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South Dakota Public Utilities Commission Meeting
Thursday, October 15, 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, General Counsel Rolayne Ailts Wiest, Commission Advisor Greg Rislov, Staff Attorneys Karen Cremer and Camron Hoseck, Utility Analysts Harlan Best, Bob Knadle, Dave Jacobson, Steve Wegman, and Kylie Tracy, Engineer Martin Bettmann, Consumer Affairs Division Director Leni Healy, and Administrative Secretary Shirleen Fugitt.

Also present were Jim Wilcox, Northern States Power; Bob Miller, South Dakota Electric Utility Companies; Rich Coit, SDITC; Brenda Kleinjan, SDREA; Otto Doll and Denny Nincehelser, Bureau of Information and Telecommunications; Tom Geraets, Bureau of Administration; Mary Beth Crowe, Pierre, SD; Dawn Austin, White Owl, SD; and Earl Waterland, Marcus, SD.

Joining the meeting by phone were Susan Stewart and Paul Leighton, MidAmerican Energy; Dominick Sekich, Jerry Campbell and Mary Tribby, AT&T; Jennifer Erschen, Telecommunications Reports; Neil Schmid and Donna Bult, FirsTel; Larry Hettinger, LECA; Bill Heaston, DTG; Dave Saville, Martin & Associates; Mary Lohnes and Tom Simmons, Midco Communications; Tom Welk, John Devaney, and Colleen Sevold, U S WEST; Stuart Wevik, Black Hills Power & Light; Jan Newman, Bureau of Information and Telecommunications; Gwen Davis and Jack Brown, Golden West; Rusty Molstad, Northwestern Public Service; Lori Bult, EL98-020; Randy Kieffer, TC98-176; John Grant, TC98-149; Ellen Medicine Horn, EL98-021; and Margaret Nichols, Alexandria, SD.

Administration


1. Approval Of The Minutes Of The Commission Meeting Held On September 23, 1998. (Staff: Shirleen Fugitt.)

Commissioner Nelson moved to approve the minutes of September 23, 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.

Telecommunications


2. TC98-176 IN THE MATTER OF THE COMPLAINT FILED BY RANDY KIEFFER, STURGIS, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC., REGARDING SERVICE PROBLEMS. (Staff Attorney: Camron Hoseck. Consumer Representative: Leni Healy.)

Randy Kieffer explained his complaint against U S WEST for service problems and inability to have Caller ID. Colleen Sevold, U S WEST, noted that the cable which was originally above the ground has now been buried hat with the current system in that location, Caller ID will not be available. Mr. Hoseck recommended finding probable cause.

Commissioner Nelson moved to find probable cause. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

Electric


1. EL98-020 IN THE MATTER OF THE COMPLAINT BY LORI BULT, CROOKS, SOUTH DAKOTA, AGAINST NORTHERN STATES POWER COMPANY REGARDING POOR CUSTOMER SERVICE. (Staff Attorney: Camron Hoseck. Consumer Representative: Leni Healy.)

Lori Bult explained her complaint against Northern States Power for poor service. Jim Wilcox addressed the complaint on behalf of NSP and noted that he will visit the property tomorrow. Mr. Hoseck recommended finding probable cause.

Chairman Burg moved to find no probable cause. Commissioner Schoenfelder seconded. Commissioner Nelson dissented. Motion passed 2-1.

2. EL98-021 IN THE MATTER OF THE COMPLAINT BY ELLEN MEDICINE HORN, SIOUX FALLS, SOUTH DAKOTA AGAINST NORTHERN STATES POWER COMPANY REGARDING A CROSS WIRED METER. (Staff Attorney: Camron Hoseck. Consumer Representative: Leni Healy.)

Ms. Medicine Horn explained her complaint against Northern States Power regarding a cross wired meter. Mr. Wilcox noted that the company is correcting the situation and is willing to negotiate a payment arrangement with Ms. Medicine Horn. Mr. Hoseck recommended finding no probable cause.

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

Telecommunications (continued)

18. TC98-136 IN THE MATTER OF THE FILING BY ECONOPHONE, INC., FOR APPROVAL TO TRANSFER ITS CERTIFICATE OF AUTHORITY TO ITS WHOLLY-OWNED SUBSIDIARY, ECONOPHONE SERVICES, INC. (Staff Attorney: Karen Cremer. Staff Analyst: Dave Jacobson.)

