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South Dakota Public Utilities Commission Meeting
September 9, 2008, at 9:30 A.M.                                                                   
Room 464, Capitol Building
Pierre, South Dakota 

MINUTES OF THE COMMISSION MEETING

Chairman Gary Hanson called the meeting to order.  Present were: Vice Chairman Steve Kolbeck; Commissioner Dustin Johnson; Executive Director Patty Van Gerpen; Commission Advisor Greg Rislov; Commission Attorneys John Smith and Rolayne Wiest; Staff Attorneys Karen Cremer and Kara Semmler; Staff Analysts Dave Jacobson, Bob Knadle, Nathan Solem, Jon Thurber and Terri LaBrie Baker; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Demaris Axthelm.

Also present were:  Steve Willard, SD Electric Utility Companies; Margo Northrup, Riter, Rogers, Wattier & Northrup, representing South Dakota Rural Electric Association, Inc and South Dakota Telecommunications Association; Brett Koenecke, May, Adam, Gerdes and Thompson, representing MCC Telephony of the Midwest, Inc. d/b/a Mediacom; Kathy Ford, Knology Community Telephone, Inc; Bob Sahr and Jim Edwards, East River Electric Power Cooperative, Inc. and Rich Coit, South Dakota Telecommunications Association.

Joining the meeting by telephone were:  Jim Wilcox, Xcel Energy; Dave Prazak, Otter Tail Power Company; Kenna Hagan, Black Hills Power, Inc.; Suzan Stewart, MidAmerican Energy Company; Dan Wall, East River Electric Power Cooperative, Inc; Diane Browning, Sprint Communications Company L.P.; Talbot Wieczorek, Gunderson, Palmer, Goodsell & Nelson, representing Sprint Communications Company L.P.; Chris Madsen, Boyce, Greenfield, Pashby & Welk LLP, representing Qwest Communications Corporation; Isabel Salgate, Qwest Communications Corporation; Mary Sisak and John Prendergast, Blooston, Mordkofsky, Dickens, Duffy & Prendergast, representing Brookings Municipal Utilities d/b/a Swiftel Communications; Meredith Moore, Cutler & Donahoe, representing Reduced Rate Long Distance; and Colleen Sevold and George Thomson, Qwest Corporation.

Administration

  1. Approval of the Minutes of the Commission Meetings Held on May 20 and June 10, 2008. (Staff: Demaris Axthelm 

        Commissioner Johnson moved to approve the Commission Minutes of May 20, 2008 and June 10, 2008.  Motion passed 3-0.

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 314 contacts since the last report was prepared for the August 12, 2008 Commission meeting.  136 contacts involved telecommunications services; 45 contacts involved electricity issues; 21 contacts involved natural gas issues; 2 contacts involved electrical and natural gas services; 21 contacts involved cell phone services, 56 contacts involved the Do Not Call Registry; 1 contact involved the Keystone Pipeline, 1 contact involved the Grain Warehouse Division and 31 contacts involved issues not regulated by the Public Utilities Commission.   In 2008, 1,654 of the 1,754 complaints registered have been resolved informally.  In 2007, 2,312 of the 2,337 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 Semmler)

        Ms. Kara Semmler stated that staff held four Interconnection workshops.  The workshops were open to all interested persons.  The workshops were intended to specifically address the interconnection PURPA standards.  Staff started with a sample set of rules from Oregon.  The Oregon rules represent the most up to date technical standards.  Throughout the workshop process, the Oregon rules were amended to reflect South Dakota utility practice.  Staff recommended closing Docket EL06-018 as the workshop process has concluded and opening a rulemaking docket.  Staff further recommended the Commission use the rules drafted in the workshop process as a starting point.  Ms. Rolayne Wiest recommended that the Commission open a rulemaking docket and further recommended that the Commission request comments regarding Staff's rules submission prior to starting the formal rulemaking process and submitting rules to the Legislative Research Council. 

            Chairman Hanson moved to close Docket EL06-018 and open a rulemaking docket with comments due in three weeks from utility companies on what rules the Commission should adopt.  Motion passed 3-0.

2.      EL08-020        In the Matter of the Petition of East River Electric Power Cooperative, Inc. for a Declaratory Ruling on 115 kV Transmission Line Design. (Staff Analysts: Bob Knadle/Brian Rounds, Staff Attorney: Karen Cremer)

            Mr. Bob Sahr, East River Electric Power Cooperative, Inc. (East River), explained East River's preferred method of designing lines.  Mr. Sahr then briefed the Commission on East River's point of view according to SDCL 49-41B-2.  Ms. Karen Cremer stated that Staff filed its written response to East River's petition for declaratory ruling.  Ms. Karen Cremer further stated that as long as the 115 kV electric transmission line is in the public right-of-way, the Commission does not have siting jurisdiction.  Ms. Karen Cremer further stated that if the 115 kV electric transmission line is on private land running parallel to section lines, roads or highways and is located in close proximity to the outer edge of the public right-of-way then this would meet the exception.  If the 115 kV electric transmission lines are anywhere but on the property line then it does not meet the definition and the applicant should be required to prove that the transmission line would not pose a threat of serious injury to the social and economic conditions of the inhabitants of the siting area.  Chairman Hanson asked Mr. Sahr if East River's line posed a threat of serious injury to the social and economic conditions of the inhabitants of the siting area.  Mr. Bob Sahr stated that the line would not pose a threat of serious injury to the social and economic conditions of the inhabitants of the siting area.

