South Dakota Public Utilities Commission Meeting
Tuesday, August 8, 2006, 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 July 10, 2006. The lines are limited and are given out on first come/first serve basis. Ultimately, if you wish to participate in the Commission Meeting and a line is not available you may have to appear in person.
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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.ADDENDUM TO THE AGENDA OF COMMISSION MEETING
Gas and Electric
Northwestern Corporation ("NorthWestern") and Babcock & Brown Infrastructure Limited ("BBIL") have entered into an agreement and plan of merger, dated as of April 25, 2006, which is pending approval of the stockholders of Northwestern at its annual meeting to be held on August 2, 2006. In connection with this transaction (the "Transaction"), a question has arisen as to whether the South Dakota Public Utilities Commission (Commission) has jurisdiction to approve the Transaction. Thus, NorthWestern and BBIL have filed a petition for a declaratory ruling pursuant to SDCL § 1-26-15 and ARSD 20:10:01:34. If the Commission concludes that it does in fact have jurisdiction, a second question is presented, namely, will the Commission approve the transaction. On June 21, 2006, Missouri River Energy Services (Missouri River) filed a Petition to Intervene and a Provisional Request for Conditions to Approval of Merger. Petitions to Intervene were also filed by Heartland Consumers Power District (Heartland) and South Dakota Power Company (South Dakota Power) on June 21, 2006, and by East River and Basin Electric on June 22, 2006. The Commission granted intervention to Missouri River, Heartland, South Dakota Power, East River and Basin at its July 11, 2006, meeting. On June 28, 2006, the Commission filed a Notice of Intervention and Request for Full 60 day Time Period for Filing of Protest in FERC Docket EC06-127-000. On July 13, 2006, Northwestern and BBIL filed a Joint Answer and Supplement in which they responded to the concerns raised by the Commission in its filing. TODAY, shall the Commission File a Protest or Additional Comments in FERC Docket EC06-127-000, AND how Shall the Commission Proceed? Telecommunications 1. In the Matter of the Petition for Arbitration of Interconnection Agreements in Dockets TC06-036, TC06-037, TC06-038, TC06-039, TC06-040, TC06-041, and TC06-042. TC06-036 In The Matter Of The Petition Of Armour Independent Telephone Company For Arbitration Pursuant To The Telecommunications Act Of 1996 To Resolve Issues Relating To Interconnection Agreements With WWC License L.L.C. (Staff Analyst: Harlan Best, Staff Attorney: Sara Greff) On May 3, 2006, Armour Independent Telephone Co. (Armour) filed a petition for arbitration of certain unresolved terms and conditions of a proposed Interconnection Agreement between Armour and WWC License L.L.C. (WWC), pursuant to Section 252 of the Telecommunications Act of 1996, SDCL 49-31-81, and ARSD 20:10:32:29. Armour filed a list of unresolved issues consisting of: (1) Is the reciprocal compensation rate for Local Traffic proposed by Armour appropriate pursuant to 47 U.S.C. Section 252(d)(2)? (2) What is the appropriate Percent InterLATA Use factor to be applied to non-local traffic exchanged between the parties? (3) What is the appropriate manner by which the minutes of use of Local Traffic terminated by the parties, one to the other, should be calculated and billed? Armour "respectively requests that the Commission grant the following relief: A. Order arbitration of any unresolved issues between [Armour] and WWC; B. Issue an order directing [Armour] and WWC to submit to the Commission for approval an interconnection agreement reflecting: (i) the agreed-upon language in Exhibit A and (ii) the resolution in this arbitration proceeding of any unresolved issues in accordance with the recommendations made by [Armour] herein, at the hearing on such issues and in Exhibit A; C. Order the parties to pay interim compensation for transport and termination of telecommunications traffic from January 1, 2006, (the Effective Date set forth in Exhibit A) to the date on which the Commission approves the parties' executed interconnection agreement in accordance with Section 252(e) of the Act [footnote omitted]; D. Retain jurisdiction of this arbitration until the parties have submitted an executed interconnection agreement