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South Dakota Public Utilities Commission Meeting
Tuesday, June 8, 1999; 2:00 P.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 7, 1999. Please keep in mind that a limited number of telephone lines are available. Every effort should be made for parties in the same city to be on the same line when calling in.

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 May 12, 1999. (Staff: Shirleen Fugitt.)

Consumer Issues

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

The Commission has received 1152 consumer contacts during 1999. 250 contacts have been received since the May 12, 1999, Commission meeting.

TELECOMMUNICATIONS: 230 of the contacts involved telecommunications issues. 72 contacts involved fluffing: the unnotified raising of rates; 50 contacts involved the unauthorized switching of long distance service; 30 contacts concerned the unauthorized billing for products/services; 13 contacts involved billing issues; 11 contacts involved continued billing; 9 contacts involved disconnections; 8 contacts concerned held orders; 8 contacts involved poor service; 8 contacts concerned not being released from a carrier; 8 contacts involved fees; 4 contacts involved toll blocks; 2 contacts involved telemarketers; and the remaining issues were 900 numbers, above-ground cable, Caller ID, deposit, and directory listing.


ELECTRICITY: 16 of the contacts involved electricity issues. 12 of the contacts involved disconnections; 2 contacts involved billing errors; 1 contact involved high cost; and 1 contact concerned high usage.


NATURAL GAS: 4 of the contacts involved natural gas issues. 2 of the contacts concerned disconnections; and the remaining contacts involved damage and master metering.

A total of 777 complaints have been informally resolved during 1999.

2. TC98-155 IN THE MATTER OF THE COMPLAINT FILED BY LORETTA SPEAR, HILL CITY, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING UPDATING LINES. (Staff Attorney: Karen Cremer. Consumer Representative: Leni Healy.)

On September 3, 1998, the Commission received a complaint by Loretta Spear against U S WEST Communications regarding updating lines. Complainant raises service issues including static on their lines, service disruptions, delayed repairs, and inability to receive Caller ID subscription. The Complainant requests the following relief: "Insure that credit is given for Caller ID and 3 weeks without telephone service. Also resolution to updating telephone service in the area." A hearing in this matter was held on December 15, 1998.

TODAY, how shall the Commission proceed?

3. TC98-183 IN THE MATTER OF THE COMPLAINT FILED BY SHERYL L. KLEIN, VALENTINE, NEBRASKA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING POOR SERVICE AND REQUEST TO HAVE LINES UPDATED. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

On October 8, 1998, the Commission received a complaint by Sheryl L. Klein against U S WEST Communications, Inc. regarding poor service. The Complainant outlines a series of service outages, repair difficulties, outdated service and staffing issues. The Complainant seeks the following relief: "We want the line fixed completely and permanently, so it functions at a 100% reliable level. We want this done now, before another winter sets in. We have been told several possible problems by U S West repairmen including aging lines and old systems. We do not know what the solution is, but want it found and implemented now. We ask that U S West be required to make whatever investment is necessary to fully remedy the problem. We also want to be reimbursed for a reasonable amount for the loss of phone service and the associated stress and hassles. We request $500.00." A hearing in this matter was held on February 3, 1999, in Mission, South Dakota.

TODAY, how shall the Commission proceed?

4. TC98-184 IN THE MATTER OF THE COMPLAINT FILED BY JOANN C. KLEIN, VALENTINE, NEBRASKA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING POOR SERVICE AND REQUEST TO HAVE LINES UPDATED. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

On October 8, 1998, the Commission received a complaint by JoAnn C. Klein against U S WEST Communications, Inc. regarding poor service. The Complainant outlines a series of service outages, repair difficulties, outdated service, phantom calls, and staffing issues. The Complainant seeks the following relief: "contact U S West and insist that our long continuation of poor service and outages be corrected. Also reimbursement or credit for days when phone lines have been out." Mrs. Klein also requests that her billing for 24 directory assistance calls and long distance calls which were not made by the Kleins be credited from their billing. A hearing in this matter was held on February 3, 1999, in Mission, South Dakota.

TODAY, how shall the Commission proceed?

5. TC98-199 IN THE MATTER OF THE COMPLAINT FILED BY LAWRENCE KLEIN, VALENTINE, NEBRASKA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING POOR SERVICE AND REQUEST TO HAVE LINES UPDATED. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

On November 6, 1998, the Commission received a complaint by Lawrence Klein against U S WEST Communications, Inc. regarding poor service and a request to have lines updated. The complainant explains a history of poor and unreliable telephone service. The complainant outlines the necessity of the telephone and seeks reliable telephone service. A hearing in this matter was held on February 3, 1999, in Mission, South Dakota.

