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South Dakota Public Utilities Commission Meeting
July 14, 2009, at 9:30 A.M.
Room 413, Capitol Building
Pierre, South Dakota

 MINUTES OF THE COMMISSION MEETING

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

Also present were:  Dave Gerdes, May, Adam, Gerdes and Thompson, representing Verizon Business Network Services, Inc. and Northern States Power Company d/b/a Xcel Energy; and Margo Northrup, Riter, Rogers, Wattier & Northrup, representing South Dakota Telecommunications Association and LECA.

Joining the meeting by telephone were:  Bill Heaston, SDN Communications; Chris Kilpatrick, Garner Anderson and Brian Iverson, Black Hills Power; Meredith Moore, Cutler and Donahoe, representing Alliance Communications Cooperative, Inc., McCook Cooperative Telephone Company, Beresford Municipal Telephone Company, Kennebec Telephone Company, Santel Communications Cooperative, Inc. and West River Cooperative Telephone Company.; Talbot Wieczorek, Gunderson, Palmer, Goodsell and Nelson, representing Alltel Communications, Inc.; George Thomson and Dave Ziegler, Qwest Corporation; Jim Wilcox, Kari Zipko and Debra Paulson, Xcel Energy; Bill VanCamp, Olinger, Lovald, McCahren and Reimers, representing A T & T Communications of the Midwest, Inc. and Tom Dixon, Verizon Business.

Administration

1.      Approval of the Minutes of the Commission Meeting Held on April 21, 2009. (Staff:  Demaris Axthelm)

Commissioner Gary Hanson moved to approve the Commission Minutes of the April 21, 2009, meeting.  Motion passed 2-0.

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 107 contacts since the last report was prepared for the June 23, 2009 Commission meeting. 21 contacts involved telecommunications services; 31 contacts involved electrical services; 8 contacts involved natural gas service, 1 contact involved electrical and gas issues; 7 contacts involved cell phone services; 15 contacts involved the Do Not Call Registry; 3 contacts were related to the Keystone XL Pipeline; 10 contacts involved wind energy; and 11 contacts involved issues not regulated by the Public Utilities Commission. In 2009, 1,419 of the 1,464 complaints registered have been resolved informally. In 2008, 2,512 of the 2,513 complaints registered have been resolved informally.   

Electric

1.        EL08-015      In the Matter of the Filing by Montana-Dakota Utilities Co. for Approval of Tariff Revisions (Staff Analysts: Dave Jacobson/Terri LaBrie Baker, Staff Attorney: Kara Semmler)

         Mr. Dave Jacobson stated that this was Montana-Dakota Utilities Company's (MDU) co-generation filing from last year.  Mr. Jacobson further stated that a new filing with updated information has replaced this filing and asked that the Commission allow the withdrawal of the old filing.

         Chairman Johnson moved to grant the request for withdrawal of filing.  Motion passed 2-0.

2.      EL09-007        In the Matter of the Filing for an Extension of an Electric Service Agreement for the Supply of Bulk Interruptible Power between Otter Tail Power Company and Valley Queen Cheese Factory, Inc. (Staff Analyst: Dave Jacobson, Staff Attorney: Karen Cremer)

         Mr. Dave Jacobson stated this is a cleanup filing filed after the expedited approval of the contract extension and is needed to revise the tariff sheet listing contracts with deviations to reflect the Commission's Order Approving Extension of Contract with Deviations.

         Commissioner Gary Hanson moved to approve the revised tariff sheet.  Motion passed 2-0.

3.      EL09-009        In the Matter of the Application of Northern States Power Company d/b/a Xcel Energy for Authority to Increase its Electric Rates. (Staff Analysts: Bob Knadle/Dave Jacobson/Terri LaBrie Baker/Jon Thurber/Tim Binder, Staff Attorney: Karen Cremer)

         Ms. Karen Cremer recommended that the Commission suspend the operation of the schedule of rates proposed by Xcel Energy for 90 days beyond July 30, 2009.  Mr. Dave Gerdes, representing Xcel Energy, stated that Xcel Energy had no objection to Staff's request to suspend the imposition of the tariff.

         Chairman Johnson moved to suspend the imposition of the tariff for 90 days beyond July 30, 2009.  Motion passed 2-0.

         Ms. Cremer stated that Staff recommends assessing a filing fee pursuant to SDCL 49-1A-8 up to the statutory limit of $100,000.  Mr. Gerdes stated that Xcel had no objection to Staff's request to assess a filing fee.

