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South Dakota Public Utilities Commission
Thursday, May 28, 1998; 10:00 A.M.
>State Capitol Building, Room 412
Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING


Chairman Jim Burg called the meeting to order at 10:00 a.m. Present were Commissioner Pam Nelson, Commissioner Laska Schoenfelder, 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, Consumer Representative Leni Healy, Business Manager Sue Cichos and Administrative Secretary Shirleen Fugitt.

Also present were Susan Smith, Capital Journal; Todd Chambers , Geoff Simon and Jerry Wattier, City of Pierre; Loren Hiatt, AT&T; Thomas P. Maher, representing the intervenors in EL98-004; Bob Miller, South Dakota Electric Utility Companies; Gordon Woods, South Dakota Intrastate Pipeline; Jim Wilcox, Northern States Power; Tony Mangen, KCCR; Dave Gerdes, MCI; Rich Coit, SDITC; and Bob Mercer, Rapid City Journal.

Joining the meeting by phone were Richard Haubensak, Peoples Natural Gas; Mike Bradley representing Peoples Natural Gas, Ft. Randall Telephone and Vivian Telephone; Neil Schmid, FirsTel; Tom Simmons, Midco Communications; Colleen Sevold, U S WEST; Duane Muxen, complainant in NG98-003; and Don Hertz, complainant in TC98-080.

Chairman Burg introduced Ethan Meaney who has joined the Commission for the summer as a Legal Intern.

Administration


1. Approval Of The Minutes Of The Commission Meeting Held On May 12, 1998. (Staff: Shirleen Fugitt.)

Commissioner Nelson moved to approve the minutes of May 12, 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 a status report on complaints and inquiries received since the last Commission meeting.

Telecommunications


11. TC98-080 IN THE MATTER OF THE COMPLAINT FILED BY DON HERTZ, CUSTER, SOUTH DAKOTA, AGAINST AT&T COMMUNICATIONS OF THE MIDWEST, INC. REGARDING LONG DISTANCE TELEPHONE RATES. (Consumer Representative: Leni Healy. Staff Attorney: Karen Cremer.)

Loren Hiatt, AT&T, reported that AT&T has initiated a write-off of the Hertz account and does not wish to proceed with a hearing.

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

Natural Gas


1. NG98-003 IN THE MATTER OF THE COMPLAINT FILED BY DUANE MUXEN, DOLAND, SOUTH DAKOTA, AGAINST PEOPLES NATURAL GAS REGARDING SALES TAX EXEMPTION. (Staff Analyst: Dave Jacobson. Legal Intern: Ethan Meaney.)

Duane Muxen explained his complaint against Peoples Natural Gas regarding a sales tax exemption. Mr. Jacobson noted that representatives from the Department of Revenue elected not to attend the meeting today. Mr. Jacobson also recommended finding probable cause. Commissioner Schoenfelder recommended that Staff negotiate with the Department of Revenue and Mr. Muxen and that action be deferred. Action was deferred.

Addendum


Electric


1. EL98-004 IN THE MATTER OF THE PETITION FOR DECLARATORY RULING FILED BY THE CITY OF PIERRE REGARDING A TRANSMISSION LINE. (Staff Engineer: Martin Bettmann. Staff Attorney: Camron Hoseck.)

Chairman Burg moved that the City supplement the record with additional information concerning Segment A of the proposed transmission line. He further requested that the City answer the question as to whether any part of Segment A follows property lines. In other words, Chairman Burg asked if the only reason the city states that the majority of Segment A is inside the preferred zone is because it follows a platted street. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.


Telecommunications (continued)


1. TC97-160 IN THE MATTER OF THE APPLICATION OF STERLING INTERNATIONAL FUNDING, INC. D/B/A RECONEX FOR A CERTIFICATE OF AUTHORITY TO PROVIDE LOCAL EXCHANGE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

Ms. Stangohr recommended denial of this application as the company has not responded to numerous data requests.

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

2. TC97-171 IN THE MATTER OF THE APPLICATION OF NEW MEDIA TELECOMMUNICATIONS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

The company has requested withdrawal of this application.

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

3. TC97-196 IN THE MATTER OF THE APPLICATION OF ECLIPSE COMMUNICATIONS CORPORATION FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES, INCLUDING LOCAL EXCHANGE SERVICE, IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

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

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

4. TC97-199 IN THE MATTER OF THE FILING BY RT COMMUNICATIONS, INC. FOR DESIGNATION AS AN ELIGIBLE TELECOMMUNICATIONS CARRIER. (Staff Analyst: Harlan Best. Staff Attorney: Camron Hoseck.)

Commissioner Nelson moved that RT Communications, Inc., be designated as an ETC for its study area in South Dakota and that current study area be designated as its service area. She further moved that RT Communications be required to advertise the availability of the services supported by the federal universal service support mechanism and the charges therefore using media of general distribution once each year. If the rate for any of the services supported by the federal universal service support mechanism changes, the new rate must also be advertised using media of general distribution. Commissioner Nelson further moved that RT Communications implement the Lifeline and Link Up programs adopted by this Commission, which follow the FCC requirements, rather than the Wyoming programs. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

5. TC98-057 IN THE MATTER OF THE APPLICATION OF SMARTSTOP, INC. 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.

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

6. TC98-072 IN THE MATTER OF THE PETITION OF FORT RANDALL TELEPHONE COMPANY FOR APPROVAL OF EXTENSION OF WAIVER OF SWITCHED ACCESS RULES. (Staff Analyst: Harlan Best. Staff Attorney: Camron Hoseck.)

