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PUBLIC UTILITIES COMMISSION MEETING
December 18, 1997; 10:00 A.M.
State Capitol Building, Room 464
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 December 17, 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 Meeting Held On December 2, 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 1474 consumer contacts during 1997. 67 contacts have been received since the December 2, 1997, Commission meeting.

TELECOMMUNICATIONS: 61 contacts involved telecommunications. 23 contacts involved the unauthorized switching of long distance service; 8 billing issues were addressed; 7 contacts involved sex line calls by minors; 5 contacts were classified as "other"; 4 contacts involved double billing; 4 contacts concerned wrong rates; 3 contacts involved "free" psychic services; 2 contacts involved Internet issues; 2 contacts involved poor service; 1 cable cut issue was reported; 1 disconnection was handled; and 1 rude employee was reported.

ELECTRICITY: 4 contacts involving electricity were reported. 3 contacts involved disconnections and 1 contact involved an indebted household issue.

NATURAL GAS: 2 contacts involving natural gas were reported. 1 contact involved a malfunctioning meter and 1 contact was classified as "other."

A total of 1016 complaints have been resolved informally during 1997.

Electricity


1. EL97-018 IN THE MATTER OF THE APPLICATION OF MONTANA-DAKOTA UTILITIES CO., A DIVISION OF MDU RESOURCES GROUP, INC. FOR APPROVAL OF MODIFICATION OF ELECTRIC SERVICE AREA BETWEEN MONTANA-DAKOTA UTILITIES CO. AND CAM WAL ELECTRIC COOPERATIVE, INC. (Staff Engineer: Martin Bettmann. Staff Attorney: Camron Hoseck.)

On October 6, 1997, the Commission received a filing from Montana-Dakota Utilities requesting Commission approval of a change in electric service area. "Cam Wal Electric Cooperative, Inc. and Montana- Dakota have agreed that each has a portion of its assigned service area that could be better served by the other supplier and are willing to exchange such properties to better serve the public interest." Customers involved in this change have also filed written consents.

TODAY, shall the Commission approve the change in electric service area?

2. EL97-023 IN THE MATTER OF THE COMPLAINT FILED BY ANGELIA QUALLS, SIOUX FALLS, SD AGAINST NORTHERN STATES POWER COMPANY REGARDING PREVIOUS BALANCES. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

On December 10, 1997, Angelia Qualls, Sioux Falls, SD filed a complaint with the Commission regarding previous balances. The Complainant alleges that electric balances were assigned to her which are actually the responsibility of Dwayne Brittingham. Dwayne has apparently agreed to rectify the situation. The complainant would like electricity restored while the complaint is being processed.

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 Respondent?

Gas/Electric


1. GE97-003 IN THE MATTER OF THE FILING BY MIDAMERICAN ENERGY COMPANY FOR APPROVAL OF REVISIONS TO ITS ELECTRIC AND GAS TARIFFS. (Staff Analyst: Dave Jacobson. Staff Attorney: Karen Cremer.)

On November 12, 1997, MidAmerican Energy company filed revisions to its electric and gas tariffs. MidAmerican is planning to eliminate its Budget Plus Plan, a budget plan which pays interest on the average daily credit balance in the customer's account. MidAmerican will retain its standard Budget Plan, which does not pay interest. Customers currently on the Budget Plus Plan will be sent a letter and automatically switched to the standard Budget Plan.

TODAY, shall the Commission approve the tariff changes?

Telecommunications


1. TC95-120 IN THE MATTER OF THE PETITION OF DAVID GLADER FOR EXTENDED AREA SERVICE BETWEEN COLTON, SOUTH DAKOTA, AND SIOUX FALLS, SOUTH DAKOTA. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

