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Please also see the Addendum to this Agenda

South Dakota Public Utilities Commission Meeting

Tuesday, July 1, 2003 at 9:30 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 30, 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 Ad Hoc Meetings Held on June 13, 2003, and June 23, 2003, and the Commission Meeting Held on June 24, 2003. (Staff: Tina Douglas.)

Consumer Issues

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

2. CT03-008 In the Matter of the Complaint filed by Gene Bunge on behalf of Canyon Shadows Water Company, Inc., Rapid City, South Dakota, against Qwest Corporation Regarding Termination of Switch Function Resulting in Damage. (Staff Analyst: Jim Mehlhaff, Staff Attorney: Kelly Frazier)

Complainant's representative alleges that the respondent caused a signal cable interruption, which resulted in a water pump owned by the Complainant to run continuously from mid- November through the month of December. Complainant seeks to be reimbursed for the excess electrical usage and depreciation costs associated with the excess wear on the pump.

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

Electric

1. EL03-018 In the Matter of the Application of Xcel Energy for Approval to Renew the Customer Buyback Program. (Staff Analyst: Keith Senger, Staff Attorney: Kelly Frazier)

Northern States Power Company d/b/a Xcel Energy (Xcel) is requesting the Commission renew Xcel's Customer Buyback Program. The original program tariff was approved by the Commission on July 20, 2000 and expired December 31, 2001. The program was renewed by the Commission on June 19, 2002 with a December 31, 2003 expiration date. This filing renews the program with no expiration date.

TODAY, shall the Commission approve Xcel Energy's application to Renew the Customer Buyback Program?

2. EL03-019 In the Matter of the Filing by Montana-Dakota Utilities Co. for Approval of Tariff Revisions. (Staff Analyst: Dave Jacobson, Staff Attorney: Karen Cremer)

Application by Montana-Dakota Utilities Co. for approval to update 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. Pursuant to Commission Order and tariffed terms and conditions, these rates are reviewed annually and revised when necessary. The rates proposed were developed using the same methodology as was used for the rates currently on file.

TODAY, shall the Commission approve the proposed Tariff Revisions?

3. EL03-020 In the Matter of the Filing by Xcel Energy for Approval of the Inclusion of Financial Incentives in its Fuel Clause. (Staff Analyst: Dave Jacobson, Staff Attorney: Karen Cremer)

Application by Xcel Energy (Xcel) for approval to continue flowing the costs and effects of its hedging transactions for years 2002 and 2003 through its fuel clause pursuant to the terms and conditions ordered in Docket EL99-021. The Commission's decision in Docket EL99-021 approved Xcel's proposal to flow the costs and effects of hedging transactions through Xcel's fuel clause with conditions, including recurring annual approval and biannual reporting requirements. Xcel neglected to obtain approval to continue inclusion of its hedging activity in its fuel clause for the year 2002 and now requests that approval and also approval for 2003. Xcel is also requesting that the reporting requirement be revised to now be annual instead of biannual.

TODAY, shall the Commission approve Xcel Energy's request for Inclusion of Financial Incentives in its Fuel Clause?

Telecommunications

1. TC01-165 In the Matter of the Analysis into Qwest Corporation's Compliance with Section 271(c) of the Telecommunications Act of 1996. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer.)

On October 25, 2001, Qwest Corporation filed with the Commission a Petition For Commission Recommendation That The Federal Communications Commission Grant Qwest Corporation Entry Into The In-Region InterLATA Market Under Section 271 Of The Telecommunications Act Of 1996. On January 15, 2003, Qwest Communications International, Inc. filed with the Federal Communications Commission (FCC) a multi-state application on behalf of itself and its subsidiaries, Qwest Corporation, Qwest LD Corporation, and Qwest Communications Corporation pursuant to Section 271 of the Communication Act of 1934, as amended, for authority to provide in-region interLATA service in New Mexico, Oregon, and South Dakota. The South Dakota Public Utilities Commission (SDPUC) issued an Order Regarding Compliance Filings and Recommendation to the FCC on February 4, 2003. The FCC released its Memorandum Opinion and Order on April 15, 2003, granting Qwest's multistate 271 application to provide in-region, interLATA services in New Mexico, Oregon, and South Dakota effective April 25, 2003. Qwest's Performance Assurance Plan (PAP) for South Dakota was filed on March 3, 2003, in Exhibit K to the Statement of Generally Available Terms and Conditions, in compliance with prior SDPUC orders. The PAP is a two-tiered, self executing remedy plan. Qwest shall make Tier 1 payments to the CLEC and Tier 2 payments to a Fund administered by the SDPUC. Payments shall be made one month following the due date of the performance measurement report for the month for which payment is being made. Upon the execution of a Memorandum of Understanding with the SDPUC, a South Dakota Special Fund and a South Dakota Discretionary Fund shall be created as separate interest bearing escrow accounts. The SDPUC shall determine and direct Qwest to deposit into the South Dakota Special Fund either 1) one-fifth of all Tier 1 payments that exceed the month one payment amounts in Table 2 and one-third of all Tier 2 payments, or 2) 50% of all Tier 2 payments. Qwest shall deposit any other Tier 2 payments into the South Dakota Discretionary Fund.