Mr. Jacobson explained the filing and recommended approval with restrictions on prepaid calling cards, advance payments and deposits.

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

17. TC98-118 IN THE MATTER OF THE APPLICATION OF COLORADO RIVER COMMUNICATIONS CORPORATION D/B/A CRC LONG DISTANCE FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Attorney: Camron Hoseck. Staff Analyst: Kylie Tracy.)

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

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

16. TC98-110 IN THE MATTER OF THE APPLICATION OF NET2000 GROUP, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Attorney: Camron Hoseck. Staff Analyst: Kylie Tracy.)

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

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

Natural Gas and Electric


1. GE98-002 IN THE MATTER OF THE APPLICATION OF MIDAMERICAN ENERGY COMPANY FOR A STATEMENT TO THE SECURITIES AND EXCHANGE COMMISSION REGARDING INVESTMENT IN A FOREIGN UTILITY. (Staff Attorney: Camron Hoseck. Staff Analyst: Dave Jacobson.)

Susan Stewart, MidAmerican Energy, explained the application. Mr. Hoseck recommended approval of a statement to the Securities and Exchange Commission regarding investment in a foreign utility.

Commissioner Schoenfelder moved that a statement be issued to the Securities and Exchange Commission regarding investment in a foreign utility. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

Telecommunications (continued)

23. TC98-180 IN THE MATTER OF THE COMPLAINT FILED BY MITZI AND STEVE MOORE, WATERTOWN, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC., REGARDING DELAY IN SERVICE. (Staff Attorney: Karen Cremer. Consumer Representative: Leni Healy.)

Ms. Healy reported that the complaint has been resolved.

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

24. TC98-181 IN THE MATTER OF THE COMPLAINT FILED BY MICHAEL F. MEYER, WATERTOWN, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC., REGARDING DELAY IN SERVICE. (Staff Attorney: Camron Hoseck. Consumer Representative: Leni Healy.)

Ms. Healy noted that the complaint has been resolved.

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

3. 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.)

Mr. Hoseck reported that work has been completed on this project and recommended closing the docket.

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

22. TC98-179 IN THE MATTER OF THE COMPLAINT FILED BY BARRY AND DAWN AUSTIN, WHITE OWL, SOUTH DAKOTA, AGAINST GOLDEN WEST TELECOMMUNICATIONS COOPERATIVE, INC., REGARDING DISCRIMATORY INSTALLATION FEES. (Staff Attorney: Karen Cremer. Consumer Representative: Leni Healy.)

Dawn Austin explained her complaint against Golden West regarding discriminatory installation fees. Ms. Austin questioned Golden West's policy differences on installation fees for homes with and without permanent foundations. Gwen Davis and Jack Brown, both representing Golden West, addressed the complaint. Ms. Cremer recommended finding probable cause. Ms. Wiest also recommended finding probable cause.

Commissioner Schoenfelder moved to find probable cause. Chairman Burg seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

21. TC98-178 IN THE MATTER OF THE COMPLAINT FILED BY EARL WATERLAND, MARCUS, SOUTH DAKOTA, AGAINST GOLDEN WEST TELECOMMUNICATIONS COOPERATIVE, INC., REGARDING DISCRIMINATORY INSTALLATION FEES. (Staff Attorney: Karen Cremer. Consumer Representative: Leni Healy.)

Earl Waterland noted that he supports the complaint in TC98-179 and does not wish to be heard on a separate complaint.

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

19. TC98-149 IN THE MATTER OF THE COMPLAINT FILED BY LOWN HOUSE RESTAURANT, SPEARFISH, SOUTH DAKOTA, AGAINST AT&T COMMUNICATIONS OF THE MIDWEST, INC., REGARDING CONSUMER SERVICE ISSUES. (Consumer Representative: Leni Healy. Staff Attorney: Karen Cremer.)

John Grant clarified that his complaint is against AT&T and FirsTel. Ms. Cremer recommended finding probable cause.

Chairman Burg moved to find probable cause. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

1. TC96-184 IN THE MATTER OF THE PETITION FOR ARBITRATION ON BEHALF OF AT&T COMMUNICATIONS OF THE MIDWEST INC. WITH U S WEST COMMUNICATIONS, INC. (General Counsel: Rolayne Wiest.)

Commissioner Nelson moved to reconsider the Commission's decision of September 23, 1998, regarding AT&T's emergency motion for implementation of previous Commission orders or of undisputed portions of the interconnection agreement. Chairman Burg seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

Ms. Wiest recommended denial of AT&T's emergency motion.

