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South Dakota Public Utilities Commission Meeting
January 27, 2009, at 2:30 P.M.
Room 413, Capitol Building
Pierre, South Dakota

NOTE:  If you wish to join this meeting by conference call, please contact the Commission at 605-773-3201 by 12:00 p.m. on January 26, 2009.  Lines are limited and are given out on a first come, first served 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 November 25, and December 9, 2008, and the Ad Hoc Meeting Held on December 16, 2008. (Staff:  Demaris Axthelm) 

Consumer Reports

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

Consumer Complaints

1.      CT08-002        In the Matter of the Complaint filed by Roger L. Hall, Rapid City, South Dakota, against Qwest Corporation Regarding the Cost of Telephone Line Extensions (Staff Analyst: Deb Greg, Staff Attorney: Kara Semmler)

         On April 14, 2008, Roger L. Hall filed a formal complaint against Qwest Corporation.  Roger Hall owns a trailer court in Hill City, SD and wishes to extend telephone lines to new trailers on his property.  Qwest believes Mr. Hall is responsible for the cost thereof and will not install the lines until agreed to by Mr. Hall.  Mr. Hall, however, does not believe he should be required to pay the cost of line extensions to new trailers within the trailer park.  On May 5, 2008, Qwest Corporation filed a response and a Motion to Dismiss the complaint. The Commission voted to deny the Motion to Dismiss at its June 24, 2008, meeting. On November 10, 2008 the Commission signed an Order setting the procedural schedule.  Since that time, the parties have experienced conflicts with the schedule. 

         TODAY, how shall the Commission Proceed Regarding the Procedural Schedule?

Electric

1.      EL08-001        In the Matter of the Application of Xcel Energy for a Permit to Construct 6.5 Miles of 115 Kv Transmission Line and Associated Modifications to the Brookings Substation (Staff Analysts: Bob Knadle/Brian Rounds, Staff Attorney: Karen Cremer)

         On January 31, 2008, Northern States Power Company, a Minnesota Corporation d/b/a Xcel Energy (Xcel), submitted an application for a Construction Permit to build the following:  1. A new 6.5 mile 115 kV transmission line from the Brookings County Substation to the Minnesota/South Dakota border; and 2. Modifications to the Brookings County Substation to accommodate the new 115 kV line.  The application comprises the western portion of the Buffalo Ridge Incremental Generation Outlet project which connects the Brookings County Substation to the Yankee Substation northwest of Lake Benton, Minnesota.  On March 31, 2008, the Brookings County Commission filed an Application for Party Status.  The Application for Party Status was approved at the April 8, 2008, commission meeting.  On July 8, 2008, Xcel filed a Motion to Extend Final Approval Deadline.  The Commission granted Xcel's Motion to Extend Final Approval Deadline. On October 14, 2008, Xcel filed a second Motion to Extend Final Approval Deadline. The Commission granted Xcel's Second Motion to Extend Final Approval Deadline at its October 21, 2008, meeting.  On November 14, 2008, Xcel filed a third Motion to Extend Final Approval Deadline. The Commission granted Xcel's Third Motion to Extend Final Approval Deadline at its November 25, 2008, meeting. On January 21, 2009, the parties filed a Stipulation and a Joint Motion for Approval of Stipulation.


         TODAY, shall the Commission Approve the Joint Motion for Approval of Stipulation? And, shall the Commission Approve the Construction Permit?

