AUGUSTA – Several parties involved in the proposed sale of Verizon’s land lines in northern New England to FairPoint Communications agreed Thursday to amend a settlement accord they had reached last week.

The decision to amend the settlement agreement came in response to strong encouragement to do so from the Maine Public Utilities Commission at the end of a hearing on the document Thursday.

The commission asked the parties to clear up a number of questions it has with the settlement, including about the standard of quality to which FairPoint will be held should the sale go through.

The proposed sale settlement, known as a stipulation, was the result of private negotiations among Verizon, FairPoint, the state Office of the Public Advocate, PUC mediation staff, AARP and several smaller Maine telephone companies.

It addresses some, but not all, of the issues in the case involving the $2.7 billion sale of Verizon’s 1.6 million access lines, alone with Internet service, in Maine, New Hampshire and Vermont to Charlotte, N.C.-based FairPoint. Verizon would retain its wireless phone operations in the region.

Thursday’s hearing was held to determine whether the parties endorsing the settlement agreement represent a broad spectrum of interests, and whether the process that led to the stipulation was fair to all parties.

A few intervening parties in the case, specifically the Communication Workers of America and the International Brotherhood of Electrical Workers, did not agree to the settlement. They asked the PUC for an evidentiary hearing to contest provisions in the settlement regarding FairPoint’s projected revenues, expenses, capital expenditures and cash flows.

The PUC denied that request Thursday.

“Not holding an evidentiary hearing does not diminish [the labor unions’] ability to argue against the stipulation,” PUC Chairman Kurt Adams said. “We need to push this case forward.”

FairPoint Attorney Joe Donahue said the revised settlement accord will be submitted by 5 p.m. today. In addition to the clarifications the PUC requested, Donahue promised to amend a paragraph stating that FairPoint could make future transactions of $100 million or less without PUC approval.

“You’re asking us to tie our hands here,” Adams said, raising his voice. “You could do three $100 million transactions and be exactly where you were before this settlement.”

Adams was referring to the original purchase price, which was reduced by $235.5 million in the stipulation.

The commission scheduled a hearing on the amended agreement for 10 a.m. Wednesday, Dec. 26. After that hearing, the PUC will begin its final deliberations on the case. They likely will not make a final decision until next year.

FairPoint saw Thursday’s action as “one step toward the finish,” said Jeff Nevins, the Charlotte, N.C.-based company’s northeastern spokesman.

“We continue to work toward a close. We’re optimistic and we’re committed to serving the people of Maine,” said Nevins.

The Maine PUC’s review is being watched closely in neighboring New Hampshire and Vermont, where regulators must also approve the sale if it is to be completed.

The Associated Press contributed to this report.

aravana@bangordailynews.net

990-8133