Activities
  (1,066)
  (1,476)Increase/(Decrease)
  in Cash and Cash Equivalents
  (2,652)
  2,457Cash
  and Cash Equivalents at Beginning of Period
  5,956
  5,496Cash and Cash Equivalents at
  End of Period
  $    3,304
  $    7,953Change in Current Assets and
  Liabilities Providing (Utilizing)Cash From Operating
  ActivitiesAccounts
  Receivable
  $   1,102
  $   1,223Unbilled
  Revenue
  319
  42Other
  Current Assets
  (88)
  40Accounts
  Payable
  (107)
  2,417Accrued
  Employee Benefits
  (546)
  (120)Other
  Current Liabilities
  243
  71Total Change
  $      923
  $   3,673Supplemental Disclosure of
  Cash Flow Information:Cash Paid During the Period
  For:Interest
  $      565
  $      556Income
  Taxes
  $      673
  $   1,379The accompanying notes are
  an integral part of these financial statements.  NOTES
TO CONSOLIDATED STATEMENTS  1. SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES The accompanying unaudited consolidated
financial statements include the accounts of Maine & Maritimes Corporation
(the "Company" or "MAM"), its wholly-owned, regulated transmission
and distribution subsidiary, Maine Public Service Company ("MPS"), and its
unregulated energy marketing subsidiary, Energy Atlantic, LLC ("EA"). Maine & Maritimes Corporation, a holding company
organized effective June 30, 2003, owns all of the common stock of MPS. 
All of the shares of MPS common stock were converted into an equal number of
shares of MAM common stock, which are listed on the American Stock Exchange
under the symbol MAM.  The reorganization was approved by MPS's
shareholders at the annual meeting on May 30, 2003.  The U.S. Securities
and Exchange Commission ("SEC") had previously accepted MAM's S-4A Registration
Statement for registration and other appropriate state and federal regulatory
agencies issued the necessary approvals on various dates in 2003.  Amounts
shown for 2002 were reported by MPS.  Amounts that were in the first three
month period of the six-month period ending June 30, 2003 were also reported by
MPS MPS is subject to the
regulatory authority of the Maine Public Utilities Commission ("MPUC") and,
with respect to wholesale rates, the Federal Energy Regulatory Commission ("FERC"). The accompanying unaudited
consolidated financial statements should be read in conjunction with the MPS
2002 Annual Report which includes MPS's Form 10-K.  Certain financial
statement disclosures have been condensed or omitted but are an integral part
of the MPS 2002 Form 10-K.  These statements reflect all adjustments that
are, in the opinion of management, necessary to a fair statement of results for
interim periods presented.  All such adjustments are of a normal recurring
nature.  The Company's significant accounting policies are the same as
those of MPS, which are described in the Notes to Consolidated Financial
Statements of MPS's Annual Report filed with Form 10-K. For interim reporting
purposes, these same accounting policies are followed. For purposes of the statements
of consolidated cash flows, the Company considers all highly liquid securities
with a maturity, when purchased, of three months or less to be cash
equivalents. Certain reclassifications have
been made to the 2002 financial statement amounts in order to conform to the
2003 presentation.  2. ENERGY ATLANTIC (EA) EA's net income for the second
quarter of 2003 was $37,681 compared to a loss of $6,082 for the second quarter
of last year.  The increase in net income reflects increased sales due to
colder temperatures and a decrease in expenses. Energy Atlantic's sales can be classified into two general
categories: Standard Offer Service ("SOS") sales in Central Maine Power
Company's ("CMP") service territory which expired February 28, 2002, and
Competitive Energy Supply ("CES") sales to individual retail customers within
the State of Maine.  Except as stated below, the electricity for those
sales within ISO New England was provided entirely under a Wholesale Power
Sales Agreement (the "Agreement") with Engage Energy America, LLC ("Engage"),
which also expired February 28, 2002.  Under this Agreement, all revenues
from both SOS and CES sales were paid directly to an Escrow Agent that
disbursed funds in accordance with instructions from Engage. For SOS sales, EA
received reimbursement for certain expenses and a portion of the net profit
that was reported as SOS margin.  EA is currently in the process of
negotiating new wholesale power agreements in connection with future retail
sales it may make in central and southern Maine. EA has a contract for 40% of the output of the
Wheelabrator-Sherman ("W-S") energy facility for the two years beginning March
1, 2002.  The output from this take-or-pay contract amounts to
approximately 55,000 MWH annually and will be used to provide electricity for
CES sales in MPS's service territory.  This contract is a take-or-pay
contract, which carries more counterparty risk than others entered into by EA.
 To mitigate this risk, EA has entered into a contract with NB Power,
whereby NB Power will buy W-S output in excess of load requirements in the
Company's service territory at a rate indexed to the price of 3% Sulphur Max
No. 6 residential oil into New York Harbor, which is intended to reflect NB
Power's avoided cost, subject to a floor and ceiling.  Currently, all
output has been sold to CES customers, therefore limiting the risk that energy
will be sold to NB Power.  In addition, NB Power will sell electricity to
EA when load exceeds W-S output at a fixed on and off-peak rate. In addition, EA has a power
supply relationship with Duke Energy Trading and Marketing ("DETM") for
electricity in CMP's service area.  In connection with this relationship,
and certain transactions between EA and DETM, MPS provided a contractual
guarantee on behalf of EA in an aggregate amount of one million dollars
($1,000,000).  This guarantee was related specifically to the delivery
and/or receipt of electric power between EA and DETM.  This guarantee was
renewed in September 2002, for an additional year.  Effective March 21,
2003, DETM has agreed to waive this credit requirement in lieu of EA's
commitment to maintain a $1 million ($1,000,000) minimum bank account balance. The following illustrates each
type of EA's risk exposure related to these contracts for supply and sales: - Counterparty risk includes the
possibility of the other parties' failure to fulfill their contractual
obligations to EA such as: a) Deliverability risk, referring to EA
not being able to serve contracted load due to the supplier's failure to
provide energy. b) Transmission risk, indicating EA's
reliance on the utilities, such as MPS and CMP, to physically transport energy
to EA's customers. c) Credit risk exposure, depending on
EA's customers' ability to pay, which may deteriorate during a general economic
downturn or when a commercial customer experiences financial difficulty. - Market liquidity risk encompasses the
risk of being forced to buy or sell energy on the open market. This would occur
if: (1) energy is not available from W-S, NB Power or other energy supply
arrangements, while the contracted customer load must still be satisfied, or
(2) the existing customer load deteriorated and NB Power could not buy the
excess power from W-S, as contracted. - Forecasting risk exposure includes
possible inaccuracy in the estimation of energy supply requirements.  One
of EA's suppliers requires a 24-month forecast of load for each commitment to a
1 MW block of energy. Although there is no penalty for not using all of the
energy, EA is assessed a penalty for using more than the amount contracted. - Market-based cost risk is exposure to
transactions tied to market indexes, such as the arrangement to sell excess W-S
power to NB Power at a current market-indexed rate. With the expiration of EA's sales of SOS in CMP's service
territory, EA's revenues and net income have been adversely impacted.  In
2002, EA realized SOS margin in CMP's service territory of approximately $5.8
million.  The Company continues to review EA's current and future business
model, which may include a possible exit from the CES market in part or in
whole, a refinement of its market area, and/or expansion into other product and
service lines. On February 24, 2003, EA announced its intent to withdraw
from retail electricity markets in northern Maine due to concerns over a lack
of profitability in that market, the lack of price differentiated electric
products within the Maritimes and the region administered by the Northern Maine
Independent System Administrator, and an overall illiquidity of the wholesale
power market in the region, as well as other factors.  EA will continue to
serve its existing customer contracts in northern Maine until they expire by
their terms on February 28, 2004.  CES sales in northern Maine were
approximately $5 million for the year ended December 31, 2002.  EA
believes that, in addition to minimizing its risk profile, this action will
substantially relieve any underlying regulatory concerns that may exist or
arise in connection with the issue of employee sharing and energy marketing
activities conducted by EA within the Company's service territory. In connection with MPS's reorganization (discussed below in
Item 4, "Regulatory Matters,") and EA's withdrawal from retail electricity
markets in northern Maine, MPS filed with the MPUC on February 21, 2003, an
"Application for Exemption of Chapter 304" to exempt the Company and
EA from certain management restrictions that had been previously imposed to
allow EA to engage in energy marketing activities within MPS's service
territory.  A series of settlement conferences were held between the MPUC
Advisory Staff, the Office of the Public Advocate, WPS Energy Services, Inc.
