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PUBLIC UTILITIES COMMISSION MEETING

Thursday, January 8, 1998; 10:00 A.M.

State Capitol Building, Room 464

Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING

Chairman Jim Burg called the meeting to order at 10:00 a.m. Present were Commissioner Laska Schoenfelder, Commissioner Pam Nelson, Executive Director Bill Bullard, General Counsel Rolayne Ailts Wiest, Staff Attorneys Karen Cremer and Camron Hoseck, Fixed Utilities Division Director Greg Rislov, Telecommunications Analyst Harlan Best, Utility Analysts Bob Knadle, Dave Jacobson and Tammi Stangohr, Consumer Representative Leni Healy, Business Manager Sue Cichos and Administrative Secretary Shirleen Fugitt.

Also present were Bill Heaston, Jon Lehner, Colleen Sevold and Tom Welk, U S WEST; Rich Coit, SDITC; Bob Miller, South Dakota Electric Utilities; Doug Eidahl and Ron Holsteen, South Dakota Rural Electric Association; Dave Gerdes representing NSP and MCI; Al Lundy, South Dakota Public Radio; Terry Woster, Sioux Falls Argus Leader; Bob Mercer, Rapid City Journal; Chet Brokaw, Associated Press; and Jerome Jacobs, complainant from Pierre.

Joining the meeting by phone were Larry Hettinger, Martin & Associates; Robert Marmet, Dakota Telecommunications Group; Bev Cederburg, AT&T; Mary Lohnes, Midco Communications; Suzan Stewart, MidAmerican Energy; Jim Wilcox and John Winter, NSP; Paul Schuetzler, Consolidated Communications; and Jennifer Erickson, Pam Natural Gas.

Administration

1. Approval Of The Minutes Of The Commission Meetings Held On December 11, 12, 18 and 30, 1997. (Staff: Shirleen Fugitt.)

Commissioner Nelson moved to approve the minutes of the December 11, 12, 18 and 30 Commission meetings. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

Consumer Affairs

1. Status Report On Consumer Utility Inquiries And Complaints Recently Received By The Commission. (Consumer Representative: Leni Healy.)

Ms. Healy presented a status report on consumer inquiries and complaints received since the last Commission meeting.Motion passed 3-0.

Telecommunications

12. TC97-189 - IN THE MATTER OF THE APPLICATION OF CONSOLIDATED COMMUNICATIONS NETWORKS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

Paul Schuetzler, Consolidated Communications Networks, Inc., explained the application. Ms. Stangohr recommended approval.

Commissioner Nelson moved to approve the application. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

Gas/Electric

1. GE97-002 - IN THE MATTER OF THE FILING BY MIDAMERICAN ENERGY COMPANY FOR APPROVAL OF ITS GUIDE TO ENERGY SERVICES PAMPHLET. (Staff Analyst: Dave Jacobson. Staff Attorney: Camron Hoseck.)

Suzan Stewart, MidAmerican Energy, explained the revisions in the pamphlet. Mr. Jacobson recommended approval.

Commissioner Schoenfelder moved to approve the revisions. Chairman Burg seconded. Commissioner Nelson dissented. Motion passed 2-1.

2. GE97-005 - IN THE MATTER OF THE FILING BY MIDAMERICAN ENERGY COMPANY FOR APPROVAL OF REVISIONS TO ITS TARIFFS. (Staff Analyst: Dave Jacobson. Staff Attorney: Camron Hoseck.)

Mr. Jacobson requested deferral. Action was deferred.

Telecommunications (continued)

1. TC96-189 - IN THE MATTER OF THE APPLICATION OF ATHENA INTERNATIONAL, L.L.C. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

Ms. Stangohr noted that Athena International, L.L.C. has requested withdrawal of this application.

Chairman Burg moved to allow withdrawal of this application and to close the docket. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

2. TC97-023 - IN THE MATTER OF THE APPLICATION OF ATLAS COMMUNICATIONS, LTD. FOR AN AMENDED CERTIFICATE OF AUTHORITY TO PROVIDE RESOLD LOCAL EXCHANGE SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

Ms. Stangohr explained the application and recommended approval with rural safeguards, a waiver to ARSD 20:10:24:02 (8) and (12) and restrictions on prepaid calling cards, advance payments, and deposits.

