WCAX.COM Local Vermont News, Weather and Sports-Vermont Investigates FairPoint

Vermont Investigates FairPoint

Montpelier, Vermont - July 14, 2009

Vermont is putting FairPoint on notice. The state filed a petition with the Public Service Board to determine if FairPoint can continue operating reliably in the state. The Public Service Department says FairPoint is not living up to expectations and it's time to find out exactly why.

Vermont has taken a rare step by requesting a "just cause" petition against FairPoint Communications. The petition asks the Public Service Board to investigate the company's business plan.

"We have for months now listened to and worked with consumers that are going through this unprecedented period of suffrage, where their service is declining, where they can't get the service they need, reliability has gone downhill, and it's called into question their ability to be the primary predominant service provider in the state," said

Steve Wark of the Vt. Public Service Dept.

The Department of Public Service says it understands FairPoint is in a period of transition since taking over Verizon's land line operations in Vermont, New Hampshire and Maine last year. But it says the company has not lived up to expectations and last week issued a report that was overly optimistic and incomplete.

"It's no secret that FairPoint is struggling," Wark said. "Can they emerge from this is really the question that we need to be able to answer and we need more facts than the ones we received last week to answer that question."

FairPoint is defending itself. A spokesperson was not available for an on-camera interview but released a statement that reads in part, "We don't believe that this was a necessary step ... We recognize that we need to continue to improve our systems performance and we are doing just that."

FairPoint says it believes the best way to move forward is to continue operating so it can work out all of its system issues.

The company is trying to improve service, expand broadband access and restructure its debt after losing nearly $8 million in the first quarter of this year.

The Public Service Board says asking for this investigation puts FairPoint on the record so everyone gets a clear picture of what is happening at the company.

And this issue is not just limited to Vermont, it looks like Maine and New Hampshire might be looking to do something similar.

The Department of Public Service did not want to get into the details of a possible outcome if the company is found to be inadequate, but in it press release it did say that FairPoint's license to operate as a regulated utility in the state is at stake. What exactly that means is unclear since it seems impossible for the state to keep the company from operating since it is the sole telecommunications provider for many people.

Bianca Slota - WCAX News