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South Dakota Public Utilities Commission Meeting
Thursday, June 11, 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. 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 and Steve Wegman, Consumer Representative Leni Healy, Business Manager Sue Cichos, Legal Intern Ethan Meaney and Administrative Secretary Shirleen Fugitt.

Joining the meeting by phone were Mike Bradley, Utilicorp; Bill Heaston, Dakota Telecommunications Group; Lynn Frosch, Netel, Inc.; Mary Lohnes, Midco Communications; Colleen Sevold, U S WEST; Neil Schmid, FirsTel; Terry Sabers, Muth Electric; and Alan Dietrich and Dave Monaghan, Northwestern Public Service.

Administration


1. Approval Of The Minutes Of The Commission Meeting Held On May 28, 1998. (Staff: Shirleen Fugitt.)

Commissioner Nelson moved to approve the minutes of the May 28, 1998, Commission Meeting. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

Leni Healy presented an update on consumer complaints and inquiries received since the last Commission meeting.

Electric


1. EL98-002 IN THE MATTER OF THE COMPLAINT FILED BY PAUL MUTH, MITCHELL, SOUTH DAKOTA, AGAINST NORTHWESTERN PUBLIC SERVICE COMPANY REGARDING AN ACCOUNTING OF COSTS. (Staff Analyst: Dave Jacobson. Staff Attorney: Karen Cremer.)

Following comments from both parties and Dave Jacobson of PUC Staff, action was deferred.

Natural Gas


1. NG98-005 IN THE MATTER OF THE PETITION OF UTILICORP UNITED INC. FOR A STATEMENT TO THE SECURITIES AND EXCHANGE COMMISSION REGARDING INVESTMENT IN A FOREIGN UTILITY. (Staff Analyst: Dave Jacobson. Staff Attorney: Camron Hoseck.)

Mike Bradley representing Utilicorp, explained the request. Mr. Hoseck recommended approval of the statement to the Securities and Exchange Commission with following conditions:

This certification is limited to the proposed Utilicorp foreign utility company investments in the filing with a maximum amount to be spent thereon being five hundred million United States dollars.

In the event Utilicorp acquires interests in foreign utility companies and the sum total of these acquisitions exceed the amount of five hundred million United States dollars upon which this certification is premised, Utilicorp shall provide advance notification to the South Dakota Public Utilities Commission of its intent to acquire those interests in foreign utility companies and it shall obtain separate certification for any such additional investment.

Utilicorp will not encumber any South Dakota property because of these foreign investments.

Neither Utilicorp nor any of its current or future subsidiaries or affiliates will ever seek to recover, either directly or indirectly, from South Dakota ratepayers through any regulated utility rates of any costs, expenses or losses of any nature whatsoever which may result from this or any other investment in foreign utility companies.

This certification is conditioned on and subject to being removed or withdrawn at any time by the Commission as to any future foreign utility company investments if the Commission deems such action is warranted.

Commissioner Nelson moved to approve the statement to the Securities and Exchange Commission subject to the five conditions noted above. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

Telecommunications


1. TC97-018 IN THE MATTER OF THE APPLICATION OF ATCALL, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

Mr. Hoseck recommended denial of this application based upon lack of bonding.

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

2. TC97-112 IN THE MATTER OF THE APPLICATION OF CAPROCK COMMUNICATIONS CORP. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

Ms. Cremer noted that the company has requested the withdrawal of this application.

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

3. TC97-140 IN THE MATTER OF THE APPLICATION OF ONE CALL TELECOM, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES, INCLUDING LOCAL EXCHANGE SERVICE, IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

Mr. Hoseck recommended denial of this application based upon failure of the company to respond to data requests.

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

4. TC97-158 IN THE MATTER OF THE APPLICATION OF UNITED SERVICES TELEPHONE, LLC FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

Ms. Cremer requested deferral. Action was deferred.

5. TC97-164 IN THE MATTER OF THE APPLICATION OF DTG COMMUNITY TELEPHONE, INC FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES, INCLUDING LOCAL EXCHANGE SERVICES, IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

Bill Heaston, Dakota Telecommunications Group, explained the application. Ms. Cremer recommended approval with rural safeguards and a waiver to ARSD 20:10:24:02 (8) and (12).

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


6. TC97-170 IN THE MATTER OF THE APPLICATION OF ITELSA (USA), INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

Mr. Hoseck recommended denial of the application based on failure of the company to respond to data requests.

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

7. TC98-015 IN THE MATTER OF THE APPLICATION OF FACILICOM INTERNATIONAL, LLC FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

Mr. Hoseck recommended approval.

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

8. TC98-056 IN THE MATTER OF THE APPLICATION OF NORTH DAKOTA LONG DISTANCE FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

Mr. Hoseck recommended approval.

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

9. 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.)

Ms. Cremer recommended approval .

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

10. TC98-095 IN THE MATTER OF THE APPLICATION OF NETEL, INC. D.B.A. TEL3 FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Harlan Best. Staff Attorney: Camron Hoseck.)

Lynn Frosch of Netel, Inc., explained the application. Mr. Best presented further explanation and recommended approval.

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

11. TC98-097 IN THE MATTER OF THE FILING BY SOUTH DAKOTA INDEPENDENT TELEPHONE COALITION FOR APPROVAL OF RECIPROCAL TRANSPORT AND TERMINATION AGREEMENT BETWEEN COMMNET CELLULAR, INC., AND BROOKINGS MUNICIPAL TELEPHONE COMPANY. (Staff Analyst: All Staff. Staff Attorney: Karen Cremer.)

Ms. Cremer recommended approval.

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

12. TC98-098 IN THE MATTER OF THE FILING BY SOUTH DAKOTA INDEPENDENT TELEPHONE COALITION FOR APPROVAL OF RECIPROCAL TRANSPORT AND TERMINATION AGREEMENT BETWEEN COMMNET CELLULAR, INC., AND KADOKA TELEPHONE COMPANY. (Staff Analyst: All Staff. Legal Intern: Ethan Meaney.)

Mr. Meaney recommended approval.

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

The meeting was adjourned.

_______________________________
Shirleen Fugitt
Administrative Secretary