070902

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

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South Dakota Public Utilities Commission Meeting

Tuesday, July 9, 2002; 1:30 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 July 8, 2002.

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 JUNE 13, 2002. (Staff: Mary Giddings.)

Consumer Issues

1. STATUS REPORT ON CONSUMER UTILITY INQUIRIES AND COMPLAINTS RECENTLY RECEIVED BY THE COMMISSION. (Consumer Affairs: Mary Healy.)

The Commission has received 882 consumer contacts during 2002. 118 of the
complaints were received since the June 13, 2002, meeting. So far the Commission has resolved 836 informal consumer complaints.

TELECOMMUNICATIONS: 93 of the contacts involved telecommunications. 36 contacts concerned billing issues; 6 concerned the unauthorized switch in telecommunication services; 2 concerned delayed service or delayed disconnect; 5 contacts involved telemarketers; 4 involved poor service; 10 contacts involved disconnects; 3 involved collect calls and some of the remaining contacts involved increased rates, Life Line/Link Up, phone book listings, cellular service and prepaid phone cards.

ELECTRICITY: 13 of the contacts involved electricity issues. 6 of the contacts concerned disconnect; 2 concerned rates; 1 involved being denied service; 1 concerned deposits and 3 concerned billing.

NATURAL GAS: 6 of the contacts involved natural gas. 2 of the contacts concerned billing; 2 contacts involved disconnects; 1 concerned construction and 1 involved the gas delivery charge.

2. IN THE MATTER OF DISMISSING DOCKETS CT02-013 AND CT02-015.

CT02-013 IN THE MATTER OF THE COMPLAINT FILED BY CHARLENE LUND ON BEHALF OF SDCASAA, PIERRE, SOUTH DAKOTA, AGAINST MCIWORLDCOM AND QWEST CORPORATION REGARDING UNAUTHORIZED BILLING FOR SERVICES. (Staff Analyst: Mary Healy. Staff Attorney: Kelly Frazier.)

Complainant's representative states that the April 2002 phone bill contained an unauthorized charge for a 900 number call. Complainant's representative states that she did not make the call and there is no one else with access to the phone line. Complainant feels that the charge is either a billing error or a scam. Complainant's representative is requesting $1,000.00 to resolve the docket.

CT02-015 IN THE MATTER OF THE COMPLAINT FILED BY DONALD SIDLE, RAPID CITY, SOUTH DAKOTA, AGAINST QWEST CORPORATION REGARDING A BILLING DISPUTE. (Staff Analyst: Mary Healy. Staff Attorney: Karen Cremer.)

Complainant states that in 1995, he received a Caller ID unit from Qwest and returned the unit because he did not want the added feature on his phone service. Since 1995, Qwest has been charging him for Caller ID service. The charge was not noticed until recently when his daughter was reviewing his monthly Qwest bill. Complainant is requesting a full refund of all the money he has paid Qwest for a service he did not use.

TODAY, if the above matters are resolved shall the Commission dismiss the complaints and close the dockets?

Electric

1. EL01-025 IN THE MATTER OF THE APPLICATION OF BASIN ELECTRIC POWER COOPERATIVE FOR A CONSTRUCTION PERMIT FOR 23 MILES OF 230 KV ELECTRIC TRANSMISSION LINE AND ASSOCIATED FACILITIES. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

On October 11, 2001, Basin Electric Power Cooperative submitted an application for a permit to construct transmission facilities as defined at SDCL 49-41B. These facilities consist of an asynchronous tie that would connect the eastern and western transmission grids near Rapid City, South Dakota. The rating of the tie would be in the range of 100 to 300 million volt-amperes, depending on the capabilities of the associated transmission system. The project is known as the Rapid City Tie Project and includes: approximately 23 miles of 230 kilovolt transmission line; a line terminal at the western edge of the project referred to as the South Rapid City Substation; an asynchronous tie converter station 4 miles southeast of the South Rapid City Substation; and a line terminal bay at the existing New Underwood Substation, at the eastern edge of the project. The project is located completely in Pennington County, South Dakota. On November 8, 2001, Black Hills Power, Inc. was granted intervention. A hearing in this matter was held November 28, 2001, in Rapid City. On June 20, 2002, a Stipulation was filed with Commission.

