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South Dakota Public Utilities Commission Meeting
Tuesday, September 12, 2006, at 9:30 A.M.
State Capitol Building, Room 412
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Chairman Bob Sahr called the meeting to order. Present were Vice Chairman Dustin Johnson; Commissioner Gary Hanson; Executive Director Patty Van Gerpen; Deputy Executive Director Heather Forney; Commission Advisor Greg Rislov; Commission Attorneys Rolayne Ailts Wiest and John Smith; Staff Attorneys Karen Cremer and Kara Van Bockern; Staff Analysts Dave Jacobson, Keith Senger, Harlan Best, and Bob Knadle; Consumer Affairs Supervisor, Deb Gregg; and Administrative Secretary Tina Douglas.
Also present were Bob Miller, South Dakota Electric Utility Companies; Brett Koenecke, May, Adam, Gerdes & Thompson, representing NorthWestern Energy; and Darla Rogers, Riter, Rogers, Wattier & Brown, representing South Dakota Rural Electric Association (SDREA), Codington – Clark, City of Gillette, and various Incumbent Local Exchange Companies.
Joining the meeting by telephone were Brian Iverson and Jackie Sargeant, Black Hills Corporation; Meredith Moore, Cutler & Donahoe representing Golden West Companies; Talbot Wieczorek, Gunderson, Palmer, Goodsell & Nelson representing WWC License, LLC, RCC Minnesota, Inc. and Wireless Alliance, L.L.C.; Colleen Sevold and Larry Toll, Qwest Corporation; Steve Otto, RCC Minnesota, Inc.; Suzie Rao, AllTel Corporation; Jeff Decker and Jay Morris, NorthWestern Energy; and Cindy Grosvenor, Consortia Consulting.
Consumer Reports
1. Status Report on Consumer Utility Inquiries and Complaints Received by the Commission. (Consumer Affairs: Deb Gregg)
Ms. Deb Gregg reported that the Commission had received a total of 1,695 consumer contacts during 2006. Since the last report was prepared for the August 23, 2006, Commission meeting, 112 of these contacts had been received; 20 contacts involved telecommunications services; 26 contacts involved electricity issues; 10 contacts involved natural gas issues; 22 contacts involved cellular phone issues; 12 contacts involved do not call issues; and 22 contacts involved issues not regulated by the Public Utilities Commission. In 2006, 1,420 of the 1,695 complaints registered have been resolved informally. In 2005, 1,674 of the 1,885 complaints registered have been resolved informally. Ms. Gregg also reported that 191 residential numbers were added to the Do Not Call Registry at the State Fair and 59 residential numbers were verified.
Electricity
Brett Koenecke representing NorthWestern Energy stated that the Petitioners have confirmed that they are moving the project to Madison and the docket can be dismissed and closed. Ms. Darla Rogers, representing SDREA and Codington-Clark Electric Cooperative, Inc., and her clients do not object to the dismissal. Ms. Karen Cremer had spoken to Mr. Archer, representing Dakota Vinyl and he stated that the Petitioner wanted the docket dismissed. Ms. Cremer recommended dismissing and closing the docket.
Commissioner Hanson moved to dismiss and close the docket. Commissioner Johnson seconded. Motion carried. 2-0
Ms. Darla Rogers, representing the City of Gillette, stated that the City of Gillette had decided not to intervene in this docket and asked that their intervention be withdrawn. Ms. Karen Cremer recommended that the withdrawal of the Petition of the City of Gillette be granted.
Commissioner Johnson moved to grant the Withdraw Petition of City of Gillette to Intervene. Commissioner Hanson seconded. Motion carried. 2-0
Telecommunications
Ms. Kara Van Bockern stated that 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 Agreement.
Chairman Sahr moved to approve the Agreement in TC06-064. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
2. In the Matter of the Filing of Amendments to Agreements in Dockets TC06-065, TC06-145, TC06-149, and TC06-150
Ms. Kara Van Bockern stated that all the companies have active Certificates of Authority. The Amendments to 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 Amendments to the Agreements.
Chairman Sahr moved to approve the Amendments to the Agreements in TC06-065, TC06-145, TC06-149, and TC06-150. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Ms. Karen Cremer recommended granting the Waivers of ARSD sections 20:10:32:52 - 20:10:32:54, inclusive. Ms. Cremer further stated that Northeast Nebraska Telephone Company's (Northeast) study area is largely contained within the state of Nebraska and because Northeast will comply with the Nebraska Public Service Commission requirements for ETC certification, that should be sufficient for the filing within South Dakota once staff has reviewed the Nebraska Filing.
Chairman Sahr moved to grant the Waivers of ARSD sections 20:10:32:52, 20:10:32:53, and 20:10:32:54 subject to staff recommendations. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Ms. Karen Cremer recommended granting the Waivers of ARSD sections 20:10:32:52, 20:10:32:53 and 20:10:32:54 for the same reasons stated in TC06-132.
Chairman Sahr moved to grant the Waivers of ARSD sections 20:10:32:52, 20:10:32:53, and 20:10:32:54. Commissioner Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0.
Mr. Harlan Best recommended granting the Waiver of ARSD section 20:10:32:53. Mr. Best also stated that the Heartland Telecommunications Company of Iowa d/b/a HickoryTech (HickoryTech) filed a plan for the use of its federal universal service support and verified that HickoryTech 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 grant the certification in this docket as filed. Ms. Rolayne Wiest asked if HickoryTech had filed a 2008 plan. Mr. Best indicated that HickoryTech had not at this time.