for approval by the Commission in accordance with Section 252(e) of the Act; and E. Take such other and further action as it deems necessary and appropriate." In accordance with ARSD 20:10:32:30, a non-petitioning party may respond to the petition for arbitration and provide additional information within 25 days after the commission receives the petition. On May 15, 2006, Golden West filed a Motion for Consolidation of dockets TC06-036 – TC06-042. SDTA filed a Petition for Intervention on June 5, 2006. On June 16, 2006, WWC filed a Request to Use the Office of Hearing Examiners Pursuant to SDCL 1-26-18.3. The Golden West Companies filed a Motion Seeking Order Requiring Payment of Interim Compensation. On July 28, 2006, the Golden West Companies filed an Application for Reconsideration of the July 11, 2006, Decision of the Public Utilities Commission Granting the Request of WWC License, LLC to Use the Office of Hearing Examiners; a Memorandum in Support of Application for Reconsideration of the July 11, 2006, Decision of the Public Utilities Commission Granting the Request of WWC License, LLC to Use the Office of Hearing Examiners; and a Motion to Suspend Procedural Schedule. TC06-037 In The Matter Of The Petition Of Bridgewater-Canistota Independent Telephone Company For Arbitration Pursuant To The Telecommunications Act Of 1996 To Resolve Issues Relating To Interconnection Agreements With WWC License L.L.C. (Staff Analyst: Harlan Best, Staff Attorney: Sara Greff) On May 3, 2006, Bridgewater-Canistota Independent Telephone Company (Bridgewater) filed a petition for arbitration of certain unresolved terms and conditions of a proposed Interconnection Agreement between Bridgewater and WWC License L.L.C. (WWC), pursuant to Section 252 of the Telecommunications Act of 1996, SDCL 49-31-81, and ARSD 20:10:32:29. Bridgewater filed a list of unresolved issues consisting of: (1) Is the reciprocal compensation rate for Local Traffic proposed by Bridgewater appropriate pursuant to 47 U.S.C. Section 252(d)(2)? (2) What is the appropriate Percent InterLATA Use factor to be applied to non-local traffic exchanged between the parties? (3) What is the appropriate manner by which the minutes of use of Local Traffic terminated by the parties, one to the other, should be calculated and billed? Bridgewater "respectively requests that the Commission grant the following relief: A. Order arbitration of any unresolved issues between [Bridgewater] and WWC; B. Issue an order directing [Bridgewater] and WWC to submit to the Commission for approval an interconnection agreement reflecting: (i) the agreed-upon language in Exhibit A and (ii) the resolution in this arbitration proceeding of any unresolved issues in accordance with the recommendations made by [Bridgewater] herein, at the hearing on such issues and in Exhibit A; C. Order the parties to pay interim compensation for transport and termination of telecommunications traffic from January 1, 2006 (the Effective Date set forth in Exhibit A) to the date on which the Commission approves the parties' executed interconnection agreement in accordance with Section 252(e) of the Act [footnote omitted]; D. Retain jurisdiction of this arbitration until the parties have submitted an executed interconnection agreement for approval by the Commission in accordance with Section 252(e) of the Act; and E. Take such other and further action as it deems necessary and appropriate." In accordance with ARSD 20:10:32:30, a non-petitioning party may respond to the petition for arbitration and provide additional information within 25 days after the commission receives the petition. On May 15, 2006, Golden West filed a Motion for Consolidation of dockets TC06-036 – TC06-042. SDTA filed a Petition for Intervention on June 5, 2006. On June 16, 2006, WWC filed a Request to Use the Office of Hearing Examiners Pursuant to SDCL 1-26-18.3. The Golden West Companies filed a Motion Seeking Order Requiring Payment of Interim Compensation. On July 28, 2006, the Golden West Companies filed an Application for Reconsideration of the July 11, 2006, Decision of the Public Utilities Commission Granting the Request of WWC License, LLC to Use the Office of Hearing Examiners; a Memorandum in Support of Application for Reconsideration of the July 11, 2006, Decision of the Public Utilities Commission Granting the Request of WWC License, LLC to Use the Office of Hearing