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South Dakota Public Utilities Commission Meeting
July 30, 2013, at 9:30 A.M. CDT
Room 414, 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, July 29, 2013. 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 website www.puc.sd.gov and click on the LIVE link on the home page. The Commission requests 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 website under the Commission Actions tab, Click on "Commission Meeting Archives," to access the recordings.

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 July 11, 2013 (Staff: Tina Douglas)

Consumer Reports

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

Electric

1.     EL11-006     In the Matter of the Complaint by Oak Tree Energy LLC against NorthWestern Energy for refusing to enter into a Purchase Power Agreement (Staff Analyst: Brian Rounds; Staff Attorney: Karen Cremer)

On April 28, 2011, Oak Tree Energy, LLC (Oak Tree) filed a Complaint (Complaint) with the South Dakota Public Utilities Commission (Commission) against NorthWestern Corporation d/b/a NorthWestern Energy (NWE). The dispute involves a proposed wind generation project located in Clark County, South Dakota (Project). Oak Tree alleges that the Project is a "Qualified Facility" under PURPA and that NWE has refused to enter into a power purchase agreement. After lengthy proceedings and hearings, on May 17, 2013, the Commission issued an Amended Final Decision and Order; Notice of Entry (Decision). The Decision ordered NWE and Oak Tree to enter into negotiations in good faith to consummate a power purchase agreement and file it with the Commission no later than 30 days following the date of issuance of the Decision. On June 17, 2013, the parties filed a stipulation for a 10-day extension of the 30-day contract submission deadline. On June 28, 2018, with Oak Tree's acknowledgement, NWE filed a letter notifying the Commission of its intent to request review of the outstanding unresolved contract issues between the parties. On July 17, 2013, NWE filed a Motion for Commission Resolution of Contractual Provisions and Power Purchase Agreement Approval (Motion) requesting Commission resolution of the issues of: (i) the appropriate contractual language to govern Oak Tree's responsibility for ancillary service charges that NWE may potentially incur as a result of Oak Tree's integration into NWE's, WAPA's, and possibly an RTO's systems (NWE's and Oak Tree's proposed § 5.5.3); (ii) the appropriate contractual language to govern curtailment of Oak Tree's energy deliveries to the system (NWE's and Oak Tree's proposed § 6.5.1, 1st ¶); and (iii) the propriety of a default provision for NWE's failure to accept delivery of energy from Oak Tree except under the contract's allowed curtailment provisions (Oak Tree's proposed § 8.2.3). On July 18, 2013, Oak Tree committed by email to file its response to the Motion by July 24, 2013.

     TODAY, how shall the Commission rule on the following issues: 1) What is the appropriate contractual language to govern Oak Tree's responsibility for ancillary service charges that NWE may potentially incur as a result of Oak Tree's integration into NWE's, WAPA's, and possibly an RTO's systems? 2) What is the appropriate contractual language to govern curtailment of Oak Tree's energy deliveries to the system? And 3) Is a default provision for NWE's failure to accept delivery of energy from Oak Tree except under the contract's allowed curtailment provisions appropriate, and if so, what is the appropriate contractual language to be included in such a provision?

2.     EL13-024     In the Matter of the Joint Request for Service Rights Exception between Otter Tail Power Company and Sioux Valley Energy Electric Cooperative (Staff Analyst: Darren Kearney; Staff Attorney: Karen Cremer)

On July 3, 2013, Otter Tail Power Company submitted a Service Territory Agreement between Otter Tail Power Company and Sioux Valley Energy Electric Cooperative. The proposed exception to the existing service territory boundary will permit Otter Tail to provide three-phase service to Carper Farms, located in Sioux Valley Energy Electric Cooperative's service territory, for a grain handling expansion.

     TODAY, shall the Commission approve the requested service rights exception?

Natural Gas

1.     NG13-003       In the Matter of the Filing by MidAmerican Energy Company for Approval of its Tariff Revisions (Staff Analyst: Patrick Steffensen; Staff Attorney: Karen Cremer)

On June 28, 2013, the Commission received a filing from MidAmerican Energy Company (MidAmerican) for approval of revisions to the Transportation Service section of its South Dakota Gas Sales Tariff. The filing changes when a customer can change Pool Operators from May billing cycle to the Customer's scheduled meter read date. The customers no longer are required to fill out MidAmerican's web enrollment but still need to provide written notice sixty (60) days before the switch shall be effective.

     TODAY, shall the Commission approve the proposed tariff revisions?