            Commissioner Johnson moved that the Commission determine that it does not have siting authority over the 115 kV line in question and with regard to SDCL 49-41 B2.1 (2), the word "follows" means that the line is in close proximity to the outer edge of the public right-of-way.  Motion passed 3-0.

      
3.      EL08-023        In the Matter of the Joint Request for an Electric Service Rights Exception between Sioux Valley Energy and Xcel Energy. (Staff Analysts: Dave Jacobson/Jon Thurber, Staff Attorney: Kara Semmler)

            Mr. Jim Wilcox of Xcel Energy (Xcel) stated that it would be more economical for Xcel to serve the customer facility located in Sioux Valley Energy's service territory.  The customer and Sioux Valley Energy have agreed.  Dave Jacobson of Commission Staff explained that in the process of analyzing territory exception dockets pursuant to SDCL 49-34A-55, Staff has recently been requesting information regarding the facilities and cost necessary for each company to extend service to the customer. All other companies have provided the requested information except Xcel. Mr. Jim Wilcox stated that Xcel designers do not want to expend time responding to this request until after the Commission has ruled.  As a result, neither the customer nor the Commission knows the cost of extending facilities.   Nevertheless, Mr. Dave Jacobson recommended Commission approval with the condition that Xcel provide the requested information after the facilities are constructed. 

            Vice Chairman Kolbeck moved that the Commission approve the joint request for an electric service rights exception and that Xcel provide a description of the facilities constructed and its cost after construction is completed.  Motion passed 3-0.

Natural Gas

1.      NG08-006       In the Matter of the Filing by Montana-Dakota Utilities Co. for Approval of Tariff Revisions. (Staff Analyst: Dave Jacobson, Staff Attorney: Kara Semmler)

         Mr. Jacobson explained that MDU filed this application in order to bring its tariff gas service order form into compliance with the requirements of the Natural Gas Pipeline Safety Act and recommended approval.

         Vice Chairman Kolbeck moved to approve the tariff revisions in Docket NG08-006.  Motion passed 3-0.

Telecommunications

1.      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: Jon Thurber, Staff Attorney: Kara Semmler)

            Mr. Talbot Wieczorek asked the Commission to grant a certificate of authority to Sprint Communications Company L.P.  Ms. Kara Semmler stated the filing was according to the administrative rules and the applicant showed it can satisfy the rural safeguards required in both the Federal code and administrative rule 20:10:32:15.  The applicant showed it can meet the additional service requirements.  The applicant requests to serve within the Brookings rate center of the areas serviced by MCC. Staff recommended that the Commission grant a certificate of authority.  Mr. Brett Koenecke, representing MCC Telephony of the Midwest, Inc. d/b/a Mediacom ("MCC"), stated that MCC requested a waiver under section 18 to the extent the service of less than the entire area of Swiftel Communications requires a waiver.  MCC applied only to provide local exchange service in the Brookings exchange to potential customers presently located within the network served coverage area. 

            Vice Chairman Kolbeck moved to grant a certificate of authority to Sprint Communications Company LP in the geographical area currently served by MCC Telephony of the Midwest, Inc. d/b/a Mediacom.  Motion passed 3-0.

2.      TC06-188        In the Matter of the Application of MCC Telephony of the Midwest, Inc. d/b/a Mediacom for a Certificate of Authority to Provide Interexchange and Local Exchange Services in the Brookings Exchange (Staff Analyst: Jon Thurber, Staff Attorney: Kara Semmler)

         Mr. Brett Koenecke, representing MCC Telephony of the Midwest, Inc. d/b/a Mediacom ("MCC") asked that the Commission grant a certificate of authority to MCC.  Ms. Kara Semmler stated that the application was filed according to the administrative rules and MCC has shown that it will can meet the rural safeguards, and Staff recommended that Commission grant the request based on the current footprint of MCC.

         Chairman Hanson moved to grant a certificate of authority to MCC Telephony of the Midwest, Inc. d/b/a Mediacom.  Motion passed 3-0.

3.      TC07-107        In the Matter of Unauthorized Long Distance Changes and Unauthorized Telephone Charges Made by Reduced Rate Long Distance. (Staff Analysts: Brian Rounds/Deb Gregg, Staff Attorney: Kara Semmler)

         Ms. Meredith Moore stated that Reduced Rate has agreed to the compensation in the settlement order for the formal and the informal complaints that have been filed against Reduced Rate.  Ms. Moore asked that the Commission approve the consent order.