On November 7, 1995, the Commission received a petition filed by David Glader, Susan Olson, and Jody Bentz for Extended Area Service between Colton, South Dakota, and Sioux Falls, South Dakota. Colton is served by Sioux Valley Telephone Company and Sioux Falls is served by U S WEST Communications, Inc. A Petition to Intervene was timely filed by the South Dakota Independent Telephone Coalition, Inc. (SDITC) on November 27, 1995. A regularly scheduled meeting of December 12, 1995, the Commission granted intervention to SDITC. A regularly scheduled meeting of February 21, 1996, the Commission ordered an expedited procedural schedule in this matter. On March 4, 1996, the Commission issued its order establishing a procedural schedule wherein all briefs were due on or before April 12, 1996. On March 22, 1996, both U S WEST and Sioux Valley Telephone Company submitted comments on the petition. In its comments, Sioux Valley Telephone Company has offered to allow the customers within the Colton exchange to determine, through balloting, whether one-way EAS should be provided. A regularly scheduled Meeting of April 2, 1996, the Commission decided to defer action in this matter until a determination of whether U S WEST should be allowed to increase its switched access rates based on its old cost study. A regularly scheduled meeting of June 12, 1996, the Commission reconsidered this matter in light of U S WEST's filing of a new cost study (TC96-107) which purported to support higher switched access rates. The Commission deferred action in this matter pending the disposition of Docket No. TC96-107. By Order dated January 31, 1997, the Commission disapproved U S WEST's proposed switched access rate increase and closed Docket No. TC96-107. The Commission's decision in TC96-107 was subsequently appealed and remanded and the Commission issued its final decision and order in this matter on December 3, 1997.

TODAY, Staff has an update and how shall the Commission proceed?

2. TC95-122 IN THE MATTER OF THE REQUEST FOR ONE-WAY EXTENDED AREA SERVICE FROM DELL RAPIDS, SOUTH DAKOTA, TO SIOUX FALLS, SOUTH DAKOTA. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

A regularly scheduled meeting of November 2, 1995, the Commission voted to open a docket to address the petition filed for one-way Extended Area Service from Dell Rapids, South Dakota, to Sioux Falls, South Dakota. Dell Rapids is served by Sioux Valley Telephone Company and Sioux Falls is served by U S WEST Communications. A Petition to Intervene was timely filed by the South Dakota Independent Telephone Coalition, Inc. (SDITC) on November 27, 1995. A regularly scheduled meeting of December 12, 1995, the Commission granted intervention to SDITC. A regularly scheduled meeting of February 21, 1996, the Commission ordered an expedited procedural schedule in this matter. On March 4, 1996, the Commission issued its order establishing a procedural schedule wherein all briefs were due on or before April 12, 1996. On March 22, 1996, both U S WEST and Sioux Valley Telephone Company submitted comments on the petition. In its comments, Sioux Valley Telephone Company has offered to allow the customers within the Dell Rapids exchange to determine, through balloting, whether one-way EAS should be provided. A regularly scheduled Meeting of April 2, 1996, the Commission decided to defer action in this matter until a determination of whether U S WEST should be allowed to increase its switched access rates based on its old cost study. A regularly scheduled meeting of June 12, 1996, the Commission reconsidered this matter in light of U S WEST's filing of a new cost study (TC96-107) which purported to support higher switched access rates. The Commission deferred action in this matter pending the disposition of Docket No. TC96-107. By Order dated January 31, 1997, the Commission disapproved U S WEST's proposed switched access rate increase and closed Docket No. TC96-107. The Commission's decision in TC96-107 was subsequently appealed and remanded and the Commission issued its final decision and order in this matter on December 3, 1997.

TODAY, Staff has an update and how shall the Commission proceed?

3. TC97-168 IN THE MATTER OF THE APPLICATION OF ATLAS EQUITY, INC,. D/B/A PERFORMANCE TELECOM FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

On October 27, 1997, Atlas Equity, Inc. d/b/a Performance Telecom filed for a Certificate Of Authority to operate as a telecommunications company within the state of South Dakota. "Applicant seeks statewide authority to provide intra- and interLATA interexchange telecommunications services....Applicant intends to provide interexchange intrastate voice message telephone services." No parties have filed to intervene.

TODAY, shall the Commission grant a Certificate Of Authority to Performance Telecom?

4. TC97-173 IN THE MATTER OF THE APPLICATION OF VISTA COMMUNICATIONS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

On October 31, 1997, Vista Communications, Inc. filed for a Certificate Of Authority to operate as a telecommunications company within the state of 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." No parties have filed to intervene.

TODAY, shall the Commission grant a Certificate Of Authority to Vista Communications, Inc.?

