An Act To Increase Competition and Ensure a Robust Information and Telecommunications Market
Maine Legislature, Session 127, LD 0466
Committee Amendment CA_B_H656 (House)
Amends: 35-A MRSA §7102, 35-A MRSA §7104, 35-A MRSA §7221, 35-A MRSA §7222-A, 35-A MRSA §7225

COMMITTEE AMENDMENT "g" to H.P. 305, L.D. 466, Bill, "An Act To 
Increase Competition and Ensure a Robust Information and Telecommunications Market" 
Amend the bill by striking out everything after the enacting clause and inserting the 
following: 
'Sec. 1. 35-A MRSA §7102, sub-§6-A is enacted to read: 
6-A. Price cap incumbent local exchange carrier or price cap ILEC. "Price cap 
incumbent local exchange carrier" or "price cap ILEC" means an incumbent local 
exchange carrier that agreed to accept Connect America Fund Phase II support pursuant 
to the Federal Communications Commission's Report and Order released on December 
18, 2014, in In the Matter of Connect America Fund, WC Docket No. 10-90, FCC 14-
190, for locations within the State on or before January 1, 2016 and does not receive 
funding from a state universal service fund under section 7104. 
Sec. 2. 35-A MRSA §7104, sub-§2, as amended by PL 2011, c. 623, Pt. B, §13, 
is further amended to read: 
2. General availability. The commission shall seek to ensure that provider of last 
resort service is available at reasonably comparable rates to consumers throughout all 
areas of the State at reasoaably eomparable rates in which the service is available 
pursuant to section 7221. 
Sec. 3. 35-A MRSA §7221, sub-§§4 to 7 are enacted to read: 
4. 
Removal of the provider of last resort service obligation in select 
municipalities. This subsection governs the removal of the obligation of a price cap 
ILEC to provide provider of last resort service in certain municipalities. 
A. Thirty days after the effective date of this subsection a price cap ILEC is not 
obligated to provide provider oflast resort service in the following municipalities: 
(1) Portland; 
(2) Lewiston; 
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(3) Bangor; 
(4) South Portland; 
(5) Auburn; 
(6) Biddeford; and 
(7) Sanford. 
B. Every 6 months after the effective date of this subsection, the obligation of a price 
cap ILEC to provide provider of last resort service will cease in 5 of the 
municipalities listed in this paragraph. The order in which a price cap ILEC is 
relieved of the obligation to provide provider of last resort service in a municipality 
under this paragraph is as follows: 
(1) Scarborough; 
(2) Gorham; 
(3) Waterville; 
(4) Kennebunk; 
(5) Cape Elizabeth; 
(6) Old Orchard Beach; 
(7) Yarmouth; 
(8) Bath; 
(9) Westbrook; 
(10) Freeport; 
(11) Brewer; 
(12) Kittery; 
(13) Windham; 
(14) Brunswick; and 
(15) Augusta. 
C. For 5 years from the date a price cap ILEC is relieved of the obligation to provide 
provider of last resort service in a municipality in accordance with this subsection, 
the price cap ILEC shall continue to offer to each provider of last resort service 
customer in that municipality to whom it was providing the service on the date the 
obligation ceased a telephone service with the same rates, terms and conditions as it 
provides to provider of last resort service customers to whom it is obligated to 
provide provider of last resort service. 
D. Prior to the removal of the obligation to provide provider of last resort service in 
any municipality pursuant to this subsection, the commission shall hold a public 
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COMMITTEE AMENDMENT "B "to H.P. 305, L.D. 466 
meeting in the municipality to allow customers of the price cap ILEC to obtain 
information about the upcoming changes to service. 
E. The price cap ILEC shall give advance notice in its monthly billing statement to 
each customer in a municipality listed in this subsection in which the obligation to 
provide provider of last resort service will be removed. That notice must include the 
following information: 
(1) An existing customer will still be provided service for 5 years from the date 
on which the obligation to provide provider of last resort service is removed at 
the same rates, terms and conditions as the price cap ILEC provides to provider 
of last resort service customers to whom the price cap ILEC is obligated to 
provide provider of last resort service; and 
(2) The date, time and location of the public meeting required under paragraph 
D, which will be hosted by the commission in the municipality. 
