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South Dakota Public Utilities Commission Meeting
Tuesday, March 23, 2004 at 9:30 A.M.
Capital Building, Room 412
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Chairman Bob Sahr called the meeting to order. Also present were Vice Chairman Gary Hanson; Executive Director Pamela Bonrud; Commission Advisor Greg Rislov; Commission Attorneys Rolayne Ailts Wiest and John Smith; Staff Attorney Karen Cremer; Staff Analysts Michele Farris, Keith Senger, Harlan Best, Dave Jacobson, Steve Wegman, Jim Mehlhaff, and Sue Schaefer; and Administrative Secretary Tina Douglas.
Also present were Rich Coit, South Dakota Telecommunications Association; Bob Miller, South Dakota Electric Utility Companies; Brett Koenecke, May, Adam, Gerdes and Thompson representing Midcontinent Communications; David Gerdes, May, Adam, Gerdes and Thompson representing Midcontinent Communications and Xcel Energy; and Jim Wilcox, Xcel Energy.
Joining the meeting by telephone were Darla Rogers - Riter, Rogers, Mayer, Hofer, Wattier & Brown representing Kennebec Telephone Company and Santel Communications; Mary Sisak, Blooston, Mordkoffky, Jackson, Dickens representing Kennebec Telephone Company; Gene Kroell, Santel Communications; Rod Bowar, Kennebec Telephone Company; Talbot Wieczorek, Gunderson, Paul, Goodsell & Nelson representing Western Wireless; Dan Wall, East River Electric Power Cooperative Inc.; Dan Davis, Telec Consulting; Mary Lohnes, Midcontinent Communications; Meredith Moore, Cutler & Donahoe representing Alliance Communications; Colleen Sevold and Larry Toll, Qwest Corporation; Drew Duncan, Frieberg Law Office; Suzie Rao, Western Wireless; Steve Hjermstad, Xcel Energy; Paul Roberts, Clay-Union Electric Corporation; and Ron Spangler, Otter Tail Power Co.
Administration
1. Approval of the Minutes of the Commission Meetings Held on February 17 and March 2, 2004. (Staff: Tina Douglas.)
Commissioner Hanson moved to approve the minutes of the Commission meetings held on February 17 and March 2, 2004. Chairman Sahr seconded. Motion passed 2-0.
Consumer Issues
1. Status Report on Consumer Utility Inquiries and Complaints Received by the Commission. (Consumer Affairs: Jim Mehlhaff.)
Mr. Mehlhaff reported that the Commission received a total of 551 consumer contacts during 2004. Since the last report was prepared for the March 2, 2004, Commission meeting, 149 of these contacts had been received; 80 contacts involved telecommunications services; 10 contacts involved electricity issues; 10 contacts involved natural gas issues; 26 contacts involved cellular phone issues; 10 contacts involved the do not call registry; and 13 contacts involved miscellaneous services not regulated by the PUC. In 2004, 384 of the 551 complaints registered have been resolved informally. In 2003, 1962 of the 2579 complaints registered have been resolved informally.
Electric
Mr. Jim Wilcox, Xcel Energy asked that the Commission accept the certification as conforming to SDCL 49-41B-27.1. Ms. Farris stated that on December 19, 2003, Xcel Energy requested that the facility permit issued in EL01-001 on May 20, 1993 be amended to reflect the proposed construction of a third simple cycle combustion turbine generator at the Angus C. Anson site near Sioux Falls, SD. The Construction permit was issued for up to four 100-megawatt simple cycle combustion turbine generators at the site. Currently there are two 105 MW generators installed at the site. Xcel is proposing to construct a 160 MW capacity generator at the facility. Although the generator is larger in capacity than originally permitted, Xcel Energy has certified that the conditions upon which the Commission granted the facility permit for up to four combustion turbines will continue to be met with the installation of the larger unit proposed for construction. Technology has improved over the past 10 years and the new unit although larger will be more efficient. There is an abandoned raptor nest located approximately 800 feet from the facility. Xcel is working with Fish and Wildlife Service regarding this nest and potential construction issues. The Commission held a public meeting on March 4, 2004 to hear comments from the public regarding construction of an additional turbine. Based on the information submitted, Ms. Farris recommended the Commission accept the certification as conforming to SDCL 49-41B-27.
Commissioner Hanson moved to accept the certification as conforming to SDCL 49-41B-27. Chairman Sahr seconded. Motion passed 2-0.
Mr. Paul Roberts, Clay-Union Electric Corporation, stated all parties have mutually agreed to the territory exchange. Ms. Farris stated that on February 9, 2004, the Commission received a notice of a request for approval for an amendment to an existing territory agreement that had been approved in EL03-004. On March 18, 2004, the Commission received a revised amended agreement. The City of Vermillion and Clay Union Electric are requesting approval for the mutually agreed allocation of service territory between Clay Union Electric and the City of Vermillion. The City shall now serve Lot 2, Block 1, Deyonge Addition to the City of Vermillion, Clay County, South Dakota and Clay-Union shall now serve Lot 3, Block 1, Deyonge Addition to the City of Vermillion, Clay County, South Dakota. Clay Rural Water is the only potential electric customer affected by this agreement. It contacted the City of Vermillion and requested the exchange. Ms. Farris recommended the Commission approve the electric service territory boundary change.