TODAY, how shall the Commission proceed?

6. TC98-200 IN THE MATTER OF THE COMPLAINT FILED BY DON FINN ON BEHALF OF LAKE AREA HOSPITAL, WEBSTER, SOUTH DAKOTA, AGAINST AT&T COMMUNICATIONS OF THE MIDWEST, INC. REGARDING OVERCHARGES. (Consumer Representative: Leni Healy. Staff Attorney: Karen Cremer.)

On November 4, 1998, the Commission received a complaint by Don Finn on behalf of Lake Area Hospital, Webster, South Dakota, against AT&T Communications of the Midwest, Inc. regarding overcharges. The complainant outlines a chronological history of the concerns with AT&T over the past 18 months. "We believe we were overbilled because of a 'technical' glitch and no one from AT&T would take the time to resolve the situation. Instead of assistance, we experienced lots of finger pointing and were being overcharged in the meantime. We have exhausted all of our options trying to find some sort of resolution." The complainant seeks reimbursement for the amount overcharged and compensation for the time and labor involved. On November 25, 1998, the Commission found probable cause in this matter. On May 17, 1999, the Commission received a letter requesting withdrawal of the complaint.

TODAY, shall the Commission allow the withdrawal of the complaint and close the docket?

7. TC98-212 IN THE MATTER OF THE COMPLAINT FILED BY MARGARET FIGERT, MISSION, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING POOR SERVICE AND REQUEST TO HAVE LINES UPDATED. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

On December 11, 1998, the Commission received a complaint from Margaret Figert, Mission, South Dakota, against USWC regarding poor service and request to have lines updated. The complaint notes a history of poor, interrupted, and sporadic service, and an inability to transmit data and use the internet. The complainant is requesting USWC to upgrade their lines throughout southern Todd County, South Dakota, or sell out to Golden West, Wall, South Dakota who has fiber optic cable. A hearing in this matter was held on February 3, 1999, in Mission, South Dakota.

TODAY, how shall the Commission proceed?

8. CT99-001 IN THE MATTER OF THE COMPLAINT FILED BY VINCE WIENK ON BEHALF OF ALL STAR TRAVELERS INN, SPEARFISH, SOUTH DAKOTA, AGAINST AT&T COMMUNICATIONS OF THE MIDWEST, INC. REGARDING ACCESS TO BLOCKED LINES. (Staff Attorney: Camron Hoseck. Consumer Representative: Leni Healy.)

On February 22, 1999, the Commission received a complaint from Vince Wienk on behalf of All Star Travelers Inn, against AT&T Communications of the Midwest. The Complainant claims that a motel guest was able to charge calls to the motel even though the motel had blocks to prohibit such charges. The Complainant seeks the following relief: "This type of phone fraud should not be allowed. If this type of phone misuse cannot be stopped then motel owners need to be notified." The Commission found probable cause in the matter on March 25, 1999. Staff now understands that a resolution in this matter has been reached by the parties.

TODAY, staff has an update. And, if the matter is resolved shall the Commission dismiss the complaint and close the docket?

9. CT99-003 IN THE MATTER OF THE COMPLAINT FILED BY CONSTANCE JOHNSON, SIOUX FALLS, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING DISPUTED BILLING. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

On April 7, 1999, the Commission received a complaint from Constance Johnson, Sioux Falls, South Dakota, against U S WEST regarding a disputed billing. After a series of attempts to informally resolve billing concerns, the Complainant filed a formal complaint to address unresolved issues. As part of the remedy for relief, the Complainant has asked forgiveness of an unpaid billing in the amount of $539.

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?

Gas/Electric

1. GE99-003 IN THE MATTER OF THE FILING BY MIDAMERICAN ENERGY COMPANY FOR APPROVAL OF REVISED RESIDENTIAL AND COMMERCIAL INFORMATIONAL PAMPHLETS. (Staff Analyst: Keith Senger. Legal Intern: Jeff Koerselman.)

On May 21, 1999, MidAmerican Energy Company filed for approval of revised residential and commercial informational pamphlets.

TODAY, shall the Commission approve the proposed informational pamphlets?

Electric

1. EL99-004 IN THE MATTER OF THE FILING BY MIDAMERICAN ENERGY COMPANY FOR APPROVAL OF A NEW STREET LIGHTING SERVICE. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

On April 21, 1999, MidAmerican Energy Company filed for approval of a new street lighting service. MidAmerican Energy Company is filing to revise the South Dakota Electric Tariff No. 1 to include a price code for a 100-watt High Pressure Sodium Victorian style fiberglass pole street light.