Commissioner Nelson moved to approve the application with the conditions and restrictions noted above. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

Addendum

Natural Gas

1. NG97-021 - IN THE MATTER OF THE APPLICATION FOR AN ORDER ESTABLISHING A NATURAL GAS LOCAL DISTRIBUTION UTILITY, AND TO ESTABLISH INITIAL NATURAL GAS TRANSPORTATION RATES FOR NORTHERN STATES POWER COMPANY. (Staff Analyst: Greg Rislov. Staff Attorney: Karen Cremer.)

Dave Gerdes representing Northern States Power requested approval of the application subject to refund. Mr. Knadle explained the application. Ms. Wiest noted that the Commission could allow the rate to go into effect subject to refund without approving the tariff. Mr. Rislov noted that Staff needs more information from NSP and more time to review the application.

Chairman Burg moved to set a February 9, 1998, intervention deadline. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

Chairman Burg moved to assess a filing fee of up to $100,000. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

Telecommunications (continued)

14. TC97-200 - IN THE MATTER OF THE COMPLAINT FILED BY JEROME JACOBS, PIERRE, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING HAVING AN EXTRA LINE INSTALLED. (Consumer Representative: Leni Healy. Staff Attorney: Karen Cremer.)

Mr. Jacobs explained his complaint and noted that he now believes the complaint will be settled to his satisfaction. Colleen Sevold, U S WEST, noted that the company is working with Mr. Jacobs. No action was taken.

3. TC97-056 - IN THE MATTER OF THE FILING BY KADOKA TELEPHONE CO. FOR SWITCHED ACCESS TARIFF REVISIONS. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Mr. Best explained the filing and recommended approval with an April 15, 1997, effective date.

Commissioner Schoenfelder moved to approve the filing. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

4. TC97-059 - IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR WEST RIVER COOPERATIVE TELEPHONE COMPANY. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Mr. Best explained the filing and recommended approval.

Chairman Burg moved to approve the application. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

5. TC97-060 - IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR SOUTH DAKOTA NETWORK, INC. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Mr. Best explained the filing and recommended approval of the November 13, 1997, cost study.

Commissioner Nelson moved to approve the filing. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

7. TC97-063 - IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR VALLEY TELECOMMUNICATIONS COOP. ASSN. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

Ms. Stangohr explained the filing and recommended approval of the revised cost study.

Commissioner Schoenfelder moved to approve the revised cost study. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

8. TC97-064 - IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR MIDSTATE TELEPHONE COMPANY. (Staff Analyst: Bob Knadle. Staff Attorney: Karen Cremer.)

Mr. Knadle explained the filing and recommended approval of the revised cost study.

Chairman Burg moved to approve the filing. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

9. TC97-065 - IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR MCCOOK COOPERATIVE TELEPHONE COMPANY. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Mr. Best explained the filing and recommended approval of the revised cost study.

Commissioner Nelson moved to approve the filing. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

10. TC97-118 - IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR WEST RIVER TELECOMMUNICATIONS COOPERATIVE. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Mr. Best explained the filing and recommended approval of the December 15, 1997, revised cost study.

Chairman Burg moved to approve the revised cost study. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

6. TC97-061 - IN THE MATTER OF THE FILING BY THE LOCAL EXCHANGE CARRIERS ASSOCIATION FOR SWITCHED ACCESS TARIFF REVISIONS. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Mr. Best explained the filing and recommended approval of the December 17, 1997, revised cost study.

Commissioner Nelson moved to approve the revised cost study. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

11. TC97-175 - IN THE MATTER OF THE FILING BY U S WEST COMMUNICATIONS, INC. FOR APPROVAL OF REVISIONS TO ITS EXCHANGE AND NETWORK SERVICES TARIFF. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

Colleen Sevold, U S WEST, explained the filing. Ms. Stangohr recommended approval.

Commissioner Schoenfelder moved to approve the filing. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

13. TC97-192 - IN THE MATTER OF U S WEST COMMUNICATIONS, INC. AND ITS ABILITY TO SERVE SOUTH DAKOTA CUSTOMERS. (Staff Analyst: Harlan Best. Staff Attorney: Camron Hoseck.)

Mr. Hoseck explained the Petition for Order to Show Cause against U S WEST. Bill Heaston representing U S WEST resisted the petition. Chairman Burg noted that the matter will be taken under advisement.

The meeting was adjourned.

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Shirleen Fugitt

Administrative Secretary