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South Dakota Public Utilities Commission Meeting
Thursday, August 15, 2002; 2:30 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; Executive Director Debra Elofson; Commission Advisor Greg Rislov; Commission Counsel John J. Smith; Commission Attorney Rolayne Ailts Wiest; 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 Dave Gerdes, OCMC, Level 3, and Midcontinent Communications, Inc./ McLeodUSA Incorporated; Darla Pollman Rogers, Beresford Municipal Telephone Company; and Rich Coit, SD Telecommunications Association.
Joining the meeting by telephone were Commissioner Bob Sahr; Linn Evans, Black Hills Power and Light; Mike Ramano and Tom Frieberg, Level 3; Jerry Zeimetz and Wayne Akland, Beresford Municipal Telephone Company; Mary Lohnes and Tom Simmons, Midcontinent Communications; Ron Sprangler, Otter Tail Power Co.; Colleen Sevold, Qwest Corporation; Joe Schuele, Martin Group; and Matt McCaulley, Hines & McCaulley.
Administration
1. APPROVAL OF THE MINUTES OF THE COMMISSION MEETINGS HELD ON JULY 23, AND 24, 2002. (Staff: Mary Giddings.)
Chairman Burg moved to approve the minutes of the Commission meetings held on July 23, and July 24, 2002. Commissioner Nelson seconded and Commissioner Sahr 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.
Chairman Burg moved to dismiss the complaints and close the dockets in dockets CC02- 001, CT02-011, CT02-020 and CT02-024. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Electric
Ron Sprangler, Otter Tail Power Company, explained the contract. Mr. Jacobson recommended the contract be approved.
Commissioner Nelson moved to approve the contract with deviations. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Telecommunications
Ms. Farris recommended that the Gold Line Telemanagement Inc. application for a certificate of authority be denied because it has not responded to Staff's correspondence.
Commissioner Nelson moved to deny a Certificate of Authority to Gold Line Telemanagement Inc. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Darla Pollman Rogers, representing Beresford Municipal Telephone Co., explained the motion to dismiss, stating that it was not appropriate to keep the docket open indefinitely while Level 3 made business plans. Dave Gerdes, representing Level 3, argued that the process would be prolonged and another fee would have to be paid if the application was dismissed. Mike Ramano, Level 3, stated that the business plan would not change he customer demand may not be there so Level 3 may not be able to do what it had planned. Rich Coit, representing the SD Telecommunications Association, noted that it appears that Level 3 will not be offering local exchange service and recommended that the motion to dismiss be granted. Mr. Senger recommended that Level 3 withdraw its application and noted that there is no filing fee.
Commissioner Nelson moved to grant Beresford Municipal Telephone Co.'s motion to dismiss. Commissioner Sahr seconded and Chairman Burg concurred. Motion passed 3-0.
Ms. Wiest recommended that the agreement be approved.
Commissioner Nelson moved to approve the agreement. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Dave Gerdes, representing OCMC, Inc., explained the transfer. Ms. Farris stated that OCMC, Inc. had complied with all the reporting requirements and recommended approval subject to a continuous $25,000 surety bond.
Chairman Burg moved to approve the transfer subject to a continuous $25,000 surety bond. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Dave Gerdes, representing Midcontinent Communications, Inc./ McLeodUSA Incorporated, explained the proposed agreement. Ms. Wiest recommended that the agreement be approved upon the filing of a revised agreement that deleted the section which attempted to limit the federal Act's "pick and choose" provision.
Chairman Burg moved to approve the agreement if revised. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Ms. Wiest recommended that the agreement be approved.
Chairman Burg moved to approve the agreement. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Ms. Wiest recommended that the agreement be approved.
Commissioner Nelson moved to approve the agreement. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Mr. Jacobson recommended that action be deferred because the Gross Receipts Tax is past due. Action was deferred.
Colleen Sevold, representing Qwest Corporation, explained the tariff revisions. Ms. Forney recommended that the tariff be approved with a July 2, 2002, effective date
Chairman Burg moved to approve the tariff revisions with an effective date of July 2, 2002. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Colleen Sevold, representing Qwest Corporation, explained the tariff revisions. Mr. Best recommended that the tariff revisions be approved.
