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South Dakota Public Utilities Commission Meeting
Tuesday, December 19, 2006, at 9:30 A.M.
State Capitol Building, Room 412
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Present were: Chairman Dustin Johnson; Vice Chairman Gary Hanson; Commissioner Steve Kolbeck; Executive Director Patty Van Gerpen; Deputy Executive Director Heather Forney; Commission Advisor Greg Rislov; Commission Attorneys Rolayne Wiest and John Smith; Staff Attorneys Karen Cremer and Kara Van Bockern; Staff Analysts Keith Senger, Harlan Best, Dave Jacobson, Steve Wegman and Bob Knadle; Consumer Affairs Supervisor, Deb Gregg; and Administrative Secretary Demaris Axthelm
Also present were: Brett Koenecke, May, Adam, Gerdes and Thompson, representing Northwestern Energy; Jeff Decker, Northwestern Energy; Dave Gerdes, May, Adam Gerdes and Thompson, representing Xcel Energy; Darla Pollman Rogers, Riter, Rogers, Wattier & Brown, representing Millennium Ethanol and Midstate Telecom Inc.; Bob Miller, South Dakota Electrical Utility Companies; Mike Bradley, Fort Randall Telephone Company; Bruce Hanson Fort Randall Telephone Company; Rich Coit, South Dakota Telecommunication's Association.
Joining the meeting by telephone were: Talbot Wieczorek, Gunderson, Palmer, Goodsell & Nelson, representing RCC Minnesota, Inc. and Wireless Alliance, L.L.C.; Doug Furlich, Aventure Communication Technology LLC; Brad Schardin, South Eastern Electric; Steve Domm, Millenium Ethanol; Steve Otto, Rural Cellular Corp (RCC); Ryan Taylor, Cutler & Donahoe,representing Alliance Communications; John Vermillion and Ed Welch, AMPI; Mark Benton, Midstate Telecom, Inc.; Gary Schumacher, Wilkinson and Wilkins representing City of Arlington; Dave Prazak, Otter Tail Power Company; Jason Topp, Qwest Corporation; William Heaston, PrairieWave Telecommunications, Inc.; Gerald Rix, Mayor of Groton, South Dakota.
Administration
1. Approval of the Minutes of the Commission Meetings Held on September 12, September 26, October 19, October 31, and November 14, 2006, and Ad Hoc Meetings Held October 5, October 10, and November 20, 2006. (Staff: Demaris Axthelm)
Vice Chairman Hanson moved to approve the Commission Minutes of September 12, September 26, October 19, October 31, and November 14, 2006, and Ad Hoc Meetings Held October 5, October 10, and November 20, 2006. Chairman Johnson seconded and Commissioner Kolbeck concurred. Motion carried 3-0
Consumer Reports
1. Status Report on Consumer Utility Inquiries and Complaints Received by the Commission. (Consumer Affairs: Deb Gregg)
Ms. Kara Van Bockern reported that the Commission had received a total of 2,398 consumer contacts during 2006. Since the last report was prepared for the December 6, 2006 Commission meeting, 94 of these contacts had been received; 31 contacts involved telecommunications services; 19 contacts involved electricity issues; 12 contacts involved natural gas issues; 2 contacts involved cellular phone issues; 13 contacts involved Do Not Call issues; 0 contacts involved wind energy issues; and 17 contacts involved issues not regulated by the Public Utilities Commission. In 2006, 2,065 of the 2,398 complaints registered have been resolved informally. In 2005, 1,692 of the 1,885 complaints registered have been resolved informally.
Complaints
Mr. Gary Schumacher, representing the City of Arlington stated that a Stipulation was filed on December 6, 2006, and requested the Commission accept the Stipulation and enter an order, stating the same. Ms. Kara Van Bockern stated that Staff had no objections to the Stipulation and recommended that the Commission approve the Stipulation.
Commissioner Kolbeck moved to approve the Stipulation and to Dismiss and Close Docket CE06-003. Chairman Johnson seconded and Vice Chairman Hanson concurred. Motion carried 3-0
2. In the Matter of the Complaints Filed Against Dish Network Regarding Do Not Call Complaints in Dockets CT06-002, CT06-003, CT06-004, CT06-005, and CT06-006.
Ms. Kara Van Bockern stated that she and Ms. Deb Gregg have done a thorough investigation on each individual Complaint. Ms. Van Bockern stated that they now more fully understand the business of Dish Network and it would be an unfair burden for each individual to carry their own case when statutorily they would not gain anything in return. Ms Van Bockern recommended that the Commission dismiss the complaints, but informed the Commissioners that they will hear facts and updates on each Complaint against Dish Network in Docket TC06-191.
