|________________________________________________
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 SEPTEMBER 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 - 1,574,803 shares
__________________________________________________________________________

-1-
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Form 10-Q


PART 1. FINANCIAL
INFORMATION


Item 1. Financial
Statements


See the following exhibits:
Maine & Maritimes Corporation and Subsidiaries Consolidated Financial
Statements, including (1) an unaudited statement of consolidated operations for
the quarter and nine months ended September 30, 2003, and for the corresponding
periods of the preceding year; (2) an unaudited consolidated balance sheet as of
September 30, 2003; (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 September 30, 2003, and for the
corresponding period of the preceding year.


In the opinion of
management, the accompanying unaudited consolidated financial statements present
fairly the financial position of the Company and Subsidiaries at September 30,
2003, and December 31, 2002; the results of their operations for the three and
nine months ended September 30, 2003 and 2002; and their cash flows for the nine
months ended September 30, 2003, and 2002.


The accompanying
unaudited consolidated financial statements include the accounts of Maine &
Maritimes Corporation (the Company or MAM), its active,
wholly-owned, regulated transmission and distribution subsidiary, Maine Public
Service Company (MPS); and including MPSs inactive
wholly-owned Canadian subsidiary, Maine and New Brunswick Electrical Power
Company, Limited, (ME&NB) and MAMs active unregulated
energy marketing subsidiary, Energy Atlantic, LLC (EA).


MAM, a Maine corporation,
became a holding company effective June 30, 2003, and 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 its 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
in the first three months of the nine-month period ending September 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 transmission 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.

-2-
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|MAINE & MARITIMES CORPORATION AND SUBSIDIARIES
STATEMENTS OF CONSOLIDATED OPERATIONS
(Unaudited)
(Dollars in Thousands Except Per Share Amounts)
|------------------------------------------------------------------------------------------------------------------------------------------------

|                                          | Three Months EndedSeptember 30, |  | Nine Months EndedSeptember 30, |      
|----------------------------------------- | ------------------------------- |  | ------------------------------ | -----
|
|                                          |                                 | 
|Operating Revenues                        |                                 |  |                                |      
|Regulated                                 |                                 |  | $                              | 6,823
|Unregulated                               |                                 |  |                                | 1,288
|Unregulated SOS Margin                    |                                 |  |                                | 0    
|                                          |                                 | 
|Total Revenues                            |                                 |  |                                | 8,111
|                                          |                                 | 
|Operating Expenses                        |                                 | 
|Unregulated Energy Supply                 |                                 |  |                                | 1,166
|Operation & Maintenance                   |                                 | 
|Regulated                                 |                                 |  |                                | 2,823
|Unregulated                               |                                 |  |                                | 504  
|Total Operation & Maintenance             |                                 |  |                                | 3,327
|Depreciation                              |                                 |  |                                | 664  
|Amortization of Stranded Costs            |                                 |  |                                | 2,253
|Amortization                              |                                 |  |                                | 52   
|Taxes other than Income                   |                                 |  |                                | 353  
|Provision (Benefit) for Income Taxes      |                                 | 
|Regulated                                 |                                 |  |                                | 114  
|Unregulated                               |                                 |  |                                | (143 
|                                          |                                 | 
|Total Provision (Benefit) for Income      |                                 | 
|Taxes                                     |                                 |  |                                | (29  
|                                          |                                 | 
|Total Operating Expenses                  |                                 |  |                                | 7,786
|                                          |                                 | 
|Operating Income                          |                                 |  |                                | 325  
|                                          |                                 | 
|Other Income (Deductions)                 |                                 | 
|Equity in Income of Associated            |                                 | 
|Companies                                 |                                 |  |                                | 63   
|Allowance for Equity Funds Used           |                                 | 
|During Construction                       |                                 |  |                                | 6    
|Provision (Benefit) for Income Taxes      |                                 | 
|Regulated                                 |                                 |  |                                | (10  
|Unregulated                               |                                 |  |                                | (6   
|Other - Net                               |                                 |  |                                | (94  
|                                          |                                 | 
|Total                                     |                                 |  |                                | (41  
|                                          |                                 | 
|Income Before Interest Charges            |                                 |  |                                | 284  
|                                          |                                 | 
|Interest Charges                          |                                 | 
|Long-Term Debt & Notes Payable            |                                 |  |                                | 372  
|Less Carrying Costs-Stranded Costs        |                                 | 
|and Allowance for Borrowed Funds          |                                 |  |                                | (353 
|                                          |                                 | 
|Total                                     |                                 |  |                                | 19   
|                                          |                                 | 
|Net Income Available for Common Stock     |                                 |  | $                              | 265  
|                                          |                                 | 
|Average Shares Outstanding (000s)        |                                 |  |                                | 1,575
|                                          |                                 | 
|Basic & Diluted Earnings (Loss) Per Share |                                 |  | $                              | 0.17 
|                                          |                                 | 
|Dividends Declared per Common Share       |                                 |  | $                              | 0.37 
|                                          |                                 | 

|The accompanying notes are an integral part of these financial statements.

-3-
|-------------------------------------------------------------------------------

|MAINE & MARITIMES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
|-------------------------------------------------------------------------------------------------

