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South Dakota Public Utilities Commission Meeting
Monday, November 1, 1999; 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, Commission Advisor Greg Rislov, Commission Counsel Rolayne Ailts Wiest, Deputy Executive Director Sue Cichos, Staff Attorneys Karen Cremer and Camron Hoseck, Utility Analysts Harlan Best, Dave Jacobson, Michele Farris, Keith Senger and Heather Forney, Engineer Martin Bettmann, Consumer Representative Leni Healy and Administrative Secretary Shirleen Fugitt.

Also present were Tom Hitchcock, Jeff Oecher and Rusty Molstad, Northwestern Public Service; Jim Wilcox, Northern States Power; Bob Riter, Qwest Communications; Bob Miller, South Dakota Electric Utility Companies; Rich Coit, SDITC; Colleen Sevold, U S WEST Communications; Al Lundy, Capital Journal; Chet Brokaw, Associated Press; and complainants Marilyn Taylor and John Hatch.

Joining the meeting by phone were Mary Lohnes, Midco Communications; Jerry Campbell, AT&T; Suzan Stewart, Jean Calligan and Marv Sorenson, MidAmerican Energy; and complainant Shirley Noble.

Administration

1. Approval Of The Minutes Of The Commission Meeting Held On October 19, 1999. (Staff: Shirleen Fugitt.)

Commissioner Nelson moved to approve the minutes of the October 19, 1999, Commission Meeting. 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.

Natural Gas

1. NG99-002 IN THE MATTER OF THE APPLICATION OF NORTHWESTERN PUBLIC SERVICE FOR AUTHORITY TO INCREASE RATES FOR NATURAL GAS SERVICE. (Staff Analyst: Dave Jacobson. Staff Attorney: Karen Cremer.)

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

Complaint Dockets

2. CT99-009 IN THE MATTER OF THE COMPLAINT FILED BY THELMA "SALLY" FOX, HURON, SOUTH DAKOTA, AGAINST TOUCHTONE COMMUNICATIONS REGARDING UNAUTHORIZED BILLING FOR SERVICES AND LACK OF A CERTIFICATE OF AUTHORITY. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)


Mr. Hoseck reported that the matter has been settled and recommended dismissal of the complaint.

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

3. CT99-010 IN THE MATTER OF THE COMPLAINT FILED BY LYNNETTE BRAUN, RAPID CITY, SOUTH DAKOTA, AGAINST NATIONAL BILLING EXCHANGE SPECIAL SERVICES REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Mr. Hoseck reported that the matter has been settled and recommended dismissal of the complaint.

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

4. CT99-018 IN THE MATTER OF THE COMPLAINT FILED BY JOHN AND SHIRLEY HATCH, PIERRE, SOUTH DAKOTA, AGAINST QWEST COMMUNICATIONS, INC. REGARDING UNAUTHORIZED BILLING FOR SERVICES. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Attorney Bob Riter presented Qwest Communications' Motion to Dismiss and answered questions from the Commission. Mr. Hatch explained his request to amend his complaint by adding WCS Telecom and Western Communications as parties in this matter. Mr. Hoseck recommended denial of the Motion to Dismiss and granting the Motion to Amend.

Commissioner Nelson moved to deny the Motion to Dismiss and to grant the Motion to Amend. Commissioner Schoenfelder seconded. Chairman Burg dissented. Motion passed 2-1.

5. CT99-021 IN THE MATTER OF THE COMPLAINT FILED BY BRYAN AND NATALIE PARKS, RAPID CITY, SOUTH DAKOTA, AGAINST WESTERN TELECOM REGARDING UNAUTHORIZED BILLING FOR SERVICES. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Mr. Hoseck reported that the matter has been resolved and recommended dismissal of the complaint.

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

6. CT99-024 IN THE MATTER OF THE COMPLAINT FILED BY EVELYN WEAVER, PIERRE, SOUTH DAKOTA, AGAINST WESTERN TELECOM REGARDING UNAUTHORIZED BILLING FOR SERVICES. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Commissioner Schoenfelder moved that the Commission find that Western Telecom has billed the complainant for unauthorized services in violation of SDCL 49-31-89. Pursuant to SDCL 49-31-93, Western Telecom shall pay to the subscriber $1000 and the subscriber is not liable for any charges billed by Western Telecom. In addition, Western Telecom shall pay to the subscriber $153 to compensate the subscriber for time spent attempting to resolve the unauthorized billing. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

7. CT99-030 IN THE MATTER OF THE COMPLAINT FILED BY HARRY AND MARGARET PUTNAM, RAPID CITY, SOUTH DAKOTA, AGAINST TOUCHTONE COMMUNICATIONS, INC. REGARDING UNAUTHORIZED BILLING FOR SERVICES. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Mr. Hoseck reported that the matter has been settled and recommended dismissing the complaint.

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

8. CT99-031 IN THE MATTER OF THE COMPLAINT FILED BY DOUGLAS HOLLER, PIERPONT, SOUTH DAKOTA, AGAINST MCI WORLDCOM REGARDING BILLING ERRORS. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Mr. Hoseck reported that a settlement has been reached and recommended dismissing the complaint.

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

9. CT99-034 IN THE MATTER OF THE COMPLAINT FILED BY ROSELLA LEE, ARLINGTON, SOUTH DAKOTA, AGAINST WESTERN TELECOM REGARDING UNAUTHORIZED BILLING FOR SERVICES. (Consumer Representative: Leni Healy. Staff Attorney: Karen Cremer.)

