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South Dakota Public Utilities Commission Meeting
Thursday, November 30, 2000; 2:00 P.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; Staff Attorneys Karen Cremer and Kelly Frazier; Utility Analysts Charlene Lund, Dave Jacobson, Harlan Best, Heather Forney, Keith Senger, Leni Healy, and Michele Farris; Transportation/Warehouse Director Bob Knadle; and Administrative Secretary Mary Giddings.

Also present were Bob Miller, South Dakota Electric Utilities Companies; Jim Pahl and Allen G. Nelson, West River Electric Association, Inc.; Vic Simmons, Rushmore Electric Power Coop; Michael Bowers, Rushmore Engineering; Ed Anderson, SDREA; Rich Coit, SDITC; Brian Meyer and Darla Pollman Rogers, Sully Buttes Telephone Cooperative, Inc.; and Lori Grode, court reporter.

Joining the meeting by telephone were Herbert Reprecht and Tom Welk, Qwest Corporation; Darrell Bolen, Don Lee and Marlene Bennett, Martin & Associates - Baltic SD Network; Mary Lohnes, Midcontinent Communications; Cindy Grosvenor & Tom Stogdill, Telec Consulting; John Miller, Sioux Valley-Southwestern Electric Cooperative; Neil Cowan, AT&T; Fred Campbell, Ben Dicken and Sue Weiske, Ionex; Jim Wilcox, Xcel Energy; and Brad Whitsell, South Dakota Network, Inc.

Administration

1. Approval Of The Minutes Of The Commission Meeting Held On November 2, 2000. (Staff: Mary Giddings.) Click to See Original Minutes.

Ms. Giddings stated that a correction was made in the minutes for CT00-060. The original minutes read "Tom Harmon, representing Sprint, stated that Brian Jones, representing I-Link, was not authorized to practice law in South Dakota and therefore should not be allowed to testify." The corrected minutes read "Tom Harmon, representing Sprint, argued that Brian Jones, representing I-Link, should not be allowed to represent a party because he is not authorized to practice law in South Dakota."

Commissioner Schoenfelder moved to approve the corrected minutes of the November 2, 2000, Commission meeting. Commissioner Nelson 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. (Consumer Affairs: Leni Healy.)

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

2. IN THE MATTER OF DISMISSING COMPLAINTS CE00-002, CT00-085.

CE00-002 IN THE MATTER OF THE COMPLAINT FILED BY RUSSELL F. BARTUNEK, SIOUX FALLS, SOUTH DAKOTA, AGAINST XCEL ENERGY, INC. REGARDING BILLING DISPUTE AND PROPERTY DAMAGE. (Staff Analyst: Charlene Lund. Staff Attorney: Kelly Frazier.)

CT00-085 IN THE MATTER OF THE COMPLAINT FILED BY FR. YVON SHEEHY, SCJ, ON BEHALF OF ST. MARY'S CATHOLIC CHURCH, LOWER BRULE, SOUTH DAKOTA, AGAINST BUSINESS OPTIONS, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES AND UNAUTHORIZED BILLING FOR SERVICES. (Staff Analyst: Charlene Lund. Staff Attorney: Karen Cremer.)

Mr. Frazier and Ms. Cremer noted that 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 in CE00-002 and CT00- 085. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

Electric

1. EL00-030 IN THE MATTER OF THE PETITION FOR DECLARATORY RULING OF WEST RIVER ELECTRIC ASSOCIATION, INC. ON WHETHER A PROPOSED TRANSMISSION LINE MEETS THE DEFINITION OF SDCL 49-41B-2.1. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

Jim Pahl, representing West River Electric Association, Inc. (WREA), presented a slide presentation explaining the proposed construction of a 115 kilovolt transmission line north of Rapid City, South Dakota. Michael Bowers, Rushmore Engineering, Allen Nelson, WREA legal council, and Vic Simmons, Rushmore Electric Power Co-op, further explained the proposal. Ms. Farris stated that the transmission line would be two feet outside of the public highway right of way. Ms. Cremer noted that more than one mile of the transmission line does not follow section lines, property lines, roads, highways or railroads. Commissioner Schoenfelder inquired about the environmental study for the project.