5. Relief of provider of last resort service obligation. After a price cap ILEC has 
been relieved of the obligation to provide provider of last resort service in all the 
municipalities listed in subsection 4, the price cap ILEC may petition the commission 
under this subsection to be relieved of its provider of last resort service obligation in one 
or more additional municipalities. 
A. The commission shall approve the petition if the commission finds: 
(1) With respect to a municipality, that, pursuant to the following standards. 
there is sufficient competition in that municipality to ensure access to affordable 
telephone service by households in the municipality: 
(a) In addition to the price cap ILEC, there is at least one wireline-facilities-
based voice network service provider that offers service to at least 95% of the 
households in the municipality; and 
(b) One or more mobile telecommunications services providers offer, on a 
combined basis, mobile telecommunications services to at least 97% of the 
households in the municipality. 
B. 
The commission shall establish by rule the sources of information and a 
methodology it will use to reasonably calculate the percentage of households served 
by 
wireline-facilities-based 
voice 
network 
service 
providers 
and 
mobile 
telecommunications services providers for purposes of making a determination under 
paragraph A. Upon request of the commission. a voice network service provider 
must provide the commission with such information as the commission determines 
necessary to evaluate the existence of sufficient competition for the purposes of 
paragraph A. 
Competitive information about the extent of service provided by 
wireline-facilities-based 
voice 
network 
service 
providers 
and 
mobile 
telecommunications services providers used to make a determination under paragraph 
A is confidential and is not a public record under Title 1, section 402, subsection 3 
and may not be disclosed to any person outside the commission. In developing the 
methodology under this paragraph, the commission may allow for reasonable 
adjustments to the information it receives if it is aware that actual availability of 
competitive services differs from what is reflected in the information. If the 
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COMMITTEE AMENDMENT 4J, "to H.P. 305, L.D. 466 
application of the commission's methodology results in a finding that the standards in 
paragraph A, subparagraph (1) have been met, there is a rebuttable presumption of 
sufficient competition in a municipality to ensure access to affordable telephone 
service by households in the municipality, 
C. Ninety days prior to filing a petition under this subsection, a price cap ILEC shall 
notify the commission and the Office of the Public Advocate of the price cap ILEC's 
intent to file a petition. The price cap ILEC shall also give advance notice of its 
intent to file a petition in its monthly billing statement to each customer in the 
municipality in which it will be seeking relief from the obligation to provide provider 
of last resort service. 
The commission shall hold a public hearing in each affected municipality to allow 
customers of the price cap ILEC as well as other residents of the affected 
municipality to testify. The price cap ILEC shall give advance notice of the hearing 
to each customer in the municipality in its monthly billing statement and publish this 
notice in a newspaper of general circulation in that municipality. 
D. The commission shall issue an order granting or denying a petition within 180 
days of receiving a petition under this subsection, except that the commission, at its 
discretion, may extend this period for up to an additional 30 days. 
E. For 5 years from the date the commission issues an order granting a price cap 
ILEC relief from the obligation to provide provider of last resort service in a 
municipality, the price cap ILEC shall continue to offer to each provider of last resort 
service customer in that municipality to whom it was providing the service on the 
date of that order a telephone service with the same rates, terms and conditions as it 
provides to provider of last resort service customers to whom it is obligated to 
provide provider of last resort service. 
For purposes of this subsection, "voice network service provider" has the same meaning 
as in section 7104. 
6. Abandonment. A price cap ILEC may not discontinue, reduce or impair the 
service that it provides in a municipality, or part of a municipality, where it has 
previously served as the provider of provider of last resort service unless the commission 
approves the discontinuance, reduction or impairment. The commission may approve the 
discontinuance, reduction or impairment only if it finds that neither the present nor future 
public convenience and necessity will be adversely affected by such discontinuance, 
reduction or impairment of service. 
In granting its approval under this subsection, the commission may impose such terms, 
conditions or requirements as in its judgment are necessary to protect the public interest. 
A price cap ILEC abandoning all or part of its plant, property or system or discontinuing 
service pursuant to authority granted by the commission under this subsection is deemed 
to have waived all objections to the terms, conditions or requirements imposed by the 
commission in its approval. A discontinuance approved under this subsection is not 
subject to further approval under section 1104. 
