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South Dakota Public Utilities Commission Meeting
August 19, 2014, at 3:00 P.M. CDT
Room 414, Capitol Building, Pierre, South Dakota
Room FADM 145, University Center, 4801 N. Career Ave., Sioux Falls, South Dakota

MINUTES OF THE COMMISSION MEETING

Vice-Chairman Chris Nelson called the meeting to order. Present were: Commission Counsel: John Smith and Rolayne Wiest; Commission Advisor: Greg Rislov; Staff Attorneys: Karen Cremer and Kristen Edwards; Staff Analysts: Brittany Mehlhaff, Eric Paulson, Brian Rounds, Patrick Steffensen David Henry, Darren Kearney, Robin Meyerink, and Joseph Rezac; Consumer Affairs Supervisor: Deb Gregg; and Staff: Katlyn Gustafson.

Also present were:
Don Martinez and Jim Keck, Black Hills Power, Inc.; and Margo Northrup, Riter, Rogers, Wattier & Northrup, LLP, representing City of Faith Municipal Telephone Company, West River Telecommunications Cooperative (Mobridge), and TrioTel Communications Inc.

Also present by DDN in Room FADM 145, University Center, 4801 N. Career Ave., Sioux Falls, South Dakota were:
Chairman: Gary Hanson; Commissioner: Kristie Fiegen; Brett Koenecke, May, Adam, Gerdes & Thompson, representing Otter Tail Power Company; Tom Hillstrom, Northern States Power Company dba Xcel Energy; and Suzan Stewart, MidAmerican Energy Company.

Joining the meeting by telephone were:
Dean Pawlowski, Jason Grenier, and Kim Pederson, Otter Tail Power Company; Jon Thurber and Bob Obeiter, Black Hills Power, Inc.; Diane Votina and John Palmolea, MidAmerican Energy Company; Kathy Ford, Arlene Morgan, and Melissa Marks, Knology of the Plains, LLC and Knology of the Black Hills, LLC; Sharon Warren, Technologies Management Inc., representing Correct Solutions, LLC; Debbie Brown, City of Faith Municipal Telephone Company; Marlene Bennett and Kim Stumpp, Consortia Consulting, representing City of Faith Municipal Telephone Company, Beresford Municipal Telephone Company, and TrioTel Communications Inc.; Todd Hansen, Beresford Municipal Telephone Company; Wendy Harper, Vantage Point Solutions, representing Sancom, Inc. dba Mitchell Telecom and Interstate Telecommunications Cooperative, Inc, f/k/a SSTELECOM; Tracy Bandemer, Interstate Telecommunications Cooperative, Inc.; Lasy Bosch, West River Telecommunications Cooperative (Mobridge); Donna Thiel, Red River Rural Telephone Association; and Mary Lohnes, Midcontinent Communications.

(NOTE: For the purpose of continuity, these minutes are not necessarily in chronological order.)

Administration

1.     Approval of the Minutes of the Commission Meeting Held on August 6, 2014 (Staff: Joy Lashley)

     Commissioner Hanson moved to approve the minutes of the Commission meeting held on August 6, 2014. Motion carried 3-0.

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 52 contacts since the last report was prepared for the August 6, 2014 Commission meeting.

9 of the contacts involved telecommunication services, 18 of the contacts involved electrical services, 2 of the contacts involved natural gas service, 5 contacts involved cell phone service, 12 contacts were related to the Do Not Call Registry, 1 contact was related to the Dakota Access pipeline, 1 contact was related to One Call, and 4 contacts were related to issues not regulated by the PUC.

1,171 of the 1,200 complaints received in 2014 have been resolved.

Electric

1.     EL12-063     In the Matter of the Petition of Otter Tail Power Company for Order Accepting Certification of Permit Issued in Docket EL06-002 to Construct Big Stone Transmission Line and Substations in Grant and Deuel Counties (Staff Analyst: Brian Rounds; Staff Attorneys: Karen Cremer, Kristen Edwards)

Mr. Brett Koenecke, May, Adam, Gerdes & Thompson, representing Otter Tail Power Company (Otter Tail), asked that the Commission grant the motion to approve final alignment.

     Commissioner Fiegen moved to grant the Motion to Approve Final Alignment.  Motion carried 3-0.