Mr. Hoseck reported that the matter has been resolved and recommended dismissing the complaint.

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

10. CT99-046 IN THE MATTER OF THE COMPLAINT FILED BY SHIRLEY J. NOBLE, RAPID CITY, SOUTH DAKOTA, AGAINST PREFERRED BILLING REGARDING UNAUTHORIZED BILLING FOR SERVICES. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Shirley Noble explained her complaint against Preferred Billing for unauthorized billing. Ms. Healy presented further explanation and recommended finding probable cause.

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

11. CT99-047 IN THE MATTER OF THE COMPLAINT FILED BY MARILYN L. TAYLOR, PIERRE, SOUTH DAKOTA, AGAINST AT&T REGARDING BILLING ISSUES. (Consumer Representative: Leni Healy.)

Marilyn Taylor appeared in person and explained her complaint against AT&T. Jerry Campbell, AT&T, addressed the complaint.

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

Telecommunications

1. TC99-093 IN THE MATTER OF THE APPLICATION OF CORPORATE BILLING MANAGEMENT, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

Mr. Senger explained the application and recommended approval with the waiver of ARSD 20:10:24:02(8) and restrictions on advance payments, deposits and prepaid calling cards.

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

2. TC99-099 IN THE MATTER OF THE INQUIRY TO RECLASSIFY U S WEST COMMUNICATIONS, INC.'S INTRALATA TOLL AND WIDE-AREA TELEPHONE SERVICES. (Staff Analyst: Harlan Best. Staff Attorney: Camron Hoseck.)

Andrew Jones, Sprint, addressed the Motion to Intervene. There was no one present to represent Telecommunications Resellers Association. Mr. Hoseck recommended granting intervention to Sprint and Telecommunications Resellers Association.

Commissioner Schoenfelder moved to grant intervention to Sprint and to Telecommunications Resellers Association. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

3. TC99-101 IN THE MATTER OF THE APPLICATION OF AVERA COMMUNICATION, L.L.C. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

Mr. Senger explained the application and noted that the applicant was previously awarded a Local Exchange Certificate of Authority with bond requirements (TC99-083). Mr. Senger recommended approval of this application with the waivers of ARSD 20:10:24:02(15) and 20:10:24:02(8) and a $25,000 bond requirement. Mr. Senger further recommended that the original $25,000 bond filed with the Commission satisfy the bond requirement in this docket.

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

Electric

1. IN THE MATTER OF THE ONE-TIME SPECIAL UNDERGROUNDING ASSESSMENT BY NSP IN SIOUX FALLS. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

Jim Wilcox, NSP, addressed the matter and answered questions. Ms. Forney recommended opening a docket.

Commissioner Nelson moved to open a docket. Chairman Burg seconded and Commissioner Schoenfelder dissented. Motion passed 2-1.

Rulemaking

1. IN THE MATTER OF THE PROPOSAL TO AMEND CERTAIN ADMINISTRATIVE RULES REGARDING TELECOMMUNICATIONS, ELECTRICITY AND NATURAL GAS. (Staff Attorney: Camron Hoseck. Executive Director: Bill Bullard.)

Mr. Hoseck explained the proposed changes to the rules.

Commissioner Schoenfelder moved to open a rulemaking docket for consideration of these changes. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

Miscellaneous

1. IN THE MATTER OF COMMISSION STAFF HIRING A CONSULTANT(S). (Staff Attorney: Camron Hoseck. Executive Director: Bill Bullard.)

Mr. Hoseck explained the matter.

Chairman Burg moved to deny the request to enter into contracts with consultants. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

Addendum

Complaint Dockets

1. CT99-020 IN THE MATTER OF THE COMPLAINT FILED BY FRED HOLPP, RAPID CITY, SOUTH DAKOTA, AGAINST U S WEST COMNMUNICATIONS, INC. REGARDING FAILURE TO PROVIDE SERVICE. (Consumer Representative: Leni Healy. Staff Analyst: Michele Farris. Staff Attorney: Camron Hoseck.)

Mr. Hoseck reported that the matter has been resolved and recommended dismissing the complaint.

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

Telecommunications

1. TC99-094 IN THE MATTER OF THE APPLICATION OF SMALL BUSINESS BILLING, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Michele Farris. Staff Attorney: Camron Hoseck.)

Ms. Farris explained the application and recommended approval with the waiver of ARSD 20:10:24:02(8) and restrictions on prepaid calling cards, advance payments and deposits.

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

Natural Gas

1. NG99-006 IN THE MATTER OF THE FILING BY MIDAMERICAN ENERGY COMPANY FOR APPROVAL OF NATURAL GAS OPTIONAL OFF PEAK FIRM SERVICE RIDER. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

Jean Calligan, MidAmerican Energy, presented background information on the filing. Mr. Jacobson presented further explanation and recommended approval with the following conditions:

1. MidAmerican will submit a report to the Commission by February 1, of each year, of the same format as that referenced in Docket TF-99-269 before the Iowa Utilities Board, except that it will reflect South Dakota jurisdictional operations.

2. The Gas Daily's Capacity Release Price Survey October/November average used to compute the surcharge shall be applied to all usage during the months of April through November, and billed on an annual basis.

3. Language shall be added to MidAmerican's tariff stating that all revenues collected through this rider shall be credited to all other firm customers.

4. Effective date shall be November 1, 1999.

Commissioner Schoenfelder* moved to approve the filing with the added language noted above. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

The meeting was adjourned.

_______________________________
Shirleen Fugitt
Administrative Secretary