|                                                          | September 30,2003 |  | December 31,2002 |        
|--------------------------------------------------------- | ----------------- |  | ---------------- | -------
|ASSETS                                                    |                   |  |                  |        
|Utility Plant                                             |                   | 
|Electric Plant in Service                                 |                   |  | $                | 88,889 
|Less Accumulated Depreciation                             |                   |  |                  | 41,060 
|                                                          |                   | 
|Net Electric Plant in Service                             |                   |  |                  | 47,829 
|Construction Work-in-Progress                             |                   |  |                  | 2,015  
|                                                          |                   | 
|Total                                                     |                   |  |                  | 49,844 
|                                                          |                   | 
|Investment in Associated Companies                        |                   | 
|Maine Yankee Atomic Power Company                         |                   |  |                  | 2,474  
|Maine Electric Power Company, Inc.                        |                   |  |                  | 499    
|                                                          |                   | 
|Total                                                     |                   |  |                  | 2,973  
|                                                          |                   | 
|Net Utility Plant and Investments                         |                   |  |                  | 52,817 
|                                                          |                   | 
|Current Assets                                            |                   | 
|Cash and Cash Equivalents                                 |                   |  |                  | 2,479  
|Restricted Cash                                           |                   |  |                  | 1,000  
|Accounts Receivable - Net                                 |                   |  |                  | 4,662  
|Unbilled Base Revenue                                     |                   |  |                  | 759    
|Other Current Assets                                      |                   |  |                  | 1,634  
|                                                          |                   | 
|Total                                                     |                   |  |                  | 10,534 
|                                                          |                   | 
|Regulatory Assets                                         |                   | 
|Uncollected Maine Yankee Decommissioning Costs            |                   |  |                  | 20,003 
|Recoverable Seabrook Costs                                |                   |  |                  | 14,166 
|Regulatory Assets - SFAS 109 & 106                        |                   |  |                  | 7,068  
|Deferred Fuel and Purchased Energy Costs                  |                   |  |                  | 16,762 
|Regulatory Asset - Power Purchase Agreement Restructuring |                   |  |                  | 4,716  
|Unamortized Premium on Debt Redemption                    |                   |  |                  | 1,551  
|Deferred Regulatory Costs, less accumulated amortization  |                   |  |                  | 1,362  
|                                                          |                   | 
|Total                                                     |                   |  |                  | 65,628 
|                                                          |                   | 
|Other Assets                                              |                   | 
|Unamortized Debt Expense                                  |                   |  |                  | 676    
|Restricted Investments                                    |                   |  |                  | 2,959  
|Miscellaneous                                             |                   |  |                  | 1,750  
|                                                          |                   | 
|Total                                                     |                   |  |                  | 5,385  
|                                                          |                   | 
|Total Assets                                              |                   |  | $                | 134,364
|                                                          |                   | 

|-4-
|---

|MAINE & MARITIMES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in Thousands)
|-------------------------------------------------------------------------------------------------

|                                                       | September 30,2003 |  | December 31,2002 |        
|------------------------------------------------------ | ----------------- |  | ---------------- | -------
|CAPITALIZATION AND LIABILITIES                         |                   |  |                  |        
|Capitalization                                         |                   | 
|Common Shareholders Equity                            |                   | 
|Common Stock                                           |                   |  | $                | 11,024 
|Paid-in Capital                                        |                   |  |                  | 5      
|Retained Earnings                                      |                   |  |                  | 36,240 
|Accumulated Other Comprehensive Income (Loss)          |                   |  |                  | (1,008 
|Treasury Stock, at cost                                |                   |  |                  | 0      
|                                                       |                   | 
|Total                                                  |                   |  |                  | 46,261 
|                                                       |                   | 
|Long-Term Debt (less current maturities)               |                   |  |                  | 29,975 
|                                                       |                   | 
|Current Liabilities                                    |                   | 
|Long-Term Debt Due Within One Year                     |                   |  |                  | 1,365  
|Notes Payable                                          |                   |  |                  | 2,850  
|Accounts Payable and Accrued Liabilities               |                   |  |                  | 4,373  
|Accrued Employee Benefits                              |                   |  |                  | 816    
|Dividends Declared                                     |                   |  |                  | 0      
|Other Current Liabilities                              |                   |  |                  | 276    
|                                                       |                   | 
|Total                                                  |                   |  |                  | 9,680  
|                                                       |                   | 
|Deferred Credits                                       |                   | 
|Carrying Value of Interest Rate Hedge                  |                   |  |                  | 1,677  
|Uncollected Maine Yankee Decommissioning Costs         |                   |  |                  | 20,003 
|Deferred Income Tax                                    |                   |  |                  | 22,133 
|Investment Tax Credits                                 |                   |  |                  | 167    
|Deferred Gain & Related Accounts-Generating Asset Sale |                   |  |                  | 20     
|SFAS 87 Provision for Pension Benefits                 |                   |  |                  | 2,259  
|SFAS 106 Provision Other Post Employment Benefits      |                   |  |                  | 1,486  
|Miscellaneous                                          |                   |  |                  | 703    
|                                                       |                   | 
|Total                                                  |                   |  |                  | 48,448 
|                                                       |                   | 
|Total Capitalization and Liabilities                   |                   |  | $                | 134,364
|                                                       |                   | 

|The accompanying notes are an integral part of these financial statements.

-5-
|-------------------------------------------------------------------------------

|MAINE & MARITIMES CORPORATION AND SUBSIDIARIES
CONSOLIDATED SHAREHOLDERS EQUITY
(Dollars in Thousands)
|-------------------------------------------------------------------------------------------------------

|                     
|---------------------
|
|                     
|Balance              
|December 31, 2002    
|                     
|New Stock Issued     
|                     
|Formation of MAM     
|June 30, 2003        
|                     
|Net Income           
|                     
|Dividends            
|                     
|Other Comprehensive  
|Income (Loss):       
|Changes in Value of  
|Interest Rate Hedge, 
|Net of Tax ($669,000)
|                     
|Balance              
|September 30, 2003   
|                     

|The accompanying notes are an integral part of these financial statements.

