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South Dakota Public Utilities Commission Meeting

Tuesday, December 19, 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 December 18, 2006. Lines are limited and are given out on first come/first serve basis, subject to possible reassignment to accommodate persons who must appear in a proceeding. Ultimately, if you wish to participate in the Commission Meeting and a line is not available you may have to appear in person.

NOTE: To listen to the Commission Meeting live please go to the PUC's Web site www.puc.sd.gov and click on the LIVE button on the home page. The Commission requests that persons who will only be listening to proceedings and not actively appearing in a case listen via the Web cast to free phone lines for those who have to appear. The Commission meetings are archived on the PUC's Web site under the Commission Actions tab and then click on the LISTEN button on the page.

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 COMMISSION MEETING

Administration

1. Approval of the Minutes of the Commission Meetings Held on September 12, September 26, October 19, October 31, and November 20, 2006, and Ad Hoc Meetings Held October 5, October 10, and November 14, 2006. (Staff: Demaris Axthelm)

Consumer Reports

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

Complaints

1. CE06-003 In the Matter of the Complaint filed by Global Polymer Industries, Inc., Arlington, South Dakota, against the City of Arlington Regarding Electrical Service. (Staff Analysts: Deb Gregg/Bob Knadle, Staff Attorney: Kara Van Bockern)

On June 7, 2006, Global Polymer Industries, Inc. (Polymer) filed a complaint against the City of Arlington regarding inadequate electrical service pursuant to SDCL 49-34A-58. Polymer is requesting that the Commission allow Polymer to contract with another electric utility for its retail electric service. The South Dakota Municipal Electric Association (SDMEA) filed a Petition to Intervene on July 12, 2006, which was denied at the August 8, 2006, commission meeting. Polymer and the City of Arlington filed a Stipulation on December 6, 2006.

TODAY, shall the Commission Approve the Stipulation and Dismiss and Close the Docket?

2. In the Matter of the Complaints Filed Against Dish Network Regarding a Do Not Call Complaint in Dockets CT06-002, CT06-003, CT06-004, CT06-005, and CT06-006

CT06-002 In the Matter of the Complaint filed by F. Ross Shuff, Yankton, South Dakota, against Dish Network Regarding a Do Not Call Complaint (Staff Analyst: Deb Gregg, Staff Attorney: Kara Van Bockern)

On October 11, 2006, F. Ross Schuff filed a formal complaint against DISH Network. Complainant claims that he received telephone solicitation phone calls from DISH Network despite the fact his number is on the South Dakota Do Not Call list. Complainant seeks to have the Public Utilities Commission help him resolve this matter by enforcing the Do Not Call rules, including but not limited to the imposition of any fine or penalty if informal resolution cannot be reached. Mr. Schuff filed a letter on December 6, 2006, voluntarily withdrawing his complaint.

CT06-003 In the Matter of the Complaint filed by Merle Flottmeyer, Watertown, South Dakota, against Dish Network Regarding a Do Not Call Complaint (Staff Analyst: Deb Gregg, Staff Attorney: Kara Van Bockern)

On October 13, 2006, Merle Flottmeyer filed a formal complaint against DISH Network. Complainant claims the Flottmeyer residence received telephone solicitation phone calls from DISH Network despite the fact the phone number is on the South Dakota Do Not Call list. Complainant seeks to have the Public Utilities Commission help resolve this matter by enforcing the Do Not Call rules, including but not limited to the imposition of any fine or penalty if informal resolution cannot be reached. Mr. Flottmeyer filed a letter on December 6, 2006, voluntarily withdrawing his complaint.