2.      EL08-028        In the Matter of the Consideration of the New PURPA Standards. (Staff Analysts: Nathan Solem/Brian Rounds/Jon Thurber Staff Attorney:  Kara Semmler)

         On December 19, 2007, the President signed the Energy Independence and Security Act of 2007 into law. The Act includes four new federal standards to PURPA for state commissions and utilities to consider. They are (1) Integrated Resource Planning, (2) Rate Design Modification to Promote Energy Efficiency Investments, (3) Consideration of Smart Grid Investments, and (4) Smart Grid Information. The Commission must consider these standards and make a specific determination on whether their implementation is appropriate to encourage the conservation of energy supplied by electric utilities, optimal efficiencies of electric utility facilities and resources, and equitable rates for electric consumers. Montana Dakota Utilities Company (MDU) and Otter Tail Corporation d/b/a Otter Tail Power Company (OTP) filed Petitions for Intervention on December 22, 2008. MidAmerican Energy Company (MidAmerican) filed a Petition for Intervention on December 23, 2008. Northern States Power Company (Xcel Energy) filed a Petition for Intervention on December 24, 2008. On December 30, 2008, NorthWestern Corporation d/b/a NorthWestern Energy (NWE) and Black Hills Power, Inc. (BHP) filed Petitions for Intervention.

         TODAY, shall the Commission Grant Intervention to Any Parties That May Have Filed?

3.         EL08-031        In the Matter of the Application by Buffalo Ridge II LLC a Subsidiary of Iberdrola Renewables, Inc., for an Energy Conversion Facility Permit for the Construction of the Buffalo Ridge II Wind Farm and Associated Collection Substation and Electric Interconnection System.  (Staff Analysts: Brian Rounds/Stacy Splittstoesser/Tim Binder, Staff Attorney: Kara Semmler)

         On October 31, 2008, Buffalo Ridge II LLC a subsidiary of Iberdrola Renewables, Inc., (Buffalo Ridge) submitted an application for an Energy Conversion Facility Permit for the Construction of the Buffalo Ridge II Wind Farm and Associated Collection Substation and Electric Interconnection System.  The applicant proposes to construct and operate a wind farm on up to 77 acres dispersed throughout portions of up to 77 sections of land in Brookings and Deuel County as well as a 13-mile long 115 kilovolt overhead transmission line.  The proposed wind farm could have a name plate capacity of up to 306 megawatts. Due to scheduling and notice complications, at the Commission's meeting on November, 25, 2008, Buffalo Ridge and Staff  requested an extension of the public hearing time frame outlined in SDCL 49-41B-16 to hold the public hearing as is required according to SDCL 49-41B-15 on January 5, 2008 and to extend the time for intervention. . The Commission granted the extension request at its November 25, 2008, meeting, setting the hearing date for January 5, 2008 and the intervention deadline on January 16, 2008. The Deuel County Commission filed an Application for Party Status on December 3, 2008. The South Dakota Rural Electric Association (SDREA) filed a Petition for Intervention on December 24, 2008. Sioux Valley Energy and H-D Electric Cooperative filed Petitions for Intervention on December 29, 2008. The Brookings County Commission filed an Application for Party Status on January 13, 2009. On January 15, 2009, Ralph Terrell Spence and Catherine D. Carter filed Applications for Party Status. Buffalo Ridge filed a Motion for Entry of Protective Order on January 16, 2009.

         TODAY, shall the Commission Grant Intervention to Any Parties that May Have Filed? AND, shall the Commission grant the Motion for Entry of Protective Order?

4.      EL08-033        In the Matter of the Filing by NorthWestern Corporation d/b/a NorthWestern Energy for Approval of Tariff Revisions. (Staff Analysts: Terri LaBrie Baker/Dave Jacobson, Staff Attorney: Karen Cremer)

         On December 5, 2008, NorthWestern Energy an application for approval to revise its Sample Forms included in its Electric Tariff.  These proposed changes would become effective January 15, 2009.

         TODAY, shall the Commission Approve the Tariff Revisions?

