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South Dakota Public Utilities Commission Meeting
January 5, 2010, at 9:30 A.M. CST
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 5:00 p.m. CST on January 4, 2010. 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 link 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 link 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
- Approval of the Minutes of the Commission Meetings held on September 22, 2009; October 6, 2009; October 20, 2009; and November 10, 2009. (Staff: Demaris Axthelm)
Consumer Reports
1. Status Report on Consumer Utility Inquiries and Complaints Received by the Commission. (Consumer Affairs: Deb Gregg)
Electric
On April 18, 2007, MidAmerican Energy filed an application for Commission consideration of its Energy Efficiency Plan (Plan). The Plan contains programs designed for MidAmerican's gas and electric customers in South Dakota, phased in over a three-year period. For each program, MidAmerican has included design, implementation, costs, projected energy savings, and cost-effectiveness data. The Plan also includes a phase-in of particular programs over a three-year period commencing in January 2008, annual reporting to the Commission and a cost recovery mechanism. On February 25, 2009, MidAmerican submitted a Revised Energy Efficiency Plan. At is March 24, 2009, meeting the Commission approved MidAmerican's revised Energy Efficiency Plan and approved its revised tariff sheets with an effective date of May 1, 2009. On April 6, 2009, MidAmerican filed revised tariff sheets. At its April 21, 2009, meeting the Commission approved the revised tariffs with less than 30 days notice to become effective May 1, 2009. On November 20, 2009, MidAmerican filed a request to increase the plan budget for 2009 by a total of $48,000 and plan budget for 2010 by a total of $38,900.
TODAY, shall the Commission approve MidAmerican's request for approval of the revised cost budgets for its energy efficiency cost recovery mechanism?
On June 30, 2009, Northern States Power Company d/b/a Xcel Energy (Xcel) filed an application for approval to increase rates for electric service to customers in its service territory by approximately $18.6 million annually or approximately 12.7% based on Xcel's 2008 test year. Of this increase in base rates, approximately $2.9 million is currently being collected through Xcel's Transmission Cost Recovery Rider and Environmental Cost Recovery Rider, which Xcel is proposing to subsequently recover in base rates. Consequently, the annual increase in overall retail rates is approximately $15.7 million or approximately 10.65%. The company states a typical residential electric customer using 750 kWh per month would see a net increase of 12.4 percent, or $8.55 per month. The proposed rates may potentially affect approximately 81,000 customers in Xcel's service territory. At its July 14, 2009, meeting the Commission approved an Order For and Notice of Procedural Schedule and Hearing. At its October 20, 2009, meeting the Commission approved the further suspension of the proposed schedule of rates to be further suspended for 60 days beyond October 28, 2009, pursuant to SDCL 49-34A-14. On December 22, 2009, a Joint Motion for Approval of Settlement Stipulation and Settlement Stipulation were filed by Xcel and Staff and a Staff Memorandum was also filed.
TODAY, shall the Commission grant the Joint Motion for Approval of the Settlement Stipulation and approve the rates, terms and conditions stipulated therein? OR how shall the Commission proceed?
On September 30, 2009, Black Hills Power, Inc. (BHP) filed an application for approval to increase rates for electric service to customers in its South Dakota service territory. BHP states that it proposes to increase rates by approximately $32 million annually or approximately 26.6% based on BHP's test year ending June 30, 2009. The company states a typical residential electric customer using 600 kWh per month would see a net increase of $17.99 per month. The proposed rates may potentially affect approximately 64,100 customers in BHP's service territory. At its October 20, 2009, meeting, the Commission suspended the imposition of the tariff for 180 days beyond September 30, 2009, and assessed a filing fee for actual expenses not to exceed $100,000. On November 5, 2009, the Commission received a Petition to Intervene from Countertops, Inc., d/b/a Dakota Panel South Dakota, GCC Dacotah, Inc., Rushmore Forest Products, Inc., Sanford Underground Laboratory and Spearfish Forest Products, Inc. (collectively, Black Hills Industrial Intervenors). On November 19, 2009, the Commission received a Petition to Intervene from Lilias Jarding, Bobbie Handley, Carla Kock, and the South Dakota Peace and Justice Center (collectively Residential Consumers Coalition). On November 20, 2009, the Commission received a Petition to Intervene and join with Black Hills Industrial Intervenors from Rapid City Regional Hospital, Inc. (Regional Hospital). At its November 24, 2009, meeting the Commission granted intervention to all petitioning parties. On December 21, 2009, Chesapeake Regulatory Consultants, Inc. submitted a Report and Consulting Services Proposal.
