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South Dakota Public Utilities Commission Meeting
Wednesday, May 12, 1999; 1:30 P.M.
State Capitol Building, Room LCR#1
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 Executive Director Sue Cichos, General Counsel Rolayne Ailts Wiest, Commission Advisor Greg Rislov, Staff Attorneys Karen Cremer and Camron Hoseck, Telecommunications Analyst Harlan Best, Utility Analysts Bob Knadle and Dave Jacobson, Consumer Representative Leni Healy, Transportation/Warehouse Division Director Jeff Lorensen and Administrative Secretary Shirleen Fugitt.

Also present were Lori Grode, Pierre Court Reporting; Mike Shaw, Heartland Telecommunications; Lawrence Klein, and Milton Klein, complainants from Valentine, Nebraska; Rich Coit, SDITC; Sandy Hofstetter, AT&T; Brenda Kleinjan, SDREA; and Chet Brokaw, The Associated Press.

Joining the meeting by phone were Bill Heaston, DTG; Loretta Calabro and Lee Darrington, Telec Consulting; Colleen Sevold, Ed Peters and Tom Welk, U S WEST; Brad Schardin, Lincoln-Union Electric; Steve Wegman, Governor's Office of Operations; and the following complainants Jim Frankenstein, JoAnn Klein, Douglas Kuper, Constance Johnson, Loretta Spears, and Margaret Figert.

Administration

1. Approval Of The Minutes Of The Commission Meeting Held On April 26, 1999. (Staff: Shirleen Fugitt.)

Commissioner Nelson moved to approve the minutes of April 26, 1999. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

Consumer Issues

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

Addendum


2. TC99-032 IN THE MATTER OF THE FILING FOR APPROVAL OF AN INTERCONNECTION AGREEMENT BETWEEN CITY OF HAWARDEN AND HEARTLAND TELECOMMUNICATIONS COMPANY OF IOWA. (Staff Attorney: Camron Hoseck.)

Mike Shaw, Heartland Telecommunications Company, explained the filing. Mr. Hoseck recommended approval.

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

5. TC98-183 IN THE MATTER OF THE COMPLAINT FILED BY SHERYL L. KLEIN, VALENTINE, NEBRASKA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING POOR SERVICE AND REQUEST TO HAVE LINES UPDATED. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

6. TC98-184 IN THE MATTER OF THE COMPLAINT FILED BY JOANN C. KLEIN, VALENTINE, NEBRASKA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING POOR SERVICE AND REQUEST TO HAVE LINES UPDATED. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

7. TC98-199 IN THE MATTER OF THE COMPLAINT FILED BY LAWRENCE KLEIN, VALENTINE, NEBRASKA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING POOR SERVICE AND REQUEST TO HAVE LINES UPDATED. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

8. TC98-212 IN THE MATTER OF THE COMPLAINT FILED BY MARGARET FIGERT, MISSION, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING POOR SERVICE AND REQUEST TO HAVE LINES UPDATED. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Ed Peters, U S WEST, reported on the work that is being done to resolve these complaints and noted that the company anticipates completion by the end of May. Sheryl Klein, Milton Klein, JoAnn Klein, Lawrence Klein and Margaret Figert each reported on difficulties they have experienced with their phone service since the Commission held a hearing on February 3, 1999. Mr. Hoseck recommended the Commission require a June 1, 1999, deadline for completion of the work and the testing.

Commissioner Nelson moved that the cable be in place and testing completed by June 8, 1999. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.


Ms. Wiest stated that the Commission may put U S WEST on notice that if the work is not completed by the June 8, 1999 deadline, a fine will be imposed.

4. TC98-155 IN THE MATTER OF THE COMPLAINT FILED BY LORETTA SPEAR, HILL CITY, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING UPDATING LINES. (Staff Attorney: Karen Cremer. Consumer Representative: Leni Healy.)

Ed Peters, U S WEST, reported on the work being done to resolve this complaint. Ms. Spears reported that she has experienced improvement in her phone service since the December 5, 1998, hearing. Ms. Wiest recommended that an update be heard at the June 8, 1999, Commission meeting.