Telecommunications

1.     TC10-026     In the Matter of a Complaint Filed by Sprint Communications Company, LP Against Native American Telecom, LLC Regarding Telecommunications Services (Staff Analyst: Patrick Steffensen; Staff Attorney: Karen Cremer)

On May 4, 2010, the Commission received a complaint from Sprint Communications Company, LP (Sprint) against Native American Telecom, LLC (NAT), in which Sprint seeks: 1) a determination that the Public Utilities Commission (Commission) has the sole authority to regulate Sprint's intrastate interexchange services and that NAT lacks authority to bill Sprint for switched access services without a Certificate of Authority and valid tariff on file with the Commission; 2) a declaration that because the Commission has the sole authority over Sprint's intrastate interexchange services, the Crow Creek Sioux Tribe Utility Authority is without jurisdiction over Sprint; 3) a determination that NAT must repay Sprint the amounts it inadvertently paid NAT for unauthorized and illegal switched access charges. On June 1, 2010, NAT filed a Motion to Dismiss. On April 23, 2012, NAT filed a Motion to Dismiss Based on Mootness. On December 11, 2012, Sprint filed a Motion for Summary Judgment. On July 23, 2013, Sprint filed its Statement Regarding Ripeness of Pending Motions for Deliberation and Decision.

     TODAY, how shall the Commission proceed?

2.     TC12-040     In the Matter of the Filing by Local Exchange Carrier Association, Inc. for Approval of Revisions to its Access Services Tariff No. 1 (Staff Analyst: Brian Rounds; Staff Attorney: Karen Cremer)

On May 18, 2012, the Commission received a filing from Local Exchange Carrier Association, Inc. (LECA) for approval of revisions to its Access Services Tariff No. 1. The purpose of this filing is to implement the Federal Communication Commission's Intercarrier Compensation Reform Order (November 18, 2011). On May 30, 2012, AT&T filed its Petition to Intervene. On June 5, 2012, the Commission granted AT&T's Petition to Intervene. On July 3, 2012, the Commission approved the tariff revisions except for Original Page 17-4.5. On August 15, 2012, LECA filed a revised tariff page 17-4.5. On July 22, 2013, AT&T filed a Motion to Withdraw its intervention.

     TODAY, shall the Commission grant AT&T's Motion to Withdraw?

3.     TC13-023     In the Matter of the Filing by Interstate Telecommunications Cooperative, Inc., for Approval of Revisions to its Access Services Tariff No. 1 (Staff Analyst: Darren Kearney; Staff Attorney: Karen Cremer)

On February 28, 2013, Interstate Telecommunications Cooperative, Inc. (ITC) filed a Petition for Approval of an Amendment to the Tariff of ITC. The amendments to the tariffs govern ITC's operations as both an incumbent and a competitive local exchange provider. On March 25, 2013, the Local Exchange Carriers Association (LECA) filed a Petition to Intervene. On April 11, 2013, ITC filed a clean version of the CLEC tariff. At its regularly scheduled meeting on April 23, 2013, the Commission granted LECA's Petition to Intervene and approved the requested revisions to ITC's South Dakota Switched Access Services Tariff No. 1. As a result of the Stockholm-Strandburg Telephone Company's merger into ITC and the associated ITC tariff changes approved by the Commission, LECA filed revised pages to its Tariff No. 1 on April 30, 2013, for Commission approval.

     TODAY, shall the Commission approve LECA's revised tariff pages for its Tariff No. 1?

4.     TC13-040     In the Matter of the Filing by Metropolitan Telecommunications of South Dakota, Inc. dba MetTel for Approval of Revisions of its Access Services Tariff No. 3 (Staff Analyst: Robin Meyerink; Staff Attorney: Karen Cremer)

On May 13, 2013, the Commission received from Metropolitan Telecommunications of South Dakota, Inc. dba MetTel filing revisions to its Competitive Access Provider Services Tariff Number 3. The purpose of this filing is to comply with the Federal Communications Commission in its Report and Order in WC Docket Nos. 10-90, etc., FCC Release No. 11-161 issued November 18, 2011. On July 3, 2013, MetTel filed supplemental and replacement tariff pages. MetTel requested a July 1, 2013, effective date.

     TODAY, shall the Commission approve the requested tariff revisions?

5.     TC13-043     In the Matter of the Filing by Knology of the Plains, Inc. for Approval of Revisions to its Access Services Tariff No. 1 (Staff Analyst: Robin Meyerink; Staff Attorney: Karen Cremer)

On May 23, 2013, the Commission received from Knology of the Plains, Inc. the following tariff changes with an effective date of July 2, 2013: Check Sheet Fourth Revised Page 1 and Section 4 Third Revised Page 1. Specifically, the tariff revisions reflect changes to certain rates. These changes bring its intrastate rates to parity with its Interstate Rates as of July 2, 2013.