5.      EL08-034        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: Dave Jacobson/Nathan Solem/Brian Rounds/Stacy Splittstoesser, Staff Attorney: Karen Cremer)

         On December 23, 2008, Basin Electric Power Cooperative, Inc. filed a Notice of Intent to submit an application for a permit for an energy conversion facility. The proposed facility is a 300-MW combined cycle energy conversion facility and associated linear facilities (i.e., electric transmission lines, water pipeline and gas pipeline) near White, South Dakota referred to as the Deer Creek Station Project. The proposed site is located in NE 1/4, Section 25, Township 111N, Range 48 W, Brookings County, approximately 7 miles to the southeast of White, South Dakota, or 20 miles east of Brookings. The energy conversion facility would be located on a greenfield (i.e., undeveloped) site of approximately 40 acres within a 100-acre plant site. One 345-kilovolt (kV) transmission line segment would be constructed to interconnect the energy conversion facility to the existing 115/345-kV Western White Substation immediately adjacent to the site. The Plant site is proposed to be located approximately 12 miles south of the NBPL, thereby ensuring a reliable fuel source is in the vicinity. The natural gas to be used for the combined cycle electricity generation would be sourced from the NBPL via a pipeline estimated to be 10-inch-diameter. On January 14, 2009, Staff filed its recommendation regarding the designation of the affected area and the local review committee. On January 14, 2009, Basin filed to waive the 30-day requirement of designation of the affected area and the local review committee.

         TODAY, shall the Commission Grant the Waiver Request? AND, shall the Commission Designate an Affected Area Pursuant to SDCL 49-41B-6? AND, shall the Commission Designate a Local Review Committee in Accordance with SDCL 49-41B-6?

Natural Gas

1.      NG08-014       In the Matter of the Filing by NorthWestern Corporation d/b/a NorthWestern Energy for Approval of Tariff Revisions. (Staff Analysts: Terri LaBrie Baker/Dave Jacobson, Staff Attorney: Karen Cremer)

         On December 5, 2008, NorthWestern Energy filed an application for approval to revise its Sample Forms included in its Natural Gas Tariff.  These proposed changes would become effective January 15, 2009.

         TODAY, shall the Commission Approve the Tariff Revisions?

Pipeline Safety

1.      PS08-003       In the Matter of the Complaint of Commission Pipeline Safety Staff against NorthWestern Energy Regarding Violations of the Federal Pipeline Safety Act. (Staff Analyst: Nathan Solem, Staff Attorney: Kara Semmler)

         On June 30, 2008 Commission Staff filed a Complaint against NorthWestern regarding potential violations of the Federal Pipeline Safety Act.  On August 11, 2008 NorthWestern Answered Commission Staff's Complaint.  A Joint Settlement Agreement was filed on January 20, 2009.

         TODAY, shall the Commission Approve the Settlement Agreement and Dismiss the Docket?

Telecommunications

1       In the Matter of the Petition for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement in Dockets TC07-111, TC07-112, TC07-113, TC07-114, TC07-115, and TC07-116

         TC07-111        In the Matter of the Petition of Alliance Communications Cooperative, Inc. for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

         TC07-112        In the Matter of the Petition of McCook Cooperative Telephone Company for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

         TC07-113        In the Matter of the Petition of Beresford Municipal Telephone Company for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

         TC07-114        In the Matter of the Petition of Kennebec Telephone Company for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

         TC07-115        In the Matter of the Petition of Santel Communications Cooperative, Inc. for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

         TC07-116        In the Matter of the Petition of West River Cooperative Telephone Company for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

         On October 19, 2007, each of the parties above (Parties) filed a petition for arbitration of certain unresolved terms and conditions of a proposed Interconnection Agreement with Alltel Communications, Inc. (Alltel), pursuant to Section 252 of the Telecommunications Act of 1996, SDCL 49-31-81, and ARSD 20:10:32:29. The Parties filed a list of unresolved issues and requested relief.

         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 December 17, 2007, a Stipulation for Scheduling Order was filed. The Stipulation for Scheduling Order was approved at the January 29, 2008, commission meeting.  On June 10, 2008, a Joint Stipulation for Amended Scheduling Order and Decision Date was filed. A hearing in these matters was held July 29 – 31, 2008.

