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South Dakota Public Utilities Commission Meeting

Tuesday, May 6, 2003 at 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 May 5, 2003.

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 April 15, 2003. (Staff: Tina Douglas.)

Consumer Issues

1. Status Report on Consumer Utility Inquiries and Complaints Received by the Commission. (Consumer Affairs: Jim Mehlhaff.)

2. In The Matter Of Dismissing Dockets , CE03-002, CT02-045, CT02-047, CT03-001, and CT03- 003

CE03-002 In the Matter of the Complaint filed by Randy Dawson, Howard, South Dakota, against Central Electric Cooperative, Inc. Regarding Customer Service. (Staff Analyst: James Mehlhaff, Staff Attorney: Karen Cremer)

After bearing the expense of replacing a line that was removed by the Respondent, the Complainant received a bill for the installation of a meter and transformer. Complainant seeks to have the burden for the cost of the meter and transformer installation shifted to the Respondent.

CT02-045 In the Matter of the Complaint filed by Nick Magera on behalf of CR of Sioux Falls, Inc., Sioux Falls, South Dakota, against McLeodUSA Telecommunications Services, Inc. Regarding Poor Customer Service. (Staff Analyst: James Mehlhaff, Staff Attorney: Karen Cremer)

CR of Sioux Falls' representative (Complainant) alleges that McLeodUSA Telecommunications Services, Inc. (McLeod) failed to provide Complainant with an acceptable level of customer service for the various problems Complainant was experiencing. Complainant switched its phone service to another provider and McLeod informed Complainant that it owed $2,178.93 in termination fees.

CT02-047 In the Matter of the Complaint filed by Patricia Bue on behalf of Stockholm Refrigeration, Inc., Stockholm, South Dakota, against QuantumLink Communications Regarding Unauthorized Switching of Services. (Staff Analyst: James Mehlhaff, Staff Attorney: Kelly Frazier)

Complainant's representative states that Complainant's 800# was switched to QuantumLink without authorization. Complainant's representative requests $1,000.00 for the unauthorized switch as allowed by South Dakota law.

CT03-001 In the Matter of the Complaint filed by Berdell Kinsley, Springfield, South Dakota, against BroadWing Telecommunications, Inc. Regarding Unauthorized Switching of Services. (Staff Analyst: James Mehlhaff, Staff Attorney: Kelly Frazier)

Complainant states that his service was switched without his authorization. Complainant requests a payment of $800.00 for the unauthorized switch and reimbursement of expenses to attend a hearing.

CT03-003 In the Matter of the Complaint filed by Mark Van Den Hoek on behalf of Hard Drive Central, Mitchell, South Dakota, against Ionex Communications North, Inc. Regarding Quality of Service Issue. (Staff analyst: James Mehlhaff, Staff Attorney: Kelly Frazier)

The Complainant alleges that Ionex failed to provide long distance service from August 16, 2002, through November 1, 2002. The complainant seeks to have the unpaid charges for local service waived as compensation for the hardship caused as a result of the long distance issue. The company has filed a Motion To Dismiss.

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

3. In The Matter Of Dismissing Dockets , CT99-002 and TC98-176

CT99-002 In the Matter of the Complaint filed by Randy Kieffer, Sturgis, South Dakota, against U S WEST Communications Regarding Poor Service. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)

The Complainant claims that he and his neighbors have poor telecommunications service. The Complainant states that "The service we are receiving from U S West is a joke and U S West needs to get serious about providing service." The Complainant seeks the following relief: "PUC should fine them $4000 a day."

TC98-176 In the Matter of the Complaint filed by Randy Kieffer, Sturgis, South Dakota, against U S WEST Communications, Inc., Regarding Service Problems. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)

On September 21, 1998, the Commission received a complaint from Randy Kieffer, Sturgis, SD, against U S WEST regarding service problems. The Complaint states several incidents of ongoing service problems and poor or slow response by U S WEST. The phone outages require the complainant to drive 26 miles to Sturgis to report the outage and to make necessary phone calls. The complainant paid $2,500 last year to have a telephone line installed. The complainant asks that U S WEST reimburse time and travel expenses for past and future phone outages or that U S WEST provide two cellular phones free of cost to be used when the outages occur.

