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South Dakota Public Utilities Commission Meeting

Tuesday, June 30, 1998; 1:30 P.M.

State Capitol Building, Room LCR1

Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING

Chairman Jim Burg called the meeting to order. Present were Commissioner Laska Schoenfelder, Executive Director Bill Bullard, General Counsel Rolayne Ailts Wiest, Staff Attorneys Karen Cremer and Camron Hoseck, Legal Intern Ethan Meaney, Fixed Utilities Division Director Greg Rislov, Deputy Director Harlan Best, Utility Analysts Bob Knadle and Dave Jacobson, Engineer Martin Bettmann, Consumer Representative Leni Healy, Business Manager Sue Cichos and Administrative Secretary Shirleen Fugitt.

Also present were Bob Miller, South Dakota Electric Utilities; Al Lundy, South Dakota Public Radio; Bob Mercer, Rapid City Journal; and Rich Coit, South Dakota Independent Telephone Coalition.

Joining the meeting by phone were Commissioner Pam Nelson; Suzan Stewart and Marv Sorenson, MidAmerican Energy; Jim Wilcox, NSP; Colleen Sevold, U S WEST; Jennifer Erickson, OtterTail Power; Tom Hitchcock and Rod Leyendecker, NWPS; Dave Overland, complainant in EL98-015; and Douglas Pettigrew, complainant in TC98-121.

Administration

1. Approval Of The Minutes Of The Commission Meetings Held On June 11 and 12, 1998. (Staff: Shirleen Fugitt.)

Commissioner Schoenfelder moved to approve the minutes of the June 11 and June 12, 1998, Commission Meetings. Commissioner Nelson 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 Affairs: Leni Healy.)

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

Natural Gas

1. NG98-004 IN THE MATTER OF THE FILING BY NORTHWESTERN PUBLIC SERVICE COMPANY FOR APPROVAL OF REFUND PLAN RELATING TO KANSAS AD VALOREM TAX REFUNDS RECEIVED FROM NORTHERN NATURAL GAS COMPANY. (Staff Analyst: Dave Jacobson. Staff Attorney: Camron Hoseck.)

Tom Hitchcock, NWPS, explained the refund plan.

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

2. NG98-006 IN THE MATTER OF THE FILING BY MIDAMERICAN ENERGY COMPANY FOR APPROVAL OF WAIVER OF REFUND PLAN RELATING TO KANSAS AD VALOREM TAX REFUNDS RECEIVED FROM NORTHERN NATURAL GAS COMPANY. (Staff Analyst: Dave Jacobson. Staff Attorney: Camron Hoseck.)

Marv Sorenson, MidAmerican Energy, explained the refund plan. Following discussion, Mr. Jacobson recommended that the Commission either defer making a decision or deny the waiver.

Chairman Burg moved to grant a nine month delay in implementation of the refund plan. Motion died for lack of a second.

Commissioner Nelson moved to deny the waiver. Motion died for lack of a second.

Commissioner Schoenfelder moved to defer. Chairman Burg seconded and Commissioner Nelson dissented stating that she would prefer to have the refund process begin immediately. Motion passed 2-1.

Gas and Electric

1. GE98-001 IN THE MATTER OF THE FILING BY NORTHWESTERN PUBLIC SERVICE COMPANY FOR APPROVAL OF REVISIONS TO ITS GAS AND ELECTRIC TARIFFS. (Staff Analysts: Greg Rislov and Bob Knadle. Staff Attorney: Karen Cremer.)

Rod Leyendecker, NWPS, explained the filing. Mr. Knadle presented further explanation and recommended approval of the tariff revisions.

Chairman Burg moved to approve the tariff revisions with an August 1, 1998, effective date.

Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

Electric

1. EL98-010 IN THE MATTER OF THE COMPLAINT FILED BY MARION AND L. R. STALLINGS, LEAD, SOUTH DAKOTA, AGAINST BLACK HILLS POWER AND LIGHT COMPANY REGARDING INSTALLATION FEES. (Staff Analyst: Steve Wegman. Legal Intern: Ethan Meaney.)

Ms. Healy noted that an informal resolution has been reached in this matter and the complainant wishes to withdraw the complaint.

Chairman Burg moved to allow the withdrawal of the complaint and close the docket.

Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

2. EL98-012 IN THE MATTER OF THE FILING BY MONTANA-DAKOTA UTILITIES CO., A DIVISION OF MDU RESOURCES GROUP, INC. FOR APPROVAL OF REVISIONS TO ITS OCCASIONAL POWER PURCHASE NON-TIME DIFFERENTIATED RATE 95, SHORT-TERM POWER PURCHASE TIME DIFFERENTIATED RATE 96 AND LONG-TERM POWER PURCHASE TIME DIFFERENTIATED RATE 97. (Staff Analyst: Dave Jacobson. Staff Attorney: Camron Hoseck.)

