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South Dakota Public Utilities Commission Meeting
Wednesday, September 13, 2000; 2:30 P.M.
State Capitol Building, Room LCR#1
Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING

Chairman Jim Burg called the meeting to order. 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 Charlene Lund, Dave Jacobson, Harlan Best, Heather Forney, Keith Senger, Leni Healy, and Michele Farris; and Administrative Secretary Mary Giddings.

Also present were Rich Coit, SDITC; Bob Miller, SD Electric Utility Companies; Tom Harmon, Sprint; Todd R. Chambers, City of Pierre; Sally Reiman, Consumers for Quality Telecom Choice; Brenda Kleinjan, SDREA; and Cheri Wittler, Court Reporter.

Joining the meeting by phone were Mary Lohnes, Midcontinent Cable; Colleen Sevold, Qwest; Jeff Davis, MidAmerican Energy; Jeff Decker, NWPS; Steve Weigler, AT&T; and Jim Wilcox, Xcel.

Administration

1. Approval Of The Minutes Of The Commission Meetings Held On August 22, 2000. (Staff: Mary Giddings.)

Commissioner Schoenfelder moved to approve the minutes of the meeting held on August 22, 2000. Chairman Burg 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. (Consumer Affairs: Leni Healy.)

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

2. IN THE MATTER OF DISMISSING COMPLAINTS CT99-027, CT00-026, CT00-082, CT00-083, CT00-086, CT00-087, CT00-093, CT00-094, and CT00-095.

CT99-027 IN THE MATTER OF THE COMPLAINT FILED BY EDWARD PELTZ, HILL CITY, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING POOR SERVICE AND REQUEST TO HAVE LINES UPDATED. (Analysts: Leni Healy. Michele Farris. Staff Attorney: Karen Cremer.)

CT00-026 IN THE MATTER OF THE COMPLAINT FILED BY TIMOTHY WILLIAM JOHNSON, MITCHELL, SOUTH DAKOTA, AGAINST USBI AND PREFERRED BILLING REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

CT00-082 IN THE MATTER OF THE COMPLAINT FILED BY GREG MAY, SIOUX FALLS, SOUTH DAKOTA, AGAINST FIRSTEL, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

CT00-083 IN THE MATTER OF THE COMPLAINT FILED BY JOHN AND BRENDA FORMAN, PIERRE, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. AND MCLEODUSA TELECOMMUNICATIONS SERVICES, INC. REGARDING THE FAILURE TO PROVIDE TELEPHONE SERVICE. (Staff Analyst: Charlene Lund. Staff Attorney: Karen Cremer.)

CT00-086 IN THE MATTER OF THE COMPLAINT FILED BY DENISE NGUYEN, RAPID CITY, SOUTH DAKOTA, AGAINST QWEST COMMUNICATIONS, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

CT00-087 IN THE MATTER OF THE COMPLAINT FILED BY JOYCE FERRIS ON BEHALF OF FERRIS CRANE SERVICE AND MIDWEST RECYCLING CENTER, HURON, SOUTH DAKOTA, AGAINST QWEST COMMUNICATIONS, INC., PREFERRED BILLING AND USBI REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Charlene Lund. Staff Attorney: Karen Cremer.)

CT00-093 IN THE MATTER OF THE COMPLAINT FILED BY TERRY AND REGINA VAN DYKE, SIOUX FALLS, SOUTH DAKOTA, AGAINST TELCO LONG DISTANCE WHOLESALE REGARDING A DISPUTE OVER RAISING LONG DISTANCE TELEPHONE RATES WITHOUT NOTICE. (Staff Analyst: Charlene Lund. Staff Attorney: Karen Cremer.)

CT00-094 IN THE MATTER OF THE COMPLAINT FILED BY TODD HUNTIMER ON BEHALF OF GLOBAL POLYMER INDUSTRIES, INC., ARLINGTON, SOUTH DAKOTA, AGAINST EQUALNET CORPORATION REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Charlene Lund. Staff Attorney: Karen Cremer.)

CT00-095 IN THE MATTER OF THE COMPLAINT FILED BY CHARLOTTE L. HANSEN, RAPID CITY, SOUTH DAKOTA, AGAINST SPRINT COMMUNICATIONS COMPANY L.P. AND QWEST CORPORATION REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

Ms. Cremer noted that all of the matters had been settled and recommended dismissing the complaints and closing the dockets.

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

3. CT00-089 IN THE MATTER OF THE COMPLAINT FILED BY HELEN CHRISTENSEN, COLTON, SOUTH DAKOTA, AGAINST SPRINT COMMUNICATIONS COMPANY L.P. AND BUSINESS OPTIONS, INC., REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

Tom Harmon, representing Sprint, explained why Crusade Communication should be added as a party. Ms. Cremer noted that Crusade Communications had not returned calls and the Complainant was not opposed to the addition of Crusade Communications as a party.