-6-
|-------------------------------------------------------------------------------

|MAINE & MARITIMES CORPORATION AND SUBSIDIARIES
Statements of Consolidated Cash Flows
(Unaudited)
(Dollars in Thousands)
|-----------------------------------------------------------------------------------------------------------------------

|                                                       | Nine Months EndedSeptember 30, | 
|------------------------------------------------------ | ------------------------------ | 
|
|                                                       |                               
|Cash Flow From Operating Activities                    |                                | 
|Net Income                                             |                                | 
|Adjustments to Reconcile Net Income to Net Cash        |                                | 
|Provided By Operations                                 |                                | 
|Depreciation                                           |                                | 
|Amortization                                           |                                | 
|Amortization of Deferred Gain from Asset Sale          |                                | 
|Amortization of Power Purchase Agreement Restructuring |                                | 
|Income on Tax Exempt Bonds-Restricted Funds            |                                | 
|Deferred Income Taxes - Net                            |                                | 
|AFUDC                                                  |                                | 
|Increase in Restricted Cash                            |                                | 
|Change in Deferred Fuel & Purchased Energy             |                                | 
|Change in Deferred Regulatory and Debt Issuance Costs  |                                | 
|Change in Deferred Regulatory Liability - Other        |                                | 
|Change in Deferred Regulatory Liability - NEIL Refund  |                                | 
|Change in Benefit Obligation                           |                                | 
|Change in Current Assets and Liabilities               |                                | 
|Other                                                  |                                | 
|                                                       |                               
|Net Cash Flow Provided By Operating Activities         |                                | 
|                                                       |                               
|                                                      
|Cash Flow From Financing Activities                    |                                | 
|Dividend Payments                                      |                                | 
|Retirements on Long-Term Debt                          |                                | 
|Short-Term Debt Borrowings (Repayments), Net           |                                | 
|                                                       |                               
|Net Cash Flow Used For Financing Activities            |                                | 
|                                                       |                               
|                                                      
|Cash Flow From Investing Activities                    |                                | 
|Drawdown of Tax Exempt Bonds Proceeds                  |                                | 
|Stock Redemption from Associated Company               |                                | 
|Investment in Electric Plant                           |                                | 
|                                                       |                               
|Net Cash Flow Used For Investing Activities            |                                | 
|                                                       |                               
|                                                      
|Increase (Decrease) in Cash and Cash Equivalents       |                                | 
|Cash and Cash Equivalents at Beginning of Year         |                                | 
|                                                       |                               
|Cash and Cash Equivalents at End of Period             |                                | 
|                                                       |                               

|-7-
|---

|MAINE & MARITIMES CORPORATION AND SUBSIDIARIES
Statements of Consolidated Cash Flows
(Unaudited)
(Dollars in Thousands)
|-----------------------------------------------------------------------------------------------------------------------

|                                                               | Nine Months EndedSeptember 30, | 
|-------------------------------------------------------------- | ------------------------------ | 
|
|                                                               |                               
|Change in Current Assets and Liabilities Providing (Utilizing) |                                | 
|Cash From Operating Activities                                 |                                | 
|Accounts Receivable                                            |                                | 
|Unbilled Revenue                                               |                                | 
|Other Current Assets                                           |                                | 
|Accounts Payable                                               |                                | 
|Accrued Employee Benefits                                      |                                | 
|Other Current Liabilities                                      |                                | 
|                                                               |                               
|Total Change                                                   |                                | 
|                                                               |                               
|                                                              
|Supplemental Disclosure of Cash Flow Information:              |                                | 
|Cash Paid During the Period For:                               |                                | 
|Interest                                                       |                                | 
|                                                               |                               
|Income Taxes                                                   |                                | 
|                                                               |                               

|The accompanying notes are an
integral part of these financial statements.

-8-
|-------------------------------------------------------------------------------

|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 active,
wholly-owned, regulated transmission and distribution subsidiary, Maine Public
Service Company (MPS); and including MPSs inactive
wholly-owned Canadian subsidiary, Maine and New Brunswick Electrical Power
Company, Limited, (ME&NB) and MAMs active unregulated
energy marketing subsidiary, Energy Atlantic, LLC (EA).


MAM, 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. MPS also reported amounts in the first three months of the
nine-month period ending September 30, 2003.


MPS is subject to the
regulatory authority of the Maine Public Utilities Commission (MPUC)
and, with respect to wholesale transmission 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.


Due to the seasonal
nature of the Companys operations, financial results for interim periods
are not necessarily indicative of trends for a twelve-month period.


For purposes of the
statements of consolidated cash flows, the Company considers all highly liquid
securities with 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 loss for
the third quarter of 2003 was $93,000 compared to a net income of $3,432,000 for
the third quarter of last year. EAs third quarter, 2002 net income
reflects the final settlement with its energy supplier for Standard Offer
Service in CMPs service territory. As mentioned in previous filings, EA
recognized net income of approximately $3,087,000 from the settlement and the
reversal of certain regulatory assessments pursuant to the agreement with the
supplier. EAs third quarter, 2003 loss reflects the gradual termination of
service as contracts expire in northern Maine. The Company believes that the
current standard offer pricing in Maine, the lack of wholesale choices and
liquidity within northern Maine, and the increased credit requirements
associated with acquiring wholesale electricity supply have hampered EA in
competing for sales. The Company maintains a conservative risk management
philosophy and has limited the transactions EA can undertake as a buyer or
seller in order to limit and mitigate potential transactional risk exposures.


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 certain regions of
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.

-9-
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|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 counter-party 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, which is
reflected as Restricted Cash on the Balance Sheet.


The following illustrates
each type of EAs risk exposure related to these contracts for supply and
sales:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | - | Counter-party
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 in February of 2002,
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 potential sale of the subsidiary, a refinement of its market area,
and/or expansion into other product and service lines. The Company has not
determined which strategy will be used going forward. However, it has targeted
the fourth quarter of 2003 as the timeframe for adoption and implementation of
one of possible strategic alternatives.


On February 24, 2003, EA
announced its intent to withdraw from retail electricity markets in northern
Maine. The reasons included concerns over a lack of risk-adjusted 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 and $4 million for the nine months ended
September 30, 2003. 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.

-10-
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|In connection with
MPSs reorganization 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 MPS and EA from
certain management restrictions. These restrictions had been 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. On June 24,
2003, the parties submitted a Stipulation 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 (the 304 Order) and
resolved all issues in this matter. Under the provisions of the 304 Order, MPS
is 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 the condition that
EA 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 in the future. In connection with its announced
intent to withdraw from the retail electricity markets in northern Maine EA has
ceased all of its energy marketing activities in MPS service territory
effective March 1, 2003. As noted, it will serve the remaining terms of existing
contracts within northern Maine, which will expire March 1, 2004.