7. Rules. Rules adopted pursuant to this section are major substantive rules as 
defined in Title 5, chapter 375, subchapter 2-A. 
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Sec. 4. 35-A MRSA §7222-A is enacted to read: 
§7222-A. Rates 
1. Price cap ILEC rate requirements. The provisions of sections 304 and 307 do 
not apply to a price cap ILEC with respect to the rates for provider of last resort service. 
A price cap ILEC shall post on its publicly accessible website the rates, terms and 
conditions for provider of last resort service. Rates for provider of last resort service 
provided by the price cap ILEC are governed by the following: 
A. On the effective date of this paragraph, the monthly charge for provider of last 
resort service offered by a price cap ILEC may not exceed $20 for any residential 
customer. A price cap ILEC may, beginning one year after the effective date of this 
paragraph, increase rates for its provider of last resort service by up to 5% annually; 
and 
B. Low-income customers of a price cap ILEC must receive a monthly discount of 
$3.50 in addition to any applicable federal subsidy for voice service for low-income 
customers. 
For the purposes of this subsection, "low-income customer" means a customer who 
qualifies for assistance under the Federal Communications Commission's Lifeline 
program, as defined in 47 Code of Federal Regulations, Section 54.401. 
Sec. 5. 35-A MRSA §7225, sub-§2, as enacted by PL 2011, c. 623, Pt. A, §18, is 
amended to read: 
2. Commission review of service quality. The commission by rule shall establish 
provider of last resort service quality standards. The commission may impose penalties 
or require a service provider to provide rebates or rate reductions if the commission finds, 
after investigation, that a service provider has failed to meet service quality standards. If 
a price cap ILEC fails to meet any service quality standard and the commission concludes 
after investigation that the failure to meet the service quality standard is due to factors 
within the control of the price cap ILEC, the commission shall, by order, direct the price 
cap ILEC to take such steps as the commission determines necessary to improve service 
to the level needed to meet the standard. If the provider fails to comply with the 
commission's order, the commission shall impose a penalty in accordance with section 
1508-A, subsection 1, paragraph A in an amount sufficient to ensure compliance with that 
order. Nothing in this section limits the commission's authority to direct a price cap 
ILEC to act to improve service under any other provision of this chapter. 
Sec. 6. Rules. The Public Utilities Commission shall provisionally adopt major 
substantive rules, as defined in the Maine Revised Statutes, Title 5, chapter 375, 
subchapter 2-A, to implement Title 35-A, section 7221, subsections 4 to 6 by January 1, 
2017. 
Sec. 7. Commission review of effect of relief of provider of last resort 
service obligation. By January 15, 2020 and again by January 15, 2022, the Public 
Utilities Commission shall submit to the joint standing committee of the Legislature 
having jurisdiction over utilities and energy matters a report related to the removal of the 
provider of last resort service obligation for a price cap ILEC under the Maine Revised 
Statutes, Title 35-A, section 7221, subsections 4 and 5. A report under this section must 
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list municipalities in which the obligation to provide provider of last resort service has 
ceased pursuant to Title 35-A, section 7221, subsection 4, paragraph B or in which the 
commission has approved in accordance with Title 35-A, section 7221, subsection 5 the 
removal of a price cap ILEC's obligation to provide provider of last resort service. A 
report under this section must also include the effect of the removal on former provider of 
last resort service customers, the price cap ILEC's workforce, the maintenance and status 
of the copper line network, public safety and the cost, features and availability of 
telephone service, including service to the hearing impaired, and broadband service. 
Each report may include recommendations for related legislation. The joint standing 
committee of the Legislature having jurisdiction over utilities and energy matters may 
report out a bill relating to provider of last resort service to the Second Regular Session of 
the 129th Legislature and may also report out a bill relating to provider of last resort 
service to the Second Regular Session of the 130th Legislature. At least 30 days before 
submitting a report to the committee, the commission shall post the report on its publicly 
accessible website and allow persons to submit to the commission written comments on 
the report. The commission shall submit to the committee with each report all comments 
that it received on the respective report. If the commission in either report makes a 
recommendation to repeal or modify Title 35·-A, section 7221, subsection 5, it may not, 
notwithstanding that subsection, accept a petition submitted in accordance with that 
subsection until 90 days after the adjournment of the session to which the report is 
submitted. 
