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South Dakota Public Utilities Commission Meeting
Wednesday, July 11, at 1:30 P.M.
State Capitol Building, LCR 1
Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING

Chairman Dustin Johnson called the meeting to order.  Present were: Vice Chairman Gary Hanson; Commissioner Steve Kolbeck; Executive Director Patty Van Gerpen; Commission Attorneys Rolayne Wiest and John Smith; Staff Attorneys Karen Cremer and Kara Van Bockern; Staff Analysts Harlan Best, Dave Jacobson, James Mehlhaff, Bob Knadle, Martin Bettmann and Ketih Senger; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Demaris Axthelm.

Also present were: Brett Koenecke, May, Adam, Gerdes and Thompson, representing TransCanada Keystone Pipeline, LP; and Bob Miller, South Dakota Electric Utility Companies.

Joining the meeting by telephone were: Talbot Wieczorek, Gunderson, Palmer, Goodsell and Nelson, representing Sprint Communications Company L.P.; Ryan Taylor, Cutler and Donahoe, representing Splitrock Properties, Inc. and Hills Telephone Company, Inc.; Jim Cremer, Bantz, Gosch, and Cremer, representing James Valley Cooperative Telephone Company; Cindy Grosvenor, representing Valley Telecommunications Cooperative Association, Inc.; Meredith Moore, Cutler and Donahoe, representing Interstate Telecommunications Cooperative, Inc.; Colleen Sevold, Qwest; Mary Sisak, Blooston, Mordkofsky, Dickens, Duffy and Pendergast, representing Swiftel Communications; Brad Klein, Environmental Law & Policy Center; and Susan Stewart, MidAmerican Energy Company.  

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 104 contacts. Since the last report was prepared for the June 26, 2007, Commission meeting, 36 contacts involved telecommunications services; 21 contacts involved electricity issues; 4 contacts involved natural gas issues; 16 contacts involved cellular phone issues; 9 contacts involved Do Not Call Registry; and 18 contacts involved issues not regulated by the Public Utilities Commission.  In 2007, 1,156 of the 1,340 complaints registered have been resolved informally.  In 2006, 2,258 of the 2,466 complaints registered have been resolved informally.

Electric

1.      EL06-018        In the Matter of the Consideration of the New PURPA Standards (Staff Analyst:  Nathan Solem, Staff Attorney:  Kara Van Bockern)

            Ms. Kara Van Bockern stated that staff had filed a letter of recommendation on June 13, 2007. Mr. Nathan Solem did an analysis regarding PURPA Standard 14, Time-Based Metering and PURPA Standard 15, Interconnection.  Chairman Johnson stated that staff had come to the conclusion that adoption of the PURPA Standard 14 would not be in the public interest.  Vice Chairman Hanson stated that he agreed with staff and their recommendations.  Ms. Rolayne Wiest recommended that the Commission not adopt PURPA standard 14.  

            Commissioner Kolbeck moved to not accept PURPA Standard 14 in Docket EL06-018.  Motion passed 3-0.           

Ms. Van Bockern stated that staff recommended that the Commission examine PURPA Standard 15, Interconnection further and consider holding workshops to help in composing drafts that would work for South Dakota.  Ms. Wiest stated that Standard 15 is broadly written and recommended the Commission have affected utilities file interconnection agreements and procedures that are in accordance with current best practices, subject to the Commission's approval.  Ms. Wiest further stated that this would give the interested parties' time to review the procedures and also would allow them to bring concerns to the Commission.  Ms. Wiest also recommended staff work with utilities to see if there is a need for a uniform standard agreement and procedures for the affected utilities and to give a progress report next year to the Commission.  Ms. Wiest stated that the Commission could adopt the IEEE 1547 standards and consider the adoption of future IEEE 1547 standards when they are finalized.  Chairman Johnson asked Staff if they had considered beginning with uniform agreements and procedures that had been already adopted by another state.  Ms. Van Bockern stated that Staff had considered it but felt if they could first find the commonalities that it would be less frightening for the utility companies to move towards a change.  Mr. Brad Klein stated that if the goal is to try and reach current best practice for interconnection then it would be best to look at an existing model. 

