Sec. 1. 35-A MRSA §7303-A is enacted to read:

§7303-A.__Basic service calling areas

Customers of a local exchange carrier who receive local, flat- rate, basic service within a single exchange area may petition the commission to expand their basic service calling area.__Upon written petition by 5 or more customers of a local exchange carrier, the commission shall open a proceeding to expand the basic service calling area.__The commission shall hold at least one public hearing.__The commission, within 4 months of the filing of the written petition, shall issue an order establishing an expanded basic service calling area for the area served by the petitioning customers.__The commission's order must direct the carrier to file within one year a financial report on the costs of expanding the basic service calling area.__Upon receipt of the carrier's filing, the commission shall conduct an investigation to determine the costs, if any, attributable to the expansion.__ The commission may only allow recovery of these costs if the carrier demonstrates that nonrecovery of the costs will result in the carrier earning less than a reasonable rate of return.

SUMMARY

This bill requires the Public Utilities Commission, on petition, to expand a basic service calling area that encompasses only a single exchange. The commission may permit the carrier who is required to expand a basic service calling area to recover any associated costs only if the commission determines that nonrecovery of the costs would result in the carrier earning less than a reasonable rate of return.