Chairman Burg moved that U S WEST provide adequate service by June 8, 1999. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

3. CT99-004 IN THE MATTER OF THE COMPLAINT FILED BY JAMES FRANKENSTEIN, REDFIELD, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING POOR SERVICE AND REQUEST TO HAVE LINES UPDATED. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Mr. Frankenstein explained the problems he experiences with his telephone service. Colleen Sevold, U S WEST, noted that the company is investigating the complaint. Mr. Hoseck recommended finding probable cause.

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

2. CT99-003 IN THE MATTER OF THE COMPLAINT FILED BY CONSTANCE JOHNSON, SIOUX FALLS, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING DISPUTED BILLING. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Constance Johnson explained her complaint against U S WEST regarding billing. Colleen Sevold, U S WEST, reported that all charges for U S WEST advertising have been removed. Mr. Hoseck recommended that probable cause be found as to billing and long distance aspects of the complaint and no probable cause be found on the U S WEST Dex billing. Ms. Wiest recommended deferral.

Commissioner Schoenfelder moved that the matter be deferred to see if a resolution could be reached by June 8, 1999. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

1. TC98-197 IN THE MATTER OF THE APPLICATION OF INTERNET TELEPHONE COMPANY 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 with restrictions on prepaid calling cards, deposits and advance payments.

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

2. TC99-001 IN THE MATTER OF THE FILING FOR APPROVAL OF TRANSFER OF CERTIFICATE OF AUTHORITY FROM MIDCOM COMMUNICATIONS, INC. TO WINSTAR WIRELESS, INC. (Staff Analyst: Harlan Best. Staff Attorney: Camron Hoseck.)

Mr. Best explained the filing and recommended approval contingent upon receipt of a surety bond.

Commissioner Schoenfelder moved to approve the filing contingent upon receipt of a surety bond. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

Electric

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

Brad Schardin, Lincoln-Union Electric, Steve Wegman, formerly of PUC Staff, and Mr. Kuper reported on the status of the complaint.

Commissioner Schoenfelder moved that the testing be stopped, that a final report be filed, and the existing order be amended to reflect the same. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

Telecommunications (continued)

3. TC99-009 IN THE MATTER OF THE APPLICATION OF MAXXIS COMMUNICATIONS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Mr. Best recommended approval of this application.

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

4. TC99-024 IN THE MATTER OF THE APPLICATION OF LEGENDS COMMUNICATIONS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

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

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

5. TC99-030 IN THE MATTER OF THE FCC ORDER ESTABLISHING NEW DEADLINES FOR IMPLEMENTATION OF INTRALATA DIALING PARITY BY LOCAL EXCHANGE CARRIERS. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Rich Coit, SDITC, requested approval of content and form of the carrier notification letters which will be sent out in advance of final Commission action on the proposed plans to the companies listed on the agenda. Ms. Cremer recommended approval of the carrier letters.

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

6. TC99-033 IN THE MATTER OF THE APPLICATION OF THE FREE NETWORK, L.L.C. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Harlan Best. Staff Attorney: Camron Hoseck.)

Mr. Best recommended approval of this application.

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

Transportation/Warehouse

1. GD99-001 IN THE MATTER OF THE RECEIVERSHIP OF GRAIN DEALER BONDS OF BRITTON DURUM CORPORATION. (Staff: Jeff Lorensen. Staff Attorney: Camron Hoseck.)

Chairman Burg moved to approve Staff's recommendation of claims that should be paid. Following discussion, Commissioner Schoenfelder seconded. Commissioner Nelson dissented. Motion passed 2-1.

Telecommunications (continued)

Addendum


1. TC98-206 IN THE MATTER OF THE APPLICATION OF NEW MILLENNIUM CONQUEST SERVICE CORPORATION FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Attorney: Karen Cremer. Staff Analyst: Keith Senger.)

Ms. Cremer noted that the company has requested 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. TC99-036 IN THE MATTER OF THE APPLICATION OF SOUTHNET TELECOMM SERVICES, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Attorney: Camron Hoseck. Staff Analyst: Bob Knadle.)

Mr. Knadle 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. Chairman Burg seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

The meeting was adjourned.

______________________________
Shirleen Fugitt
Administrative Secretary