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South Dakota Public Utilities Commission Meeting
September 2, 2014, at 1:30 P.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 Friday, August 29, 2014. 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 Ad Hoc Commission Meeting Held on August 13, 2014, and the Commission Meeting held on August 19, 2014 (Staff: Joy Lashley)

Consumer Reports

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

Complaint

1.     CE14-001     In the Matter of the Complaint filed by Rod and Cheryl Goeman, Sioux Falls, South Dakota, against Xcel Energy Regarding an Electric Service Dispute (Staff Analyst: Deb Gregg; Staff Attorney: Kristen Edwards)

On July 31, 2014, Rod and Cheryl Goeman (Complainants) filed a complaint against Xcel Energy regarding a dispute over new residential service. Complainants sought relief in the form of service from Sioux Valley Energy until the spring of 2015. On August 14, 2014, Complainants notified the Commission of a settlement and requested that the complaint be withdrawn.

     TODAY, shall the Commission grant withdrawal of the complaint and close the docket?

Electric

1.     EL14-061     In the Matter of the Application of Black Hills Power, Inc. for a Permit to Construct a 230 kV Transmission Line from Northeastern Wyoming to the Rapid City Area in South Dakota (Staff Analysts: Brian Rounds, Darren Kearney; Staff Attorney: Karen Cremer)

On June 30, 2014, Black Hills Power, Inc. filed an application for a permit to construct the South Dakota portion of a 230 kV transmission line, which will run from northeastern Wyoming to the Rapid City area in South Dakota and associated modifications to the Lange Substation in Pennington County, South Dakota. The South Dakota portion includes approximately 45.4 miles of transmission line and will cross both private lands and federal lands managed by the Black Hills National Forest Service. Specifically, approximately 9.1 miles of the proposed Facility will cross private land and approximately 36.3 miles will cross National Forest Service lands. On August 4, 2014, Ruby B. Matejcik filed an Application for Party Status. On August 25, 2014, the Commission held a public input hearing in Rapid City, SD. At the hearing, Victoria Leonard submitted an Application for Party Status to Staff for filing in the docket.

     TODAY, shall the Commission grant intervention to any party that may have filed?

2.     EL14-065     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Bon Homme Yankton Electric Association, Inc. and Southeastern Electric Cooperative, Inc. (Staff Analyst: David Henry; Staff Attorney: Kristen Edwards)

On July 23, 2014, Commission Staff filed an Electric Service Territory Boundary Agreement between Bon Homme Yankton Electric Association, Inc. and Southeastern Electric Cooperative, Inc. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission Staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission Staff asks for approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

     TODAY, shall the Commission approve the proposed electric service territory boundary agreement?

3.     EL14-066     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Clay-Union Electric Cooperative and Southeastern Electric Cooperative, Inc. (Staff Analyst: David Henry; Staff Attorney: Kristen Edwards)

On July 30, 2014, Commission Staff filed an Electric Service Territory Boundary Agreement between Clay-Union Electric Cooperative and Southeastern Electric Cooperative, Inc. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission Staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission Staff asks for approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

     TODAY, shall the Commission approve the proposed electric service territory boundary agreement?

4.     EL14-067     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Douglas Electric Cooperative, Inc. and Southeastern Electric Cooperative, Inc. (Staff Analyst: David Henry; Staff Attorney: Kristen Edwards)

On July 30, 2014, Commission Staff filed an Electric Service Territory Boundary Agreement between Douglas Electric Cooperative, Inc. and Southeastern Electric Cooperative, Inc. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission Staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission Staff asks for approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

     TODAY, shall the Commission approve the proposed electric service territory boundary agreement?

5.     EL14-068      In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Charles Mix Electric Cooperative, Inc. and Southeastern Electric Cooperative, Inc. (Staff Analyst: David Henry; Staff Attorney: Kristen Edwards)

On July 30, 2014, Commission Staff filed an Electric Service Territory Boundary Agreement between Charles Mix Electric Cooperative, Inc. and Southeastern Electric Cooperative, Inc. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission Staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission Staff asks for approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

     TODAY, shall the Commission approve the proposed electric service territory boundary agreement?

