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PUBLIC UTILITIES COMMISSION MEETING
December 18, 1997; 10:00 A.M.
State Capitol Building, Room 464
Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING


Chairman Burg called the meeting to order at 10:00 a.m. Present were Commissioner Pam Nelson, Commissioner Laska Schoenfelder, Executive Director Bill Bullard, General Counsel Rolayne Ailts Wiest, Staff Attorneys Karen Cremer and Camron Hoseck, Fixed Utilities Division Director Greg Rislov, Telecommunications Analysts Harlan Best and Charlie Bolle, Utility Analysts Bob Knadle, Dave Jacobson and Tammi Stangohr, Business Manager Sue Cichos, Consumer Representative Leni Healy, Engineer Martin Bettmann, Transportation/Warehouse Division Director Ed Anderson and Administrative Secretary Shirleen Fugitt.

Also present were Rich Coit, SDITC, and Bob Mercer, Rapid City Journal.

Joining the meeting by phone were Robert Marmet, Dakota Telecommunications Group; Denny Law and Rick Johnson, Sioux Valley Telephone; Bill Heaston, Jon Lehner and Colleen Sevold, U S WEST; Michelle Engel, AT&T; Suzan Stewart and Marv Sorenson, MidAmerican Energy; Dennis Schnabel, Wayne Fox and Rita Mulkern, Montana-Dakota Utilities; Jim Wilcox and Sally DeNeui, Northern States Power; Bill Haas, McLeod USA; Angelia Qualls, Complainant in TC97-023; and Jodi Bentz and Michele Burgers, complainants in TC95-120 and TC95-122.

Administration


1. Approval Of The Minutes Of The Commission Meeting Held On December 1, 1997. (Staff: Shirleen Fugitt.)

Commissioner Nelson moved to approve the minutes of the December 1, 1997, Commission Meeting. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

Consumer Affairs


1. Status Report On Consumer Utility Inquiries And Complaints Recently Received By The Commission. (Consumer Representative: Leni Healy.)

Ms. Healy presented an update on consumer inquiries and complaints received since the last Commission meeting.

Electricity


1. EL97-018 IN THE MATTER OF THE APPLICATION OF MONTANA-DAKOTA UTILITIES CO., A DIVISION OF MDU RESOURCES GROUP, INC. FOR APPROVAL OF MODIFICATION OF ELECTRIC SERVICE AREA BETWEEN MONTANA-DAKOTA UTILITIES CO. AND CAM WAL ELECTRIC COOPERATIVE, INC. (Staff Engineer: Martin Bettmann. Staff Attorney: Camron Hoseck.)

Mr. Bettmann explained the application and recommended approval.

Commissioner Schoenfelder moved to approve the application. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

2. EL97-023 IN THE MATTER OF THE COMPLAINT FILED BY ANGELIA QUALLS, SIOUX FALLS, SD AGAINST NORTHERN STATES POWER COMPANY REGARDING PREVIOUS BALANCES. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Angelia Qualls explained her complaint against Northern States Power. Jim Wilcox addressed the complaint. Ms. Healy recommended finding probable cause.

Commissioner Nelson moved to find probable cause. Chairman Burg seconded. Commissioner Schoenfelder dissented. Motion passed 2-1.

Gas/Electric


1. GE97-003 IN THE MATTER OF THE FILING BY MIDAMERICAN ENERGY COMPANY FOR APPROVAL OF REVISIONS TO ITS ELECTRIC AND GAS TARIFFS. (Staff Analyst: Dave Jacobson. Staff Attorney: Karen Cremer.)

Marv Sorenson, MidAmerican Energy, explained the filing. Following discussion, action was deferred.

Telecommunications


1. TC95-120 IN THE MATTER OF THE PETITION OF DAVID GLADER FOR EXTENDED AREA SERVICE BETWEEN COLTON, SOUTH DAKOTA, AND SIOUX FALLS, SOUTH DAKOTA. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

2. TC95-122 IN THE MATTER OF THE REQUEST FOR ONE-WAY EXTENDED AREA SERVICE FROM DELL RAPIDS, SOUTH DAKOTA, TO SIOUX FALLS, SOUTH DAKOTA. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Rick Johnson addressed the requests for extended area service and noted that Sioux Valley Telephone is willing to provide the service if an interconnection agreement can be reached with U S WEST on a basis other than switched access charges. Bill Heaston noted that the exchanges are not contiguous as required in previous Commission orders. Chairman Burg asked the companies to develop more information and negotiate further. Action was deferred.

3. TC97-168 IN THE MATTER OF THE APPLICATION OF ATLAS EQUITY, INC,. D/B/A PERFORMANCE TELECOM FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

Ms. Stangohr explained the application and recommended approval.