and MPS and on June 24, 2003 a Stipulation was submitted by the parties to the
MPUC.  The MPUC issued an Order Approving Stipulation in this matter on
July 24, 2003 which approved a partial waiver of the requirements of Chapter
304 and resolved all issues in this matter (the "304 Order").  Under the
provisions of the 304 Order, MPS would be exempted from the employee sharing
provisions of Chapter 304 of the Commissions Rules subject to certain specified
conditions.  The exemptions and waivers granted in the 304 Order are
expressly contingent on that the condition that EA will cease marketing in
MPS's service territory effective March 1, 2003.  The 304 Order also
provides that the parties to the proceeding may revisit the matter in the event
EA should subsequently elect to re-enter the northern Maine retail electricity
market at some future time.  3. SEGMENT INFORMATION The Company operates in two segments, with MPS providing
regulated transmission and distribution services and EA performing unregulated
power marketing services as described above.  The segment activity for the
three and six months ended June 30, 2003, and 2002, is summarized in the table
below. The Company's reportable segments include the electric utility portion of the
business, consisting of MPS and its inactive wholly-owned Canadian subsidiary,
Maine and New Brunswick Electrical Power Company, Limited, ("ME&NB"), and
the energy marketing portion of the business, consisting of Energy Atlantic,
LLC. The accounting policies of the segments are the same as those described in
Note 1, "Summary of Significant Accounting Policies."  MAM did not
have any material assets or operations until it became a holding company on
June 30, 2003, and therefore, did not have any separate operating activities
through June 30, 2003.  However, MPS incurred expenses associated with the
formation of MAM, which totaled $409,000 and $587,000 for the three and six
months ended June 30, 2003, classified as unregulated operations and
maintenance.  MPS provides certain administrative support services to EA,
which are billed to that entity at cost, based on a combination of direct
charges and allocations.  The Company is organized on the basis of
products and services.  Three Months Ended

   (Dollars in Thousands)June 30, 2003
  June 30, 2002EA
  MPS
  Total Company
  EA
  MPS
  Total  CompanyOperating Revenues
  $    1,699
  $    6,322
  $    8,021
  $     1,647
  $     6,401
  $     8,048EA SOS Margin
  0
  0
  0
  5
  0
  5Total
  Revenues
  1,699
  6,322
  8,021
  1,652
  6,401
  8,053Unregulated Energy Supply
  1,399
  0
  1,399
  1,315
  0
  1,315Operations & Maintenance
  (O&M)Regulated
  0
  3,129
  3,129
  0
  2,764
  2,764Unregulated
  233
  409
  642
  343
  0
  343Amortization - Stranded Cost
  0
  2,225
  2,225
  0
  2,182
  2,182Other O&M
  19
  1,069
  1,088
  19
  900
  919Income Taxes
  20
  (212)
  (192)
  (12)
  57
  45Total
  Operating Expenses
  1,671
  6,620
  8,291
  1,665
  5,903
  7,568Operating Income
  28
  (298)
  (270)
  (13)
  498
  485Other Income &
  Deductions
  10
  23
  33
  13
  38
  51Income
  Before Interest Charges
  38
  (275)
  (237)
  0
  536
  536Interest Charges
  0
  (1)
  (1)
  6
  132
  138Net
  Income
  $         38
  $       (274)
  $      (236)
  $          
  (6)
  $        404
  $        398Total Assets
  $    6,265
  $ 127,350
  $ 133,615
  $      8,903
  $ 131,566
  $ 140,469    Six Months Ended
    (Dollars in Thousands)June 30, 2003
  June 30, 2002EA
  MPS
  Total Company
  EA
  MPS
  Total  CompanyOperating Revenues
  $   3,487
  $  15,902
  $  19,389
  $   3,047
  $  16,000
  $  19,047EA SOS Margin
  0
  0
  0
  412
  0
  412Total
  Revenues
  3,487
  15,902
  $  19,389
  3,459
  16,000
  19,459Unregulated Energy Supply
  2,893
  0
  2,893
  2,516
  0
  2,516Operations & Maintenance
  (O&M)Regulated
  0
  5,894
  5,894
  
  5,528
  5,528Unregulated
  522
  587
  1,109
  668
  
  668Amortization - Stranded Cost
  0
  4,673
  4,673
  0
  4,643
  4,643Other O&M
  34
  2,138
  2,172
  37
  1,953
  1,990Income Taxes
  16
  879
  895
  90
  1,405
  1,495Total
  Operating Expenses
  3,465
  14,171
  17,636
  3,311
  13,529
  16,840Operating Income
  22
  1,731
  1,753
  148
  2,471
  2,619Other Income &
  Deductions
  18
  (12)
  6
  16
  150
  166Income
  Before Interest Charges
  40
  1,719
  1,759
  164
  2,621
  2,785Interest Charges
  0
  55
  55
  6
  276
  282Net
  Income
  $         40
  $    1,664
  $   1,704
  $        158
  $    2,345
  $    2,503Total Assets
  $    6,265
  $127,350
  $133,615
  $     8,903
  $131,566
  $140,469  4. REGULATORY MATTERS  Maine Public Utilities Commission, Request for Approval
of Reorganization of the Company Into a Holding Company Structure, Docket No.
02-676. As reported in prior MPS quarterly reports on Form 10-Q, on
October 31, 2002, MPS filed a request for Commission approval of the formation
of a Maine-based holding company structure.   The parties settled all
issues in the proceeding, and entered a signed Stipulation formally approved by
the MPUC on March 26, 2003. Please see the text of the MPUC Order, Docket No.
2002-676 on Pages O-1 to O-21 of the Form 10-K for December 31, 2002. The
Company also filed, on April 15, 2003, a Form S-4/A Registration Statement with
the Securities and Exchange Commission for "Maine & Maritimes
Corporation" the entity designated as "HoldCo" in this
disclosure. The filing, which was made effective by the SEC on April 18, 2003,
is reviewable on the SEC's website at "http://www.sec.gov/edgar" or
on the Company's Investor Relations page at http://www.maineandmaritimes.com.  Maine Public Utilities
Commission, Request for Approval of Alternative Rate Plan. As reported in prior MPS
quarterly reports on Form 10-Q, on March 6, 2003, MPS submitted its formal
"Request for Approval of Alternate Rate Plan" ("ARP") (MPUC
Docket 2003-85). The proposal is a seven-year rate plan for its distribution
delivery services with a target implementation date on or before July 1, 2003.
The ARP is an alternative form of regulating MPS's distribution assets, similar
to the performance rate plans the MPUC has adopted for Central Maine Power
Company and Bangor Hydro-Electric Company. MPS has responded to
numerous information requests from parties that have intervened in the
proceeding.  In order to attempt to resolve the rate increase component of
the ARP filing during calendar year 2003 the Company intends to bifurcate the
ARP proceeding.  At this time the Company cannot predict the nature or the
outcome of any decision or ruling by the MPUC in this proceeding.  Maine Public Utilities
Commission Notices of Inquiry. As reported in prior MPS quarterly reports on Form 10-Q, on
February 11, 2003, the MPUC initiated a formal Notice of Inquiry
("NOI") into the status of the competitive market for electricity
supply in northern Maine (MPUC Docket No. 2003-82). The NOI is not directed at
MPS or any specific party or entity but is a general inquiry designed to gather
information about the adequacy of existing market structures, rules and laws in
light of the limited number of supplier/generator participants in the
region.  There have been no material developments in this proceeding during
this quarter.  At this time the Company cannot predict the nature or the
outcome of any finding, decision or ruling by the MPUC in this proceeding. On June 18, 2003, the MPUC also
initiated a similar Notice of Inquiry and Request for Comments concerning "Incentives
to Promote Energy Efficiency and Security of the Electric Grid" (MPUC Docket
No. 2003-423).  The Company provided comments to the MPUC on July 7,
2003.  At this time the Company cannot predict the nature or the outcome
of any finding, decision or ruling by the MPUC in this proceeding.  Federal Energy Regulatory Commission (FERC) Open Access
Transmission Tariff (OATT) Filing: As previously reported in prior MPS quarterly reports on Form 10-Q, pursuant to
Section 2.4 of the Settlement Agreement filed on June 30, 2000, in Docket No.
