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South Dakota Public Utilities Commission Meeting
Tuesday, June 20, 2000; 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. 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 Charlene Lund, Dave Jacobson, Harlan Best, Heather Forney, Keith Senger, Leni Healy, Mary Healy and Michele Farris; Administrative Secretary Mary Giddings; and Court Reporter Cheri McComsey.

Also present were Bob Miller, South Dakota Electric Utility Companies; Tom Harmon, Sprint LLC; William Turnbull, Mark Roberts, Randall Palmer, and Suzan Stewart, MidAmerican Energy; Marissa Repp, Mark Pitchford and Bob Riter, Qwest Communications/Tele-Distance, Inc. ; Richard Coit, SDITC; John Fitzpatrick, Touch America; and Neil Fulton, World Com.

Joining the meeting by phone were Mary McDermott, PathNet; Mary Lohnes and Tom Simmons, Midcontinent; Colleen Sevold and Alex Duarte, U S WEST; Chuck Montgomery, MidAmerican; Susan Bachman, Northwestern Public Service; Douglas Nelson, Carol Kuhnow, Mark Grace and Laura Symsick, Qwest; Sandy Hoffstetter and Tricha Pendzimas, AT&T; Mary Roling, McCook Electric; John Miller, Sioux Valley Southwestern Cooperative; and Jonathan Marashlian, Touch America.

Administration

1. Approval Of The Minutes Of The Commission Meeting Held On May 30, 2000. (Staff: Mary Giddings.)

Commissioner Nelson moved to approve the minutes of the meeting held on May 30, 2000. 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. Leni Healy presented an update on inquiries and complaints received since the last Commission meeting.

1. CT00-037 IN THE MATTER OF THE COMPLAINT FILED BY CHERYL PLUCKER, CHANCELLOR, SOUTH DAKOTA, AGAINST MCI WORLDCOM REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

Mr. Senger 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.

2. CT00-057 IN THE MATTER OF COMPLAINT FILED BY LARRY MANN, RAPID CITY, SOUTH DAKOTA, AGAINST MCI WORLDCOM, SPRINT COMMUNICATIONS COMPANY L.P., USBI, BUSINESS OPTIONS, INC., HOLD BILLING SERVICES AND CEO TELECOMMUNICATIONS, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Charlene Lund. Staff Attorney: Karen Cremer.)

Ms. Cremer noted that the matter has been settled and recommended dismissing the complaint and closing the docket.

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

3. CT00-066 IN THE MATTER OF THE COMPLAINT FILED BY WHEELER AND GLORIA GILL, TOWNHOUSE BAKERY, CANTON, SD, AGAINST LONG DISTANCE SERVICES, CEO TELECOMMUNICATIONS, INC., BUSINESS OPTIONS, INC. AND HOME OWNERS LONG DISTANCE, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES AND UNAUTHORIZED BILLING FOR SERVICES. (Staff Analyst: Charlene Lund. Staff Attorney: Camron Hoseck.)

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 Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

4. CT00-069 IN THE MATTER OF THE COMPLAINT FILED BY DEAN ELECTRIC INC. DBA: DYKSTRA ELECTRIC, YANKTON, SOUTH DAKOTA, AGAINST NETWORK SERVICES REGARDING UNAUTHORIZED SWITCHING OF 800 SERVICES AND CONTINUED BILLING FOR UNAUTHORIZED SERVICES. (Staff Analyst: Charlene Lund. Staff Attorney: Karen Cremer.)

Ms. Cremer 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.

5. CT00-071 IN THE MATTER OF THE COMPLAINT FILED BY PHYLLIS BREUER, SIOUX FALLS, SOUTH DAKOTA, AGAINST HOLD BILLING SERVICES, SPRINT COMMUNICATIONS COMPANY L.P. AND BUSINESS OPTIONS, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

Ms. Cremer noted that the matter has been settled and recommended dismissing the complaint and closing the docket.

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

Electric

1. EL00-016 IN THE MATTER OF THE FILING BY NORTHERN STATES POWER COMPANY FOR APPROVAL OF ITS 1999 ECONOMIC DEVELOPMENT ANNUAL REPORT AND 2000 ECONOMIC DEVELOPMENT PLAN. (Staff Analyst: Dave Jacobson. Staff Attorney: Karen Cremer.)

Jim Wilcox, representing Northern States Power Company, explained its report and 2000 plan.

Chairman Burg moved to approve NSP's 1999 Economic Development Report and 2000 Plan. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

2. EL00-020 IN THE MATTER OF THE FILING BY MONTANA-DAKOTA UTILITIES CO. FOR APPROVAL OF ITS REVISED RATE SHEETS FOR ITS COGENERATION RATES. (Staff Analyst: Dave Jacobson. Staff Attorney: Camron Hoseck.)