Chairman Burg moved to not take jurisdiction. Motion died for lack of a second.
Commissioner Nelson moved to find that the Commission has siting jurisdiction. Commissioner Schoenfelder seconded. Chairman Burg dissented. Motion passed 2-1.

2. EL00-031 IN THE MATTER OF THE JOINT REQUEST FOR ELECTRIC SERVICE TERRITORY EXCEPTION BETWEEN SIOUX VALLEY-SOUTHWESTERN ELECTRIC COOPERATIVE, INC. AND THE CITY OF BROOKINGS, SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Kelly Frazier.)

John Miller, Sioux Falls-Southwestern Electric Cooperative, explained the exception request. Mr. Senger recommended that the proposed territory exception be approved.

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

Telecommunications

1. TC96-149 IN THE MATTER OF CARIBBEAN TELEPHONE AND TELEGRAPH D/B/A THE LONG DISTANCE COMPANY'S FAILURE TO SUBMIT AN ANNUAL REPORT PURSUANT TO ARSD 20:10:24:04. (Staff Attorney: Karen Cremer.)

Ms. Cremer recommended closing the docket noting that Caribbean Telephone and Telegraph d/b/a The Long Distance Company, has filed for bankruptcy, does not owe gross receipts tax and is no longer operating. Commissioner Schoenfelder asked if the COA needed to be revoked. Mr. Best explained that the COA is discontinued when a company is no longer in business.

Commissioner Nelson moved to close the docket in TC96-149. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

2. TC97-211 IN THE MATTER OF TOTAL NATIONAL COMMUNICATIONS D/B/A TOTAL WORLD TELECOM'S FAILURE TO SUBMIT A REPORT AND PAY THE GROSS RECEIPTS TAX. (Staff Attorney: Karen Cremer.)

Ms. Cremer recommended closing the docket since Total National Communications
had filed bankruptcy and there is no hope of recovering the gross receipts tax from them.

Chairman Burg moved to close the docket in TC97-211. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

3. TC00-059 IN THE MATTER OF THE FILING BY U S WEST COMMUNICATIONS, INC. FOR APPROVAL OF REVISIONS TO ITS EXCHANGE AND NETWORK SERVICES TARIFF. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Tom Welk, representing Qwest Corporation (formerly U S WEST Communications, Inc.), explained the proposed tariff revisions.

Chairman Burg moved to approve the proposed tariff revisions with the date of the order as the effective date. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

4. TC00-069 IN THE MATTER OF THE APPLICATION OF NATEL, LLC FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

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

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

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

Don Lee, representing Baltic Telecom Cooperative, explained the cost study. Mr. Best recommended that the revenue requirement be approved. Mr. Rislov requested further documentation. Action was deferred.

6. 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 E. Cremer.)

Mr. Best recommended the revenue requirement be approved.

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

7. TC00-093 IN THE MATTER OF THE APPLICATION OF STERLING TIME COMPANY 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 be granted with a waiver from providing a cash flow statement.

Chairman Burg moved to grant a certificate of authority to Sterling Time Company with the waiver as noted above. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

8. TC00-095 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR BRIDGEWATER-CANISTOTA INDEPENDENT TELEPHONE COMPANY. (Staff Analyst: Harlan Best. Staff Attorney: Karen E. Cremer.)

Cindy Grosvenor, Telec Consulting, explained the cost study. Mr. Best recommended that the revenue requirement be approved.

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

9. TC00-106 IN THE MATTER OF THE ESTABLISHMENT OF A SWITCHED TRANSPORT RATE FOR SOUTH DAKOTA NETWORK, INC. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Don Lee, South Dakota Network, explained the cost study. Mr. Best recommended that the revenue requirement be approved. Mr. Rislov requested further documentation. Action was deferred.

10. TC00-116 IN THE MATTER OF THE APPLICATION OF TELERGY NETWORK SERVICES, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES, INCLUDING LOCAL EXCHANGE SERVICES, IN SOUTH DAKOTA. (Staff Analyst: Heather Forney.)