Examiners; and a Motion to Suspend Procedural Schedule. TC06-038 In The Matter Of the Petition of Golden West Telecommunications Cooperative Inc. For Arbitration Pursuant To The Telecommunications Act Of 1996 To Resolve Issues Relating To Interconnection Agreements With WWC License L.L.C. (Staff Analyst: Harlan Best, Staff Attorney: Sara Greff) On May 3, 2006, Golden West Telecommunications Cooperative, Inc. (Golden West) filed a petition for arbitration of certain unresolved terms and conditions of a proposed Interconnection Agreement between Golden West and WWC License L.L.C. (WWC), pursuant to Section 252 of the Telecommunications Act of 1996, SDCL 49-31-81, and ARSD 20:10:32:29. Golden West filed a list of unresolved issues consisting of: (1) Is the reciprocal compensation rate for Local Traffic proposed by Golden West appropriate pursuant to 47 U.S.C. Section 252(d)(2)? (2) What is the appropriate Percent InterLATA Use factor to be applied to non-local traffic exchanged between the parties? (3) What is the appropriate manner by which the minutes of use of Local Traffic terminated by the parties, one to the other, should be calculated and billed? Golden West "respectively requests that the Commission grant the following relief: A. Order arbitration of any unresolved issues between [Golden West] and WWC; B. Issue an order directing [Golden West] and WWC to submit to the Commission for approval an interconnection agreement reflecting: (i) the agreed-upon language in Exhibit A and (ii) the resolution in this arbitration proceeding of any unresolved issues in accordance with the recommendations made by [Golden West] herein, at the hearing on such issues and in Exhibit A; C. Order the parties to pay interim compensation for transport and termination of telecommunications traffic from January 1, 2006, (the Effective Date set forth in Exhibit A) to the date on which the Commission approves the parties' executed interconnection agreement in accordance with Section 252(e) of the Act [footnote omitted]; D. Retain jurisdiction of this arbitration until the parties have submitted an executed interconnection agreement for approval by the Commission in accordance with Section 252(e) of the Act; and E. Take such other and further action as it deems necessary and appropriate." In accordance with ARSD 20:10:32:30, a non-petitioning party may respond to the petition for arbitration and provide additional information within 25 days after the commission receives the petition. On May 15, 2006, Golden West filed a Motion for Consolidation of dockets TC06-036 – TC06-042. SDTA filed a Petition for Intervention on June 5, 2006. On June 16, 2006, WWC filed a Request to Use the Office of Hearing Examiners Pursuant to SDCL 1-26-18.3. The Golden West Companies filed a Motion Seeking Order Requiring Payment of Interim Compensation. On July 28, 2006, the Golden West Companies filed an Application for Reconsideration of the July 11, 2006, Decision of the Public Utilities Commission Granting the Request of WWC License, LLC to Use the Office of Hearing Examiners; a Memorandum in Support of Application for Reconsideration of the July 11, 2006, Decision of the Public Utilities Commission Granting the Request of WWC License, LLC to Use the Office of Hearing Examiners; and a Motion to Suspend Procedural Schedule. TC06-039 In The Matter Of The Petition Of Kadoka Telephone Company For Arbitration Pursuant To The Telecommunications Act Of 1996 To Resolve Issues Relating To Interconnection Agreements With WWC License L.L.C. (Staff Analyst: Harlan Best, Staff Attorney: Sara Greff) On May 3, 2006, Kadoka Telephone Company (Kadoka) filed a petition for arbitration of certain unresolved terms and conditions of a proposed Interconnection Agreement between Kadoka and WWC License L.L.C. (WWC), pursuant to Section 252 of the Telecommunications Act of 1996, SDCL 49-31-81, and ARSD 20:10:32:29. Kadoka filed a list of unresolved issues consisting of: (1) Is the reciprocal compensation rate for Local Traffic proposed by Kadoka appropriate pursuant to 47 U.S.C. Section 252(d)(2)? (2) What is the appropriate Percent InterLATA Use factor to be applied to non-local traffic exchanged between the parties? (3) What is the appropriate manner by which the minutes of use of Local Traffic terminated by the parties, one to the other, should be calculated and billed? Kadoka "respectively requests that the