ER00-1053-000, and accepted by the Federal Energy Regulatory Commission (FERC)
on September 15, 2000, MPS provided parties and FERC staff on June 10, 2003 the
changed  Open Access Transmission Tariff (OATT) Formula Rate charges that
MPS proposed to apply on June 1, 2003 together with back-up materials. On June
1, 2003 the Formula Rate charges became effective subject to a refund that may
occur in connection with a settlement stipulation currently being negotiated by
the parties to the proceeding.  In general, MPS is seeking a slight
modification to its rate formula under its transmission tariff.  MPS is
currently engaged in discussions with the parties and FERC staff to resolve all
outstanding issues in the filing with the objective of reaching a settlement
agreement.  The probability of success of this collaborative effort is
unknown at this time; however the Company expects to resolve the matter during
calendar year 2003.  5. INCOME TAXES A summary of Federal and State income taxes charged to
income is presented below.  For accounting and ratemaking purposes, income
tax provisions included in Operating Expenses reflect taxes applicable to
revenues and expenses allowable for ratemaking purposes, with the exception of
Energy Atlantic activity, which is above the line and not allowable for
ratemaking purposes.  The tax effect of items not included in rate base is
allocated as Other Income (Deductions).  Three Months Ended
  Six Months EndedJune 30
  June 30,(Dollars in Thousands)
  (Dollars in Thousands)2003
  2002
  2003
  2002Current income taxes
  $
     (408)
  $ 
     (207)
  $
       750
  $ 
      998Deferred income tax
  223
  261
  175
  586Investment credits
  (8)
  (8)
  (15)
  (15)Total income taxes
  $
     (193)
  $      
  46
  $  
     910
  $
   1,569Allocated to:Operating Income- Regulated
  $  
  (212)
  $  
      57
  $ 
      879
  $
   1,405- Unregulated
  20
  (12)
  16
  90Other income
  (1)
  1
  15
  74Total
  $  
  (193)
  $ 
       46
  $  
     910
  $
   1,569 For the three months ended June
30, 2003, and 2002, the effective income tax rates were 34.8 % and 38.7%,
respectively.  The principal reasons for the effective tax rates differing
from the US federal income tax rate are flowthrough items, namely Seabrook amortization,
which is required by regulation and state income taxes. The following summarizes accumulated deferred income taxes
established on temporary differences under SFAS 109 as of June 30, 2003, and
December 31, 2002.  (Dollars in Thousands)June
  30,
  December
  31,2003
  2002Seabrook
  $
     8,334
  $   
  8,428Property
  7,101
  7,084Flexible Pricing Revenue
  514
  567Deferred Fuel
  4,825
  4,162Generating asset sale
  103
  (178)W-S Upfront Payment
  2,026
  2,315Pension and post-retirement benefits
  (666)
  (478)Other
  209
  371Net accumulated deferred income taxes
  $ 
  22,446
  $ 
  22,271  6. MAINE YANKEE As previously reported in prior
MPS quarterly reports on Form 10-Q, MPS owns 5% of the Common Stock of Maine
Yankee, which operated an 860 MW nuclear power plant (the "Plant") in
Wiscasset, Maine.  On August 6, 1997, the Board of Directors of Maine
Yankee voted to permanently cease power operations and to begin decommissioning
the Plant. Federal legislation enacted in
1987 directed the Department of Energy ("DOE") to proceed with the studies
necessary to develop and operate a permanent high-level waste (spent fuel)
repository at Yucca Mountain, Nevada.  The project has encountered delays,
and the DOE has indicated that the permanent disposal site is not expected to
open before 2010, although originally scheduled to open in 1998. In accordance with the process
set forth in the legislation, in February 2002, the Secretary of Energy
recommended the Yucca Mountain site to the President for the development of a
nuclear waste repository, and the President then recommended development of the
site to Congress.  As provided in the statutory procedure, the State of
Nevada formally objected to the site in April 2002, and in July 2002, Congress
overrode the objection. Construction of the repository requires the approval of
the Nuclear Regulatory Commission ("NRC"), upon application of the DOE, and
after a public adjudicatory hearing, as well as a second NRC approval after
completion of construction to operate the facility.  Maine Yankee cannot
predict the timing or results of those proceedings. In November 1997, the U.S. Court
of Appeals for the District of Columbia Circuit confirmed the obligation of the
DOE under the Nuclear Waste Policy Act of 1982 to take responsibility for spent
nuclear fuel from commercial reactors in January 1998.  After an
unsuccessful effort by Maine Yankee in the same court to compel the DOE to take
Maine Yankee's spent fuel, in June 1998, Maine Yankee filed a claim for money
damages in the U.S. Court of Federal Claims for the costs associate with the
DOE's default. In November 1998, the Court granted summary judgment in favor of
Maine Yankee, ruling the DOE had violated its contractual obligations, but
leaving the amount of damages incurred by Maine Yankee for later determination
by the Court.  Since then the parties have been engaged in extensive discovery
and resolution of pre-trial issues in the damages phase of the proceeding.
 Maine Yankee is pursuing its claim for determination of damages
vigorously, but cannot predict the outcome or timing of the determination. At the same time, as an interim
measure until the DOE meets its contractual obligation to dispose of Maine
Yankee's spent fuel at Yucca Mountain or elsewhere, Maine Yankee constructed an
independent spent fuel storage installation (ISFSI), utilizing dry-cask
storage, on the Plant site and is in the process of transferring the spent fuel
from the spent-fuel pool to the individual casks and the casks to the ISFSI.
 Maine Yankee's total cost of maintaining the ISFSI will be substantially
affected by heightened security costs and by the length of time it is required
to operate the ISFSI before the DOE honors its contractual obligation to take
the fuel from the site.  Maine Yankee's current decommissioning costs
estimate is based on an assumption that its operation of the ISFSI will end in
2023, but the actual period of operation and cost may vary. On January 15, 2003, Maine Yankee notified NAC International
("NAC"), the contractor responsible for providing for the fabrication of the
spent-fuel casks and transferring the fuel to the casks and the casks to the
ISFSI, that Maine Yankee was terminating its contract with NAC pursuant to the
terms of the contract. NAC had been experiencing financial difficulties and had
requested relief from the terms of the contract.  Maine Yankee believes that
NAC had also failed to perform its contractual obligations in accordance with
the terms of the contract and provide adequate assurance of its ability to do
so in the future. NAC disputed Maine Yankee's basis for terminating the
contract and served Maine Yankee with a demand to arbitrate the dispute and a
request for damages.  Maine Yankee, in turn, filed suit in the U.S.
District Court for the District of Maine against NAC, its bonding company, and
its parent guarantor, wherein Maine Yankee sought, among other things, damages
due to NAC's failure to perform.  Maine Yankee also entered into contracts
with the major subcontractors and resumed the transfer of fuel to the ISFSI
under its own management. In April 2003, after extensive negotiations, the parties entered
into a comprehensive settlement agreement resolving all the disputed issues and
providing for Maine Yankee to replace NAC in managing the completion of the
fuel-transfer work.  The settlement included a payment for $10.4 million
to Maine Yankee to compensate Maine Yankee for higher costs incurred or to be
incurred as a result of NAC's failure to perform its contractual obligations.
 The payment was not reflected in Maine Yankee's first quarter 2003,
results.  Although the NAC dispute contributed to a slowdown in the
progress of the fuel transfer work in the first quarter of 2003, since then
Maine Yankee has implemented additional efficiencies and the pace of work has
improved to a point where it has been consistently exceeding the pre-2003 pace. 
