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South Dakota Public Utilities Commission
April 24, 2012, at 9:30 A.M. CDT
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. CDT on Monday, April 23, 2012. 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 website www.puc.sd.gov and click on the LIVE link on the home page. The Commission requests 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 website under the Commission Actions tab, Click on "Commission Meeting Archives," to access the recordings.

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 Meeting Held on April 10, 2012 (Staff: Joy Irving)

Consumer Reports

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

Consumer Complaint

1.     CN11-001     In the Matter of the Complaint filed by Lee Andersen, Progressive Property Management, Sioux Falls, South Dakota, against MidAmerican Energy Company Regarding a Billing Dispute (Staff Analyst: Deb Gregg, Staff Attorneys: Ryan Soye, Kara Semmler)

On December 19, 2011, Lee Anderson with Progressive Property Management filed a complaint against MidAmerican Energy Company regarding a billing dispute. Mr. Anderson believes he was improperly billed for services he did not use and asks the charges be dismissed and billed to the proper party. On April 11, 2012, the parties notified the Commission of a pending settlement and requested that the hearing be cancelled.

     TODAY, shall the Commission dismiss the docket?

Electric

1.     EL12-025     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Cherry-Todd Electric Cooperative, Inc. and LaCreek Electric Association, Inc. (Staff Analyst: Ross Pedersen, Staff Attorney: Ryan Soye)

On March 30, 2012, Commission Staff filed an Electric Service Territory Boundary Agreement between Cherry-Todd Electric Cooperative, Inc. and LaCreek Electric Association, Inc. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission Staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission Staff asks for approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

     TODAY, shall the Commission approve the proposed electric service territory boundary agreement?

2.     EL12-027     In the Matter of the Petition of Otter Tail Power Company to Establish an Environmental Quality Cost Recovery Tariff (Staff Analysts: Brittany Mehlhaff, Jon Thurber, Staff Attorney: Karen Cremer)

On March 30, 2012, Otter Tail Power Company (Otter Tail) filed for Commission approval of an Environmental Quality Cost Recovery Tariff. The purpose of filing this request is to begin the recovery of the costs of the required environmental retrofit to the Big Stone, South Dakota generating station.  Otter Tail anticipates the rate impact of this request will be approximately 2 percent on average in the first year of the rider. Once the construction is complete in 2016, Otter Tail estimates the rate impact will be approximately 15 percent. Otter Tail proposes an October 1, 2012, effective date. On April 10, 2012, NorthWestern Energy filed a Petition to Intervene.

     TODAY, shall the Commission grant Intervention to any parties that have filed?

Hydrocarbon Pipeline

1.     HP07-001     In the Matter of the Application of TransCanada Keystone Pipeline, LP for a Permit under the South Dakota Energy Conversion and Transmission Facility Act to Construct the Keystone Pipeline Project (Staff Analyst: Nathan Solem, Staff Attorney: Kara Semmler) 

On April 25, 2008, the Commission issued its Final Decision and Order; Notice of Entry in this docket in which it issued to TransCanada Keystone Pipeline, LP, (Keystone) a permit to construct the Keystone Pipeline Project subject to 57 Conditions. On December 20, 2011, Keystone filed with the Commission a Motion for release of the construction bonds.

     TODAY, shall the Commission authorize the release of the construction bonds?

Natural Gas

1.     NG12-001     In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of Its 2012 Economic Development Proposed Budget (Staff Analyst: Patrick Steffensen, Staff Attorney: Kara Semmler)

On March 30, 2012, NorthWestern Energy (NorthWestern) filed for Commission approval of its economic development 2012 budget. As this is the first budget that NorthWestern is submitting as a result of NG11-003, the company will report on its anticipated expenses for 2012 with the understanding that in 2013, the Commission will review NorthWestern's 2012 actual expenses against the budget and a proposed budget for 2013.

     TODAY, shall the Commission approve the 2012 Proposed Economic Development Budget?

Telecommunications

1.     TC11-087     In the Matter of the Application of Native American Telecom, LLC for a Certificate of Authority to Provide Interexchange Telecommunications Services and Local Exchange Services in South Dakota (Staff Analyst: Chris Daugaard, Staff Attorney: Karen Cremer)

On October 11, 2011, Native American Telecom, LLC (NAT) filed an application for a certificate of authority to provide local exchange and interexchange service within the study area of Midstate Communications, Inc. NAT states that it is a tribally-owned full service telecommunications carrier operating on the Crow Creek Sioux Tribe Indian Reservation pursuant to an Order Granting Approval to Provide Telecommunications Service by the Crow Creek Sioux Tribe Crow Creek Utility Authority dated October 28, 2008. NAT seeks to expand its authority to include areas within Midstate's study area off of the Crow Creek reservation. On March 26, 2012, NAT filed a Motion for Summary Judgment with the Commission. On April 2, 2012, Sprint filed a Motion to Compel with the Commission. CenturyLink filed a Motion to Compel Discovery Responses on April 2, 2012. On April 3, 2012, NAT filed a Motion to Compel Discovery Responses with the Commission.

     TODAY, shall the Commission grant NAT's Motion for Summary Judgment? AND, shall the Commission grant Sprint's Motion to Compel? AND, shall the Commission grant CenturyLink's Motion to Compel Discovery Responses? AND, shall the Commission grant NAT's Motion to Compel Discovery?

