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South Dakota Public Utilities Commission Meeting


Tuesday, November 30, 2004 at 2:30 P.M.

Holiday Inn City Center

Sioux Falls, 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 November 29, 2004.

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 Meeting Held on October 8, 2004 and the Commission Meeting Held on October 26, 2004. (Staff: Tina Douglas.)

Consumer Issues

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

2. CT02-012 In the Matter of the Complaint Filed by Wayne and Donna Weig, Leola, South Dakota, Against MCIWorldCom Regarding Deceitful Telemarketing Practices. (Staff Analyst: Jim Mehlhaff, Staff Attorney: Karen Cremer)

Complainants state that on April 16, 2002, they received a call from an MCI representative soliciting their long distance service. The telemarketing representative told the Complainants that the consumers' local long distance provider Valley Telco was merging with MCI and that the Complainants would be very happy with the merger. Wayne agreed to switch their service to MCI because of this merger. When Complainants contacted Valley Telco, they were advised that Valley Telco was not merging with MCI. Complainants attempted to put a pic freeze on their long distance service, but MCI switched their service provider before the pic freeze was placed on the line. Complainants have had previous problems with MCI and feel the marketing practices are deceitful. Complainants want MCI to be fined heavily and its underhanded solicitation tactics put to an end. On May 15, 2002, MCI WorldCom filed a Motion to Dismiss. The Commission denied MCI's Motion to Dismiss a May 30, 2002, meeting. On November 23, 2004, MCI filed a Motion to Dismiss, the basis of which is its Bankruptcy Plan which was accepted by the bankruptcy court on April 20, 2004.

TODAY,shall the Commission Dismiss the Complaint and Close the Docket?


Electric

1. EL04-016 In the Matter of the Filing by Superior Renewable Energy LLC et al. against Montana-Dakota Utilities Co. Regarding the Java Wind Project. (Staff Analysts: Michele Farris and Keith Senger, Staff Attorney: Karen Cremer)

On May 12, 2004, Superior Renewable Energy LLC (Superior) and its wholly owned subsidiary, Java LLC, filed a complaint requesting the Commission to settle a dispute regarding the long term purchase price of electricity generated from a Qualified Facility pursuant to the Public Utility Regulatory Policy Act of 1978. On May 27, 2004, Montana-Dakota Utilities Co. (MDU) filed a Petition to Intervene. The Commission granted intervention to MDU a June 8, 2004 meeting. On June 15, 2004, MidAmerican Energy Company (MidAmerican) filed a Petition to Intervene Out of Time. On June 17, 2004, NorthWestern Corporation (NorthWestern) filed a Petition to Intervene. On June 18, 2004, Black Hills Power, Inc. (Black Hills) filed a Petition to Intervene. The Commission granted intervention to MidAmerican, NorthWestern, and Black Hills a June 22, 2004 meeting. On July 16, 2004, Northern States Power Company d/b/a Xcel Energy (Xcel) filed a Petition to Intervene. The Commission granted intervention to Xcel a August 17, 2004 meeting. On September 1, 2004, Superior filed a Motion for Notice and Order. On October 4, 2004, Superior moved for an order to compel MDU to respond to certain interrogatories. The Commission issued an Order Granting Motion to Compel a October 12, 2004, meeting. On November 9, 2004, Superior filed a Motion to compel MDU to respond to certain interrogatories served upon MDU on or about July 16, 2004. The particular interrogatory that is subject to the Motion is Number 1. The Commission granted Superior's Motion to Compel a November 19, 2004, Ad Hoc Meeting. On November 15, 2004, Superior filed a Motion to Shorten Time for Responses to Superior Discovery Requests and to Extend Discovery Cut-Off Date.

TODAY, shall the Commission Grant Superior's Motion to Shorten Time for Responses to Discovery Requests and to Extend Discovery Cut-Off Date?

2. EL04-025 In the Matter of the Joint Request for an Electric Service Territory Boundary Change between Xcel Energy, Inc. and Sioux Valley-Southwestern Electric Cooperative, Inc. d/b/a Sioux Valley Energy. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)

On August 6, 2004, Sioux Valley Energy filed, for Commission approval, a Service Territory Exchange Agreement between Xcel Energy, Inc. and Sioux Valley-Southwestern Electric Cooperative, Inc. The agreement seeks a modification to the existing service territories of the respective companies allowing each party to better serve present and future customers within the modified territories.