CT06-004 In the Matter of the Complaint filed by Theodore J. Bozanich, Rapid City, South Dakota, against Dish Network Regarding a Do Not Call Complaint (Staff Analyst: Deb Gregg, Staff Attorney: Kara Van Bockern)

On October 13, 2006, Theodore Bozanich filed a formal complaint against DISH Network. Complainant claims his residence received telephone solicitation phone calls from DISH Network despite the fact the phone number is on the South Dakota Do Not Call list. Complainant seeks to have the Public Utilities Commission help resolve this matter by enforcing the Do Not Call rules, including but not limited to the imposition of any fine or penalty if informal resolution cannot be reached. Mr. Bozanich filed a letter on December 6, 2006, voluntarily withdrawing his complaint.

CT06-005 In the Matter of the Complaint filed by Charles W. Anderson, Jr., Agar, South Dakota, against Dish Network Regarding a Do Not Call Complaint (Staff Analyst: Deb Gregg, Staff Attorney: Kara Van Bockern)

On October 18, 2006, Charles W. Anderson, Jr., filed a formal complaint against DISH Network. Complainant claims the Anderson residence received telephone solicitation phone calls from DISH Network despite the fact the phone number is on the South Dakota Do Not Call list. Complainant seeks to have the Public Utilities Commission help resolve this matter by enforcing the Do Not Call rules, including but not limited to the imposition of any fine or penalty if informal resolution cannot be reached. On December 6, 2006, Mr. Anderson filed a letter voluntarily withdrawing his complaint.

CT06-006 In the Matter of the Complaint filed by Carole V. Ryden on behalf of J.Tanner Ensenbach, Sioux Falls, SD, against Dish Network Regarding a Do Not Call Complaint. (Staff Analyst: Deb Gregg, Staff Attorney: Kara Van Bockern)

On October 23, 2006, Carole V. Ryden filed a formal complaint on behalf of Tanner Ensenbach against DISH Network. Complainant claims the Ensenbach residence received telephone solicitation phone calls from DISH Network despite the fact the phone number is on the South Dakota Do Not Call list. Complainant seeks to have the Public Utilities Commission help resolve this matter by enforcing the Do Not Call rules, including but not limited to the imposition of any fine or penalty if information resolution cannot be reached. Mr. Ryden filed a letter on December 6, 2006, voluntarily withdrawing his complaint.

TODAY, shall the Commission Dismiss the Complaints and Close the Above Listed Dockets?

Electric

1. EL05-023 In the Matter of the Application of Xcel Energy for a Construction Permit to Build 9.6 Miles of the Split Rock to Lakefield Junction 345 kV Transmission Line and Add Facilities to the Split Rock Substation. (Staff Analysts: Bob Knadle/Martin Bettmann, Staff Attorney: Karen Cremer)

On August 26, 2005, Xcel Energy (Xcel) submitted an application for a Construction Permit to build 9.6 miles of 345 kV Transmission Line from Split Rock to Lakefield Junction and add Facilities to the Split Rock Substation. A new 345 kilovolt line from the Split Rock Substation located west of Brandon, South Dakota to the Minnesota line is proposed to be constructed. The line will be approximately 9.6 miles in length and comprise the western portion of an 86-mile 345 kV transmission line between Split Rock Substation west of Brandon, South Dakota to the Lakefield Junction Substation east of Lakefield, Minnesota. Improvements to the Split Rock Substation will be constructed to accommodate the new 345 kV interconnection. A Joint Stipulation between Xcel and Commission Staff was filed on June 6, 2006. On August 15, 2006, Xcel filed a letter with the Commission asking for a waiver of the one year deadline pursuant to SDCL 49-41B-24, and for an additional period of time before the Commission's Final Decision. The Commission granted the waiver and additional time at its August 23, 2006, meeting. On December 11, 2006, Xcel filed a Motion to Extend Final Approval Deadline.

TODAY, shall the Commission Approve the Motion to Extend Final Approval Deadline?

