David Shaw, general counsel for UTOPIA, told legislators the agency has experienced "externalities" since the project began — forces outside of UTOPIA's control that have caused the business plan to "shift by approximately two to three years."

Shaw cited the federal lawsuit filed against UTOPIA by Qwest in June 2005 that accused the agency of creating unfair competition because UTOPIA contractors can sell communications services at below-market prices.

UTOPIA also had trouble getting pole-attachment agreements from owners to add wires and equipment to power poles, and a federal loan for the project was delayed, he said.

Royce Van Tassell, vice president of the Utah Taxpayers Association, said he doesn't buy those excuses.

"(UTOPIA) suggested a rather artful term, 'externalities,' which sounded suspiciously like 'competition happened,'" Van Tassell said. "This is a competitive environment.... If their business model was based on assumptions so lowly that they didn't account for the fact that competitors would respond... it's hard for me to have a great deal of confidence in their suggestion that they're just two years behind."

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Contributing: Tad Walch

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E-mail: jpage@desnews.com