Sec. 8. Commission legal review; report. The Public Utilities Commission 
shall examine all laws and rules of this State relating to provider of last resort service as 
they apply to a price cap ILEC, as defined in the Maine Revised Statutes, Title 35-A, 
section 7102, subsection 6-A, and determine whether any changes may be needed to 
conform those laws and rules to the provisions of this Act. The commission shall submit 
a report of its findings, together with any necessary draft legislation to implement its 
recommendations, to the joint standing committee of the Legislature having jurisdiction 
over utilities and energy matters by December 15, 2016. The committee may report out a 
bill relating to provider of last resort service to the First Regular Session of the 128th 
Legislature. 
Sec. 9. 
Commission's annual report. 
Through 2024, the Public Utilities 
Commission shall include in its annual report pursuant to the Maine Revised Statutes, 
Title 35-A, section 120, subsection 7 information on provider of last resort service, 
including in which municipalities the obligation to provide provider of last resort service 
has ceased pursuant to Title 35-A, section 7221, subsection 4, paragraph B; the 
municipalities in which the commission granted approval of a petition in accordance with 
Title 35-A, section 7221, subsection 5; the municipalities, if any, in which the 
commission approved the discontinuance, reduction or impairment of service under Title 
35-A, section 7221, subsection 6; and any complaints the commission may have received 
regarding the costs of or a lack of access to reliable basic telephone service in 
municipalities from which the provider of last resort service obligation has been 
removed.' 
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COMMITTEE AMENDMENT "8 "to H.P. 305, L.D. 466 
SUMMARY 
This amendment is the minority report of the committee. It replaces the bill, which is 
a concept draft. The amendment does the following: 
1. It defines the term "price cap incumbent local exchange carrier," or "price cap 
ILEC"; 
2. It provides that, 30 days after the applicable provision becomes effective, the price 
cap ILEC's provider of last resort service obligation will cease in Portland, Lewiston, 
Bangor, South Portland, Auburn, Biddeford and Sanford; 
3. It provides that, every 6 months from the date the applicable provision becomes 
effective, the obligation of a price cap ILEC to provide provider of last resort service will 
cease in 5 of the additional 15 municipalities listed in the amendment, in order; 
4. It requires the price cap ILEC to continue to offer to each provider of last resort 
service customer to whom it was providing the service on the date the obligation to 
provide the service was removed a telephone service with the same rates, terms and 
conditions as it provides to provider of last resort service customers to whom it is 
obligated to provide provider of last resort service, for 5 years from the date the 
obligation was removed; 
5. It requires the Public Utilities Commission to host a public meeting in each 
municipality affected by a proposed change in provider of last resort service to allow 
customers of a price cap ILEC to obtain information about the upcoming changes to 
service; 
6. It requires that affected provider of last resort service customers be given advance 
notice of a change in provider of last resort service in the price cap ILEC's monthly 
billing statement, along with the date, time and location of a public meeting to be hosted 
by the Public Utilities Commission; 
7. It allows, after a price cap ILEC has been relieved 'of its obligation to provide 
provider of last resort service in all the municipalities listed in the amendment, the price 
cap ILEC to petition the Public Utilities Commission to be relieved of its obligation in 
one or more additional municipalities upon a finding that, in addition to the incumbent 
local exchange carrier, there is at least one wireline-facilities-based voice network service 
provider that offers service to at least 95% of the households in the municipality and one 
or more mobile telecommunications services providers that on a combined basis offer 
mobile telecommunications services to at least 97% of the households in the 
municipality; 
8. It requires the Public Utilities Commission to establish by rule the sources of 
information it will use, as well as the methodology it will employ, to make determinations 
on petitions; 
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9. It requires a price cap ILEC to provide 90 days' advance notice of its intent to file 
a petition; the notice must be provided to the Public Utilities Commission, the Office of 
the Public Advocate and each customer in the municipality in which the price cap ILEC 
will be seeking relief from the provider of last resort service obligation; 
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COMMITTEE AMENDMENT"~ "to H.P. 305, L.D. 466 
10. It requires the Public Utilities Commission to hold a public hearing in each 
affected municipality to allow customers and residents to testify and requires that notice 
of the hearing be published by the price cap ILEC in a newspaper of general circulation; 
11. It requires the Public Utilities Commission to make a determination on a petition 
within 180 days, except that the commission may at its discretion extend this period for 
up to an additional 30 days; 
12. It prohibits a price cap ILEC from discontinuing, reducing or impairing the 
service that it provides in a municipality, or part of a municipality, where it has 
previously served as the provider of provider of last resort service, unless the Public 
Utilities Commission approves the discontinuance, reduction or impairment; 
13. 
