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South Dakota Public Utilities Commission Meeting
Tuesday, September 24, 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; Executive Director Debra Elofson; Assistant Executive Director Terri Iverson; Commission Advisor Greg Rislov; Commission Counsel John J. Smith; Commission Attorney Rolayne Ailts Wiest; Staff Attorneys Karen Cremer and Kelly Frazier; Staff Analysts Dave Jacobson, Heather Forney, Mary Healy and Michele Farris; and Administrative Secretary Mary Giddings.
Also present were Bob Miller, SD Electric Utility Companies; Bob Riter, McLeodUSA Telecommunications Services, Inc.; Talbot Wieczorek, Western Wireless Corporation fka GCC; Brian Meyer, SD Telecommunications Associations; and Dave Gerdes, Frontier Road Homeowners Association.
Joining the meeting by telephone were Commissioner Bob Sahr; Cindy Grosvenor and
Wendell Aanerud, TELEC Consulting; Liz Petroni, Capital Hill Consulting/Buyers United; Jerry Heiberger and Tracy Bandemer, Interstate Telecommunications Cooperative, Inc.; Pat Mastel and Ann Lundens, Dakota Community Telephone, Inc.; Colleen Sevold, Qwest Corporation; Joe Schuele and Marlene Bennett, Martin Group; Alice Walker, Cheyenne River Sioux Tribe Telephone Authority; Tom Connors and Paul Kutches, Jefferson Telephone Co., Inc.; Jeff Decker and Clyde Gross, NorthWestern Energy; Rodney Thiemann, Great Plains Communications, Inc.; Rosalie Gerdes, James Valley Cooperative Telephone Company; Andy Allyn, Complainant; Leon Kremeier, Otter Tail Power Co.; RaeAnn Kelsch, Suzie Rao and James Blundell, Western Wireless Corporation; Dave Clark, GVNW Consulting; Brian Donahoe, Baltic Telecom Cooperative and East Plains Telecom, Inc.; Gordon Dauchy, John Staurulakis; and Larry Hettinger, Vantage Point Solutions.
Administration
1. APPROVAL OF THE MINUTES OF THE COMMISSION MEETING HELD ON SEPTEMBER 5, 2002. (Staff: Mary Giddings.)
Commissioner Sahr was unavailable for the vote as his telephone linkage was temporarily disconnected.
Chairman Burg moved to approve the minutes of the September 5, 2002, and the September 6, 2002, Commission meetings. Commissioner Nelson seconded. Motion passed 2-0.
Consumer Issues
1. STATUS REPORT ON CONSUMER UTILITY INQUIRIES AND COMPLAINTS RECENTLY RECEIVED BY THE COMMISSION. (Consumer Affairs: Mary Healy.)
Mary Healy presented an update on inquiries and complaints received since the last Commission meeting.
2. IN THE MATTER OF DISMISSING DOCKETS CT02-027, CT02-029, and CT02-036.
Commissioner Sahr was unavailable for the vote as his telephone linkage was temporarily disconnected.
Chairman Burg moved to dismiss the complaints and close the dockets in Dockets CT02- 027, CT02-029, and CT02-036. Commissioner Nelson seconded. Motion passed 2-0.
Mr. Frazier stated that the complainant has not provided a clear statement of fact or amended her complaint as requested by Staff and he recommended that the complaint be dismissed and the docket closed. Bob Riter, representing McLeodUSA Telecommunications Services, Inc., noted that it had not been able to obtain the information needed to make a hearing necessary. Mr. Smith expressed concern that Ms. Nelson might believe that the matter was being resolved today because the Agenda stated "TODAY, if the above matter is resolved shall the Commission dismiss the complaint and close the docket?". Mr. Frazier responded that Ms. Nelson had been served with a motion to dismiss and a copy of a letter to the Executive Director of the Commission recommending denial and had been verbally notified several times that the action today could result in dismissing the complaint and closing the docket.
Chairman Burg moved to dismiss the complaint and close the docket. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Commissioner Nelson noted that at the September 5, 2002, hearing, Complainant stated on the record at the hearing that Complainant no longer had any issue with respect to Complaints 2, 3, 4 and 5 and that Complainant was no longer asking for relief on these issues. These items were that Otter Tail: Complaint 2) Failed to provide "copies of all bills and payments" to enable Complainant and Otter Tail to resolve the issues between them. Complaint 3) Failed to post payments Complainant paid on her account. Complaint 4) Threatened to bring an NSF complaint against Complainant based on Complainant's stopping payment on a check issued and delivered to Otter ail as payment for services. Complaint 5) Improperly trimmed Complainant's tree and placed the resulting tree cuttings on boards in her yard that she wished to use. Complaint issue 1 stated that Otter Tail "Incorrectly billed for electric service provided and/or charged excessive amounts for electric service." Complaint issue 6 stated that"Otter Tail changed Complainant's billing rate from Otter Tail's RDC rate."