     TODAY, shall the Commission approve the requested tariff revisions?

6.      TC13-050     In the Matter of the Filing by TNCI Operating Company LLC for Approval of its Access Service Tariff No. 1 (Staff Analyst: Robin Meyerink; Staff Attorney: Karen Cremer)

On June 11, 2013, TNCI Operating Company LLC (TNCI) filed its initial South Dakota switched exchange access tariff, South Dakota P.U.C. Tariff No. 1 for approval. On July 11, 2013, TNCI responded to staff's data requests.

      TODAY, shall the Commission approve the proposed initial access tariff?

7.     TC13-052     In the Matter of the Filing by Midstate Telecom, Inc. for Approval of Revisions to its Tariff No. 2 (Staff Analyst: Robin Meyerink; Staff Attorney; Karen Cremer)

On June 18, 2013, the Commission received from Midstate Telecom, Inc. (Midstate) the revised Midstate tariff page associated with the Federal Communications Commission's Intercarrier Compensation Reform Order, FCC 11-161 and associated clarifications and reconsiderations. The Order capped intrastate rates at December 29, 2011, levels and began a nine-year transition to bill-and-keep. As of July 2, 2013, companies will transition to terminating intrastate rates established through the rules contained in 47 CFR 51.911, or interstate rates and structure. A waiver of 20:10:27:02.01 is requested because Midstate is mirroring the NECA terminating rate instead of the RBOC terminating rate.

     TODAY, shall the Commission approve the requested tariff revisions? AND shall the Commission grant the requested waiver?

8.     TC13-061     In the Matter of the Filing by Interstate Telecommunications Cooperative, Inc., for Approval of Revisions to its Access Services Tariff No. 1 (Staff Analyst: Robin Meyerink; Staff Attorney: Kristen Edwards)

On June 26, 2013, the Commission received from Interstate Telecommunications Cooperative, Inc. f/k/a SSTELECOM (ITC CLEC) its revised tariff pages to ITC CLEC's Intrastate Switched Access Services Tariff No. 1 in order to implement the Federal Communications Commission's (FCC), November 18, 2011, Intercarrier Compensation Reform Order (FCC 11-161). In accordance with FCC rules found in 47 CFR §51.911, this filing revises the terminating intrastate switched access rates in order to bring terminating intrastate switched access structure to parity with the currently effective interstate terminating switched access rate structure. This revision is a revenue neutral rate filing as the overall terminating intrastate rate per minute will remain the same as currently effective due to the current interstate terminating rate being currently higher than the currently effective intrastate terminating rate per minute. ITC CLEC respectfully requests that the proposed changes become effective July 1, 2013. A waiver of 20:10:27:02.01 is requested because ITC CLEC is mirroring the NECA terminating rate instead of the RBOC terminating rate.

     TODAY, shall the Commission approve the requested tariff revisions? AND shall the Commission grant the requested waiver?

Items for Commission Discussion

Announcements

  1. A hearing will be held in Docket RM13-001 on Tuesday, July 30, 2013, at 1:00 p.m. CDT in Room 414 of the State Capitol Building, Pierre, S.D.

  2. A public input hearing for Docket EL13-020 will be held Wednesday, July 31, 2013, at 6:30 p.m. CDT in Meeting Room 110 A-B, McCrory Gardens Education and Visitors Center, 631 22nd Ave., Brookings, S.D.

  3. Commissioners will meet with representatives of CenturyLink on Wednesday, August 7, 2013, at 2 p.m. CDT at the CenturyLink office, 125 S. Dakota Avenue, 10th Floor, Sioux Falls, S.D. The agenda is to discuss the company's South Dakota broadband plans, a July 2013 service outage, and the future evolution of the telecommunications industry.

  4. The next regularly scheduled commission meeting will be Tuesday, August 13, 2013, at 9:30 a.m. CDT in Room 413 at the State Capitol Building, Pierre, S.D.

  5. PUC Commissioners and Staff will meet with consumers at the Brown County Fair, August 13-18, 2013, at the Brown County Fairgrounds, Aberdeen, S.D.

  6. PUC Commissioners and Staff will attend the South Dakota Telecommunications Association Annual Meeting, August 18-20, 2013, at the Ramkota Inn, Pierre, S.D.

  7. Commission meetings are scheduled for August 27 and September 10, 2013.

/S/Cindy Kemnitz
Cindy Kemnitz
Finance Manager
puc@state.sd.us
July 23, 2013