Commissioner Hanson moved to approve the electric service territory boundary change between City of Vermillion and Clay-Union Electric Corporation. Chairman Sahr seconded. Motion passed 2-0.
Mr. Ron Spangler, Otter Tail Power Company (Otter Tail), asked the Commission to approve Otter Tail's revisions to its tariffed Summary List of Contracts with Deviations. The existing contract with the City of Sisseton will expire on March 11, 2004. Mr. Spangler stated the new agreement does not contain any deviations from Otter Tail's currently filed tariff and therefore requests that reference to a contract with the City of Sisseton be removed from the Summary List of Contracts with Deviations. Mr. Jacobson recommended approval of Otter Tail's tariff revisions in EL04-004 with an effective date of March 11, 2004.
Commissioner Hanson moved to approve the tariff revisions in EL04-004 with an effective date of March 11, 2004. Chairman Sahr seconded. Motion passed 2-0.
Mr. Jacobson stated that Otter Tail Power Company (Otter Tail) filed an application for approval to revise its tariffed Summary List of Contracts with Deviations. The existing contract with the City of Milbank will expire on March 14, 2004. Otter Tail states the new agreement does not contain any deviations from Otter Tail's currently filed tariff and therefore requests that reference to a contract with the City of Milbank be removed from the Summary List of Contracts with Deviations. Mr. Jacobson recommended approval of Otter Tail's tariff revisions in EL04-005 with an effective date of March 14, 2004.
Commissioner Hanson moved to approve the tariff revisions in EL04-005 with an effective date of March 14, 2004. Chairman Sahr seconded. Motion passed 2-0.
Mr. Jacobson stated that Otter Tail Power Company (Otter Tail) filed an application for approval to revise its tariffed Summary List of Contracts with Deviations. The existing contract with the City of Hetland will expire on April 1, 2004. Otter Tail states the new agreement does not contain any deviations from Otter Tail's currently filed tariff and therefore requests that reference to a contract with the City of Hetland be removed from the Summary List of Contracts with Deviations. Mr. Jacobson recommended approval of Otter Tail's tariff revisions in EL04-006 with an effective date of April 1, 2004.
Commissioner Hanson moved to approve the tariff revisions in EL04-006 with an effective date of April 1, 2004. Chairman Sahr seconded. Motion passed 2-0.
Mr. Jacobson stated that Otter Tail Power Company (Otter Tail) filed an application for approval to revise its tariffed Summary List of Contracts with Deviations. The existing contract with the City of Lake Preston will expire on April 1, 2004. Otter Tail states the new agreement does not contain any deviations from Otter Tail's currently filed tariff and therefore requests that reference to a contract with the City of Lake Preston be removed from the Summary List of Contracts with Deviations. Mr. Jacobson recommended approval of Otter Tail's tariff revisions in EL04-007 with an effective date of April 1, 2004.
Commissioner Hanson moved to approve the tariff revisions in EL04-007 with an effective date of April 1, 2004. Chairman Sahr seconded. Motion passed 2-0.
Mr. Jacobson stated that Otter Tail Power Company (Otter Tail) filed an application for approval to revise its tariffed Summary List of Contracts with Deviations. The existing contract with the City of Trent will expire on April 1, 2004. Otter Tail states the new agreement does not contain any deviations from Otter Tail's currently filed tariff and therefore requests that reference to a contract with the City of Trent be removed from the Summary List of Contracts with Deviations. Mr. Jacobson recommended approval of Otter Tail's tariff revisions in EL04-008 with an effective date of April 1, 2004.
Commissioner Hanson moved to approve the tariff revisions in EL04-008 with an effective date of April 1, 2004. Chairman Sahr seconded. Motion passed 2-0.
Telecommunications
1. TC03-196 In the Matter of the Application of France Telecom Corporate Solutions L.L.C. for a Certificate of Authority to Provide Interexchange Telecommunications Services and Local Exchange Services in South Dakota. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)
Ms. Farris stated that France Telecom Corporate Solutions, LLC (France Telecom) had submitted an application for a Certificate of Authority in accordance with the administrative rules of SD. France Telecom intends to provide resold local exchange service and interexchange telecommunications services in South Dakota. France Telecom intends to offer its services initially in the territory now served by Qwest Corporation. It has made all of staff recommended changes to the tariff. France Telecom has requested a waiver from ARSD 20:10:24:02(8) and 20:10:32:03(11), which requires it to submit current balance sheet, income statement, and cash flow statements. It has stated it does not collect advanced payments or deposits and will bill monthly in arrears for its local service. In addition it does not offer prepaid calling cards. Ms. Farris recommended the Commission approve the requests for a waivers of the financial information and also approve the Certificate of Authority for France Telecom Corporate Solutions, LLC to provide local exchange and interexchange services, with the requirement it comply with the rural safeguards and with restrictions from accepting advanced payments or deposits or from offering prepaid calling cards.