Mike Bradley, Fort Randall Telephone, explained the petition.

Commissioner Nelson moved to grant an extension of the waiver of the switched access rules contingent upon the filing of a cost study by May 1, 1999. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

7. TC98-073 IN THE MATTER OF THE PETITION OF VIVIAN TELEPHONE COMPANY FOR APPROVAL OF EXTENSION OF WAIVER OF SWITCHED ACCESS RULES. (Staff Analyst: Harlan Best. Staff Attorney: Camron Hoseck.)

Mike Bradley, Vivian Telephone Company, explained the petition.

Chairman Burg moved to grant an extension of the waiver of the switched access rules contingent upon the filing of a cost study by May 1, 1999. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

8. TC98-075 IN THE MATTER OF THE FILING BY U S WEST COMMUNICATIONS, INC., FOR APPROVAL OF INTERCONNECTION AGREEMENT BETWEEN COMMCHOICE, LLC AND U S WEST COMMUNICATIONS, INC. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Colleen Sevold, U S WEST, reported that the parties have reached an agreement. Action was deferred.

9. TC98-078 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR INTRASTATE TELEPHONE COMPANY, INC. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Commissioner Schoenfelder moved to assess a filing fee for actual costs not to exceed $100,000. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

10. TC98-079 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR STATELINE TELECOMMUNICATIONS, INC. (Staff Analyst: Bob Knadle. Staff Attorney: Karen Cremer.)

Commissioner Nelson moved to assess a filing fee for actual costs not to exceed $100,000. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

12. TC98-081 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR BRIDGEWATER-CANISTOTA INDEPENDENT TELEPHONE COMPANY. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

Chairman Burg moved to assess a filing fee for actual costs not to exceed $100,000. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

13. TC98-082 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR KENNEBEC TELEPHONE COMPANY. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Commissioner Schoenfelder moved to assess a filing fee for actual costs not to exceed $100,000. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

14. TC98-083 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR WESTERN TELEPHONE COMPANY. (Staff Analyst: Bob Knadle. Staff Attorney: Karen Cremer.)

Chairman Burg moved to assess a filing fee for actual costs not to exceed $100,000. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

15. TC98-084 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR VALLEY TELECOM COOPERATIVE ASSOCIATION AND VALLEY CABLE & SATELLITE COMMUNICATIONS. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

Commissioner Schoenfelder moved to assess a filing fee for actual costs not to exceed $100,000. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

16. TC98-085 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR MIDSTATE TELEPHONE COMPANY AND HEARTLAND COMMUNICATIONS, INC. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Commissioner Nelson moved to assess a filing fee for actual costs not to exceed $100,000. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

17. TC98-086 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR SANBORN TELEPHONE COOPERATIVE AND SANCOM, INC. (Staff Analyst: Bob Knadle. Staff Attorney: Karen Cremer.)

Commissioner Nelson moved to assess a filing fee for actual costs not to exceed $100,000. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

18. TC98-087 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR VENTURE COMMUNICATIONS, INC. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

Commissioner Schoenfelder moved to assess a filing fee for actual costs not to exceed $100,000. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

19. TC98-088 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR HANSON COMMUNICATIONS, INC. D/B/A MCCOOK TELECOM. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Commissioner Nelson moved to assess a filing fee for actual costs not to exceed $100,000. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

20. TC98-089 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR SPLITROCK PROPERTIES, INC. (Staff Analyst: Bob Knadle. Staff Attorney: Karen Cremer.)

Commissioner Schoenfelder moved to assess a filing fee for actual costs not to exceed $100,000. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

21. TC98-090 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR THE LOCAL EXCHANGE CARRIER ASSOCIATION (LECA). (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Commissioner Nelson moved to assess a filing fee for actual costs not to exceed $100,000. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

22. TC98-091 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR JAMES VALLEY COOPERATIVE TELEPHONE COMPANY AND ACCENT COMMUNICATIONS, INC. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

Commissioner Schoenfelder moved to assess a filing fee for actual costs not to exceed $100,000. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

23. TC98-092 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR STOCKHOLM-STRANDBURG TELEPHONE CO. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Commissioner Nelson moved to assess a filing fee for actual costs not to exceed $100,000. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

24. TC98-093 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR ROBERTS COUNTY TELEPHONE COOPERATIVE ASSOCIATION AND RC COMMUNICATIONS, INC. (Staff Analyst: Bob Knadle. Staff Attorney: Karen Cremer.)

Commissioner Schoenfelder moved to assess a filing fee for actual costs not to exceed $100,000. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

25. TC98-094 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR MOBRIDGE TELECOMMUNICATIONS COMPANY. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Commissioner Schoenfelder moved to grant a waiver to use GVNW's cost study and to assess a filing fee for actual costs not to exceed $100,000. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

Addendum


2. EL98-008 IN THE MATTER OF THE FILING BY NORTHERN STATES POWER COMPANY FOR APPROVAL OF AN ECONOMIC DEVELOPMENT PLAN. (Staff Analyst: Steve Wegman. Staff Attorney: Karen Cremer.)

Jim Wilcox, Northern States Power Company, explained the economic development plan.

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

The meeting was adjourned.

_____________________________
Shirleen Fugitt, Administrative Secretary