Maine Yankee believes that the settlement positions Maine Yankee to complete
the work without further undue delay or expense. The federal Low-Level Radioactive Waste Policy Amendments
Act, enacted in 1986, required states, either alone or in multi-state compacts,
to provide for the disposal of low-level radioactive waste generated within
their borders.  The states of Maine, Texas and Vermont entered into a
compact for the disposal of low-level waste over a 30 year period at a
then-planned facility in west Texas. The terms of the compact provided that the State of Maine
would contribute $25 million, payable (1) in two equal installments, the first
after ratification by Congress and the second upon commencement of operation of
the Texas facility, or (2) alternatively, if agreed by the three states, in
accordance with the schedule for repayment of bonds issued for the development
or operation of the facility.  By statute, those costs were to be
initially assessed against Maine Yankee, as the operator of a nuclear power
plant in Maine. As required by the 1986 Act, the United States Congress
ratified the compact in September 1998.  However, in October 1998, the
Texas Natural Resource Conservation Commission denied a permit for the proposed
west Texas site, and efforts to site such a facility in Texas were
suspended.  Maine Yankee is shipping its low-level waste to other
facilities licensed to accept such material. At its 2002 session the Maine
legislature enacted legislation providing for the withdrawal of the State of
Maine from the Texas compact pursuant to the terms of the compact.  The
legislation cited the 1997 closure of the Maine Yankee plant and the inability
of the State of Texas to cause a disposal facility to be built in a timely
manner under the compact as the reasons for initiating the withdrawal
process.  However, in its 2003 session the Texas legislature enacted a
bill that reactivated the process of siting a disposal facility in Texas and
provides for Texas to seek payment from Maine of $12.5 million under the
compact.  Maine Yankee believes that withdrawal from the compact by the
State of Maine is legally justified, but cannot predict the results of the
Texas legislation on the State of Maine or Maine Yankee or of any attempt by
any party to challenge the State of Maine's withdrawal from the compact or to
assess Maine Yankee for any payments under the compact. On February 28, 2003, the
Nuclear Regulatory Commission approved Maine Yankee's License Termination Plan
("LTP").  The LTP was approved without any unexpected conditions.  In
accordance with a plan approved by the Securities and Exchange Commission,
Maine Yankee has started the redemption of its Common Stock periodically
through 2008. Maine Yankee Board Meeting
  Total Shares Redeemed
  MPS Shares
  Amounts Received
  Date
  ReceivedSeptember 27, 2001
  75,200
  3,760
  $499,484
  October
  4, 2001June 27, 2002
  22,600
  1,130
  150,110
  July
  11, 2002September 26, 2002
  33,900
  1,695
  225,166
  October
  4, 2002December 18, 2002
  33,800
  1,690
  224,502
  January
  9, 2003165,500
  8,275
  $1,099,262 There have been no other material developments in connection
with this matter during the previous quarter.  7. STOCK COMPENSATION PLAN Upon approval by Maine Public Service Company's shareholders
in June 2002, MPS adopted the 2002 Stock Option Plan (the "Plan").
 Effective June 30, 2003, pursuant to the Agreement and Plan of Merger
among MPS and MAM, the outstanding shares of Common Stock, $7.00 par value, of
MPS were exchanged automatically on a share-for-share basis of Common Stock,
$7.00 par value of MAM, and MPS became a subsidiary of MAM.  Accordingly,
all stock offered under the Maine Public Service Company 2002 Stock Option Plan
will be shares of MAM Common Stock under the Maine & Maritimes Corporation
2002 Stock Option Plan. The Plan provides designated
employees of the Company and its subsidiaries with stock ownership
opportunities and additional incentives to contribute to the success of the
Company, and to attract, reward and retain employees of outstanding ability.
 The Plan is administered by the members of the Performance and
Compensation Committee of the Board, who are not employees of the Company or
any subsidiaries. The Company may grant options to its employees for up to
150,000 shares of common stock, provided that the maximum aggregate number of
shares which may be issued under the plan pursuant to incentive stock options
shall be 120,000 shares.  The exercise price for shares to be issued under
any incentive stock option shall not be less than one hundred percent (100%) of
the fair market value of such shares on the date the option is granted.
 An option's maximum term is 10 years and a three-year vesting schedule is
followed. The Company accounts for the
fair value of its grants under the plan in accordance with the expense
provisions of Statement of Financial Accounting Standards (SFAS) No. 123,
Accounting for Stock-Based Compensation.  The effect of the grants on
compensation expense for the quarter ended June 30, 2003, was immaterial. The fair value of each option
grant is estimated on the date of the grant using the Black-Scholes
option-pricing model, with the following weighted-average assumptions used for
grants: dividend yield of 4.6%; expected volatility of 20 percent, risk-free
interest rate of 3.0%; and expected lives of 7 years. A summary of the status of the Company's
stock option plan as of June 30, 2003, and changes during the quarter then
ended is presented below: Options
  Shares(000)
  Exercise
  PriceOutstanding at April 1, 2003
  5,250
  $
  30.45Granted
  0
  0Exercised
  0
  0Forfeited
  0
  0Outstanding at June 30, 2003
  5,250
  $
  30.45Options exercisable at June 30, 2003,
  0Weighted-average fair value of options granted to date
  $4.57  The following table summarizes information
about fixed stock options outstanding at June 30, 2003: Options
  Outstanding
  Options ExercisableRange of Exercise
  Prices
  Number
  Outstanding at 06/30/03
  Weighted-AverageRemaining Contractual Life
  Weighted
  AverageExercise Price
  Number
  Exercisable at 06/30/03
  Weighted-AverageExercise Price$ 30.45
  5,250
  9.0
  years
  $
  30.45
  0
  0  8. NEW ACCOUNTING
PRONOUNCEMENTS In June 2001, the Financial Accounting
Standards Board ("FASB") issued Statement of Financial Accounting Standards No.
143 ("FAS 143"), "Accounting for Asset Retirement Obligations."
 This Statement addresses financial accounting and reporting for
obligations associated with the retirement of tangible long-lived assets and
associated asset retirement costs.  This Statement was effective for the
Company beginning January 1, 2003.  The Company currently records an asset
retirement obligation related to the decommissioning of Maine Yankee in its
financial statements.  The adoption of this statement did not have a
material impact on the Company's financial position or results of operations. On January 17, 2003, the
Financial Accounting Standards Board issued FASB Interpretation No. 46, ("FIN
46"), "Consolidation of Variable Interest Entities."  The
provisions have far-reaching effects and will be the guidance that determines
(1) whether consolidation is required under the "controlling financial
interest" model of Accounting Research Bulletin No. 51 ("ARB 51"),
"Consolidated Financial Statements" (or other existing authoritative
guidance) or, alternatively, (2) whether the variable interest model under FIN
46 should be used to account for existing and new entities.  The transitional
disclosures are required for financial statements issued after February 1,
2003. FIN 46 is effective and required to be applied to pre-existing entities
as of the beginning of the first interim period beginning after June 15, 2003.
 The Company does not expect the adoption of this statement will have a
material impact on the Company based on its current structure. In November 2002, the FASB
issued FIN No. 45, ("FIN 45") "Guarantor's Accounting and Disclosure
Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of
Others an interpretation of FASB Statements No. 5, 57, and 107 and rescission
of FASB Interpretation No. 34." FIN 45 requires that a guarantor
recognize, at the inception of a guarantee, a liability for the fair value of
the obligation undertaken by issuing the guarantee.  The Interpretation
also requires additional disclosures to be made by a guarantor in its interim
and annual financial statements about its obligations under certain guarantees
it has issued.  The accounting requirements for the initial recognition of
guarantees are applicable on a prospective basis for guarantees issued or
modified after December 31, 2002.  The disclosure requirements are
effective for all guarantees outstanding, regardless of when they were issued
or modified, for financial statements for interim or annual periods ending
after December 15, 2002.  The adoption of the recognition provisions of
FIN 45 did not have any impact on the Company's financial condition or results
of operations on the Company's consolidated financial statements.  The
following is a summary of our agreements that management has determined are
within the scope of FIN 45. As permitted under Maine law, the Company has agreements
that indemnify the Company's officers and directors for certain events or
occurrences while the officer or director serves in such a capacity.  The
term of the indemnification period is for the officer's or director's lifetime.