         TODAY, what is the Commission's Decision?

2.      TC08-105        In the Matter of the Application of Midcontinent Communications for Approval to Provide Local Exchange Service in a Rural Service Area (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Karen Cremer)

         On August 14, 2008, Midcontinent Communications (Midco) filed an application to amend its certificate of authority to provide local exchange service in the Crooks and Baltic exchanges of Alliance Communications (Alliance), a rural telecommunications carrier. In the Crooks and Baltic exchanges Midco will use Alliance resold services for residential telephone services. In addition to providing local exchange services for commercial and residential customers, Midco also will provide intrastate interexchange services for commercial and residential customers and interstate interexchange services for commercial and residential customers.  In the Crooks and Baltic exchanges Midco will use a hybrid fiber coax (HFC) network of its cable plant to provide primary transport for residential and commercial telephone services. This application is a competitive response to the provision of video programming in the geographical area by the incumbent carrier, Alliance.  Section 47 U.S.C. 251(f) (1) (C) is applicable to the application. As such, the exemption provided by 47 U.S.C. 251(f) (1) (A) does not apply to Alliance. Midco has requested interconnection pursuant to 47 U.S.C. Section 251(f)(1)(A) with Alliance, requests confidential treatment of its financial information, and requests a waiver from providing services to the entire Alliance service area to provide local exchange service in the Baltic and Crooks exchanges of Alliance. Intervention was granted to Alliance and SDTA. On October 9, 2008, Midco filed a Motion to Find Rural Exemption Waived. On October 16, 2008, Alliance filed its response to Midco's motion. On November 20, 2008, Midco filed an Amended Motion to Find Rural Exemption Waived or to Terminate Rural Exemption under 47 USC Section 251(f)(1)(B). On December 2, 2008, a Joint Response to Midco's amended motion was filed by Alliance and SDTA. On December 8, 2008, Midcontinent filed a Motion to Compel Discovery. Alliance filed a Response to the Motion to Compel Discovery on December 17, 2008.

         TODAY, shall the Commission Grant the Motion to Find Rural Exemption Waived?  AND, how shall the Commission Proceed?

3.      TC08-110        In the Matter of the Application of Native American Telecom, LLC for a Certificate of Authority to Provide Local Exchange Service on the Crow Creek Indian Reservation. (Staff Analysts: Bob Knadle/Terri LaBrie Baker, Staff Attorney: Karen Cremer)

         On September 9, 2008, Native American Telecom, LLC (NAT) filed an application for a certificate of authority to provide local exchange telecommunications services on the Crow Creek Indian Reservation in the State of South Dakota. Native American Telecom, LLC plans to provide facility based services using advanced wireless technologies and/or fiber optic and other wireline technology.  Petitions for Intervention were filed by Midstate Communications (Midstate), Venture Communications Cooperative (Venture), and the South Dakota Telecommunications Association (SDTA) on September 26, 2008. Intervention was granted to Midstate, Venture, and SDTA at the October 7, 2008, commission meeting. NAT filed a Motion to Dismiss on December 1, 2008. The Interveners filed a Response to the Motion to Dismiss on December 10, 2008.  On January 16, 2009, the Interveners filed a Motion to Compel.  Staff filed a Response to Motion to Dismiss on January 20, 2009.

         TODAY, shall the Commission Dismiss and Close the Docket?

4.      TC08-122        In the Matter of the Petition of Cheyenne River Sioux Tribe Telephone Authority for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, LLC. (Staff Analysts: Roger Oldenkamp/Jon Thurber, Staff Attorney: Karen Cremer)

         On October 21, 2008, Cheyenne River Sioux Tribe Telephone Authority (CRST) filed a petition for arbitration of certain unresolved terms and conditions of a proposed Interconnection and Reciprocal Compensation Agreement (Agreement) between CRST and Alltel Communications, LLC (Alltel), pursuant to Section 252 of the Telecommunications Act of 1996, SDCL 49-31-81, and ARSD 20:10:32:29.  CRST filed a list of unresolved issues and requested relief. On December 4, 2008, the parties filed a Stipulation to Joint Proposed Procedural Schedule.

