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South Dakota Public Utilities Commission Meeting
Tuesday, June 19, 2001; 1:30 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; Executive Director Debra Elofson; 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; Summer Legal Intern Sarah Sharp; and Administrative Secretary Mary Giddings.

Also present were Michael Chase, Black Hills Electric Cooperative; Linden Evans, Black Hills Corporation; Stuart Wevik, Black Hills Power & Light; Jim Wilcox, Xcel Energy; Dave Gerdes, PowerNet Global Communications; Jim Robbennolt, Broadwing Telecommunications, Inc.; and Tom Harmon, Sprint.

Joining the meeting by telephone were Becky Gibson, US Republic Communications; Jane Wagner, WebNet; Debra Sittig, Woods, Fuller, Schultz & Smith; Brad Schardin, Southeastern Electric Coop; Dave Prazak, Otter Tail Power Company; Colleen Sevold, Qwest Corporation; David Schwietert and Roxy Rasmussen, complainants; and Tim Jensen, Alvin Scott and Tom Jass, McCook Feed and Fertilizer customers.

Administration

1. Approval Of The Minutes Of The Commission Meetings Held On May 22 am and pm and June 4, 2001. (Staff: Mary Giddings.)

Commissioner Nelson moved to approve the minutes of the Commission meetings held on May 22 and June 4, 2001. 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: Mary Healy.)

Ms. Mary Healy presented an update on inquiries and complaints received since the May 8, 2001, Commission meeting. Chairman Burg inquired if there were many disconnection notices recently. Ms. Mary Healy stated that a number of calls had come in from consumers who were being disconnected because they couldn't pay the high energy bills. No figures were available on the number of these disconnections.

2. IN THE MATTER OF DISMISSING CT00-109, CT00-111, CT00-114, CT01-010, CT01- 015, CT01-018, CT01-020, CT01-023, and CT01-025.

CT00-109 IN THE MATTER OF THE COMPLAINT FILED BY DAVID HERSRUD ON BEHALF OF THE HERSRUD COMPANY, STURGIS, SOUTH DAKOTA, AGAINST AT&T COMMUNICATIONS OF THE MIDWEST, INC. REGARDING BILLING ISSUES. (Staff Analyst: Leni Healy. Staff Attorney: Kelly Frazier.)

CT00-111 IN THE MATTER OF THE COMPLAINT FILED BY FLANDREAU SANTEE SIOUX TRIBE PROBATION OFFICE, FLANDREAU, SOUTH DAKOTA, AGAINST MCI WORLDCOM AND IONEX COMMUNICATIONS NORTH, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Kelly Frazier.)

CT00-114 IN THE MATTER OF THE COMPLAINT FILED BY FSST SOCIAL SERVICES, FLANDREAU, SOUTH DAKOTA, AGAINST MCI WORLDCOM, IONEX COMMUNICATIONS NORTH, INC. AND TELECOM*USA REGARDING UNAUTHORIZED SWITCHING OR BILLING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Kelly Frazier.)

CT01-010 IN THE MATTER OF THE COMPLAINT FILED BY ROBERT E. ANDERSON, HUDSON, SOUTH DAKOTA, AGAINST AT&T COMMUNICATIONS OF THE MIDWEST, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Kelly Frazier.)

CT01-015 IN THE MATTER OF THE COMPLAINT FILED BY DELORES DENKE, RAPID CITY, SOUTH DAKOTA, AGAINST QWEST CORPORATION REGARDING DECEPTIVE PRACTICE. (Staff Analyst: Mary Healy. Staff Attorney: Kelly Frazier.)

CT01-018 IN THE MATTER OF THE COMPLAINT FILED BY DANIEL R. WONNENBERG, BROOKINGS, SOUTH DAKOTA, AGAINST SPRINT COMMUNICATIONS COMPANY L.P. REGARDING UNAUTHORIZED BILLING FOR SERVICES. (Staff Analyst: Mary Healy. Staff Attorney: Karen Cremer.)

CT01-020 IN THE MATTER OF THE COMPLAINT FILED BY ELAINE KOHLER, SIOUX FALLS, SOUTH DAKOTA, AGAINST AT&T COMMUNICATIONS OF THE MIDWEST, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Mary Healy. Staff Attorney: Karen Cremer.)

