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South Dakota Public Utilities Commission Meeting
Tuesday, August 4, 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. Present were Commissioner Pam Nelson, Commissioner Laska Schoenfelder, Executive Director Bill Bullard, Deputy Director Sue Cichos, General Counsel Rolayne Ailts Wiest, Commission Advisor Greg Rislov, Staff Attorney Karen Cremer, Utility Analysts Harlan Best, Bob Knadle and Dave Jacobson, Consumer Representative Leni Healy, Legal Intern Ethan Meaney, Analyst Intern Kylie Tracy, and Administrative Secretary Shirleen Fugitt.

Also present were Bob Mercer, Rapid City Journal; Al Lundy, South Dakota Public Radio; Chet Brokaw, Associated Press; Kyle White, Black Hills Power & Light; and Ron Holsteen and Brenda Kleinjan, South Dakota Rural Electric Association.

Joining the meeting by phone were Brad Schardin and John Gubbrud, Lincoln-Union Electric; Debbie Keim and Mike Bradley, Utilicorp; Joe Wolfe, Rainbow Energy Marketing; Colleen Sevold and Tom Welk, U S WEST; Roger Specht, Gemini Companies; Susan Bachman, Northwestern Public Service; Bob Marquez, AT&T; Lance Nixon, Aberdeen American News; Duane Muxen, complainant in NG98- 003; Doug Kuper, complainant in EL98-005; and Brent Barton, complainant in TC98-137.

Chairman Burg introduced Kylie Tracy, the Commission's new analyst intern.

Administration


1. Approval Of The Minutes Of The Two Commission Meetings Held On July 23, 1998. (Staff: Shirleen Fugitt.)

Commissioner Nelson moved to approve the minutes of the Commission Meetings held on July 23, 1998, subject to the following changes: On page 2, under Natural Gas, Item 1, NG98-003, Mr. Jacobson requested deferral on behalf of Duane Muxen, the complainant; and on the same page under Natural Gas, Item 2, NG98-006, Mr. Jacobson's recommendation should be "approval of the refund plan which defers implementation of the refund until MidAmerican determines appellate action on the refund is final or for a maximum of one year at which time MidAmerican would update the plan." Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

Consumer Affairs


Charlene "Char" Lund has joined the Commission's Consumer Affairs Division. Char will be assisting with consumer complaints and inquiries.

Ms. Healy presented an update on 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.)

Mr. Jacobson requested deferral on behalf of Terry Sabers, Muth Electric. Action was deferred.

2. EL98-005 IN THE MATTER OF THE COMPLAINT FILED BY DOUGLAS L. KUPER, LENNOX, SOUTH DAKOTA, AGAINST LINCOLN-UNION ELECTRIC COMPANY REGARDING STRAY VOLTAGE. (Consumer Representative: Leni Healy. Staff Attorney: Karen Cremer.)

Commissioner Nelson moved that the motion to dismiss be denied with the following condition: Consistent with the previous correspondence forwarded by acting commission counsel, the parties should within 10 days of the entry of an Order of denial in this case let acting commission counsel know an approximate amount of time necessary for preparation of their respective cases so that an orderly scheduling process can take place. Commissioner Schoenfelder seconded. Chairman Burg dissented. Motion passed 2-1.

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.)

Comments were heard regarding the Department of Revenue's failure to cooperate in this matter.

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

Telecommunications


1. TC97-173 IN THE MATTER OF THE APPLICATION OF VISTA COMMUNICATIONS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

Mr. Meaney recommended withdrawal of the application and closing the docket.

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

2. TC98-070 IN THE MATTER OF THE APPLICATION OF PRIMECALL, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

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

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

3. TC98-077 IN THE MATTER OF THE APPLICATION OF ELIAS VENTURES, INC., D/B/A AMERICAN FREEWAY100 FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

Mr. Meaney recommended approval of the application.

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

4. TC98-103 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR BERESFORD MUNICIPAL TELEPHONE COMPANY. (Staff Attorney: Karen Cremer. Staff Analyst: Bob Knadle.)

Ms. Cremer recommended assessing a filing fee not to exceed $100,000.

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

5. TC98-104 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR UNION TELEPHONE COMPANY. (Staff Attorney: Karen Cremer. Staff Analyst: Greg Rislov.)

Ms. Cremer recommended assessing a filing fee not to exceed $100,000.

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

6. TC98-105 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR BALTIC TELEPHONE COOPERATIVE. (Staff Attorney: Karen Cremer. Staff Analyst: Harlan Best.)

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

7. TC98-106 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR GOLDEN WEST TELECOMMUNICATIONS COOPERATIVE, INC. (Staff Attorney: Karen Cremer. Staff Analyst: Bob Knadle.)

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

8. TC98-109 IN THE MATTER OF THE REQUEST FOR PUBLIC COMMENTS ON PUBLIC INTEREST PAYPHONES. (Staff Attorney: Karen Cremer. Staff Analyst: Harlan Best.)

Ms. Cremer noted that the public interest does not warrant action by the Commission at this time.

Chairman Burg made this motion: I move that the Commission find that it need not take any action at this time to set up a funding mechanism for public interest payphones. The Commission opened this docket to decide whether any steps need to be taken to ensure that payphones serving important public interest will continue to exist in light of the elimination of subsidies and other competitive provisions established pursuant to section 276 of the 1996 federal Act. Some of the parties commenting in this docket suggested that the Commission first allow the marketplace to work to meet payphone needs and only upon failure of the marketplace should the Commission establish a funding mechanism for public interest payphones. I move that the Commission adopt this approach. The Commission should encourage anyone that knows of specific needs for public interest payphones to contact the Commission. If in the future evidence is presented to indicate a need, this issue will be re- addressed. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

9. TC98-125 IN THE MATTER OF THE FILING BY U S WEST COMMUNICATIONS, INC., FOR APPROVAL OF REVISIONS TO ITS ACCESS SERVICE TARIFF. (Staff Analyst: Harlan Best. Legal Intern: Ethan Meaney.)

Colleen Sevold, U S WEST, explained the filing. Mr. Best recommended approval.

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

10. TC98-126 IN THE MATTER OF THE APPLICATION OF U.S. NETWORK SERVICES, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

Mr. Meaney recommended approval with restrictions on prepaid calling cards, advance payments and deposits.

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

11. TC98-137 IN THE MATTER OF THE COMPLAINT FILED BY BRENT AND DAWN BARTON, MINA, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING UPDATING LINES. (Consumer Representative: Leni Healy. Legal Intern: Ethan Meaney.)

Mr. Barton explained his complaint against U S WEST, which was essentially the same complaint filed by other residents of Mina, South Dakota.

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

Addendum


1. EL98-014 IN THE MATTER OF THE FILING BY MOREAU-GRAND ELECTRIC COOPERATIVE INC. AND THE CITY OF MCLAUGHLIN FOR APPROVAL OF CONSENT AND AGREEMENT FOR ELECTRIC SERVICE IN ASSIGNED TERRITORY OF ANOTHER ELECTRIC SUPPLIER. (Staff Engineer: Martin Bettmann. Legal Intern: Ethan Meaney.)

Mr. Meaney explained the filing and recommended approval.

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