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PUBLIC UTILITIES COMMISSION MEETING

June 24, 1997; 9:00 A.M.
State Capitol Building, Room 412
Pierre, South Dakota

NOTE: If you wish to join this meeting by conference call, please contact the Commission at 605-773-3201 by 5:00 p.m. on June 23, 1997.

NOTE: Notice is further given to persons with disabilities that this Commission meeting is being held in a physically accessible place. If you have special needs, please notify the Commission and we will make all necessary arrangements.

AGENDA OF THE COMMISSION MEETING

Administration

1. Approval Of The Minutes Of The Commission Meetings Held On June 3 and June 10, 1997. (Staff: Shirleen Fugitt.)

Consumer Affairs

1. Status Report On Consumer Utility Inquiries And Complaints Recently Received By The Commission. (Consumer Representative: Leni Healy.)

The Commission has received 670 consumer contacts during 1997. 61 contacts have been received since the June 3, 1997, Commission meeting.

TELECOMMUNICATIONS: 48 of the contacts involved telecommunication issues. 15 contacts involved billing issues; 10 contacts concerned the unauthorized switching of long distance service; 6 contacts did not get phone service when promised; 5 contacts concerned repair of service; 4 contacts were classified as "other"; 3 contacts concerned nuisance calls; and the remaining contacts concerned accounting errors, disconnection, wrong rate, rude employee, and request for special services

ELECTRICITY: 7 complaints involving electricity were reported. 5 contacts involved disconnections; 1 billing issue and 1 pole placement issue were reported.

NATURAL GAS: 6 complaints involving natural gas were reported. 3 billing issues and 3 disconnections were reported.

A total of 460 complaints have been resolved informally during 1997.

Natural Gas

1. NG97-008 IN THE MATTER OF THE COMPLAINT FILED BY GOLDIE BURNHAM, FORT PIERRE, SD, AGAINST MONTANA-DAKOTA UTILITIES REGARDING A GAS LEAK. (Staff: Martin Bettmann, Leni Healy, Bob Knadle. Legal Intern: Tricia Zimmer)

On May 29, 1997 the Commission received a complaint from Goldie Burnham of Fort Pierre, SD against Montana-Dakota Utilities (Respondent) regarding a gas leak. The complaint states: "There was a gas leak at the home which we were renting. It was admitted by MDU that the pipes were not correctly fit together and then my husband was told not to repeat this. The smell of gas had been reported on separate occasions by more than one resident living in our neighborhood, but all were told it was because too much odor had been added to the gas. MDU was negligent to not only our safety and well-being, but also to the entire neighborhood. I paid what I felt was my portion of the $1,049.09 bill but have not paid the rest because I feel that as a renter I am not responsible if someone put the pipe together incorrectly prior to my renting the home. The issues are: (1) the bill, and (2) the safety and well-being of the clients of MDU." On June 9, 1997, Goldie Burnham indicated that the monetary portion of the matter was resolved. However, the safety issue is still a "grave concern."

TODAY, does the Commission find probable cause of an unlawful or unreasonable act, rate, practice or omission to go forward with this complaint and serve it upon the Respondent?

Electricity

1. EL96-024 IN THE MATTER OF THE FILING BY NORTHERN STATES POWER COMPANY FOR APPROVAL OF A RATE REDUCTION/FREEZE AND ADOPTION OF ACCRUAL ACCOUNTING FOR POST-RETIREMENT BENEFITS OTHER THAN PENSIONS. (Staff Analyst: Greg Rislov. Staff Attorney: Camron Hoseck.)

On September 30, 1996, the Commission received a filing from Northern States Power Company (NSP) for approval of an overall rate reduction/freeze and adoption of accrual accounting for post- retirement benefits other than pensions. On June 6, 1997, the commission received a request for withdrawal from NSP. The petition reflects the decision of NSP and Wisconsin Energy Corporation to terminate their Merger Agreement. The withdrawal would render all matters considered in this docket moot.

TODAY, shall the Commission close this docket?

2. EL97-003 IN THE MATTER OF THE FILING BY SIOUX VALLEY-SOUTHWESTERN ELECTRIC COOPERATIVE, INC. FOR APPROVAL OF AN AGREEMENT FOR SALE OF PROPERTY AND TRANSFER OF SERVICE TERRITORY BETWEEN H-D ELECTRIC COOPERATIVE, INC. AND SIOUX VALLEY-SOUTHWESTERN ELECTRIC COOPERATIVE, INC. (Staff Engineer: Martin Bettmann. Staff Attorney: Karen Cremer)

On February 20, 1997, the Commission received an agreement for sale of property and transfer of service territory between H-D Electric Cooperative and Sioux Valley-Southwestern Electric Cooperative. This agreement between the two parties seeks a transfer of service territory. Sioux Valley-Southwestern identified four miles of single phase line that were in need of major pole replacement and maintenance. H-D has a three phase feeder and other lines in the area and could provide service to the customers with less immediate capital investment. Representatives of both Cooperatives have concluded that, in this instance, the consumers' interests will be better served with service from H-D and have agreed to the transfer of service.