TODAY, shall the Commission authorize the Executive Director to hire consultants and enter into contracts with the consultants?
Grain Buyer
1. GD09-001 In the Matter of the Request of Glacial Lakes Corn Processors for Approval of a Waiver of ARSD 20:10:12:15. (Staff Analyst: Jim Mehlhaff, Staff Attorney: Kara Semmler)
After completing the financial review of Glacial Lakes Corn Processors (GLCP), annual license application for 2009-2010, Grain Warehouse Staff determined that GLCP's financial statements for the year ending August 31, 2008, did not meet the criteria for licensing as a grain buyer under ARSD 20:10:12:15. On June 3, 2009, GLCP filed a request for waiver of the working capital requirement of ARSD 20:10:12:15. No petitions to intervene were filed. At it June 23, 2009, meeting the Commission approved a waiver of ARSD 20:10:12:15 and issued a grain buyer's license to GLCP subject to conditions. On December 23, 2009, Grain Warehouse Staff filed a letter from GLCP requesting the issuance of a class A grain buyers license without conditions based upon its financial statements for the fiscal year ended August 31, 2009, and Staff's recommendation regarding the request.
TODAY, shall the Commission issue a class-A grain buyer license to GLCP without condition?
Rule Making
On December 14, 2009, Staff filed a request that the Commission open a rule making docket for the purposes of clarifying what utilities shall report in accordance with South Dakota's Renewable, Recycled, and Conserved Energy Objective. In their request, Staff also included a list of their suggestions regarding the reporting requirement.
TODAY, shall the Commission open a rulemaking docket? If so, how shall the Commission proceed?
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 TC07-112, TC07-114, TC07-115, and TC07-116
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. The Commission issued their decision at its January 27, 2009, commission meeting. On March 30, 2009, Alltel filed a Brief and Petition for Reconsideration. On April 14, 2009, the Petitioners filed a Letter and Opposition to the Petition for Reconsideration. Alltel's Petition for Reconsideration was denied at the May 19, 2009, commission meeting. On June 9, 2009, Alltel filed a Brief and a Motion to Compel in Dockets TC07-112, TC07-114, TC07-115, and TC07-116. On June 12, 2009, the parties filed a Stipulation for Amended Scheduling Order in Dockets TC07-112, TC07-114, TC07-115, and TC07-116. The Stipulation for Amended Scheduling Order was approved at the June 23, 2009, commission meeting. On July 13, 2009, Petitioners' Response to Alltel's Motion to Compel was filed. On July 28, 2009, Alltel's Motion to Submit Admitted Facts into the Record was filed. On July 31, 2009, Petitioners' Objection and Opposition to Alltel Communications, LLC's Motion to Submit Admitted Facts into the Record was filed. On August 20, 2009, Joint Stipulation for Proposed Amended Scheduling Order and Decision Date was filed. On September 18, 2009, Alltel's Motion to Reconsider Inclusion of Getting Started Costs and Non-Sensitive Switch Costs as Part of the Reciprocal Compensation Charges was filed. On October 9, 2009, Petitioners' Opposition to Alltel Communications, Inc.'s Petition for Reconsideration (Switching Costs) was filed. On November 3, 2009, Joint Stipulation for Proposed Amended Decision Date was filed.
TODAY, what is the Commission's decision?
2. In the Matter of the Failure of Certain Telecommunications Companies to Timely File the Gross Receipts Tax. (Finance Manager: Cindy Kemnitz)
The following companies have failed to timely file their gross receipts tax as required by SDCL 49-1A:
Wireless Companies that have filed but not paid:
Ztar Mobile, Inc.