Commissioner Nelson moved that the Complaints regarding issues 2, 3, 4 and 5 be dismissed on the grounds that Complainant has agreed that she does not seek Commission action on these issues. Commissioner Nelson moved that Complaint issue 1 be denied on the grounds that the evidence did not demonstrate that the billings by Otter Tail inaccurately reflected usage or otherwise failed to conform to Otter Tail's filed tariff or Commission rules. The evidence showed that a meter test was conducted on both meters serving the Complainant's home and the meter test demonstrated that both meters were reading well within the standard for meter accuracy set forth in ARSD 20:10:17:06. The evidence in the record does not support finding that the meter usage actually recorded was improperly billed. The evidence also showed that Otter Tail did inspect the RDC controller and offered the Complainant advice concerning managing power consumption and that Complainant could have avoided the maintenance charge for the RDC controller with a telephone call to cancel the service. Commissioner Nelson further moved that the Complaint issue 6 be denied on the grounds that the RDC billing was stopped only because Complainant was not utilizing the RDC controller to control demand. The evidence showed that Otter Tail tried to work with the Complainant to find a solution to her usage problem and made specific recommendations to Complainant as to how to use the system to reduce usage. Complainant, however, failed to implement these recommendations. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Electric
Dave Gerdes, representing the Frontier Road Homeowners Association (Homeowners), explained that the petition to intervene is actually a late filed intervention and stated that the Homeowners would be disadvantaged if this area is annexed by the City of Fort Pierre in the future. Ms. Farris noted that Sam Tidball, Mayor of Fort Pierre, was not opposed to intervention. Ms. Cremer also stated that she was not opposed to intervention.
Chairman Burg moved to grant late filed intervention to the Frontier Road Homeowners
Association. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Natural Gas
Jeff Decker, representing NorthWestern Energy, explained the filing which would revise the fuel retention percentage of the Gas Transportation Tariff General Terms and Conditions which call for the retention percentage to be adjusted annually. Mr. Jacobson recommended approval.
Chairman Burg moved to approve the tariff with the updated retention percentage. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Telecommunications
Action was deferred.
TC02-156 IN THE MATTER OF THE REQUEST OF WWC LICENSE LLC FOR CERTIFICATION REGARDING ITS USE OF FEDERAL UNIVERSAL SERVICE SUPPORT.
James Blundell, representing WWC License LLC, a subsidiary of Western Wireless Corporation, argued that the company would miss first quarter 2003 revenue if certification was not granted. Brian Meyer, representing SD Telecommunications Association, recommended that action be deferred. Ms. Wiest noted that Western Wireless was not yet an ETC in the rural areas.
Chairman Burg moved that the Commission find it is unable to provide certification to the FCC regarding Western Wireless' service in the rural areas listed in the Commission's order because Western Wireless has not yet been found in compliance with the Commission's order conditionally granting it ETC status. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Mr. Frazier stated that on December 5, 2001, he petitioned the Commission to issue an order to show cause as to why BuyersOnLine should not be found in violation of state law for selling telecommunication services without a certificate of authority and failure to pay gross receipt taxes. This docket has been before the Commission on three prior occasions and in each instance the company agreed to take steps requested by Staff to avoid Staff moving the Commission to issue an Order to Show Cause. The company agreed to file for a Certificate of Authority and did so in TC02-013. Staff moved to have the application denied in TC02-013 at the July 23, 2002, meeting due to the company's failure to respond to Staff's data requests. Staff sent a letter on August 27, 2002, requesting that the company respond as to why Staff should not move the Commission to issue an Order To Show Cause as a result of this dismissal and BuyersOnLine did not respond.
Commissioner Nelson moved to issue an order to Show Cause as to why BuyersOnLine should not be found to be violation of state law. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Ms. Forney recommended that Telefyne Incorporated be granted a certificate of authority.
Chairman Burg moved to grant a certificate of authority to Telefyne Incorporated. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Marlene Bennett, representing Martin Group, explained the name change request.
Commissioner Nelson moved to approve the tariff revisions. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Mr. Frazier stated that the company does not have a certificate of authority to offer the services provided for in this proposed interconnection agreement and has not responded to Staff's requests that the company either file an application for a certificate of authority or waive the automatic 90-day implementation of the 1996 Telecommunications Act.
Chairman Burg moved to deny the interconnection agreement. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Mr. Frazier recommended that the agreement be approved.
Commissioner Nelson moved to approve the agreement. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Colleen Sevold, representing Qwest Corporation, 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.
8. IN THE MATTER OF THE DOCKETS REQUESTING FEDERAL UNIVERSAL SERVICE SUPPORT CERTIFICATION. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer)
TC02-135 IN THE MATTER OF THE REQUEST OF FAITH MUNICIPAL TELEPHONE COMPANY FOR CERTIFICATION REGARDING ITS USE OF FEDERAL UNIVERSAL SERVICE SUPPORT.
Ms. Cremer recommended approval of certification regarding its use of federal universal service support for dockets TC02-111, TC02-114, TC02-117, TC02-118, TC02-119, TC02-121, TC02-122, TC02-123, TC02-124, TC02-125, TC02-126, TC02-127, TC02-128, TC02-129, TC02-130, TC02-132, TC02-133, TC02-134, TC02-135, TC02-136, TC02-137, TC02-138, TC02-139, TC02-140, TC02-141, TC02-142, TC02-143, TC02-144, TC02-145, TC02-146, TC02-147, TC02-148, TC02-149, TC02-150, TC02-151, TC02-152, TC02-153, TC02-154, TC02-157 and TC02-158,
Chairman Burg moved that the Commission provide a certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the plan for the use of federal universal services support as proposed in dockets TC02-111, TC02-114, TC02-117, TC02-118, TC02-119, TC02-121, TC02-122, TC02-123, TC02- 124, TC02-125, TC02-126, TC02-127, TC02-128, TC02-129, TC02-130, TC02-132, TC02-133, TC02-134, TC02-135, TC02-136, TC02-137, TC02-138, TC02-139, TC02-140, TC02-141, TC02- 142, TC02-143, TC02-144, TC02-145, TC02-146, TC02-147, TC02-148, TC02-149, TC02-150, TC02-151, TC02-152, TC02-153, TC02-154, TC02-157 and TC02-158.
Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Meeting adjourned.
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Mary R. Giddings
Administrative Secretary