         Commissioner Hanson moved to access a filing fee for actual expenses not to exceed $100,000. Motion passed 2-0.

Telecommunications

1.      In the Matter of the Petition for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement in Dockets TC07-112,  TC07-114, TC07-115, and TC07-116  

         TC07-112        In the Matter of the Petition of McCook Cooperative Telephone Company for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)
        
         TC07-114        In the Matter of the Petition of Kennebec Telephone Company for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

         TC07-115        In the Matter of the Petition of Santel Communications Cooperative, Inc. for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

         TC07-116        In the Matter of the Petition of West River Cooperative Telephone Company for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

         Mr. Talbot Wieczorek, representing Alltel Communications, Inc. (Alltel), stated that the parties have narrowed their disputes to one unresolved issue regarding Alltel's Motion to Compel.  The remaining issue is whether the RLEC's should be required to disclose certain unit switching investments.  Ms Moore requested that the Commission deny the Motion to Compel and stated that if there should be disclosure, it should be limited to the costs associated with CALEA, Centrex and Web Self-Care or significantly limit any obligation to furnish information that is confidential. Ms. Karen Cremer stated that the information is needed by Alltel and recommended granting the Motion to Compel .   

         Chairman Johnson moved to grant the Motion to Compel in part as it relates to cost information for CALEA, Centrex and Web Self-Care, that such information shall be handled confidentially and that the RLECs shall ensure that  their vendors provide complete information responsive to the requests for disclosure or portions thereof for which disclosure is compelled by this motion.  Motion passed 2-0. 

2.      TC08-127        In the Matter of the Application of Qwest Corporation to Modify the Jurisdictional Report Requirements in Section 2 by Establishing a Percent Interstate Usage (PIU) Floor for Unidentified Feature Group D (FGD) Terminating Traffic. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)

         Mr. George Thompson, representing Qwest, stated that the revised tariff sheets are unopposed and therefore asked that the Commission approve the revised tariff sheets. Ms. Terri LaBrie Baker stated that Staff recommends approval of the revised tariff sheets and granting the withdrawals of intervention of Verizon and AT&T. 

         Chairman Johnson moved to approve the revised tariff sheets effective as of July 14, 2009.  Motion passed 2-0.

         Ms. Karen Cremer noted that Level 3 had withdrawn its intervention in December, and Ms. Cremer also noted that LECA and SDTA stated through e-mail that they had no objection to the withdrawal.

         Commissioner Hanson moved to grant the withdrawals of intervention requested by Verizon and AT&T.  Motion passed 2-0.

  1. In the Matter of the Request for Certification Regarding the Use of Federal Universal Service Support in Dockets TC09-025, TC09-026, TC09-027, and TC09-028 

         TC09-025        In the Matter of the Request of Kennebec Telephone Company, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)

         Kennebec Telephone Company, Inc. had no comments.  Ms. Terri LaBrie Baker stated that Kennebec had filed according to administrative rules, and  Staff recommends that the Commission provide a letter of certification to the FCC and USAC.   

         Chairman Johnson moved to provide 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 TC09-025.  Motion passed 2-0.

         TC09-026        In the Matter of the Request of Interstate Telecommunications Cooperative, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)

         TC09-027        In the Matter of the Request of SSTELECOM, Inc. dba ITC for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)

         TC09-028        In the Matter of the Request of Stockholm-Strandburg Telephone Company dba ITC for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)

         No comments were made on behalf of Interstate Telecommunications Cooperative, Inc., SSTELECOM, Inc. d/b/a/ ITC and Stockholm-Strandburg Telephone Company d/b/a ITC .  Terri LaBrie Baker stated that the above mentioned companies had filed according to our administrative rules and therefore Staff recommends that the Commission provide letters of certification to the FCC and USAC.

         Commissioner Hanson moved to provide 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 TC09-026, TC09-027 and TC09-028.  Motion passed 2-0.

4.      In the Matter of the Filing for Approval of an Interconnection Agreement in Dockets TC09-043 and TC09-080

         TC09-043        In the Matter of the Filing for Approval of an Interconnection Agreement between Qwest Corporation and Digital Telecommunications, Inc. (Staff Attorney: Kara Semmler)

         TC09-080        In the Matter of the Filing for Approval of an Interconnection Agreement between Qwest Corporation and Ionex Communications North, Inc. dba Birch Communications. (Staff Attorney: Kara Semmler)

         Ms. Kara Semmler, Staff Attorney, stated that the companies have active Certificates of Authority, the agreements have been properly filed, have been properly executed and do not appear to contain discriminatory provisions, and no comments were filed. Ms. Semmler recommended approval of the agreements.