2. EL06-022 In the Matter of the Petition for Electrical Service by Millennium Ethanol, LLC to have Southeastern Electric Cooperative, Inc. Assigned as its Temporary Electric Provider in the Service Area of Xcel Energy, Inc. (Staff Analysts: Martin Bettmann/Nathan Solem, Staff Attorney: Karen Cremer)

On July 24, 2006, Millennium Ethanol, LLC filed an petition requesting that Southeastern Electric Cooperative be allowed to provide temporary electric service to Millennium's ethanol plant location in Section 31, Township 100 North, Range 54 West in Turner County, South Dakota in Xcel's service territory as Xcel is allegedly unable to meet Millennium's timing requirements for temporary electric service. A petition for Southeastern to provide permanent electric service under the provisions of SDCL 49-34A-56 was concurrently filed in Docket EL06-023. A settlement stipulation was reached between the parties.

TODAY, shall the Commission Approve the Settlement Stipulation?

3. EL06-023 In the Matter of the Petition for Electrical Service by Millennium Ethanol, LLC to have Southeastern Electric Cooperative, Inc. Assigned as its Electric Provider in the Service Area of Xcel Energy, Inc. (Staff Analysts: Martin Bettmann/Nathan Solem, Staff Attorney: Karen Cremer)

On July 24, 2006, Millennium Ethanol, LLC filed an petition requesting that Southeastern Electric Cooperative be allowed to provide permanent electric service to Millennium's ethanol plant location in Section 31, Township 100 North, Range 54 West in Turner County, South Dakota in Xcel's service territory. The petition states that Millennium believes Southeastern can furnish electric service to meet the customer's needs consistent with the factors of SDCL49-34A-56 and that the customer has a strong preference to be served by Southeastern. A petition for Southeastern to provide temporary electric service was concurrently filed in Docket EL06-022. A settlement stipulation was reached between the parties.

TODAY, shall the Commission Approve the Settlement Stipulation?

4. EL06-025 In the Matter of the Filing by Basin Electric Power Cooperative, Inc. Regarding its Notification of Intent to Apply for a Permit for an Energy Conversion Facility. (Staff Analysts: Martin Bettmann/Nathan Solem, Staff Attorney: Kara Van Bockern)

On September 22, 2006, Basin Electric Power Cooperative (Basin) filed a letter of intent to construct an additional 100 MW gas turbine at an existing site five miles south of Groton. The construction phase of the proposed project will take 12 to 15 months. The Commission established the local review committee and designated the affected area at its October 19, 2006, meeting. On December 6, 2006, Basin filed a letter requesting that the Commission exercise its authority under SDCL § 49-41B-23 to waive a portion of the six-month waiting period imposed by § 49-41B-5 between the filing of a notification of intent and the submission of the application for a permit to construct a generation facility under SDCL Chapter 49-41B.

TODAY, shall the Commission Grant the Waiver as Requested by Basin Electric?

Natural Gas

1. NG06-013 In the Matter of the Filing by Northwestern Corporation D/B/A Northwestern Energy for Approval to Purchase the Natural Gas System of the City of Freeman and the AMPI Transmission Line. (Staff Analysts: Martin Bettmann/Dave Jacobson/Bob Knadle, Staff Attorney: Karen Cremer)

Application by NorthWestern Corporation to purchase the Municipal Natural Gas System of the City of Freeman pending voter approval. NorthWestern proposes to adopt the current billing rates of the Freeman Natural Gas System. NorthWestern is also proposing to purchase the transmission pipeline owned by Associated Milk Producers Incorporated which transports gas to the Freeman system. The AMPI pipeline and Freeman gas system serve approximately 350 customers.

TODAY, shall the Commission Approve the Purchase?