Ms. Forney explained the application and recommended that it be approved with waivers from ARSD 20:10:32:03(12) (c), 20:10:32:03(13), 20:10:24:02(8), and 20:10:32:03(11); subject to rural safeguards; and with a $25,000 bond requirement.

Chairman Burg moved to grant a certificate of authority to Telergy Network Services, Inc. with waivers, rural safeguards and the bond requirement as noted above. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

11. TC00-124 IN THE MATTER OF THE FILING FOR APPROVAL OF TRANSFER OF CERTIFICATE OF AUTHORITY FROM QUINTELCO, INC. TO LOCAL TELCOM HOLDINGS, LLC. D/B/A TRANSPOINT COMMUNICATIONS. (Staff Analyst: Heather Forney.)

Ms. Forney explained the request to withdraw the application without prejudice and recommended that the docket be closed.

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

12. TC00-128 IN THE MATTER OF THE APPLICATION OF PAC-WEST TELECOMM, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger.)

Mr. Senger explained the certificate of authority application and recommended that it be approved with restrictions from offering prepaid services, accepting customer deposits or advance payments.

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

13. TC00-134 IN THE MATTER OF THE APPLICATION OF PREMIERE NETWORK SERVICES, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES, INCLUDING LOCAL EXCHANGE SERVICES, IN SOUTH DAKOTA. (Staff Analyst: Michele Farris.)


Ms. Farris explained the application for a certificate of authority and recommended that it be approved with a waiver from filing a cash flow statement, restrictions from offering prepaid calling cards, accepting customer deposits or advance payments and subject to rural safeguards.

Chairman Burg moved to grant a certificate of authority to Premiere Network Services, Inc. with the waiver and restrictions as noted above and subject to rural safeguards. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

14. TC00-170 IN THE MATTER OF THE APPLICATION OF 360NETWORKS (USA) INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE LOCAL EXCHANGE SERVICES IN SOUTH DAKOTA. (Staff Analyst: Heather Forney.)

Ms. Forney explained the 360networks (USA) inc. application for a certificate of authority. She recommended that it be approved with a waiver from ARSD 20:10:32:03(11), continuing $25,000 bond, and subject to rural safeguards with an effective date of December 10, 2000.

Chairman Burg moved to grant a certificate of authority to 360networks (USA) inc. with the waiver, bond requirement and rural safeguards as noted above with an effective date of December 10, 2000. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

15. TC00-171 IN THE MATTER OF THE APPLICATION OF IONEX COMMUNICATIONS NORTH, INC. FOR AN AMENDED CERTIFICATE OF AUTHORITY TO INCLUDE PROVIDING FACILITIES-BASED LOCAL EXCHANGE SERVICES IN SOUTH DAKOTA. (Staff Analyst: Heather Forney. Staff Attorney: Kelly Frazier.)

Ms. Forney recommended that intervention be granted to Sully Buttes Telephone Cooperative, Inc. Fred Campbell and Sue Weiske, Ionex Communications North, Inc. , spoke in opposition to the intervention request. Darla Pohlman Rogers, representing Sully Buttes Telephone Cooperative, Inc., explained the application. Ms. Wiest recommended that intervention be granted.

Commissioner Schoenfelder moved to grant intervention to Sully Buttes Telephone Cooperative, Inc. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

16. TC00-172 IN THE MATTER OF THE FILING BY QWEST CORPORATION FOR APPROVAL OF REVISIONS TO ITS ACCESS SERVICE TARIFF. (Staff Analyst: Harlan Best. Staff Attorney: Kelly Frazier.)

Herbert Reprecht, representing Qwest Corporation, explained the tariff revisions. Mr. Best recommended that the revisions be approved.

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

17. TC00-177 IN THE MATTER OF THE APPLICATION OF USA DIGITAL COMMUNICATIONS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Kelly Frazier.)

Mr. Senger recommended that USA Digital Communications, Inc. be granted a certificate of authority with restrictions from offering prepaid services, accepting customer deposits or advance payments and with an effective date of January 6, 2001.

Chairman Burg moved to grant a certificate of authority to USA Digital Communications, Inc. with restrictions as noted above and with an effective date of January 6, 2001. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

Meeting adjourned.

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Mary R. Giddings, Administrative Secretary