2.     EL14-038     In the Matter of the Application of Black Hills Power, Inc. for Approval to Extend Its Energy Efficiency Solutions Plan (Staff Analysts: Darren Kearney, Brian Rounds; Staff Attorney: Kristen Edwards)

A lengthy discussion took place regarding docket EL14-038. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2014, August 19, 2014, recording located at: http://puc.sd.gov/commission/media/2014/puc08192014.mp3.

     Commissioner Hanson moved to approve the EESP costs and financial incentives from September 2011 through April 2014 and approve the proposed 2014-2016 EESP and approve the associated tariff changes.  Motion carried 3-0.

3.     EL14-039     In the Matter of the Filing by Otter Tail Power Company Regarding Its 2013 Report and 2014 Energy Efficiency Plan Update (Staff Analysts: Darren Kearney, Brian Rounds; Staff Attorney: Kristen Edwards)

Ms. Kim Pederson, Otter Tail Power Company (Otter Tail), asked that the Commission approve Otter Tail's 2013 Energy Efficiency Plan Status Report and approve Otter Tail's requested financial incentive allowance of $84,000. Ms. Pederson also asked that the Commission approve Otter Tail's proposal to leave the Energy Efficiency Adjustment Rider unchanged at $0.00103/kWh.  Mr. Darren Kearney, staff analyst, recommended that the Commission approve Otter Tail's requests.

     Commissioner Nelson moved to approve Otter Tail's 2013 Energy Efficiency Plan Status Report and approve Otter Tail's requested financial incentive allowance of $84,000 and approve Otter Tail's proposal to leave the Energy Efficiency Adjustment Rider unchanged at $0.00103/kWh.  Motion carried 3-0.

4.     EL14-062     In the Matter of the Filing by MidAmerican Energy Company for Approval of Revisions to its Tariff Section No. 3 (Staff Analyst: Eric Paulson; Staff Attorney: Karen Cremer)

Ms. Suzan Stewart, MidAmerican Energy Company (MidAmerican), asked that the Commission approve MidAmerican's tariff revisions. Mr. Eric Paulson, staff analyst, recommended that the Commission grant approval to MidAmerican's request with an effective date of August 15, 2014.

     Commissioner Hanson moved to approve MidAmerican's tariff revisions effective August 15, 2014.  Motion carried 3-0.

5.     EL14-072     In the Matter of the Application of MidAmerican Energy Company for Authority to Increase its Electric Rates (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen, Eric Paulson, Joseph Rezac; Staff Attorney: Kristen Edwards)

Ms. Kristen Edwards, staff attorney, recommended that the Commission suspend the imposition of the tariff for 180 days beyond August 4, 2014, and assess a filing fee for actual expenses related to the general rate case not to exceed $250,000. Ms. Edwards also recommended that the Commission assess a filing fee for actual expenses related to the Transmission Cost Recovery clause not to exceed $50,000 and give the Executive Director authority to enter into necessary consulting contracts.

     Commissioner Nelson moved to suspend the imposition of the tariff for 180 days beyond August 4, 2014 and assess a filing fee for actual expenses related to the general rate case not to exceed $250,000 and assess a filing fee for actual expenses related to the Transmission Cost Recovery clause not to exceed $50,000, and give the Executive Director authority to enter into necessary consulting contracts.  Motion carried 3-0.

Natural Gas

1.     NG14-005       In the Matter of the Application of MidAmerican Energy Company for Authority to Increase its Natural Gas Rates (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen, Eric Paulson, Joseph Rezac; Staff Attorney: Kristen Edwards)

Ms. Kristen Edwards, staff attorney, recommended that the Commission suspend the imposition of the tariff for 180 days beyond August 4, 2014, and assess a filing fee for actual expenses not to exceed $250,000. Ms. Edwards also recommended that the Commission give the Executive Director authority to enter into necessary consulting contracts.

     Commissioner Fiegen moved to suspend the imposition of the tariff for 180 days beyond August 4, 2014 and assess a filing fee for actual expenses not to exceed $250,000, and to give the Executive Director authority to enter into necessary consulting contracts.  Motion carried 3-0.

