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South Dakota Public Utilities Commission Meeting
March 23, 2010, at 9:30 A.M. CDT
Room 413, Capitol Building
Pierre, South Dakota

NOTE:  If you wish to join this meeting by conference call, please contact the Commission at 605-773-3201 by 5:00 p.m. CDT on Monday March 22, 2010.  Lines are limited and are given out on a first come, first served basis, subject to possible reassignment to accommodate persons who must appear in a proceeding. Ultimately, if you wish to participate in the Commission Meeting and a line is not available you may have to appear in person.  

NOTE:  To listen to the Commission Meeting live please go to the PUC's Web site www.puc.sd.gov and click on the LIVE link on the home page. The Commission requests that persons who will only be listening to proceedings and not actively appearing in a case listen via the web cast to free phone lines for those who have to appear.  The Commission meetings are archived on the PUC's Web site under the Commission Actions tab and then click on the LISTEN link on the page.

NOTE:  Notice is further given to persons with disabilities that this Commission meeting is being held in a physically accessible place.  If you have special needs, please notify the Commission and we will make all necessary arrangements.

AGENDA OF COMMISSION MEETING

Administration

  1. Approval of the Minutes of the Commission Meeting Held on February 9, 2010, February 23, 2010, the Ad Hoc Commission Meeting Held on February 18, 2010, and the Minutes of the Gross Receipts Tax Hearing Held on March 9, 2010. (Staff:  Demaris Axthelm)

Consumer Reports

1.      Status Report on Consumer Utility Inquiries and Complaints Received by the Commission. (Consumer Affairs: Deb Gregg)

Gas and Electric

1.      GE10-001       In the Matter of the Filing by MidAmerican Energy Company for Approval of its Reconciliation for 2009 and its Proposed Energy Efficiency Plan for 2010. (Staff Analysts: Brian Rounds, Tim Binder, Staff Attorney: Karen Cremer)

         On February 19, 2010, MidAmerican filed its 2009 Energy Efficiency Annual report and requested reconciliation for the 2009 Energy Cost Recovery Factor from May 1, 2009, through December 31, 2009. In addition, MidAmerican submitted its 2010 Energy Efficiency Plan Update. The proposed 2010 Energy Efficiency Plan Update included a request to remove the current performance incentive provision and replace it with a provision allowing for a return on Energy Efficiency expenditures. MidAmerican requested an effective date of tariff revisions of April 5, 2010. On March 19, 2010, MidAmerican filed a revised Exhibit C(E) to correct an error in the previous filing.

         TODAY, shall the Commission approve the 2010 Energy Efficiency Plan and the Energy Efficiency Cost Recovery Rider for 2010 which includes the 2009 reconciliation amounts, 2009 Performance Incentive, 2010 Budget amounts, and 2010 Revised Performance Incentive?

Pipeline Safety

1.      PS09-005     In the Matter of the Petition of the Commission Pipeline Safety Program Manager for a Declaratory Ruling Regarding Whether the Crooks Municipal Utilities Gas Line should be Classified as a Transmission or Distribution Line for Pipeline Safety Purposes. (Staff Analysts: Nathan Solem/Stacy Splittstoesser, Staff Attorney: Kara Semmler)   

         On October 9, 2009, PUC Pipeline Safety Staff filed a petition for a declaratory ruling from the Commission. Specifically, PUC Staff questions whether a line owned and operated by the City of Crooks is properly classified as a transmission line or whether it should be re-classified as a distribution line. On October 21, 2009, the City of Garretson filed a Petition for Intervention.  On November 5, 2009, the Commission received a Request for Extension from Staff. On November 6, 2009, the City of Crooks filed a Petition for Intervention. At its regularly scheduled meeting on November 10, 2009, the Commission granted the Request for Extension and the Petitions to Intervene. A hearing was scheduled to be held on December 15, 2009, beginning at 2:00 P.M., in Room 282, University Center South, Southeast Technical Institute, 2205 Career Avenue, Sioux Falls, South Dakota. The Commission Counsel was advised by Commission Staff that the parties had reached agreement on a stipulation of facts in this matter, and on December 10, 2009, Commission Counsel and the parties held a pre-hearing conference. The parties agreed that at this time, a genuine issue of material fact does not appear to be present requiring an evidentiary hearing and that the matter appears to be appropriate for resolution on one or more motions for summary disposition or other appropriate motion, with briefing and oral argument to be scheduled at a later date. The hearing scheduled for December 15, 2009, was cancelled and briefings and oral arguments on any dispositive motions filed by the parties would be scheduled at a later date. On March 3, 2010, the Commission received a joint resolution letter from both parties. On March 5, 2010, Commission staff submitted a request that the docket be dismissed.