TODAY, if the Complainant no longer wishes to proceed, shall the Commission dismiss the complaints and close the dockets?

Electric

1. EL03-009 In the Matter of the Joint Request for an Electric Service Rights Exception between the City of Plankinton and Central Electric Cooperative, Inc. (Staff Analyst: Michele M. Farris Staff Attorney: Kelly Frazier)

On March 4, 2003, the Public Utilities Commission received a joint request for approval of service territory designations from the City of Plankinton and Central Electric Cooperative. The City of Plankinton has annexed land located on its southeast boundary for the purpose of building a new school with residential development. The land annexed is in the service territory of Central Electric. The parties have reached an agreement whereby Central Electric will serve the new school and the City will serve the balance of the annexed area.

TODAY, shall the Commission approve the proposed Electric Service Rights Exception?

Natural Gas

1. NG02-011 In the Matter of the Application of Montana-Dakota Utilities Co. for Authority to Increase Rates for Natural Gas Service. (Staff Analyst: David Jacobson Staff Attorney: Karen Cremer)

Application by Montana-Dakota Utilities Co. for approval to increase rates for natural gas service in its Black Hills service territory by $2,173,380, or 5.8% based on a 2003 projected test year. The proposed increase for a residential customer would average about $2.50 per month. The proposed rates may potentially affect about 40,800 natural gas customers in the Black Hills area of South Dakota. On April 30, 2003, Montana-Dakota Utilities Co. filed its Motion to Continue and Reschedule the Hearing.

TODAY, shall the Commission grant Montana-Dakota Utilities Co.'s Motion to Continue and Reschedule the Hearing?

Telecommunications

1. TC03-064 In the Matter of the Filing For Approval of an Interconnection Agreement between McLeodUSA Telecommunications Services, Inc. and Midcontinent Communications, Inc. (Staff Attorney: Kelly Frazier)

On April 2, 2003, the Commission received for approval an Interconnection Agreement between McLeodUSA Telecommunications Services, Inc. and Midcontinent Communications, Inc. According to the parties, this agreement addresses the type of traffic and rates to be exchanged between the parties, and the responsibilities of the parties regarding billing, payment and interconnection.

TODAY, shall the Commission approve the proposed Agreement?

2. In the Matter of the Filing for Approval of Amendments to Agreements in TC03-051, TC03-053 and TC03-065.

TC03-051 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and DIECA Communications, Inc. d/b/a Covad Communications Company. (Staff Attorney: Kelly Frazier)

On February 20, 2003, the Commission received a Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and DIECA Communications, Inc. d/b/a Covad Communications Company. According to the parties, this filing is an Amendment to the original agreement approved by the Commission on November 18, 1999, in Docket TC99-017. The Amendment is made in order to add terms, conditions and rates for joint testing as set forth in Attachment 1 and Exhibit A to the Amendment.

TC03-053 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and ICG Telecom Group, Inc. (Staff Attorney: Kelly Frazier)

On February 24, 2003, the Commission received a Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and ICG Telecom Group, Inc. According to the parties, this filing is an Amendment to the original agreement approved by the Commission on January 3, 2003, in Docket TC02-045. The Amendment is made in order to replace the existing terms, conditions and rates for UNEs (Part E), in its entirety, with the new terms, conditions and rates for UNEs (Section 9.0), as set forth in Attachment 1 and Exhibits A, B, C and D to the Amendment.

TC03-065 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and Midcontinent Communications, Inc. (Staff Attorney: Kelly Frazier)

On April 4, 2003, the Commission received a filing of New Product Offering Amendment to Agreement between Qwest Corporation (Qwest) and Midcontinent Communications, Inc. (Midco). According to the parties, the Amendment is a negotiated agreement between Midco and Qwest which was approved by the Commission effective May 5, 1999, in Docket TC99-023. The Amendment is made in order to add terms, conditions and rates for an expedited process for Midco's procurement of new Qwest products and services, as set forth in Attachment 1 and Exhibits L/M attached to the Amendment.

TODAY, shall the Commission approve the proposed Amendments?

