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South Dakota Public Utilities Commission Meeting
Tuesday, July 23, 2002; 1:30 P.M.
State Capitol Building, Room 412
Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING

Chairman Jim Burg called the meeting to order. Also present were Commissioner Pam Nelson; Commissioner Bob Sahr; Executive Director Debra Elofson; Deputy Executive Director Sue Cichos; Commission Advisor Greg Rislov; Commission Counsel John J. Smith; Commission Attorney Rolayne Ailts Wiest; Staff Attorney Karen Cremer; Staff Analysts Dave Jacobson, Harlan Best, Heather Forney, Keith Senger, Martin Bettmann, Mary Healy and Michele Farris; and Administrative Secretary Mary Giddings.

Also present were Jim Wilcox and Gail Baranke, Xcel Energy; and Peter Daly, Power System Engineering, Inc.

Joining the meeting by telephone were Linn Evans, Black Hills FiberCom; Cindy Grosvenor and Wendell Aanerud, TELEC Consulting; Brad Bayliff, Casey & Gentz for Ionex Communications North, Inc.; Jamie Miller, Kurt Scheiner, Bob Bouquet and Alisa Head, Ionex Communications North, Inc.; Joe Schuele, Marlene Bennett and Dave Saville, Martin Group; Colleen Sevold, Qwest Corporation; Carrie Rice, Hickory Tech; and John Burke, S&S Communications.

Administration

1. APPROVAL OF THE MINUTES OF THE COMMISSION MEETING HELD ON JULY 9, 2002. (Staff: Mary Giddings.)

Chairman Burg moved to approve the minutes of the Commission meeting held on July 9, 2002. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

Consumer Issues

1. STATUS REPORT ON CONSUMER UTILITY INQUIRIES AND COMPLAINTS RECENTLY RECEIVED BY THE COMMISSION. (Consumer Affairs: Mary Healy.)

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

2. IN THE MATTER OF DISMISSING DOCKETS CE02-002, CT02-018 AND CT02-022.

CE02-002 IN THE MATTER OF THE COMPLAINT FILED BY TANYA STAHL, HURON, SOUTH DAKOTA, AGAINST NORTHWESTERN PUBLIC SERVICE COMPANY REGARDING DENIED SERVICE. (Staff Analyst: Mary Healy. Staff Attorney: Kelly Frazier.)

CT02-018 IN THE MATTER OF THE COMPLAINT FILED BY THE LOYAL ORDER OF MOOSE, BELLE FOURCHE, SOUTH DAKOTA, AGAINST UKI COMMUNICATIONS, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Mary Healy. Staff Attorney: Karen Cremer.)

CT02-022 IN THE MATTER OF THE COMPLAINT FILED BY MARK & SUE CICHOS, PIERRE, SOUTH DAKOTA, AGAINST UKI COMMUNICATIONS, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Mary Healy. Staff Attorney: Karen Cremer.)

Chairman Burg moved to dismiss the complaints and close the dockets on Dockets CE02- 002, CT02-018 and CT02-022. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.

Telecommunications

1. TC01-163 IN THE MATTER OF THE APPLICATION OF BAK COMMUNICATIONS, LLC FOR A CERTIFICATE OF AUTHORITY TO PROVIDE INTEREXCHANGE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Michele Farris. Staff Attorney: Kelly Frazier.)

Ms. Farris recommended that the restrictions from offering prepaid calling cards, accepting advance payments or customer deposits be removed from its certificate of authority because the $25,000 surety bond is now in place.

Chairman Burg moved to accept the $25,000 surety bond of BAK Communications, LLC and to remove the restrictions from offering prepaid calling cards, accepting advance payments or customer deposits. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

2. TC02-013 IN THE MATTER OF THE APPLICATION OF BUYERS UNITED, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE INTEREXCHANGE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Michele Farris. Staff Attorney: Kelly Frazier.)

Ms. Farris stated that Buyers United, Inc. had not responded to Staff's data requests and recommended that the certificate of authority be denied.

Chairman Burg moved to deny a certificate of authority to Buyers United, Inc. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.

