PUC: Don't give $62.8M subsidy to FairPoint
The Maine Public Utilities Commission said FairPoint Communications should not receive a requested $62.8 million subsidy from the state that would help pay for basic telephone service in Maine’s most rural areas.
The Portland Press Herald reported that the PUC’s order is a non-binding decision and will be included in a larger report for the state Legislature, which plans to weigh in on FairPoint’s first-ever request for funds from the Maine Universal Service Fund.
If approved, the subsidy would help FairPoint fulfill the state's "provider of last resort" requirement by offering service to far-off, rural customers. The state requirement calls for telephone companies to provide basic services for everyone in their basic service area.
The subsidy would be funded through a rate increase in the Maine Universal Service Fund, which is funded by a fee on all phone bills in Maine and helps fund small rural telephone companies like Oxford Networks. The rate hike would cause that fee to increase by several dollars for every Maine cell phone and landline user.
PUC Chairman Tom Welch said while the commission was not convinced by FairPoint’s unprecedented request, he wouldn’t rule out a different arrangement to subsidize FairPoint.
The state Legislature is expected to weigh in on FairPoint’s subsidy request when it convenes next session.
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