Mr. Jacobson recommended approval of the revised rate sheets.

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

3. EL00-021 IN THE MATTER OF THE JOINT REQUEST FOR ELECTRIC SERVICE TERRITORY EXCEPTION BETWEEN MCCOOK ELECTRIC COOPERATIVE, INC. AND SIOUX VALLEY-SOUTHWESTERN ELECTRIC COOPERATIVE, INC. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

John Miller, representing Sioux Valley Southwestern Electric Cooperative, Inc., explained the exception. Ms. Farris recommended that the exception be approved.

Commission Nelson moved to approve the joint request for service territory exception. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

Gas/Electric

1. GE00-002 IN THE MATTER OF THE FILING BY THE DUNHAM COMPANY FOR A MASTER METERING VARIANCE REQUEST FOR THE RIVER CENTRE OFFICE BUILDING, SIOUX FALLS, SOUTH DAKOTA. (Staff Analysts: Michele Farris/Martin Bettmann. Staff Attorney: Camron Hoseck.)

Jim Wilcox, Northern States Power, responded to questions from the Commissioners and Staff. Suzan Stewart, MidAmerican Energy Company, commented on submetering.

Chairman Burg moved to approve the variance request. Motion died for lack of a second. Action was deferred.

Commissioner Schoenfelder moved to extend the time for good cause. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

Telecommunications

1. TC00-002 IN THE MATTER OF THE FILING BY CCCSD, INC., D/B/A CONNECT! FOR AN EXEMPTION FROM DEVELOPING COMPANY-SPECIFIC COST-BASED SWITCHED ACCESS RATES. (Staff Analyst: Heather Forney. Staff Attorney: Camron Hoseck.)

Ms. Forney recommended that the exemption be approved.

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

2. TC00-007 IN THE MATTER OF QWEST COMMUNICATIONS, INC. (Staff Attorneys: Camron Hoseck and Karen Cremer.)

Commissioner Nelson moved to approve the Staff resolution to assess fines and penalties, impose other remedies and assess costs associated with processing the complaints. She further moved to close the docket. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

3. TC00-016 IN THE MATTER OF THE APPLICATION OF TELEDISTANCE, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Michele Farris. Staff Attorney: Camron Hoseck.)

Bob Riter, Merissa Repp and John Fitzpatrick, representing Qwest Communications/Tele-Distance, Inc., explained the Certificate of Authority request. Ms. Farris explained the restrictions recommended by the Staff. Mr. Hoseck recommended that approval be granted with Staff restrictions. Ms. Wiest recommended that the certificate of authority be granted and effective on the date of the stock transfer of TD Holdings to Touch America, Inc. She further recommended that the certificate be issued in the name of Touch America Services, Inc. to reflect the name change. She also recommended granting a waiver of ARSD 20:10:27:02 (8) and that the continuous $25,000 surety bond be reissued in the name of Touch America Services, Inc.

Chairman Burg moved to grant a Certificate of Authority to TeleDistance, Inc. subject to the recommendations made by Ms. Wiest. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

4. TC00-017 IN THE MATTER OF THE APPLICATION OF PATHNET, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE LOCAL EXCHANGE SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Camron Hoseck.)

Mary McDermott, representing Pathnet, Inc, explained its Certificate of Authority request. Mr. Senger recommended that the Commission grant the waivers and also recommended approval of the local exchange Certificate of Authority with continuing $25,000 bond requirement, restriction from offering dial tone services and subject to rural safeguards.

Chairman Burg moved to grant the waivers and also moved to approve the local exchange Certificate of Authority with continuing $25,000 bond requirement, restriction from offering dial tone services and subject to rural safeguards. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion carried 3-0.

5. TC00-018 IN THE MATTER OF THE APPLICATION OF PATHNET, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Camron Hoseck.)

Mary McDermott, representing Pathnet, Inc, explained its Certificate of Authority request. Mr. Senger recommended that a marketing plan waiver be granted and also recommended approval of the interexchange Certificate of Authority with a continuing $25,000 bond requirement.

Commissioner Schoenfelder moved that a marketing plan waiver be granted and he further moved to approve the interexchange Certificate of Authority with a continuing $25,000 bond requirement. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

6. TC00-070 IN THE MATTER OF THE APPLICATION OF ENHANCED COMMUNICATIONS GROUP, L.L.C. D/B/A ECG, L.L.C. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

Ms. Farris recommended that a Certificate of Authority be granted with the restrictions that ECG not offer a prepaid calling card, require deposits, or collect advance payments without prior approval of the Commission and a waiver of ARSD 20:10:24:02 (8).

