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South Dakota Public Utilities Commission Meeting
Thursday, July 13, 2000; 2:00 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 Attorney Karen Cremer; Utility Analysts Heather Forney, Keith Senger, Charlene Lund, Dave Jacobson, Harlan Best, Michele Farris and Leni Healy; Transportation/Warehouse Director Bob Knadle and Administrative Secretary Mary Giddings.

Also present were John Lovald, Global Crossing; Jeff Davis, MidAmerican; Jim Wilcox, NSP; Dick Tieszen, Sprint; Dave Prazak, Bernadeen Brutlag and Todd Guerrero, Otter Tail Power Co.; Randy Houdek, Sully es Telephone Coop; Larry Thompson and Brian B. Meyer, Fiber Ring Revenue Pooling Assoc., and Lori Grode, court reporter.

Joining the meeting by phone were Jim Stensen, Aldelphia; Al Krug and Paul Lehman, NSP; Sandy Hofstetter, Michelle Singer Nelson and Jerry Campbell, AT&T; Mark Bruno, DSI/INN-TEL; Jeff Decker and Dale Jepsen, NWPS; Larry Hettinger, Fiber Ring Revenue Pooling Association; Mutch Usera, Black Hills Power; and Colleen Sevold, US WEST.

Administration

1. Approval Of The Minutes Of The Commission Meeting Held On June 20, 2000. (Staff: Mary Giddings.)

Chairman Burg moved to approve the minutes of the meeting held on June 20, 1000. Commissioner Schoenfelder seconded and Commissioner Nelson 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 and responded to questions about slamming and fluffing from the Commissioners.

2. CE99-004 IN THE MATTER OF THE COMPLAINT FILED BY 72 THOMAS, LLC, SIOUX FALLS, SOUTH DAKOTA, AGAINST NORTHERN STATES POWER COMPANY REGARDING UNAUTHORIZED TRANSFER OF ACCOUNT FOR ELECTRICAL SERVICE. (Staff Analysts: Leni Healy/Keith Senger. Staff Attorney: Karen Cremer.)

Mr. Senger noted that the matter had 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

3. 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.)

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

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

4. CT99-089 IN THE MATTER OF THE COMPLAINT FILED BY KENNETH ERICKSON, WATERTOWN, SOUTH DAKOTA, AGAINST WILTEL, INC. AND OLS, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

Ms. Cremer noted that the matter had 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. CT00-003 IN THE MATTER OF THE COMPLAINT FILED BY ELAINE M. INGALLS, WATERTOWN, 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 had been settled and recommended dismissing the complaint and closing the docket.

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

6. CT00-005 IN THE MATTER OF THE COMPLAINT FILED BY WILLIAM L. FROST, WATERTOWN, 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 had 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. CT00-014 IN THE MATTER OF THE COMPLAINT FILED BY JULIE ROESLER ON BEHALF OF SLEEP INN, SIOUX FALLS, SOUTH DAKOTA, AGAINST SPRINT COMMUNICATIONS COMPANY L.P. REGARDING UNAUTHORIZED DISCONNECTION AND UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

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

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

8. CT00-045 IN THE MATTER OF THE COMPLAINT FILED BY RALPH C. CAMPBELL, WATERTOWN, 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 had 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

9. CT00-052 IN THE MATTER OF THE COMPLAINT FILED BY PHIL EDWARDS, SPEARFISH, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. AND AT&T COMMUNICATIONS OF THE MIDWEST, INC. REGARDING BILLING ISSUES. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

Colleen Sevold, representing US WEST, explained its position and asked that the motion to dismiss be approved. Michelle Singer Nelson and Jerry Campbell, representing AT&T, explained its position and asked that the motion to dismiss be approved. Ms. Healy, speaking on behalf of Mr. Edwards, stated that the complainant feels he has been incorrectly billed and wants both US WEST and AT&T to remain on the complaint. Ms. Cremer recommended leaving both US WEST and AT&T on the complaint at this time.