TODAY, shall the Commission approve the proposed Stipulation?

2. EL02-010 IN THE MATTER OF THE FILING BY OTTER TAIL POWER COMPANY FOR APPROVAL OF A CONTRACT WITH DEVIATIONS WITH THE CITY OF WENTWORTH. (Staff Analyst: Michele Farris. Staff Attorney: Kelly Frazier.)

Otter Tail Power Company has filed for approval a Municipal Contract with the City of Wentworth and a Summary List of Contracts with Deviations. The municipal contract for the City of Wentworth was updated because the old contract will expire on July 1, 2002. The new contract does not include any new rates that would be considered a deviation.

TODAY, shall the Commission approve the proposed Contract with Deviations?

3. EL02-012 IN THE MATTER OF THE FILING BY MONTANA-DAKOTA UTILITIES CO., A DIVISION OF MDU RESOURCES GROUP, INC. FOR APPROVAL OF REVISIONS TO ITS OCCASIONAL POWER PURCHASE NON-TIME DIFFERENTIATED RATE 95, SHORT-TERM POWER PURCHASE TIME DIFFERENTIATED RATE 96 AND LONG-TERM POWER PURCHASE TIME DIFFERENTIATED RATE 97. (Staff Analyst: Dave Jacobson. Staff Attorney: Kelly Frazier.)

Application by Montana-Dakota Utilities Co. to update its cogeneration rates in accordance with the Special Terms and Conditions of the tariffs containing these rates. The application states the methodology used in developing the proposed rates is identical to that used in developing the rates currently on file.

TODAY, shall the Commission approve the proposed filing?

4. EL02-013 IN THE MATTER OF THE FILING BY OTTER TAIL POWER COMPANY FOR APPROVAL OF A CONTRACT WITH DEVIATIONS WITH THE CITY OF BRANDT. (Staff Analyst: Dave Jacobson. Staff Attorney: Kelly Frazier.)

Application by Otter Tail Power Company for approval of a contract with deviations to serve the City of Brandt. The existing contract to serve the City expired on July 1, 2002. The new contract does not include any rates that deviate from tariffed rates.

TODAY, shall the Commission approve the proposed Contract with Deviations?

Telecommunications

1. TC02-040 IN THE MATTER OF THE FILING BY IONEX COMMUNICATIONS NORTH, INC. FOR APPROVAL OF ITS INTRASTATE SWITCHED ACCESS TARIFF AND FOR AN EXEMPTION FROM DEVELOPING COMPANY SPECIFIC COST-BASED SWITCHED ACCESS RATES. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

Ionex Communications North, Inc. has filed a request for an exemption from developing Company-specific cost-based switched access rates contained in ARSD 20:10:27:07. The Company indicates that it does not have the available resources to determine company-specific cost-based intrastate switched access rates. Ionex is also requesting a waiver from the process to determine switched access rates under ARSD 20:10:27:12.

TODAY, shall the Commission approve the proposed tariff and/or the requested exemption?

2. TC02-049 IN THE MATTER OF THE APPLICATION OF HOULTON ENTERPRISES, INC. D/B/A GUARANTEED PHONE SERVICE FOR A CERTIFICATE OF AUTHORITY TO PROVIDE LOCAL EXCHANGE SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Kelly Frazier.)

On May 20, 2002, the Commission received an application from Houlton Enterprises, Inc. d/b/a Guaranteed Phone Service (GPS) for a certificate of authority to provide local exchange telecommunications services in South Dakota. GPS intends to provide basic local exchange services with customer calling features in Qwest territory. Most of GPS' subscribers are high credit risk customers who fail to qualify for basic local exchange services from the incumbent local exchange carriers and who do not qualify for Universal Service programs such as Lifeline and Link Up.

TODAY, shall the Commission grant a Certificate of Authority to Houlton Enterprises, Inc.?

3. TC02-050 IN THE MATTER OF THE FILING FOR APPROVAL OF AN AMENDMENT TO AN INTERCONNECTION AGREEMENT BETWEEN QWEST CORPORATION AND NPCR, INC. D/B/A NEXTEL PARTNERS. (Staff Attorney: Kelly Frazier.)