3. TC02-173 In the Matter of the Application of CI2, Inc. for a Certificate of Authority to Provide Local Exchange Services in South Dakota. (Staff Analyst: Michele Farris Staff Attorney: Kelly Frazier)

CI2, Inc. has filed an application for a Certificate of Authority to provide local exchange service in South Dakota. The applicant intends to provide resold local exchange service to end users without using its own network facilities or the unbundled network elements, hose of an underlying local exchange carrier. The applicant intends to provide service in those areas served by Qwest.

TODAY, shall the Commission approve the Certificate of Authority for CI2, Inc.?

4. TC03-057 In the Matter of the Application of Qwest Corporation to Reclassify Local Exchange Services as Fully Competitive. (Staff Analyst: Harlan Best Staff Attorney: Karen Cremer)

On March 14, 2003, pursuant to SDCL 49-31-3.2 and ARSD 20:10:24:11 Qwest Corporation filed with the Public Utilities Commission a request to reclassify local exchange and other related services as fully competitive in all Qwest exchanges in South Dakota. On April 15, 2003, intervention was granted to Black Hills FiberCom, LLC, Northern Valley Communications, LLC, Midcontinent Communications, PrairieWave Telecommunications, Inc., PrairieWave Community Telephone, Inc., Midstate Telecom, Inc., the South Dakota Telecommunication Association, and WorldCom.

TODAY, shall the Commission find that this proceeding cannot be completed within ninety days and that an additional time period is necessary for the commission to adequately and completely fulfill its duty under Chapter 49-31 and order the deferral of decision for an additional ninety day period pursuant to SDCL 49-31-3.2? AND, shall the Commission, pursuant to SDCL 49-31-44, require Qwest to make a deposit of $75,000? AND, shall the Commission approve a procedural schedule?

5. TC03-058 In the Matter of the Application of C III Communications Operations, LLC for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Bonnie Bjork Staff Attorney: Kelly Frazier)

C III Communications Operations, LLC has filed an application for a Certificate of Authority to provide intrastate interexchange telecommunications services in South Dakota. The applicant intends to provide resold intrastate interexchange services, including message telecommunications service, outbound wide area telecommunication service, inbound 800 service, travel card service, operator assisted calling programs, private line services and frame relay service throughout South Dakota.

TODAY, shall the Commission approve the Certificate of Authority for C III Communications Operations, LLC?

6. TC03-059 In the Matter of the Application of Consolidated Communications Operator Services, Inc. for a Certificate of Authority to Provide Operator Assisted Telecommunications Services and Services for Payphones in South Dakota. (Staff Analyst: Bonnie Bjork Staff Attorney: Karen Cremer)

Consolidated Communications Operator Services, Inc. has filed an application for a Certificate of Authority to provide live and automated long distance assistance and directory assistance services, as well as services for coinless and coin-operated public telephones.

TODAY, shall the Commission approve the Certificate of Authority for Consolidated Communications Operator Services, Inc.?

7. TC03-063 In the Matter of the Application of Qwest Communications Corporation for an Amended Certificate of Authority to Provide InterLATA Intrastate Telecommunications Services and Operator Services in South Dakota. (Staff Analyst: Bonnie Bjork Staff Attorney: Kelly Frazier)

Qwest Communications Corporation has filed an application for a Certificate of Authority to provide interexchange telecommunications services and operator services in South Dakota. The applicant intends to provide facilities based and resold interLATA and intraLATA interexchange services for voice and data applications, including 1+ and 10-10-XXXX outbound dialing, 800/888 Toll-Free inbound dialing, directory assistance, data services, calling cards and operator services throughout South Dakota.

TODAY, shall the Commission approve to amend the Certificate of Authority for Qwest Communications Corporation to provide interLATA intrastate telecommunications services and operator services?

8. TC03-066 In the Matter of the Application of Epixtar Communications Corp. for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Bonnie Bjork Staff Attorney: Karen Cremer)

Epixtar Communications Corp. has filed an application for a Certificate of Authority to provide interexchange intrastate telecommunications services in South Dakota on a resale basis. The applicant intends to provide resold interexchange services, including 1+ and 101XXXX outbound dialing, 800/888 Toll-Free inbound dialing, directory assistance, operator services, and travel card service throughout South Dakota.