3. SEGMENT INFORMATION


The Company operates in
three segments, with MPS providing regulated transmission and distribution
services, EA performing unregulated power marketing services and MAM providing
corporate oversight functions. The table below summarizes segment activity for
the three and nine months ended September 30, 2003, and 2002.


The Companys
reportable segments include the electric utility portion of the
businessMPS and its inactive wholly-owned Canadian subsidiary, Maine and
New Brunswick Electrical Power Company, Limited, (ME&NB), the
energy marketing portion of the businessEA, and the holding
companyMAM. 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; however, MPS incurred expenses associated with the formation
of MAM, which totaled $52,000 and $639,000 for the three and nine months ended
September 30, 2003, respectively, classified as unregulated operations and
maintenance. MAM provides certain administrative support services to MPS and EA,
and MPS provides certain support services to MAM and EA, which are billed to the
respective entities at cost, based on a combination of direct charges and
allocations. The Company is organized based on products and services.

-11-
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                     | Three Months Ended(Dollars in Thousands) | 
|-------------------- | ---------------------------------------- | 
|
|                     |                                         
|                    
|
|Operating Revenues   |                                          | 
|EA SOS Margin        |                                          | 
|                     |                                         
|Total Revenues       |                                          | 
|                     |                                         
|Unregulated Energy   |                                          | 
|Supply               |                                          | 
|Operations &         |                                          | 
|Maintenance (O&M)    |                                          | 
|Regulated            |                                          | 
|Unregulated          |                                          | 
|Amortization -       |                                          | 
|Stranded Cost        |                                          | 
|Amortization - Other |                                          | 
|Depreciation         |                                          | 
|Other O&M            |                                          | 
|Income Taxes         |                                          | 
|                     |                                         
|Total Operating      |                                          | 
|Expenses             |                                          | 
|                     |                                         
|Operating Income     |                                          | 
|Interest Income      |                                          | 
|Equity in Net Income |                                          | 
|of JV's              |                                          | 
|Other Income &       |                                          | 
|Deductions           |                                          | 
|                     |                                         
|Income Before        |                                          | 
|Interest Charges     |                                          | 
|Interest Charges     |                                          | 
|                     |                                         
|Net Income           |                                          | 
|                     |                                         

|* Reconciling Eliminations

-12-
|--------------------------------

|                           | Nine
      Months Ended
      (Dollars in Thousands) | 
|-------------------------- | ---------------------------------------------------- | 
|
|                           |                                                     
|                          
|
|Operating
      Revenues   |                                                      | 
|EA
      SOS Margin        |                                                      | 
|                           |                                                     
|Total
      Revenues       |                                                      | 
|                           |                                                     
|Unregulated
      Energy   |                                                      | 
|Supply                     |                                                      | 
|Operations
      &         |                                                      | 
|Maintenance
      (O&M)    |                                                      | 
|Regulated                  |                                                      | 
|Unregulated                |                                                      | 
|Amortization
      -       |                                                      | 
|Stranded
      Cost        |                                                      | 
|Amortization
      - Other |                                                      | 
|Depreciation               |                                                      | 
|Other
      O&M            |                                                      | 
|Income
      Taxes         |                                                      | 
|                           |                                                     
|Total
      Operating      |                                                      | 
|Expenses                   |                                                      | 
|                           |                                                     
|Operating
      Income     |                                                      | 
|                           |                                                     
|Interest
      Income      |                                                      | 
|Equity
      in Net Income |                                                      | 
|of
      JV's              |                                                      | 
|Other
      Income &       |                                                      | 
|Deductions                 |                                                      | 
|Income
      Before        |                                                      | 
|Interest
      Charges     |                                                      | 
|Interest
      Charges     |                                                      | 
|                           |                                                     
|Net
      Income           |                                                      | 
|                           |                                                     
|Total
      Assets as of   |                                                      | 
|September
      30,        |                                                      | 
|                           |                                                      | 

|* Reconciling Eliminations

-13-
|--------------------------------

|4. REGULATORY MATTERS


Maine Public
Utilities Commission, Request for Approval of Alternative Rate Plan:


As reported in prior MPS
and MAM quarterly reports on Form 10-Q, and in recent Form 8-Ks, 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.
In accordance with a recently enacted state statute, Maine utilities requesting
an ARP must now also file cost of service financial information as part of the
ARP proceeding. In connection with this aspect of the ARP review and analysis,
MPS has been authorized by, and has received final approval from the MPUC to
increase its electric delivery rates. On October 24, 2003, following the entry
of a procedural order, discovery, and a public conference, the MPUC approved a
final Supplemental Stipulation in connection with this rate increase. As a
result, effective November 1, 2003, MPS will increase its total electric
delivery rate by 3.78%, or a total revenue increase not to exceed $1,126,552.
This increase includes $685,037 in distribution revenues and $441,515 in
transmission revenues. Following the entry of the order approving the
Supplemental Stipulation, the ARP proceeding was bifurcated and MPS has until
December 31, 2003 to notify the MPUC of its intention to proceed with the
remaining elements of the ARP or withdraw the ARP docket. The Company is in the
process of evaluating this option.


Maine Public
Utilities Commission Notices of Inquiry:


As reported in prior MPS
and MAM 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 and MAM quarterly reports on Form 10-Q, pursuant to Section 2.4 of the
Settlement Agreement filed on September 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 and reach a settlement
agreement prior to the close of 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 for regulated activities and unregulated activities for EA and MAM. The
tax effect of items not included in rate base is allocated as Other Income
(Deductions).

