073096

Public Utilities Commission
Capitol Building, 1st floor
500 E. Capitol Ave.
Pierre, SD 57501-5070
Phone: (605) 773-3201

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PUBLIC UTILITIES COMMISSION MEETING

Tuesday, July 30, 1996; 10:00 a.m.
State Capitol Building, Room LCR-1
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., Monday, July 29, 1996.

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 Meeting Held On July 9, 1996; And the Ad Hoc Commission Meeting Held On July 16, 1996. (Staff: Shirleen Fugitt.)

Consumer Affairs

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

The Commission has received 719 consumer contacts during 1996. 83 contacts have been recorded since the July 9,1996 Commission meeting.

TELECOMMUNICATIONS: 68 contacts concerning telecommunications issues have been received since the last meeting. 11 contacts involved refund of land development fees; 11 contacts were classified as"other"; 10 contacts concerned billing issues; 9 contacts involved the unauthorized switching of long distance services; 7 contacts could not get service when requested; 6 contacts concerned rates; 4 contacts involved disconnection issues; 2 contacts involved sex line calls; 1 contact concerned poor service; 1 contact concerned a deposit; 1 contact involved leased equipment; 1 contact concerned service improvement; 1 contact concerned service repair; 1 contact concerned telemarketers; and 1 contact concerned transferring service; and 1 contact involved not getting a disconnection.

ELECTRICITY: 7 complaints involving electricity were reported. 5 contacts involved disconnections; 1 contact concerned a deposit; and 1 contact concerned an indebted household.

GAS: 8 complaints involving natural gas were reported. 4 complaints concerned disconnections; 1 contact involved billing issues; 1 contact involved late fees; 1 contacted involved meter removal; and 1 contact was classified as "other."

A total of 594 complaints have been resolved informally during 1996.

Electricity

1. EL96-013 IN THE MATTER OF THE COMPLAINT FILED BY ARNOLD SCHURR, ROSCOE, SOUTH DAKOTA , AGAINST MONTANA-DAKOTA UTILITIES CO. REGARDING DAMAGES TO STREET LIGHT. (Staff Analyst: Steve Wegman. Staff Attorney: Camron Hoseck.)

On June 11, 1996, the Commission received a complaint from Arnold Schurr (Complainant), Roscoe, South Dakota, against Montana-Dakota Utilities Co. (Respondent). The Complaint alleges that in August of 1995, Complainant hooked a cable TV wire with his farm machinery on a detour of State Highway 247. Hooking the cable TV wire resulted in damage to Respondent's street light. Respondent demanded payment for damages to the street light and initiated disconnection procedures against Claimant when Claimant refused to pay. Claimant also received a bill for damages from MidContinental Cable TV. Complainant asked the Commission to ensure that all ariel wires crossing public roads maintain an 18-foot clearance; to order Respondent to refund Claimants payment for damages; and to resolve the bill with MidContinental Cable. Since this complaint was filed, a resolution apparently has been reached with the Respondent-Montana-Dakota Utilities Co.

TODAY, shall the Commission close this docket?

2. EL96-014 IN THE MATTER OF THE APPLICATION OF MONTANA-DAKOTA UTILITIES CO., A DIVISION OF MDU RESOURCES, INC. FOR APPROVAL OF A CHANGE IN SERVICE AREA. (Staff Engineer: Martin Bettmann. Legal Intern: Adam Reeves.)

On June 17, 1996, the Commission received an application by Montana-Dakota Utilities Co. (MDU) for a change in service area. Included in the application is a Service Area Modification Agreement executed by Cam Wal Electric Cooperative (Cam Wal). The application indicates that the city of Herreid, South Dakota desires two new street lights in a recently annexed area and one of the street light locations is in the assigned service area of Cam Wal. However, pursuant to a Street Lighting Agreement, MDU serves all street lights in Herreid. To avoid duplication of facilities, Cam Wal is willing to allow MDU the limited right to serve the one new street light in Cam Wal's otherwise assigned service areas.

TODAY, shall the Commission approve MDU's application for a change in its service area?

