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South Dakota Public Utilities Commission Meeting
Thursday, July 23, 1998; 1:30 P.M.
State Capitol Building, Room 412
Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING


Chairman Jim Burg called the meeting to order at 1:30 p.m. Present were Commissioner Pam Nelson, Commissioner Laska Schoenfelder, Executive Director Bill Bullard, Deputy Director Sue Cichos, Commission Advisor Greg Rislov, General Counsel Rolayne Ailts Wiest, Staff Attorney Camron Hoseck, Legal Intern Ethan Meaney, Consumer Representative Leni Healy, Utility Analysts Harlan Best, Dave Jacobson, and Tammi Stangohr, and Administrative Secretary Shirleen Fugitt.

Also present were Bob Mercer, Rapid City Journal; Dave Gerdes, MCI; Mutch Usera, Black Hills Power & Light; Ron Holsteen and Brenda Kleinjan, South Dakota Rural Electric Association; Geoff Heig, Watertown Municipal Utilities; and LeRoy Bergan, Tom Burns and Gene Ward, Codington-Clark Electric Cooperative.

Joining the meeting by phone were Mary Lohnes and Tom Simmons, Midco Communications; Bill Heaston, Dakota Telecommunications Group; Martin Weeks, City of Vermillion; Colleen Sevold, Phil Wilson and Tom Welk, U S WEST Communications; John Nooney, Black Hills Power & Light; Mike Bradley, Ft. Randall Telephone and Peoples Natural Gas; Debbie Keim, Peoples Natural Gas; Neil Schmid and Amy Ibis, FirsTel; John Gors, Clay-Union Electric; Mark Ayotte, Rural Cellular Corporation and Midwestern Wireless Communications; Loren Hiatt, AT&T; Jim Wilcox, Northern States Power; Terry Sabers, Muth Electric; Bill Braun, Reconex; Marv Sorenson and Susan Stewart, MidAmerican Energy; Susan Anderson Bachman and Dave Monaghan, Northwestern Public Service; Wilson Pipestem, Tel-Save; Judy Mathison, complainant in EL98-018; Susan Schamber, complainant in TC98-123; Denise Broveak, complainant in TC98-130; and Jim Van'tLand, Nemo, South Dakota.

Chairman Burg introduced Charlene Lund, the Commission's new Assistant Consumer Representative.

Administration


1. Approval Of The Minutes Of The Commission Meetings Held On June 30 and July 1, 1998. (Staff: Shirleen Fugitt.)

Commissioner Nelson moved to approve the minutes of June 30, and July 1, 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 Affairs: Leni Healy.)

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

Electric


1. EL97-020 IN THE MATTER OF THE APPLICATION OF THE CITY OF VERMILLION FOR DETERMINATION OF PURCHASE PRICE OF ELECTRIC FACILITIES IN ANNEXED AREAS. (Staff Analyst: Greg Rislov. Staff Attorney: Karen Cremer.)

Martin Weeks, representing the City of Vermillion, explained that the City and Clay-Union Electric have reached an agreement and are requesting approval of that stipulated agreement.

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

2. 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.)

Terry Sabers, representing Muth Electric, explained the complaint regarding an accounting of costs. Dave Monaghan, representing Northwestern Public Service, addressed the complaint. Mr. Jacobson recommended finding no probable cause.

Chairman Burg moved to find no probable cause. The motion died for lack of a second.

Commissioner Nelson moved to find probable cause. The motion died for lack of a second.

Action was deferred.

3. 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.)

Mr. Hoseck explained the complaint and recommended deferral. John Nooney of Black Hills Power & Light stated that the company is willing to release the territory to e Electric.

Chairman Burg moved to find no probable cause and to close the docket. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

4. EL98-006 IN THE MATTER OF THE FILING BY BLACK HILLS POWER AND LIGHT COMPANY FOR APPROVAL OF ITS 1998 ECONOMIC DEVELOPMENT PLAN AND 1997 ECONOMIC DEVELOPMENT ANNUAL REPORT. (Staff Analyst: Bob Knadle. Staff Attorney: Camron Hoseck.)