         Commissioner Hanson moved to approve the agreements in DocketsTC09-043 and TC09-80. Motion passed 2-0. 

5.      TC09-063        In the Matter of the Filing by Citizens Telecommunications Company of Minnesota, LLC for a Waiver of ARSD 20:10:32:56. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)

            Ms. Karen Cremer stated that Staff recommends granting a one year waiver pursuant to ARSD 20:10:32:56 and approving the request for certification to USAC and FCC.

            Chairman Johnson moved to grant the waiver and approve the request for certification. Motion passed 2-0.

6.         TC09-076     In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and Level 3 Communications, LLC. (Staff Attorney: Kara Semmler)

            Ms. Kara Semmler stated that the amendment was properly filed, has been properly executed and does not appear to contain discriminatory provisions.  No comments were filed, and staff recommends approval of the Amendment. 

            Commissioner Hanson moved to approve the amendment to the agreement in Docket TC09-076.  Motion passed 2-0. 

7.      TC09-078        In the Matter of the Application of Digital Telecommunications, Inc. for a Certificate of Authority to Provide Interexchange Telecommunications Services and Local Exchange Services in South Dakota. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Kara Semmler)
           
         Ms. Terri LaBrie Baker stated that on June 8, 2009, Digital Telecommunications, Inc. (DTI) filed its application for a certificate of authority to provide interexchange telecommunication services and local telecommunication services in Qwest territories in S.D.  Ms. LaBrie Baker further stated that DTI plans to offer resold services in Qwest territories in the state.  DTI has requested a waiver from providing financial statements and has agreed to have restrictions placed on the COA.  Therefore, Staff recommends that the Commission grant the waivers of ARSD 20:10:24:02 (9) and 20:10:32:03 (12) and grant a certificate of authority to DTI subject to the conditions that no prepaid services are offered and no deposits are required or accepted without prior approval by the Commission and that the certificate of authority be subject to rural safeguards.

            Chairman Johnson moved to grant Digital Telecommunications, Inc application for a certificate of authority to provide interexchange telecommunications services and local exchange services subject to the condition that DTI not offer any prepaid services (including prepaid calling cards) and not accept or require any deposits or advance payments without prior approval of the Commission and that the Commission shall authorize DTI to offer its local exchange services in South Dakota, except in those areas servedby a rural telephone company and the Commission waives ARSD 20:10:24:02(9) and ARSD 20:10:32:03(12).  Motion passed 2-0. 

ADDENDUM TO THE
AGENDA OF COMMISSION MEETING

Consumer Complaints

1.        CT09-001      In the Matter of the Complaint filed by Brian Hankel, Hartford, South Dakota, against Sprint Communications Company L.P., Zone Telecom, Inc. and Express Communications, Inc. Regarding Unauthorized Switching of Services. (Staff Analyst: Deb Gregg, Staff Attorney: Kara Semmler)

         Ms. Kara Semmler stated that she spoke with Mr. Hankel and that he is pleased with the resolution of the issues and further stated that Staff recommends granting the motion to dismiss and close the docket. 

         Commissioner Hanson moved to grant the motion to dismiss and close Docket CT09-001.  Motion passed 2-0.

Electric

1.      EL09-008        In the Matter of the Application of Black Hills Power, Inc. for an Order Authorizing it to Issue an Additional $180 Million in First Mortgage Bonds. (Staff Analysts: Tim Binder/Dave Jacobson, Staff Attorney: Karen Cremer)

         Mr. Chris Kilpatrick, representing Black Hills Power (BHP), stated that BHP filed an application for approval to issue an additional $180 million in first mortgage bonds and that the bonds will be issued to provide permanent financing of Wygen III and for additional transmission construction. Mr. Dave Jacobson stated that data responses from Staff questions were entered into the Docket, and Staff recommends approving the issuance of the proposed mortgage bonds.  

         Chairman Johnson moved to approve the issuance of the proposed First Mortgage Bonds.  Motion passed 2-0. 

There being no further business, at the hour of 10:44 AM the South Dakota Public Utilities Commission Meeting adjourned. The next regular Commission meeting is scheduled for August 11, 2009.

 

_/S/Demaris Axthelm___
Demaris Axthelm
Administrative Secretary
November 24, 2009