-14-
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                     | Three Months EndedSeptember 30,(Dollars in Thousands) |  | Nine Months EndedSeptember 30,(Dollars in Thousands) |     
|-------------------- | ----------------------------------------------------- |  | ---------------------------------------------------- | ----
|
|                    
|Current income taxes |                                                       |  | $                                                    | (362
|Deferred income tax  |                                                       |  |                                                      | 356 
|Investment credits   |                                                       |  |                                                      | (7  
|                     |                                                      
|Total income taxes   |                                                       |  | $                                                    | (13 
|                     |                                                      
|Allocated to:        |                                                       | 
|Operating Income     |                                                       | 
|- Regulated          |                                                       |  | $                                                    | 114 
|- Unregulated        |                                                       |  |                                                      | (143
|Other income         |                                                       |  |                                                      | 16  
|                     |                                                      
|Total                |                                                       |  | $                                                    | (13 
|                     |                                                      

|For the nine months ended
September 30, 2003, and 2002, the effective income tax rates were 31.3 % and
38.6%, respectively. The principal reasons for the effective tax rates differing
from the US federal income tax rate are flow through items, namely Seabrook
amortization, which is required by regulation and state income taxes, and
adjustments to prior year tax reserves.


The following summarizes
accumulated deferred income taxes established on temporary differences under
Statement of Financial Accounting Standards No. 109 (FAS 109), as of
September 30, 2003, and December 31, 2002.
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                           | (Dollars in Thousands) | 
|------------------------------------------ | ---------------------- | 
|
|                                          
|Seabrook                                   |                        | 
|Property                                   |                        | 
|Flexible Pricing Revenue                   |                        | 
|Deferred Fuel                              |                        | 
|Generating asset sale                      |                        | 
|W-S Power Purchase Agreement Restructuring |                        | 
|OCI - Interest Rate Hedge                  |                        | 
|Rate Case Items                            |                        | 
|Pension and post-retirement benefits       |                        | 
|Other                                      |                        | 
|                                           |                       
|Net accumulated deferred income taxes      |                        | 
|                                           |                       

|6. MAINE YANKEE


As previously reported in
prior MPS and MAM quarterly reports on Form 10-Q, MPS owns 5% of the Common
Stock of Maine Yankee, which operated an 860 MW nuclear power plant in
Wiscasset, Maine that has ceased power operations and is now in the final stages
of decommissioning.


In accordance with its
1999 FERC rate case settlement, on October 21, 2003, MY filed a revised formula
rate schedule with the FERC, proposing an effective date of January 1, 2004,
when major decommissioning activities are expected to be nearing completion. The
filing contains a revised decommissioning cost estimate and collection schedule
to assure that adequate funds are available to safely and promptly decommission
the Plant and operate and manage the independent spent fuel storage installation
(ISFSI). In the filing MY also requests a change in its billing
formula and an increase in the level of collection for certain postretirement
benefits. To meet these needs, MY proposes to collect an additional
$3.77 million per year through October 2008, over current decommissioning
collection levels, exclusive of any income-tax liability, for the
decommissioning and spent-fuel management expense, and to collect the amounts
needed to replenish its Spent Fuel Trust for funds previously used for ISFSI
construction from November 2008 through October 2010. MY believes it is entitled
to recover the costs underlying the proposed new rates, but cannot predict the
outcome of the rate proceeding. If approved by FERC, MPSs share of
this increase, approximately $189,000, will be recovered as stranded costs.

-15-
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|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 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 SharesRedeemed |  |  | MPSShares |  | AmountsReceived |       |  | Date Received |          
|-------------------------- | -------------------- |  |  | --------- |  | --------------- | ----- |  | ------------- | ---------
|                          
|September
27, 2001         |                      |  |  | 75,200    |  |                 | 3,760 |  | $             | 499,484  
|June 27, 2002              |                      |  |  | 22,600    |  |                 | 1,130 |  |               | 150,110  
|September 26,
2002         |                      |  |  | 33,900    |  |                 | 1,695 |  |               | 225,166  
|December 18,
2002          |                      |  |  | 33,800    |  |                 | 1,690 |  |               | 224,502  
|                           |                      |  |  |          
|                           |                      |  |  | 165,500   |  |                 | 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 September 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 September 30, 2003, and changes
during the quarter then ended is presented below:

-16-
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Options                                                | Shares(000) |  | Exercise Price |       
|------------------------------------------------------ | ----------- |  | -------------- | ------
|Outstanding at July 1, 2003                            |             |  |                | 5,250 
|Granted                                                |             |  |                | 5,250 
|Exercised                                              |             |  |                | 0     
|Forfeited                                              |             |  |                | 0     
|                                                       |            
|Outstanding at September 30, 2003                      |             |  |                | 10,500
|                                                       |            
|Options exercisable at September 30, 2003              |             |  |                | 0     
|                                                       |            
|Weighted-average fair value of options granted to date |             |  |                | 6.62  
|                                                       |            

|The following table
summarizes information about fixed stock options outstanding at September 30,
2003:
|-------------------------------------------------------------------------------------------------------

|Options Outstanding | Options Exercisable
|------------------- | -------------------
|                   
|
|                   
|$30.45-32.51        | 10,500             

|8. NEW ACCOUNTING PRONOUNCEMENTS


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 entities
that existed prior to February 1, 2003 for the first interim period ending after
December 15, 2003. For entities created after January 31, 2003, FIN 46 is
effective and required to be applied. The Company does not expect the adoption
of this statement will have a material impact on the Company based on its
current structure.


On April 30, 2003, the
FASB issued Financial Accounting Standards 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
Financial Accounting Standards 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 September 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 Financial Accounting Standards 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 adoption of this statement did not have a
material impact on the Company.