 The maximum potential amount of future payments we could be required to make
under these indemnification agreements is not limited under the terms of the
agreements; however, we have a director and officer insurance policy that
limits the Company's exposure and enables the Company to recover a portion of
any future amounts paid.  As a result of this insurance policy coverage,
the Company believes the estimated fair value of these indemnification
agreements is minimal.  All of these indemnification agreements were
grandfathered under the provisions of FIN 45, as they were in effect at MPS prior
to December 31, 2002.  Accordingly, the Company has no liabilities
recorded for these agreements as of June 30, 2003. On April 30, 2003, the FASB issued FASB Statement No. 149
("FAS 149"), "Amendment of Statement 133 on Derivative Instruments and Hedging
Activities."  FAS 149 amends and clarifies the accounting guidance on (1)
derivative instruments (including certain derivative instruments embedded in
other contracts) and (2) hedging activities that fall within the scope of FASB
Statement No. 133 ("FAS 133"), Accounting for Derivative Instruments and
Hedging Activities.  FAS 149 amends FAS 133 to reflect decisions that were
made:  as part of the process undertaken by the Derivatives Implementation
Group ("DIG"), which necessitated amending FAS 133; in connection with other
projects dealing with financial instruments; and regarding implementation
issues related to the application of the definition of a derivative.  FAS
149 also amends certain other existing pronouncements, which will result in more
consistent reporting of contracts that are derivatives in their entirety or
that contain embedded derivatives that warrant separate accounting.  FAS
149 is effective (1) for contracts entered into or modified after June 30,
2003, with certain exceptions, and (2) for hedging relationships designated
after June 30. The guidance is to be applied prospectively.  The adoption
of this statement did not have a material impact on the Company's financial
position or results of operations. On May 15, 2003, the FASB issued
FASB Statement No. 150 ("FAS 150"), "Accounting for Certain Financial
Instruments with Characteristics of both Liabilities and Equity."  FAS 150
changes the accounting for certain financial instruments that, under previous
guidance, could be classified as equity or "mezzanine" equity, by now requiring
those instruments to be classified as liabilities (or assets in some
circumstances) in the statement of financial position.  FAS 150 requires
disclosure regarding the terms of those instruments and settlement
alternatives.  FAS 150 affects an entity's classification of the following
freestanding instruments: mandatorily redeemable instruments; financial
instruments to repurchase an entity's own equity instruments; financial
instruments embodying obligations that the issuer must or could choose to
settle by issuing a variable number of its shares or other equity instruments
based solely on (a) a fixed monetary amount known at inception or (b) something
other than changes in its own equity instruments.  FAS 150 does not apply
to features embedded in a financial instrument that is not a derivative in its
entirety.  The guidance in FAS 150 is generally effective for all
financial instruments entered into or modified after May 31, 2003, and is
otherwise effective at the beginning of the first interim period beginning
after June 15, 2003.  For private companies, mandatorily redeemable
financial instruments are subject to the provisions of FAS 150 for the fiscal
period beginning after December 15, 2003.  The Company does not expect the
adoption of this statement will have a material impact on the Company based on
its current structure.  9. COMMITMENTS AND
CONTINGENCIES The Company does not have any
variable interest entities as defined by FIN 46 above.  Except for
operating leases accounted for in accordance with FASB 13 for office and field
equipment, vehicles, and computer hardware and software, the Company has no
other form of off-balance sheet arrangements.  The following summarizes
payments for leases for a period in excess of one year for the three months
ended June 30, 2003, and 2002:  (Dollars in Thousands)Six Months EndedJune 30,2003
  2002Office Equipment
  $     
  2
  $     
  2Vehicles
  1
  1Computer Hardware and Software
  29
  25Rights of Way
  29
  28Field Equipment
  20
  10Total
  $   
  81
  $ 
   66  Form
10-Q PART
1. FINANCIAL INFORMATION  Item 2. Management's Analysis
of Quarterly Income Statements  Forward-Looking Statements The discussion below may contain "forward-looking
statements" as defined in the Private Securities Litigation Reform Act of
1995, related to expected future performance of our plans and objectives, such
as expected future revenues from Energy Atlantic. There can be no assurance
that actual results will not materially differ from expectations.  Factors
that could cause actual results to differ materially from our projections
include, among other matters, electric utility restructuring; future economic
conditions; changes in tax rates; interest rates or rates of inflation;
developments in our legislative, regulatory, and competitive environment; and
the decommissioning cost of Maine Yankee.  Results of Operations For the second quarter of 2003,
the Company earned revenue from the transmission and distribution (T&D) operations
of Maine Public Service Company, as well as the activities of its wholly-owned
unregulated marketing subsidiary, Energy Atlantic, LLC (EA).  MPS's
wholly-owned unregulated Canadian subsidiary, Maine and New Brunswick
Electrical Power Company, Limited (ME&NB) is inactive at this time. For
purposes of the discussion below, ME&NB results, if any, are included under
the heading of "Core T&D" below. Net income and earnings per
share for the three months ended June 30, 2003, along with the corresponding
information for same period of the previous year are as follows: (Dollars in Thousands)Three Months EndedJune 30,2003
  2002Net IncomeMPS Core T&D
  $    (274)
  $    404EA
  38
  (6)Total Company
  $    (236)
  $    398Earnings Per ShareTotal Company
  $    
  (.15)
  $   
   .25   The net loss for the second quarter of 2003, was $236,000
compared to net income of $398,000 for the second quarter of 2002.  MPS's
Core T&D incurred a loss in the second quarter of 2003, of $274,000, $.17
per share, as described in more detail below, compared to net income of
$404,000, $.25 per share, for the same period in 2002.  Energy Atlantic
contributed net income of $38,000, $.02 per share, while EA incurred a loss of
$6,000 in the second quarter of 2002. Earnings per share for the quarter ended June 30, 2003, was
$.40 per share less than the same quarter in 2002.  Stockholders of MPS
approved the reorganization and formation of MAM at the annual stockholders'
meeting held on May 30, 2003.  Expenses for various regulatory approvals
and organizational expense associated with the formation of MAM reduced
earnings by $.23 per share.  Rate filings with the MPUC and the FERC,
advisory services concerning the long-term financial strategies of the Company,
and ongoing costs associated with Sarbanes-Oxley compliance decreased second
quarter 2003, earnings by $.11 per share compared to the same quarter of
2002.  A decrease in wheeling revenues collected from entities exporting
power off the MPS system and an increase in depreciation expenses decreased earnings
by an additional $.08 per share.  These decreases were offset by the
aforementioned increase in EA earnings of $.02 per share.  Consolidated operating revenues
for the quarters ended June 30, 2003, and 2002, are as follows: 2003
  2002(Dollars in Thousands)
  $
  MWH
  $
  MWHMaine Public Service (MPS)- Retail
  $
  6,429
  128,918
  $ 
  6,226
  127,014- Other Revenues
  (107)
  0
  175
  0Total Regulated
  6,322
  128,918
  6,401
  127,014Energy Atlantic, LLC (EA)- Competitive Energy Supply
  1,675
  31,209
  1,647
  30,312- Wholesale and Standard Offer
  Margin
  24
  571
  5
  1,690Total Unregulated
  1,699
  31,780
  1,652
  32,002Totals
  $
  8,021
  160,698
  $ 
  8,053
  159,016  MPS retail sales increased by
1.5% (1,904 MWH).  This is due to increases in sales to residential customers
of 2.4% (949 MWH), and to medium and small commercial customers of 3.4% (1,516
MWH) and offset by a reduction to large commercial customers of 1.3% (559 MWH),
principally the closing of Maine Frozen Foods late in 2002.  The $282,000
decrease in Other Revenues is due primarily to a decrease in unbilled revenue,
as well as reduced wheeling revenues associated with the closure of the Boralex
Ashland generating plant. EA's revenues increased by
$47,000, or 2.9%, due to an increase in residential sales primarily in northern
Maine.  During the second quarter of 2003, EA had a limited amount of
wholesale sales, while the Standard Offer Service margin in the second quarter
reflected an adjustment for activity relating to SOS service in CMP's territory
that expired on February 28, 2002.  For additional information on EA, see
the Energy Atlantic Section of this Form 10-Q. For the quarters ended June 30,
2003, and 2002, total operating expenses were $7,882,000 and $7,568,000
respectively.  Energy supply expenses for EA were as follows: 2003
  2002(Dollars in Thousands)
  $
  MWH
  $
  MWHEnergy Supply - UnregulatedEA Competitive Energy Supply
  1,375
  31,209
  1,315
  30,312EA Standard Offer Service
  0
  0
  0
  1,690EA Wholesale
  24
  571
  0
  0Total
  $ 
  1,399
  31,780
  $
  1,315
  32,002  With the start of retail
competition on March 1, 2000, EA began selling to retail customers, and MPS
itself now provides transmission and distribution (T&D or delivery)
services only, no longer purchasing or generating energy supply for its
customers.  Compared to the second quarter of 2002, CES purchases by EA in
the second quarter of 2003, increased by 897 MWH, resulting in an increase in
CES energy supply expenses of $60,000.  EA purchased 571 MWH of wholesale
energy, valued at $24,000, which was subsequently sold to ISO New England. MPS's and EA's T&D
operation and maintenance expenses, as well as stranded costs for the quarters
ended June 30, 2003, and June 30, 2002, are as follows: Three Months EndedJune 30, 2003
  June 30, 2002
  Increase(Decrease)Operation and Maintenance - Regulated (MPS)Transmission and Distribution
  $     
  728
  $     
  765
  $     
  (37)Customer Accounting and General
  Administrative
  2,401
  1,999
  402Regulated O & M
  3,129
  2,764
  365Operation and Maintenance -
  Unregulated (MPS)
  409
  0
  (409)Operation and Maintenance -
  Unregulated (EA)
  233
  343
  (110)Total Operation and Maintenance
  $ 
  3,771
  $ 
  3,107
  $   
  664Stranded CostsWheelabrator-Sherman
  $ 
  2,246
  $ 
  2,039
  $   
  207Maine Yankee
  715
  763
  (48)Seabrook
  277
  277
  0Deferred Fuel and Special
  Discounts
  (1,013)
  (253)
  (760)Amortization of Gain from Asset
  Sale
  0
  (644)
  644Total Stranded Costs
  $ 
  2,225
  $ 
  2,182
  $     
  43  MPS's regulated operating and maintenance expenses increased
by $365,000 for the second quarter of 2003, compared to the same period last
year.  Transmission and distribution expenses decreased by $37,000 from
$765,000 for the second quarter of 2002, to $728,000 for the second quarter of
2003, principally due to reduction in contractors used for tree trimming. 