Chairman Burg moved to approve the tariff revisions. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Colleen Sevold, representing Qwest Corporation, explained the tariff revisions. Ms. Forney recommended that the tariff revisions be approved.
Chairman Burg moved to approve the tariff revisions. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Ms. Forney explained the intervention, noted that there was no objection to Qwest intervening and recommended that intervention be approved.
Chairman Burg moved to grant intervention to Qwest. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Addendum
Telecommunications
Matt McCaulley, representing Hines & McCaulley, explained the proposed sale to PrairieWave Communications, Inc. and recommended that the sale be approved.
Based upon the evidence introduced at the hearing on Docket TC02-062 on August 12, 2002, in Viborg, South Dakota and on the documentary evidence introduced since the hearing in response to the Commission's request, Chairman Burg moved that the Commission find, subject to the conditions stated later in this motion, that the sale of the stock of McLeodUSA Community Telephone, Inc. and McLeodUSA Telecom Development, Inc., and the resulting transfer of control of Dakota Community Telephone, Inc. and of the local exchanges in South Dakota owned by Dakota Community Telephone, Inc. and McLeodUSA Telecom Development, Inc. to PrairieWave Communications, Inc. will:
Protect and further the public interest
Continue the provision of adequate local telephone service to local customers
Provide local service in these areas at reasonable rates
Continue to provide access to 911, Enhanced 911, and other public safety services
Not adversely effect the payment of taxes, and
Provide the effected rural communities access to modern, state of the art telecommunications services that will help promote economic development, telemedicine, and distance learning.
Chairman Burg further moved that the Commission find that there is no evidence in the record to indicate that there will be any material differences in the effect that the sale of the stock will have on any of the local exchanges as compared to any of the other exchanges and that the findings and conditions approved by the Commission be uniformly applicable to all of the affected local exchanges. Based on these findings, Chairman Burg further moved that the sale of stock and of the local exchanges, as set forth in the petition, be approved, subject to the Commission's approval of the sale of each local exchange by a separate vote as required by SDCL 49-31-59 and subject to the following conditions:
1. That the financing and purchase of the stock and the local exchanges proceed substantially in accordance with the terms of the Stock Purchase Agreement attached to the petition and the other documents submitted in support of the petition.
2. That current local rates not be increased for 18 months from the date PrairieWave begins to operate the purchased exchanges;
3. That PrairieWave not recover any of the acquisition adjustment through its regulated interstate or intrastate rates, through its local rates, or through federal or state universal service funds;
4. That PrairieWave honor all existing contracts, commitments, leases, licenses, and other agreements which relate to, arise from, or are used for the operation of the purchased exchanges;
5. That PrairieWave offer, at a minimum, all services currently offered by the purchased exchanges; and
6. That PrairieWave not discontinue any extended area service currently provided to the purchased exchanges without first obtaining approval from the Commission.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Alsen
from the Dakota Community Telephone, Inc. local exchange. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Beresford Rural from the Dakota Community Telephone, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Chancellor from the Dakota Community Telephone, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Davis
from the Dakota Community Telephone, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Flyger
from the Dakota Community Telephone, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Gayville
from the Dakota Community Telephone, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Hurley
from the Dakota Community Telephone, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Irene
from the Dakota Community Telephone, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Lennox
from the Dakota Community Telephone, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Monroe
from the Dakota Community Telephone, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Parker
from the Dakota Community Telephone, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Volin
from the Dakota Community Telephone, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Wakonda from the Dakota Community Telephone, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Worthing from the Dakota Community Telephone, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Canton
from the McLeodUSA Telecom Development, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Centerville from the McLeodUSA Telecom Development, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Colman
from the McLeodUSA Telecom Development, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Elk Point from the McLeodUSA Telecom Development, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Flandreau from the McLeodUSA Telecom Development, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Harrisburg from the McLeodUSA Telecom Development, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Madison from the McLeodUSA Telecom Development, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of North Sioux City from the McLeodUSA Telecom Development, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Tea
from the McLeodUSA Telecom Development, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Viborg
from the McLeodUSA Telecom Development, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Watertown from the McLeodUSA Telecom Development, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to approve the sale to PrairieWave Communications, Inc. of Yankton
from the McLeodUSA Telecom Development, Inc. local exchange. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Meeting adjourned.
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Mary R. Giddings
Administrative Secretary