TODAY, shall the Commission enter into a Memorandum of Understanding with Qwest Corporation regarding the creation of a South Dakota Special Fund and a South Dakota Discretionary Fund pursuant to Qwest's Performance Assurance Plan? AND, how shall the Commission direct Qwest to fund the South Dakota Special Fund?

2. TC02-085 In the Matter of the Establishment of Switched Access Rates for Qwest Corporation. (Staff Analyst: Heather Forney, Staff Attorney: Karen Cremer)

On July 1, 2002, Qwest Corporation filed a switched access cost study "in accordance with ARSD 20:10:27:07....Qwest Corporation is not asking for the Commission to change the switched access rate schedules at this time."

TODAY, shall the Commission close the docket?

3. TC02-090 In the Matter of the Establishment of Switched Access Rates for the Local Exchange Carriers Association. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

On July 1, 2002, the Local Exchange Carriers Association (LECA) filed revised switched access tariff pages. The purpose of these revisions is to implement changes in rates as necessitated by revisions in member companies' revenue requirements and access minutes of use. On May 30, 2003, the Commission received revised pages of LECA Tariff No. 1. The purpose of these revisions is to implement changes in rates as necessitated by revisions in member companies' revenue requirements and also to reflect a few minor textual changes.

TODAY, shall the Commission approve the Switched Access Rates for the Local Exchange Carriers Association, subject to suspension, refund, or both, and with an effective date of July 1, 2003?

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. On May 22, 2003, Qwest filed its Motion to Apportion Deposit. On June 24, 2003, Qwest filed a Motion to Compel Discovery and a Motion to Reduce Time to Respond to Discovery.

TODAY, shall the Commission grant Qwest's Motion to Compel Discovery? AND, shall the Commission grant Qwest's Motion to Reduce Time to Respond to Discovery?

5. TC03-089 In the Matter of the Filing for Approval of an Agreement for Terms and Conditions for Interconnection, Unbundled Network Elements, Ancillary Services and Resale of Telecommunications Services between Qwest Corporation and iLOKA Inc. d/b/a Microtech.tel. (Staff Attorney: Kelly Frazier)

On May 28, 2003, the Commission received a filing of an Agreement for Terms and Conditions for Interconnection, Unbundled Network Elements, Ancillary Services, and Resale of Telecommunications Services provided by Qwest Corporation for iLOKA Inc. d/b/a Microtech-tel. 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 CLEC network interconnection, access to unbundled network elements, ancillary services and telecommunications services available for resale 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 telecommunications services.

TODAY, shall the Commission approve the Agreement between Qwest Corporation and iLOKA, Inc. d/b/a Microtech.tel?

6. TC03-090 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and Midcontinent Communications. (Staff Attorney: Kelly Frazier)

On May 30, 2003, the Commission received a Filing of End Office with Local Tandem Functionality Amendment to Agreement between Qwest Corporation (Qwest) and Midcontinent Communications (f/k/a Midco Communications "Midco"). According to the parties, the Amendment is an amendment to the negotiated agreement reached between the parties which was approved by the Commission effective May 5, 1999, in Docket TC99-023. The amendment is made in order to add End Office with Local Tandem Functionality language to the Agreement, stating that to the extent Qwest is using a specific end office to deliver limited tandem switching functionality to itself, a wireless service provider, another CLEC, or another ILEC, it will arrange the same trunking for the CLEC.

TODAY, shall the Commission approve the proposed Amendment to the Interconnection Agreement?

Announcements

1. The next regularly scheduled Commission meeting will be held July 15, 2003, at 1:30 p.m., in Room 412 of the Capitol Building.

2. Commission meetings are scheduled for August 5 and 15, 2003.

3. 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.

4. The Commission office will be closed July 4, 2003, for Independence Day.

5. 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.

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

7. A hearing in docket TC03-057 is scheduled for August 12, 13, 14, and 15, 2003, at 9:00 a.m. in Room 412 of the Capitol Building.

8. 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
June 24, 2003