6.     EL14-069     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Southeastern Electric Cooperative, Inc. and Union County Electric Cooperative, Inc. (Staff Analyst: David Henry; Staff Attorney: Kristen Edwards)

On August 1, 2014, Commission Staff filed an Electric Service Territory Boundary Agreement between Southeastern Electric Cooperative, Inc. and Union County Electric Cooperative, Inc. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission Staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission Staff asks for approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

     TODAY, shall the Commission approve the proposed electric service territory boundary agreement?

Grain

1.     GW14-001     In the Matter of the Stipulation and Settlement Agreement between American Edge Grain dba Madison Bin City and PUC Staff (Staff Analyst: Jim Mehlhaff; Staff Attorney: Kristen Edwards)

On August 25, 2014, Staff filed a Stipulation and Settlement Agreement (Agreement) and a Joint Motion for Approval of Stipulation and Settlement Agreement in this docket. The Agreement, if approved, would resolve all issues surrounding American Edge Grain's operating as a grain warehouse without a license and failure to provide notification of non-compliance with financial standards.

     TODAY, shall the Commission approve the Joint Motion for Approval of Stipulation and Settlement Agreement? OR, how shall the Commission proceed?

One Call

1.     OC13-028     In the Matter of the Complaint Filed by MidAmerican Energy Company, Urbandale, Iowa, Against Stone Hill Construction, Inc., Sioux Falls, South Dakota, for an Incident Occurring on August 6, 2013, at 304 W. 3rd St., Worthing, S.D. (One Call Executive Director: Larry Janes; Staff Attorney: Kristen Edwards)

On November 4, 2013, MidAmerican Energy Company filed a complaint against Stone Hill Construction, Inc. (Stone Hill) alleging that Stone Hill damaged a 48 psi gas line on August 6, 2013, while excavating under a locate ticket that had expired on July 29, 2013. Stone Hill did not respond to the Complaint. The One Call Enforcement Panel met on December 18, 2013, and determined that probable cause existed to believe that a violation did occur. The Panel recommended a penalty of $750.00 with $250.00 suspended based upon certain conditions. Stone Hill did not contest the recommendation. On February 21, 2014, the One Call Board issued an Order Adopting the Enforcement Panel Recommendation and to Pursue Collection Action if Necessary. Stone Hill failed to make payment of any portion of the penalty. Therefore, $750.00 became due and owing on April 2, 2014. Several attempts have been made to contact Stone Hill to avoid the collection process, including a demand letter sent on June 24, 2014. Email reminders and phone calls have also been attempted.

     TODAY, shall the Commission bring an action in the name of the State of South Dakota pursuant to SDCL 49-7A-28 for collection of the penalties? OR, how shall the Commission proceed?

Telecommunications

1.     TC14-022      In the Matter of the Application of CenturyLink Public Communications, Inc. dba CenturyLink for an Amended Certificate of Authority to Provide Interexchange Long Distance Services as an Alternative Operator Service (Staff Analyst: Eric Paulson; Staff Attorney: Karen Cremer)

On May 21, 2014, the Commission received a filing from CenturyLink Public Communications, Inc. dba CenturyLink (CenturyLink) requesting an amended Certificate of Authority to Provide Interexchange Long Distance Services as an Alternative Operator Service. CenturyLink requested a waiver for ARSD 20:10:24:05(3), 20:10:24:05(4)(c), 20:10:24:05(4)(d), 20:10:24:05(5), 20:10:24:05(6), 20:10:24:05(7), and  20:10:24:05(11). On July 7 and July 30, 2014, CenturyLink responded to staff's data requests.

     TODAY, shall the Commission grant CenturyLink Public Communications, Inc. dba CenturyLink an Amended Certificate of Authority to Provide Interexchange Long Distance Services as an Alternative Operator Service? AND, shall the Commission grant the requested waivers?

