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South Dakota Public Utilities Commission Meeting
Monday, November 15, 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 at 1:30 P.M. Present were Commissioner Pam Nelson, Commissioner Laska Schoenfelder, Executive Director Bill Bullard, 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, Consumer Representative Leni Healy, and Administrative Secretary Shirleen Fugitt.

Also present were Neil Fulton, MCI World Com/McLeod USA; Tom Harmon, Sprint; Al Lundy, Capital Journal; Geoff Simon, MDU Resources Group; Rich Coit, SDITC; and Lisa Neuharth, complainant..

Joining the meeting by phone were Loren Noess, Tri-County/Intercounty Electric; Brad Schardin, Lincoln-Union/Turner-Hutchinson Electric; Bill Heaston and Barb Berkenpas, DTG; Alex Duarte, Colleen Sevold and Tom Welk, U S WEST; Rusty Molstad, Tom Hitchcock and Jeff Decker, NWPS; Darren Moser, Dickey Rural Telephone; Floyd Newland, Western Telecom; Greg Redlin and Tracy Thorne, University of South Dakota; Mary Lohnes and Tom Simmons, Midco Communications; Andrew Jones; Sprint; Michele Singer and Sandy Hofstetter, AT&T; Suzan Stewart and Andy Logsdon, MidAmerican Energy; and Doris Storbeck, Linda Sederstrom, Lynne Flint, and Tami Jung, complainants.

Administration

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

Commissioner Nelson moved to approve the minutes of the Commission Meeting held on November 1, 1999. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-1.

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.

Addendum

Electric

1. EL99-017 IN THE MATTER OF THE FILING FOR APPROVAL OF CHANGES TO ASSIGNED SERVICE AREAS OF INTERCOUNTY ELECTRIC ASSOCIATION, INC. AND TRI-COUNTY ELECTRIC ASSOCIATION, INC. (Staff Engineer: Martin Bettmann. Staff Attorney: Karen Cremer.)

Loren Noess, Tri-County/Intercounty Electric, explained the filing. Ms. Cremer recommended approval.

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

2. EL99-018 IN THE MATTER OF THE FILING FOR APPROVAL OF CHANGES TO ASSIGNED SERVICE AREAS OF LINCOLN-UNION ELECTRIC COMPANY AND TURNER-HUTCHINSON ELECTRIC COOPERATIVE, INC. (Staff Engineer: Martin Bettmann. Staff Attorney: Karen Cremer.)

Brad Schardin, Lincoln-Union Electric Company/Turner-Hutchinson Electric Cooperative, explained the filing. Ms. Cremer recommended approval.

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

8. CT99-048 IN THE MATTER OF THE COMPLAINT FILED BY DAVID AND LISA NEUHARTH, FORT PIERRE, SOUTH DAKOTA, AGAINST EXCEL TELECOMMUNICATIONS, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Lisa Neuharth appeared in person and explained her complaint.

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

2. CT99-012 IN THE MATTER OF THE COMPLAINT FILED BY DARWIN WOLF, SIOUX FALLS, SOUTH DAKOTA, AGAINST MATRIX TELECOM, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Mr. Hoseck reported that the complaint has been resolved.

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

3. CT99-014 IN THE MATTER OF THE COMPLAINT FILED BY STEVE AND JUDY HABERLING, SIOUX FALLS, SOUTH DAKOTA, AGAINST WORLDCOM NETWORK SERVICES, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Consumer Representative: Leni Healy. Staff Attorney: Karen Cremer.)

Neil Fulton, MCI WorldCom, reported that the company has issued a courtesy credit to the Haberlings. Ms. Cremer 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.

4. CT99-022 IN THE MATTER OF THE COMPLAINT FILED BY HARRY HARVISON, PLATTE, SOUTH DAKOTA, AGAINST MCI WORLDCOM REGARDING UNAUTHORIZED BILLING FOR SERVICES. (Consumer Representative: Leni Healy. Staff Attorney: Karen Cremer.)

Neil Fulton, MCI WorldCom, reported that the company has issued a courtesy credit to Mr. Harvison.