Telecommunications

1. TC03-193 In the Matter of the Filing by RCC Minnesota, Inc. and Wireless Alliance, L.L.C. d/b/a Unicel for Designation as an Eligible Telecommunications Carrier. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

On November 18, 2003, RCC Minnesota, Inc. and Wireless Alliance, L.L.C. d/b/a Unicel (collectively, RCC) filed a petition to be designated as an eligible telecommunications carrier (ETC) for purposes of qualifying to obtain federal universal service support in the areas of certain non-rural and rural telephone companies. RCC Minnesota, Inc. is authorized by the Federal Communications Commission (FCC) as the Cellular Radiotelephone Service provider in the South Dakota Rural Service Area 4 - Marshall, South Dakota. Wireless Alliance, L.L.C is authorized by the FCC as the Personal Communications Service carrier in the partitioned area of the Minneapolis-St. Paul MTA012 which encompasses Minnehaha and Lincoln Counties, South Dakota, in the Sioux Falls Basic Trading Area (BTA 422). RCC also requested the Commission to redefine the following Rural LEC Service Areas: Alliance Communications Cooperative, Interstate Telecommunications Cooperative, Inc., James Valley Cooperative Telephone Company, PrairieWave Community Telephone, Inc., and Sioux Valley Telephone Company. Oral arguments were heard at the April 12, 2005, Commission Meeting. The Commission designated RCC as an Eligible Telecommunications Carrier at its May 10, 2005, meeting. On December 6, 2006, RCC filed a Motion to modify their ETC Designation Order to have its annual compliance filing and its ETC annual certification filings coincide on the date of the annual certification.

TODAY, shall the Commission Approve the Requested Modifications?

2. TC05-016 In the Matter of the Filing by PrairieWave Telecommunications, Inc. for Designation as an Eligible Telecommunications Carrier. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

On January 24, 2005, PrairieWave Telecommunications, Inc. (PrairieWave) filed a petition for Designation as an Eligible Telecommunications Carrier (ETC) for the rural, contiguous wire centers of Centerville and Viborg. PrairieWave offers the services supported by the federal Universal Service Fund using entirely its own fiber optic, copper and coaxial cable facilities, and does and will continue to advertise these services and the prices for the services using media of general distribution. PrairieWave seeks to have the combined wire centers of Centerville and Viborg designated as a service area for ETC purposes. Redefinition of Fort Randall Telephone Company's service area requires the approval of both this Commission and the FCC. PrairieWave has also filed information supporting an annual certification letter to the FCC and to USAC that all high-cost support will be used only for the provision, maintenance, and upgrading of facilities and services for which the support is intended. On February 8, 2005, South Dakota Telecommunications Association (SDTA) filed a Petition to Intervene and on February 11, 2005, Fort Randall Telephone Company (Fort Randall) filed a Petition for Intervention. Intervention was granted to SDTA and Fort Randall at the March 8, 2005, commission meeting. On May 18, 2006, a Stipulation of Facts was filed by the Parties. PrairieWave and Fort Randall filed their Initial Briefs on June 20, 2006 and their Responsive Briefs on July 6, 2006. SDTA filed it brief on July 6, 2006. On September 8, 2006, a Supplemental Stipulation of Facts was filed. On November 29, 2006, Staff filed a responsive brief to the Parties' previously filed briefs.

TODAY, shall the Commission Hear Oral Arguments?

3. TC06-035 In The Matter Of the Application for Midstate Telecom, Inc. For Approval to Offer a Different Local Calling Area (Staff Analysts: Keith Senger/Bob Knadle, Staff Attorney: Karen Cremer)

On May 2, 2006, Midstate Telecom, Inc. (MTI), a registered CLEC providing facilities based competitive local exchange services in the Chamberlain/Oacoma exchange, submitted a petition to the Commission pursuant to ARSD 20:10:32:11, requesting approval to offer a different local calling area than that offered by the incumbent local exchange carrier. On May 26, 2006, Qwest filed a Petition for Intervention. The Commission granted intervention to Qwest at its June 13, 2006, meeting. Staff received notice that Qwest will be withdrawing from the docket.

TODAY, shall the Commission Approve the Withdrawal of Qwest's Intervention? AND, shall the Commission Approve MTI's Request for a Different Local Calling Area Than that Offered by the Incumbent Local Exchange Carrier?