2.     In the Matter of Request for Certification Regarding the Use of Federal Universal Service Support in Dockets TC14-032, TC14-035, TC14-037, TC14-050, TC14-053, TC14-054, TC14-055, TC14-056, TC14-064, TC14-065, and TC14-069

     TC14-032     In the Matter of the Request of Knology Community Telephone, Inc. for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)

On June 23, 2014, the Commission received an application from Knology Community Telephone, Inc. requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company. On July 21 and August 13, 2014, the Company responded to Staff's data requests. The map for the response to data request 2-5 was placed in the docket on August 14, 2014.

     TC14-035     In the Matter of the Request of Valley Telecommunications Cooperative Association, Inc. for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

On June 26, 2014, the Commission received an application from Valley Telecommunications Cooperative Association, Inc. requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company. On July 15 and August 5, 2014, the Company responded to Staff's data requests.

     TC14-037     In the Matter of the Request of Roberts County Telephone Cooperative Association and RC Communications, Inc. for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Robin Meyerink; Staff Attorney: Kristen Edwards)

On June 26, 2014, the Commission received application Roberts County Telephone Cooperative Association and RC Communications, Inc. requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company. On July 16, and August 8, 2014, the Company responded to Staff's data requests. On July 21, 2014, the Company submitted Supplemental Exhibit A.

     TC14-050     In the Matter of the Request of Jefferson Telephone Company for Certification Regarding Its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

On June 30, 2014, the Commission received an application from Jefferson Telephone Company requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company. On July 22, 2014, the Company responded to Staff's data requests.

     TC14-053     In the Matter of the Request of Midstate Communications, Inc. for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Robin Meyerink; Staff Attorney: Karen Cremer)

On June 30, 2014, the Commission received an application from Midstate Communications, Inc. requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company. On August 21, 2014, the Company responded to Staff's data requests.

     TC14-054     In the Matter of the Request of Venture Communications Cooperative for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

On June 30, 2014, the Commission received an application from Venture Communications Cooperative requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company. On August 12, 2014, the Company responded to Staff's data requests.

     TC14-055     In the Matter of the Request of Western Telephone Company for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

On June 30, 2014, the Commission received an application from Western Telephone Company requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company. On August 11, 2014, the Company responded to Staff's data requests.

     TC14-056     In the Matter of the Request of Long Lines Wireless, LLC for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

On June 30, 2014, the Commission received an application from Long Lines Wireless, LLC requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company. On July 15, July 21, and July 28, 2014, the Company responded to Staff's data requests.

     TC14-064     In the Matter of the Request of Santel Communications Cooperative for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

On July 1, 2014, the Commission received an application from Santel Communications Cooperative Inc. requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company. On August 1, 2014, the Company responded to Staff's data requests.

     TC14-065     In the Matter of the Request of West River Cooperative Telephone Company for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Robin Meyerink; Staff Attorney: Kristen Edwards)

On July 1, 2014, the Commission received an application from West River Cooperative Telephone Company requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company. On August 4 and August 12, 2014, the Company responded to Staff's data requests.

     TC14-069     In the Matter of the Request of City of Brookings Municipal Telephone for Certification Regarding its Use of Federal Universal Service Support (Staff Attorney: Robin Meyerink; Staff Attorney: Kristen Edwards)

On July 1, 2014, the Commission received an application from Brookings Municipal Telephone dba Swiftel Communications requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company.

     TODAY, shall the Commission provide a certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the use of Federal Universal Service Support in each of the above dockets?

3.     TC14-073     In the Matter of the Joint Application of Kite Parent Corp. (a Subsidiary of WideOpenWest Finance, LLC) and Its Subsidiaries Knology of the Plains, Inc., Knology of the Black Hills, LLC, Knology Community Telephone, Inc., Knology of South Dakota, Inc., and Black Hills Fiber Systems, Inc. and Clarity Telecom, LLC Regarding the Sale of Telephone Exchanges to Clarity Telecom, LLC, Transfer of Certificates of Authority, Eligible Telecommunications Carrier Designation, and Relinquishment of Eligible Telecommunications Carrier Designations (Staff Analyst: Robin Meyerink; Staff Attorney: Karen Cremer)

