An Act To Promote Affordable Telephone Service for Business and Residential Customers in Rural Maine
Maine Legislature, Session 121, LD 0265
Committee: Utilities and Energy
Sponsors: HALL, GROSE, DAMON, GAGNON, MAYO, BERRY, DUDLEY, FAIRCLOTH, MARLEY, PATRICK

12lst MAINE LEGISLATURE 
Legislative Document 
No. 265 
S.P.99 
In Senate, January 23,2003 
An Act To Promote Affordable Telephone Service for Business and 
Residential Customers in Rural Maine 
(EMERGENCY) 
Reference to the Committee on Utilities and Energy suggested and ordered printed. 
Presented by Senator HALL of Lincoln. 
Cosponsored by Representative GROSE of Woolwich and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: DAMON of Hancock, GAGNON of Kennebec, MAYO of Sagadahoc, 
Representatives: BERRY of Belmont, DUDLEY of Portland, FAIRCLOTH of Bangor, 
MARLEY of Portland, PATRICK of Rumford. 
Printed 00 recycled paper 
Emergency preamble. Whereas, Acts of the Legislature do not 
become effective until 90 days after adjournment unless enacted 
as emergencies; and 
Whereas, the Public Utilities Commission is proposing to 
adopt changes to its rules that will go into effect well before 
the Legislature adjourns and that are not designated as major 
substantive rules requiring approval by the Legislature before 
taking effect; and 
Whereas, the proposed rule changes will require that the 
State's incumbent local exchange carriers reduce the level of 
their in-state access rates and, 
in most cases, significantly 
increase the level of their basic local exchange telephone rates; 
and 
Whereas, as 
a 
result 
of 
federal 
and 
state 
access-rate 
policies, local customers are experiencing significant increases 
in local rates without corresponding reduction in toll rates; and 
Whereas, the increases in local exchange rates increase the 
threat to the State's universal service priorities, particularly 
in rural areas of the State; and 
Whereas, in the judgment of the Legislature, these facts 
create an emergency within the meaning of the Constitution of 
Maine 
and 
require 
the 
following 
legislation 
as 
immediately 
necessary for the preservation of the public peace, health and 
safety; now, therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. I. 35·A MRSA §7101·B, sub-§2, as enacted by PL 1997, c. 
259, §1, is repealed and the following enacted in its place: 
2. 
Access rates. 
After any decrease of interstate access 
rates by the Federal Government, the commission shall consider 
corresponding reductions in intrastate access rates, taking into 
account both the disadvantages to customers of intrastate access 
rates that exceed interstate access rates and the disadvantages 
to customers of increases in rates for local telephone service 
that may 
result 
from 
reductions in intrastate access 
rates. 
Within any 
year period, 
the 
commission may not require 
an 
access rate reduction that results in an increase of more than 
10% in the price of local telephone service or that results in an 
increase of more than 10'l-o in the collection rate for the state 
universal 
service 
fund. 
The 
commission 
may 
adopt 
rules 
to 
implement 
this 
subsection. 
Rules 
adopted 
pursuant 
to 
this 
subsection are major substantive rules as defined in Title 5, 
chapter 375. subchapter 2-A. 
Emergency clause. 
In view of the emergency cited in the 
preamble, this Act takes effect when approved. 
SUMMARY 
This 
bill 
requires 
the 
Public 
Utilities 
Commission 
to 
balance the potentially conflicting access rate and toll rate 
policies and to not implement access rate reductions when the 
effect of access rate decreases is to compel an increase in local 
rates or the Universal Service Fund of more than 10%.