Commissioner Nelson moved to deny AT&T's emergency motion. Chairman Burg seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

Commissioner Nelson made the following comments: In denying this motion, I want the record to reflect that this Commissioner views AT&T's Motion as being procedurally incorrect in that it is improperly linked with our responsibility to accept or reject an interconnection agreement and that should not be construed to be a determination of the merits of what AT&T asked for. That is to say, this action should not preclude AT&T from refiling this matter and I for one would entertain considering whether U S WEST should be required to install this as a facility necessary for the safety, convenience and accommodation of the public under SDCL 49-31-7.1 (2), whether access to U S WEST facilities should be compelled under SDCL 49-31-15 or SDCL 49-31-18, whether a remedy lies under our general powers to supervise and control telecommunications companies under SDCL 49-31-3 or upon other grounds.

Ms. Wiest explained the reasons for scheduling a hearing in this matter and proposed a hearing date.

Chairman Burg moved that a prehearing conference be held either in the afternoon of October 27 or the morning of October 28 and that a hearing be held commencing on November 17, 1998, and continuing through November 20, 1998, for this purpose. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

2. TC97-126 IN THE MATTER OF THE FILING BY U S WEST COMMUNICATIONS, INC. FOR APPROVAL OF AN INTERCONNECTION AGREEMENT BETWEEN U S WEST COMMUNICATIONS, INC. AND DAKOTA TELECOM, INC. AND DAKOTA TELECOMMUNICATIONS SYSTEMS, INC. (Staff Attorney: Camron Hoseck.)

Mr. Hoseck recommended approval.

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

TC98-151 IN THE MATTER OF THE FILING BY AT&T COMMUNICATIONS OF THE MIDWEST, INC., FOR APPROVAL OF AT&T DIGITAL LINK SERVICE. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Action was deferred.

Miscellaneous


2. MS98-001 IN THE MATTER OF THE REQUEST FOR A SURVEY ON UTILITIES' YEAR 2000 READINESS. (Analyst Intern: Kylie Tracy. Staff Engineer: Martin Bettmann.)

Commission Staff presented its findings, based upon the responses of the utilities that returned the survey, to the Commission. Ms. Tracy presented Staff's recommendations.

Commissioner Schoenfelder moved to adopt Staff's recommendations as follow and that the recommendations be sent to the companies in the form or an order.

That Commission Staff follow up on responses not yet received from the local cooperatives, independents, municipals and competitive local exchange companies. The outstanding responses must be returned by November 1, 1998.

In March 1999, a follow-up survey be administered to examine the current state of the process each utility is then in. All remediation efforts should be complete.

In July 1999, utilities will be required to report what stage of the process the utility is at. All remediated parts will be complete by July, 1999. Contingency plans will also be in place by July, 1999.

All the utilities shall inform their customers of Y2K issues and the utilities' contingency plan should problems arise on January 1, 2000.

All utilities shall document all test results and remediation efforts throughout the preparation process.

Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

1. MS95-002 IN THE MATTER OF THE INQUIRY CONCERNING EMERGENCY NOTIFICATION PROCEDURES OF SOUTH DAKOTA ELECTRIC, TELEPHONE, AND NATURAL GAS UTILITIES IN THE EVENT OF AN OUTAGE OR DISASTER. (Staff Engineer: Martin Bettmann. Staff Attorney: Camron Hoseck.)

Mr. Hoseck presented an update on the inquiry.

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

Telecommunications (continued)

4. 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.)

Chairman Burg moved to approve according to Staff's memo. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

5. 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 Schoenfelder moved to approve according to Staff's memo. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

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

Chairman Burg moved to approve according to Staff's memo. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

7. 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 Schoenfelder moved to approve according to Staff's memo. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.


8. 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 approve according to Staff's memo. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

9. 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 Schoenfelder moved to approve according to Staff's memo. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

10. 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 Nelson moved to approve according to Staff's memo. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

11. 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 Schoenfelder moved to approve according to Staff's memo. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

12. 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 Nelson moved to approve according to Staff's memo. Chairman Burg seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

13. 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 approve according to Staff's memo. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

14. 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.)

Commissioner Schoenfelder moved to approve according to Staff's memo. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

15. 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 approve according to Staff's memo. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

The meeting was adjourned.

_____________________________
Shirleen Fugitt
Administrative Secretary