TODAY, shall the Commission Approve the Joint Request for an Electric Service Territory Boundary Change?

3. EL04-028 In the Matter of the Filing by Xcel Energy for Approval of its 2003 Economic Development Annual Report and 2004 Economic Development Plan. (Staff Analyst: Michele Farris, Staff Attorneys: Karen Cremer/Sara Harens)

On September 24, 2004, Xcel Energy filed its 2003 economic development report and 2004 proposed economic development plan for Commission approval. These reports are filed in accordance with the requirements in EL01-004.


TODAY, shall the Commission Approve the 2003 Economic Development Report and the 2004 Economic Development Plan?

4. EL04-031 In the Matter of the Joint Request for an Electric Service Rights Exception between Whetstone Valley Electric Cooperative, Inc. and Otter Tail Power Company. (Staff Analyst: Michele Farris, Staff Attorneys: Karen Cremer/Sara Harens)

On October 12, 2004, Whetstone Valley Electric Cooperative, Inc., Otter Tail Power Company and Victory Farms filed a joint petition to request Commission approval of a service rights exception. The petition requests the Commission to authorize a service rights exception to the Victory Farms' dry cow facility and manager residence located in the East 1/2 of the NW 1/4 of Section 34, Township 120 North, Range 48 West of the 5th P.M., Grant County, South Dakota, for so long as those facilities shall be used for agricultural and related residential purposes and allow Otter Tail Power Company to serve the above described parcel.

TODAY, shall the Commission Approve the Joint Request for an Electric Service Rights Exception?

5. EL04-032 In the Matter of the Petition for Electrical Service by Dakota Turkey Growers, LLC to have Dakota Energy Cooperative, Inc. Assigned as its Electric Provider in the Service Area of NorthWestern Energy. (Staff Analyst: Michele Farris, Staff Attorneys: Karen Cremer/Sara Harens)

On October 18, 2004, the Commission received a petition from Dakota Turkey Growers, LLC for electrical service. The petition requests that the Public Utilities Commission assign Dakota Energy Cooperative, Inc. as the supplier of electrical service to the Dakota Turkey Growers facility. Dakota Turkey Growers is constructing and will operate a turkey processing plant at a site located in the NE Quarter of Section 4, Township 110 North, Range Six West, in Beadle county, South Dakota, approximately one and one-half miles east of Huron, South Dakota, on the south side of Highway 14. The site of the facility is within the assigned service area of NorthWestern Energy. Dakota Turkey Growers will require electrical service of substantially more than a contracted minimum demand of 2,000 kilowatts, and will enter into a contract for such electrical service. On November 3, 2004, NorthWestern Corporation filed a Petition to Intervene and Objection.

TODAY, shall the Commission grant NorthWestern's Petition to Intervene?

6. EL04-033 In the Matter of the Filing by Otter Tail Power Company for Approval of Tariff Revisions. (Staff Analyst: Dave Jacobson, Staff Attorneys: Karen Cremer/Sara Harens)

Application by Otter Tail Power Company (Otter Tail) for approval to revise its tariffed Summary List of Contracts with Deviations. The existing contract with the Town of Revillo will expire on December 1, 2004. Otter Tail states the new agreement does not contain any deviations from Otter Tail's currently filed tariff and therefore requests that reference to a contract with the Town of Revillo be removed from the Summary List of Contracts with Deviations.

TODAY, shall the Commission Approve the Tariff Revisions?


Natural Gas

1. NG04-004 In the Matter of the Filing by Montana-Dakota Utilities Co. for Authority to Increase Rates for Natural Gas Service. (Staff Analyst: Dave 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 $1,281,417 or 2.2% based on an adjusted test year ended 12/31/2003. The company states the proposed increase for a residential customer would average about $1.96 per month. The proposed rates may potentially affect 43,100 customers in the Black Hills area of South Dakota. A June 22, 2004, meeting the Commission suspended the imposition of the tariff for 90 days beyond June 7, 2004. A July 20, 2004, meeting the Commission reconsidered the suspension of the imposition of the tariff for 90 days beyond June 7, 2004, and instead suspended imposition of the tariff for 90 days beyond July 7, 2004. Staff submitted a proposed contract for consulting services to the Commission, which was approved at the August 17, 2004, meeting. On November 15, 2004, a Joint Motion for Approval of Settlement Stipulation was filed by MDU and Commission staff.