It allows the Public Utilities Commission, if it approves a discontinuance, 
reduction or impairment of service, to impose terms, conditions or requirements to protect 
the public interest; 
14. It requires the Public Utilities Commission to adopt major substantive rules to 
implement the provisions related to the removal of provider of last resort service 
obligations and the abandonment process; 
15. It specifies the rate a price cap ILEC may charge a provider of last resort service 
customer, which is not to exceed $20 for a residential customer, except that, after one 
year after the applicable provision becomes effective, the price cap ILEC may raise the 
rate by no more than 5% annually; 
16. It requires that low-income customers, which are those who qualify for assistance 
under the Federal Communications Commission's Lifeline program, receive a monthly 
$3 .50 discount; 
17. It requires the Public Utilities Commission to issue an order directing that service 
quality be addressed if a service quality standard is not met; 
18. It requires the Public Utilities Commission to impose a penalty if a price cap 
ILEC fails to comply with an order directing that service quality be addressed; 
19. It requires the Public Utilities Commission to submit to the joint standing 
committee of the Legislature having jurisdiction over energy and utilities matters a report 
in 2020 and again in 2022 that includes a list of the municipalities in which the provider 
of last resort service obligation has been removed, as well as the effects of the removal on 
former provider of last resort service customers, the price cap ILEC's workforce, the 
maintenance and status of the copper line network, public safety and the cost, features 
and availability of telephone service, including service to the hearing impaired, and 
broadband service. 
Each report may include recommended legislation, and the 
committee may report out a bill for each report to the Legislature; 
20. It prohibits the Public Utilities Commission from accepting a petition to remove 
a provider of last resort service obligation, until 90 days after the adjournment of the 
legislative session in which a provider of last resort service report due in 2020 or 2022 
was submitted, if in its report it makes any recommendations to modify or remove the 
petition process; 
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COMMITTEE AMENDMENT" f!J "to H.P. 305, L.D. 466 
21. It requires the Public Utilities Commission to examine all laws and rules of the 
State relating to provider of last resort service as they apply to a price cap ILEC and 
determine whether any changes may be needed to address the changes created by this 
amendment. It requires the Public Utilities Commission to submit a report of its findings 
on this process, together with any necessary draft legislation to implement its 
recommendations, to the joint standing committee of the Legislature having jurisdiction 
over utilities and energy matters by December 15, 2016. The committee may report out a 
bill related to provider of last resort service to the First Regular Session of the 128th 
Legislature; and 
22. 
It requires that as part of its annual report, until 2024, the Public Utilities 
Commission include information related to the changes in provider of last resort service. 
FISCAL NOTE REQUIRED 
(See attached) 
COMMITTEE AMENDMENT 
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Approved: 03/29/16 
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LD466 
LR 1389(02) 
An Act To Increase Competition and Ensure a Robust Information and Telecommunications Market 
Fiscal Note for Bill as Amended by Committee Amendment ,R,( H-- {,S'lo) 
Committee: Energy, Utilities and Technology 
Fiscal Note Required: Yes 
Fiscal Note 
Potential current biennium revenue increase - Other Special Revenue Funds 
Minor cost increase - Other Special Revenue Funds 
Fiscal Detail and Notes 
Any additional costs to the Public Utilities Commission (PUC) to conduct public meetings, examine service quality 
reports of a price cap incumbent local exchange carrier (ILEC) and conduct rulemaking are expected to be minor and,,. 
can be absorbed within existing budgeted resources. The bill requires the PUC to impose a penalty on a price cap 
ILEC if it fails to comply with a PUC order concerning service quality requirements. There is no estimate at this time 
on the amount of revenue to the PUC that would be generated by these penaJties. 
LR1389(02) - Fiscal Note - Page I of I