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South Dakota Public Utilities Commission Meeting
Monday, May 24, 2004 at 1:30 P.M.
Capital Building, Room 412
Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING


Chairman Bob Sahr called the meeting to order. Also present were Executive Director Pamela Bonrud; Deputy Executive Director Heather Forney; Commission Advisor Greg Rislov; Commission Attorney Rolayne Ailts Wiest; Staff Attorney Karen Cremer; Staff Analysts Michele Farris, Harlan Best, Dave Jacobson, Keith Senger, Jim Mehlhaff, and Sue Schaefer; and Administrative Secretary Tina Douglas.

Also present were Brett Koenecke, May, Adam, Gerdes and Thompson representing Midcontinent Communications; Darla Rogers, Riter, Rogers, Mayer, Hofer, Wattier & Brown representing the Local Exchange Carriers Association; Rich Coit, South Dakota Telecommunications Association; and Talbot Wieczorek, Gunderson, Paul, Goodsell & Nelson representing Western Wireless. 

Joining the meeting by telephone were Vice Chairman Gary Hanson; Commissioner Jim Burg; Colleen Sevold and Melissa Thompson, Qwest Corporation; Joe Schuele and Marlene Bennett, Martin Group; Alan Dietrich, NorthWestern Corporation; and Ross Petrick, Vantage Point Solutions.

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 1134 consumer contacts during 2004. Since the last report was prepared for the May 11, 2004, Commission meeting, 86 of these contacts had been received; 43 contacts involved telecommunications services; 4 contacts involved electricity issues; 5 contacts involved natural gas issues; 8 contacts involved gas and electric services; 7 contacts involved cellular phone issues; 6 contacts involved the Do Not Call registry; and 13 contacts involved miscellaneous services not regulated by the PUC. In 2004, 828 of the 1134 complaints registered have been resolved informally. In 2003, 1983 of the 2579 complaints registered have been resolved informally.

Natural Gas

1. NG04-001 In the Matter of the Application of MidAmerican Energy Company for Authority to Increase Rates for Natural Gas Service. (Staff Analyst: Dave Jacobson, Staff Attorney: Karen Cremer)

Ms. Cremer recommended granting intervention to Northern Natural Gas Company in NG04-001.

Chairman Sahr moved to grant intervention to Northern Natural Gas Company in NG04-001. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.

Telecommunications

1. TC03-108 In the Matter of the Establishment of Switched Access Rates for the Local Exchange Carriers Association. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

Ms. Darla Rogers, representing the Local Exchange Carriers Association (LECA), stated that LECA is asking that the revised switched access tariff go into effect starting June 4, 2004, subject to refund. Ms. Cremer indicated that the refund would be with interest and the tariff would go into effect starting June 4, 2004. Mr. Best recommended that the switched access rate which equals an average increase per access minute of $.0042 with an effective date of June 4, 2004, subject to refund with interest if applicable.

Chairman Sahr moved that the Commission approve the switched access rate equals an average increase per access minute of $.0042 with an effective date of June 4, 2004, subject to refund with interest until the final order is issued by the Commission. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.

2. TC04-003 In the Matter of the Filing by Midcontinent Communications for Designation as an Eligible Telecommunications Carrier within Qwest Service Areas. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

Mr. Brett Koenecke, Midcontinent Communications, stated that on January 8, 2004, Midcontinent Communications (Midcontinent) filed a petition to be designated as an eligible telecommunications carrier (ETC) for purposes of qualifying to obtain federal universal service support in the Qwest Corporation service areas, except Arlington, Chamberlain, Colman, DeSmet, Elk Point, Flandreau, Hill City, Lake Preston, Morristown, Vermillion, Volga-Bruce, Whitewood, and Yankton. On March 24, 2004, Midcontinent filed a Motion to Amend Petition. By this amendment, the exchanges of North Sioux City and North Valentine would be added to those Qwest service areas excluded from Midcontinent's application for ETC status. The Commission granted the petition amendment a April 6, 2004 meeting. Ms. Wiest asked if Midcontinent Communications had filed an exhibit showing the areas that it intends to provide service in and whether it is currently providing service those areas. Questions regarding lifeline linkup and advertising were also asked by Ms. Wiest. Mr. Koenecke indicated that it was not in file and asked that the docket be deferred until the next commission meeting so it can file the appropriate documentation requested by Ms. Wiest.

