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South Dakota Public Utilities Commission Meeting
July 26, 2011, at 9:30 A.M. CDT
Room 413, Capitol Building
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Chairman Gary Hanson called the meeting to Order. Present were: Commissioner Chris Nelson; Commission Counsel: John Smith and Rolayne Wiest; Staff Attorneys: Kara Semmler, Karen Cremer, and Ryan Soye; Staff Analysts: Dave Jacobson, Brittany Mehlhaff, Jon Thurber, Bobbi Bourk, Chris Daugaard, and Ross Pedersen; Consumer Affairs Supervisor: Deb Gregg and Staff: Demaris Axthelm and Lennis Axdahl.
Also present were: Rich Coit, South Dakota Telecommunications Association; Margo Northrup and Lindsey Riter Rapp, Riter, Rogers, Wattier and Northrup, representing Midstate Telecom, Inc. and South Dakota Telecommunications Association; Brett Koenecke, May, Adam, Gerdes, and Thompson, representing Verizon Business Services and South Dakota Electric Utility Companies; and Bill Van Camp, Olinger, Lovald, McCahren, & Reimers, PC, representing AT&T.
Joining the meeting by telephone was: Jim Wilcox and Kari Valley, Xcel Energy; Patrick Crocker, Crocker & Crocker, P.C., representing ONLINE Savings; Kathryn Ford, Davenport Evans Hurwitz & Smith LLP, representing RC Communications, Inc.; Robin Thoreson, Midcontinent Communications, Inc.; Steve Hegdal, Citizens Telecommunications Company of Minnesota, LLC; David Semerad, West River Electric Association; Mark Benton, Midstate Telecom, Inc.; James Cremer, Bantz, Gosch, & Cremer, representing James Valley Wireless & Northern Valley Telecommunication, LLC; Jessica Fyhrie; Ron Spangler; Bruce Gerhardson; and Kerry Kasemen, Otter Tail Power Company, Jeffrey Decker, NorthWestern Corporation dba NorthWestern Energy; Jennifer Moore, Melanie Acord, Jim Parker and John Palmolea, MidAmerican Energy Company; Tim Eklund, Consortia Consulting; and Alan Van Bochove, Black Hills Power.
Administration
1. Approval of the Minutes of the Commission Meeting Held on July 12, 2011. (Staff: Lennis Axdahl)Commissioner Nelson moved to approve the minutes of the Commission Meeting held on July 12, 2011 Motion carried 2-0.
Consumer Reports
1. Status Report on Consumer Utility Inquiries and Complaints Received by the Commission. (Consumer Affairs: Deb Gregg)
The Commission received a total of 104 contacts since the last report was prepared for the July 12, 2011 Commission meeting.
32 of the contacts involved telecommunication services, 19 of the contacts involved electrical services, 17 contacts involved natural gas service, 15 contacts involved cell phone service, 12 contacts were related to the Do Not Call Registry, 3 contacts were related to One Call, and 6 contacts were related to issues not regulated by the PUC.
1702 of the 1777 complaints received in 2011 have been resolved.
Electric
1. EL11-017 In the Matter of the Joint Request for an Electric Service Rights Exception between West River Electric Association and Black Hills Power (Staff Analyst: Ross Pedersen, Staff Attorney: Ryan Soye)
Dave Semerad, West River Electric Association, and Allen Van Bochove, Black Hills Power, jointly requested the electric service rights exception. Ryan Soye, staff attorney, explained that approval of the exception would result in substantial cost savings to the customer and the city of Rapid City. There is no request to permanently change the service territory boundaries of the parties. Mr. Soye stated the exception is for electric service to a water tower which will impose minimal electrical usage. As such, Staff recommended approval of the petition for territory exception.
Commissioner Hanson moved to grant the territory exception. Motion carried 2-0.
Jeff Decker, NorthWestern Energy, explained that the filing was made to address extraordinary connection costs for one customer. Dave Jacobson, staff analyst, explained that similar filings had been considered and approved before and that NorthWestern's electric tariff lacks provisions for line extensions. Mr. Jacobson stated in cases like this, the Commission must balance the principle of universal service with the principle of cost causer, or beneficiary pays and noted the comparison of differing line extension policies he placed into the docket. Staff recommended approval.
Commissioner Nelson moved to approve the contract with deviations. Motion carried 2-0.
3. EL11-018 In the Matter of the Filing by MidAmerican Energy Company for Approval of Tariff Revisions (Staff Analyst: Dave Jacobson, Staff Attorney: Ryan Soye)
Melanie Acord, MidAmerican Energy Company, explained that the filing proposes to update MidAmerican Energy's cogeneration rates. Dave Jacobson, staff analyst, stated the filing is consistent with last year's calculation cogeneration rates and recommended approval.