Telecommunications

1.     TC14-017     In the Matter of the Filing by Knology of the Plains, Inc. for Approval of Revisions to its Access Services Tariff No. 1 (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)

Ms. Arlene Morgan, Knology of the Plains, Inc. (Knology), asked that the Commission approve Knology's revisions to its Access Tariff No. 1. Mr. Eric Paulson, staff analyst, recommended that the Commission approve Knology's request with an effective date of July 1, 2014.

     Commissioner Nelson moved to approve Knology of the Plains, Inc.'s revisions to its Access Services Tariff No. 1 effective July 1, 2014.  Motion carried 3-0.

2.     TC14-021     In the Matter of the Filing by Knology of the Black Hills, LLC for Approval of Revisions to its Access Services Tariff No. 1 (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)

Ms. Arlene Morgan, Knology of the Black Hills, LLC (Knology), asked that the Commission grant approval of revisions to Knology's Access Tariff No. 1. Mr. Eric Paulson, staff analyst, recommended that the Commission approve Knology's request effective July 1, 2014

     Commissioner Hanson moved to approve Knology of the Black Hills, LLC's Revisions to its Access Services Tariff No. 1 effective July 1, 2014.  Motion carried 3-0.

3.     TC14-025     In the Matter of the Application of Correct Solutions, LLC for a Certificate of Authority to Provide Interexchange Long Distance Services as an Alternative Operator Service (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)

Ms. Sharon Warren, Technologies Management Inc., representing Correct Solutions, LLC (Correct Solutions), asked that the Commission approve Correct Solution's certificate of authority to provide interexchange long distance services as an alternative operator service. Mr. Eric Paulson, staff analyst, recommended that the Commission grant the certificate of authority to Correct Solutions. Mr. Paulson also recommended that the Commission grant the requested waivers.

     Commissioner Hanson moved to grant Correct Solutions, LLC a Certificate of Authority to Provide Interexchange Long Distance Services as an Alternative Operator Service and grant the requested waivers.  Motion carried 3-0.

4.     In the Matter of Request for Certification Regarding the Use of Federal Universal Service Support in Dockets TC14-031, TC14-034, TC14-036, TC14-038, TC14-045, TC14-046, TC14-049, TC14-058 and TC14-061.

     TC14-031     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: Eric Paulson; Staff Attorney: Kristen Edwards)

Ms. Arlene Morgan, Knology of the Black Hills, LLC, (Knology), asked that the Commission grant approval to Knology's request.  Mr. Eric Paulson, staff analyst, recommended that the Commission grant approval to Knology's request.

     TC14-034     In the Matter of the Request of City of Faith Municipal Telephone Company for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

Ms. Margo Northrup, Riter, Rogers, Wattier & Northrup, LLP, representing City of Faith Municipal Telephone Company (City of Faith), asked that the Commission grant approval to City of Faith's request.  Mr. Joseph Rezac, staff analyst, recommended that the Commission grant approval to City of Faith's request.

     TC14-036     In the Matter of the Request of Beresford Municipal Telephone Company for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Karen Cremer)

Mr. Joseph Rezac, staff analyst, recommended that the Commission grant approval to Beresford Municipal Telephone Company's request.

     TC14-038     In the Matter of the Request of TrioTel Communications Inc. for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

Ms. Margo Northrup, Riter, Rogers, Wattier & Northrup, LLP, representing TrioTel Communications Inc. (TrioTel), asked that the Commission grant approval to TrioTel's request.  Mr. Joseph Rezac, staff analyst, recommended that the Commission grant approval to TrioTel's request.

     TC14-045     In the Matter of the Request of Interstate Telecommunications Cooperative, Inc. for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

Ms. Tracy Bandemer, Interstate Telecommunications Cooperative, Inc. (ITC), asked that the Commission grant approval to ITC's request. Mr. Joseph Rezac, staff analyst, recommended that the Commission grant approval to ITC's request.

     TC14-046     In the Matter of the Request of Interstate Telecommunications Cooperative, Inc. fka SSTELECOM, Inc. for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

Ms. Tracy Bandemer, Interstate Telecommunications Cooperative, Inc. fka SSTELECOM, Inc. (SSTELECOM), asked that the Commission grant approval to SSTELECOM's request.  Mr. Joseph Rezac, staff analyst, recommended that the Commission grant approval to SSTELECOM's request.