Chairman Sahr moved to defer docket TC04-003. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.

3. TC04-017 In the Matter of the Application of Airespring, Inc. for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)

Ms. Farris stated that Airespring, Inc. (Airespring) had submitted an application for a Certificate of Authority in accordance with the administrative rules of South Dakota. Airespring intends to provide resold interexchange services including, message toll service, incoming 800/888, directory assistance, data services, and travel card services throughout South Dakota. It has made all of staff recommended changes to the tariff. Airespring submitted a balance sheet and income statement, but indicated it is a small company and does not have a cash flow statement. Therefore, it has requested a waiver from ARSD 20:10:24:02(8) which requires it to submit cash flow statements. Ms. Farris recommended the Commission approve the request for a waiver of the financial information and also approve the Certificate of Authority for Airespring, Inc. with restrictions on deposits, advance payments, and pre-paid calling cards.

Chairman Sahr moved to grant the waiver of ARSD 20:10:24:02(8) and grant Airespring, Inc.'s Certificate of Authority with restrictions from accepting customer deposits and advance payments and offering prepaid services. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.

4. TC04-064 In the Matter of the Filing by MCImetro Access Transmission Services, LLC d/b/a MCI for Approval of its Intrastate Switched Access Tariff. (Staff Analyst: Keith Senger, Staff Attorney: Karen Cremer)

Mr. Senger stated that on March 26, 2004, MCImetro Access Transmission Services, LLC d/b/a MCI (MCI) filed an Access Services tariff. This tariff was not filed in accordance with the Commission's switched access rules. Staff has had numerous contacts with MCI who indicated that it would be filing a supplement to this docket and asking for the appropriate rule waivers. To date, nothing has been received and staff's telephone calls are no longer being returned. Mr. Senger recommended the Commission not approve the Intrastate Switched Access Tariff filed by MCImetro Access Transmission Services, LLC d/b/a MCI and close the docket.

Chairman Sahr moved to deny MCImetro Access Transmission Services, LLC d/b/a MCI's tariff and close the docket in TC04-064. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.

5. TC04-067 In the Matter of the Application of ACN Communication Services, Inc. for a Certificate of Authority to Provide Local Exchange Services in South Dakota. (Staff Analyst: Keith Senger, Staff Attorney: Karen Cremer)

Mr. Senger stated that on March 29, 2004, ACN Communication Services, Inc. (ACN) filed an application for a Certificate of Authority to provide local exchange telecommunications services in South Dakota. ACN intends to provide local exchange services in South Dakota as a facilities-based provider using unbundled network element platform (UNE-P) of Qwest. ACN is requesting a waiver from filing financial statements as required by ARSD 20:10:32:03(11). ACN has agreed to restrictions from offering any prepaid services and from accepting customer deposits and advance payments. Mr. Senger recommended the Commission grant the waiver of ARSD 20:10:32:03(11) and approve ACN Communication Services, Inc. local exchange authority subject to rural safeguards and with restrictions from offering any prepaid services and from accepting customer deposits and advance payments and with a June 1, 2004 effective date.

Chairman Sahr moved to grant the waiver of ARSD 20:10:24:02(11) and grant ACN Communication Services, Inc.'s Certificate of Authority of local exchange authority subject to rural safeguards and with restrictions from accepting customer deposits and advance payments and offering prepaid services with an effective date of June 1, 2004. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.

6. TC04-083 In the Matter of the Application of Qwest Communications Corporation for a Certificate of Authority to Provide Local Exchange Services in South Dakota. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)

Mr. Rich Coit, South Dakota Telecommunications Association, asked for intervention in TC04-083. Ms. Melissa Thompson, Qwest Corporation, had no objection to the intervention. Ms. Cremer recommended granting intervention to South Dakota Telecommunications Association in TC04-083.

Chairman Sahr moved to grant intervention to South Dakota Telecommunications Association in TC04-083. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.

Meeting adjourned.

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Tina Douglas
Administrative Secretary