Mutch Usera of Black Hills Power & Light requested approval of the 1998 economic development plan and 1997 report. Mr. Hoseck recommended approval.

Commissioner Schoenfelder moved to approve the 1998 economic development plan and 1997 report. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

5. EL98-009 IN THE MATTER OF THE FILING BY SIOUX VALLEY - SOUTHWESTERN ELECTRIC COOPERATIVE FOR APPROVAL OF JOINT REQUEST FOR ELECTRIC SERVICE TERRITORY EXCEPTION BETWEEN SIOUX VALLEY - SOUTHWESTERN ELECTRIC COOPERATIVE AND NORTHERN STATES POWER COMPANY. (Staff Engineer: Martin Bettmann. Legal Intern: Ethan Meaney.)

Jim Wilcox representing Northern States Power explained the filing and requested approval.

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


6. EL98-011 IN THE MATTER OF THE FILING BY TURNER-HUTCHINSON ELECTRIC COOPERATIVE, INC. FOR APPROVAL OF EXCEPTION TO SERVICE ON ASSIGNED AREAS BETWEEN TURNER-HUTCHINSON ELECTRIC COOPERATIVE, INC. AND LINCOLN-UNION ELECTRIC COMPANY. (Staff Analyst: Martin Bettmann. Staff Attorney: Camron Hoseck.)

Mr. Hoseck recommended approval.

Chairman Burg moved to approve the Exception to Service on Assigned Areas. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.


7. EL98-017 IN THE MATTER OF THE FILING BY CODINGTON-CLARK ELECTRIC COOPERATIVE, INC., AND THE CITY OF WATERTOWN, SOUTH DAKOTA, FOR APPROVAL OF AGREEMENT TO MODIFY ASSIGNED SERVICE AREA. (Staff Engineer: Martin Bettmann. Staff Attorney: Camron Hoseck.)

Tom Burns, attorney for Codington-Clark Electric Cooperative Inc., requested approval of the filing. Mr. Hoseck addressed the filing and recommended approval.

Chairman Burg moved to approve the filing. The motion died for lack of a second.

Commissioner Schoenfelder moved to approve the filing subject to the inclusion of a July 23, 2001, termination date. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

8. EL98-018 IN THE MATTER OF THE COMPLAINT FILED BY JUDY MATHISON, SIOUX FALLS, SOUTH DAKOTA, AGAINST NORTHERN STATES POWER COMPANY REGARDING DISCONNECTION. (Consumer Representative: Leni Healy. Legal Intern: Ethan Meaney.)

Judy Mathison explained her complaint against Northern States Power. Jim Wilcox addressed the complaint on behalf of NSP.

Commissioner Schoenfelder moved to dismiss the complaint. Chairman Burg seconded and Commissioner Nelson 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.)

Mr. Jacobson requested deferral. Action was deferred.

2. NG98-006 IN THE MATTER OF THE FILING BY MIDAMERICAN ENERGY COMPANY FOR APPROVAL OF WAIVER OF REFUND PLAN RELATING TO KANSAS AD VALOREM TAX REFUNDS RECEIVED FROM NORTHERN NATURAL GAS COMPANY. (Staff Analyst: Dave Jacobson. Staff Attorney: Camron Hoseck.)

Marv Sorenson, MidAmerican Energy, explained the filing. Mr. Jacobson presented further explanation and recommended deferral of the implementation of the refund plan.

Chairman Burg moved to grant MidAmerican's request to defer implementation of the refund plan. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

Telecommunications


1. TC96-153 IN THE MATTER OF THE INVESTIGATION OF LOCAL COMPETITION ISSUES. (Staff Attorneys: Camron Hoseck and Karen Cremer.)

Ms. Wiest recommended closing this docket.

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

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

Commissioner Schoenfelder moved to approve the application contingent upon receipt of a Certificate of Authority from the Secretary of State. Motion passed 3-0.


3. 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.)

Bill Braun representing Reconex explained the request for a rehearing of the Order Denying a Certificate of Authority.