For the quarters ended June 30, 2003, and 2002, customer accounting and general
administrative expenses were $2,401,000 and $1,999,000, respectively.  The
$402,000 increase reflected the additional costs associated with rate filings
at the MPUC and the FERC, advisory services concerning the long-term financial
strategies of MPS, and on-going costs associated with Sarbanes-Oxley
compliance. Operation and maintenance expenses decreased for EA by
$110,000, to $233,000 from $343,000 for the second quarter of 2003, compared to
the same quarter of 2002.  This decrease is principally attributable to
the reduction in employees and the resulting reduction in salaries and
benefits.  During the second quarter of 2003, MPS incurred $409,000 in
expenses associated with the formation of MAM. MPS recognized $2,225,000 of stranded costs in the second
quarter of 2003, compared to $2,182,000 in the second quarter of 2002. 
MPS continues to purchase power from Wheelabrator-Sherman (W-S) under an
agreement that expires in 2006, at prices above current market
conditions.  Beginning on March 1, 2000, in accordance with the MPUC's
treatment of W-S as stranded costs as a result of competitive bidding, the
output from W-S is sold to the successful bidder, and the above-market amount
is included in stranded cost amortization rather than energy supply.  The
increase in amortization of stranded costs of $43,000 reflects an increase in
net W-S costs of $207,000, a $48,000 decrease in Maine Yankee decommissioning
expense, a $760,000 decrease in deferred fuel and special discounts recognized
in current rate recovery, and a $644,000 increase for the recognition of the
generation asset sale.  Energy Atlantic Operations EA's net income for the second
quarter of 2003 was $37,681 compared to a loss of $6,082 for the second quarter
of last year.  The increase in net income reflects increased sales due to
colder temperatures and a decrease in expenses. Energy Atlantic's sales can be classified into two general
categories: Standard Offer Service ("SOS") sales in Central Maine Power
Company's ("CMP") service territory which expired February 28, 2002, and
Competitive Energy Supply ("CES") sales to individual retail customers within
the State of Maine.  Except as stated below, the electricity for those
sales within ISO New England was provided entirely under a Wholesale Power
Sales Agreement (the "Agreement") with Engage Energy America, LLC ("Engage"),
which also expired February 28, 2002.  Under this Agreement, all revenues
from both SOS and CES sales were paid directly to an Escrow Agent that
disbursed funds in accordance with instructions from Engage. For SOS sales, EA
received reimbursement for certain expenses and a portion of the net profit
that was reported as SOS margin.  EA is currently in the process of
negotiating new wholesale power agreements in connection with future retail
sales it may make in central and southern Maine. EA has a contract for 40% of the output of the
Wheelabrator-Sherman ("W-S") energy facility for the two years beginning March
1, 2002.  The output from this take-or-pay contract amounts to
approximately 55,000 MWH annually and will be used to provide electricity for
CES sales in MPS's service territory.  This contract is a take-or-pay
contract, which carries more counterparty risk than others entered into by EA.
 To mitigate this risk, EA has entered into a contract with NB Power,
whereby NB Power will buy W-S output in excess of load requirements in the
Company's service territory at a rate indexed to the price of 3% Sulphur Max
No. 6 residential oil into New York Harbor, which is intended to reflect NB
Power's avoided cost, subject to a floor and ceiling.  Currently, all
output has been sold to CES customers, therefore limiting the risk that energy
will be sold to NB Power.  In addition, NB Power will sell electricity to
EA when load exceeds W-S output at a fixed on and off-peak rate. In addition, EA has a power supply
relationship with Duke Energy Trading and Marketing ("DETM") for
electricity in CMP's service area.  In connection with this relationship,
and certain transactions between EA and DETM, MPS provided a contractual
guarantee on behalf of EA in an aggregate amount of one million dollars
($1,000,000).  This guarantee was related specifically to the delivery
and/or receipt of electric power between EA and DETM.  This guarantee was
renewed in September 2002, for an additional year.  Effective March 21,
2003, DETM has agreed to waive this credit requirement in lieu of EA's
commitment to maintain a $1 million ($1,000,000) minimum bank account balance. The following illustrates each
type of EA's risk exposure related to these contracts for supply and sales: - Counterparty risk includes the
possibility of the other parties' failure to fulfill their contractual
obligations to EA such as: a) Deliverability risk, referring to EA
not being able to serve contracted load due to the supplier's failure to
provide energy. b) Transmission risk, indicating EA's
reliance on the utilities, such as MPS and CMP, to physically transport energy
to EA's customers. c) Credit risk exposure, depending on
EA's customer's ability to pay, which may deteriorate during a general economic
downturn or when a commercial customer experiences financial difficulty. - Market liquidity risk encompasses the
risk of being forced to buy or sell energy on the open market. This would occur
if: (1) energy is not available from W-S, NB Power or other energy supply
arrangements, while the contracted customer load must still be satisfied, or
(2) the existing customer load deteriorated and NB Power could not buy the
excess power from W-S, as contracted. - Forecasting risk exposure includes
possible inaccuracy in the estimation of energy supply requirements.  One
of EA's suppliers requires a 24-month forecast of load for each commitment to a
1 MW block of energy. Although there is no penalty for not using all of the
energy, EA is assessed a penalty for using more than the amount contracted. - Market-based cost risk is exposure to
transactions tied to market indexes, such as the arrangement to sell excess W-S
power to NB Power at a current market-indexed rate. With the expiration of EA's sales of SOS in CMP's service
territory, EA's revenues and net income have been adversely impacted.  In
2002, EA realized SOS margin in CMP's service territory of approximately $5.8
million.  The Company continues to review EA's current and future business
model, which may include a possible exit from the CES market in part or in
whole, a refinement of its market area, and/or expansion into other product and
service lines.  On February 24, 2003, EA announced its intent to withdraw
from retail electricity markets in northern Maine due to concerns over a lack
of profitability in that market, the lack of price differentiated electric
products within the Maritimes and the region administered by the Northern Maine
Independent System Administrator, and an overall illiquidity of the wholesale
power market in the region, as well as other factors.  EA will continue to
serve its existing customer contracts in northern Maine until they expire by
their terms on February 28, 2004.  CES sales in northern Maine were
approximately $5 million in 2002.  EA believes that, in addition to
minimizing its risk profile, this action will substantially relieve any
underlying regulatory concerns that may exist or arise in connection with the
issue of employee sharing and energy marketing activities conducted by EA
within the Company's service territory. In connection with MPS's reorganization (discussed below in
Item 4, "Regulatory Matters,") and EA's withdrawal from retail
electricity markets in northern Maine, MPS filed with the MPUC on February 21, 2003,
an "Application for Exemption of Chapter 304" to exempt the Company
and EA from certain management restrictions that had been previously imposed to
allow EA to engage in energy marketing activities within MPS's service
territory.  A series of settlement conferences were held between the MPUC
Advisory Staff, the Office of the Public Advocate, WPS Energy Services, Inc.