         TODAY, shall the Commission Approve the Proposed Procedural Schedule?

5.      TC08-137        In the Matter of the Petition of Fiber Ring Revenue-Pooling Association for Approval of Amended Revenue Pooling Documents.  (Staff Analysts: Terri LaBrie Baker/Bob Knadle, Staff Attorney: Karen Cremer)

         On December 3, 2008, the Fiber Ring Revenue-Pooling Association (FRRPA) filed a Petition to seek Commission approval of the amended SONET Ring Provider Agreements and the Ring User Local Exchange Company Agreements that will become effective on January 1, 2009.  The existing agreements expire at the end of 2008.

         TODAY, shall the Commission Approve the Amended Revenue Pooling Documents?

6.      TC08-140           In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and Verizon Wireless f/k/a CommNet Cellular, Inc. (Staff Attorney: Kara Semmler)

         On December 19, 2008, the Commission received a filing for approval of an Amendment to an Interconnection Agreement between Qwest Corporation and Verizon Wireless f/k/a CommNet Cellular, Inc. 

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

7.      TC08-141        In the Matter of the Application of 321 Communications, Inc. for a Certificate of Authority to Provide Local Exchange Services in South Dakota. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Karen Cremer)

         On December 19, 2008, 321 Communications, Inc. filed its application for a Certificate of Authority to provide local exchange service throughout the State of South Dakota in the areas served by any LECs in South Dakota that are not eligible for a small or rural carrier exemption pursuant to Section 251(f)(1) of the Federal Act.

         TODAY, shall the Commission Grant a Certificate of Authority to 321 Communications, Inc.?

8.      TC09-001        In the Matter of the Filing by AT&T Communications of the Midwest, Inc. for Approval of Revisions to its Access Services and Network Interconnection Services Tariff. (Staff Analyst: Jon Thurber, Staff Attorney: Karen Cremer)

         On January 9, 2009, AT&T Communications of the Midwest, Inc. (AT&T) filed for Commission approval revisions to the company's Access Services and Network Interconnection Services Tariff.  The revisions add clarifying language regarding billing and collection disputes.  The company has requested an effective date of January 10, 2009, for the tariff changes. AT&T filed a request to withdraw its filing on January 16, 2009.

         TODAY, shall the Commission Grant the Withdrawal Request and Close the Docket?

Announcements

  1. The next regularly scheduled Commission meeting will be held February 10, 2009, at 2:30 p.m. in Room 413 of the State Capitol Building, Pierre, SD.
  2. Commission meetings are scheduled for February 24 and March 10, 2009.
  3. An open house for Legislators will be held in the Commission offices on Wednesday, January 28, 2009, from 7:30 a.m. to 11:00 a.m.
  4. Commissioners and Staff will be attending the National Association of Regulatory Utility Commissioners (NARUC) Winter Meetings in Washington, DC, February 15 – 18, 2009.
  5. The Commission offices will be closed Monday, February 16, 2009, in observance of Presidents' Day.
  6. A hearing in Dockets TC08-142 through TC08-153 will be held in the Cactus Conference Room February 24, 2009, beginning at 9:30 a.m.
  7. A hearing in docket TC08-122 will be held April 8 – April 9, 2009, in Room 413, State Capitol Building, Pierre, SD.  The hearing will begin at 9:30 a.m. on April 8.
  8.  A hearing in docket EL08-030 will be held April 14 – April 15, 2009, in Room 413, State Capitol Building, Pierre, SD.  The hearing will begin at 9:30 a.m. on April 14.

/S/ Heather K. Forney__
Heather K. Forney
Deputy Executive Director
heather.forney@state.sd.us
January 21, 2009