Commissioner Nelson moved to grant a rehearing of the Order Denying a Certificate of Authority. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

4. TC97-178 IN THE MATTER OF THE COMPLAINT FILED BY BEN HOFER, CARPENTER, SD, AGAINST U S WEST COMMUNICATIONS, INC., REGARDING UPDATING LINES. (Staff Analyst: Steve Wegman. Staff Attorney: Camron Hoseck.)

Tom Welk explained the motion by U S WEST to extend the completion date to October 31, 1998. Mr. Hoseck recommended granting U S WEST's Motion so long as the deadline was contained in an Order and requested that the company send a representative to visit with the family member who resides on the property.

Commissioner Schoenfelder moved to grant an extension to September 1, 1998. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

5. 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.)

Ms. Healy noted that U S WEST has completed the work required of them and that she has been unable to reach Mr. Jacobs to ask if his complaint has been satisfied.

Commissioner Schoenfelder moved to close the docket. Chairman Burg seconded.

Commissioner Nelson made a substitute motion to leave the docket open until Mr. Jacobs has been contacted. Chairman Burg seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

6. TC98-096 IN THE MATTER OF THE TYPE 2 WIRELESS INTERCONNECTION AGREEMENT BETWEEN U S WEST COMMUNICATIONS, INC., AND RURAL CELLULAR CORPORATION. (Staff Attorney: Camron Hoseck.)

Mark Ayotte, Midwest Wireless Communications, explained the agreement. Mr. Hoseck recommended approval contingent upon the parties amending their agreement to bring it into compliance with the laws of the state of South Dakota and that Rural Cellular complete the necessary forms and pay gross receipts tax.

Chairman Burg moved to approve the agreement contingent upon the parties amending their agreement to bring it into compliance with the laws of the state of South Dakota and that Rural Cellular complete the necessary forms and pay gross receipts tax. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

15. TC98-123 IN THE MATTER OF THE COMPLAINT FILED BY SUSAN SCHAMBER, FREEMAN, SOUTH DAKOTA, AGAINST DAKOTA TELECOMMUNICATIONS GROUP, INC. REGARDING INTERNET SERVICES. (Staff Analyst: Steve Wegman. Staff Attorney: Camron Hoseck.)

Susan Schamber explained her complaint against Dakota Telecommunications Group regarding internet services. Bill Heaston, DTG, reported that the problem lies with Golden West's circuit and stated that he doesn't believe the Commission has jurisdiction over internet complaints. Mr. Hoseck recommended that Golden West be brought into this matter and that the matter be brought to hearing. Ms. Wiest noted that she believes the Commission does not have jurisdiction over internet providers and stated that Ms. Schamber may file a new complaint against Golden West. Ms. Wiest recommended that Staff approach the parties regarding mediation and report to the Commission at the next meeting. Action was deferred.

20. TC98-130 IN THE MATTER OF THE COMPLAINT FILED BY DENISE BROVEAK, NEMO, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING ADDITIONAL LINES. (Consumer Representative: Leni Healy. Legal Intern: Ethan Meaney.)

Denise Broveak explained her complaint against U S WEST regarding installation of service. Jim Van't Land, a neighbor of the Broveaks, also addressed the complaint. Colleen Sevold, U S WEST, reported that the project will be completed by August 15, 1998. Action was deferred.

7. TC98-099 IN THE MATTER OF THE FILING OF TYPE 2 WIRELESS INTERCONNECTION AGREEMENT BETWEEN U S WEST COMMUNICATIONS, INC. AND MIDWEST WIRELESS COMMUNICATIONS L.L.C. AND SWITCH 2000 L.L.C. (Legal Intern: Ethan Meaney.)

Mark Ayotte, Rural Cellular Corporation, explained the agreement. Mr. Hoseck recommended approval contingent upon the parties amending their agreement to bring it into compliance with the laws of the state of South Dakota and that Midwest Wireless Communications complete the necessary forms and pay gross receipts tax.