-17-
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|9. COMMITMENTS AND CONTINGENCIES


The Company does not have
any variable interest entities as defined by Financial Accounting Standards
Board Interpretation No. 46 (FIN 46), Consolidation of
Variable Interest Entities, promulgated on January 17, 2003 and discussed
in the Companys report on Form 10-Q for the quarter ended June 30, 2003.
Except for operating leases used for office and field equipment, vehicles, and
computer hardware and software, accounted for in accordance with Financial
Accounting Standards No. 13 (FAS 13), Accounting for
Leases 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 September 30, 2003, and 2002:
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                               | (Dollars in Thousands)Three Months EndedSeptember 30, | 
|------------------------------ | ----------------------------------------------------- | 
|
|                               |                                                      
|                              
|Office Equipment               |                                                       | 
|Vehicles                       |                                                       | 
|Computer Hardware and Software |                                                       | 
|                               |                                                      
|Total                          |                                                       | 
|                               |                                                      

|10.  ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)


MPS has three issues of
long-term debt with variable interest rates, as discussed in detail in
MPSs 2002 Annual Report, which includes MPSs 2002 Form 10-K.
Pursuant to its rate order in MPUC Docket 2003-85, as more fully explained in
Note 4, Regulatory Matters, MPS agreed to fix its interest rates and
the MPUC allowed recovery of the fixed interest costs in rates. On September 9,
2003, MPS executed swap agreements for the three variable rate issues, locking
in the rates over the remaining terms of the issues. For the Finance Authority
of Maine (FAME), 1998 Taxable Elective Rate Stabilization Revenue
Notes due 2008, the effective fixed interest rate has been set at 2.79%. For the
two series of tax-exempt bonds issued by the Maine Public Utilities Financing
Bank (MPUFB), the effective fixed interest rates for the 1996 Series
due 2021 and the 2000 Series due 2025 are 4.57% and 4.68% respectively.


At the end of the third
quarter of 2003, the fair value of these qualified cash flow hedges was
($1,677,000), reflecting a 48-52 basis point drop in swap rates since the
execution date. Since September 9, 2003, the difference between the fixed rates
and the underlying variable rates on the issues of approximately $57,000 was
charged to operating income in September 2003. Although the fixed interest rates
were higher than the underlying variable rates, a portion of the MPUC approved
rate increase was to cover this difference. Management believes that the fixing
of interest rates over the terms of the Companys debt will
prove to protect both shareholders and consumers from upward variable debt
pressures. The loss in fair value on the interest rate swaps noted above less
the deferred tax of $669,000 has been recorded as Other Comprehensive Income
(Loss). Gains or losses in the fair market value of the interest rate swaps do
not impact net income or the revenues of the Company, unless shareholders
common equity falls below the minimum allowable 48 percent and maximum allowable
51 percent as set by the MPUC.

-18-
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|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; technology displacement; consumer decisions; and the
decommissioning cost of Maine Yankee.

Results of Operations


For the third 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, 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 September 30, 2003, along with the
corresponding information for same period of the previous year are as follows:
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                  
|------------------
|
|                  
|
|                  
|Net Income        
|                  
|- MAM             
|                  
|- MPS Core T&D    
|                  
|- EA              
|                  
|Total Company     
|                  
|Earnings Per Share
|                  
|Total Company     
|                  

|For the quarter ended
September 30, 2003, net income was $265,000, $.17 per share, compared to net
income of $3,522,000, $2.24 per share, for the third quarter of 2002. EA
recorded a net loss of $93,000, $.06 per share, for the third quarter of 2003,
compared to 2002 net income of $3,432,000, $2.18 per share. The decrease in net
income was primarily due to the final settlement with its energy supplier for
SOS in CMPs service territory and the gradual termination of service as
contracts expire in northern Maine. The current standard offer pricing in Maine
along with increased credit requirements associated with acquiring wholesale
electricity supply has hampered EA in competing for sales. As mentioned in
previous filings, EA recognized net income of approximately $3,087,000, $1.96
per share, from the settlement and the reversal of certain regulatory
assessments pursuant to the agreement with the supplier.


MPSs core T&D
business contributed net income of $476,000, $.30 per share, in the third
quarter of 2003 compared to net income of $90,000, $.06 per share, in the third
quarter of 2002. As mentioned previously, MAM began operations in the third
quarter of 2003 and incurred a loss of $118,000, $.07 per share.


Earnings per share for
the three months ended September 30, 2003, was $2.07 per share less than the
same quarter in 2002. As mentioned above, $1.96 of the difference is associated
with the settlement received by EA during the third quarter of 2002. In
addition, EA experienced a decrease in earnings from normal operations of $.28
per share with the loss of SOS in CMPs service territory on March 1, 2002
as well as the curtailment of service to northern Maine. Rate filings with the
MPUC and FERC, advisory services concerning financing strategies and on-going
costs associated with Sarbanes-Oxley compliance decreased third quarter 2003
earnings by $.11 per share. As previously mentioned, MAMs net loss for the
third quarter of 2003 was $.07 per share. Depreciation and amortization of
stranded costs further reduced earnings by $.04 per share. As a result of the
MPUC order in its retail distribution and transmission rate case, see item 1 (a)
of the Legal Proceedings Section, MPS was allowed to recognize a regulatory
asset and reduce operating expenses for certain voluntary early retirement costs
expensed in the fourth of 2002, which increased earnings by $.15 per share.
Ongoing efforts to contain costs positively impacted the transmission and
distribution utility, resulting in an increase of $.10 per share. A reduction in
interest rates and an increase in carrying charges on stranded investment
increased earnings by $.04 per share, while an increase in MPS operating
revenues increased earnings by $.09 per share.

-19-
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Consolidated operating
revenues for the quarters ended September 30, 2003, and 2002, are as follows:
|----------------------------------------------------------------------------------------------------

|                                      | 2003 |  | 2002 |      
|------------------------------------- | ---- |  | ---- | -----
|                                      |     
|
|                                      |     
|Maine Public Service (MPS)            |      |  |      |      
|- Retail                              |      |  |      | 6,481
|- Other Revenues                      |      |  |      | 342  
|                                      |     
|Total Regulated                       |      |  |      | 6,823
|                                      |     
|Energy Atlantic, LLC (EA)             |      | 
|- Competitive Energy Supply           |      |  |      | 1,288
|- Wholesale and Standard Offer Margin |      |  |      | 0    
|                                      |     
|Total Unregulated                     |      |  |      | 1,288
|                                      |     
|Totals                                |      |  |      | 8,111
|                                      |     

|MPS retail MWH sales
volume increased by 2.3% (2,895 MWH). Increases in sales to residential
customers of 4.9% (1,915 MWH), and to medium and small commercial customers of
3.2% (1,489 MWH) were offset by a reduction in sales to large commercial
customers of 1.2% (512 MWH), reflecting a softening trend in the wood products
sector. The $58,000 decrease in Other Revenues is due to a decrease in unbilled
revenue, as well as reduced wheeling revenues associated with the closure of the
Boralex Ashland generating plant.