         Commissioner Johnson moved to approve the consent order and close Docket TC07-107.  Motion passed 3-0.

4.      TC07-128        In the Matter of the Filing by Sancom, Inc. d/b/a Mitchell Telecom for Approval of its Intrastate Switched Access Tariff and for an Extension of an Exemption from Developing Company Specific Cost-Based Switched Access Rates (Staff Analyst: Keith Senger, Staff Attorney: Karen Cremer)

         Ms. Karen Cremer stated that the companies have asked for a deferral until September 23, 2008.

         Commissioner Hanson moved that Docket TC07-128 be deferred until September 23, 2008.  Motion passed 3-0.

5.      In the Matter of the Request for Certification Regarding the Use of Federal Universal Service Support in Dockets TC08-074, TC08-084, and TC08-085

TC08-074        In the Matter of the Request of Brookings Municipal Telephone d/b/a Swiftel Communications for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Karen Cremer)

TC08-084        In the Matter of the Request of Knology Community Telephone, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Karen E. Cremer)

TC08-085        In the Matter of the Request of Knology of the Black Hills, LLC for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Karen Cremer)

            Ms. Kathy Ford stated that Knology has filed amended information and asked the Commission to grant the requested certifications. 

            Chairman Hanson moved to grant the certification to the Federal Communications Commission and to the Universal Service Administrative Company regarding the plan for the use of federal universal services support in Dockets TC08-074, TC08-084 and TC08-085.  Motion passed 3-0.

6.      TC08-086        In the Matter of the Request of Qwest Corporation for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Harlan Best/Terri LaBrie Baker, Staff Attorney: Karen Cremer)

            Ms. LaBrie Baker, staff analyst, stated that Qwest Corporation has filed according to the Commission's administrative rules for the certification of its use of federal universal service support and the company has certified that its support will be used in a manner that is consistent with the federal universal service provisions of 47 U.S.C. Section 254.  Qwest's residential rates are below the federal benchmark rates, and Staff has reviewed the filing and recommends that the Commission grant the request for certification and issue certification letters to the FCC and the USAC.  Mr. George Thomson had no comments.

            Commissioner Johnson moved to grant the certification to the Federal Communications Commission and to the Universal Service Administrative Company regarding the plan for the use of federal universal services support in Docket TC08-086.  Motion passed 3-0.

            Commissioner Johnson moved to provide a certification that Qwest is offering rates comparable to other carriers.  Motion passed 3-0.

7.      TC08-089        In the Matter of the Application of Clertech.Com, Inc. for a Certificate of Authority to Provide Local Exchange Services in South Dakota.(Staff Analyst: Terri LaBrie Baker, Staff Attorney: Karen Cremer)

            Ms. Terri LaBrie Baker stated that Staff recommends denying Clertech.Com, Inc.'s (Clertech) application for a certificate of authority due to an incomplete application, and therefore Staff recommended that the Commission dismiss and close Docket TC08-089.

         Vice Chairman Kolbeck moved to dismiss and close Docket TC08-089.  Motion passed 3-0.

8.      TC08-102        In the Matter of the Filing for Approval of an Interconnection Agreement between Qwest Corporation and Kentucky Data Link, Inc. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Kara Semmler)

         Ms. Kara Semmler stated the agreement was properly filed, properly executed and does not appear to contain discriminatory provisions.  No comments were filed and Ms. Semmler recommended approval of the interconnection agreement.

         Commissioner Johnson moved to approve the interconnection agreement.  Motion passed 3-0.

9.      TC08-103        In the Matter of the Petition of Brookings Municipal Utilities d/b/a Swiftel Communications for Approval of a Partial Relinquishment of its Designation as an Eligible Telecommunications Carrier. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Kara Semmler)

            Mr. John Prendergast asked the Commission to grant the petition to relinquish a portion of Swiftel's designation as an Eligible Telecommunications Carrier (ETC).  Mr. Prendergast stated that Swiftel is involved in a transaction with Crossroads to sell a portion of its wireless network.  Mr. Prendergast further stated that the public will be best served by this arrangement and asked that the relinquishment be effective when the transaction with Crossroads is completed.  Mr. Jon Thurber recommended that the Commission approve relinquishment for the areas specified in Swiftel's application. 

         Chairman Hanson moved to approve Brookings Municipal Utilities d/b/a Swiftel Communications' partial relinquishment of its designation as an eligible telecommunications carrier.  Motion passed 3-0.

There being no further business, at the hour of 11:24 pm the South Dakota Public Utilities Commission Meeting adjourned.  Next Commission meeting is September 23, 2008.

 

_/S/ Demaris Axthelm____________
Demaris Axthelm
Administrative Secretary
November 12, 2008