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South Dakota Public Utilities Commission Meeting


Tuesday, June 3, 2003 at 9:00 A.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 2, 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 May 6, 2003, and the Ad Hoc Meeting Held on May 12, 2003. (Staff: Tina Douglas.)

Consumer Issues

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

2. CT03-009 In the Matter of the Complaint filed by Robert Thomason, Selby, South Dakota, against Touch America, Inc. and WilTel Communications, LLC Regarding Unauthorized Switching of Services. (Staff Analyst: Jim Mehlhaff, Staff Attorney: Kelly Frazier)

Complainant alleges that one of the respondents changed his long distance service provider without authorization. Complainant seeks to be awarded $1,000.00 as provided for in SDCL 49-31-93.

TODAY, if the matter is resolved shall the Commission dismiss the complaint and close the docket?

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 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?

2. EL03-014 In the Matter of the Filing by MidAmerican Energy Company for Approval of Tariff Revisions. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)

On April 17, 2003, MidAmerican Energy Company filed SDPUC Electric Tariff No. 1, Section No. 6, 8th Revised Sheet No. 2 for Commission approval. MidAmerican is proposing changes to the back of its standard bill form. MidAmerican has retooled its printing operations so that it is now feasible to perform in- house printing on both sides of its bill form. Due to this operational change, MidAmerican no longer needs to retain the contact information for each regulatory agency on every bill regardless of the customer's jurisdiction

TODAY, shall the Commission approve the proposed Tariff Revisions?

3. EL03-015 In the Matter of the Filing for Approval of a Consent and Agreement for Electric Service in Assigned Service Territory of Another Electric Supplier between NorthWestern Energy and Northern Electric Cooperative, Inc. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)

NorthWestern Energy (NorthWestern) and Northern Electric Cooperative (Northern) filed a joint petition for approval of an electric service rights exception. NorthWestern consents to Northern providing electrical service to the house and future out buildings on the property owned by Mark and Rebecca Labrie described as that part of the SW 1/4 West of SD Highway 37 in S6, T116N, R61W of the 5th P.M., Spink County, SD, except the North 949 feet, the Railroad right-of-way, and Lot H-1 and H-2, and; the abandoned Railroad right-of-way in the SW 1/4 West of SD Highway 37 in S6, T116N, R61W of the 5th P.M. Spink County, SD.

TODAY, shall the Commission approve the proposed Consent and Agreement for Electric Service in Assigned Service Territory of Another Electric Supplier?

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. On May 22, 2003, Montana-Dakota Utilities Co. filed a Motion to Extend Deadline for Re al Testimony.

TODAY, shall the Commission grant Montana-Dakota Utilities Co.'s Motion to Extend Deadline for Re al Testimony?

2. NG03-003 In the Matter of the Filing by MidAmerican Energy Company for Approval of Tariff Revisions. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)

On April 17, 2003, MidAmerican Energy Company filed SDPUC Gas Sales Tariff, Section No. VI, Eighth Revised Sheet No. 3 for Commission approval. MidAmerican is proposing changes to the back of its standard bill form. MidAmerican has retooled its printing operations so that it is now feasible to perform in-house printing on both sides of its bill form. Due to this operational change, MidAmerican no longer needs to retain the contact information for each regulatory agency on every bill regardless of the customer's jurisdiction.

TODAY, shall the Commission approve the proposed Tariff Revisions?

Telecommunications

1. In the Matter of the Filing for Approval of Agreements in TC03-069, TC03-076, TC03-077, and TC03-080

TC03-069 In the Matter of the Filing for Approval of a Wireline Adoption Agreement between Qwest Corporation and Houlton Enterprises, Inc. d/b/a Guaranteed Phone Service. (Staff Attorney: Kelly Frazier).

On April 17, 2003, the Commission received for approval a Wireline Adoption Agreement between Qwest Corporation (Qwest) and Houlton Enterprises, Inc. d/b/a Guaranteed Phone Service (Houlton). According to the parties, Houlton chooses to adopt, in its entirety, the terms and conditions of the Interconnection Agreement and any associated amendments, if applicable, between AT&T Communications of the Midwest, Inc. and Qwest f/k/a U S West which was approved by the Commission on March 4, 1999, in Docket No. TC96-184.