Long Distance Providers that have filed, but not paid:
Global Capcity Group, Inc.
Network US, Inc
Norstan Network Services, Inc. NNSI
Phone 1, Inc.
Reduced Rate Long Distance, LLC
Talk America, Inc.
Telecare, Inc
NetLojix Telecom, Inc.
Long Distance Providers that have not filed or paid:
Hawk Relay, LLC
New Century Telecom, Inc.
VCI Company d/b/a Vilaire
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?
3. Request to Open Docket to Investigate Price Regulation for Switched Access Services Provided by Competitive Local Exchange Companies
Pursuant to SDCL 49-31-4.1, Chairman Johnson requests that the Commission open a docket to consider whether pricing regulation is appropriate for switched access services provided by competitive local exchange companies.
TODAY, shall the Commission open a docket to investigate whether price regulation is appropriate for switched access services provided by competitive local exchange companies? If so, shall the Commission set a procedural schedule?
On September 21, 2009, Lattice Incorporated filed an application for a certificate of authority to provide interexchange and alternative operator services in South Dakota. Lattice proposed to offer automated operator-assisted collect and prepaid calling services to inmates and other incarcerated persons in confinement facilities within the State of South Dakota. On October 2, 2009, Lattice filed a letter and stated that the company will not offer prepaid service, collect deposits or advance payments. At its October 20, 2009, meeting, the Commission granted the certificate of authority subject to the condition that Lattice not offer any prepaid services (including prepaid calling cards) and not accept or require any deposits or advance payments without prior approval of the Commission and granted a waiver of ARSD 20:10:24:05(3), (5) and (6). On November 17, 2009, Lattice Incorporated requested to amend its Certificate of Authority to offer prepaid services.
TODAY, shall the Commission approve the application of Lattice Incorporated to remove prepaid restrictions from its prior granted Certificate of Authority?
5. TC09-095 In the Matter of the Filing by Bandwidth.com CLEC, LLC for Approval of its Intrastate Access Services Tariff. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Kara Semmler)
On October 14, 2009, Bandwidth.com CLEC, LLC requested approval of its Intrastate Switched Access Services Tariff. On December 15, 2009, Bandwidth.com CLEC, LLC requested that the Intrastate Access Services Tariff be withdrawn.
TODAY, shall the Commission grant the request to withdraw without prejudice?
On December 9, 2009, the Commission received a filing for approval of a Wireless Type 2 Interim Agreement between Qwest Corporation and T-Mobile USA, Inc.
TODAY, shall the Commission approve the interconnection agreement?
Announcements
- The Public Utilities Commission offices will be closed Friday, January 1, 2010, in observance of New Years Day.
- Commissioners will meet telephonically with representatives of ESPY Energy Solutions, LLC on January 6, 2010, at 10:00 a.m. (CST) to discuss company updates.
- Commissioners and Staff will meet with representatives of Montana-Dakota Utilities Co. on January 6, 2010, at 1:30 p.m. (CST) in Room 413, State Capitol Building, Pierre, S.D., to discuss company updates (rescheduled from December 8, 2009).
- Commissioners and Staff will attend a meeting of the Mid-America Regulatory Conference January 14-16, 2010, in San Antonio, Texas.
- The Public Utilities Commission offices will be closed Monday, January 18, 2010, in observance of Martin Luther King, Jr. Day.
- The next regularly scheduled commission meeting will be held January 19, 2010, at 2:30 p.m. in Room 412, State Capitol Building, Pierre, S.D.
- Commissioners and staff will meet with representatives of the South Dakota One Call Board on January 20, 2010, at 5:30 p.m. (CST) at View 34, Pierre, S.D., to discuss One Call updates.
- An Open House for Legislators will be held in the Commission offices in the State Capitol Building on January 27, 2010, from 7:30 to 11:00 a.m.
- Commission meetings are scheduled for February 9 and February 23, 2010.
/S/ Cindy Kemnitz .
Cindy Kemnitz
Finance Manager
puc@state.sd.us
December 29, 2009