Chairman Burg moved to add Crusade as a party with the hearing on October 3, 2000. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

4. CT00-090 IN THE MATTER OF THE COMPLAINT FILED BY ED AND JANICE ST. GEMME, DAKOTA DUNES, SOUTH DAKOTA, AGAINST AT&T COMMUNICATIONS OF THE MIDWEST, INC., REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

Steve Weigler, representing AT&T, explained why Qwest should be added as a party. Colleen Sevold, representing Qwest, objected to Qwest being added as a party.

Commissioner Schoenfelder moved to add Qwest as a party with the hearing on November 2, 2000. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

Electric

1. EL00-019 IN THE MATTER OF THE FILING BY NORTHERN STATES POWER COMPANY FOR APPROVAL OF ITS REVISED RATE SHEETS FOR ITS OCCASIONAL DELIVERY ENERGY SERVICE AND TIME OF DELIVERY ENERGY SERVICE. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

Jim Wilcox, representing NSP dba Xcel, explained the proposed changes. Ms. Farris recommended that the revised rate sheets be approved.

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

2. EL00-022 IN THE MATTER OF THE FILING BY MIDAMERICAN ENERGY COMPANY FOR APPROVAL OF TARIFF REVISIONS. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

Jeff Davis, representing MidAmerican, explained the revisions. Ms. Farris recommended that the revisions be approved.

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

3. EL00-023 IN THE MATTER OF THE APPLICATION OF THE CITY OF PIERRE FOR A CONSTRUCTION PERMIT FOR 4.83 MILES OF 115KV ELECTRIC TRANSMISSION LINE IN HUGHES COUNTY, SOUTH DAKOTA. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

Ms. Cichos recommended that the minimum filing fee of $8,000 be assessed.

Commissioner Schoenfelder moved to assess the minimum filing fee of $8,000. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

Natural Gas

1. NG00-006 IN THE MATTER OF THE FILING BY MIDAMERICAN ENERGY COMPANY FOR APPROVAL OF TARIFF REVISIONS. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

Ms. Farris recommended that the proposed tariff revisions be approved.

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

2. NG00-007 IN THE MATTER OF THE FILING BY NORTHWESTERN PUBLIC SERVICE COMPANY FOR APPROVAL OF TARIFF REVISIONS. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

Jeff Decker, representing NWPS, explained the proposed revisions. Mr. Senger recommended that the revisions be approved.

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

Telecommunications

1. TC99-086 IN THE MATTER OF THE FILING BY U S WEST COMMUNICATIONS, INC., FOR APPROVAL OF AGREEMENT FOR LOCAL WIRELINE NETWORK INTERCONNECTION AND SERVICE RESALE BETWEEN DSLNET COMMUNICATIONS, LLC AND U S WEST COMMUNICATIONS, INC. (Staff Attorney: Karen Cremer.)

Ms. Cremer recommended that the proposed amendments to the interconnection agreement be approved.

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

2. TC00-014 IN THE MATTER OF THE APPLICATION OF COMM SOUTH COMPANIES, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE LOCAL EXCHANGE SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

Ms. Cremer recommended deferral, noting that Comm South Companies, Inc. representative Jim Robbennolt will file an amendment. Action was deferred.

3. TC00-064 IN THE MATTER OF THE APPLICATION OF ESSENTIAL.COM, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES, INCLUDING LOCAL EXCHANGE SERVICES, IN SOUTH DAKOTA. (Staff Analyst: Heather Forney.)

Ms. Forney recommended that the Commission grant the withdrawal as requested by essential.com and close the docket.

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

4. TC00-060 IN THE MATTER OF THE FILING FOR APPROVAL OF A RESALE AGREEMENT BETWEEN U S WEST COMMUNICATIONS, INC. AND ESSENTIAL.COM. (Staff Attorney: Karen Cremer.)

Ms. Cremer noted that essential.com's application for certificate of authority had been withdrawn; therefore, the Commission should not approve the interconnection agreement and should close the docket.

Chairman Burg moved to deny approval of the interconnection agreement and close the docket. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

5. TC00-075 IN THE MATTER OF THE APPLICATION OF ADVANCED TELCOM GROUP, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES, INCLUDING LOCAL EXCHANGE SERVICES, IN SOUTH DAKOTA. (Staff Analyst: Heather Forney.)