Chairman Johnson moved to dismiss the Complaints and close Dockets CT06-002, CT06-003, CT06-004, CT06-005 and CT06-006. Commissioner Kolbeck seconded and Vice Chairman Hanson concurred. Motion carried 3-0
Electric
Mr. Dave Gerdes, representing Xcel Energy (Xcel) requested that the Commission approve its Motion to Extend the Final Approval Deadline. Mr. Gerdes stated that Xcel is working with South Dakota, Minnesota and Federal Department of Transportation on how to handle certain towers along the interstate on the border between South Dakota and Minnesota and at a rest area on the border. Xcel is working on solving these issues but asked for an extension to allow time to finalize this project. Ms. Karen Cremer has been in contact with the parties and is in agreement with this extension. Ms. Cremer recommended that the deadline be extended to July 1, 2007.
Vice Chairman Hanson moved to approve to extend the Final Approval Deadline to July 1, 2007, in Docket EL05-023. Commissioner Kolbeck seconded and Chairman Johnson concurred. Motion carried 3-0
Ms. Darla Rogers, representing Millennium Ethanol and Southeastern Electric Cooperative requested the Commission approve the Settlement Stipulation that has been reached between Xcel Energy, Southeastern Electric and Millennium. Mr. Dave Gerdes, representing Xcel Energy, had no objections. Mr. Martin Bettmann stated that Staff has reviewed the Settlement Agreement and recommended approval.
Chairman Johnson moved to approve the Settlement Stipulations of EL06-022 and EL06-023. Commissioner Kolbeck seconded and Vice Chairman Hanson concurred. Motion carried 3-0
Mr. Dave Ross of Basin Electric gave a Power Point presentation on the proposed project. See power point presentation:
/commission/dockets/electric/2006/el06-025/basinpowerpointpresentation.pdf.
Ms Kara Van Bockern stated that if the waiver was approved the time frame for the permit itself would not be affected, and that the public would still have time to respond and provide input. Mayor Rix of Groton, chairman of the local review committee, stated that he had spoken with local businesses, law enforcement and county commissioners and that no one disagreed with the Commission granting the waiver. Mr. Martin Bettmann stated that this should not shorten staff ability to review the application. Ms Van Bockern stated staff can't review anything in any case before Basin Electric files the application. Ms. Van Bockern recommended granting the waiver.
Commissioner Kolbeck moved to grant a waiver pursuant to SDCL 49-41B-23 from §49-41B-5 regarding the timeline of the filing of a notification of intent and the submission of the application for a permit to construct a generation facility. Chairman Johnson seconded and Vice Chairman Hanson concurred. Motion carried 3-0
Natural Gas
Mr. Brett Koenecke, representing Northwestern Energy (Northwestern) stated that Northwestern is requesting approval for Northwestern to purchase the transmission pipeline owned by Associated Milk Producers Incorporated which transports gas to the Freeman system. The AMPI pipeline and Freeman gas system serve approximately 350 customers. Mr. Dave Jacobson recommended that the Commission approve the purchase of AMPI Transmission pipeline by Northwestern, approve the sale of the Freeman distribution system, and approve the tariff revisions and rates proposed for these facilities and the withdrawal of the AMPI tariff. Mr. Jacobson further requested that the approval be subject to the condition that these approvals will not be construed as an approval of acquisition cost in any future rate case.
Chairman Johnson moved to approve the purchase of AMPI Transmission pipeline, the Freeman distribution system, revised tariff and rates, subject to the condition that the approved shall not be construed as approving acquisition cost any future rate case and the withdrawal of the AMPI tariff. Vice Chairman Hanson seconded and Commission Kolbeck concurred. Motion carried 3-0
Telecommunications
Mr. Steve Otto, of Rural Cellular Corp (RCC) and Wireless Alliance, L.L.C., requested that the Commission modify their ETC Designation Order to have their annual compliance filing and their ETC annual certification filings coincide on the date of the annual certification due June 1. Ms. Karen Cremer recommended that the docket be reopened and the docket amended so the annual report date coincides with the ETC's annual certification filing.
Chairman Johnson moved to grant the Motion to reopen Docket TC03-193 and modify the ETC Designation Order to have RCC and Wireless Alliance annual compliance filing and their ETC annual certification filings coincide on the due date for the annual certification filing. Vice Chairman Hanson seconded and Commissioner Kolbeck concurred.
Motion carried 3-0
Oral argument was heard.