and MPS and on June 24, 2003 a Stipulation was submitted by the parties to the
MPUC.  The MPUC issued an Order Approving Stipulation in this matter on
July 24, 2003 which approved a partial waiver of the requirements of Chapter
304 and resolved all issues in this matter (the "304 Order").  Under the
provisions of the 304 Order, MPS would be exempted from the employee sharing
provisions of Chapter 304 of the Commissions Rules subject to certain specified
conditions.  The exemptions and waivers granted in the 304 Order are
expressly contingent on that the condition that EA will cease marketing in
MPS's service territory effective March 1, 2003.  The 304 Order also
provides that the parties to the proceeding may revisit the matter in the event
EA should subsequently elect to re-enter the northern Maine retail electricity
market at some future time.  Liquidity For the first six months of 2003, net cash flows from
operating activities were $3,054,000 with net income of $1,704,000.  The
deferral of $2,224,000 of current Wheelabrator-Sherman costs associated with
MPS's stranded cost recovery, previously approved by the MPUC, accounted for
most of the decrease in operating cash flows.  During the first six months
of 2003, scheduled sinking fund payments reduced long-term debt by $2,425,000
and short-term debt payments totaled $1,050,000.  On February 25, 2003,
the MPUC granted MPS the right to participate in a $4.0 million inter-company
revolving credit agreement with EA.  As of June 30, 2003, MPS had an
outstanding balance of $2.5 million under this inter-company loan
agreement.  During the first six months of 2003, MPS invested $2,772,000
in electric plant with $1,482,000 withdrawn from the trust account for the
tax-exempt bonds.  In addition, MPS received $224,000 for the partial
redemption of its Maine Yankee Common Stock, and MPS paid its stockholders
$1,165,000 in dividends. Net cash flows from operating activities were $6,270,000 for
the first six months of 2002, while net income was $2,503,000.  For the
first six months of 2002, $1,689,000 of the gain from the 1999 sale of
generating assets was recognized and $1,005,000 of the 2000 NEIL insurance
refund from Maine Yankee did not contribute to current operating cash
flows.  An increase in current assets and liabilities, principally
collections by EA from the escrow account for Standard Offer Service in CMP's
territory, as more fully explained in the EA section above, increased operating
cash flow by $3,673,000.  For the period, MPS paid $1,102,000 in
dividends, paid scheduled sinking fund payments of $585,000, and reduced
short-term debt by $650,000.  During the first six months of 2002, $3,130,000
was invested in electric plant, and $1,654,000 was withdrawn from the
tax-exempt trust account for qualifying facilities. Revolving Credit Agreement and
Letters of Credit Extensions On May 23, 2002, MPS's $6
million revolving credit agreement with two participating banks was extended
until June 8, 2004. The agreement contains certain restrictive covenants
including interest coverage tests and debt-to-equity ratios.  As of June
30, 2003, MPS was in compliance with these covenants. The Maine Public Utility
Financing Bank (MPUFB) has issued its tax-exempt bonds on behalf of MPS for the
construction of qualifying distribution property.  Originally issued for
$15 million and reduced with generating asset sale proceeds, the 1996 Refunding
Series had $13.6 million outstanding at June 30, 2003, and is due in 2021. On
October 19, 2000, the 2000 Series of bonds were issued in the amount of $9
million with these bonds due in 2025.  The proceeds of the 2000 Series
were placed in trust to be drawn down for the reimbursement of issuance costs
and for the construction of qualifying distribution property and, as of June
30, 2003, approximately $0.6 million is available.  For both tax-exempt
bond series, a long-term note was issued under a loan agreement between MPS and
the MPUFB with MPS agreeing to make payments to the MPUFB for the principal and
interest on the bonds.  Concurrently, pursuant to a letter of credit and
reimbursement agreement, the Bank of New York separately issued its direct pay
letters of credit (LC's) for the benefit of the holders of each series of
bonds.  Both LC's were due to expire in June 2002, and were extended to
June 8, 2004.  In addition, MPS issued $14.4 million in Second Mortgage
Bonds due 2021, to secure its obligations under the letter of credit and
reimbursement agreement for the 1996 Refunding Series, replacing $15.875
million of second mortgage bonds issued in 1996 that were due in June 2002.  Item 3. Quantitative and
Qualitative Disclosures about Market Risk (a) The Company has interest
rate risk with three variable rate debt issues of the regulated business (MPS)
as of June 30, 2003, for purposes other than trading.  These issues are
discussed in detail in MPS's 2002 Annual Report, which includes MPS's 2002 Form
10-K. The discussion occurs in Note 11, "SFAS No. 133", of the Notes
to Consolidated Financial Statements. (b) The Company's unregulated
energy marketing subsidiary, Energy Atlantic, LLC (EA) is engaged in retail and
wholesale energy transactions for purposes other than trading.  This
activity exposes EA to a number of risks such as counterparty, market
liquidity, forecasting, deliverability, transmission, volumetric, market-based
cost and credit risk as noted above. EA seeks to assure that risks are
identified, evaluated and actively managed.  Item 4. Controls and Procedures (a) Evaluation of Disclosure
Controls and Procedures The Company's President and
Chief Executive Officer and Senior Vice President, Chief Financial Officer and
Treasurer have implemented new disclosure controls and procedures.  Based
on their evaluation of these disclosure controls and the procedures, as of the
end of the period covered by this Form 10Q, as evidenced by the certifications
appearing at the end of this Form 10-Q, the aforementioned officers have
concluded that the controls are working effectively. (b) Changes in Internal Control
over Financial Reporting There have not been any changes
in the Company's internal control over financial reporting that occurred during
the Company's most recent fiscal quarter that have materially affected, or are
reasonably likely to materially affect, the Company's internal control over
financial reporting, or in other factors that could significantly offset
 this internal control.  There were also no corrective actions with
regard to significant deficiencies and material weaknesses.  PART II.  OTHER
INFORMATION Item 1. Legal Proceedings  (a) Maine Public Utilities Commission, Request for Approval
of Reorganization of the Company into a Holding Company Structure, Docket No.
02-676. As reported in prior MPS quarterly reports on Form 10-Q, on
October 31, 2002, MPS filed a request for Commission approval of the formation
of a Maine-based holding company structure.   The parties settled all
issues in the proceeding, and entered a signed Stipulation formally approved by
the MPUC on March 26, 2003. Please see the text of the MPUC Order, Docket No.
2002-676 on Pages O-1 to O-21 of the Form 10-K for December 31, 2002. The
Company also filed, on April 15, 2003, a Form S-4/A Registration Statement with
the Securities and Exchange Commission for "Maine & Maritimes
Corporation" the entity designated as "HoldCo" in this disclosure.