TODAY, shall the Commission approve the transfer of service territory?

3. EL97-010 IN THE MATTER OF THE FILING BY OTTER TAIL POWER COMPANY AND WHETSTONE VALLEY ELECTRIC COOPERATIVE FOR APPROVAL OF EXCHANGE OF RIGHTS AND PROPERTY. (Staff Engineer: Martin Bettmann. Legal Intern: Tricia Zimmer.)

On May 16, 1997, the Commission received the joint petition of Otter Tail Power Company (Otter Tail) and Whetstone Valley Electric Cooperative (Whetstone) for the exchange of rights and property pursuant to SDCL 49-34A-55. The petition states that Otter Tail will convey its electric distribution properties, service, and other rights, property, and assets in the City of Troy, South Dakota in exchange for Whetstone's rights to serve a cable communications head-end building located in Whetstone's current service territory. The head-end building houses cable television equipment and is owned by an Otter Tail affiliate, Otter Tail Communication, SD, Inc.

TODAY, shall the Commission approve the agreement to exchange electric distribution properties, service rights and other rights, property and assets?

4. EL97-012 IN THE MATTER OF THE FILING BY NORTHWESTERN PUBLIC SERVICE COMPANY AND DAKOTA ENERGY COOPERATIVE, INC. FOR APPROVAL OF ASSIGNMENT OF ELECTRIC SERVICE. (Staff Engineer: Martin Bettmann. Legal Intern: Tricia Zimmer.)

On June 11, 1997, the Commission received an agreement from Northwestern Public Service Company (NWPS) and Dakota Energy Cooperative, Inc. (Dakota) for assignment of electric service territory in the Holabird vicinity. Mr. Justin Pietz will be occupying his new residence at the site of an abandoned farm. This site is in NWPS's assigned service territory, but Dakota's electric line is located near this site.

TODAY, shall the Commission approve the agreement to exchange electric distribution properties, service rights and other rights, property and assets?

Telecommunications

1. TC97-012 IN THE MATTER OF THE APPLICATION OF AMERICAN LONG LINES, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

On February 6, 1997, American Long Lines, Inc. filed for a certificate of authority to operate as a telecommunications company within the state of South Dakota. The Applicant proposes to offer outbound telecommunications services to residential and business customers, utilizing switched and dedicated access. The applicant will also offer travel card and inbound Toll-Free services.

TODAY, shall the Commission grant American Long Lines, Inc. a certificate of authority?

2. TC97-022 IN THE MATTER OF THE APPLICATION OF MCIMETRO ACCESS TRANSMISSION SERVICES, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

On March 7, 1997, MCImetro Access Transmission Services, Inc. filed for a certificate of authority to operate as a telecommunications company within the state of South Dakota. The Applicant "will provide a full-range of telecommunications services, including, but not limited to, resale, various intrastate private line services and switched services, local exchange and IntraLATA toll services. Initially, MCImetro plans to provide services by reselling local telecommunications exchange services offered by the incumbent local exchange carrier. MCImetro plans to interconnec network with U S WEST and other local exchange carriers in order to bring the widest range of services to consumers in South Dakota. SDITC was granted intervention on April 10, 1997. On May 29, 1997 SDITC, requested withdrawal of their intervention.

TODAY, shall the Commission grant SDITC's request for withdrawal of intervention? And, shall the Commission grant MCImetro Access Transmission Services, Inc. a certificate of authority?

3. TC97-034 IN THE MATTER OF THE APPLICATION OF LONG DISTANCE DIRECT HOLDINGS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

On April 7, 1997, Long Distance Direct Holdings, Inc. (LDDH) filed for a certificate of authority to provide telecommunications services in South Dakota. "LDDH intends to subscribe to and resell all forms of telephone service including local dial tone services, Message Telephone Service, Wide Area Telephone Service, WATS-like services, Foreign Exchange Service, private lines, tie lines, access service, cellular service, local switched service and other services and facilities of communications common carriers and other entities. LDDH intends to provide service to both residential and business class customers. LDDH has already obtained permission from the Commission to provide interexchange service. LDDH's proposed tariff is attached to the application.

TODAY, shall the Commission grant Long Distance Direct Holdings, Inc. an amended certificate of authority?