3. TC02-040 IN THE MATTER OF THE FILING BY IONEX COMMUNICATIONS NORTH, INC. FOR APPROVAL OF ITS INTRASTATE SWITCHED ACCESS TARIFF AND FOR AN EXEMPTION FROM DEVELOPING COMPANY SPECIFIC COST-BASED SWITCHED ACCESS RATES. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

Kurt Scheiner, representing Ionex Communications North, Inc., explained the tariff and requested an exemption from developing company-specific cost-based switched access rates. Ms. Forney recommended that the tariff be approved with waivers of ARSD 20:10:27:07 and ARSD 20:10:27:12 and, at the end of three years, the waivers must be extended or cost-based rates must be filed.

Chairman Burg moved to approve the tariff with exemptions from ARSD 20:10:27:07 and ARSD 20:10:27:12 and with the stipulation that, at the end of three years, the waivers must be extended or cost-based rates must be filed. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

4. TC02-059 IN THE MATTER OF THE APPLICATION OF WHOLESALE CARRIER SERVICES, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE INTEREXCHANGE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Michele Farris. Staff Attorney: Kelly Frazier.)

Ms. Farris recommended that Wholesale Carrier Services, Inc. be granted a certificate of authority with a waiver of ARSD 20:10:24:02(8) and with an effective date of August 12, 2002.

Chairman Burg moved to grant a certificate of authority to Wholesale Carrier Services, Inc. with a waiver of ARSD 20:10:24:02(8) and with an effective date of August 12, 2002. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.

5. TC02-070 IN THE MATTER OF THE FILING BY THE LOCAL EXCHANGE CARRIERS ASSOCIATION FOR APPROVAL OF TARIFF REVISIONS. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

John Burke, representing S&S Communications, stated that the petition to intervene had been withdrawn.

6. TC02-071 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR BALTIC TELECOM COOPERATIVE. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

John Burke, representing S&S Communications, explained the petition to intervene.

Chairman Burg moved to grant intervention to S&S Communications. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

Chairman Burg moved to assess a filing fee not to exceed $100,000 with an initial deposit of $1,000.00. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.

7. TC02-072 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR EAST PLAINS TELECOM, INC. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

John Burke, representing S&S Communications, explained the petition to intervene.

Chairman Burg moved to grant intervention to S&S Communications. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

Chairman Burg moved to assess a filing fee not to exceed $100,000 with an initial deposit of $1,000.00. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.

8. TC02-073 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR SANBORN TELEPHONE COOPERATIVE AND SANCOM, INC. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

John Burke, representing S&S Communications, explained the petition to intervene.

Chairman Burg moved to grant intervention to S&S Communications. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

Chairman Burg moved to assess a filing fee not to exceed $100,000 with an initial deposit of $1,000.00. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.

9. TC02-074 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR VALLEY TELECOMMUNICATIONS COOPERATIVE ASSOCIATION. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

John Burke, representing S&S Communications, explained the petition to intervene.

Chairman Burg moved to grant intervention to S&S Communications. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

Chairman Burg moved to assess a filing fee not to exceed $100,000 with an initial deposit of $1,000.00. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.

10. TC02-075 IN THE MATTER OF THE FILING BY KADOKA TELEPHONE COMPANY TO ESTABLISH SWITCHED ACCESS RATES. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Mr. Best noted that the switched access rates had previously been approved by the Commission. John Burke, representing S&S Communications, stated that it wanted to intervene.

Chairman Burg moved to grant intervention to S&S Communications. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

Chairman Burg moved to assess a filing fee not to exceed $100,000 with an initial deposit of $1,000.00. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.

11. TC02-076 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR BROOKINGS MUNICIPAL TELEPHONE COMPANY. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

John Burke, representing S&S Communications, explained the petition to intervene.

Chairman Burg moved to grant intervention to S&S Communications. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

Chairman Burg moved to assess a filing fee not to exceed $100,000 with an initial deposit of $1,000.00. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.

12. TC02-077 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR UNION TELEPHONE COMPANY. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

John Burke, representing S&S Communications, explained the petition to intervene.

Chairman Burg moved to grant intervention to S&S Communications. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

Chairman Burg moved to assess a filing fee not to exceed $100,000 with an initial deposit of $1,000.00. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.

13. TC02-078 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR BRIDGEWATER-CANISTOTA INDEPENDENT TELEPHONE COMPANY. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

John Burke, representing S&S Communications, explained the petition to intervene.