As previously mentioned,
EAs wholesale and standard offer margin of $5,564,000 in the third quarter
of 2002 included the final settlement on the SOS arrangement in CMPs
service territory. Competitive energy supply revenue has decreased by $701,000
due to the gradual termination of service in northern Maine as contracts expire,
and adjustments in unbilled revenue.


For the quarters ended
September 30, 2003, and 2002, total operating expenses were $7,786,000 and
$10,533,000 respectively. Much of the decrease in total operating expenses is
attributable to the reduction in income taxes, principally the income taxes of
$2,049,000 associated with EAs settlement discussed above. Other
significant charges are discussed below.


Energy supply expenses
for EA were as follows:
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                             | 2003 |  | 2002 |      
|---------------------------- | ---- |  | ---- | -----
|                             |     
|
|Energy Supply - Unregulated  |      | 
|EA Competitive Energy Supply |      |  |      | 1,166
|EA Standard Offer Service    |      |  |      | 0    
|EA Wholesale                 |      |  |      | 0    
|                             |     
|Total                        |      |  |      | 1,166
|                             |     

|Compared to the third
quarter of 2002, CES purchases by EA in the second quarter of 2003 decreased by
$290,000 reflecting the 13.211 MWH decrease in CES purchases.


MAMs, MPSs
T&D, and EAs operation and maintenance expenses, as well as stranded
costs for the quarters ended September 30, 2003, and September 30, 2002, are as
follows:

-20-
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|                                               | Three Months
Ended | 
|---------------------------------------------- | ------------------ | 
|
|                                               |                   
|Operation and Maintenance - Regulated (MPS)    |                    | 
|Transmission
and Distribution                  |                    | 
|Customer
Accounting and General Administrative |                    | 
|                                               |                   
|Regulated
O & M                                |                    | 
|Operation
and Maintenance - Unregulated (MPS)  |                    | 
|Operation
and Maintenance - Unregulated (EA)   |                    | 
|                                               |                   
|Total Operation
and Maintenance                |                    | 
|                                               |                   
|                                              
|Stranded Costs                                 |                    | 
|Wheelabrator-Sherman                           |                    | 
|Maine
Yankee                                   |                    | 
|Seabrook                                       |                    | 
|Deferred
Fuel and Special Discounts            |                    | 
|Amortization
of Gain from Asset Sale           |                    | 
|                                               |                   
|Total Stranded
Costs                           |                    | 
|                                               |                   

|MPSs operating and
maintenance expenses for the third quarter of 2003 were $2,823,000, a decrease
of $421,000 from the same quarter in 2002. Transmission and distribution expense
decreased by $55,000 to $836,000 for the three months ended September 30, 2003,
compared to $891,000 for the same period in 2002. This decrease is attributable
to the reduction in contractors used for tree trimming. Customer accounting and
general administrative expenses were $2,353,000 for the third quarter of 2002,
compared to $1,987,000 for the third quarter of 2003, a decrease of $366,000. As
a result of a MPUC order in its rate case, MPS was allowed to recognize a
regulatory asset and reduce operating expenses by $402,000 for certain voluntary
early retirement costs expensed in the fourth quarter of 2002. This decrease in
operating expenses was offset principally by expenses associated with rate
filings with the MPUC and FERC, advisory services concerning financing
strategies and on-going costs associated with Sarbanes-Oxley compliance.


Operation and maintenance
expenses for the third quarter of 2003 decreased for EA by $100,000, to $290,000
from $390,000 for 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 third quarter of 2003, MAM incurred $214,000
in expenses associated with unregulated business activities.


MPS recognized $2,253,000
of stranded costs in the third quarter of 2003, compared to $2,184,000 in the
third 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 $69,000 reflects an increase in net W-S
costs of $197,000, a $8,000 decrease in Maine Yankee decommissioning expense, a
$761,000 decrease in deferred fuel and special discounts recognized in current
rate recovery, and a $641,000 increase for the recognition of the generation
asset sale.

Energy Atlantic
Operations


EAs net loss for
the third quarter of 2003 was $93,000 compared to a net income of $3,432,000 for
the third quarter of last year. EAs third quarter, 2002 net income
reflects the final settlement with its energy supplier for Standard Offer
Service in CMPs service territory. As mentioned in previous filings, EA
recognized net income of approximately $3,087,000 from the settlement and the
reversal of certain regulatory assessments pursuant to the agreement with the
supplier. EAs third quarter, 2003 loss reflects the gradual termination of
service as contracts expire in northern Maine. The Company believes that the
current standard offer pricing in Maine, the lack of wholesale choices and
liquidity within northern Maine, and the increased credit requirements
associated with acquiring wholesale electricity supply have hampered EA in
competing for sales. The Company maintains a conservative risk management
philosophy and has limited the transactions EA can undertake as a buyer or
seller in order to limit and mitigate potential transactional risk exposures.

-21-
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|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 certain regions of
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 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 counter-party 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, which
is reflected as Restricted Cash on the Balance Sheet.


The following illustrates
each type of EAs risk exposure related to these contracts for supply and
sales:
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| | - | Counter-party
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 in February of 2002,
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 potential sale of the subsidiary, a refinement of its market area,
and/or expansion into other product and service lines. The Company has not
determined which strategy will be used going forward. However, it has targeted
the fourth quarter of 2003 as the timeframe for adoption and implementation of
one of possible strategic alternatives.