4. TC97-037 IN THE MATTER OF THE APPLICATION OF AMERICA'S TELE-NETWORK CORP. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

On April 11, 1997, America's Tele-Network Corp. (Applicant) filed for a certificate of authority to provide telecommunications services in South Dakota. "Intrastate interLATA and, where permitted, intraLATA telecommunication services will ... be offered to the public on a resale basis. The Company provides service to commercial enterprises and residential customers. This application does not seek authority at this time to provide any form of operator services nor any service to pay phones."

TODAY, shall the Commission grant a certificate of authority to America's Tele-Network Corp.?

5. TC97-041 IN THE MATTER OF THE APPLICATION OF ONE STEP BILLING, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

On April 15 1997, One Step Billing, Inc. (Applicant) filed for a certificate of authority to provide telecommunications services in South Dakota. "Applicant seeks authority to offer a full range of 1+ interexchange telecommunications services on a resale basis. Specifically, Applicant seeks authority to provide MTS, out-WATS, in-WATS, and calling card services. Applicant does not intend to provide operator services, 900 or 700 services."

TODAY, shall the Commission grant a certificate of authority to One Step Billing, Inc.?

6. TC97-046 IN THE MATTER OF THE APPLICATION OF F.D.S.D. RAPID CITY, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

On April 29, 1997, F.D.S.D. Rapid City, Inc. (Applicant) filed for a certificate of authority to provide telecommunications services in South Dakota. "The applicant will negotiate with incumbent local exchange service providers in order to resell local exchange service. When this has been completed a detailed statement will be provided to the public utilities commission."

TODAY, shall the Commission grant a certificate of authority to F.D.S.D. Rapid City, Inc.?

7. TC97-054 IN THE MATTER OF THE FILING BY THE LOCAL EXCHANGE CARRIERS ASSOCIATION FOR SWITCHED ACCESS TARIFF REVISIONS. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

On May 16, 1997 the Local Exchange Carriers Association (LECA) filed switched access rate changes in compliance with the Federal Communications Commission orders on pay phone reclassification. The deadline to intervene was June 13, 1997. On June 13, 1997, AT&T filed a petition to intervene.

TODAY, shall the Commission grant the intervention of AT&T?

8. TC97-057 IN THE MATTER OF THE APPLICATION OF INMARK, INC. D/B/A PREFERRED BILLING FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Legal Intern: Tricia Zimmer.)

On May 27, 1997, Inmark, Inc. d/b/a Preferred Billing (Applicant) filed for a certificate of authority to provide telecommunications services in South Dakota. The Applicant requests authority to provide intrastate inbound and outbound long distance telecommunications service. No parties filed to intervene prior to the June 13, 1997 deadline.

TODAY, shall the Commission grant a certificate of authority to Inmark, Inc.?

9. TC97-066 IN THE MATTER OF THE FILING BY BROOKINGS TELEPHONE FOR APPROVAL OF ITS REVISED SERVICE TERRITORY AS A RESULT OF ANNEXATION. (Staff Engineer: Martin Bettmann. Legal Intern: Tricia Zimmer.)

On June 4, 1997, Brookings Telephone filed to revise the franchise service territory map to reflect the new service territory as a result of annexation. The annexations include property being claimed by Brookings Telephone and property not being claimed by Brookings Telephone which will be served by Interstate Telecommunications Cooperative, Inc. The deadline to intervene is June 20, 1997.

TODAY, shall the Commission grant any petitions to intervene? Also, shall the Commission approve the revised service territory?

10. IN THE MATTER OF THE 1997 LEGISLATIVE INTENT REGARDING THE STATE'S TELECOMMUNICATIONS INFRASTRUCTURE. (General Counsel: Rolayne Wiest.)

The 1997 Legislature passed statutes 49-31-60 through 49-31-68 which outline the legislative intent of the state's telecommunications infrastructure. These statutes are effective July 1, 1997. According to SDCL 49-31-60, "[i]t is the intent of the Legislature that South Dakota have a telecommunications infrastructure that meets the advanced communication needs of the state's individual citizens and its communities of interest, including our schools, medical facilities, businesses and all levels of government." The statutes further describe specific network requirements and deployment goals.

TODAY, shall the Commission open a docket to investigate the current status of South Dakota's telecommunications infrastructure and the telecommunications companies' plans to comply with the statutes?

Announcements
  1. Friday, July 4, 1997, the Commission office will be closed in observance of Independence Day.
  2. July 19-23, 1997, the Commissioners will be attending the NARUC meeting in San Francisco, CA.
  3. The Consumer Symposium is scheduled for September 30-October 1, 1997.
  4. The next regularly scheduled Commission meeting will be held Tuesday, July 15, 1997, at 1:00 p.m. in Room 412 of the State Capitol Building.

_______________________
Sue Cichos
Business Manager
June 17, 1997

PLEASE NOTE: There is an Addendum to this agenda.