Commissioner Johnson moved to grant the Waiver of ARSD section 20:10:32:53. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Commissioner Johnson moved to defer action on the certification of HickoryTech until the Commission has received HickoryTech's 2008 build out plan. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Mr. Harlan Best recommended granting the Waiver of ARSD section 20:10:32:53. Mr. Best also stated that the Jefferson Telephone Company (Jefferson) filed a plan for the use of its federal universal service support and also verified that Jefferson 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 grant the certification in this docket as filed.
Commissioner Hanson moved to grant the Waiver of ARSD section 20:10:32:53 and 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 this docket. Commissioner Johnson seconded and Chairman Sahr concurred. Motion passed 3-0.
Ms. Karen Cremer recommended that the extension be granted.
Chairman Sahr moved to grant the extension in Docket TC06-151. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Administration
1. In the Matter of the Amendment to a Contract with Dr. Michael K. Madden (Deputy Executive Director: Heather K. Forney)
Ms. Heather Forney stated that as part of the Big Stone II docket, the Commission authorized staff to enter into a consultant contract with Dr. Michael K. Madden in an amount not to exceed $20,000. Staff later asked Dr. Madden to expand the scope of his research. Dr. Madden completed all work requested by staff and the Commission has received his final bill. The billing from Dr. Madden exceeded the original contract amount by $3,189.83 as a result of the additional research performed. Staff is requesting approval to amend the amount of Dr. Madden's contact by $3,189.83
Commissioner Hanson moved to amend the amount of the contract an additional $3,189.83 for final payment. Commissioner Johnson seconded and Chairman Sahr concurred. Motion passed 3-0.
Telecommunications
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In the Matter of the Request for Certification Regarding its Use of Federal Universal Service Support in Dockets TC06-131 and TC06-143.
Mr. Harlan Best recommended deferring Docket TC06-131 and TC06-143 because the companies have not responded to staff's data request.
Chairman Sahr moved to defer Dockets TC06-131 and TC06-143. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
In the Matter of the Request for Certification Regarding its Use of Federal Universal Service Support in Dockets TC06-105, TC06-106, TC06-107, TC06-108, TC06-109, TC06-110, TC06-111, TC06-112, TC06-113, TC06-114, TC06-115, TC06-117, TC06-118, TC06-119, TC06-120, TC06-121, TC06-122, TC06-123, TC06-124, TC06-125, TC06-127, TC06-128, TC06-129, TC06-130, TC06-134, TC06-135, TC06-136, TC06-137, TC06-138, TC06-139, and TC06-146
Mr. Harlan Best stated that each of these companies filed a request estimating how much Universal Service Support it may receive in the coming year and also showed estimated expenses. In each docket the expenses exceeded the monies the company may receive for Universal Service Support. In each docket the company stated all the monies it receives for Universal Service Support will be used in the appropriate manner as required by the FCC. Mr. Best recommended that the Commission grant certification in each docket as filed.
Commissioner Johnson asked if there was a build out plan for the year 2008 in TC06-146. Mr. Best stated that Citizens Telecommunications Company of Minnesota, LLC answered that question by stating that it has appropriate facilities already in place and are just planning on maintaining its facilities.
Chairman Sahr 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 Dockets TC06-105, TC06-106, TC06-107, TC06-108, TC06-109, TC06-110, TC06-111, TC06-112, TC06-113, TC06-114, TC06-115, TC06-117, TC06-118, TC06-119, TC06-120, TC06-121, TC06-122, TC06-123, TC06-124, TC06-125, TC06-127, TC06-128, TC06-129, TC06-130, TC06-134, TC06-135, TC06-136, TC06-137, TC06-138, and TC06-139. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Commissioner Johnson 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 TC06-146. Commissioner Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0.
In the Matter of the Request for Certification Regarding its Use of Federal Universal Service Support in Dockets TC06-100, TC06-101, TC06-126, and TC06-140
Chairman Sahr moved that the Commission go into executive session to discuss the confidential documentation in Dockets TC06-100, TC06-101, TC06-126, and TC06-140. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Confidential Discussion
Chairman Sahr moved that the Commission come out of executive session. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Harlan Best stated that in TC06-100 and TC06-101 that each of these companies filed a request estimating how much Universal Service Support it may receive in the coming year and also showed estimated expenses. In each docket the expenses exceeded the monies the company may receive for Universal Service Support. In each docket the company stated all the monies it receives for Universal Service Support will be used in the appropriate manner as required by the FCC. Mr. Best recommended that the Commission grant certification in each docket as filed.
Mr. Best stated that in Docket TC06-126 that Qwest's residential rates in rural areas are reasonably comparable to the urban rates nationwide. Mr. Best recommended that the Commission certify that Qwest's residential rates in rural areas are reasonably comparable to the urban rates nationwide and also that the Commission grant certification to Qwest.
Chairman Sahr moved that the Commission certify that Qwest's residential rates in the rural areas are reasonably comparable to the urban rates nationwide and also to 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 TC06-126. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Chairman Sahr 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 Dockets TC06-100 and TC06-101. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Best stated that the Commission should defer action on TC06-140 until the company can answer the questions the Commission had in this docket.
Chairman Sahr moved to defer Docket TC06-140. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