TODAY, shall the Commission approve the Certificate of Authority for Epixtar Communications Corp.?

9. TC03-068 In the Matter of the Application of Midcontinent Communications, Inc. for Approval to Expand its Certificate of Authority to Provide Local Exchange Service in the Service Territory of Interstate Telecommunications Cooperative, Inc. (Staff Analyst: Harlan Best Staff Attorney: Karen Cremer)

On April 17, 2003, Midcontinent Communications filed an application to amend its certificate of authority to provide local exchange service in the Webster exchange of Interstate Telecommunications Cooperative, Inc. (ITC), a rural telecommunications carrier. In the Webster exchange Midcontinent Communications will use a combination of ITC resold services and the hybrid fiber coax of its cable plant to provide primary transport for residential telephone service. Midcontinent Communications will also provide intrastate and interstate interexchange services for commercial and residential customers. Midcontinent Communications has requested interconnection pursuant to 47 U.S.C. Section 251(f)(1)(A) with ITC, requests confidential treatment of its financial information, and requests a waiver from providing service to the entire ITC service area to provide local exchange service in the Webster exchange of ITC. Interstate Telecommunications Cooperative, Inc. filed a letter to intervene on April 29, 2003.

TODAY, shall the Commission grant intervention to Interstate Telecommunications Cooperative, Inc. and to any others who may have filed?

Administration

1. EL02-003 In the Matter of the Petition of West River Electric Association, Inc. for a Declaratory Ruling Regarding Service Territory Rights Concerning Black Hills Power, Inc. and West River Electric Association, Inc. (Commission Attorney John Smith)

West River Electric Association, Inc. (West River) filed a petition with the Commission for a declaratory ruling in regard to the following issues: a. Whether Black Hills Power, Inc. (Black Hills) is rendering or has extended service within West River's territory in violation of SDCL 49-34A-42. b. Whether West River has the right to provide future electrical service to the Rapid City Waste Treatment Facility (Plant) located within West River's assigned service area. A hearing in this matter was held on May 22, 2002, and on September 24, 2002, the Commission issued its decision in the case, ruling that Black Hills had violated SDCL 49-34A-42 when it extended service to Service No. 2 in 1987 and that West River had the right to serve Service No. 2 and future Services Nos. 3 through 6 at the Plant that required the extension of primary voltage lines. Black Hills appealed the Commission's decision to the Seventh Circuit Court in Pennington County. On February 18, 2003, the Circuit Court filed its decision reversing the Commission's decision, determining that Black Hills has the right to provide all electric service to the Plant, adopting the holding of the Illinois Court of Appeals in Coles-Moultrie Elec. Coop. v. Illinois Commerce Comm. as the law of this state and applying Coles-Moultrie to extend its decision in favor of Black Hills beyond the Plant to the entire parcel of land owned by the City. On April 23, 2003, West River filed its Notice of Appeal in the case and on April 24, 2003, Commission Counsel filed a Notice of Appeal to preserve the Commission's appeal rights in the case.

TODAY, does the Commission wish to proceed with the appeal of this case to the Supreme Court? If so, does the Commission want to go on record as opposing the adoption of the Coles-Moultrie definition of "location" as the law of this state?

Announcements

1. The next regularly scheduled Commission meeting will be held June 3, 2003, at 8:30 a.m., in Room 412 of the Capitol Building.

2. A hearing in docket CT02-017 is scheduled for July 8, 2003, at 10:00 a.m. at Rapid City, South Dakota at the Holiday Inn Conference Room.

3. A hearing in docket TC02-174 is scheduled for August 6, 2003, at 10:00 a.m. at Sioux Falls, South Dakota.

4. A hearing in docket TC03-057 is scheduled for August 12, 13, 14, and 15, 2003, at 8:00 a.m. in Room 412 of the Capitol Building.

5. A hearing in docket TC01-098 is scheduled for September 16, 17, 18, 19, 22, 23, 24, 25, and 26, 2003, at 1:30 p.m. in Room 412 of the Capitol Building.

6. Commission meetings are scheduled for June 17 and July 1, 2003.

______________________
Heather K. Forney
Deputy Executive Director
heather.forney@state.sd.us
April 30, 2003