Exhibit 10-106.1


                                 FIRST AMENDMENT
                                     TO THE
                              EMPLOYMENT AGREEMENT

         This  Amendment  approved by the Board of Directors  and executed as of
the 18th day of March,  1999,  by and between  CENTRAL  MAINE POWER COMPANY (the
"Company") and MICHAEL R. CUTTER of Winthrop, Maine (the "Executive").

         WHEREAS,  the  Company and the  Executive  entered  into an  Employment
Agreement dated June 30, 1997 (the "Employment Agreement); and

         WHEREAS,  the Company and the Executive  hereby mutually agree to amend
the contract.

         NOW, THEREFORE,  the Employment  Agreement is hereby amended as follows
effective as of the date first above written:

          (1) Section  1.a. is hereby  deleted and shall  henceforth  provide as
          follows:  "a. Term. The term of this Agreement  shall begin on June 1,
          1997  (hereinafter  referred  to as the  "Effective  Date")  and shall
          expire on May 31, 2000; provided, however, that on May 31, 2000 and on
          each May 31 thereafter, the term of this Agreement shall automatically
          be  extended  for one (1)  additional  year  unless not later than the
          preceding January 31st, either the Company or the Executive shall have
          given  notice that such party does not wish to extend the term of this
          Agreement.  If a Change of Control  occurs during the original term of
          this Agreement or any extension,  the term of this Agreement  shall be
          automatically  extended  for 365 days  after the  consummation  of the
          Change of Control (the  "Extended  Expiration  Date"),  which shall be
          deemed for this purpose to be a date on which all action  necessary to
          complete a Change of Control shall have been  accomplished,  including
          any regulatory approvals."

         (2) Section 1.b.(iii) is hereby deleted and shall henceforth provide as
follows:

          "(iii) the normal or Extended  Expiration Date as specified in Section
          a above."

         (3) Section  5.a.(i) is hereby amended by changing the term "2.0 times"
to "1.0 times".

         (4) Section 5.b. is hereby amended by adding the following  sentence at
the end of the first sentence thereof:

         "Notwithstanding the foregoing, the reduction provided for herein shall
         be made only if the amount of the  reduction in the payments  specified
         in Section 5.a. is less than the excise tax imposed pursuant to Section
         4999 of the Code on the portion of the Total Payments which  constitute
         "excess parachute payments"."

         (5)   Section 7.a. is hereby deleted in its entirety.

         (6) A new Section 8.b. is hereby added which shall  henceforth  provide
as follows:

         "b. In the event the Executive is entitled to Severance  Benefits under
         Section  5.a.  above,  the  Executive  agrees not to  compete  with the
         Company (as competition defined in Section a.(i) above) for a period of
         one (1) year after his termination of employment,  and in consideration
         for  such  agreement  not to  compete  and as  reasonable  compensation
         therefor,  the  Company  shall  pay the  Executive  one (1)  times  the
         Executive's  then-current  base  salary in twelve  (12)  equal  monthly
         installments payable on the first day of each calendar month commencing
         on the first day of the month following  termination of employment.  In
         the event the  Executive  breaches this  provision  during the one year
         payment  period,  the Company  shall cease making  additional  payments
         hereunder."

         (7) A new Section 18 is hereby added which shall henceforth  provide as
follows:

         "18.  General  Release.  The  obligations  of the  Company  to make any
         post-termination  payments  under this  Agreement  (including,  without
         limitation,  under Sections 4.a.,  5.a.,  5.c. and 8.b.) are contingent
         upon the prior receipt by the Company of a general  release  reasonably
         satisfactory  to the Company  releasing  the  Company,  and all parties
         connected therewith,  from any and all claims and liabilities which the
         Executive may have against the Company,  including  any claims  arising
         out  of or  in  any  way  connected  with  the  Executive's  employment
         relationship  with the Company and its affiliates,  and the termination
         of said  employment  relationship.  In the event that the Executive (or
         the  Executive's  estate,  in the event of the death of the  Executive)
         fails to execute and deliver the general release described above within
         60 days of the date of receipt of the  release,  the  Company  shall be
         relieved of all  obligations to make any  post-termination  payments of
         any kind or nature under this Agreement."

         (8) In all other  respects,  the Employment  Agreement will continue in
full force and effect.

         IN WITNESS  WHEREOF,  the parties  hereto have executed this  Amendment
effective as of the date first above written.

CENTRAL MAINE POWER COMPANY

By:_________________________________            _____________________________
    Chairman, Board of Directors                Michael R. Cutter