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South Dakota Public Utilities Commission Meeting
Tuesday, December 14, 1999; 9:30 A.M.
State Capitol Building, Room 464
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, 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 and Leni Healy, and Administrative Secretary Shirleen Fugitt.

Also present were Brenda Kleinjan, SDREA; Neil Fulton, McLeod USA; and Chet Brokaw, Associated Press.

Joining the meeting by phone were Neil Schmid, FirsTel; Rusty Molstad and Tom Hitchcock, NWPS; Alex Duarte, Colleen Sevold and Ed Peters, U S WEST; Barb Berkenpas, DTG/McLeod USA; Paula Heeren and Jerry Campbel, AT&T; Rogena Harris, OLS; Sam Kerr and Bart Banks, attorneys from Rapid City; and complainants Rueben Hoffman, Joyce Beckler, Janice Catron, Eileen Daly, Don Jiracek and Robert and Treva Jean Ries.

Administration

1. Approval Of The Minutes Of The Commission Meeting Held On November 29, 1999. (Staff: Shirleen Fugitt.)

Commissioner Nelson moved to approve the minutes of the meeting held on November 29, 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. (Staff Analyst: Leni Healy.)

Ms. Healy presented an update on inquiries and complaints received since the last Commission meeting.

2. CT99-028 IN THE MATTER OF THE COMPLAINT FILED BY HAMPTON INN/SUPER 8 MOTEL, NORTH SIOUX CITY, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING DELAY OF SERVICE AND BILLING PROBLEMS. (Staff Analyst: Leni Healy. Staff Attorney: Camron Hoseck.)

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

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

3. CT99-029 IN THE MATTER OF THE COMPLAINT FILED BY MARIA R. BAUS, VOLIN, SOUTH DAKOTA, AGAINST EXCEL TELECOMMUNICATIONS, INC., REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Camron Hoseck.)

Mr. Hoseck noted that the matter has been settled and recommended dismissing the complaint and closing the docket.

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

4. CT99-040 IN THE MATTER OF THE COMPLAINT FILED BY JANE HAM, CUSTER, SOUTH DAKOTA, AGAINST QWEST COMMUNICATIONS, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Camron Hoseck.)

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

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

5. CT99-041 IN THE MATTER OF THE COMPLAINT FILED BY DONALD COOK, HURON, SOUTH DAKOTA, AGAINST BUDGET CALL LONG DISTANCE, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

Ms. Cremer noted that Donald Cook wishes to amend his complaint to add NOR Communications.

Commissioner Nelson moved to amend the complaint to include NOR Communications. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

6. CT99-042 IN THE MATTER OF THE COMPLAINT FILED BY PAULA MUCHOW, RAPID CITY, SOUTH DAKOTA, AGAINST CREATIVE OPPORTUNITY REGARDING UNAUTHORIZED BILLING FOR SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Camron Hoseck.)

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

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

7. CT99-044 IN THE MATTER OF THE COMPLAINT FILED BY WILLIAM P. AND DEBRA L. LANG, RAPID CITY, SOUTH DAKOTA, AGAINST AMERICA'S TELE- NETWORK CORP. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Camron Hoseck.)

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

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

8. CT99-045 IN THE MATTER OF THE COMPLAINT FILED BY GSA, INC., RAPID CITY, SOUTH DAKOTA, AGAINST QWEST COMMUNICATIONS, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

Mr. Hoseck noted that the matter has been settled and recommended dismissing the complaint and closing the docket.

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

9. CT99-047 IN THE MATTER OF THE COMPLAINT FILED BY MARILYN L. TAYLOR, PIERRE, SOUTH DAKOTA, AGAINST AT&T REGARDING BILLING ISSUES. (Staff Analyst: Leni Healy. Staff Attorney: Camron Hoseck.)

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

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

10. CT99-060 IN THE MATTER OF THE COMPLAINT FILED BY RUEBEN W. HOFFMANN, ABERDEEN, SOUTH DAKOTA, AGAINST OLS, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Camron Hoseck.)

Rueben Hoffmann explained his complaint against OLS. Rogena Harris representing OLS noted that the company will not present evidence at this time. Ms. Cremer recommended finding probable cause.

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

11. CT99-061 IN THE MATTER OF THE COMPLAINT FILED BY NORMAJEAN JOHNSON, VERMILLION, SOUTH DAKOTA, AGAINST OLS, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

Ms. Cremer recommended dismissing the complaint and closing the docket as the complainant wishes to settle this matter informally.

Chairman Burg moved to dismiss the complaint and close the docket. Commissioner Nelson seconded. Commissioner Schoenfelder dissented. Motion passed 2-1.

12. CT99-062 IN THE MATTER OF THE COMPLAINT FILED BY MARILYN CROMPTON, ABERDEEN, SOUTH DAKOTA, AGAINST OLS, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

Ms. Cremer requested deferral. Action was deferred.

13. CT99-063 IN THE MATTER OF THE COMPLAINT FILED BY ALLEN AND JOYCE BECKLER, ABERDEEN, SOUTH DAKOTA, AGAINST OLS, INC. REGARDING SWITCHING OF SERVICES THROUGH DECEPTIVE TELEMARKETING PRACTICES. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

Joyce Beckler explained her complaint against OLS. Ms. Cremer recommended finding probable cause.

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

14. CT99-064 IN THE MATTER OF THE COMPLAINT FILED BY JANICE CATRON, MITCHELL, SOUTH DAKOTA, AGAINST QWEST COMMUNICATIONS, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

Janice Catron explained her complaint against Qwest Communications. Ms. Cremer recommended finding probable cause.

