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South Dakota Public Utilities Commission Meeting
Tuesday, March 6, 2001; 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; Executive Director Bill Bullard; Commission Advisor Greg Rislov; Commission Counsel Rolayne Ailts Wiest; Staff Attorneys Karen Cremer and Kelly Frazier; Utility Analysts Dave Jacobson, Harlan Best, Heather Forney, Keith Senger, Leni Healy, Martin Bettmann and Michele Farris; Assistant Executive Director Sue Cichos; and Administrative Secretary Mary Giddings.

Also present were Bob Miller, SD Electric Utility Companies; Darla Pollman Rogers, Citizens Telecommunications Company of Nebraska, Inc.; and Neil Fulton, WorldCom.

Joining the meeting by telephone were Colleen Sevold, Qwest Corporation; and Suzan Stewart, Glenn Iverson, Jeff Gust, Bill Turnbull, Greg Schaefer, Diane Noll, and Chuck Montgomery, MidAmerican Energy Company.

Administration

1. Approval Of The Minutes Of The Commission Meetings Held On February 14 and 21, 2001. (Staff: Mary Giddings.)

Commissioner Nelson moved to approve the minutes of the February 14 and 21, 2001, Commission meetings. Chairman Burg seconded. Motion passed 2-0.

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 regular Commission meeting.

2. CT00-108 IN THE MATTER OF THE COMPLAINT FILED BY VERN L. DOUVILLE, CHAMBERLAIN, SOUTH DAKOTA, AGAINST AMERICA'S TELE-NETWORK CORP. AND ILD TELESERVICES, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Charlene Lund. Staff Attorney: Kelly Frazier.)

Ms. Healy recommended that the complaint be dismissed and the docket closed.

Commissioner Nelson moved to dismiss the complaint and close the docket. Chairman Burg seconded. Motion carried 2-0.

3. CT01-005 IN THE MATTER OF THE COMPLAINT FILED BY JERRY R. OURADA, SIOUX FALLS, SOUTH DAKOTA, AGAINST WORLDCOM REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Kelly Frazier.)

CT01-006 IN THE MATTER OF THE COMPLAINT FILED BY JOHN P. DONAHOE, SIOUX FALLS, SOUTH DAKOTA, AGAINST WORLDCOM REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Kelly Frazier.)

Neil Fulton, representing WorldCom, explained WorldCom's motion to consolidate CT01- 005 and CT01-006. Ms. Healy noted that the complainants were not opposed to the consolidation. Ms. Wiest recommended that the two dockets be consolidated for hearing purposes.

Chairman Burg moved to consolidate dockets CT01-005 and CT01-006. Commissioner Nelson seconded. Motion passed 2-0.

Electric

1. EL01-003 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: Keith Senger. Staff Attorney: Karen Cremer.)

Chairman Burg noted that no intervention had been filed. Suzan Stewart, representing MidAmerican Energy Company, explained the application. Mr. Senger recommended that the amendment to the purchase power agreement be approved. Jeff Gust and Greg Schaefer, MidAmerican Energy, answered Staff questions.

Chairman Burg moved to approve the application. Commissioner Nelson seconded. Motion passed 2-0.

Natural Gas

1. NG01-001 IN THE MATTER OF THE FILING BY MIDAMERICAN ENERGY COMPANY FOR APPROVAL OF ITS 2000 ECONOMIC DEVELOPMENT REPORT AND ITS 2001 ECONOMIC DEVELOPMENT PLAN. (Staff Analyst: Heather Forney. Staff Attorney: Kelly Frazier.)

Suzan Stewart, representing MidAmerican Energy Company, explained the 2000 Economic Development report and its 2001 Economic Development budget. Ms. Forney recommended that the economic development plan be approved.

Commissioner Nelson moved to approve the 2000 Economic Development Report and the 2001 Economic Development Plan for MidAmerican Energy Company. Chairman Burg seconded. Motion passed 2-0.

Telecommunications

1. TC00-113 IN THE MATTER OF THE APPLICATION OF CITIZENS TELECOMMUNICATIONS COMPANY OF NEBRASKA, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE LOCAL EXCHANGE SERVICES IN SOUTH DAKOTA. (Staff Analyst: Michele Farris.)

Darla Pollman Rogers, representing Citizens Telecommunications Company of Nebraska, Inc., explained the certificate of authority application. Ms. Farris recommended that action be deferred until the sale is closed. Ms. Wiest recommended that action be deferred. Action was deferred.

2. TC00-174 IN THE MATTER OF THE APPLICATION OF JIREHCOM, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Michele Farris. Staff Attorney: Kelly Frazier.)

Ms. Farris explained the certificate of authority application and recommended that it be granted with a waiver of ADSD 20:10:24:02(8), and with restrictions from offering prepaid calling cards, accepting customer deposits or advance payments.

Chairman Burg moved to grant a certificate of authority to JirehCom, Inc. with the waiver and restrictions as noted above. Commissioner Nelson seconded. Motion passed 2-0.

3. TC00-189 IN THE MATTER OF THE APPLICATION OF CLARICOM NETWORKS, INC. D/B/A STAPLES COMMUNICATIONS-NETWORKS FOR A CERTIFICATE OF AUTHORITY TO PROVIDE LOCAL EXCHANGE SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Kelly Frazier.)

Mr. Senger recommended that Claricom Networks, Inc. be allowed to withdraw its application for a certificate of authority.

Chairman Burg moved to allow Claricom Networks, Inc. to withdraw its application. Commissioner Nelson seconded. Motion passed 2-0.