         TODAY, shall the Commission dismiss this docket?

Telecommunications

1.                           In the Matter of the Petition for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement in Dockets TC07-112, TC07-114, TC07-115, and TC07-116

         TC07-112     In the Matter of the Petition of McCook Cooperative Telephone Company for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)  

         TC07-114     In the Matter of the Petition of Kennebec Telephone Company for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

         TC07-115     In the Matter of the Petition of Santel Communications Cooperative, Inc. for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

         TC07-116     In the Matter of the Petition of West River Cooperative Telephone Company for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

         On October 19, 2007, each of the parties above (Parties) filed a petition for arbitration of certain unresolved terms and conditions of a proposed Interconnection Agreement with Alltel Communications, Inc. (Alltel), pursuant to Section 252 of the Telecommunications Act of 1996, SDCL 49-31-81, and ARSD 20:10:32:29. The Parties filed a list of unresolved issues and requested relief. In accordance with ARSD 20:10:32:30, a non-petitioning party may respond to the petition for arbitration and provide additional information within 25 days after the Commission receives the petition. On December 17, 2007, a Stipulation for Scheduling Order was filed. The Stipulation for Scheduling Order was approved at the January 29, 2008, commission meeting. On June 10, 2008, a Joint Stipulation for Amended Scheduling Order and Decision Date was filed. A hearing in these matters was held July 29- 31, 2008. The Commission issued their decision at its January 27, 2009, commission meeting. On March 30, 2009, Alltel filed a Brief and Petition for Reconsideration. On April 14, 2009, the Petitioners filed a Letter and Opposition to the Petition for Reconsideration. Alltel's Petition for Reconsideration was denied at the May 19, 2009, commission meeting. On June 9, 2009, Alltel filed a Brief and a Motion to Compel in Dockets TC07-112, TC07-114, TC07-115, and TC07-116. On June 12, 2009, the parties filed a Stipulation for Amended Scheduling Order in Dockets TC07-112, TC07-114, TC07-115, and TC07-116. The Stipulation for Amended Scheduling Order was approved at the June 23, 2009, commission meeting. On July 13, 2009, Petitioners' Response to Alltel's Motion to Compel was filed.  On July 28, 2009, Alltel's Motion to Submit Admitted Facts into the Record was filed. On July 31, 2009, Petitioners' Objection and Opposition to Alltel Communications, LLC's Motion to Submit Admitted Facts into the Record was filed. On August 20, 2009, Joint Stipulation for Proposed Amended Scheduling Order and Decision Date was filed. On September 18, 2009, Alltel's Motion to Reconsider Inclusion of Getting Started Costs and Non-Sensitive Switch Costs as Part of the Reciprocal Compensation Charges was filed. On October 9, 2009, Petitioners' Opposition to Alltel Communications, Inc.'s Petition for Reconsideration (Switching Costs) was filed. On November 3, 2009, Joint Stipulation for Proposed Amended Decision Date was filed. At its regularly scheduled meeting on January 5, 2010, the Commission Ordered that McCook shall make the revisions as set forth to its July 2009 FLEC study and incorporate the changes in the interconnection agreement; and that Alltel's Motion for Reconsideration is denied; and the parties shall submit the interconnection agreement for approval by the Commission in accordance with ARSD 20:10:32:33. On February 16, 2010, the Commission received an application for reconsideration of the January 15, 2010, second decision and Order, findings of fact, conclusions of law and notice of entry of order.

         TODAY, Shall the Commission reconsider its decision? If so, what is the Commission's decision?

2.      TC08-135           In the Matter of the Complaint filed by OrbitCom, Inc. against Verizon Business Network Services, Inc. Regarding Unpaid Access Charges. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Karen Cremer)

On November 25, 2008, OrbitCom filed a complaint seeking recovery on an account because of the failure of Verizon to pay OrbitCom the amounts invoiced pursuant to its state tariff for the provisioning of telephone access services. On June 1, 2009, the parties filed a proposed procedural schedule. On October 8, 2009, the Commission issued its Order for and Notice of Hearing, and on October 22, 2009, the hearing was held as scheduled. On November 11, 2009, OrbitCom filed a letter advising the Commission of the briefing schedule stipulated by the parties. On December 4, 2009, initial post-hearing briefs were filed by Verizon and OrbitCom. On January 8 and January 11, 2010, reply briefs were filed by Verizon and OrbitCom, respectively. On February 4, 2010, the Commission received Verizon's Motion to Strike, or in the Alternative, a Motion for Leave to File Sur-Reply Brief. On February 16, 2010, the Commission received OrbitCom's Response to Verizon's Motion. On February 18, 2010, the Commission heard the Motion to Strike, or in the Alternative, for Leave to File Sur-Reply Brief, and denied Verizon's Motion to Strike and granted its alternative Motion for Leave to File Sur-Reply Brief. On February 22, 2010, the Commission received Verizon's Sur-Reply Brief. On February 23, 2010, the Commission heard oral argument from the parties and voted to take the matter under advisement to further consider the issues in light of the oral arguments.

