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.