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South Dakota Public Utilities Commission Meeting
Tuesday, May 8, 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; Assistant Executive Director Sue Cichos; Commission Advisor Greg Rislov; Commission Counsel Rolayne Wiest; Staff Attorneys Karen Cremer and Kelly Frazier; Utility Analysts Charlene Lund, Dave Jacobson, Harlan Best, Heather Forney, Keith Senger, Leni Healy, Mary Healy, and Michele Farris; Transportation/Warehouse Director Bob Knadle; Administrative Assistant Marlette Fischbach; Inspector Lisa Hull; and Administrative Secretary Mary Giddings.

Also present were Jeff Decker, Susan Anderson Bachman and Warren Lotsberg, Northwestern Public Service; Richard D. Coit, SDITC; Dave Gerdes, Working Assets Funding Service, Inc.; and Darla Pollman Rogers and Bryan Roth, McCook Cooperative Telephone Company.

Joining the meeting by telephone were Colleen Sevold and Tom Welk, Qwest Corporation; Mary Lohnes and Tom Simmons, Midcontinent Communications; Deb Martin and Suzan Stewart, MidAmerican Energy Company; Darlene Mandelke, Otter Tail Corporation; Barbara Berkenpas, McLeodUSA; Steve Weigler, AT&T; and Walter McGee, Working Assets Funding Service, Inc.

Administration

1. Approval Of The Minutes Of The Commission Meeting Held On April 17, 2001. (Staff: Mary Giddings.)

Chairman Burg moved to approve the minutes of the Commission meeting held on April 17, 2001. Commissioner Nelson 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. Leni Healy presented an update on inquiries and complaints received since the April 17, 2001, Commission meeting. Chairman Burg inquired about the number of disconnections compared to other years. Data from some of the providers has been received but a comparison has not yet been done.

2. CT00-112 IN THE MATTER OF THE COMPLAINT FILED BY MIKE MATTERN, ABERDEEN, SOUTH DAKOTA, AGAINST MCLEODUSA TELECOMMUNICATIONS SERVICES, INC. REGARDING POOR SERVICE. (Staff Analyst: Charlene Lund. Staff Attorney: Kelly Frazier.)

Barbara Berkenpas, McLeodUSA, explained why Qwest Corporation should be added as a party. Tom Welk, Qwest Corporation, had no objections.

Chairman Burg moved to add Qwest Corporation as a party. Commissioner Nelson seconded. Motion passed 2-0.

3. CT01-012 IN THE MATTER OF THE COMPLAINT FILED BY RICHARD AND NANCIE HAGGAR, SIOUX FALLS, SOUTH DAKOTA, AGAINST WEBNET COMMUNICATIONS, INC. REGARDING MISREPRESENTING RATES. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

Ms. Cremer 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 passed 2-0.

Electric

1. EL01-006 IN THE MATTER OF THE FILING BY OTTER TAIL POWER COMPANY FOR APPROVAL OF A CONTRACT WITH DEVIATIONS WITH THE CITY OF WARD. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

Darlene Mandelke, Otter Tail Power Company, explained the contract and answered Commission questions. Mr. Senger recommended that the contract be approved. Commissioner Nelson expressed concern that the contract had not been filed in a timely manner.

Commissioner Nelson moved to approve the contract with deviations. Chairman Burg seconded. Motion passed 2-0.

Natural Gas

1. NG99-002 IN THE MATTER OF THE APPLICATION OF NORTHWESTERN PUBLIC SERVICE FOR AUTHORITY TO INCREASE RATES FOR NATURAL GAS SERVICE. (Staff Analyst: Dave Jacobson. Staff Attorney: Karen Cremer.)

Chairman Burg moved that the Commission find that the Nekota Resources, Inc. pipeline is not an intrastate natural gas pipeline as defined in SDCL 49-34A-1 (9A) because it has only one customer and that customer is an affiliated company. He further moved that Nekota Resources, Inc. shall be required to inform the Commission if the way it currently operates its pipeline changes. Commissioner Nelson seconded. Motion passed 2-0.
Gas/Electric

1. GE01-001 IN THE MATTER OF THE FILING BY MIDAMERICAN ENERGY COMPANY FOR APPROVAL OF REVISED RESIDENTIAL AND COMMERCIAL INFORMATIONAL BOOKLET. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

Suzan Stewart, MidAmerican Energy Company, explained the informational booklet. Ms. Forney recommended that the informational booklet be approved.

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

Telecommunications

1. TC00-191 IN THE MATTER OF THE FILING BY QWEST CORPORATION FOR APPROVAL OF ITS STATEMENT OF GENERALLY AVAILABLE TERMS. (Commission Contact: Deb Elofson.)

Tom Welk, representing Qwest Corporation, explained the filing and suggested a two- week hearing period in October or November. Steve Weigler, AT&T, stated that a procedural schedule should not be set and Tom Simmons, Midcontinent Communications, agreed. Ms. Wiest recommended that the matter be taken under advisement. No action taken.

2. TC01-021 IN THE MATTER OF THE FILING FOR APPROVAL OF AN AGREEMENT FOR TERMS AND CONDITIONS FOR INTERCONNECTION, UNBUNDLED NETWORK ELEMENTS, ANCILLARY SERVICES AND RESALE OF TELECOMMUNICATIONS SERVICES BETWEEN QWEST CORPORATION AND ESSEX COMMUNICATIONS, INC. D/B/A ELEC COMMUNICATIONS. (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.