TODAY, shall the Commission approve the proposed tariff change?

2. EL99-006 IN THE MATTER OF THE APPLICATION OF BLACK HILLS CORPORATION FOR AN ORDER AUTHORIZING THE ISSUANCE OF STOCK OPTIONS UNDER BLACK HILLS CORPORATION'S 1999 STOCK OPTION PLAN. (Staff Analyst: Bob Knadle. Staff Attorney: Karen Cremer.)

On May 5, 1999, the Commission received an application from Black Hills Corporation, which operates its electric utility under the assumed name of Black Hills Power and Light Company, requesting the approval of Black Hills Corporation's 1999 Stock Option Plan providing for the granting of options to acquire up to 700,000 shares of the Company's authorized but unissued Common Stock.

TODAY, shall the Commission approve the issuance of stock options under Black Hills Corporation's 1999 stock option plan.?

Natural Gas

1. NG97-020 IN THE MATTER OF THE APPLICATION OF MANTANA-DAKOTA UTILITIES CO., A DIVISION OF MDU RESOURCES GROUP, INC. FOR APPROVAL OF A PLAN TO DEVIATE FROM PURCHASED GAS COST ADJUSTMENT RATE 88. (Staff Analyst: Dave Jacobson. Staff Attorney: Camron Hoseck.)

On December 1, 1997, Montana-Dakota Utilities filed an application to deviate from the Purchased Gas Cost Adjustment (PGA) Rate 88 in order to disburse a refund expected to be received from Williston Basin Interstate Pipeline Company (Williston Basin) prior to December 31, 1997. The refund relates to Williston Basin's Federal Energy Regulatory Commission (FERC) Docket No. RP92-163. The refund period is June 1, 1992 through December 31, 1995 including interest accrued through the day of the refund. The refund is not applicable to customers served from the East River natural gas system. The actual amount of the refund is not known at this time, however, it is expected to be substantial. Montana-Dakota is proposing a cash refund plan similar to the refund plan approved by the Commission for a June 1996 refund. A December 18, 1997, meeting, the Commission approved the deviation. The docket has been left open at the request of staff.

TODAY, staff has an update. And, shall the Commission close the docket?

Telecommunications

1. TC99-003 IN THE MATTER OF THE FILING BY U S WEST COMMUNICATIONS, INC. FOR APPROVAL OF RESALE AGREEMENT BETWEEN U S WEST COMMUNICATIONS, INC. AND TOPP COMM, INC. (Staff Attorney: Camron Hoseck.)

On January 6, 1999, U S WEST Communications, Inc. filed for approval of resale agreement between U S WEST and Topp Comm, Inc. Parties had until January 29, 1999, to comment.

TODAY, shall the Commission approve the resale agreement?

2. TC99-010 IN THE MATTER OF THE APPLICATION OF WILLIAMS COMMUNICATION, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Camron Hoseck.)

On January 26, 1999, Williams Communication, Inc. filed for a certificate of authority to provide telecommunications services in South Dakota. Williams Communication, Inc. intends to provide interexchange switched voice services primarily to the wholesale market, which consists of other telecommunications carriers. Williams also plans to offer interexchange private line services.

TODAY, shall the Commission grant a Certificate of Authority to Williams Communication, Inc.?

3. TC99-011 IN THE MATTER OF THE APPLICATION OF CENTURYTEL LONG DISTANCE, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

On January 29, 1999, the Commission received an application from CenturyTel Long Distance, Inc. for a Certificate of Authority to provide telecommunications services in South Dakota. CenturyTel is a switchless reseller of interexchange telecommunications services. CenturyTel will offer outbound presubscribed and casual calling service, toll free inbound service and travel card service. A April 8, 1999, meeting the Commission granted the certificate of authority subject to CenturyTel furnishing the Commission with a surety bond in the amount of $25,000. On May 10, 1999, CenturyTel filed a petition for recondsideration with the Commission.

TODAY, shall the Commission reconsider the decision in this matter? And, what is the Commission's decision?