5. TC97-178 IN THE MATTER OF THE COMPLAINT FILED BY BEN HOFER, CARPENTER, SD, AGAINST U S WEST COMMUNICATIONS, INC., REGARDING UPDATING LINES. (Staff Analyst: Steve Wegman. Staff Attorney: Camron Hoseck.)

On October 29, 1997, Ben Hofer, Carpenter, SD filed a complaint against U S WEST Communications, Inc. regarding updating lines. "We live in southern Spink County on the northern end of the Huron area phone line served by U S WEST. We experience frequent phone service outages. These most often happen when there is a weather change. The servicemen tell us that wind drives in snow and dirt in the boxes, or a drop of moisture which shorts out circuits. Mice also have caused outages by being in the boxes. Also, the servicemen tell us the relay equipment is of the oldest style, seldom found in use any more. Our internet connections are slow. The majority (33 of 50 connections) are in the 12,000 to 16,800 bps range. The low capacity of the phone lines may also relate to line noise and weak phone signals we experience. There are no more phone lines available for our use to our farm. Today's agri-business operation is relying increasingly on rapid communication to do business. On one phone line we have: phone, fax and internet, a family residence, a farm/ranch that produces a half million dollars of ag. products annually, and a farm/ranch Bed & Breakfast/farm vacation business (possibility farm)." I ask that the PUC grant the following relief: "PUC should mandate that U S WEST update the lines in our area so that we can operate our ag business, tourism business and personal business in an expedient manner. We need two more lines, which are presently unavailable, to our farm."

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 Respondent?

6. IN THE MATTER OF EXCESSIVE CONSUMER COMPLAINTS AGAINST BASIC LONG DISTANCE FOR QUESTIONABLE MARKETING PRACTICES AND UNAUTHORIZED SWITCHING OF LONG DISTANCE SERVICE. (Consumer Affairs: Leni Healy.)

Utility Analysts, Inc, d/b/a Basic Long Distance, received a Certificate of Authority as a telecommunications provider in South Dakota on September 18, 1996. The Commission has received 20 complaints of unauthorized switching and/or questionable marketing practices concerning this company. Most of the complaints were made within the last 30 days.

TODAY, Staff has an update and how shall the Commission proceed in this matter.

Transportation/Warehouse


1. IN THE MATTER OF INVESTIGATING THE CURRENT RATE STRUCTURE FOR RECEIVING, HANDLING, REDELIVERING AND STORING GRAIN AT STATE LICENSED PUBLIC GRAIN WAREHOUSES. (Division Director: Ed Anderson.)

Pursuant to SDCL 49-43-7, the Commission is required to investigate from time to time the cost of receiving, handling, redelivering and storing grain by public grain warehouses. The Commission last reviewed these costs in 1991 which resulted in no changes to the rates established in 1984. Recent inquiries from warehouse operators regarding the current rate structure indicate some interest in allowing more flexibility to warehouse operators in establishing rates. Additionally, information gathered during the Commission's inspection process indicates the current rate structure may be partially responsible for a growing decline in grain storage and an corresponding increase in the use of voluntary credit sale contracts, which are not covered under either the grain warehouse or grain dealer bond.

Today, shall the Commission open a docket to investigate the current rate structure for receiving, handling, redelivering and storing grain at state licensed public grain warehouses?

Miscellaneous


1. IN THE MATTER OF THE CONTRACT WITH WESTERN REGIONAL BIOMASS ENERGY PROGRAM. (Staff Analyst: Steve Wegman.)

Staff is requesting a contract with Western Regional Biomass Energy Program to provide funds to cover costs of the Future Fair in Rapid City, SD on January 16, 17, and 18, 1998. The proposed amount is $8,000 to go to the Future Fair.

TODAY, shall the Commission approve this contract?

Announcements


1.  December 25, 1997, the Commission Office will be closed in observance of Christmas.
2.  January 1, 1998, the Commission Office will be closed in observance of New Year's Day.
3.  The Staff and Commissioners wish you all a safe and happy holiday season.
4.  The next regularly scheduled Commission meeting will be held Thursday, January 8, 1998, at 10:00 a.m. in Room 464 of the State Capitol Building.
__________________________
Sue Cichos
Business Manager
December 11, 1997