            Chairman Johnson moved that all companies with an interconnection tariff submit such documents to the Commission within 60 days of receiving the Commission Order adopting the PURPA rule and Commission Staff then compare and plan to meet with utility companies to discuss similarities and that another state's model interconnection agreement and procedures be a part of the discussion.  Any proposed agreement and procedures would then have to be approved by the Commission.  Staff would hold workshops in 2008 and provide progress reports to the Commission.  Motion passed 3-0.

Hydrocarbon Pipeline  

1.      HP07-001        In the Matter of the Application of TransCanada Keystone Pipeline, LP for a Permit under the South Dakota Energy Conversion and Transmission Facility Act to Construct the Keystone Pipeline Project.  (Staff Analysts:  Martin Bettmann/Bob Knadle/Nathan Solem, Staff Attorney:  Kara Van Bockern) 

Ms. Kara Van Bockern stated that staff has no objections to granting party status to the persons that have filed applications.  Mr. Brett Koenecke, stated that TransCanada Keystone Pipeline has no objections.

Chairman Johnson moved to grant party status to persons that have filed for intervention by the deadline.  Motion passed 3-0.

Telecommunications

TC06-176        In the Matter of the Petition of Sprint Communications Company L.P. for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Brookings Municipal Utilities d/b/a Swiftel Communications.  (Staff Analyst:  Harlan Best, Staff Attorney:  Kara Van Bockern)

         Mr. Talbot Wieczorek, representing Sprint Communications asked that the Commission grant the delay of hearings in Docket TC06-176, TC06-178 and TC06-180 and also stated that progress is being made in completing a business deal and asked for a lengthy continuance in order to conclude the negotiations.  Ms. Mary Sisak stated that Swiftel has no comments and supports the motion for delay of hearings.  Ms. Kara Van Bockern stated that staff recommends approving the motion for delay of hearings.        

         Commissioner Kolbeck moved to grant Motion for delay of hearings in Dockets TC06-176, TC06-178 and TC06-180.  Motion passed 3-0.

In the Matter of the Request for Certification Regarding the Use of Federal Universal Service Support in Dockets TC07-032, TC07-039, TC07-041, TC07-042, TC07-044, TC07-045, TC07-052, TC07-054, TC07-055, TC07-056, TC07-058, TC07-060, TC07-062, TC07-063, TC07-067, and TC07-069

         TC07-032        In the Matter of the Request of James Valley Cooperative Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst:  Harlan Best, Staff Attorney:  Karen Cremer)

         TC07-039        In the Matter of the Request of Valley Telecommunications Cooperative Association, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst:  Harlan Best, Staff Attorney:  Karen Cremer)

         TC07-041        In the Matter of the Request of Splitrock Properties, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst:  Harlan Best, Staff Attorney:  Karen Cremer)

         TC07-042        In the Matter of the Request of Hills Telephone Company, Inc. for Certification Regarding its Use of Federal Universal Service Support.  (Staff Analyst:  Harlan Best, Staff Attorney:  Karen Cremer)

         TC07-044        In the Matter of the Request of West River Telecommunications Cooperative (Mobridge) for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst:  Harlan Best, Staff Attorney:  Karen Cremer)

         TC07-045        In the Matter of the Request of West River Telecommunications Cooperative (McLaughlin) for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst:  Harlan Best, Staff Attorney:  Karen Cremer)

         TC07-052        In the Matter of the Request of Golden West Telecommunications Cooperative, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst:  Harlan Best, Staff Attorney:  Karen Cremer)

         TC07-054        In the Matter of the Request of Sioux Valley Telephone Company for Certification Regarding its Use of Federal Universal Service Support.  (Staff Analyst:  Harlan Best, Staff Attorney:  Karen Cremer)

         TC07-055        In the Matter of the Request of Union Telephone Company for Certification Regarding its Use of Federal Universal Service Support.  (Staff Analyst:  Harlan Best, Staff Attorney:  Karen Cremer)

         TC07-056        In the Matter of the Request of Vivian Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst:  Harlan Best, Staff Attorney:  Karen Cremer)