TC03-076 In the Matter of the Filing for Approval of a Reciprocal Transport and Termination Agreement between PrairieWave Telecommunications, Inc. and Rural Cellular Corporation. (Staff Attorney: Kelly Frazier)

On April 29, 2003, the Commission received a filing for approval of a Reciprocal Transport and Termination Agreement between PrairieWave Telecommunications, Inc. and Rural Cellular Corporation. According to the filing, the parties wish to put in place an arrangement for the mutual exchange and reciprocal compensation of local telecommunications traffic which is intended to supersede any previous arrangements between the parties relating to such traffic.

TC03-077 In the Matter of the Filing for Approval of a Reciprocal Transport and Termination Agreement between PrairieWave Telecommunications, Inc. and Wireless Alliance, LLC. (Staff Attorney: Kelly Frazier)

On April 29, 2003, the Commission received a filing for approval of a Reciprocal Transport and Termination Agreement between PrairieWave Telecommunications, Inc. and Wireless Alliance, LLC. According to the filing, the parties wish to put in place an arrangement for the mutual exchange and reciprocal compensation of local telecommunications traffic which is intended to supersede any previous arrangements between the parties relating to such traffic.

TC03-080 In the Matter of the Filing for Approval of a Type 2 Wireless Interconnection Agreement between Qwest Corporation and Commnet Wireless Inc. (Staff Attorney: Kelly Frazier)

On April 30, 2003, the Commission received a filing for approval of a Type 2 Wireless Interconnection Agreement between Qwest Corporation (Qwest) and Commnet Wireless Inc. According to the parties, the agreement is a negotiated agreement which sets forth the terms, conditions and pricing under which Qwest will offer and provide to any requesting WSP network interconnection, access to unbundled network elements and ancillary services within the geographical areas in which Qwest is providing local exchange service at that time, and for which Qwest is the incumbent local exchange carrier within the state of South Dakota for purposes of providing local two way wireless services.

TODAY, shall the Commission approve the proposed Agreements?

2. In the Matter of the Filing for Approval of Amendments to Agreements in TC03-070, TC03-071, TC03-073 and TC03-074.

TC03-070 In the Matter of the Filing for Approval of an Amendment to a Wireline Adoption Agreement between Qwest Corporation and Houlton Enterprises, Inc. d/b/a Guaranteed Phone Service. (Staff Attorney: Kelly Frazier)

On April 17, 2003, the Commission received for approval an amendment to a Wireline Adoption Agreement between Qwest Corporation (Qwest) and Houlton Enterprises, Inc. d/b/a Guaranteed Phone Service (Houlton). According to the parties, the amendment to the Wireline Adoption Agreement for Voice Traffic - 251(b)(5) Reciprocal Compensation agreement is made in order to reflect the FCC Order on Remand and Report and Order in CC Docket 99-68 (Intercarrier Compensation for ISP Bound Traffic).

TC03-071 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and McLeodUSA Telecommunications Services, Inc. (Staff Attorney: Kelly Frazier)

On April 21, 2003, the Commission received for approval an amendment to an Interconnection Agreement between Qwest Corporation and McLeodUSA Telecommunications Services, Inc. According to the parties, this is an amendment to the Agreement approved by the Commission on July 23, 1999, in Docket TC99-057. The amendment is made in order to add the terms, conditions and rates for UNEs, as set forth in Attachment 1 and Exhibits A, B, and C, attached to the filing.

TC03-073 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 April 24, 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 filing, the amendment is made in order to add terms, conditions and rates for DC Power Reduction Procedure as set forth in Attachment 1 and Exhibit A to this Amendment. The original agreement was approved by the Commission on November 18, 1999, in Docket No. TC99-017.