Commissioner Schoenfelder moved to deny US WEST and AT&T's motion to dismiss. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

10. CT00-075 IN THE MATTER OF THE COMPLAINT FILED BY JOYCE URLACHER, SALEM, SOUTH DAKOTA, AGAINST AT&T COMMUNICATIONS OF THE MIDWEST, INC. REGARDING CONTINUED SERVICES AND CHARGES AT HIGH RATES AFTER LONG DISTANCE SERVICES WERE SWITCHED TO ANOTHER CARRIER. (Staff Analyst: Charlene Lund. Staff Attorney: Karen Cremer.)

Ms. Lund recommended that AT&T's motion to dismiss be granted and to deny AT&T's motion to add McCook as a party.

Commissioner Schoenfelder moved to deny AT&T's motion to join McCook Telecom as a party to this action. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed
3-0.

Commissioner Schoenfelder moved to grant AT&T's motion to dismiss and further moved to close the docket and dismiss the complaint. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

Addendum

Consumer Issues

1. CT00-065 IN THE MATTER OF THE COMPLAINT FILED BY VESTA JENSEN, BROOKINGS, SOUTH DAKOTA, AGAINST GLOBAL CROSSING TELECOMMUNICATIONS, INC., FORMERLY ALLNET COMMUNICATION SERVICES, INC. D/B/A FRONTIER COMMUNICATIONS SERVICES AND TELTRUST COMMUNICATIONS SERVICES, INC. D/B/A TELTRUST AND D/B/A TCS REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

John Lovald, representing Global Crossing Telecommunications, Inc., explained its request to join DSI/INN-TEL as a party respondent. Mark Bruno, representing DSI/INN-TEL, acknowledged that a typographical error had occurred and agreed to the addition of DSI/INN- TEL as a party respondent.

Chairman Burg moved to join DSV/INN-TEL as a party respondent. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

Electric

1. EL00-013 IN THE MATTER OF THE PETITION OF NORTHERN STATES POWER COMPANY FOR APPROVAL OF A CUSTOMER BUYBACK PROGRAM. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

Jim Wilcox, Al Krug and Paul Lehman, representing NSP, explained NSP's petition and responded to questions. Mr. Senger answered inquiries from the Commissioners and its Staff. Mr. Senger recommended that the proposed buy-back program be approved with the conditions as stated in Staff's memo dated July 11, 2000.

Chairman Burg moved to approve the proposed buy-back program with the conditions as stated on Staff's memo dated July 11, 2000. Commissioner Schoenfelder seconded. Commissioner Nelson dissented. Motion passed 2-1.

2. EL00-015 IN THE MATTER OF THE FILING BY BLACK HILLS POWER AND LIGHT COMPANY FOR APPROVAL OF ITS 1999 ECONOMIC DEVELOPMENT ANNUAL REPORT. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

Chairman Burg moved to approve the 1999 Economic Development Report. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

3. EL00-017 IN THE MATTER OF THE FILING BY MIDAMERICAN ENERGY COMPANY FOR APPROVAL OF TARIFF REVISIONS. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

Jeff Davis, representing MidAmerican, explained MidAmerican's filing stating that there may be two customers qualifying under the proposed tariff. Mr. Senger recommended approval with the conditions as stated in Staff's memo dated July 11, 2000.

Chairman Burg moved to approve the proposed tariff revisions with the conditions as stated in Staff's memo dated July 11, 2000. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

4. EL00-018 IN THE MATTER OF THE PETITION OF OTTER TAIL POWER COMPANY FOR APPROVAL OF A RELEASED ENERGY TARIFF. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer. )

Todd Guerrero, representing Otter Tail Power Company, explained Otter Tail's petition. Mr. Senger explained Staff's position and recommended approval with the conditions as stated in Staff's memo dated July 12, 2000.

Chairman Burg moved to approve the proposed tariff with the conditions as stated in Staff's memo dated July 12, 2000. Commissioner Schoenfelder seconded. Commissioner Nelson dissented. Motion passed 2-1.

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: Karen Cremer.)

Chairman Burg moved to find no variance needed. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

Telecommunications

1. TC00-009 IN THE MATTER OF THE APPLICATION OF ADELPHIA BUSINESS SOLUTIONS OPERATIONS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

Jim Stensen, representing Adelphia Business Solutions Operations, Inc., explained Aldelphia's position and Mr. Senger recommended that the certificate of authority be granted with a continuing $25,000 bond requirement and waiver from ARSD 20:10:24:02(8).