Commission grant the following relief: A. Order arbitration of any unresolved issues between [Kadoka] and WWC; B. Issue an order directing [Kadoka] and WWC to submit to the Commission for approval an interconnection agreement reflecting: (i) the agreed-upon language in Exhibit A and (ii) the resolution in this arbitration proceeding of any unresolved issues in accordance with the recommendations made by [Kadoka] herein, at the hearing on such issues and in Exhibit A; C. Order the parties to pay interim compensation for transport and termination of telecommunications traffic from January 1, 2006, (the Effective Date set forth in Exhibit A) to the date on which the Commission approves the parties' executed interconnection agreement in accordance with Section 252(e) of the Act [footnote omitted]; D. Retain jurisdiction of this arbitration until the parties have submitted an executed interconnection agreement for approval by the Commission in accordance with Section 252(e) of the Act; and E. Take such other and further action as it deems necessary and appropriate." In accordance with ARSD 20:10:32:30, a non-petitioning party may respond to the petition for arbitration and provide additional information within 25 days after the commission receives the petition. On May 15, 2006, Golden West filed a Motion for Consolidation of dockets TC06-036 – TC06-042. SDTA filed a Petition for Intervention on June 5, 2006. On June 16, 2006, WWC filed a Request to Use the Office of Hearing Examiners Pursuant to SDCL 1-26-18.3. The Golden West Companies filed a Motion Seeking Order Requiring Payment of Interim Compensation. On July 28, 2006, the Golden West Companies filed an Application for Reconsideration of the July 11, 2006, Decision of the Public Utilities Commission Granting the Request of WWC License, LLC to Use the Office of Hearing Examiners; a Memorandum in Support of Application for Reconsideration of the July 11, 2006, Decision of the Public Utilities Commission Granting the Request of WWC License, LLC to Use the Office of Hearing Examiners; and a Motion to Suspend Procedural Schedule. TC06-040 In The Matter Of The Petition Of Sioux Valley Telephone Company For Arbitration Pursuant To The Telecommunications Act Of 1996 To Resolve Issues Relating To Interconnection Agreements With WWC License L.L.C. (Staff Analyst: Harlan Best, Staff Attorney: Sara Greff) On May 3, 2006, Sioux Valley Telephone Company (Sioux Valley) filed a petition for arbitration of certain unresolved terms and conditions of a proposed Interconnection Agreement between Sioux Valley and WWC License L.L.C. (WWC), pursuant to Section 252 of the Telecommunications Act of 1996, SDCL 49-31-81, and ARSD 20:10:32:29. Sioux Valley filed a list of unresolved issues consisting of: (1) Is the reciprocal compensation rate for Local Traffic proposed by Sioux Valley appropriate pursuant to 47 U.S.C. Section 252(d)(2)? (2) What is the appropriate Percent InterLATA Use factor to be applied to non-local traffic exchanged between the parties? (3) What is the appropriate manner by which the minutes of use of Local Traffic terminated by the parties, one to the other, should be calculated and billed? Sioux Valley "respectively requests that the Commission grant the following relief: A. Order arbitration of any unresolved issues between [Sioux Valley] and WWC; B. Issue an order directing [Sioux Valley] and WWC to submit to the Commission for approval an interconnection agreement reflecting: (i) the agreed-upon language in Exhibit A and (ii) the resolution in this arbitration proceeding of any unresolved issues in accordance with the recommendations made by [Sioux Valley] herein, at the hearing on such issues and in Exhibit A; C. Order the parties to pay interim compensation for transport and termination of telecommunications traffic from January 1, 2006, (the Effective Date set forth in Exhibit A) to the date on which the Commission approves the parties' executed interconnection agreement in accordance with Section 252(e) of the Act [footnote omitted]; D. Retain jurisdiction of this arbitration until the parties have submitted an executed interconnection agreement for approval by the Commission in accordance with Section 252(e) of the Act; and E. Take such other and further action as it deems necessary and appropriate." In accordance with ARSD 20:10:32:30, a non-petitioning party may respond to the petition for