Chairman Burg moved to approve the agreement contingent upon the parties amending their agreement to bring it into compliance with the laws of the state of South Dakota and that Midwest Wireless Communications complete the necessary forms and pay gross receipts tax. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

8. TC98-101 IN THE MATTER OF THE APPLICATION OF BLACK HILLS FIBER SYSTEMS, INC., FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Dave Jacobson. Legal Intern: Ethan Meaney.)

John Nooney, Black Hills Fiber Systems, Inc., requested approval of the application. Mr. Jacobson explained the application and recommended approval with rural safeguard language and an October 1, 1998, deadline for filing a tariff.

Commissioner Schoenfelder moved to approve the application with rural safeguard language and an October 1, 1998, deadline for filing a tariff. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.


9. TC98-102 IN THE MATTER OF THE APPLICATION OF COMCAST TELECOMMUNICATIONS, INC. D/B/A COMCAST LONG DISTANCE FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

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.

10. TC98-111 IN THE MATTER OF THE FILING BY DAKOTA TELECOM, INC., FOR DESIGNATION AS AN ELIGIBLE TELECOMMUNICATIONS CARRIER. (Staff Analyst: Harlan Best. Staff Attorney: Camron Hoseck.)

Ms. Wiest recommended approval of intervention by Ft. Randall Telephone Company and SDITC and to direct the executive director to set a procedural schedule.

Commissioner Schoenfelder moved to grant intervention to Ft. Randall Telephone Company and SDITC and to direct the executive director to set a procedural schedule. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

11. TC98-115 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 FORT RANDALL TELEPHONE COMPANY. (Legal Intern: Ethan Meaney.)

Ethan Meaney recommended approval of this filing along with TC98-116 and TC98-117.

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

12. TC98-116 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 Jefferson Telephone Company. (Legal Intern: Ethan Meaney.)

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

13. TC98-117 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 TRI-COUNTY TELCOM, INC. (Legal Intern: Ethan Meaney.)

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

14. TC98-120 IN THE MATTER OF THE APPLICATION OF HJN TELECOM, INC., FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Harlan Best. Staff Attorney: Camron Hoseck.)

Mr. Best explained the application and recommended approval.

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

16. TC98-124 IN THE MATTER OF THE COMPLAINT FILED BY DON MALSOM AND JENNY MALSOM, MINA, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING UPDATING LINES. (Staff Analyst: Steve Wegman. Staff Attorney: Karen Cremer.)

Colleen Sevold, U S WEST, presented an update on the work being done by U S WEST to resolve this issue.

Commissioner Schoenfelder moved to find probable cause and to defer action until after October 31, 1998. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

17. TC98-127 IN THE MATTER OF THE COMPLAINT FILED BY TEL-SAVE, INC. AGAINST U S WEST COMMUNICATIONS, INC. REGARDING VIOLATION OF SECTIONS 201(B) AND 202 OF THE COMMUNICATIONS ACT OF 1934, AS AMENDED, AND VIOLATION OF S.D. CODIFIED LAWS SECTION 49-31-11. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Mr. Best requested deferral until August 10, 1998.

Commissioner Schoenfelder moved to defer until August 10, 1998. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

18. TC98-128 IN THE MATTER OF THE COMPLAINT FILED BY PAUL MALSOM, MINA, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING UPDATING LINES. (Consumer Representative: Leni Healy. Legal Intern: Ethan Meaney.)

Commissioner Schoenfelder moved to find probable cause and defer action until after October 31, 1998. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3- 0.

19. TC98-129 IN THE MATTER OF THE COMPLAINT FILED BY DALE AND LINDA BROOKS, MINA, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING UPDATING LINES. (Consumer Representative: Leni Healy. Legal Intern: Ethan Meaney.)

Commissioner Schoenfelder moved to find probable cause and defer action until after October 31, 1998. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

21. TC98-133 IN THE MATTER OF THE COMPLAINT FILED BY MARIAN C. BROOKS, MINA, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING UPDATING LINES. (Consumer Representative: Leni Healy. Legal Intern: Ethan Meaney.)

Commissioner Schoenfelder moved to find probable cause and defer action until after October 31, 1998. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

The meeting was adjourned.

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Shirleen Fugitt, Administrative Secretary