Commissioner Nelson moved to grant a certificate of authority to Adelphia Business Solutions Operations, Inc. with the Staff recommendations as stated above. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

2. TC00-013 IN THE MATTER OF THE APPLICATION OF ADELPHIA BUSINESS SOLUTIONS OPERATIONS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE LOCAL EXCHANGE SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

Jim Stensen, representing Adelphia Business Solutions Operations, Inc., explained Aldelphia's position. Mr. Senger recommended granting the waivers from ARSD 20:10:32:03 parts (8) and (11), and also recommended granting the certificate of authority with a continuing $25,000 bond requirement and subject to rural safeguards.

Chairman Burg moved to grant the certificate of authority to provide local exchange services to Adelphia Business Solutions with the Staff recommendations as stated above. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

3. TC00-076 IN THE MATTER OF THE APPLICATION OF TELECENTS COMMUNICATIONS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

Ms. Farris recommended that the application for a certificate of authority for TeleCents Communications, Inc. be approved.

Chairman Burg moved to grant a certificate of authority to TeleCents Communications, Inc. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

4. TC00-077 IN THE MATTER OF THE APPLICATION OF MAXCESS, 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 recommended that Maxcess be granted a waiver from ARSD 20:10:32:03(11) and ARSD 20:10:24:02(8) and also recommended approval of the certificate of authority with restrictions from offering prepaid calling cards or from accepting customer deposits or advance payments and subject to rural safeguards.

Chairman Burg moved to grant a certificate of authority to Maxcess, subject to the Staff restrictions as stated above and he further moved to grant a waiver from ARSD 20:10:32:03(11) and ARSD 20:10:24:02(8). Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed
3-0.

5. TC00-082 IN THE MATTER OF THE APPLICATION OF LD EXCHANGE.COM, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

Ms. Farris recommended that the certificate of authority application be approved with a continuing $25,000 bond and waiver from ARSD 20:10:24:02(8) effective as of July 17, 2000.

Commissioner Nelson moved to grant a certificate of authority to LD Exchange.com, Inc. with a continuing $25,000 bond and waiver from ARSD 20:10:24:02(8) effective as of July 17, 2000. Chairman Burg seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

6. TC00-084 IN THE MATTER OF THE PETITION OF FIBER RING REVENUE-POOLING ASSOCIATION FOR APPROVAL OF REVENUE POOLING ARRANGEMENTS. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

Brian Meyer, representing the Fiber Ring Revenue-Pooling Association (FRRPA), explained its petition. Ms. Forney recommended that the petition be approved. Larry Thompson, FRRPA, replied to questions from the Commissioners.

Chairman Burg moved to approve the May 17, 2000, FRRPA petition requesting the Commission to:


1) find that FRRPA's pooling arrangements are in the public interest;


2) review and approve the pooling arrangements between FRRPA and the Ring User Local (RUL) Exchange Companies as represented in the RUL agreements and between FRRPA and the SONET Ring Providers (SRP) as represented in the SRP Agreements; and


3) issue an Order approving said arrangements, as provided in SDCL 49-31-59.1.
Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

7. TC00-087 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR MIDSTATE COMMUNICATIONS, INC. (Staff Analyst: Heather K. Forney. Staff Attorney: Karen Cremer.)

Ms. Forney recommended that a filing fee be approved, not to exceed $100,000 with an initial assessment of $3,000.

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

8. TC00-091 IN THE MATTER OF U S WEST COMMUNICATIONS, INC.'S CLASSIFICATION OF CERTAIN SERVICES. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Chairman Burg moved to grant intervention to the Association of Communications Enterprises and he further moved to set a procedural schedule. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

9. TC00-094 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR UNION TELEPHONE COMPANY. (Staff Analyst: Keith Senger. Staff Attorney: Karen E. Cremer.)

Mr. Senger recommended the assessment of a filing fee with an initial assessment of $3,000.

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

Meeting adjourned.

_____________________________________________
Mary R. Giddings
Administrative Secretary