2.     TC12-027     In the Matter of the Joint Application of the South Dakota Telecommunications Association, the Local Exchange Carriers Association and Qwest Corporation dba CenturyLink QC for Waiver of ARSD §§ 20:10:29:10, 20:10:29:12 and 20:10:29:16 (Staff Analyst: Chris Daugaard, Staff Attorney: Karen Cremer)

On March 2, 2012, the Commission received a joint application by the South Dakota Telecommunications Association, the Local Exchange Carriers Association, and Qwest Corporation dba CenturyLink QC requesting waiver or suspension of ARSD §§ 20:10:29:10, 20:10:29:12 and 20:10:29:16. The applicants state that these rules govern the establishment of intrastate switched access charges and a waiver/suspension is requested from the provisions in each rule indicating that local exchange carriers should tariff equal rates for originating and terminating traffic.

     TODAY, shall the Commission suspend or waive the requirements identified in ARSD 20:10:29:10, 20:10:29:12 and 20:10:29:16?

3.     TC12-029     In the Matter of the Filing by Liberty-Bell Telecom, LLC dba DISH Network Phone & Internet for Approval of Revisions to its Intrastate Switched Access Tariff No. 1 (Staff Analyst: Patrick Steffensen, Staff Attorney: Karen Cremer)

On March 26, 2012, the Commission received a filing from Liberty-Bell Telecom, LLC dba DISH Network Phone & Internet (DP&I) for approval of revisions to its Access Services Tariff No. 1. This filing makes revisions to reflect the addition of language for the implementation of the intercarrier compensation regime for certain VoIP-PSTN traffic as mandated in the Federal Communications Commission's Report and Order in WC Docket No. 10-90, et al., FCC No. 11-161. DP&I also makes minor amendments to its provision of switched access services and certain definitions. On April 17, 2012, the Commission received amendments to Sections 4.3.2.A and 4.3.2.C incorporating additional VOIP-PSTN clarification. DP&I requests an effective date of April 27, 2012.

    TODAY, shall the Commission approve the requested tariff changes?

Administration

1.     Establishment of the Gross Receipts Tax levy for the 2013 Fiscal Year (Finance Manager: Cindy Kemnitz)

SDCL Chapter 49-1A establishes the South Dakota Public Utilities Commission Gross Receipts Tax Fund. This Fund is financed by assessing a tax on the annual intrastate gross receipts received by a utility. The Fund is used by the Commission to defray regulatory expenses related to the regulation of telecommunications, electricity and natural gas. On April 1 of each year all utilities and telecommunications companies doing business in South Dakota shall file with the Commission, on forms provided by the Commission, the amount of its gross receipts derived from customers within South Dakota during the preceding calendar year pursuant to SDCL 49-1A-4. The report shall be sworn to and verified by an officer of the company. The Commission shall, by order, establish the rate and assess the tax authorized in SDCL 49-1A-3 which, together with any funds remaining from the current fiscal year and the two hundred fifty dollar minimum gross receipt tax, will fund the Commission's budget for the next fiscal year and provide a contingency reserve in an amount not to exceed the prior year's budget. In accordance with SDCL 49-1A-5, the tax is due and payable on July 15 of each year.

     TODAY, shall the Commission Establish the Rate and Assess the Gross Receipts Tax as Authorized in SDCL49-1A-3?

Items for Commission Discussion

Announcements

  1. Commissioners will attend the Alliance Communications annual meeting on Saturday, April 21, 2012, at 1 p.m. CDT at Brandon Valley High School in Brandon, S.D.

  2. An ad hoc commission meeting will be held Thursday, April 26, 2012, at 10 a.m. CDT, in Room 413 at the State Capitol Building in Pierre, S.D.

  3. Commissioners will attend the Lacreek Electric Association annual meeting on Thursday, April 26, 2012, at 7 p.m. MDT at the American Legion Auditorium in Martin, S.D.

  4. Commissioners and staff will meet with representatives of MISO on Monday, April 30, 2012, at 2:30 p.m. CDT in Room 413 at the State Capitol Building in Pierre, S.D. The agenda is to discuss regional transmission issues.

  5. Commissioners and staff will meet with representatives of the Western Area Power Administration on Monday, May 7, 2012, at 9 a.m. CDT in Room 430 at Lake Area Technical Institute, 1225 Arrow Ave. in Watertown, S.D. The agenda is to discuss Western's policies and procedures in marketing and delivering hydroelectric power. A tour of Western's Watertown operations center will follow the meeting. Security clearance is required to tour the facility.

  6. The next regularly scheduled commission meeting will be held Tuesday, May 8, 2012, at 9:30 a.m. CDT, in Room 413 at the State Capitol Building in Pierre, S.D.

  7. Commissioners and staff will meet with representatives of Knology of the Black Hills on Wednesday, May 16, 2012, at 2 p.m. MDT at the Knology office, 809 Deadwood Ave. in Rapid City, S.D. The agenda is to discuss company history and tour the Knology facility.

  8. Commission meetings are scheduled for May 22 and June 5, 2012.

/S/ Cindy Kemnitz
Cindy Kemnitz
Finance Manager
puc@state.sd.us
April 17, 2012