TC03-074 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and McLeodUSA Telecommunications Services, Inc. (Staff Attorney: Kelly Frazier)

On April 28, 2003, the Commission received a filing for approval of an Amendment to an Interconnection Agreement between McLeodUSA Telecommunications Services, Inc. and Qwest Corporation. According to the parties, the amendment is made in order to add terms, conditions and rates for Collocation Available Inventory, as set forth in Attachment 1 and Exhibit A to the amendment. The original agreement was approved by the Commission on July 23, 1999, in Docket No. TC99-057.

TODAY, shall the Commission approve the proposed Amendments?

3. TC02-166 In the Matter of S&S Communications/Alterna-Cell's Compliance with Commission Order. (Staff Analyst: Keith Senger, Staff Attorney: Kelly Frazier)

On September 27, 2002, the Commission received a Motion from staff requesting that the Commission issue an Order To Show Cause to S&S Communications/Alterna-Cell (S&S) as to why S&S should not be found in violation of the Order Granting Certificate of Authority in TC00-114 (Order) and of the laws of the State of South Dakota, including but not limited to SDCL 49-31-7.1 and ARSD 20:10:01:28, 20:10:06:05 and 20:10:24:05.05. According to the Motion, staff has sent numerous data requests to S&S in order to determine the proper amount of bond which S&S must post pursuant to the Order. On September 24, 2002, staff received a letter from S&S objecting to providing this information. The Motion alleges that this denial is in violation of state law and alleges that S&S is not properly bonded. Staff seeks an Order, inter alia, compelling S&S to produce the information requested by staff, compelling S&S to meet the bond requirements of the Order or suspending or revoking S&S' certificate of authority. On October 28, 2002 the Commission signed an Order granting Staff's Motion To Issue An Order To Show Cause. Subsequently, staff and S&S entered into discussions and S&S agreed to have its certificate of authority amended to restrict the company from entering into or providing pre-paid services and from accepting customer deposits and advanced payments from South Dakota customers, while maintaining all current bonding obligations. On March 18, 2003 the Commission voted unanimously to approve that amendment. On May 27, 2003 staff filed a motion to further amend the certificate of authority to clarify and add reporting requirements.

TODAY, shall the Commission Amend the Certificate of Authority of S&S Communications/Alterna- Cell to clarify and add reporting requirements.

4. 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. A regularly scheduled meeting on May 6, 2003, the Commission approved a Certificate of Authority for CI2 with the condition that they maintain a continuous $25,000 surety bond. Staff is requesting that the Commission reconsider the bond condition, and instead grant the Certificate of Authority with restrictions from offering prepaid calling cards, and from accepting customer deposits and advance payments.

TODAY, shall the Commission reconsider the conditions placed on the Certificate of Authority for CI2?

5. 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. On May 22, 2003, Qwest filed its Motion to Apportion Deposit.

TODAY, shall the Commission grant the Motion to Apportion Deposit?

6. TC03-060 In the Matter of the Filing by Excel Telecommunications, Inc. for Approval of its Intrastate Switched Access Tariff and for an Exemption from Developing Company Specific Cost-Based Switched Access Rates. (Staff Analyst: Keith Senger, Staff Attorney: Kelly Frazier)

On March 20, 2003, Excel Telecommunications, Inc. (Excel). filed its South Dakota P.U.C. access tariff No. 4 for approval. The proposed tariff introduces Excel's intrastate switched access services and rates including, Carrier Common Line Access, Local Transport, Local Switching and Toll-Free Database Query.

TODAY, shall the Commission approve the Intrastate Switched Access Tariff for Excel? AND, shall the Commission grant Excel's request for an Exemption from Developing Company Specific Cost-Based Switched Access Rates?

7. TC03-061 In the Matter of the Filing by VarTec Telecom, Inc. for Approval of its Intrastate Switched Access Tariff and for an Exemption from Developing Company Specific Cost-Based Switched Access Rates. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)

On March 20, 2003, VarTec Telecom, Inc. filed its South Dakota Access Tariff No. 2 for approval. The proposed tariff introduces VarTec's intrastate switched access services and rates, including Carrier Common Line Access, Local Transport, Local Switching and Toll-Free Database Query.