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

5. CT99-033 IN THE MATTER OF THE COMPLAINT FILED BY SUSAN TRUDEL, WEBSTER, SOUTH DAKOTA, AGAINST MCI WORLDCOM REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Consumer Representative: Leni Healy. Staff Attorney: Karen Cremer.)

Neil Fulton, MCI WorldCom, reported that a courtesy credit has been issued to Ms. Trudel. Ms. Cremer 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.

6. CT99-036 IN THE MATTER OF THE COMPLAINT FILED BY BRIAN AND RENEE COLEY, DBA CAMBRIDGE GALLERY/SIOUX GLASS AND DOOR, SIOUX FALLS, SOUTH DAKOTA, AGAINST PREFERRED BILLING REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Consumer Representative: Leni Healy. Staff Attorney: Karen Cremer.)

Ms. Cremer reported that the complaint has been resolved.

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

7. CT99-037 IN THE MATTER OF THE COMPLAINT FILED BY LYLE TUNHEIM, ANDOVER, SOUTH DAKOTA, AGAINST MCI WORLDCOM REGARDING INCREASE IN RATES WITHOUT NOTICE. (Consumer Representative: Leni Healy. Staff Attorney: Karen Cremer.)

Neil Fulton, MCI WorldCom, reported that a courtesy credit has been issued to Mr. Tunheim. Ms. Healy recommended that the complaint be dismissed.

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

9. CT99-049 IN THE MATTER OF THE COMPLAINT FILED BY ROD AND LYNNE FLINT, DOLAND, SOUTH DAKOTA, AGAINST MCI WORLDCOM REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Consumer Representative: Leni Healy. Staff Attorney: Karen Cremer.)

Lynne Flint explained her complaint. Ms. Healy reported that Ms. Flint is seeking damages. Neil Fulton, MCI WorldCom, presented background information and requested a finding of no probable cause. Ms. Wiest recommended finding probable cause.

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

1. TC98-196 IN THE MATTER OF THE COMPLAINT FILED BY DON JIRACEK ON BEHALF OF GSA, INC., RAPID CITY, SOUTH DAKOTA, AGAINST MCLEOD USA, REGARDING INADEQUATE SERVICE. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Bart Banks, an attorney representing Don Jiracek, explained the request for reconsideration and the request for damages. Neil Fulton, representing McLeod USA, spoke in opposition to reconsideration. Mr. Hoseck addressed the question of damages and recommended reconsideration. Following discussion, Commissioner Nelson recommended taking the matter under advisement.

10. CT99-050 IN THE MATTER OF THE COMPLAINT FILED BY LYNDA SEDERSTROM, MADISON, SOUTH DAKOTA, AGAINST SPRINT COMMUNICATIONS COMPANY L.P., AND U S WEST COMMUNICATIONS, INC., REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Keith Senger. Staff Attorney: Camron Hoseck.)

Linda Sederstrom explained her complaint against Sprint Communications. Andrew Jones, Sprint Communications, addressed the complaint and reported that an investigation is ongoing. Colleen Sevold, U S WEST, reported that an investigation is underway.

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

11. CT99-051 IN THE MATTER OF THE COMPLAINT FILED BY PATRICK L. CORBIN, RAPID CITY, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING DELAYED INSTALLATION OF TELEPHONE SERVICE. (Consumer Representative: Leni Healy. Staff Attorney: Karen Cremer.)

Ms. Healy reported that a settlement has been reached.

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

12. CT99-052 IN THE MATTER OF THE COMPLAINT FILED BY SCOTT AND TAMI JUNG, ABERDEEN, SOUTH DAKOTA, AGAINST QWEST COMMUNICATIONS, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Keith Senger. Staff Attorney: Camron Hoseck.)

Tami Jung explained her complaint. Ms. Healy recommended finding probable cause.

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

13. CT99-053 IN THE MATTER OF THE COMPLAINT FILED BY STORBECK TRUCKING, INC., HURON, SOUTH DAKOTA, AGAINST SPRINT COMMUNICATIONS COMPANY L.P. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Consumer Representative: Leni Healy.)

