AUGUSTA – The state Utilities and Energy Committee heard a bill on Thursday that would help municipalities create low-cost Internet networks, an idea modeled after the decade-old system in Hermon.

Sen. Joe Perry, D-Penobscot County, sponsored LD 1767, a bill that would establish an Education and Municipal Technology Advisory Committee, an 11-member group composed of educators, municipal leaders and members of the public with a goal of developing community networks around the state.

While many of the legislative committee members expressed support for the Hermon initiative, some questioned the need for a new state technology committee, while others wondered if the proposed $100,000 could be funded from sources other than the general fund.

“I’m fascinated by the work in Hermon,” Rep. Seth Berry, D-Bowdoinham, said before asking Hermon representatives to comment on the state planning office’s report on municipal broadband. “I have been following it for a while.”

The town of Hermon implemented its municipally-owned network, Hermon.net, 12 years ago, said Jeff Wheeler, director of technology for the Hermon school department.

In Hermon, the municipal and school departments work together sharing project costs to provide free dial-up Internet access to town residents, employees and students.

In addition to free Internet access the town provides to residents, the school runs a cost-efficient program using older, discarded computers that are connected to a central, high-speed server.

Instead of upgrading software or computers every few years, Wheeler upgrades the server, saving him time and the town a lot of money. One server costs around $2,000 and can run a maximum of 40 users at a time. Wheeler has estimated that more than 1,000 residents log on to Hermon.net each day.

“What happened in Hermon could have a tremendous effect in Washington County and elsewhere in the state,” said Tony Brinkley, a University of Maine associate professor who reported the bill had the full support of the university system. “We see this as an economic development tool. This network does not bring broadband into the community, but it brings it to homes where it was previously cost-prohibitive. Once broadband gets into a place like Dexter, it’s how it gets to all the homes in Dexter.”

Some legislators asked the university and Hermon representatives to consider a relationship with ConnectME, Gov. John Baldacci’s initiative, and perhaps seek funding through that program. Others worried that the proposed technology committee would require more funds in the future after its $100,000 startup cost.

A representative from the Telephone Association of Maine opposed the bill, stating schools receive state and federal funds collected from telecommunication customers through surcharges to fund support network connections of schools and libraries.

The representative said the bill does not support the intentions of the telecommunications funding program.

Rep. Herbert Adams (D-Portland) asked Wheeler if Hermon’s network could work in a school district like Portland, citing the 5,000 population difference. Wheeler said he believed it could and said he has not experienced an “upper-ceiling” of functionality.

Several Maine communities have access to broadband, but lack the expertise on how to provide a cost-effective network to its residents, said Tony Vigue, an expert in the industry who spoke as a resident of Standish. Vigue said Standish has the materials for a great network, but needs technical assistance.

“It would be so helpful for us to have an organization we could partner with on how to set up a network,” he said.