Ms. Forney recommended that the certificate of authority be granted 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 Advanced TelCom Group, Inc. with the restrictions as noted above. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

6. TC00-085 IN THE MATTER OF THE APPLICATION OF MIDCO COMMUNICATIONS, INC. AND SIOUX FALLS CABLE TELEVISION TO TRANSFER THEIR RESPECTIVE CERTIFICATES OF AUTHORITY TO MIDCONTINENT COMMUNICATIONS. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

Mary Lohnes, representing Midcontinent Communications, explained the transfers. Mr. Senger recommended that the transfers be approved with waivers from ARSD 20:10:24:02 (8) and (12) and ARSD 20:10:32:03 (11) and (14) with a continuous $25,000 surety bond and subject to rural safeguards.

Chairman Burg moved to approve the proposed transfers of certificates of authority with restrictions, bond, and waivers as noted above. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

7. TC00-097 IN THE MATTER OF THE APPLICATION OF NORSTAR COMMUNICATIONS, INC. D/B/A BUSINESS SAVINGS PLAN FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Heather Forney.)

Ms. Forney recommended that the certificate of authority be granted with restrictions from offering prepaid calling cards and from accepting customer deposits and advance payments.

Commissioner Nelson moved to grant a certificate of authority to Norstar Communications, Inc. d/b/a Business Savings Plan with restrictions as noted above. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

8. TC00-105 IN THE MATTER OF THE APPLICATION OF SERVISENSE.COM, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES, INCLUDING LOCAL EXCHANGE SERVICES, IN SOUTH DAKOTA. (Staff Analyst: Keith Senger.)

Mr. Senger recommended that a certificate of authority be granted subject to rural safeguards and with restrictions from offering a prepaid calling card or require deposits or advance payments without prior approval of the Commission. .

Chairman Burg moved to grant a certificate of authority to ServiSense.com, Inc. with restrictions as noted above. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

9. TC00-098 IN THE MATTER OF THE FILING FOR APPROVAL OF A RESALE AGREEMENT BETWEEN U S WEST COMMUNICATIONS, INC. AND SERVISENSE.COM, INC. (Staff Attorney: Karen Cremer.)

Ms. Cremer recommended that the interconnection agreement be approved.

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

10. TC00-111 IN THE MATTER OF THE APPLICATION OF IPVOICE COMMUNICATIONS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES, INCLUDING LOCAL EXCHANGE SERVICES, IN SOUTH DAKOTA. (Staff Analyst: Heather Forney.)

Ms. Forney recommended that the certificate of authority be approved 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 IPVoice Communications, Inc. with restrictions as noted above. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

11. TC00-120 IN THE MATTER OF THE APPLICATION OF TELCORP, LTD. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Heather Forney.)

Ms. Forney recommended that the certificate of authority be granted and noted that the application was received on August 9, 2000 and cannot be issued until October 9, 2000, due to the 60-day rule.

Commissioner Nelson moved to grant a certificate of authority to Telcorp, Ltd. effective October 9, 2000. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

12. TC00-126 IN THE MATTER OF THE FILING FOR APPROVAL OF A SECOND AMENDMENT TO AN INTERCONNECTION AGREEMENT BETWEEN MIDCO COMMUNICATIONS, INC. D.B.A. MIDCONTINENT COMMUNICATIONS, INC. AND QWEST CORPORATION. (Staff Attorney: Karen Cremer.)

Ms. Cremer recommended that the amendment to the interconnection agreement be approved.

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

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

The following companies have failed to timely file their gross receipts tax as required by SDCL 49- 1A:

ACC National Long Distance
Accutel Communications, Inc.
ACOMM, Inc
Atlantic Telephone Co.
Clear Point Communications fka FON Digital Network, Inc.
Columbia Tele d/b/a aXessa
Comdata Telecommunications Services
ConnectAmerica, Inc. d/b/a Connect US
ConQuest Operator Services Corp
Enhanced Communications Network, Inc.
Federal TransTel, Inc.
Home Owners Long Distance
IdealDial Corp
Inacom Communications, Inc.
Inmark, Inc. d/b/a Preferred Billing
Intercontinental Communications Group, Inc. d/b/a Fusion
International Telecommunications Corp
Legends Communications, Inc.
Long Distance America
NeTel Inc d/b/a TEL3
Nor Communications, Inc.
PNV.net Inc was Park N View
QCC, Inc.
Quest Telecommunications, Inc.
SBR, Inc.
Small Business Billing
StormTel
USBG, Inc.

Ms. Cichos stated that the gross receipts tax was due on June 1, 2000, and that two letters had been sent to the delinquent companies. Two companies, Alliance Group Services and Verizon Select Service Inc. f/k/a GTE Communications Corp., have paid and should be removed from the list.

Chairman Burg moved to issue an order to show cause as to why the Commission should not fine, or suspend or revoke the certificates of authority of each of the above listed delinquent companies for failure to pay the requisite gross receipts tax. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

Meeting adjourned.

________________________________________
Mary R. Giddings

Administrative Assistant