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South Dakota Public Utilities Commission Meeting
Tuesday, December 12, 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; Staff Attorneys Karen Cremer and Kelly Frazier; Utility Analysts Charlene Lund, Dave Jacobson, Harlan Best; Heather Forney, Keith Senger, Leni Healy, Martin Bettmann, Michele Farris, Assistant Executive Director Sue Cichos; and Administrative Secretary Mary Giddings.
Also present were Thomas Harmon, Sprint; Jim Robbennolt, Western Telecom; Richard Coit, SDITC; Thomas Tobin and Timothy G. Rich, Aberdeen Finance; Donald Niles and Les Sumption, S & S Communications; Darla Pollman Rogers, Sully Buttes Telephone Cooperative; Kyle White, Black Hills Power; Larry Hettinger, Martin and Associates; Terry Barge, private citizen; and Cheri Wittler, court reporter.
Joining the meeting by phone were Colleen Sevold, Tom Welk, Vernessie Reese and Jim Cushman, Qwest; Darrell Bolen, Don Lee and Marlene Bennett, Martin & Associates; Mary Lohnes, Midcontinent Communications; Steve Weigler and Sandy Hofstetter, AT&T; Greg Bernard, Black Hills FiberCom; Bob Schuetzle and Marsha Huber, Valley Communications Coop; Tim Geraghty and Ron Jackson, Global Telelink Services; Fred Campbell, Ionex; and Gary Keister, Western Telecom.
Administration
1. Approval Of The Minutes Of The Commission Meetings Held On November 30 and December 1, 2000. (Staff: Mary Giddings.)
Minutes were held over for approval at the January 4, 2001 Commission meeting.
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 CT00-060, CT00-068, CT00-084, CT00-090, CT00-104, and CT00-106.
Ms. Cremer noted that the matters had been settled and recommended dismissing the complaints and closing the dockets.
Commissioner Nelson moved to dismiss the complaints and close the dockets in CT00-060, CT00-068, CT00-084, CT00-090, CT00-104, and CT00-106. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.
Electric
Ms. Cremer recommended that action be deferred. Action was deferred.
Telecommunications
Jim Robbennolt, representing Western Telecom, explained the settlement reached by the company and Staff. He noted that the company had not done business in South Dakota since May 2000 and had agreed to pay $5000 to the State and $1500 in costs to the Commission. Ms. Cremer recommended that the settlement agreement be approved, the show cause action be dismissed and the docket closed.
Commissioner Schoenfelder moved to approve the settlement agreement, dismiss the show cause action and close the docket when the checks clear. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.
Ms. Cremer recommended that the interconnection agreement be denied and that the docket be closed.
Chairman Burg moved to deny the interconnection agreement and close the docket. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.
Ms. Cremer recommended that action be deferred. Action was deferred.
Mr. Best and Mr. Rislov recommended that the revenue requirement be approved.
Chairman Burg moved to approve the revenue requirement. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.
Don Lee, representing South Dakota Network, explained the revenue requirement. Mr. Rislov recommended that it be approved.
Commissioner Schoenfelder moved to approve the revenue requirement with an effective date of January 1, 2001. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.
After lengthy discussion and explanations of the certificate of authority application by Mr. Senger, Don Niles and Les Sumption of S&S Communications (S&S), Mr. Senger recommended that the certificate of authority be granted with stipulations that the $50,000 surety bond be continued and adjusted every six months to provide 100% coverage of the prepaid amounts not covered under the collateral agreement. At Chairman Burg's request, Thomas Tobin and Timothy Rich, Aberdeen Finance Corporation (AFC) , stated that the finance company and S&S will send a letter to each customer explaining the customer's limited liability should S&S Communications/Alterna-Cell be unable to fulfill its contracts. Ms. Wiest recommended that the AFC/S&S collateral agreement be incorporated in the certificate of authority order.
Chairman Burg moved to grant S&S Communications/Alterna-Cell a certificate of authority with the stipulation that the $50,000 surety bond be continued and adjusted every six months to provide 100% coverage of the prepaid amounts not covered under the collateral agreement. He further moved to have AFC and S&S send a letter to all of S&S' long distance customers for which AFC holds financing agreements, informing them of the collateral agreement and that the collateral agreement be incorporated by reference. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.
Ms. Cremer noted that the filing had been withdrawn and recommended closing the docket.
Chairman Burg moved to deny the resale agreement and close the docket. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.
Bob Schuetzle, Valley Telecommunications Cooperative Association, Inc., explained the boundary changes which moved the staggered and inconsistent boundary lines to section lines or county roads and noted that no customer or extended area service issues are involved. Mr. Senger recommended that the boundary change be approved and amended certificates of authority be granted with waivers from ARSD 20:10:32:03, parts 1 through 7, 9 through 21, and 23.
Commissioner Schoenfelder moved to approve the boundary territory change between Valley and West River and grant the amended certificates of authority with the waivers as noted above. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.
Ms. Cremer recommended that the resale agreement be denied and that the docket be closed.
Commissioner Schoenfelder moved to deny the resale agreement between Qwest Corporation and Choctaw Communications, Inc. d/b/a Smoke Signal Communications and to close the docket. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.
Ms. Forney explained the amended certificate of authority application and recommended that it be approved to provide facilities-based local exchange service, subject to rural safeguards, and with a waiver from ARSD 20:10:32:03. She further recommended that Ionex be restricted to providing resold services to its current customers in the exchanges of Gregory, Clearfield, Witten, Lesterville, Centerville, Viborg, Tabor, Hudson, and Sisseton and that those exchanges be granted rural safeguards. Ms. Pullman Rogers, representing Sully Cooperative, Inc., noted that it had no objection to the application.
Chairman Burg moved to grant an amended certificate of authority to Ionex Communications North, Inc. with the waiver, restrictions and subject to rural safeguards as noted above. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.
Tom Welk and Vernessie Reese, Qwest Corporation, explained the cost recovery true-up. Mr. Best recommended that it be approved.
Chairman Burg moved to approve the revised cost recovery true-up study with an effective date of January 1, 2001. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.
Rich Coit, SDITC, stated that SDITC wished to withdraw the petition to intervene.
Chairman Burg moved to grant SDITC's request to withdraw its petition to intervene. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.
Addendum
Tom Welk, Qwest, explained the petition to intervene. Kyle White, Black Hills Power, and Larry Hettinger, Martin and Associates, argued that the petition should not be granted. Gregory Bernard, Black Hills FiberCom, urged that intervention be denied. Ms. Forney recommended that Qwest be granted intervention due to its pecuniary interest.
Commissioner Schoenfelder moved to grant intervention to Qwest. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.
Action was deferred.
Addendum
Telecommunications
Commissioner Nelson moved to dismiss the complaint and close the docket. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.
Chairman Burg moved to grant intervention to AT&T, McLeodUSA and Midcontinent. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.
Natural Gas
Mr. Bettmann noted that MDU safety procedures were adequate and recommended that the docket be closed.
Chairman Burg moved to close the docket. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.
Meeting adjourned.
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Mary R. Giddings
Administrative Secretary