TODAY, shall the Commission Grant the Joint Motion for Approval of Settlement Stipulation?

Telecommunications

1. TC03-100 In the Matter of the Establishment of Switched Access Revenue Requirement for Western Telephone Company. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

On June 26, 2003, Western Telephone Company, Faulkton, 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.

TODAY, shall the Commission Establish a Switched Access Revenue Requirement for Western Telephone Company?

2. TC03-101 In the Matter of the Establishment of Switched Access Revenue Requirement for Kennebec Telephone Company. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

On June 26, 2003, Kennebec Telephone Company, Kennebec, 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.

TODAY, shall the Commission Establish a Switched Access Revenue Requirement for Kennebec Telephone Company?

3. TC03-103 In the Matter of the Establishment of Switched Access Revenue Requirement for Venture Communications Cooperative, Inc. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)


On June 27, 2003, Venture Communications Cooperative, Inc., Highmore, 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.

TODAY, shall the Commission Establish a Switched Access Revenue Requirement for Venture Communications Cooperative, Inc.?

4. TC03-104 In the Matter of the Establishment of Switched Access Revenue Requirement for Valley Telecommunications Cooperative Association, Inc. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

On June 27, 2003, Valley Telecommunications Cooperative Association, Herried, 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.

TODAY, shall the Commission Establish a Switched Access Revenue Requirement for Valley Telecommunications Cooperative Association, Inc.?

5. TC03-105 In the Matter of the Establishment of Switched Access Revenue Requirement for Interstate Telecommunications Cooperative, Inc. (Staff Analyst: Keith Senger, Staff Attorney: Karen Cremer)

On June 30, 2003, Interstate Telecommunications Cooperative, Clear Lake, 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.

TODAY, shall the Commission Establish a Switched Access Revenue Requirement for Interstate Telecommunications Cooperative, Inc.?

6. TC03-106 In the Matter of the Establishment of Switched Access Revenue Requirement for West River Cooperative Telephone Company. (Staff Analyst: Keith Senger, Staff Attorney: Karen Cremer)

On June 30, 2003, 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.

TODAY, shall the Commission Establish a Switched Access Revenue Requirement for West River Cooperative Telephone Company?

7. TC03-107 In the Matter of the Establishment of Switched Access Revenue Requirement for Santel Communications Cooperative, Inc. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)


On June 30, 2003, Santel Communications Cooperative, Inc., Woonsocket, 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.

TODAY, shall the Commission Establish a Switched Access Revenue Requirement for Santel Communications Cooperative, Inc.?

8. TC03-111 In the Matter of the Establishment of Switched Access Revenue Requirement for Cheyenne River Sioux Tribe Telephone Authority. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

On July 10, 2003, Cheyenne River Sioux Tribe Telephone Authority, Eagle e, 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 Carriers Association.

TODAY, shall the Commission Establish a Switched Access Revenue Requirement for Cheyenne River Sioux Tribe Telephone Authority?

9. TC03-191 In the Matter of the Filing by WWC License, LLC d/b/a CellularOne for Designation as an Eligible Telecommunications Carrier in Other Rural Areas. (Staff Analyst: Harlan Best, Staff Attorney: John Smith)