arbitration and provide additional information within 25 days after the commission receives the petition. On May 15, 2006, Golden West filed a Motion for Consolidation of dockets TC06-036 – TC06-042. SDTA filed a Petition for Intervention on June 5, 2006. On June 16, 2006, WWC filed a Request to Use the Office of Hearing Examiners Pursuant to SDCL 1-26-18.3. The Golden West Companies filed a Motion Seeking Order Requiring Payment of Interim Compensation. On July 28, 2006, the Golden West Companies filed an Application for Reconsideration of the July 11, 2006, Decision of the Public Utilities Commission Granting the Request of WWC License, LLC to Use the Office of Hearing Examiners; a Memorandum in Support of Application for Reconsideration of the July 11, 2006, Decision of the Public Utilities Commission Granting the Request of WWC License, LLC to Use the Office of Hearing Examiners; and a Motion to Suspend Procedural Schedule. TC06-041 In The Matter Of The Petition Of Union Telephone Company For Arbitration Pursuant To The Telecommunications Act Of 1996 To Resolve Issues Relating To Interconnection Agreements With WWC License L.L.C. (Staff Analyst: Harlan Best, Staff Attorney: Sara Greff) On May 3, 2006, Union Telephone Company (Union) filed a petition for arbitration of certain unresolved terms and conditions of a proposed Interconnection Agreement between Union and WWC License L.L.C. (WWC), pursuant to Section 252 of the Telecommunications Act of 1996, SDCL 49-31-81, and ARSD 20:10:32:29. Union filed a list of unresolved issues consisting of: (1) Is the reciprocal compensation rate for Local Traffic proposed by Union appropriate pursuant to 47 U.S.C. Section 252(d)(2)? (2) What is the appropriate Percent InterLATA Use factor to be applied to non-local traffic exchanged between the parties? (3) What is the appropriate manner by which the minutes of use of Local Traffic terminated by the parties, one to the other, should be calculated and billed? Union "respectively requests that the Commission grant the following relief: A. Order arbitration of any unresolved issues between [Union] and WWC; B. Issue an order directing [Union] and WWC to submit to the Commission for approval an interconnection agreement reflecting: (i) the agreed-upon language in Exhibit A and (ii) the resolution in this arbitration proceeding of any unresolved issues in accordance with the recommendations made by [Union] herein, at the hearing on such issues and in Exhibit A; C. Order the parties to pay interim compensation for transport and termination of telecommunications traffic from January 1, 2006, (the Effective Date set forth in Exhibit A) to the date on which the Commission approves the parties' executed interconnection agreement in accordance with Section 252(e) of the Act [footnote omitted]; D. Retain jurisdiction of this arbitration until the parties have submitted an executed interconnection agreement for approval by the Commission in accordance with Section 252(e) of the Act; and E. Take such other and further action as it deems necessary and appropriate." In accordance with ARSD 20:10:32:30, a non-petitioning party may respond to the petition for arbitration and provide additional information within 25 days after the commission receives the petition. On May 15, 2006, Golden West filed a Motion for Consolidation of dockets TC06-036 – TC06-042. SDTA filed a Petition for Intervention on June 5, 2006. On June 16, 2006, WWC filed a Request to Use the Office of Hearing Examiners Pursuant to SDCL 1-26-18.3. The Golden West Companies filed a Motion Seeking Order Requiring Payment of Interim Compensation. On July 28, 2006, the Golden West Companies filed an Application for Reconsideration of the July 11,2006, Decision of the Public Utilities Commission Granting the Request of WWC License, LLC to Use the Office of Hearing Examiners; a Memorandum in Support of Application for Reconsideration of the July 11,2006, Decision of the Public Utilities Commission Granting the Request of WWC License, LLC to Use the Office of Hearing Examiners; and a Motion to Suspend Procedural Schedule. TC06-042 In The Matter Of The Petition Of Vivian Telephone Company For Arbitration Pursuant To The Telecommunications Act Of 1996 To Resolve Issues Relating To Interconnection Agreements With WWC License L.L.C. (Staff Analyst: Harlan Best, Staff Attorney: Sara Greff) On May 3, 2006, Vivian Telephone