Chairman Sahr moved to grant the waivers of ARSD 20:10:24:02(8) and 20:10:32:03(11) and grant France Telecom Corporate Solutions L.L.C.'s Certificate of Authority with rural safeguards and with restrictions from accepting customer deposits and advance payments and offering prepaid services. Commissioner Hanson seconded. Motion passed 2-0.
3. In the Matter of Approving Agreements in TC04-024, TC04-026, TC04-027, TC04-028, TC04-031, TC04-032, TC04-033, TC04-035, and TC04-036
Ms. Wiest recommended approval of the Agreements.
Commissioner Hanson moved to approve the Agreements in TC04-024, TC04-026, TC04- 027, TC04-028, TC04-031, TC04-032, TC04-033, TC04-035, and TC04-036. Chairman Sahr seconded. Motion passed 2-0.
See Transcript of March 23, 2004, 9:30 a.m. Commission Meeting of TC04-025
Commissioner Hanson moved to grant intervention to Western Wireless and South Dakota Telecommunications Association in TC04-025. Chairman Sahr seconded. Motion passed 2- 0.
Chairman Sahr moved to instruct the parties and staff to forthwith have a conference call to discuss how to proceed on the question of the immediate suspension in TC04-025. Commissioner Hanson seconded. Motion passed 2-0.
Commissioner Hanson moved to grant intervention to Western Wireless, Midcontinent Communications, and South Dakota Telecommunications Association in TC04-038. Chairman Sahr seconded. Motion passed 2-0.
Chairman Sahr moved to instruct the parties and staff to forthwith have a conference call to discuss how to proceed on the question of the immediate suspension in TC04-038. Commissioner Hanson seconded. Motion passed 2-0.
6. TC04-039 In the Matter of the Request of Qwest Corporation for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)
Ms. Cremer stated that no parties have filed for intervention in TC04-039. Mr. Larry Toll stated on February 27, 2004, Qwest Corporation (Qwest) provided information constituting Qwest's plan for the use of its federal universal service support and to otherwise verify that Qwest will use all federal universal service support received in a manner that is consistent with the federal universal service provisions of 47 U.S.C. Section 254. Mr. Best recommended that the Commission should provide a letter of 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 docket TC04-039.
Commissioner Hanson moved that the Commission provide a letter of 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 docket TC04-039. Chairman Sahr seconded. Motion passed 2-0.
Ms. Cremer stated that no parties have filed for intervention in TC04-040. No action is required by the Commission at this time.
Addendum
Electric
Ms. Farris stated that on February 27, 2004, East River Electric filed an application for its proposed Sioux Falls area 115 kilovolt Transmission Upgrade Project. The project consists of converting approximately 36 miles of 69 kV transmission line to 115 kV transmission line as well as upgrading 7 existing 69 kV distribution substations to 115 kV substations. The estimated cost of the project is $6.9 million. In accordance with SDCL 49-41B-12 the maximum fee chargeable by the Commission may not exceed 3 of 1% of the estimated construction cost. Therefore, the maximum fee allowed is $17,250. SDCL 49-41B-12 also states the minimum total fee chargeable may not be less than $8,000. Ms. Farris recommended the Commission assess a filing fee not to exceed $17,250 with an initial deposit of $8,000.
Commissioner Hanson moved to assess a filing fee not to exceed $17,250 with an initial deposit of $8,000 in EL04-009. Chairman Sahr seconded. Motion passed 2-0.
Telecommunications
See Transcript of March 23, 2004, 9:30 a.m. Commission Meeting of TC03-191
Commissioner Hanson moved to grant the Motion to Withdraw Petition to Intervene for Alliance Communications Cooperative, Inc. and Splitrock Properties, Inc. in TC03-191. Chairman Sahr seconded. Motion passed 2-0.
Chairman Sahr moved to deny the Motion to Compel for Interrogatories 1C and 1D. Commissioner Hanson seconded. Motion passed 2-0.
Chairman Sahr moved to deny the Motion to Compel for Interrogatory 4. Commissioner Hanson seconded. Motion passed 2-0.
Chairman Sahr moved to deny the Motion to Compel for Interrogatory 5. Commissioner Hanson seconded. Motion passed 2-0.
Chairman Sahr moved to grant the Motion to Compel for Interrogatories 6B, 6C, 6D and 6G. Commissioner Hanson seconded. Motion passed 2-0.
Chairman Sahr moved to recess to go into Executive Session. Commissioner Hanson seconded. Motion passed 2-0.
Chairman Sahr moved to come out of Executive Session and proceed with the Commission Meeting. Commissioner Hanson seconded. Motion passed 2-0.
Chairman Sahr moved to grant the Motion to Compel for Interrogatory 7. Commissioner Hanson seconded. Motion passed 2-0.
Chairman Sahr moved to grant the Motion to Compel for Interrogatory 9. Commissioner Hanson seconded. Motion passed 2-0.
Chairman Sahr moved to deny the Motion to Compel for Interrogatories 10 and 11. Commissioner Hanson seconded. Motion passed 2-0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