On November 5, 2003, WWC Holding Co., Inc., d/b/a CellularOne (Western Wireless) filed a petition to be designated as an eligible telecommunications carrier (ETC) for purposes of qualifying to obtain federal universal service support in the study areas of certain rural telephone companies. This petition seeks an order immediately designating Western Wireless as an ETC in the study areas of the following rural telephone companies: Golden West Telephone Communications Inc., James Valley Cooperative Telephone Company, Splitrock Properties Inc., Sully Buttes Telephone Cooperative Inc., Tri-County Telcom Inc., Vivian Telephone Co., West River Telecommunications Coop (Mobridge) - SD, and West River Telecommunications Cooperative - SD. On November 21, 2003, James Valley Coop Telephone, SDTA, Golden West Telecommunications Cooperative, Alliance Communications Cooperative, Inc., and Splitrock Properties, Inc., Vivian Telephone Company, Venture Communications Cooperative, Tri-County Telcom, Inc., and West River Telecommunications Cooperative (Hazen, ND) filed for intervention. The Commission granted intervention to all parties that filed a December 2, 2003, meeting. On January 2, 2004, WWC filed a Motion to Amend Petition. The Commission granted WWC's Motion to Amend Petition a regularly scheduled meeting on January 20, 2004. An Order For and Notice of Procedural Schedule and Hearing was issued on February 13, 2004. On March 5, 2004, the Intervenors filed a Motion to Compel Discovery and a Motion to Expand Procedural Schedule. Alliance Communications Cooperative, Inc. and Splitrock Properties, Inc. filed a Motion to Withdraw Petition to Intervene on March 11, 2004. The Commission granted the Intervenors Motion to Expand Procedural Schedule at an Ad Hoc meeting on March 15, 2004. The Commission granted in part and denied in part Intervenors Motion to Compel Discovery and granted Alliance and Splitrock's Motion to withdraw at the regularly scheduled meeting on March 23, 2004. West River Telecommunications Cooperative filed a Motion to Withdraw Petition on March 22, 2004. The Commission granted West River's Motion to Withdraw a April 6, 2004, meeting. A hearing was held in this matter May 4 - 6, 2004. The Commission voted to designate Western Wireless as an ETC a August 17, 2004, meeting. On September 30, 2004, Western Wireless filed a Petition for Reconsideration and Clarification. All intervening parties in this proceeding, including the South Dakota Telecommunications Association and also each of the South Dakota rural local exchange carriers whose rural service areas are affected by the Commission's Designation Order: Golden West Telecommunications Cooperative, Inc., Vivian Telephone Company, James Valley Cooperative Telephone Company, Venture Communications Cooperative, Inc., and Tri-County Telcom, Inc. filed an Answer to Petition for Reconsideration and Clarification on October 20, 2004. An Objection of James Valley Telecommunications Company to Petition for Reconsideration and Clarification by WWC License, LLC was filed on October 20, 2004.

TODAY, shall the Commission grant the Petition of WWC License, LLC d/b/a CellularOne for Reconsideration and Clarification?

10. TC04-034 In the Matter of the Request for a Confidentiality Determination in Accordance with ARSD 20:10:01:42. (Staff Attorney: Sara Harens)

On February 18, 2004, the Commission received a request from staff for a confidentiality determination in accordance with ARSD 20:10:01:42. According to the request, staff is attempting to make claims on the bond proceeds of S&S Communications (S&S). In order to make these claims, staff must provide information to the bonding companies which has been filed as confidential. S&S refuses to permit the release of information filed as confidential to any bonding company that does not sign a confidentiality agreement. The companies have provided staff with Indemnity Agreements signed by S&S which they claim gives them a right to see the information. Neither company has signed the confidentiality agreement. Staff has requested that the Commission make a determination that the information should not be treated as confidential on the basis that the information was not filed in compliance with the provisions of ARSD 20:10:01:41, S&S cannot meet the burden established in ARSD 20:10:01:43 and that the Indemnity Agreements that S&S signed with the bonding companies constitute a waiver of confidentiality as to those companies. A Motion for Order Permitting Release of Information Filed as Confidential was attached to the request. On February 25, 2004, Staff filed an Amended Motion for Order Permitting Release of Information Filed as Confidential in order to correct two clerical errors in the previously filed motion.

TODAY, shall the Commission Dismiss Staff's Request for a Confidentiality Determination and Close the Docket?

11. TC04-206 In the Matter of the Joint Application for Approval of the Sale of the Stock of Tri-County Telcom, Inc. from James O. Ekstrand to Hanson Communications, Inc., a Wholly Owned Subsidiary of McCook Cooperative Telephone Company. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

On September 27, 2004, the Commission received a Joint Application for Approval of the Sale of Stock of Tri-County Telcom, Inc. from James O. Ekstrand to Hanson Communications, Inc. a Wholly Owned Subsidiary of McCook Cooperative Telephone Company. It is requested that (1) the Commission approve the purchase and sale of all of the issued and outstanding shares of all classes of stock of Tri-County Telcom, Inc. in accordance with the provisions of the Stock Purchase Agreement, dated as of September 16, 2004, and (2) to amend the Certificate of Authority previously issued to Tri-County Telcom, Inc. to reflect the change in ownership of the corporation.

TODAY, shall the Commission Approve the Sale of Stock?