4. TC06-047 In the Matter of the Application of Aventure Communication Technology, L.L.C. for a Certificate of Authority to Provide Local Exchange Services in South Dakota. (Staff Analysts: Harlan Best, Staff Attorney: Kara Van Bockern)

On May 16, 2006, Aventure Communication Technology, L.L.C. ("Aventure") filed an application seeking a Certificate of Authority to provide competitive full-service facilities-based local exchange services to customers in the state of South Dakota. Aventure proposes to provide these services with wireless local loop technology using licensed spectrum, as well as transport from the soft-switch located in Sioux City, Iowa. Aventure initially intends to offer services in the following service territories: 1) Qwest Corporation, Elk Point, Yankton, and Vermillion exchanges; 2) Jefferson Telephone Company d/b/a Long Lines, Jefferson exchange; 3) PrairieWave Community Telephone, Inc., Alsen, Gayville, Irene and Wakonda exchanges, and; 4) Alliance Communications Cooperative, Inc, Alcester exchange. On May 30, 2006, South Dakota Telecommunications Association filed a Petition for Intervention. On June 2, 2006, Alliance Communications Cooperative, Inc. filed a Petition for Intervention. Jefferson Telephone Company d/b/a Long Lines and Vivian Telephone Company d/b/a Golden West Telecommunications filed Petitions for Intervention on June 5, 2006. PrairieWave Communications filed a Petition for Intervention on June 7, 2006. An amended application and tariff pages were filed by Aventure on November 20, 2006.

TODAY, shall the Commission Grant a Certificate of Authority to Aventure Communication Technology, L.L.C.?

5. TC06-093 In the Matter of the Filing for Approval of a Confidential Settlement Agreement between Qwest Corporation and Black Hills Fibercom, LLC (Staff Attorney: Kara Van Bockern)

On July 24, 2006 the Commission received a filing for the approval of a Confidential Settlement Agreement between Qwest Corporation and Black Hills Fibercom, LLC. According to the parties, the filing contains "redacted version of the Agreement which contained the ongoing terms and conditions under Section 251 of the Act for review and approval pursuant to the Section 252 Act."

TODAY, shall the Commission Approve the Agreement?

6. In the Matter of the Failure of Certain Telecommunications Companies to Timely File the Gross Receipts Tax (Deputy Executive Director: Heather K. Forney)

The following companies have failed to timely file their gross receipts tax as required by SDCL 49-1A:

Wireless Companies that have not filed:

SkyTel Communications, Inc.

Local Exchange Providers that have not filed or paid:

CI2, Inc.

Local Exchange and Long Distance Providers that have not filed or paid:

Acceris Communications Corp.

Long Distance Providers that have filed, but not paid:

BAK Communications, LLC
Exergy Group, LLC
Gates Communications, Inc.
Global Communications Consulting GroupInmark, Inc. – DBA: Preferred Billing

Long Distance Providers that have filed, but not paid:

ACXX Communications, LLC
Advanced Tel, Inc. d/b/a ATI
National Access Long Distance, Inc.
Telenational Communications, Inc.
Telliss, LLC
WDT World Discount Telecommunications Co.

TODAY, shall the Commission Issue an Order to Show Cause as to Why the Commission Should Not Fine, or Suspend or Revoke the Certificates of Authority of Each of These Companies for Failure to Pay the Requisite Gross Receipts Tax?

Announcements

1. The next regularly scheduled Commission meeting will be held January 2, 2007, at 1:30 p.m. in Room 468, State Capitol Building, Pierre, SD.

2. Commission meetings are scheduled for January 23 and February 13, 2007.

3. The Commission offices will be closed Monday, December 25, 2006, in observance of Christmas.

4. The Commission offices will be closed Monday, January 1, 2007, in observance of New Years.

____________________

Heather K. Forney

Deputy Executive Director

heather.forney@state.sd.us

December 12, 2006