TODAY, shall the Commission approve the Intrastate Switched Access Tariff for VarTec? AND, shall the Commission grant VarTec's request for an Exemption from Developing Company Specific Cost-Based Switched Access Rates?

8. TC03-072 In the Matter of the Application of Horizon Telecom, Inc. for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Bonnie Bjork, Staff Attorney: Karen Cremer)

Horizon Telecom, Inc. has filed an application for a Certificate of Authority to provide interexchange intrastate telecommunications services in South Dakota. The applicant intends to provide resold interexchange services, including 1+ outbound dialing, 8XX Toll-Free inbound dialing, directory assistance, and travel card service throughout South Dakota.

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

9. TC03-075 In the Matter of the Filing by Qwest Corporation for Approval of Revisions to its Access Services Tariff. (Staff Analyst: Keith Senger, Staff Attorney: Karen Cremer)

On April 28, 2003, Qwest Corporation filed a revision to its South Dakota Access Services Tariff. This revision removes the Self Healing Alternate Route Protection (SHARP) feature from the tariff.

TODAY, shall the Commission grant approval of the Revisions to Qwest's Access Services Tariff?

10. TC03-078 In the Matter of the Application of Dialaround Enterprises Inc. for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Bonnie Bjork, Staff Attorney: Karen Cremer)

Dialaround Enterprises Inc. has filed an application for a Certificate of Authority to provide interexchange telecommunications services in South Dakota. The applicant intends to provide resold interexchange services, including 1+ and 101XXXX outbound dialing, 800/888 Toll-Free inbound dialing, directory assistance, conference calling, calling card, prepaid calling card and private line service to presubscribed business and residential customers in South Dakota.

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

11. TC03-084 In the Matter of the Application of X2Comm, Inc. d/b/a DC Communications for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Bonnie Bjork, Staff Attorney: Karen Cremer)

X2Comm, Inc. d/b/a DC Communications has filed an application for a Certificate of Authority to provide interexchange telecommunications services in South Dakota. The applicant intends to provide inbound (toll free) and outbound long distance services to both residential and business customers. Inbound and outbound services will be available as switched and dedicated service.

TODAY, shall the Commission approve the Certificate of Authority for X2Comm, Inc. d/b/a DC Communications?

Administration

1. In the Matter of the Implementation of the Federal Communications Commission's Triennial Review Order. (Commission Attorney: Rolayne Ailts Wiest)

On February 20, 2003, the Federal Communications Commission (FCC) adopted rules concerning the obligations of incumbent local exchange carriers to make elements of their networks available on an unbundled basis to new entrants. According to the press release issued by the FCC, the FCC found that switching for "business customers served by high-capacity loops such as DS-1 will no longer be unbundled based on a presumptive finding of no impairment. Under this framework, states will have 90 days to re he national finding. For mass market customers, the [FCC] sets out specific criteria that states shall apply to determine, on a granular basis, whether economic and operational impairment exists in a particular market. State Commissions must complete such proceedings within 9 months. Upon a state finding of no impairment, the [FCC] sets forth a 3 year period for carriers to transition off of UNE-P." It is expected that the written order will be issued shortly.

TODAY, shall the Commission open a docket or dockets to consider the impairment issues as presented by the FCC's Triennial Review proceeding? If so, how shall the Commission proceed?

Announcements

1. The next regularly scheduled Commission meeting will be held June 17, 2003, at 8:30 a.m., in Room 412 of the Capitol Building.

2. Commissioners and Staff will be attending the MidAmerican Regulatory Conference in Omaha, NE, June 7 - 11, 2003.

3. A hearing in docket NG02-011 is scheduled for June 24, 2003, at 1:30 p.m. and June 25, 2003 at 8:30 a.m. in Room 412 of the Capitol Building.

4. Commission meetings are scheduled for July 1 and July 15, 2003.

5. The proposed rules for the South Dakota Do Not Call Register have been filed with the Legislative Research Council. The Commission will accept written comments and a public hearing has been set for July 1, 2003.

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

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

8. 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.

9. 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.

______________________
Heather K. Forney
Deputy Executive Director
heather.forney@state.sd.us
May 28, 2003