         TODAY, what is the Commission's decision?

3.      TC08-143     In the Matter of Ztar Mobile, Inc.'s Failure to Submit a Report and Pay the Gross Receipts Tax. (Staff Attorney: Karen Cremer)

         On December 30, 2008, the Public Utilities Commission (Commission) issued an Order for and Notice of Show Cause Hearing against Ztar Mobile, Inc. (Company) for failure to submit an annual report and pay the gross receipts tax. A hearing was held as scheduled on February 24, 2009. The Commission Ordered Ztar to pay its gross receipts tax due in the amount of $250, with accrued interest at 10% per month. It also Ordered Ztar to pay a fine in the amount of $500 for failure to pay its gross receipts tax. On March 4, 2010, Ztar filed documents showing it had no sales in South Dakota.

         TODAY, shall the Commission dismiss and close this docket?

4.      TC10-002     In the Matter of the Filing by Digital Telecommunications Inc. for Approval of its Switched Access Services Tariff No 1. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Kara Semmler)

         On January 13, 2010, Digital Telecommunications Inc. filed for approval of its Switched Access Services Tariff Number 1. The Company proposes an effective date of February 15, 2010. On March 15, 2010, Digital Telecommunications Inc. withdrew its request for approval of the access tariff previously submitted.

         TODAY, shall the Commission grant the request to withdraw the access tariff?

5.      TC10-016        In the Matter of the Filing for Approval of an Interconnection Agreement between Qwest Corporation and Enventis Telecom, Inc. (Staff Attorney: Kara Semmler)

         On February 5, 2010, the Commission received a filing for approval of a wireline Interconnection Agreement between Qwest Corporation and Enventis Telecom, Inc. for the State of South Dakota. Any party wishing to comment on the Agreement may do so by filing written comments with the Commission and the parties to the Agreement no later than February 25, 2010. Parties to the Agreement may file written responses to the comments no later than twenty days after service of the initial comments. The Commission did not receive any comments on this matter.

         TODAY, shall the Commission approve the agreement?

6.      TC10-017     In the Matter of the Application of Neutral Tandem-South Dakota, LLC for a Certificate of Authority to Provide Facilities-Based and Resold Local Exchange and Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Tim Binder, Staff Attorney: Kara Semmler)

         On February 11, 2010, Neutral Tandem-South Dakota, LLC (Neutral Tandem) filed an application for a Certificate of Authority to provide local exchange and interexchange services throughout South Dakota by utilizing a combination of resold services and facilities-based services. Neutral Tandem intends to initially offer transport and access services for competitive carriers. On March 12, 2010, the Commission received a Petition to Intervene from South Dakota Telecommunications Association (SDTA) and from South Dakota Network (SDN), separately. 

         TODAY, shall the Commission grant intervention to any party that has applied? And shall the Commission grant a Certificate of Authority?

7.      TC10-018        In the Matter of an Interconnection Agreement Between Golden West Telecommunications Cooperative, Inc. and Native American Telecom, LLC. (Staff Attorney: Kara Semmler)

         On February 11, 2010, the Commission received a filing for approval of an Interconnection Agreement between Golden West Telecommunications Cooperative, Inc. and Native American Telecom, Inc. for the State of South Dakota. Any party wishing to comment on the Agreement may do so by filing written comments with the Commission and the parties to the Agreement no later than March 3, 2010. Parties to the Agreement may file written responses to the comments no later than twenty days after service of the initial comments. The Commission did not receive any comments on this matter.

         TODAY, shall the Commission approve the agreement?

Items for Commission Discussion

Announcements

  1. Commissioners and staff will attend the Black Hills Home Builders Association Home Show held March 26-28, 2010, at the Rushmore Plaza Civic Center, Rapid City, S.D., to meet with consumers, distribute information and answer questions.
  2. The next regularly scheduled commission meeting will be held April 6, 2010 at 9:30 a.m. (CDT) in Room 413 at the State Capitol Building, Pierre, S.D.
  3. Commission meetings are scheduled for April 20 and May 4, 2010.
  4. Commissioners will attend the Renewables on Tribal Homelands Conference held April 28-30, 2010, at the Rosebud Casino Complex.

 

 /S/ Cindy Kemnitz                                                   .
Cindy Kemnitz
Finance Manager
puc@state.sd.us
March 17, 2010