State regulators are considering whether to link FairPoint Communications' service problems to the renewal of a plan giving the company more leeway to set rates.
As the Public Service Board opened an investigation into FairPoint’s residential repair delays and a recent E-911 outage, its chairman raised the question of whether those issues should delay a decision on the company’s Incentive Regulation Plan. The plan caps rates for basic service, but allows FairPoint to set and change other rates without board approval.
It went into effect in 2012 and the board is currently weighing whether to renew it for five years.
During a conference call with the board on Tuesday, FairPoint lawyer Peter Zamore argued at length against any connection.
“It would be inappropriate to essentially base provisions for a five-year framework for regulation on current service quality,” he said.
Zamore argued that approving the plan would not hinder the board’s ability to address service quality issues.
Jim Porter, telecommunications director for the Department of Public Service, which requested the service quality investigation, told the board the department does not believe the two need to be linked.
The board will also consider whether to widen its investigation beyond the repair delays and the E-911 outage and consider other service quality issues.
Chairman James Volz listed numerous complaints he says the board has received about FairPoint.
The Department of Public Service petition for a FairPoint investigation was limited to repair delays and the E-911 outage, but the board could decide to consider additional issues.
The International Brotherhood of Electrical Workers, which is currently on strike against FairPoint, and the Vermont E-911 board are seeking intervener status in the investigation.