Doris Storbeck explained her complaint. Ms. Healy recommended finding probable cause. Andrew Jones, Sprint Communications, requested time for further investigation. Ms. Wiest recommended finding probable cause.

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

Addendum

Consumer Issues

1. CT99-032 IN THE MATTER OF THE COMPLAINT FILED BY WILLIAM AND EILEEN REIDY, SIOUX FALLS, SOUTH DAKOTA, AGAINST SPRINT COMMUNICATIONS COMPANY L.P. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Ms. Healy reported that the complaint has been resolved.

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

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.)

Tom Hitchcock, Northwestern Public Service, explained the application. Mr. Jacobson recommended approval.

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

2. NG99-007 IN THE MATTER OF THE FILING BY NORTHWESTERN PUBLIC SERVICE COMPANY FOR APPROVAL OF REFUND PLAN RELATING TO RATE CASE REFUNDS RECEIVED FROM NORTHERN NATURAL GAS COMPANY. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

Tom Hitchcock, Northwestern Public Service, explained the filing and requested a December 1, 1999, implementation date. Ms. Forney recommended approval.

Chairman Burg moved to approve the filing with a December 1, 1999, implementation date. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

Telecommunications

2. TC99-041 IN THE MATTER OF THE FILING BY DICKEY RURAL TELEPHONE COOPERATIVE AND ITS WHOLLY OWNED SUBSIDIARY, DICKEY RURAL COMMUNICATIONS, INC. FOR APPROVAL OF PETITION FOR SUSPENSION AND MODIFICATION OF DIALING PARITY. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Darren Moser, Dickey Rural Telephone, explained the filing. Ms. Cremer recommended approval.

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

3. TC99-042 IN THE MATTER OF THE FILING BY CONSOLIDATED TELEPHONE COOPERATIVE AND ITS WHOLLY OWNED SUBSIDIARY, CONSOLIDATED TELCOM, INC. FORMERLY KNOWN AS CTC COMMUNICATIONS, INC. FOR APPROVAL OF PETITION FOR SUSPENSION AND MODIFICATION OF DIALING PARITY. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Ms. Cremer recommended approval. Ms. Wiest recommended approval of the plan but not the customer letter.

Chairman Burg moved to approve the plan but not the customer letter. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

4. TC99-062 IN THE MATTER OF THE APPLICATION OF DIECA COMMUNICATIONS, INC. D/B/A COVAD COMMUNICATIONS COMPANY FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES, INCLUDING LOCAL EXCHANGE SERVICES, IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Camron Hoseck.)

Mr. Senger explained the application and recommended approval with the waiver of ARSD 20:10:32:03(8) and (10), subject to rural safeguards, with bond requirements and a restriction from offering dial tone services.

Commissioner Schoenfelder moved to approve the application with Staff's recommended restrictions and requirements noted above. Further, customers are to be advised that dial tone services are not available from DIECA. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-1.

5. TC99-017 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 DIECA COMMUNICATIONS, INC. D/B/A COVAD COMMUNICATIONS COMPANY. (Staff Attorney: Camron Hoseck. Staff Analyst: Harlan Best.)

Mr. Hoseck recommended approval of the filing.

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

6. TC99-082 IN THE MATTER OF THE FILING BY AT&T COMMUNICATIONS OF THE MIDWEST, INC. FOR APPROVAL OF ITS ACCESS SERVICES AND INTERCONNECTION SERVICES TARIFF. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

Michele Singer, AT&T, explained the filing. Ms. Wiest recommended approval with the waiver of ARSD 20:10:27:12 pursuant to ARSD 20:10:27:02.

Chairman Burg moved to approve the filing with the waiver of ARSD 20:10:27:12. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

7. TC99-087 IN THE MATTER OF THE APPLICATION OF TON SERVICES, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Heather Forney. Staff Attorney: Camron Hoseck.)

Ms. Forney explained the application and recommended approval contingent upon receipt of a revised bond.