Chairman Burg moved to grant intervention to S&S Communications. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

Chairman Burg moved to assess a filing fee not to exceed $100,000 with an initial deposit of $1,000.00. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.

14. TC02-079 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR KENNEBEC TELEPHONE COMPANY. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

John Burke, representing S&S Communications, explained the petition to intervene.

Chairman Burg moved to grant intervention to S&S Communications. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

Chairman Burg moved to assess a filing fee not to exceed $100,000 with an initial deposit of $1,000.00. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.

15. TC02-080 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR BERESFORD MUNICIPAL TELEPHONE COMPANY. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

John Burke, representing S&S Communications, explained the petition to intervene.

Chairman Burg moved to grant intervention to S&S Communications. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

Chairman Burg moved to assess a filing fee not to exceed $100,000 with an initial deposit of $1,000.00. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.

16. TC02-084 IN THE MATTER OF THE PETITION OF BLACK HILLS FIBERCOM, L.L.C. FOR A DECLARATORY RULING REGARDING ARSD 20:10:32:11 AND ALTERNATIVE PETITION FOR APPROVAL OF AN AMENDMENT TO BLACK HILLS FIBERCOM, L.L.C.'S LOCAL CALLING AREA PURSUANT TO ARSD 20:10:32:11. (Commission Attorney: Rolayne Ailts Wiest.)

Ms. Wiest stated that Staff had no objection to SDTA's petition to intervene and recommended that a procedural schedule be set at a later date.

Commissioner Nelson moved to grant SDTA's petition to intervene. Commissioner Sahr seconded and Chairman Burg concurred. Motion passed 3-0.

17. TC02-085 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR QWEST CORPORATION. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

Chairman Burg moved to assess a filing fee not to exceed $100,000 with an initial deposit of $1,000.00. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.

18. TC02-086 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR FORT RANDALL TELEPHONE COMPANY AND MT. RUSHMORE TELEPHONE COMPANY. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

John Burke, representing S&S Communications, explained the petition to intervene.

Chairman Burg moved to grant intervention to S&S Communications. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

Chairman Burg moved to assess a filing fee not to exceed $100,000 with an initial deposit of $1,000.00. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.

19. TC02-087 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR DTG COMMUNITY TELEPHONE. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

John Burke, representing S&S Communications, explained the petition to intervene.

Chairman Burg moved to grant intervention to S&S Communications. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

Chairman Burg moved to assess a filing fee not to exceed $100,000 with an initial deposit of $1,000.00. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.

20. TC02-088 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR ROBERTS COUNTY TELEPHONE COOPERATIVE ASSOCIATION AND RC COMMUNICATIONS, INC. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

John Burke, representing S&S Communications, explained the petition to intervene.

Chairman Burg moved to grant intervention to S&S Communications. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

Chairman Burg moved to assess a filing fee not to exceed $100,000 with an initial deposit of $1,000.00. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.

21. TC02-089 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR TRI-COUNTY TELCOM, INC. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

John Burke, representing S&S Communications, explained the petition to intervene.

Chairman Burg moved to grant intervention to S&S Communications. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

Chairman Burg moved to assess a filing fee not to exceed $100,000 with an initial deposit of $1,000.00. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.

22. TC02-090 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR THE LOCAL EXCHANGE CARRIERS ASSOCIATION. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

John Burke, representing S&S Communications, explained the petition to intervene.

Chairman Burg moved to grant intervention to S&S Communications. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

Chairman Burg moved to assess a filing fee not to exceed $100,000 with an initial deposit of $1,000.00. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.

23. TC02-091 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR SOUTH DAKOTA NETWORK, LLC. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

John Burke, representing S&S Communications, explained the petition to intervene.

Chairman Burg moved to grant intervention to S&S Communications. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

Chairman Burg moved to assess a filing fee not to exceed $100,000 with an initial deposit of $1,000.00. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.

Electric

1. XCEL ELECTRIC RELIABILITY STUDY (Commission Analyst: Greg Rislov.)

Peter Daly, representing Power System Engineering, Inc. (PSE), presented both an overview and the results of the reliability study for Xcel's South Dakota service area. The three-month study began on April 19, 2002, and assessed the adequacy, efficiency, and reasonableness of Xcel's electric power delivery and recommended improvements.

Meeting adjourned.

______________________________________
Mary R. Giddings
Administrative Secretary