PUC probes FairPoint's use of federal money
The Maine Public Utilities Commission has started an investigation into FairPoint Communications' use of federal money to subsidize telephone and Internet service to rural customers.
The Bangor Daily News reported the investigation, which started May 21, follows a complaint by the Maine Office of the Public Advocate that alleges the company inappropriately retained over $2 million in money from the federal Universal Service Fund.
FairPoint spokesman Jeffrey Nevins told the paper it is the company's policy not to comment on pending litigation or regulatory activities.
The company contested the public advocate's allegation in a February letter, the paper reported.
PUC Chairman Tom Welch told the paper that he does not yet have an opinion on the case. Should the PUC find those funds were used inappropriately, the commission can order FairPoint to provide bill credits to customers to make up the difference.
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