         TC07-058        In the Matter of the Request of Venture Communications Cooperative for Certification Regarding its Use of Federal Universal Service Support.  (Staff Analyst:  Harlan Best, Staff Attorney:  Karen Cremer)

         TC07-060        In the Matter of the Request of RT Communications, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst:  Harlan Best, Staff Attorney:  Karen Cremer)

         TC07-062        In the Matter of the Request of Jefferson Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst:  Harlan Best, Staff Attorney:  Karen Cremer)

         TC07-063        In the Matter of the Request of PrairieWave Community Telephone, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst:  Harlan Best, Staff Attorney:  Karen Cremer)        

         TC07-067        In the Matter of the Request of City of Brookings Municipal Telephone for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst:  Harlan Best, Staff Attorney:  Karen Cremer)

         TC07-069        In the Matter of the Request of Valley Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst:  Harlan Best, Staff Attorney:  Karen Cremer)

         Mr. Harlan Best stated that the respective companies have filed according to the Commission's administrative rules for the certification of their use of federal universal service support, and the companies have certified that their support will be used in a manner that is consistent with the federal universal service provisions of 47 U.S.C. Section 254.  Staff has reviewed the filings and recommended that the Commission grant the requests for certification and issue certification letters to the FCC and the USAC.

         Vice Chairman Hanson moved to certify the use of USF funds and issue certification letters in Dockets TC07-032, TC07-039, TC07-041, TC07-042, TC07-044, TC07-045, TC07-052, TC07-054, TC07-055, TC07-056, TC07-058, TC07-060, TC07-062, TC07-063, TC07-067, and TC07-069.  Motion passed 3-0.

2.      In the Matter of the Filing for Approval of Amendments to Agreements in Dockets TC07-080 and TC07-081.

         TC07-080        In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and Qwest Communications Corporation. (Staff Attorney:  Kara Van Bockern)        

         TC07-081        In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and Covista, Inc.  (Staff Attorney:  Kara Van Bockern)

         Ms. Kara Van Bockern stated that the amendments have been properly filed, have been properly executed and do not appear to contain discriminatory provisions.  No comments were filed, and staff recommended approval of the Amendments. 

         Chairman Johnson moved to approve the amendments to the agreements in Dockets TC07-080 and TC07-081.  Motion passed 3-0.

ADDENDUM TO THE
AGENDA OF COMMISSION MEETING

Grain Warehouse

GD07-001       In the Matter of LW Sales/LW Seed's Failure to Obtain Necessary Licensure Prior to Operation as a Grain Dealer in the State of South Dakota. (Staff Analyst:  Jim Mehlhaff, Staff Attorney:  Kara Van Bockern)

            Ms. Kara Van Bockern stated that staff has had a difficult time working with and obtaining information from LW Sales.  Therefore Staff recommends that the Commission grant a motion to modify the procedural schedule to allow staff to file, for a motion summary judgment.

            Commissioner Kolbeck moved to grant the motion to modify procedural schedule in Docket GD07-001.  Motion passed 3-0.

Telecommunications

In the Matter of the Applications of Sprint Communications Company L.P. for Authority to Provide Local Exchange Services in Dockets TC06-178 and TC06-180

         TC06-178        In the Matter of the Application of Sprint Communications Company L.P. for Authority to Provide Local Exchange Services in Certain Rural Areas Served by Brookings Municipal Utilities d/b/a Swiftel Communications.  (Staff Analyst: Nathan Solem, Staff Attorney:  Kara Van Bockern) 

         TC06-180        In the Matter of the Application of Sprint Communications Company L.P. for Authority to Provide Local Exchange Services in Certain Rural Areas Served by Interstate Telecommunications Cooperative, Inc.  (Staff Analyst:  Nathan Solem, Staff Attorney:  Kara Van Bockern)

         Commissioner Kolbeck moved to grant the motion for delay of hearings in Dockets TC06-176, TC06-178 and TC06-180.  Motion passed 3-0.

Meeting adjourned.

___________________________________
Demaris Axthelm
Administrative Secretary