Me. Office of Public Advocate (OPA) asked state Supreme Court to ...

rates for residential and small business customers that were higher than they would have been under traditional rate-of-return regulation. OPA also alleged due-process violations. Five-year price cap plan increased monthly residential basic exchange rate $1.78 per line, raising Verizon’s annual revenue $12.5 million. OPA said PUC had “failed to hold a proper hearing to collect the evidence necessary to make a determination” whether price regulation plan would cost consumers more than traditional regulation. Proper course, it said, would have been for PUC first to design rate caps, then open 2nd docket for full traditional rate case to set starting point for cap system rather than design caps and set starting rates in single docket. OPA said it had asked PUC early in proceeding for separate hearings on Verizon’s revenue requirement but agency rejected request. Advocate also charged PUC had failed to collect sufficient cost information to justify rate increase, failed to follow due process on admission of evidence, acted contrary to law’s intent by allowing Verizon to use increased local revenues to cover costs of nonlocal services. PUC Chmn. Tom Welch said his agency had “followed the law and the proper procedures” in price cap case and said agency wasn’t legally required to have separate cap and rate proceedings. Welch said PUC’s interpretation of law was consistent with legislature’s procompetition intent. He said PUC’s decision would ensure Verizon could be competitive in local and toll markets. OPA didn’t seek injunction or expedited hearings so court probably won’t hold hearings until spring, which would mean decision in summer.