ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT

On October 2, 2008, Maine Public Service Company ("MPS"), a wholly-owned subsidiary of Maine & Maritimes Corporation (AMEX: MAM) entered into a Joint Development Agreement with Central Maine Power Company ("CMP"). Under this agreement, the parties will continue their development of a 345 kV electric transmission line between the MPS system and the CMP system. Ongoing development activities include the acquisition of land contracts in the transmission corridor, the acquisition of necessary governmental permits and approvals, seeking commitments from generators, and obtaining approval from New England transmission owners to regionally allocate the costs of the project. Following the development phase, if certain conditions have been met, the parties intend to enter into a Joint Ownership Agreement to construct the line based on the terms outlined in Exhibit A of the Joint Development Agreement.

The Joint Development Agreement is filed as Exhibit 10.1 to this report and incorporated herein by this reference. The foregoing description of the material terms of the agreement is qualified in its entirety by reference to such exhibit.

ITEM 9.01 FINANCIAL STATEMENT AND EXHIBITS

(d) Exhibits.

Exhibit No.

10.1 Joint Development Agreement, dated October 2, 2008, between Maine Public Service Company and Central Maine Power Company

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