Commissioner Hanson moved to approve the tariff revisions. Motion carried 2-0.
4. EL11-019 In the Matter of the Application of Northern States Power Company dba Xcel Energy for Authority to Increase its Electric Rates (Staff Analysts: Jon Thurber, Bobbi Bourk, Brittany Mehlhaff, Brian Rounds, Staff Attorney: Karen Cremer)
Karen Cremer, staff attorney, requested that the Commission give the Executive Director authority to enter into necessary consulting contracts.
Commissioner Nelson moved to grant the Executive Director authority to enter into necessary consulting contracts. Motion carried 2-0.
5. EL11-020 In the Matter of the Filing by Otter Tail Power Company for Approval of Tariff Revisions (Staff Analyst: Dave Jacobson, Staff Attorney: Ryan Soye)
Jessica Fyhrie, Otter Tail Power Company, explained the filing contained tariff cleanup revisions not included in the recent rate case. Dave Jacobson, staff analyst, stated that the few material wording changes included in the filing were agreed to during the rate case and recommended Commission approval.
Commissioner Nelson moved to approve the tariff revisions. Motion carried 2-0.
Rulemaking
A lengthy discussion took place regarding the Adoption of Rules Regarding Renewable, Recycled, and Conserved Energy which can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2011, July 26, 2011, recording located at:http://puc.sd.gov/Archives/2011/default.aspx.
Commissioner Nelson made a joint motion for both RM09-002 and RM10-0001. He moved that the Commission combine the revisions to ARSD 20:10:22:05 and 20:10:36:02 with the discussed revisions to RM09-002 and RM10-001 and combine all of these proposed rule revisions in one set of rules, with comments on the proposed revisions due September 1, 2011. Motion carried 2-0.
2. RM10-001 In the Matter of the Request to Amend Rules Regarding ARSD Chapter 20:10:17 Gas and Electric Customer Billing. (Staff Analyst: Dave Jacobson, Staff Attorney: Kara Semmler, Commission Attorney: Rolayne Ailts Wiest)
A lengthy discussion took place regarding the Request to Amend Rules Regarding ARSD Chapter 20:10:17 Gas and Electric Customer Billing which can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2011, July 26, 2011, recording located at:http://puc.sd.gov/Archives/2011/default.aspx
Commissioner Nelson made a joint motion for both RM09-002 and RM10-0001. He moved that the Commission combine the revisions to ARSD 20:10:22:05 and 20:10:36:02 with the discussed revisions to RM09-002 and RM10-001 and combine all of these proposed rule revisions in one set of rules, with comments on the proposed revisions due September 1, 2011. Motion carried 2-0.
Telecommunications
1. TC07-117 In the Matter of the Petition of Midcontinent Communications for Approval of its Switched Access Rates (Staff Attorney: Karen Cremer)
Kathryn Ford, Davenport Evans Hurwitz & Smith LLP, representing Midcontinent Communications, explained that this docket could be closed because Midcontinent's rates already reflect those of Qwest and are in compliance of the Commission's new rules. Karen Cremer, staff attorney, recommended this docket be closed.
Commissioner Nelson moved to dismiss and close this docket. Motion carried 2-0.
2. TC09-014 In the Matter of the Filing by SSTELECOM, Inc. for an Extension of an Exemption from Developing Company Specific Cost-Based Switched Access Rates (Staff Attorney: Karen Cremer)
Karen Cremer, staff attorney, stated SSTELECOM, Inc. applied for an extension of the exemption in this docket. However, since then, SSTELECOM had filed for and was approved in TC11-073 a revised tariff and recommended TC09-014 be dismissed and closed.
Commissioner Hanson moved to dismiss and close this docket. Motion carried 2-0.
3. TC09-022 In the Matter of the Filing by RC Communications, Inc. for an Extension of an Exemption from Developing Company Specific Cost-Based Switched Access Rates (Staff Attorney: Karen Cremer)
Karen Cremer, staff attorney, stated this is a similar instance as in TC09-014 involving RC Communications, Inc. specifically in this docket, and recommended TC09-022 be dismissed and closed.
Commissioner Nelson moved to dismiss and close this docket. Motion carried 2-0.
4. TC10-096 In the Matter of the Complaint Filed by Midcontinent Communications, Knology of the Plains, Inc., and Knology of the Black Hills, LLC, Against MCI Communications Services, Inc. d/b/a Verizon Business Services for Unpaid Access Charges (Staff Analyst: Bobbi Bourk, Staff Attorney: Kara Semmler)
Kathryn Ford, Davenport Evans Hurwitz & Smith LLP, representing Midcontinent Communications, explained that Midcontinent has negotiated a confidential settlement agreement with Verizon and that resolves the issues between the parties therefore Ms. Ford asked that their complaint be dismissed. Kara Semmler, staff attorney, stated that staff supported the request to dismiss the docket.
