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PUBLIC UTILITIES COMMISSION MEETING
Tuesday, March 10, 1998; 10:00 A.M.
State Capitol Building, Room 412
Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING


Chairman 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, Deputy Director Harlan Best, Utility Analysts Bob Knadle, Dave Jacobson, Steve Wegman and Tammi Stangohr, Engineer Martin Bettmann, Business Manager Sue Cichos, Consumer Representative Leni Healy, and Administrative Secretary Shirleen Fugitt.

Also present were Bob Miller, South Dakota Electric Utilities; Jim Wilcox, Northern States Power Company; Wade Reimers, Rapid City Gas; Audrey Ricketts, South Dakota Rural Electric Association; Gordon Woods, Rapid City Gas Transportation Company; Bob Mercer, Rapid City Journal; Al Lundy, South Dakota Public Radio; and Rich Coit, SDITC.

Joining the meeting by phone were Suzan Stewart, Glen Iverson and Gretta Knight, MidAmerican Energy; Dave Gerdes and John Winter, Northern States Power; Brian and Lee Somerville, Basic Long distance; Kyle White and Jim Jeffries, Black Hills Power & Light; Don Ball, Montana-Dakota Utilities; Jon Lehner and Colleen Sevold, U S WEST; Kevin McKee, complainant from Deadwood, South Dakota; and Darrell Seeman, complainant from Sioux Falls, South Dakota.

Administration


1. Approval Of The Minutes Of The Commission Meetings Held On February 18, 1998, and February 24, 1998. (Staff: Shirleen Fugitt.)

Commissioner Nelson moved to approve the minutes of the meetings held on February 18 and February 24, 1998. 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 an update on inquiries and complaints received since the last Commission meeting.

Electric


1. EL98-003 IN THE MATTER OF THE COMPLAINT FILED BY KEVIN J. MCKEE, DEADWOOD, SOUTH DAKOTA, AGAINST BLACK HILLS POWER & LIGHT COMPANY REGARDING RECEIVING ELECTRICAL SERVICE. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Kevin McKee explained his complaint against Black Hills Power & Light. Kyle White noted that a proposal has been made by Black Hills Power & Light to e Electric. Action was deferred.

Natural Gas


1. NG97-017 IN THE MATTER OF THE COMPLAINT FILED BY DARRELL SEEMAN, SIOUX FALLS, SD, AGAINST MIDAMERICAN ENERGY COMPANY REGARDING TRANSFERRING UNPAID BALANCES TO HIS ACCOUNT. (Consumer Representative: Leni Healy. Staff Attorney: Karen Cremer.)

Commissioner Schoenfelder moved to find that MidAmerican Energy did not commit an unreasonable act. Chairman Burg seconded and Commissioner Nelson dissented. Motion passed 2-1.

It was also noted that MidAmerican is now required to itemize any transfers and clearly identify the accounts that are being transferred in order to alleviate customer confusion.

2. 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: Bob Knadle. Staff Attorney: Karen Cremer.)

Dave Gerdes, Northern States Power, stated that the question is whether the company is a gas utility and whether the Commission has jurisdiction in this matter. Following discussion as to the definition of a gas utility, Ms. Wiest recommended the application be amended. Mr. Gerdes stated that the company will amend the application. Action was deferred.

3. NG97-022 IN THE MATTER OF THE FILING BY MIDAMERICAN ENERGY COMPANY FOR APPROVAL OF ITS 1997 ECONOMIC DEVELOPMENT REPORT AND ITS 1998 ECONOMIC DEVELOPMENT BUDGET. (Staff Analyst: Steve Wegman. Staff Attorney: Camron Hoseck.)

Glen Iverson, MidAmerican Energy, explained the 1997 economic development report.

Commissioner Nelson moved to approve the 1997 economic development report. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

Mr. Wegman recommended approval of the 1998 economic development budget.

Commissioner Schoenfelder moved to approve the 1998 economic development budget. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

4. NG98-001 IN THE MATTER OF THE APPLICATION OF THE RAPID CITY GAS TRANSPORTATION COMPANY, LLC FOR A PERMIT TO CONSTRUCT A 6.625 INCH O.D. TRANSMISSION PIPELINE FACILITY IN PENNINGTON COUNTY, SOUTH DAKOTA. (Staff Engineer: Martin Bettmann. Staff Attorney: Karen Cremer.)

Ms. Cremer recommended that an intervention deadline be established and the executive director set a procedural schedule. She further recommended that a filing fee be assessed.

Commissioner Nelson moved to establish an intervention deadline and that the executive director set a procedural schedule. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

Commissioner Nelson moved to assess a filing fee not to exceed $8,000.00. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

Telecommunications


1. TC97-169 IN THE MATTER OF THE COMPLAINT FILED BY AVERY AND DIXIE THOMPSON, RELIANCE, SD, AGAINST U S WEST COMMUNICATIONS, INC. FOR DELAYED SERVICE. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Commissioner Nelson moved that the Commission deny U S WEST's Motion for Late-Filed Exhibits. The Commission finds that these documents were available to U S WEST prior to the hearing and therefore U S WEST had the opportunity to offer the exhibits at the hearing but failed to do so.

Commissioner Nelson further moved that the Commission find that U S WEST has committed an unreasonable act in its failure to provide service to the Thompsons in a timely manner. She further moved that the Commission award the Thompsons the sum of $1,032.44 which consists of phone charges, mileage for trips to town to make phone calls, and time expended by the Thompsons due to lack of phone service. Chairman Burg seconded and Commissioner Schoenfelder concurred. Motions passed 3-0.


2. TC97-198 IN THE MATTER OF THE APPLICATION OF TELEHUB NETWORK SERVICES CORPORATION FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Dave Jacobson. Staff Attorney: Karen Cremer.)

Mr. Jacobson explained the application and recommended approval.

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

3. TC98-002 IN THE MATTER OF THE APPLICATION OF BUSINESS CALLING PLAN, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

Ms. Stangohr explained the application and recommended approval with restrictions on prepaid calling cards, deposits and advance payments.

Commissioner Schoenfelder moved to approve the application with restrictions on prepaid calling cards, deposits and advance payments. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

4. TC98-004 IN THE MATTER OF THE APPLICATION OF ACS SYSTEMS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

Ms. Stangohr explained the application and recommended approval.

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

5. TC98-054 IN THE MATTER OF THE APPLICATION OF MVX COMMUNICATIONS, LLC FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

Ms. Stangohr explained the application and recommended approval contingent upon the receipt of a Certificate of Authority from the Secretary of State.

Commissioner Nelson moved to approve the application contingent upon receipt of a Certificate of Authority from the Secretary of State. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

6. IN THE MATTER OF EXCESSIVE CONSUMER COMPLAINTS AGAINST BASIC LONG DISTANCE FOR QUESTIONABLE MARKETING PRACTICES AND UNAUTHORIZED SWITCHING OF LONG DISTANCE SERVICE. (Consumer Affairs: Leni Healy.)

Lee Somerville addressed the issue. Ms. Healy recommended issuing an order to Show Cause.

Commissioner Schoenfelder moved to issue an Order to Show Cause. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

The meeting was adjourned.

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Shirleen Fugitt
Administrative Secretary