Chairman Burg moved to grant a Certificate of Authority to Enhanced Communications Group, LLC d/b/a ECG, LLC with restrictions on offering prepaid calling cards, requiring deposits, or collecting advance payment without prior approval of the Commission. He further moved to grant a waiver of ARSD 20:10:24:02 (8). Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

7. TC00-074 IN THE MATTER OF THE FILING BY CITY OF BROOKINGS TELEPHONE COMPANY D/B/A SWIFTEL COMMUNICATIONS FOR APPROVAL OF ITS REVISED SERVICE TERRITORY AS A RESULT OF ANNEXATION. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

Ms. Farris recommended that the filing be approved.

Chairman Burg moved to approve the revised service territory for the City of Brookings Telephone dba Swiftel Communications. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

8. TC00-080 IN THE MATTER OF THE FILING FOR APPROVAL OF A RESALE AGREEMENT BETWEEN U S WEST COMMUNICATIONS, INC. AND HJN TELECOM, INC. (Staff Attorney: Camron Hoseck.)

Mr. Hoseck recommended that the resale agreement be approved.

Commissioner Schoenfelder moved to approve the resale agreement between HJN Telecom, Inc. and U S WEST Communications, Inc. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

9. TC00-081 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR BALTIC TELECOM COOPERATIVE. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Mr. Best recommended that a filing fee not to exceed $100,000 be assessed with an initial fee of $3,000.

Commissioner Schoenfelder moved to assess a filing fee not to exceed $100,000 with an initial fee of $3,000. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0

10. TC00-083 IN THE MATTER OF THE FILING FOR APPROVAL OF AN AGREEMENT FOR LOCAL WIRELINE NETWORK INTERCONNECTION AND SERVICE RESALE BETWEEN AVERA COMMUNICATION, L.L.C. AND U S WEST COMMUNICATIONS, INC. (Staff Attorney: Camron Hoseck.)

Mr. Hoseck recommended that the interconnection and service resale agreement be approved.

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

11. TC00-086 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR WEST RIVER COOPERATIVE TELEPHONE COMPANY. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Mr. Best recommended that a filing fee not to exceed $100,000 be assessed

Chairman Burg moved to assess a filing fee not to exceed $100,000. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

Natural Gas

1. IN THE MATTER OF COMMISSION INVOLVEMENT IN WILLISTON BASIN INTERSTATE PIPELINE'S REQUEST FOR REHEARING BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION REGARDING WILLISTON BASIN'S CURRENT RATE CASE RP00-107. (Staff Analyst: Dave Jacobson.)

Mr. Jacobson recommended that the Commission continue its participation in the analysis.

Chairman Burg moved to go forward with Commission participation in the analysis of WBI's current rate case by providing funding for consultants. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

Addendum

Consumer Issues

1. CT99-069 IN THE MATTER OF THE COMPLAINT FILED BY SANDY CURRAN, SISSETON, SOUTH DAKOTA, AGAINST OLS, INC. REGARDING SWITCHING TELECOMMUNICATIONS SERVICES THROUGH DECEPTIVE TACTICS. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

Ms. Cremer 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.

2. CT00-058 IN THE MATTER OF THE COMPLAINT FILED BY BRIAN LEROHL, FAIRVIEW, SOUTH DAKOTA, AGAINST BUSINESS OPTIONS, INC. AND HOLD BILLING SERVICES REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Charlene Lund. Staff Attorney: Camron Hoseck.)

Ms. Lund 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 Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

Electric

1. EL00-006 IN THE MATTER OF THE APPLICATION OF MIDAMERICAN ENERGY COMPANY FOR DETERMINATIONS PURSUANT TO SECTION 32(K)(2)(A) OF THE PUBLIC UTILITY HOLDING COMPANY ACT. (Staff Analyst: Michele Farris. Staff Attorney: Camron Hoseck.)

Randall Palmer, Mark Roberts and William Turnbull, representing MidAmerican Energy, explained the application. Ms. Farris explained Staff's position and recommended approval with the conditions as stated in the order reciting Commission determinations dated June 28, 2000.

Chairman Burg moved to approve MidAmerican Energy Company's proposal to purchase power from Cordova Energy Center, an affiliate of MidAmerican with the conditions set by Staff. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

Telecommunications

1. TC99-125 IN THE MATTER OF THE FILING FOR APPROVAL OF AN INTERCONNECTION AGREEMENT BETWEEN U S WEST COMMUNICATIONS, INC. AND PATHNET, INC. (Staff Attorney: Camron Hoseck.)

Mr. Hoseck commented on the interconnection agreement.

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

2. TC00-072 IN THE MATTER OF THE APPLICATION OF SIESTA TELECOM, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

Mr. Senger recommended that the Certificate of Authority request be denied.

Commissioner Schoenfelder moved to deny a Certificate of Authority to Siesta Telecom, Inc. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

Meeting adjourned.

Mary Giddings
Administrative Secretary