Company (Vivian) filed a petition for arbitration of certain unresolved terms and conditions of a proposed Interconnection Agreement between Vivian and WWC License L.L.C. (WWC), pursuant to Section 252 of the Telecommunications Act of 1996, SDCL 49-31-81, and ARSD 20:10:32:29. Vivian filed a list of unresolved issues consisting of: (1) Is the reciprocal compensation rate for Local Traffic proposed by Vivian appropriate pursuant to 47 U.S.C. Section 252(d)(2)? (2) What is the appropriate Percent InterLATA Use factor to be applied to non-local traffic exchanged between the parties? (3) What is the appropriate manner by which the minutes of use of Local Traffic terminated by the parties, one to the other, should be calculated and billed? Vivian "respectively requests that the Commission grant the following relief: A. Order arbitration of any unresolved issues between [Vivian] and WWC; B. Issue an order directing [Vivian] and WWC to submit to the Commission for approval an interconnection agreement reflecting: (i) the agreed-upon language in Exhibit A and (ii) the resolution in this arbitration proceeding of any unresolved issues in accordance with the recommendations made by [Vivian] herein, at the hearing on such issues and in Exhibit A; C. Order the parties to pay interim compensation for transport and termination of telecommunications traffic from January 1, 2006, (the Effective Date set forth in Exhibit A) to the date on which the Commission approves the parties' executed interconnection agreement in accordance with Section 252(e) of the Act [footnote omitted]; D. Retain jurisdiction of this arbitration until the parties have submitted an executed interconnection agreement for approval by the Commission in accordance with Section 252(e) of the Act; and E. Take such other and further action as it deems necessary and appropriate." In accordance with ARSD 20:10:32:30, a non-petitioning party may respond to the petition for arbitration and provide additional information within 25 days after the commission receives the petition. On May 15, 2006, Golden West filed a Motion for Consolidation of dockets TC06-036 – TC06-042. SDTA filed a Petition for Intervention on June 5, 2006. On June 16, 2006, WWC filed a Request to Use the Office of Hearing Examiners Pursuant to SDCL 1-26-18.3. The Golden West Companies filed a Motion Seeking Order Requiring Payment of Interim Compensation. On July 28, 2006, the Golden West Companies filed an Application for Reconsideration of the July 11,2006, Decision of the Public Utilities Commission Granting the Request of WWC License, LLC to Use the Office of Hearing Examiners; a Memorandum in Support of Application for Reconsideration of the July 11,2006, Decision of the Public Utilities Commission Granting the Request of WWC License, LLC to Use the Office of Hearing Examiners; and a Motion to Suspend Procedural Schedule. TODAY, shall the Commission Grant the Motion to Suspend the Procedural Schedule? 2. TC06-053 In the Matter of the Filing by Comtel Telcom Assets LP d/b/a VarTec Telecom and d/b/a Excel Telecommunications 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: Sara Greff) On May 30, 2006, Comtel Telcom Assets LP d/b/a VarTec Telcom and Comtel Telcom Assets LP d/b/a Excel Telecommunications (Comtel) filed a petition in accordance with ARSD 20:10:27:11, asking the Commission to exempt Comtel from filing company specific cost-based intrastate switched access rates. TODAY, shall the Commission Approve the Intrastate Switched Access Tariff? AND, shall the Commission Approve the Exemption from Developing Company Specific Cost-Based Switched Assess Rates? 3. TC06-116 In the Matter of the Application of Midcontinent Communications for an Extension to File its Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer) On July 31, 2006, Midcontinent Communications (Midcontinent) filed a notice of intent to file and a request for extension of the deadline for filing a request for certification of federal universal service support. Midcontinent requests an extension to August 8, 2006. TODAY, shall the Commission Grant the Extension to File the Certification? Announcements: 1. Commissioners and staff will be making a presentation on energy efficiency at the Sioux Empire Fair Front Porch Stage at 2:00 p.m. on August 12, 2006.______________________
Heather K. Forney
Deputy Executive Director
heather.forney@state.sd.us
August 4, 2006