See Transcript:
/commission/dockets/telecom/2005/tc05-016/viborg.pdf
Ms. Darla Rogers representing Midstate Telecom, Inc. (Midstate) and Ms. Karen Cremer stated that the parties all agreed to dismiss or withdraw all of the Qwest Intervention. Ms. Roger further stated that Midstate's calling scope is somewhat different than Qwest's calling scope in that Midstate's also includes Platte, White Lake, Delmont, New Holland, Stickney and Gann Valley. Ms. Rogers stated that it is in the best interest of the public to approve this calling area and that it will not cause any problems to grant Midstate Motion. Mr. Keith Senger recommended that the Commission approve Midstates Motion to expand calling area.
Chairman Johnson moved to dismiss Qwest's Intervention in Docket TC06-035. Commissioner Kolbeck seconded and Vice Chairman Hanson concurred. Motion carried 3-0
Commissioner Kolbeck moved to approve Midstate's petition to expand its local calling area to include Platte, White Lake, Delmont, New Holland, Stickney and Gann Valley. Vice Chairman Hanson seconded. Chairman Johnson concurred. Motion carried 3-0
Mr. Rich Coit of SDTA stated SDTA has no objection to the Commission granting a Certificate of Authority to Aventure Communication Technology LLC. Mr. Harlan Best recommended that the four Vivian Telephone exchanges should be included and that the Commission approve the Certificate of Authority for local exchange services for Aventure Communication subject to restrictions from accepting deposits or advance payments and from offering pre-paid services and to grant the request for confidential treatment of Aventures financial statements. Ms. Kara Van Bockern contacted, the other intervenors and they had no objections.
Chairman Johnson moved to grant Aventure Communication Technology LLC's Certificate of Authority with restrictions from offering prepaid calling cards or accepting customer deposits or advance payments. Commissioner Kolbeck seconded and Vice Chairman Hanson concurred. Motion carried 3-0
Chairman Johnson moved to grant confidential treatment of Aventures financial statements submitted in TC06-047. Vice Chairman Hanson seconded and Commissioner Kolbeck concurred Motion carried 3-0
Mr. Jason Topp, Qwest Corporation, explained that this filing was made to comply with the FCC's order a WC Docket No. 02-89. Ms. Kara Van Bockern recommended that the Settlement Agreement be approved.
Commissioner Kolbeck moved to approve the Settlement Agreement in Docket TC06-093. Vice Chairman Hanson seconded and Chairman Johnson concurred. Motion carried 3-0
6. In the Matter of the Failure of Certain Telecommunications Companies to Timely File the Gross Receipts Tax. (Deputy Executive Director: Heather K. Forney)
The following companies have failed to timely file their gross receipts tax as required by SDCL 49-1A:
Wireless Companies that have not filed:
SkyTel Communications, Inc.
Local Exchange Providers that have not filed or paid:
CI2, Inc.
Local Exchange and Long Distance Providers that have not filed or paid:
Acceris Communications Corp.
Long Distance Providers that have not filed, and not paid:
BAK Communications, LLC
Exergy Group, LLC
Gates Communications, Inc.
Global Communications Consulting Group
Inmark, Inc. – DBA: Preferred Billing
Long Distance Providers that have filed, but not paid:
ACXX Communications, LLC
Advanced Tel, Inc. d/b/a ATI
National Access Long Distance, Inc.
Telenational Communications, Inc.
Telliss, LLC
WDT World Discount Telecommunications Co.
Ms. Heather Forney stated that she has sent out three billing statements and has not received payment at the time of the Commission meeting. Ms. Karen Cremer recommended granting staff motion to issue an Order to Show Cause.
Vice Chairman Hanson moves that the commission Issue an Order to Show Cause. Chairman Johnson seconded and Commissioner Kolbeck concurred. Motion carried 3-0
ADDENDUM
Electric
Mr. Dave Prazak, Otter Tail Power Company, stated that Otter Tail and Valley Queen Cheese Factory, Inc. have a five-year agreement which is due to expire on December 31, 2006. Otter Tail and Valley Queen are requesting a one-month extension in order to reach an agreement on new rates for service and requested that the Commission approve the extension with less than 30-days notice. Mr. Dave Jacobson recommended approval of the extension with less than 30-days notice.
Chairman Johnson moved to grant the extension with less than 30-days notice. Commissioner Kolbeck seconded and Vice Chairman Hanson concurred. Motion carried 3-0
Telecommunications
Mr. Harlan Best stated that Ionex requested to decrease the carrier common line rate to the rate charged by Qwest Corporation. The rate decrease went into effect November 28, 2006.
Chairman Johnson moved to accept the tariff revisions as filed in Docket TC06-193 with the effective date of November 28, 2006. Vice Chairman Hanson seconded and Commissioner Kolbeck concurred. Motion Carried 3-0
Meeting adjourned.
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Demaris Axthelm
Administrative Secretary
