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July 29, 2009

PUC upholds fines against FairPoint

The Maine Public Utilities Commission rejected FairPoint Communication's argument that technical problems encountered in its switch from Verizon's network to its own were an "extraordinary event" and cause for waiving fines attached to its poor performance.

The commission refused to waive $400,000 in penalties assessed against the North Carolina-based telecommunications company for February and March, but agreed to give it more time to prove its case against pending penalties assessed in April, May and June, according to the Kennebec Journal. The Maine-based penalties are a portion of nearly $3 million the company's owes throughout northern New England for failure to provide adequate service to smaller carriers affected by the messy switchover.

FairPoint is attempting to address the problems and asked for the waivers to preserve capital, according to the Bangor Daily News.

Executives also appeared before the New Hampshire Public Utilities Commission yesterday to account for its poor service in that state, according to the Associated Press. FairPoint President Peter Nixon testified that service in New Hampshire has improved, but he could not say when the quality would match Verizon's. The New Hampshire commission's staff was directed to investigate and issue a report by Aug. 7.

 

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