On May 20, 2002, the Commission received for approval a Filing of Internet Service Provider Bound Traffic Amendment to the Type 2 Wireless Interconnection Agreement between NPCR, Inc. d/b/a Nextel Partners (Nextel) and Qwest Corporation (Qwest). According to the parties, the Amendment is made in order to implement the requirements of the FCC Order on Remand and Report and Order in CC Docket No. 99-68 regarding intercarrier compensation for ISP bound traffic. The original Agreement was approved by the Commission on September 14, 2001, in Docket No. TC01-072. Parties had until June 10, 2002, to file comments.

TODAY, shall the Commission approve the proposed amended agreement?

4. TC02-052 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR WEST RIVER COOPERATIVE TELEPHONE COMPANY. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

On June 10, 2002, West River Cooperative Telephone Company, Bison, South Dakota, filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association. On June 28, 2002, S&S Communications filed a Petition to Intervene

.
TODAY, shall the Commission grant intervention to S&S Communications or any others who may file? ALSO, shall the Commission assess a filing fee not to exceed $100,000?

5. TC02-053 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR INTERSTATE TELECOMMUNICATIONS COOPERATIVE, INC. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

Interstate Telecommunications Cooperative, Inc. (Interstate) filed a switched access cost study developing a revenue requirement and minutes of use. Interstate does not currently have its own access tariff but is seeking membership in the Local Exchange Carrier Association. It is Interstate's desire to be part of the LECA tariff. On June 28, 2002, S&S Communications filed a Petition to Intervene.

TODAY, shall the Commission grant intervention to S&S Communications or any others who may file? ALSO, shall the Commission assess a filing fee not to exceed $100,000?

6. TC02-054 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR VIVIAN TELEPHONE COMPANY. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

Vivian Telephone Company, Wall, South Dakota, filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association. On June 28, 2002, S&S Communications filed a Petition to Intervene.

TODAY, shall the Commission grant intervention to S&S Communications or any others who may file? ALSO, shall the Commission assess a filing fee not to exceed $100,000?

7. TC02-055 IN THE MATTER OF THE FILING FOR APPROVAL OF AN AMENDMENT TO AN INTERCONNECTION AGREEMENT BETWEEN QWEST CORPORATION AND BLACK HILLS FIBERCOM, INC. (Staff Attorney: Kelly Frazier.)

On June 10, 2002, the Commission received for approval an Amendment re: DS1 Digital Capable Loops and Provisioning Options to the Wireline Interconnection Agreement between Qwest Corporation (Qwest) and Black Hills FiberCom, Inc. for the State of South Dakota (Black Hills FiberCom). According to the parties, the original Agreement was a negotiated agreement which was approved by the Commission effective January 6, 1999, in Docket TC98-205. The current Amendment is made in order to add to the Agreement the terms, conditions and rates for DS1 Digital Capable Loops and Provisioning Options, as set forth in Attachment 1 and Exhibits A and B, attached to the Amendment. Parties had until July 1, 2002, to file comments.

TODAY, shall the Commission approve the proposed amended agreement?

8. TC02-058 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR SIOUX VALLEY TELEPHONE COMPANY. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

On June 11, 2002, Sioux Valley Telephone Company, Dell Rapids, South Dakota, filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association. On June 28, 2002, S&S Communications filed a Petition to Intervene.

TODAY, shall the Commission grant intervention to S&S Communications or any others who may file? ALSO, shall the Commission assess a filing fee not to exceed $100,000?

9. TC02-063 IN THE MATTER OF THE FILING BY ESSEX COMMUNICATIONS, INC. D/B/A ELEC COMMUNICATIONS FOR APPROVAL OF RELIEF OF CERTIFICATION REQUIREMENT TO POST SURETY BOND. (Staff Analyst: Keith Senger. Staff Attorney: Kelly Frazier.)

In an Order dated January 10, 2001, the Commission granted Essex Communications, Inc. d/b/a eLEC Communications (Essex) authority to provide interexchange and local exchange telecommunications services in South Dakota, subject to a continuous $25,000 surety bond. On June 18, 2002, the Commission received a filing from Essex requesting relief from the Commission's bond requirement.

TODAY, shall the Commission grant the request for relief to Essex?

10. TC02-064 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR Sully Buttes Telephone COOPERATIVE, INC. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

On June 18, 2002, Sully Buttes Telephone Cooperative, Inc., filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association.