3. EL96-018 IN THE MATTER OF THE FILING BY NORTHERN STATES POWER COMPANY FOR APPROVAL OF ITS NEW CUSTOMER INFORMATION BROCHURE. (Consumer Representative: Leni Hook. Staff Attorney: Adam Reeves.)

On July 17, 1996, Northern States Power Company (NSP) filed a new customer information brochure for the Commission's consideration. The new brochure will reflect the new billing format that was approved by the Commission on November 21, 1995.

TODAY, shall the Commission approve NSP's new brochure design?

Natural Gas

1. NG96-011 IN THE MATTER OF THE INVESTIGATION INTO THE MATTER OF ESTABLISHING STANDARDS OF CONDUCT FOR LDC'S, THEIR AGENCY BUSINESS AND AFFILIATED MARKETING ENTITIES. (Staff Analyst: Dave Jacobson. Staff Attorney: Karen Cremer.)

On March 29, 1996, the Public Utilities Commission (Commission) received a petition from PAM Natural Gas (PNG) requesting that the Commission promulgate rules establishing standards of conduct for local distribution companies (LDCs), their agency business and affiliated marketing entities. PNG asserts in its petition that standards of conduct are necessary to ensure the emergence of competitive alternatives to natural gas end-users. PNG further asserted tha proposed rules incorporated the type of safeguards established in FERC Order 497. PNG, in addition to requesting the Commission to promulgate permanent rules, requested that the Commission establish interim rules to be enforced during the rule making period or, alternatively, to "order all LDCs to cease and desist any new Affiliated Marketing or Agency sales and marketing activity to any customer not currently under contract for the period of these proceedings."

A regularly scheduled April 23, 1996, meeting, the Commission reviewed PNG's filing. The Commission found that it had jurisdiction over this matter pursuant to SDCL Chapters 1-26 and 49-34A, specifically 1-26-5, 1-26-6, 1-26-13, and 49-34A-27. Jennifer Erickson, a representative of PNG, presented PNG's position. Rod Leyendecker and Tom Hitchcock, representatives of Northwestern Public Service, Dave Gerdes representing Montana-Dakota Utilities, and Chris Cook of MidAmerican Energy presented the position of their companies. Commission Staff recommended that the Commission not adopt emergency rules and that a rulemaking be initiated.

Upon advice of Commission counsel, the Commission unanimously voted to deny the Petition and to open an investigative docket into the matter of establishing standards of conduct for LDCs, their agency business and affiliated marketing entities. An investigative docket will allow other interested persons or entities to propose rules. The Commission also directed the executive director to establish a procedural schedule in this matter.

TODAY, how does the Commission wish to proceed in this docket?

2. NG96-013 IN THE MATTER OF THE FILING BY MIDAMERICAN ENERGY COMPANY FOR APPROVAL OF A PROPOSAL TO CREDIT SALES CUSTOMERS WITH 70 PERCENT OF THE REVENUES EARNED THROUGH THE CAPACITY RELEASE TRANSACTIONS. (Staff Analyst: Dave Jacobson. Staff Attorney: Camron Hoseck.)

On March 21, 1996, the South Dakota Public Utilities Commission (Commission) issued an Order in Docket NG96-004 which approved the crediting of 50% of the margins earned from sales for resale transactions through the PGA. The Order also authorized MidAmerican Energy Company (MidAmerican) to credit 70% of the margins earned from buy/sell transactions through the PGA. This Order did not address the treatment to be given to revenues earned through capacity release transactions. MidAmerican now requests approval to treat capacity release transactions consistently with buy/sell transactions and with the treatment MidAmerican has received in its primary jurisdiction.

TODAY, shall the Commission grant the request by MidAmerican?

3. NG96-015 IN THE MATTER OF THE FILING BY NORTHWESTERN PUBLIC SERVICE COMPANY FOR TARIFF REVISIONS. (Staff Analysts: Bob Knadle, Greg Rislov, Dave Jacobson. Legal Intern: Adam Reeves.)