4. TC00-195 IN THE MATTER OF THE FILING FOR APPROVAL OF AN INTERCONNECTION AGREEMENT BETWEEN QWEST CORPORATION AND USA DIGITAL, INC. (Staff Attorney: Kelly Frazier.)

Ms. Wiest recommended that the interconnection agreement be denied because the company did not have a certificate of authority.

Commissioner Nelson moved to deny the interconnection agreement. Chairman Burg seconded. Motion passed 2-0.

5. TC00-196 IN THE MATTER OF THE APPLICATION OF Z-TEL COMMUNICATIONS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE LOCAL EXCHANGE SERVICES IN SOUTH DAKOTA. (Staff Analyst: Michele Farris. Staff Attorney: Kelly Frazier.)

Ms. Farris explained the application of Z-Tel Communications, Inc. for a certificate of authority and recommended that it be approved with a waiver of ARSD 20:10:32:03(11), continuous $25,000 surety bond, and subject to rural safeguards.

Commissioner Nelson moved to grant a certificate of authority to Z-Tel Communication, Inc. with a waiver of ARSD 20:10:32:02(11), continuous $25,000 surety bond, and subject to rural safeguards. Chairman Burg seconded. Motion passed 2-0.

6. TC00-197 IN THE MATTER OF THE FILING FOR APPROVAL OF AN OPT-IN INTERCONNECTION AGREEMENT BETWEEN QWEST CORPORATION AND MAXCESS, INC. (Staff Attorney: Kelly Frazier.)

Mr. Frazier recommended that the interconnection agreement be approved.

Chairman Burg moved to approve the interconnection agreement. Commissioner Nelson seconded. Motion passed 2-0.

7. TC00-198 IN THE MATTER OF THE APPLICATION OF ALLTEL COMMUNICATIONS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE INTEREXCHANGE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Heather Forney. Staff Attorney: Kelly Frazier.)

Ms. Forney explained the application of ALLTEL Communications, Inc. for a certificate of authority and recommended that it be approved.

Chairman Burg moved to grant a certificate of authority to ALLTEL Communication, Inc. Commissioner Nelson seconded. Motion passed 2-0.

8. TC01-002 IN THE MATTER OF THE APPLICATION OF TOLEDO AREA TELECOMMUNICATIONS SERVICES, INC. D/B/A BUCKEYE TELESYSTEM FOR A CERTIFICATE OF AUTHORITY TO PROVIDE INTEREXCHANGE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Kelly Frazier.)

Mr. Senger explained the application of Toledo Area Telecommunications Services, Inc. for a certificate of authority and recommended that it be approved with a waiver from ARSD 20:10:24:02(8), and with restrictions from offering prepaid calling cards, accepting customer deposits or advance payments.

Commissioner Nelson moved to grant a certificate of authority to Toledo Area Telecommunications Services, Inc. with the waiver and restrictions as noted above. Chairman Burg seconded. Motion passed 2-0.

9. TC01-009 IN THE MATTER OF THE FILING FOR APPROVAL OF A FIFTH AMENDMENT TO AN INTERCONNECTION AGREEMENT BETWEEN QWEST CORPORATION AND MCLEODUSA TELECOMMUNICATIONS SERVICES, INC. (Staff Attorney: Kelly D. Frazier.)

Mr. Frazier recommended that the amendment to the interconnection agreement be approved.

Chairman Burg moved to approve the amendment to the interconnection agreement. Commissioner Nelson seconded. Motion passed 2-0.

10. TC01-010 IN THE MATTER OF THE APPLICATION OF LONG DISTANCE BILLING SERVICES, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE INTEREXCHANGE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Michele Farris. Staff Attorney: Kelly Frazier.)

Ms. Farris explained the application of Long Distance Billing Services, Inc. for a certificate of authority and recommended that it be approved with a waiver of ARSD 20:10:24:02(8); restrictions from offering prepaid calling cards, accepting customer deposits or advance payments; and with an effective date of April 1, 2001.

Commissioner Nelson moved to approve the certificate of authority application with the waiver and restrictions as noted above and with an effective date of April 1, 2001. Chairman Burg seconded. Motion passed 2-0.

11. TC01-012 IN THE MATTER OF THE FILING FOR APPROVAL OF FOURTH AND FIFTH AMENDMENTS TO AN INTERCONNECTION AGREEMENT BETWEEN QWEST CORPORATION AND DSLNET COMMUNICATIONS, LLC. (Staff Attorney: Kelly D. Frazier.)

Mr. Frazier recommended that the amendments to the interconnection agreement between Qwest Corporation and DSLnet Communications, LLC be approved.

Chairman Burg moved to approve the amendments to the interconnection agreement. Commissioner Nelson seconded. Motion passed 2-0.

12. TC01-014 IN THE MATTER OF THE APPLICATION OF GATES COMMUNICATIONS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE INTEREXCHANGE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Michele Farris. Staff Attorney: Kelly Frazier.)

Ms. Farris recommended that the application of Gates Communication, Inc. for a certificate of authority be approved with a waiver of ARSD 20:10:24:02(8); restrictions from offering prepaid calling cards, accepting customer deposits or advance payments; and with an effective date of April 9, 2001.

Commissioner Nelson moved to grant a certificate of authority to Gates Communications, Inc. with the waiver and restrictions as noted above and with an effective date of April 9, 2001. Motion passed 2-0.

Meeting adjourned.

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Mary R. Giddings, Administrative Secretary