BIDDEFORD — On Tuesday, the Maine Public Utilities Commission decided to open an investigation into Biddeford-based telephone company XATel Communications. The PUC will look into issues related to how the company dealt with its customers during a recent disconnection of services due to a billing dispute with FairPoint Communications.

The investigation will focus on whether XATel properly notified customers prior to a disconnection in service for a day or two around Feb. 15 when FairPoint disconnected long distance service to XATel customers. Service had since been reconnected through a third party, but the company’s phone message this morning stated that crews were trying to reconnect service as of 6:30 a.m.

State rules require telephone service providers to notify their customers whenever there is the possibility of a disconnection of telephone service, to allow customers the option of switching to a new provider.

When interviewed earlier in the month, XATel co-owner Roland Lawler said he didn’t notify customers about the possible disconnection because he was afraid of losing customers.

The disconnection was allowed by the PUC because XATel hadn’t made payments on an approximately $78,000 bill to FairPoint as ordered by the PUC, said FairPoint spokesman Jeff Nevins.

This order was made after the PUC investigated billing discrepancies brought forward by XATel against FairPoint. Some points were found in favor of XATel, said PUC Chairman Thomas Welch, but not all.

Although the company was allowed to disconnect local and E911 services along with long distance service, it didn’t do so, said Nevins, because the company was concerned XATel hadn’t notified its customers about the possibility of a disruption in services.

He said the company intends to move forward with the disconnection of all services to XATel customers at some point, but is working with the PUC out of concern for XATel customers so that they are not left without service.

In addition to phone service, the company also offers Internet connection, Xpress America. The website, xpressamerica.net, was down as of press time and the phone number for the Internet service was out of service.

Lawler said he disagrees with the PUC’s finding of the amount of money his company owes XATel. He pointed out that numerous companies like his own have had disagreements with FairPoint’s billing practices.

Lawler said if other billing discrepancies were cleared up, FairPoint would owe his company money.

David Bourque, a co-founder and former co-owner of XATel, said in an email last week, by finding some points in favor of FairPoint, the PUC is also to blame for putting his company in the current situation of losing 50 percent of its original customer base and an uncertain future.

Bourque, a city councilor in Biddeford, is no longer a shareholder of XATel. He transferred his shares to his wife, Diane, when the company failed an attempt to get a contract with the City of Biddeford to provide telephone service.

In addition to the notification issue, the PUC is also looking into a report from a XATel customer that the company did not honor a request to transfer the customer’s telephone number to another service provider, said Welch. That’s a violation of both federal and state regulations, he said.

The PUC will hold a public hearing regarding XATel on Tuesday, March 6 at 1 p.m. in Augusta.

According to Chairman Welch, if the investigation determines XATel did not properly notify its customers about the possibility of a disconnection of services, the commission could withdraw the company’s certificate to provide service.

— Staff Writer Dina Mendros can be contacted at 282-1535, Ext. 324 or dmendros@journaltribune.com.