The filing, which was made effective by the SEC on April 18, 2003, is
reviewable on the SEC's website at "http://www.sec.gov/edgar" or on
the Company's Investor Relations page at http://www.maineandmaritimes.com.  (b)Maine Public Utilities
Commission, Request for Approval of Alternative Rate Plan. As reported in prior MPS quarterly reports on Form 10-Q, on
March 6, 2003, MPS submitted its formal "Request for Approval of
Alternate Rate Plan" ("ARP") (MPUC Docket 2003-85). The proposal is a
seven-year rate plan for its distribution delivery services with a target
implementation date on or before July 1, 2003. The ARP is an alternative form
of regulating MPS's distribution assets, similar to the performance rate plans
the MPUC has adopted for Central Maine Power Company and Bangor Hydro-Electric
Company. MPS has responded to numerous information requests from parties
that have intervened in the proceeding.  In order to attempt to resolve
the rate increase component of the ARP filing during calendar year 2003 the
Company intends to bifurcate the ARP proceeding.  At this time the Company
cannot predict the nature or the outcome of any decision or ruling by the MPUC
in this proceeding.  (c) Maine Public Utilities Commission Notices of Inquiry. As reported in prior MPS quarterly reports on Form 10-Q, on
February 11, 2003, the MPUC initiated a formal Notice of Inquiry ("NOI") into
the status of the competitive market for electricity supply in northern Maine
(MPUC Docket No. 2003-82). The NOI is not directed at MPS or any specific party
or entity but is a general inquiry designed to gather information about the
adequacy of existing market structures, rules and laws in light of the limited
number of supplier/generator participants in the region.  There have been
no material developments in this proceeding during this quarter.  At this
time the Company cannot predict the nature or the outcome of any finding,
decision or ruling by the MPUC in this proceeding. On June 18 2003, the MPUC also
initiated a similar Notice of Inquiry and Request for Comments concerning
"Incentives to Promote Energy Efficiency and Security of the Electric Grid"
(MPUC Docket No. 2003-423).  The Company provided comments to the MPUC on
July 7, 2003.  At this time the Company cannot predict the nature or the
outcome of any finding, decision or ruling by the MPUC in this proceeding.  (d)Federal Energy
Regulatory Commission (FERC) Open Access Transmission Tariff (OATT) Filing. As previously reported in prior MPS quarterly reports on
Form 10-Q, pursuant to Section 2.4 of the Settlement Agreement filed on June
30, 2000, in Docket No. ER00-1053-000, and accepted by the Federal Energy
Regulatory Commission ("FERC") on September 15, 2000, MPS provided parties and
FERC staff on June 10, 2003 the changed  Open Access Transmission Tariff
("OATT") Formula Rate charges that MPS proposed to apply on June 1, 2003
together with back-up materials. On June 1, 2003 the Formula Rate charges
became effective subject to a refund that may occur in connection with a
settlement stipulation currently being negotiated by the parties to the
proceeding.  In general, MPS is seeking a slight modification to its rate
formula under its transmission tariff.  MPS is currently engaged in
discussions with the parties and FERC staff to resolve all outstanding issues
in the filing with the objective of reaching a settlement agreement.  The
probability of success of this collaborative effort is unknown at this time;
however the Company expects to resolve the matter during calendar year 2003.  Item 2. Changes in Securities All outstanding shares of
Common Stock of the Company outstanding as of July 1, 2003, were issued on June
30, 2003, pursuant to the reorganization, in exchange for the outstanding shares
of common stock of MPS.  Item 3. Defaults upon Senior
Securities None  Item 4. Submission of Matters
to a Vote of Security Holders At the 2003, Annual Meeting of the Stockholders of Maine
Public Service Company held May 30, 2003, two matters were voted upon. First was the uncontested election of the following
directors for the designated terms, each of whom received the following votes: Nominees for terms ending in 2006
  For
  Against
  Non-votes and
  AbstentionsRobert E. Anderson
  1,400,214
  20,466
  153,642Michael W. Caron
  1,397,373
  23,307
  153,642Nathan L. Grass
  1,398,773
  21,907
  153,642Nominees for term ending in 2004David N. Felch
  1,399,266
  21,414
  153,642 Second was the approval of the agreement and plan of merger and reorganization
to create a holding company structure under Maine & Maritimes Corporation
with the following recorded vote: For
  Against
  Non-votes and
  AbstentionsApproval of the Agreement and Plan of Merger and
  Reorganization
  898,535
  160,464
  515,323 Of the total shares eligible to vote, 57.07% voted in favor
of the proposal.  Item 5. Other Information None  Item 6. Exhibits and Reports on
Form 8-K The following Forms 8-K were filed for Maine Public Service
Company: June 2, 2003, - Reporting on the votes at the Annual Meeting
of Stockholders held on May 30, 2003, approving the reorganization into a
holding company and the election of four directors, as described in Part II,
Item 4 above; the declaration of the quarterly dividend payable July 1, 2003;
the election of officers; the resignation of J. Gregory Freeman and the
retirement of J. Paul Levesque from the Board of Directors. July 2, 2003, - Reporting on the reorganization of the
Company into a holding company, Maine & Maritimes Corporation and providing
the Interim Report to Stockholders of Maine & Maritimes Corporation dated
July 1, 2003. The following Forms 8-K were filed for Maine & Maritimes
Corporation: June 4, 2004 - Reporting the vote at the Maine Public
Service Company Stockholders' Annual Meeting held on May 30, 2003, approving
the reorganization into a holding company. July 1, 2003, - Reporting on
the reorganization of Maine Public Service Company into a holding company,
Maine & Maritimes Corporation and providing the Interim Report to
Stockholders.  Exhibit 31 Rule 13a-14(a)/15d-14(a) Certifications. Exhibit 32 Section 1350
Certification.  SIGNATURE Pursuant to the requirements of
the Securities Exchange Act of 1934, the registrant has duly caused this report
to be signed on its behalf by the undersigned thereunto duly authorized. MAINE & MARITIMES
CORPORATION 
(Registrant) Date: August 14, 2003, /s/Larry E. LaPlante
Larry E. LaPlante
Vice President, Controller and Chief Accounting Officer CERTIFICATIONS Exhibit 31 Rule 13a-14(a)/15d-14(a) Certifications I, J. Nicholas Bayne, certify
that: 1. I have reviewed this
quarterly report on Form 10-Q of Maine & Maritimes Corporation (the
registrant); 2. Based on my knowledge, this
quarterly report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light
of the circumstances under which such statements were made, not misleading with
respect to the period covered by this report; 3. Based on my knowledge, the
financial statements, and other financial information included in this
quarterly report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report; 4. The registrant's other
certifying officer and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e) for the registrant and we have: (a) Designed such disclosure controls
and procedures, or caused such disclosure controls and procedures to be
designed under our supervision,  to ensure that material information
relating to the registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in
which this quarterly report is being prepared; (b) Evaluated
the effectiveness of the registrant's disclosure controls and procedures, and
presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this
report based on our evaluation; and (c) Disclosed in this report any change
in the registrant's internal control over financial reporting that occurred
during the registrant's most recent fiscal quarter (the registrant's fourth
fiscal quarter in the case of an annual report) that has materially affected,
or is reasonably likely to materially affect, the registrant's internal control
over financial reporting; and 5. The registrant's other
certifying officer and I have disclosed, based on our most recent evaluation,
to the registrant's auditors and the audit committee of the registrant's board
of directors: (a) All significant deficiencies and
material weaknesses in the design or operation of internal control over
financial reporting, which are reasonably likely to adversely affect the
registrant's ability to record, process, summarize and report financial
information; and (b) Any fraud, whether or not material,
that involves management or other employees who have a significant role in the
registrant's internal control over financial reporting.  Dated: August 14, 2003 /s/J. Nicholas Bayne
J. Nicholas Bayne
President and Chief Executive Officer I, Kurt A. Tornquist, certify
that: 1. I have reviewed this
quarterly report on Form 10-Q of Maine & Maritimes Corporation (the
registrant); 2. Based on my knowledge, this
quarterly report does not contain any untrue statement of a material fact or
omit to state a material fact necessary to make the statements made, in light
of the circumstances under which such statements were made, not misleading with
respect to the period covered by this report; 3. Based on my knowledge, the
financial statements, and other financial information included in this
quarterly report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report; 4. The registrant's other
certifying officer and I are responsible for establishing and maintaining
disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e)
and 15d-15(e) for the registrant and we have: (a) Designed such disclosure controls
and procedures, or caused such disclosure controls and procedures to be
designed under our supervision,  to ensure that material information
relating to the registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during the period in
which this quarterly report is being prepared; (b) Evaluated
the effectiveness of the registrant's disclosure controls and procedures, and
presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this
report based on our evaluation; and (c) Disclosed in this report any change
in the registrant's internal control over financial reporting that occurred
during the registrant's most recent fiscal quarter (the registrant's fourth
fiscal quarter in the case of an annual report) that has materially affected,
or is reasonably likely to materially affect, the registrant's internal control
over financial reporting; and 5. The registrant's other
certifying officer and I have disclosed, based on our most recent evaluation,
to the registrant's auditors and the audit committee of the registrant's board
of directors: (a) All significant deficiencies and
material weaknesses in the design or operation of internal control over
financial reporting, which are reasonably likely to adversely affect the
registrant's ability to record, process, summarize and report financial
information; and (b) Any fraud, whether or not material,
that involves management or other employees who have a significant role in the
registrant's internal control over financial reporting. Dated: August 14, 2003 /s/Kurt A. Tornquist
Kurt A. Tornquist
Senior Vice President, Chief Financial Officer, and Treasurer  Exhibit 32 Certification of Financial
Reports Pursuant to 18 USC Section 1350 The undersigned hereby certify
that the quarterly report on Form 10-Q for the quarter ended June 30, 2003,
fully complies with the requirements of section 13(a) or 15(d) of the
Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d) and that information
contained in that Form 10-Q fairly presents, in all material respects, the
financial condition and results of operations of the Company. /s/J. Nicholas Bayne
J. Nicholas Bayne
President and Chief Executive Officer /s/Kurt A. Tornquist
Kurt A. Tornquist
Senior Vice President, Chief Financial Officer, and Treasurer Dated: August 14, 2003 This certification is made solely for purposes of 18 USC
Section 1350, subject to the knowledge standard contained therein, and not for
any other purpose.