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South Dakota Public Utilities Commission Meeting
Tuesday, June 14, 2005 at 10:30 A.M.
State Capitol Building, Room 412
Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING

Chairman Gary Hanson called the meeting to order. Also present were Commissioner Johnson; Executive Director Pamela Bonrud; Deputy Executive Director Heather Forney; Commission Advisor Greg Rislov; Commission Attorney Rolayne Ailts Wiest; Staff Attorney Sara Greff; Staff Analysts Dave Jacobson, Steve Wegman, Michele Farris, and Keith Senger; Paige Wilbur, Intern; Cheri Wittler, Court Reporter; and Administrative Secretary Tina Douglas.

Also present was Darla Rogers, Riter, Rogers, Wattier & Brown representing Golden West Telecommunications Cooperative, Inc., Vivian Telephone Company, Sioux Valley Telephone Company, Armour Independent Telephone Company, Bridgewater-Canistota Independent Telephone Company and Kadoka Telephone Company.

Joining the meeting by telephone was Vice Chairman Bob Sahr; Colleen Sevold and Tim Goodwin, Qwest Corporation; Amy Schuldt, Gunderson, Palmer, Goodsell & Nelson representing Western Wireless Corporation; Denny Law, Golden West Telecommunications Cooperative, Inc.; Melaine Acord, MidAmerican Energy Company; and Marv Truhe, Kyle White, and Todd Brink, Black Hills Power Company.

1. Approval of the Minutes of the Commission Meeting Held on May 24, 2005. (Staff: Tina Douglas.)

Commissioner Johnson moved to approve the Minutes of the Commission Meetings held on May 24, 2005. Chairman Hanson seconded and Commissioner Sahr concurred. Motion passed 3-0.

Consumer Issues

1. Status Report on Consumer Utility Inquiries and Complaints Received by the Commission. (Consumer Affairs: Jim Mehlhaff)

Jim Mehlhaff reported that the Commission had received a total of 760 consumer contacts during 2005. Since the last report was prepared for the May 24, 2005, Commission meeting, 106 of these contacts had been received; 39 contacts involved telecommunications services; 24 contacts involved electricity issues; 6 contacts involved natural gas issues; 6 contacts involved gas and electric services; 8 contacts involved cellular phone issues; 9 contacts involved the Do Not Call registry; and 14 contacts involved miscellaneous services not regulated by the PUC. In 2004, 2073 of the 2370 complaints registered have been resolved informally and in 2005, 637 of the 760 complaints registered have been resolved informally .

2. CT03-154 In the Matter of the Complaint filed by Black Hills FiberCom, L.L.C., Rapid City, South Dakota, against Qwest Corporation Regarding Intrastate Switched Access Charges Applied to ISP-Bound Calls which Complainant Claims is Interstate in Nature. (Staff Analyst: Jim Mehlhaff, Staff Attorney: Karen Cremer)

See Transcript of June 14, 2005, 10:30 a.m. Commission Meeting

Chairman Hanson moved to dismiss with prejudice Black Hills FiberCom's Amended Complaint and also the revoke the Commission's Amended Interim Decision and Order issued on March 14, 2005, and close docket CT03-154. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.

3. CT05-001 In the Matter of the Complaint filed by WWC License LLC against Golden West Telecommunications Cooperative, Inc., Vivian Telephone Company, Sioux Valley Telephone Company, Armour Independent Telephone Company, Bridgewater-Canistota Independent Telephone Company and Kadoka Telephone Company Regarding Intercarrier Billings. (Staff Analyst: Harlan Best, Staff Attorney: Rolayne Ailts Wiest)

See Transcript of June 14, 2005, 10:30 a.m. Commission Meeting

Chairman Hanson moved to deny issue number 2 dealing with undisputed overpayments made by WWC License LLC in WWC License LLC's Motion for Partial Summary Judgment. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.

Commissioner Johnson moved to grant issue number 3 dealing with the applicability of pre-judgment interest in WWC License LLC's Motion for Partial Summary Judgment and determine that pre-judgment interest under SDCL 21-1-12.1 will be applicable to any damages that the Commission may award to either party from the day that the loss or damage is demonstrated to have occurred but that this ruling should not be construed as an indication that the Commission has in anyway determined that damages will in fact be awarded to either party and that the parties must demonstrate with evidence both their entitlement to damages and the amount and the dates when each damage or loss event occurred for purposes of computing any pre-judgment interest due. Chairman Hanson seconded and Commissioner Sahr concurred. Motion passed 3-0.