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

15. CT99-066 IN THE MATTER OF THE COMPLAINT FILED BY FRANK E. DALY, ABERDEEN, SOUTH DAKOTA, AGAINST OLS, INC. REGARDING SWITCHING TELECOMMUNICATIONS SERVICES THROUGH DECEPTIVE TACTICS. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

Eileen Daly explained the complaint against OLS. Ms. Cremer recommended finding probable cause.

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

16. CT99-067 IN THE MATTER OF THE COMPLAINT FILED BY ROBERT J. RIES AND TREVA JEAN M. RIES, WATERTOWN, SOUTH DAKOTA, AGAINST OLS, INC. REGARDING SWITCHING TELECOMMUNICATIONS SERVICES THROUGH DECEPTIVE TACTICS. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

Robert Ries explained his complaint against OLS. Ms. Cremer recommended finding probable cause.

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

Natural Gas

1. NG99-004 IN THE MATTER OF THE FILING BY NORTHWESTERN PUBLIC SERVICE FOR APPROVAL OF CONTRACT WITH DEVIATIONS WITH DAKOTA ETHANOL - LAKE AREA CORN PROCESSORS. (Staff Analyst: Dave Jacobson. Staff Attorney: Karen Cremer.)

Tom Hitchcock explained the contract. Mr. Jacobson recommended approval.

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

Electric

1. EL99-012 IN THE MATTER OF THE FILING BY OTTER TAIL POWER COMPANY FOR APPROVAL OF ELECTRIC SERVICE AGREEMENT FOR THE SUPPLY OF BULK INTERRUPTIBLE POWER BETWEEN OTTER TAIL POWER COMPANY AND VALLEY QUEEN CHEESE FACTORY, INC. (Staff Analyst: Michele Farris. Staff Attorney: Camron Hoseck.)

Mr. Hoseck requested deferral. Action was deferred.

Miscellaneous

1. IN THE MATTER OF THE FAILURE OF CERTAIN TELECOMMUNICATIONS COMPANIES TO TIMELY FILE THE GROSS RECEIPTS TAX. (Deputy Executive Director: Sue Cichos.)

Ms. Cichos recommended the Commission issue an Order to show Cause as to why the Commission should not fine, suspend or revoke the Certificates Of Authority of each of these companies for failure to pay the requisite gross receipts tax.

A C S Tel Com, Inc.
Accutel Communications, Inc.
Affinity Marketing Strategies, LLC d/b/a Funding Our Future
AmeriTel Pay Phones, Inc. (Cell Block Phones)
AMNEX - American Network Exchange, Inc.
Atlas Equity Inc d/b/a Performance Telecom
Business Options, Inc.
Call Plus, Inc.
Colorado River Communications Corp d/b/a CRC Long Distance
Eagle Telecom, Inc.
Elias Ventures, Inc. d/b/a American Freeway100
First Call USA, Inc.
Intelicom International Corp.
International Telcom, Ltd
Journey Telecom International, Inc.
London Telecom a/k/a Strategic Alliances
Matrix Telecom
New Concept Communications LLC
NOVA Telecom, Inc. d/b/a B.E.L. EZ Pay
NTI Telecom, Inc.
Pride America, Inc.
PRIMECALL, Inc.
Sterling International Funding, Inc. d/b/a Reconex
TelSave Corporation d/b/a Independent Network Services
Teltrust Communications Services, Inc.
U S Network Services, Inc.
USA Tele Corp.
Ustel, Inc.
Western Tele-Communications, Inc./Retail Sales Group

Chairman Burg moved to issue Orders to Show Cause for failure to pay gross receipts tax for each of the companies listed above. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

Addendum

Telecommunications

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. (Staff Analyst: Harlan Best. Staff Attorney: Camron Hoseck.)

Alex Duarte, U S WEST Communications, explained the proposed amendment to the Interconnection Agreement. Mr. Hoseck recommended approval.

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

2. 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.)

3. 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.)

4. 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.)

5. 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.)

Mr. Hoseck recommended that fines be imposed.

Chairman Burg moved to close the dockets with no fines imposed. Motion died for lack of a second.

Mr. Hoseck recommended granting a continuance in TC98-212.

Commissioner Nelson moved to leave open the dockets without imposing fines. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

6. 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.)

Commissioner Nelson moved to deny reconsideration of this matter. Chairman Burg seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

7. TC99-053 IN THE MATTER OF THE FILING BY U S WEST COMMUNICATIONS, INC. FOR APPROVAL OF TARIFF PAGES FOR ITS ACCESS SERVICE TARIFF IMPLEMENTING ITS INTRALATA TOLL DIALING PARITY PLAN. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Alex Duarte, U S WEST, explained the filing and requested approval of the settlement agreement. Ms. Cremer recommended approval.

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

The tariff filing in this matter will be considered at a later meeting.

Natural Gas

1. IN THE MATTER OF THE COMMISSION HIRING A WITNESS FOR ITS INVOLVEMENT IN CERTAIN ISSUES BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION REGARDING WILLISTON BASIN INTERSTATE PIPELINE. (Staff Analyst: Dave Jacobson. Staff Attorney: Camron Hoseck.)

Mr. Jacobson explained the request to hire a witness.

Chairman Burg moved to enter into a contract with Al Clark, in an amount not to exceed $30,000. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

The meeting was adjourned.

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Shirleen Fugitt
Administrative Secretary