-22-
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|On February 24, 2003, EA
announced its intent to withdraw from retail electricity markets in northern
Maine. The reasons included concerns over a lack of risk-adjusted 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 and $4 million for the nine months ended
September 30, 2003. 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 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 MPS and EA from
certain management restrictions. These restrictions had been 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. On June 24,
2003, the parties submitted a Stipulation 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 (the 304 Order) and
resolved all issues in this matter. Under the provisions of the 304 Order, MPS
is 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 the condition that
EA 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 in the future. In connection with its announced
intent to withdraw from the retail electricity markets in northern Maine EA has
ceased all of its energy marketing activities in MPS service territory
effective March 1, 2003. As noted, it will serve the remaining terms of existing
contracts within northern Maine, which will expire March 1, 2004.

Liquidity


Net cash flows from
operating activities for the first nine months of 2003 were
$3,045,000 with net income of $1,969,000. The deferral of $3,630,000
of current Wheelabrator-Sherman costs in accordance with MPSs stranded
cost recovery accounted for the biggest reduction in operating cash flows. For
the nine months ended September 30, 2003, dividend payments were $2,330,000,
while scheduled sinking fund payments of $2,425,000 were offset by short-term
borrowings of $50,000. On February 25, 2003, the MPUC granted MPS the right to
participate in a $4 million inter-company revolving credit agreement with EA. As
of September 30, 2003, MPS had an outstanding balance of $2.5 million under this
loan agreement. During the first nine months of 2003, MPS invested $3,523,000 in
electric plant with $1,482,000 withdrawn from the tax-exempt bonds trust
account. In addition, MPS received $224,000 for the partial redemption of its
Maine Yankee Common Stock.


For the first nine months
of 2002, net cash flow from operating activities was $8,165,000 based on net
income of $6,025,000. The significant increase in net income reflects EAs
settlement as previously discussed. For the first nine months of 2002,
$2,331,000 of the gain for the 1999 sale of the generating assets was recognized
and $1,005,000 of the 2000 NEIL insurance refund from Maine Yankee did not
contribute to operating cash flows. For the period, dividend payments were
$1,652,000. Long-term debt was reduced by $585,000 via sinking fund payments,
and short-term borrowings were reduced by $100,000. During the first nine months
of 2002, $4,697,000 was invested in electric plant with $2,281,000 withdrawn
from the tax-exempt bond trust account for qualifying facilities. During the
period, a stock redemption by Maine Yankee contributed $150,000 to cash flows.

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 September 30,
2003, MPS was in compliance with these covenants.

-23-
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|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 September 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
placed in trust and drawn down for the reimbursement of issuance costs and for
the construction of qualifying distribution property and, as of September 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.


On October 1, 2003, MPS
executed an additional $3 million line of credit with the Bank of New York. This
new facility is unsecured and will expire on March 29, 2004. Interest rates on
the new facility are comparable to the rates on the existing revolving credit
agreement. The additional facility provides an additional source of short-term
borrowings in the event required borrowings exceed the existing revolving credit
agreement.

Item 3. Quantitative and
Qualitative Disclosures about Market Risk (TBD)


(a) Until September 9,
2003, MPS had interest rate risk with three variable rate debt issues, 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. On September 9, 2003, MPS executed swap agreements for the three
variable rate issues, locking in the rates over the remaining terms of the
issues.


(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 counter-party, 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 10-Q, as evidenced by the
certifications attached as Exhibit 31 to 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.

-24-
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|PART II.  OTHER INFORMATION


Item 1. Legal Proceedings


(a) Maine Public
Utilities Commission, Request for Approval of Alternative Rate Plan.


As reported in prior MPS
and MAM 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. In accordance
with a recently enacted state statute, Maine utilities requesting an ARP must
now also file cost of service financial information as part of the ARP
proceeding. In connection with this aspect of the ARP review and analysis, MPS
has been authorized by, and has received final approval from the MPUC to
increase its electric delivery rates. On October 24, 2003, following the entry
of a procedural order, discovery, and a public conference, the MPUC approved a
final Supplemental Stipulation in connection with this rate increase. As a
result, effective November 1, 2003, MPS will increase its total electric
delivery rate by 3.78%, or a total revenue increase not to exceed $1,126,552.
This increase includes $685,037 in distribution revenues and $441,515 in
transmission revenues. Following the entry of the order approving the
Supplemental Stipulation, the ARP proceeding was bifurcated and MPS has until
December 31, 2003 to notify the MPUC of its intention to proceed with the
remaining elements of the ARP or withdraw the ARP docket. The Company is in the
process of evaluating its options to proceed or withdraw from the
proceedings.


(b)
Maine Public Utilities Commission Notices of Inquiry.


As reported in prior MPS
and MAM 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.


(c)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 September 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 and reach a
settlement agreement prior to the close of calendar year 2003.

Item 2. Changes in
Securities


All outstanding shares of
Common Stock of the Company outstanding as of July 1, 2003, 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

-25-
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|Item 4. Submission of Matters to a
Vote of Security Holders


None

Item 5. Other Information


None

Item 6. Exhibits and Reports on
Form 8-K


The following Forms 8-K
were filed for Maine & Maritimes Corporation:


August 14, 2003 
Press release titled Maine & Maritimes Corporation Announces Second
Quarter Results.


September 5, 2003 
Reporting on the declaration of a regular quarterly dividend by the Board of
Directors and designation of Michael W. Caron as the Companys Audit
Committee Financial Expert.


September 5, 2003 
Reporting that the Companys wholly-owned electric transmission and
distribution utility, Maine Public Service Company, has been authorized by the
Maine Public Utilities Commission to increase its electric delivery rates.


September 10, 2003 
Reporting on the implementation of a long-term interest rate stabilization
program through the execution of interest rate swaps.


October 1, 2003 
Providing the Interim report to Stockholders dated October 1, 2003, presenting
financial results through August 31, 2003.


October 30, 2003 
Reporting Maine & Maritimes Subsidiary, Maine Public Service Company,
received final approval from the Maine Public Utilities Commission to increase
its electric delivery rates.


Exhibit 31 Rule
13a-14(a)/15d-14(a) Certifications.


Exhibit 32 Section 1350
Certification.

-26-
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|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: November 14, 2003,
/s/ Larry E. LaPlante
Larry E. LaPlante
Vice President, Controller and Chief Accounting Officer

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|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------