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

8. TC99-089 IN THE MATTER OF THE APPLICATION OF @LINK NETWORKS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES, INCLUDING LOCAL EXCHANGE SERVICES, IN SOUTH DAKOTA. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

Ms. Forney explained the application and recommended approval with the waiver of ARSD 20:10:32:03(8), with rural safeguards and contingent upon receipt of a revised bond.

Chairman Burg moved to approve the filing with the recommendations of Staff as noted above. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

9. TC99-095 IN THE MATTER OF THE APPLICATION OF P.D.S., INC. D/B/A PHONE DEBIT SYSTEMS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

Ms. Forney explained the application and recommended approval with the waiver of ARSD 20:10:24:02(8) and contingent upon receipt of a bond.

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

10. TC99-097 IN THE MATTER OF THE FILING FOR APPROVAL OF AN INTERCONNECTION AGREEMENT BETWEEN FORT RANDALL TELEPHONE COMPANY AND DAKOTA TELECOM, INC. AND DAKOTA TELECOMMUNICATIONS SYSTEMS, INC. (Staff Attorney: Camron Hoseck.)

Mr. Hoseck recommended approval of the agreement subject to the parties filing a corrected version of the agreement in which typographical errors on pages 16 and 19 are corrected.

Commissioner Schoenfelder moved to approve the agreement subject to the filing of a corrected version of the agreement. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

11. TC99-098 IN THE MATTER OF THE PETITION OF U S WEST COMMUNICATIONS, INC. TO RECLASSIFY U S WEST'S DIRECTORY ASSISTANCE SERVICE. (Staff Analysts: Harlan Best/Heather Forney. Staff Attorney: Camron Hoseck.)

Tom Welk representing U S WEST explained the petition. Mr. Hoseck recommended approval. Following discussion, action was deferred.

12. 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.)

Mr. Hoseck explained the filing and recommended approval.

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

13. IN THE MATTER OF ESTABLISHING DIFFERENT RATES FOR INTERCONNECTION AND UNES IN AT LEAST THREE GEOGRAPHIC AREAS PURSUANT TO SECTION 51.507(F) OF THE FCC'S RULES. (General Counsel: Rolayne Wiest.)

Following comments from parties, Ms. Wiest recommended opening a docket to receive comments on how to proceed to comply with section 51.507(f) of the FCC's rules with the possibility of opening a rulemaking docket in which the companies would be involved.

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

14. IN THE MATTER OF ISSUING ORDERS AGAINST WESTERN TELECOM AND TOUCHTONE COMMUNICATIONS CONCERNING THE UNAUTHORIZED BILLING OF PRODUCTS OR SERVICES. (General Counsel: Rolayne Wiest.)

Floyd Newland spoke on behalf of Western Telecom.

Commissioner Schoenfelder moved to issue show cause orders to Western Telecom and Touchtone Communications and to order the companies to provide lists of their current South Dakota subscribers. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

Administration

1. IN THE MATTER OF THE CONTRACT FOR LEGAL SERVICES WITH MICHAEL J. MYERS. (Executive Director: Bill Bullard.)

Chairman Burg moved to enter into a contract for legal services with Michael Myers not to exceed $1,000. Commissioner Nelson seconded. Commissioner Schoenfelder dissented stating that the original contract with Professor Myers was for legal services and she doesn't see the need for additional legal services. Motion passed 2-1.

Addendum

Natural Gas

1. NG99-008 IN THE MATTER OF THE FILING BY MIDAMERICAN ENERGY COMPANY FOR APPROVAL OF A CONTRACT WITH DEVIATIONS WITH THE UNIVERSITY OF SOUTH DAKOTA. (Staff Analyst: Dave Jacobson. Staff Attorney: Camron Hoseck.)

Suzan Stewart, MidAmerican Energy, explained the filing. Mr. Hoseck recommended approval with the condition that approval by the Commission shall not be construed as approval of USD's method of payment.

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

The meeting was adjourned.

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Shirleen Fugitt
Administrative Secretary