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South Dakota Public Utilities Commission Meeting
February 18, 2010, at 2:30 P.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 February 17, 2010 before meeting.  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 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.


Hydrocarbon Pipeline

1.      HP09-001        In the Matter of the Application by TransCanada Keystone Pipeline, LP for a Permit under the South Dakota Energy Conversion and Transmission Facility Act to Construct the Keystone XL Project. (Staff Analysts: Bob Knadle, Nathan Solem, Stacy Splittstoesser, Tim Binder, Staff Attorney: Kara Semmler)

         On March 12, 2009, TransCanada Keystone Pipeline, LP, (Keystone) filed a siting permit application for the South Dakota portion of the proposed Keystone XL Project (Project). The Project will transport crude oil starting in Hardisty, Alberta, Canada and ending in Port Arthur and East Houston areas of Texas. The proposed 36 inch diameter pipeline will have a nominal capacity of 900,000 barrels of oil per day (bpd). The proposed route will enter South Dakota at the Montana/South Dakota border in Harding County. It will extend in a southeasterly direction through portions of Harding, Butte, Perkins, Meade, Pennington, Haakon, Jones, Lyman, and Tripp counties. It will exit the state at the South Dakota/Nebraska border in Tripp County. The length of pipeline through South Dakota is approximately 313 miles. The Project also includes seven pump stations in South Dakota located in Harding (2), Meade, Haakon, Jones, and Tripp (2) counties along with 16 mainline valves.  Mainline valves are proposed at each pump station and along the right-of-way with spacing intervals based upon the location of the pump stations, water bodies greater than 100 feet in width, high consequence areas and other considerations. Dakota Rural Action (DRA) filed a Motion for Extension of Time to File Application for Party Status on May 11, 2009. Requests for Party Status were granted at the May 19, 2009, Commission Meeting. At the same meeting, the Commission voted to deny the Motion for Extension of Time to File Application for Party Status, and in the alternative, the Commission extended the intervention deadline to May 31, 2009. On May 15, 2009, Staff filed a Motion to Establish Procedural Schedule. Staff filed a Letter Regarding Consulting Contracts on May 29, 2009. The Commission established a Procedural Schedule at its June 9, 2009, meeting. On September 3, 2009, DRA filed a Motion for Extension of Time to Submit Testimony. The Commission Granted the Motion for Extension of Time to Submit Testimony at its September 8, 2009, meeting. On September 18, 2009, Keystone filed a Response to DRA's Request for Further Discovery. At its September 23, 2009, meeting, the Commission granted in part and denied in part DRA's Request for Further Discovery. On September 29, 2009, Chairman Johnson filed a request that the Commission reconsider its earlier decision and make documents central to the Applicant's preparation of its Emergency Response Plan available as part of discovery. On October 2, 2009, Staff filed a request for the Commission to render a decision regarding whether the hearing will proceed as it was scheduled in June. At its regularly scheduled meeting of October 6, 2009, the Commission voted unanimously to amend all previously set procedural schedules to allow DRA an extension to file testimony and to allow the Applicant to rebut said testimony. On October 15, 2009, the Commission issued an Order for and Notice of Public Hearing in this matter to provide for a public input hearing at which interested persons could present informal comments in conjunction with the formal hearing scheduled for November 2 - 6, 2009. On October 19, 2009, intervenor DRA requested that the time for commencement of the public hearing be changed from 7:00 p.m. CST to 6:00 p.m. CST to better accommodate the schedules of interested persons. On October 21, 2009, the Commission issued an Amended Order for and Notice of Public Hearing amending its earlier order to commence the public hearing at 6:00 p.m. CST. The formal hearing was held as scheduled on November 2-4, 2009, and the public input hearing was held as scheduled on November 3, 2009. On December 31, 2009, the Commission issued an amended Order establishing a briefing schedule. Applicant and Staff filed post-hearing briefs on January 20, 2010, and DRA filed a post-hearing brief after hours on January 20, 2010. Reply briefs are due from all parties on February 2, 2010.

         TODAY, shall the Commission grant, deny, or grant with conditions, a permit to Keystone XL for construction of the project pursuant to SDCL 49-41B-24? OR how shall the Commission proceed?


1.      TC08-135           In the Matter of the Complaint filed by OrbitCom, Inc. against Verizon Business Network Services, Inc. Regarding Unpaid Access Charges. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Karen Cremer)

         On November 25, 2008, OrbitCom filed a complaint seeking recovery on an account because of the failure of Verizon to pay OrbitCom the amounts invoiced pursuant to its state tariff for the provisioning of telephone access services. On June 1, 2009, the parties filed a proposed procedural schedule. The Commission approved the proposed procedural schedule at its June 9, 2009, meeting. On August 20, 2009, Verizon filed a Motion to Compel, a Motion to Reset Hearing Dates, and a Request to Supplement its Prefiled Direct Testimony. A Corrected Motion to Compel and Motion to Reset Hearing Dates was filed on August 21, 2009. On September 15, 2009, the Commission issued its Order Granting Motion to Compel In Part; Order Approving Resetting Hearing Dates and Order Granting Filing of Supplemental Testimony. On September 10, 2009, OrbitCom filed a Motion for Hearing Date. On September 24, 2009, OrbitCom filed a letter advising the Commission of the parties' stipulation regarding the schedule for filing of pre-filed testimony. On October 8, 2009, the Commission issued its Order for and Notice of Hearing. On October 22, 2009, a hearing was held as scheduled in the order. On November 11, 2009, OrbitCom filed a letter advising the Commission of the briefing schedule stipulated by the parties. On December 4, 2009, initial post-hearing briefs were filed by Verizon and OrbitCom. On January 8 and January 11, 2010, reply briefs were filed by Verizon and OrbitCom, respectively. On February 4, 2009, the Commission received Verizon's Motion to Strike or in the alternative, a Motion for Leave to File Sur-Reply Brief.

      TODAY, shall the Commission grant Verizon's Motion to Strike? OR, in the alternative, shall the Commission grant Verizon's Motion for Leave to File Sur-Reply Brief? OR, how shall the Commission proceed?

/S/ Cindy Kemnitz              .
Cindy Kemnitz
Finance Manager
February 10, 2010