Chairman Burg moved to approve the application. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

4. TC97-173 IN THE MATTER OF THE APPLICATION OF VISTA COMMUNICATIONS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

Ms. Stangohr requested deferral. Action was deferred.

5. TC97-178 IN THE MATTER OF THE COMPLAINT FILED BY BEN HOFER, CARPENTER, SD, AGAINST U S WEST COMMUNICATIONS, INC., REGARDING UPDATING LINES. (Staff Analyst: Steve Wegman. Staff Attorney: Camron Hoseck.)

Ben Hofer explained his complaint against U S WEST. Colleen Sevold, U S WEST, reported that the company will answer the complaint within 20 days and has no objection to the finding of probable cause.

Commissioner Schoenfelder moved to find probable cause. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

6. IN THE MATTER OF EXCESSIVE CONSUMER COMPLAINTS AGAINST BASIC LONG DISTANCE FOR QUESTIONABLE MARKETING PRACTICES AND UNAUTHORIZED SWITCHING OF LONG DISTANCE SERVICE. (Consumer Affairs: Leni Healy.)

Ms. Healy reported that Basic Long Distance has not responded to her request for information. Ms. Wiest recommended a follow-up letter be sent to the company stating actions which can be taken against the company and a specific time frame for sending the requested information.

Transportation/Warehouse


1. IN THE MATTER OF INVESTIGATING THE CURRENT RATE STRUCTURE FOR RECEIVING, HANDLING, REDELIVERING AND STORING GRAIN AT STATE LICENSED PUBLIC GRAIN WAREHOUSES. (Division Director: Ed Anderson.)

Mr. Anderson noted that this subject was addressed last in 1991, and pointed out several reasons why he is requesting that it be revisited at this time.

Commissioner Schoenfelder moved to open an investigative docket. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

Miscellaneous


1. IN THE MATTER OF THE CONTRACT WITH WESTERN REGIONAL BIOMASS ENERGY PROGRAM. (Staff Analyst: Steve Wegman.)

Ms. Cichos presented a brief explanation of the proposed contract.

Commissioner Schoenfelder moved to approve the contract. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

Addendum


Natural Gas


1. NG97-020 IN THE MATTER OF THE APPLICATION OF MONTANA-DAKOTA UTILITIES CO., A DIVISION OF MDU RESOURCES GROUP, INC. FOR APPROVAL OF A PLAN TO DEVIATE FROM PURCHASED GAS COST ADJUSTMENT RATE 88. (Staff Analyst: Dave Jacobson. Staff Attorney: Camron Hoseck.)

Wayne Fox, MDU, explained the application. Mr. Jacobson recommended approval with the following conditions:

$136,104.72 be submitted to the Commission for reimbursement of regulatory expense.

Waiver of MDU's natural gas tariff, section 5 (a) (3) of rate 88 is approved.

MDU's recovery of out of pocket costs from the refund is approved.

MDU shall submit a refund report to the Commission at the time unclaimed refunds are forwarded to the State Treasurer's Office.

The notification to customers be approved by Commission Staff.

Chairman Burg moved to approve the plan with the conditions listed above. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

Telecommunications


1. TC97-020 IN THE MATTER OF THE FILING BY U S WEST COMMUNICATIONS, INC. FOR REVISIONS TO ITS ACCESS SERVICE TARIFF. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

Colleen Sevold, U S WEST, explained the filing. Ms. Stangohr recommended approval.

Commissioner Schoenfelder moved to approve the filing. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

2. TC97-142 IN THE MATTER OF THE COMPLAINT FILED BY RAYMOND AND GENENE SAND D/B/A SAND CONSTRUCTIONS, DALLAS, SD, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING TELEPHONE LINE LOCATION. (Staff Analyst: Steve Wegman. Staff Attorney: Karen Cremer.)

Chairman Burg moved to find that U S WEST had not committed an unreasonable act and to deny the complaint. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

Transportation/Warehouse


1. IN THE MATTER OF THE CONTRACTS FOR INSPECTING GRAIN DEALER RECORDS FOR THE SOUTH DAKOTA WHEAT COMMISSION, SOUTH DAKOTA OILSEEDS COUNCIL, SOYBEAN RESEARCH AND PROMOTION COUNCIL, AND SOUTH DAKOTA CORN UTILIZATION COUNCIL. (Division Director: Ed Anderson.)

Mr. Anderson requested approval of the contracts with the South Dakota Wheat Commission and the South Dakota Soybean Research and Promotion Council.

Commissioner Schoenfelder moved to approve the two contracts noted above. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

The meeting was adjourned.

______________________________
Shirleen Fugitt
Administrative Secretary