FairPoint fights rebate order
The Maine Public Utilities Commission and FairPoint are butting heads again, as the telecommunications company requested the U.S. Bankruptcy Court in New York City to overrule the PUC's order seeking $8 million in rebates to consumers for bad service.
The court ordered a temporary stay of the PUC ruling and set a Dec. 9 hearing, according to New Hampshire Business Review. The conflict pits bankruptcy court authority against regulatory authority in a messy transition since FairPoint took over Verizon's landline operation in northern New England last winter. Beset by technical problems that affected customer service, FairPoint filed for bankruptcy in October, a day before the PUC imposed the $8 million rebate, to be paid to customers over the course of a year through a $1.72 per line reimbursement.
The bankruptcy filing issued a stay of all proceedings; the PUC is arguing those orders should be reviewed on a case-by-case basis, according to NHBR.
In a related matter, the New York bankruptcy court has ordered FairPoint to begin mediation in a long-standing dispute with competitor GWI of Biddeford over billing charges dating back to 2003.
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