12. TC04-207 In the Matter of the Petition of Black Hills FiberCom, L.L.C. for a Continuation of an Exemption from Developing Company Specific Cost-Based Switched Access Rates. (Staff Analyst: Harlan Best, Staff Attorneys: Karen Cremer/Sara Harens)


On October 14, 2004, Black Hills FiberCom, L.L.C. (FiberCom) filed a request with the Public Utilities Commission for approval to continue FiberCom's exemption from establishing cost-based switched access rates which was granted on October 18, 2001. "It is FiberCom's position that the additional costs associated with developing company-specific, cost-based intrastate switched access rates outweigh any benefits to FiberCom's customers and, therefore, it is in the best interests of the consumer and customers of FiberCom to continue the exemption pursuant to ARSD 20:10:27:11."

TODAY, shall the Commission Grant FiberCom's Request for Continued Exemption from Establishing Cost-Based Switched Access Rates?

13. TC04-213 In the Matter of the Filing by Brookings Municipal Utilities d/b/a Swiftel Communications for Designation as an Eligible Telecommunications Carrier. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

On October 28, 2004, Brookings Municipal Utilities d/b/a Swiftel Communications (Brookings) filed a Petition for Designation as an Eligible Telecommunications Carrier (ETC) for wireless personal communications service (PCS) operations in South Dakota. Brookings is authorized by the Federal Communications Commission (FCC) as a wireless PCS carrier in the partitioned area of the Minneapolis-St. Paul Metropolitan Trading Area (MTA), MTA012, which encompasses Brookings, Lake, Lincoln, McCook, Minnehaha, Moody, Turner, Clark, Codington, Deuel, Grant, Hamlin, and Roberts counties; in the Sioux Falls Basic Trading Area (BTA), BTA422; in the Watertown BTA 464; in the partitioned area of the Des Moines-Quad Cities, Iowa MTA032 which encompasses Bon Homme, Clay, Union, and Yankton counties; and in the Sioux City, Iowa BTA421. Brookings requests that it be designated as an ETC in portions of its FCC authorized service area. For the local exchange carrier wire centers that are only partially covered by Brookings' authorized service area, Brookings requests that the Commission designate as an ETC the portion of the wire center where Brookings is authorized to provide service. For wire centers which overlap into South Dakota, Brookings requests that the Commission designate Brookings in the portion of those wire centers that are within South Dakota. Interstate Telecommunications Cooperative and Sioux Valley Telephone filed Petitions for Intervention on November 18, 2004. The South Dakota Telecommunications Association filed a Petition to Intervene on November 19, 2004.

TODAY, shall the Commission Grant Intervention to Interstate Telecommunications Cooperative, Sioux Valley Telephone, and the South Dakota Telecommunications Association?

14. TC04-216 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and XO Network Services, Inc. (Staff Attorney: Sara Harens)

On November 4, 2004, the Commission received a filing for approval of an Amendment to the Interconnection Agreement between Qwest Corporation and XO Network Services, Inc. According to the parties, the Amendment is made in order to add terms and conditions for the Special Request Process.

TODAY, shall the Commission Approve the Amendment to the Interconnection Agreement?

Administrative

1. Telecommunications Outages (Staff Attorney: Sara Harens)


At the August 17, 2004, meeting, Staff updated the Commissioners on recent events involving two South Dakota telecommunication providers have raised questions about how telecommunications providers, in general, communicate with the Commission about service outages and what type of redundancy is provided within their infrastructure. Each event involved a fiber cut that resulted from a contractor or individual who was conducting work for a third party not connected to the telecommunication provider. As a result of each fiber cut, telecommunication services for extended areas in South Dakota were affected. In both cases, the ability of law enforcement personnel at the federal, state or local levels were impacted, along with state government communication. The Commission recommended that the staff and the companies open up communications on how to avoid, if possible, the problems that arose with the outages, and possible come up with some solutions on how to better manage the situations when they arise. Staff has further updates for the Commissioners.

Announcements

1. The next regularly scheduled Commission meeting will be held December 14, 2004, at 9:30 a.m. in Room 412, at Pierre, South Dakota.

2. Commission meetings are scheduled for December 28, 2004, and January 11, 2005.

3. The PUC offices will be closed November 25 and 26, 2004, in observance of Thanksgiving.

4. The Commission will be hosting a Wind Summit between wind developers and electric utilities in Sioux Falls on November 30, 2004.

5. The PUC offices will be closed December 24, 2004, in observance of Christmas.

_____________________
Heather K. Forney

Deputy Executive Director

heather.forney@state.sd.us

November 24, 2004