Mr. Jacobson explained the filing and recommended approval.

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

3. EL98-013 IN THE MATTER OF THE FILING BY NORTHERN STATES POWER COMPANY FOR APPROVAL OF ITS REVISED RATE SHEETS FOR ITS OCCASIONAL DELIVERY ENERGY SERVICE AND TIME OF DELIVERY ENERGY SERVICE. (Staff Analyst: Dave Jacobson. Staff Attorney: Karen Cremer.)

Jim Wilcox, NSP, explained the filing. Mr. Jacobson recommended approval.

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

4. EL98-014 IN THE MATTER OF THE FILING BY MOREAU-GRAND ELECTRIC COOPERATIVE INC. AND THE CITY OF MCLAUGHLIN FOR APPROVAL OF CONSENT AND AGREEMENT FOR ELECTRIC SERVICE IN ASSIGNED TERRITORY OF ANOTHER ELECTRIC SUPPLIER. (Staff Engineer: Martin Bettmann. Legal Intern: Ethan Meaney.)

Mr. Bettmann explained the filing and recommended approval. Ms. Wiest noted that the agreement did not contain a clause stating the duration of the agreement or if it were limited to the life of the building located within Moreau-Grand's service territory. Action was deferred.

Addendum

1. EL98-011 IN THE MATTER OF THE FILING BY TURNER-HUTCHINSON ELECTRIC COOPERATIVE, INC. FOR APPROVAL OF EXCEPTION TO SERVICE ON ASSIGNED AREAS BETWEEN TURNER-HUTCHINSON ELECTRIC COOPERATIVE, INS. AND LINCOLN-UNION ELECTRIC COMPANY. (Staff Analyst: Martin Bettmann. Staff Attorney: Camron Hoseck.)

Mr. Hoseck explained the filing. Ms. Wiest recommended deferral. Action was deferred.

5. EL98-015 IN THE MATTER OF THE COMPLAINT FILED BY DAVE OVERLAND, SIOUX FALLS, SD, AGAINST NORTHERN STATES POWER COMPANY REGARDING EXCESSIVE REPAIR CHARGES. (Consumer Representative: Leni Healy. Staff Attorney: Karen Cremer.)

Dave Overland explained his complaint against Northern States Power regarding excessive repair charges. Jim Wilcox, Northern States Power, explained the charges and noted that the company was called on Easter Sunday. Ms. Cremer recommended finding probable cause.

Commissioner Nelson moved to find probable cause. Motion died for lack of a second.

Chairman Burg made a substitute motion to not find probable cause. Commissioner Schoenfelder seconded. Commissioner Nelson dissented. Motion passed 2-1.

Addendum

2. EL98-016 IN THE MATTER OF THE FILING BY LINCOLN-UNION ELECTRIC COMPANY AND MIDAMERICAN ENERGY COMPANY FOR APPROVAL OF EXCEPTION TO SERVICE ON ASSIGNED AREAS. (Staff Analyst: Martin Bettmann. Legal Intern: Ethan Meaney.)

Mr. Bettmann explained the application. Ms. Wiest recommended making sure the water permit is in place.

Chairman Burg moved to grant an exception to service on assigned areas. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

Telecommunications

1. TC98-076 IN THE MATTER OF THE APPLICATION OF NXLD COMPANY FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

Mr. Hoseck recommended approval with restrictions on prepaid calling cards, advance payments and deposits.

Commissioner Nelson moved to approve the application with the three restrictions noted above. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

2. TC98-107 IN THE MATTER OF THE APPLICATION OF OLS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Dave Jacobson. Legal Intern: Ethan Meaney.)

Mr. Jacobson explained the application and recommended approval.

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

3. TC98-121 IN THE MATTER OF THE COMPLAINT FILED BY DOUGLAS G. PETTIGREW, WETONKA, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING SERVICE PROBLEMS. (Staff Analyst: Steve Wegman. Legal Intern: Ethan Meaney.)

Mr. Pettigrew explained his complaint against U S WEST for service problems. Colleen Sevold, U S WEST, noted that the company plans to update service in the Wetonka, South Dakota area this year.

Commissioner Schoenfelder moved to find probable cause but not set the matter for hearing since U S WEST stated it will update the facilities prior to the end of this year's construction season. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

The meeting was adjourned.

_______________________________

Shirleen Fugitt

Administrative Secretary