     TC14-049     In the Matter of the Request of West River Telecommunications Cooperative (Mobridge) for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

Ms. Margo Northrup, Riter, Rogers, Wattier & Northrup, LLP, representing West River Telecommunications Cooperative (Mobridge) (West River Telecommunications), asked that the Commission grant approval to West River Telecommunication's request.  Mr. Joseph Rezac, staff analyst, recommended that the Commission grant approval to West River Telecommunication's request.

  TC14-058     In the Matter of the Request of Red River Rural Telephone Association dba Red River Communications for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Robin Meyerink; Staff Attorney: Kristen Edwards)

Ms. Donna Thiel, Red River Rural Telephone Association (Red River Rural Telephone), asked that the Commission grant approval to Red River Rural Telephone's request. Ms. Robin Meyerink, staff analyst, recommended that the Commission grant approval to Red River Rural Telephone's request.

     TC14-061     In the Matter of the Request of Midcontinent Communications for Certification Regarding Its Use of Federal Universal Service Support (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)

Ms. Mary Lohnes, Midcontinent Communications (Midcontinent), asked that the Commission grant approval to Midcontinent's request.  Mr. Eric Paulson, staff analyst, recommended that the Commission grant approval to Midcontinent's request.

     In Dockets TC14-031, TC14-034, TC14-036, TC14-038, TC14-045, TC14-046, TC14-049, TC14-058 and TC14-061, Commissioner Fiegen moved to provide a certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the use of Federal Universal Service Support in each of the dockets.  Motion carried 3-0.

5.     TC14-041     In the Matter of the Filing by Sancom, Inc. dba Mitchell Telecom for Approval of Revisions to its Intrastate Switched Access Tariff No. 1 (Staff Analyst: Joseph Rezac; Staff Attorney; Kristen Edwards)

Ms. Wendy Harper, Vantage Point Solutions, representing Sancom, Inc. dba Mitchell Telecom (Sancom), asked that the Commission grant approval of Sancom's revisions to its Intrastate Switched Access Services Tariff No.1. Mr. Joseph Rezac, staff analyst, recommended that the Commission grant approval of Sancom's request with an effective date of July 1, 2014.

     Commissioner Hanson moved to approve the requested tariff revisions effective July 1, 2014.  Motion carried 3-0.

6.     TC14-042     In the Matter of the Filing by Interstate Telecommunications Cooperative, Inc. - SSTELECOM (CLEC Tariff), for Approval of Revisions to its Access Services Tariff No. 1 (Staff Analyst: Joseph Rezac; Staff Attorney; Kristen Edwards)

Ms. Wendy Harper, Vantage Point Solutions, representing Interstate Telecommunications Cooperative, Inc, f/k/a SSTELECOM (SSTELECOM), asked that the Commission grant approval of SSTELECOM's requested tariff revisions.  Mr. Joseph Rezac, staff analyst, recommended that the Commission grant approval to SSTELECOM's request with an effective date of July 1, 2014.

     Commissioner Nelson moved to approve the requested tariff revisions effective July 1, 2014.  Motion carried 3-0.

7.     TC14-067     In the Matter of the Filing by McLeodUSA Telecommunications Services, Inc. dba PAETEC Business Services for Approval of Revisions to its Access Services Tariff No. 3 (Staff Analyst: Joseph Rezac; Staff Attorney; Kristen Edwards)

Mr. Joseph Rezac, staff analyst, recommended that the Commission grant approval of McLeodUSA Telecommunications Services, Inc. dba PAETEC Business's tariff revisions with an effective date of July 31, 2014.

     Commissioner Fiegen moved to approve the requested tariff revisions effective July 31, 2014.  Motion carried 3-0.

8.     TC14-060     In the Matter of the Filing by Teleport Communications America, LLC for Approval of Revisions to its Access Services Tariff (Staff Analyst: Eric Paulson; Staff Attorney: Karen Cremer)

Mr. Eric Paulson, staff analyst, recommended that the Commission grant approval of Teleport Communications America, LLC's tariff revision with an effective date of July 31, 2014.

     Commissioner Nelson moved to approve Teleport Communications America, LLC's Revisions to its Access Services Tariff effective July 31, 2014.  Motion carried 3-0.

There being no further business, at the hour of 4:21 p.m. the South Dakota Public Utilities Commission meeting adjourned.

/S/Joy Lashley
Joy Lashley
Administrative Assistant
PUC Email
August 19, 2014