Commissioner Nelson moved to grant the voluntary dismissal and close this docket. Motion carried 2-0.
Patrick Crocker representing the applicant explained he needed more time to address the Commission's concerns in this filing and requested a 30 day deferral. Commissioner Hanson moved to grant the deferral for 30 days or until the Commission meeting closest to that date.
TC11-016 was deferred 30 days or until the Commission meeting closest to that date. Date to be determined.
6. TC11-049 In the Matter of the Request of Citizens Telecommunications Company of Minnesota, LLC for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Dave Jacobson, Staff Attorney: Kara Semmler)
Steve Hegdal, Citizens Telecommunications Company of Minnesota, LLC, requested a waiver of the Commission's ETC filing requirements on the grounds that it is burdensome to extrapolate the specific costs on projects specific to South Dakota customers. Dave Jacobson, staff analyst, explained that the situation is the same as last year and Staff recommends the Commission grant the waiver.
Commissioner Hanson moved to grant the waiver and certify Citizens Telecommunications Company of Minnesota. Motion carried 2-0.
7. TC11-071 In the Matter of the Application of New Cingular Wireless PCS, LLC, a subsidiary of AT&T Mobility LLC, for Designation as an Eligible Telecommunications Carrier in Rural Study Areas (Staff Analyst: Chris Daugaard, Staff Attorney: Kara Semmler)
A lengthy discussion took place regarding the Application of New Cingular Wireless PCS, LLC, a subsidiary of AT&T Mobility LLC, for Designation as an Eligible Telecommunications Carrier in Rural Study Areas which can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2011, July 26, 2011, recording located at: http://puc.sd.gov/Archives/2011/default.aspx
Commissioner Hanson moved to grant intervention to James Valley Wireless LLC and SDTA, and moved to deny intervention to Native Yes We Can Foundation. Motion carried 2-0.
8. TC11-072 In the Matter of the Application of New Cingular Wireless PCS, LLC, a subsidiary of AT&T Mobility LLC, for Designation as an Eligible Telecommunications Carrier in Non-Rural Study Areas (Staff Analyst: Chris Daugaard, Staff Attorney: Kara Semmler)
A lengthy discussion took place regarding the Application of New Cingular Wireless PCS, LLC, a subsidiary of AT&T Mobility LLC, for Designation as an Eligible Telecommunications Carrier in Non-Rural Study Areas which can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2011, July 26, 2011, recording located at: http://puc.sd.gov/Archives/2011/default.aspx
Commissioner Hanson moved to grant intervention to James Valley Wireless, LLC and moved to deny intervention to Native Yes We Can Foundation. Motion carried 2-0.
Karen Cremer, staff attorney, explained that pursuant to SDCL 49-31-12.6, the Commission may require a deposit of up to $100,000 to defray the Commission's expenses related to this matter. Ms. Cremer stated staff recommends assessing a filing fee up to $100,000, with an initial deposit of $1,000.
Commissioner Nelson moved to assess a filing fee not to exceed $100,000, with an initial deposit of $1,000. Motion carried 2-0.
Jim Cremer, representing Northern Valley Communication, LLC, explained this is an amendment to its existing tariff to comply with RM05-002 and asked for Commission approval of this revised tariff. Kara Semmler, staff attorney, stated that this filing was made pursuant to the rules and recommended Commission approval.
Commissioner Hanson moved to approve the revised tariff. Motion carried 2-0.
11. TC11-077 In the Matter of the Establishment of Switched Access Revenue Requirement for Fort Randall Telephone Company (Staff Analyst: Chris Daugaard, Staff Attorney: Karen Cremer)
Karen Cremer, staff attorney, explained that pursuant to SDCL 49-31-12.6, the Commission may require a deposit of up to $100,000 to defray the Commission's expenses related to this matter. Ms. Cremer stated staff recommends assessing a filing fee up to $100,000, with an initial deposit of $1,000.
Commissioner Nelson moved to assess a filing fee not to exceed $100,000, with an initial deposit of $1,000. Motion carried 2-0.
There being no further business, at the hour of 10:48 a.m., the South Dakota Public Utilities Commission meeting adjourned. The next Commission meeting is scheduled for August 9, 2011.
/S/ Lennis Axdahl
Lennis Axdahl
Administrative Secretary
July 26, 2011