On July 15, 2014, the Commission received a joint application to approve the sale of certain local telephone exchanges from Kite Parent Corp. (a subsidiary of WideOpenWest Finance, LLC, (“WOW!”)), on behalf of itself and its subsidiaries Knology of the Plains, Inc.; Knology of the Black Hills, LLC; Knology Community Telephone, Inc.; Knology of South Dakota, Inc.; and Black Hills Fiber Systems, Inc. (collectively referred to as WOW! South Dakota) and Clarity Telecom, LLC (Clarity). WOW! South Dakota proposes to sell its local telephone exchanges to Clarity. The proposed sale affects a number of local telephone exchanges and includes the following communities: Alsen, Belle Fourche, rural Beresford, Black Hawk, Box Elder, Canton, Centerville, Central City, Chancellor, Colman, Davis, Deadwood, Elk Point, Flandreau, Flyger, Gayville, Harrisburg, Hurley, Irene, Lead, Lennox, Madison, Monroe, North Sioux City, Parker, Piedmont, Rapid City, Sioux Falls, Spearfish, St. Onge, Sturgis, Summerset, Tea, Vermillion, Viborg, Volin, Wakonda, Watertown, Whitewood, Worthing, and Yankton. The application states that the sale is in the public interest for the following reasons: 1) while under the previous two owners many operational functions were completed out of state, Clarity's focus will solely be the operation and expansion of the networks located in South Dakota, Minnesota, and Iowa; 2) Clarity plans to upgrade the network infrastructure; 3) there will be no change in rates for local telephone services offered in the telephone exchanges resulting from the purchase; 4) Clarity will continue to provide enhanced 911; 5) there will be no reduction in tax revenues to the state of South Dakota resulting solely from the purchase and sale of the telephone exchanges; 6) Clarity is committed to providing modern state-of-the-art telecommunications services; and 7) and there will be no discontinuance, reduction, or impairment of any of the services presently offered.

     TODAY, pursuant to SDCL 49-31-59, shall the Commission grant the joint request of the proposed purchase and sale of the WOW! South Dakota exchanges to Clarity? AND, shall the Commission grant Clarity's request for a Certificate of Authority to provide local exchange and interexchange services in the Knology CT, Knology Plains, and Knology Black Hills service areas?  AND, shall the Commission grant Knology CT and Knology Black Hills' request to relinquish their ETC designation?  AND, shall the Commission grant Clarity's request that it be designated as an ETC in the exchanges in which Knology CT and Knology Black Hills are currently designated? OR, how shall the Commission proceed?

4.     TC14-075     In the Matter of the Filing Qwest Corporation dba CenturyLink QC for Approval of Revisions to its Exchange and Network Tariff No. 1 (Staff Analyst: Eric Paulson; Staff Attorney: Karen Cremer)

On July 16, 2014, the Commission received a filing from Qwest Corporation dba CenturyLink QC (CenturyLink) requesting approval of revisions to its Exchange and Network Tariff No. 1, Page 14. The purpose of this filing is to revise the late charges applied to customer bills. CenturyLink requests an effective date of July 18, 2014. On August 20, 2014, CenturyLink responded to Staff's data requests.

     TODAY, shall the Commission approve Qwest Corporation dba CenturyLink QC's Revisions to its Exchange and Network Tariff No. 1 with an effective date of July 18, 2014?

Items for Commission Discussion

Announcements

  1. Commissioners and staff will meet with consumers at the South Dakota State Fair, August 28 – September 1, 2014, in Huron, S.D.

  2. The PUC offices will be closed Monday, September 1, 2014, in observance of Labor Day.

  3. Commissioners will attend the East River Electric Power Cooperative annual meeting, Wednesday, September 3, 2014, at the Ramkota Conference Center, Sioux Falls, S.D.

  4. The next regularly scheduled commission meeting will be Tuesday, September 16, 2014, at 9:30 a.m. CDT in Room 413 at the State Capitol Building, Pierre, S.D.

  5. Commission meetings are scheduled for September 30 and October 14, 2014.

/s/Cindy Kemnitz     
Cindy Kemnitz
Finance Manager
PUC Email
August 26, 2014