On July 2, 1996, the Commission received a filing from Northwestern Public Service Company (NWPS) of revised tariff sheets to be included in the company's Natural Gas Rate Book. According to NWPS, these tariff revisions are proposed in response to market conditions in the competitive natural gas industry. The company has established an effective date of August 1, 1996, for implementation of the proposed tariff revisions. On July 10, 1996, PAM Natural Gas, LLC, (PNG) filed a petition to intervene in this matter. The Commission granted PAM's petition at an ad hoc meeting on July 16, 1996.

TODAY, how shall the Commission proceed?

4. NG96-016 IN THE MATTER OF THE COMPLAINT FILED BY PAM NATURAL GAS AGAINST MIDAMERICAN ENERGY COMPANY REGARDING PGA FACTORS. (Staff Analyst: Dave Jacobson. Staff Attorney: Karen Cremer.)

On July 8, 1996, PAM Natural Gas (PNG) filed a complaint regarding PGA factors against MidAmerican Energy (MidAmerican). The complaint states: "PNG believes MidAmerican has unfairly refunded a portion of its excessive overcollection of gas costs through the PGA Clause during the month of June, 1996. In addition, PNG opposes MidAmerican's plan to refund the balance of its overcollection of gas costs during the November, 1996, to August, 1997, PGA reconciliation year. PNG believes MidAmerican should be required to modify its calculation of the PGA to ensure it tracks more closely with the price of natural gas in the marketplace, to eliminate the high degree of volatility in its rates and to ensure large over and/or under collections do not occur. PNG also believes that MidAmerican should be required to issue refunds directly to the customers who overpaid for gas during the period the overcollection occurred." Also on July 8, 1996, PNG filed a request with the Commission to receive all underlying workpapers of MidAmerican's June PGA filing which were submitted as confidential.

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 MidAmerican? Shall the Commission establish a procedural schedule to consider PNG's request to receive confidential information?

Telecommunications

1. TC96-071 IN THE MATTER OF THE APPLICATION OF ZENEX LONG DISTANCE, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Hendrix. Staff Attorney: Camron Hoseck.)

On April 24, 1996, Zenex Long Distance, Inc. (Zenex) applied for a Certificate of Authority to operate as a telecommunications company within the State of South Dakota. Zenex will provide switched and dedicated inbound and outbound telecommunications services and calling card services.

Today, shall the Commission grant a Certificate of Authority to Zenex?

2. TC96-078 IN THE MATTER OF THE APPLICATION OF INNOVATIVE TELECOM CORPORATION FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Hendrix. Staff Attorney: Karen Cremer.)

On May 6, 1996, Innovative Telecom Corporation (Innovative) applied for a Certificate of Authority to operate as a telecommunications company within the State of South Dakota. Innovative will provide 24- hour intrastate interexchange telecommunications services, MTS, 800 services, and prepaid debit travel card services.

TODAY, shall the Commission grant a Certificate of Authority to Innovative?

3. TC96-084 IN THE MATTER OF THE APPLICATION OF OVERLOOK COMMUNICATIONS INTERNATIONAL CORP. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Dave Jacobson. Legal Intern: Adam Reeves.)

On May 17, 1996, the Commission received an application from Overlook Communications International Corp. (Overlook) for a Certificate of Authority to operate as a telecommunications company within the state of South Dakota. Overlook proposes to offer MTS, incoming 800, travel card service and prepaid calling card service. No interventions have been filed.

TODAY, shall the Commission grant a Certificate of Authority to Overlook?

4. TC96-101 IN THE MATTER OF THE APPLICATION OF EASTERN TELECOMMUNICATIONS INCORPORATED FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Dave Jacobson. Legal Intern: Adam Reeves.)

On June 20, 1996, Eastern Telecommunications, Inc. (ETI) filed an application for a Certificate of Authority to operate as a telecommunications company within South Dakota. ETI proposes to offer direct dial, directory assistance, and Travel Card services to business and residential customers.

TODAY, shall the Commission grant a Certificate of Authority to ETI?

5. TC96-104 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR DAKOTA COOPERATIVE TELECOM, INC. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

On June 21, 1996, Dakota Cooperative Telecommunications, Inc. filed its Intrastate Access Rate cost study. The deadline for intervention was July 12, 1996. On July 11, 1996, U S WEST Communications Inc. (U S WEST) filed a petition to intervene.