Electricity

1. EL05-017 In the Matter of the Filing by MidAmerican Energy Company for Approval of Tariff Revisions. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)

Melaine Acord, MidAmerican Energy Company, is requesting revisions to its South Dakota Electric Tariff No. 1 for Commission approval. MidAmerican is revising Sheet No. 3 in Section No. 5 of the tariff. The revision eliminates the requirement for the Company to inform the Commission of instances in which energy diversion is detected. MidAmerican is unable to find this reporting requirement in the South Dakota rules and regulations. Ms. Farris stated that she also could not find this reporting requirement in the South Dakota rules and regulations. Ms. Farris recommended approval of the tariff revisions.

Chairman Hanson moved to approve the tariff revisions in EL05-017. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.

Natural Gas

1. NG05-004 In the Matter of the Filing by MidAmerican Energy Company for Approval of Tariff Revisions. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)

Ms. Farris stated that this is exactly the same type of docket as EL05-017 which the Commission approved. Ms. Farris recommended approval of the tariff revisions.

Commissioner Johnson moved to approve the tariff revisions in NG05-004. Chairman Hanson seconded and Commissioner Sahr concurred. Motion passed 3-0.

Telecommunications

1. TC05-005 In the Matter of the Application of Northstar Telecom, Inc. 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 on January 19, 2005, Northstar Telecom, Inc. submitted an application for a Certificate of Authority to provide interexchange and local exchange telecommunication service in South Dakota. Northstar intends to provide facilities based 1+ and 101XXXX outbound dialing, 800/888 toll free inbound dialing, calling cards, and data services, as well as, local exchange service for business and residential customers. Northstar intends to provide interexchange service throughout South Dakota and local exchange service throughout the state in the areas served by Qwest. Ms. Farris also stated that numerous attempts have been made to contact the company and no response has been received. Ms. Farris recommended denying Northstar Telecom Inc.'s application for a Certificate of Authority.

Commissioner Johnson moved to deny Northstar Telecom, Inc.'s application for a Certificate of Authority. Chairman Hanson seconded and Commissioner Sahr concurred. Motion passed 3-0.

Chairman Hanson presented Steve Wegman with a 30 year pin for service with the State of South Dakota.

2. TC05-063 In the Matter of the Application of Network Service Billing, Inc. for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Keith Senger, Staff Attorney: Karen Cremer)

Mr. Senger stated that on May 18, 2005, Network Service Billing Inc. filed an application for a Certificate of Authority to provide interexchange telecommunications service throughout South Dakota. The Applicant intends to provide direct and dial around services, toll free calling, directory assistance, data services and post paid calling card services. The applicant has requested waiver from filing financial statements as required by ARSD 20:10:24:02(8) and has agreed to restrictions from offering any prepaid services and from collecting customer deposit or advanced payment. Mr. Senger recommended the Commission grant the waiver request and issue Network Service Billing Inc. an Interexchange Certificate of Authority subject to restrictions with an effective date of July 18, 2005.

Chairman Hanson moved to grant the waiver of ARSD 20:10:24:02 (8) and grant Network Service Billing, Inc.'s Certificate of Authority with restrictions from offering prepaid calling cards or accepting customer deposits or advance payments with an effective date July 18, 2005. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.

3. In the Matter of Approving Agreements in TC05-064 and TC05-066

TC05-064 In the Matter of the Filing for Approval of a Master Services Agreement between Qwest Corporation and BullsEye Telecom, Inc. (Staff Attorney: Sara Greff)

TC05-066 In the Matter of the Filing for Approval of a Master Services Agreement between Qwest Corporation and DIECA Communications, Inc. d/b/a Covad Communications Company. (Staff Attorney: Sara Greff)

Sara Greff stated that the Agreements have been properly filed, have been properly executed and do not appear to contain discriminatory provisions, no comments were filed, and recommended approval of the Agreements.

Chairman Hanson moved to approve the Agreements in TC05-064 and TC05-066. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.

4. TC05-065 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and Midcontinent Communications. (Staff Attorney: Sara Greff)

Sara Greff stated that the Amendment to the Agreement has been properly filed, has been properly executed and does not appear to contain discriminatory provisions, no comments were filed, and recommended approval of the Amendment.

Chairman Hanson moved to approve the Amendment in TC05-065. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.

Meeting adjourned.

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Tina Douglas
Administrative Secretary