3. TC01-022 IN THE MATTER OF THE FILING BY MCLEODUSA TELECOMMUNICA- TIONS SERVICES, INC. FOR APPROVAL OF ITS INTRASTATE SWITCHED ACCESS TARIFF AND FOR AN EXEMPTION FROM DEVELOPING COMPANY SPECIFIC COST-BASED SWITCHED ACCESS RATES. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Barbara Berkenpas, McLeodUSA Telecommunications Services, Inc., explained the tariff. Mr. Best recommended that the tariff be approved effective as of the date of the Commission order and with a waiver from developing company specific cost-based switched access rates for a period of three years.

Chairman Burg moved to approve the intrastate switched access tariff effective as of the date of the Commission order with an exemption from developing company specific cost-based switched access rates for a period of three years. Commissioner Nelson seconded. Motion passed 2-0.

4. TC01-023 IN THE MATTER OF THE APPLICATION OF WORKING ASSETS FUNDING SERVICE, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE INTEREXCHANGE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Kelly Frazier.)

Dave Gerdes, representing Working Assets Funding Service, Inc., explained the certificate of authority application. Mr. Senger noted that payment of the gross receipts tax has been brought up to date and recommended that the certificate of authority be granted.

Chairman Burg moved to grant a certificate of authority to Working Assets Funding Services, Inc. Commissioner Nelson seconded. Motion passed 2-0.

5. TC01-024 IN THE MATTER OF THE FILING FOR APPROVAL OF AN ADOPTION WIRELINE INTERCONNECTION AGREEMENT BETWEEN QWEST CORPORATION AND AVERA COMMUNICATION, L.L.C. (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.

6. TC01-032 IN THE MATTER OF THE FILING FOR APPROVAL OF A FIRST AMENDMENT TO AN INTERCONNECTION AGREEMENT BETWEEN QWEST CORPORATION AND TW WIRELESS, L.L.C. (Staff Attorney: Kelly D. Frazier.)

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

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

7. TC01-034 IN THE MATTER OF THE FILING FOR APPROVAL OF A SECOND AMENDMENT TO AN INTERCONNECTION AGREEMENT BETWEEN QWEST CORPORATION AND NEWPATH HOLDINGS, INC. (Staff Attorney: Kelly D. Frazier.)

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

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

8. TC01-037 IN THE MATTER OF THE APPLICATION OF LOCAL TELCOM HOLDINGS, LLC D/B/A TRANSPOINT COMMUNICATIONS FOR A CERTIFICATE OF AUTHORITY TO PROVIDE INTEREXCHANGE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Kelly Frazier.)

Mr. Senger recommended that the Local Telcom Holdings, LLC d/b/a Transpoint Communications application for a certificate of authority be approved with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits; with a waiver of ARSD 20:10:24:02; and with an effective date of May 23, 2001.

Commissioner Nelson moved to grant a certificate of authority to Local Telcom Holdings, LLC with the restrictions and waiver as noted above and with an effective date of May 23, 2001. Chairman Burg seconded. Motion passed 2-0.

9. TC01-038 IN THE MATTER OF THE REQUEST BY MCCOOK COOPERATIVE TELEPHONE COMPANY FOR A WAIVER OF A REQUIREMENT TO FILE A SWITCHED ACCESS COST STUDY. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

Darla Pollman Rogers, representing McCook Cooperative Telephone Company (McCook), and Brian Roth, general manager of McCook, explained the request for a waiver of ARSD 20:10:27:07. Mr. Best supported the one-year waiver and recommended that it be approved.

Chairman Burg moved to grant a one-year waiver of the requirement to file a switched access cost study. Commissioner Nelson seconded. Motion passed 2-0.

10. TC01-039 IN THE MATTER OF THE FILING BY QWEST CORPORATION FOR APPROVAL OF REVISIONS TO ITS EXCHANGE AND NETWORK SERVICES TARIFF. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

Colleen Sevold, representing Qwest Corporation, explained the filing. Ms. Forney recommended that the tariff revisions be approved with the date the order is signed as the effective date.

Chairman Burg moved to approve the tariff revisions effective the date the order is signed. Commissioner Nelson seconded. Motion passed 2-0.

Addendum

Consumer Issues

1. CT01-013 IN THE MATTER OF THE COMPLAINT FILED BY OLDHAM SERVICES, OLDHAM, SOUTH DAKOTA, AGAINST AT&T COMMUNICATIONS OF THE MIDWEST, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Charlene Lund. Staff Attorney: Kelly Frazier.)

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

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

Telecommunications

1. TC01-044 IN THE MATTER OF THE APPLICATION OF T-NETIX TELECOMMUNICATIONS SERVICES, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE INTEREXCHANGE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

Ms. Forney explained the application and recommended that it be approved with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits; with waivers from ARSD 20:10:24:02 (8) and ARSD 20:10:24:05 (4), (6), and (7); and with an effective date of June 22, 2001.

Commissioner Nelson moved to grant a certificate of authority to T-NETIX Telecommunications Services, Inc. with restrictions and waivers as noted above and with an effective date of June 22, 2001. Chairman Burg seconded. Motion passed 2-0.

Warehouse

1. GD00-001 IN THE MATTER OF THE APPLICATION OF WHEETCO, INC. FOR A GRAIN DEALER LICENSE AND SETTING THE AMOUNT OF APPLICANT'S BOND. (Transportation/Warehouse Director: Bob Knadle. Staff Attorney: Karen Cremer.)

Mr. Knadle explained the stipulation and recommended that it be approved.

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

Meeting adjourned.

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Mary R. Giddings, Administrative Secretary