4. TC99-030 IN THE MATTER OF THE FCC ORDER ESTABLISHING NEW DEADLINES FOR IMPLEMENTATION OF INTRALATA DIALING PARITY BY LOCAL EXCHANGE CARRIERS. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

On March 23, 1999, the Federal Communications Commission issued an order establishing new deadlines for implementation of intraLATA dialing parity by local exchange carriers: In the Matters of Implementation of the Local Competition Provisions of the Telecommunications Act of 1996; Petition of Southwestern Bell Telephone Company, Pacific Bell, and Nevada Bell for Expedited Declaratory Ruling on Interstate IntraLATA Toll Dialing Parity or, in the Alternative, Various Other Relief, CC Docket No. 96-98, FCC 99-54 (released March 23, 1999). The order states that "[n]o later than April 22, 1999, all LECs must file intraLATA toll dialing parity plans with the state regulatory commission for each state in which the LEC provides telephone exchange service if a plan has not yet been filed with such state commission. Once a state commission has approved a plan, the LEC must implemen plan no later than 30 days after the date on which the plan is approved." A ad hoc meeting on March 30, 1999, the Commission voted to open a docket and establish a procedural schedule in this matter. Local Exchange Carriers were requested to file an IntraLATA Toll Dialing Parity plan by April 22, 1999. On May 26, 1999, AT&T filed for Commission approval of its carrier notification letter in advance of final Commission action on the proposed plans.

TODAY, shall the Commission grant the approval of the carrier notification letters in advance of final Commission action to AT&T? And, how shall the Commission proceed in this docket?

5. TC99-035 IN THE MATTER OF THE APPLICATION OF BLACKSTONE COMMUNICATIONS COMPANY FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

On April 7, 1999, Blackstone Communications Company filed for a certificate of authority to operate as a telecommunications company in South Dakota. Blackstone Communications Company is a reseller which intends to offer 1+ and 101XXXX direct outbound dialing, 800/888 Toll-Free inbound dialing, travel card and prepaid calling card service.

TODAY, shall the Commission grant a Certificate of Authority to Blackstone Communications Company?

6. TC99-041 IN THE MATTER OF THE FILING BY DICKEY RURAL TELEPHONE COOPERATIVE AND ITS WHOLLY OWNED SUBSIDIARY, DICKEY RURAL COMMUNICATIONS, INC. FOR APPROVAL OF PETITION FOR SUSPENSION AND MODIFICATION OF DIALING PARITY. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

On April 19, 1999, Dickey Rural Telephone Cooperative and Dickey Rural Communications, Inc. filed for approval of petition for suspension and modification of dialing parity. Dickey Rural Telephone Cooperative and Dickey Rural Communications, Inc. each have fewer than 2% of the Nation's subscriber lines installed in the aggregate. Pursuant to 47 U.S.C. 251(f)(2), Dickey Rural Telephone Cooperative and Dickey Rural Communications, Inc. petitions the Commission for a suspension and modification of the requirement for implementation of intraLATA dialing parity in its service areas until June 30, 2000. The grounds for the petition are that suspension and modification are: a) necessary to avoid imposing requirements that are unduly economically burdensome and infeasible, and b) consistent with the public interest, convenience and necessity. The compressed schedule mandated by CC Docket No. 96-98, Order adopted March 19 and released March 23, 1999, FCC 99-54 is burdensome and infeasible for small LECs to develop and administer plans for timely notification of their subscribers and interexchange carriers regarding subscribers' selection of intraLATA toll providers, and for small LECs to develop fully compensatory local exchange access rates to replace the current arrangement.

TODAY, how shall the Commission proceed?

7. TC99-042 IN THE MATTER OF THE FILING BY CONSOLIDATED TELEPHONE COOPERATIVE AND ITS WHOLLY OWNED SUBSIDIARY, CONSOLIDATED TELCOM, INC. FORMERLY KNOWN AS CTC COMMUNICATIONS, INC. FOR APPROVAL OF PETITION FOR SUSPENSION AND MODIFICATION OF DIALING PARITY. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

On April 20, 1999, Consolidated Telephone Cooperative and its Wholly Owned Subsidiary, Consolidated Telcom, Inc. formerly known as CTC Communications, Inc. filed for approval of petition for suspension and modification of dialing parity. Consolidated Telephone Cooperative and Consolidated Telcom, Inc. formerly known as CTC Communications, Inc. each have fewer than 2% of the Nation's subscriber lines installed in the aggregate. Pursuant to 47 U.S.C. 251(f)(2), Consolidated Telephone Cooperative and Consolidated Telcom, Inc. formerly known as CTC Communications, Inc. petitions the Commission for a suspension and modification of the requirement for implementation of intraLATA dialing parity in its service areas until June 30, 2000. The grounds for the petition are that suspension and modification are: a) necessary to avoid imposing requirements that are unduly economically burdensome and infeasible, and b) consistent with the public interest, convenience and necessity. The compressed schedule mandated by CC Docket No. 96-98, Order adopted March 19 and released March 23, 1999, FCC 99-54 is burdensome and infeasible for small LECs to develop and administer plans for timely notification of their subscribers and interexchange carriers regarding subscribers' selection of intraLATA toll providers, and for small LECs to develop fully compensatory local exchange access rates to replace the current arrangement.