CT01-023 IN THE MATTER OF THE COMPLAINT FILED BY TEN THOUSAND VILLAGES, SIOUX FALLS, SOUTH DAKOTA, AGAINST NCP, INC. AND ILD TELESERVICES, INC. REGARDING UNAUTHORIZED BILLING FOR SERVICES. (Staff Analyst: Mary Healy. Staff Attorney: Kelly Frazier.)

CT01-025 IN THE MATTER OF THE COMPLAINT FILED BY DAVID ARTZ, PLANKINTON, SOUTH DAKOTA, AGAINST SPRINT COMMUNICATIONS COMPANY L.P. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Mary Healy. Staff Attorney: Karen Cremer.)

Chairman Burg moved to dismiss the complaints and close the dockets in CT00-109, CT00-111, CT00-114, CT01-010, CT01-015, CT01-018, CT01-020, CT01-023, and CT01-025. Commissioner Nelson seconded. Motion passed 2-0.

3. CT01-008 IN THE MATTER OF THE COMPLAINT FILED BY DAVID AND RHONDA SCHWIETERT, RAPID CITY, SOUTH DAKOTA, AGAINST BROADWING TELECOMMUNICATIONS, INC. AND POWERNET GLOBAL COMMUNICATIONS REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Kelly Frazier.)

Dave Gerdes, representing PowerNet Global Communications, explained that more time was needed to prepare for the hearing because some documents had not been fully examined. Jim Robbennolt, representing Broadwing Telecommunications, agreed that more time was necessary to complete the complicated investigation. David Schwietert, Complainant, stated that he had received and read the documents and felt that the attorneys should do the same so that the hearing could be held on June 26, 2001, as scheduled. Commissioner Nelson expressed concern that the Schwietert's complaint had been filed months ago he providers seem to wait until a hearing date is set before starting the investigations. Ms. Wiest said a 60-day extension had been requested. Mr. Frazier recommended that the Commission go forward with the June 26, 1001, hearing.

Commissioner Nelson moved to grant a 14-day extension. Chairman Burg seconded. Motion passed 2-0.

4. CT01-019 IN THE MATTER OF THE COMPLAINT FILED BY LARRY AND JUDY COYLE, PIERRE, SOUTH DAKOTA, AGAINST QWEST CORPORATION, TOUCH AMERICA SERVICES, INC. AND WEBNET COMMUNICATIONS, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Mary Healy. Staff Attorney: Karen Cremer.)

Ms. Cremer stated that Mrs. Coyle requested that America's Telenetwork (ATN) be added as a party.

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

5. CT01-021 IN THE MATTER OF THE COMPLAINT FILED BY ROXY RASMUSSEN AND MICK BETTMENG, BLACK HAWK, SOUTH DAKOTA, AGAINST U.S. REPUBLIC COMMUNICATIONS, INC. REGARDING UNAUTHORIZED LONG DISTANCE SERVICES, FAILURE TO CANCEL AND CONTINUED BILLING. (Staff Analyst: Charlene Lund. Staff Attorney: Kelly Frazier.)

Becky Gibson, representing U.S. Republic Communications, Inc., explained the motion to dismiss. Ms. Lund recommended that the motion for dismissal be denied.

Commissioner Nelson moved to deny U.S. Republic's motion for dismissal. Chairman Burg seconded. Motion passed 2-0.

6. CT01-022 IN THE MATTER OF THE COMPLAINT FILED BY JUDY C. FOSTER, SIOUX FALLS, SOUTH DAKOTA, AGAINST WEBNET COMMUNICATIONS, INC. AND ILD TELESERVICES, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Charlene Lund. Staff Attorney: Kelly Frazier.)

Mr. Frazier stated that the complainant wished to withdraw her complaint. No action required.

Electric

1. EL00-029 IN THE MATTER OF THE APPLICATION OF XCEL ENERGY, INC. FOR APPROVAL TO EXTEND EXPECTED MERGER BENEFITS TO ITS SOUTH DAKOTA SERVICE TERRITORY AND CUSTOMERS. (Staff Analyst: Dave Jacobson. Staff Attorney: Karen Cremer.)

Mr. Jacobson explained the application of Xcel Energy, Inc. which would provide benefits to its customers in its service territory. Jim Wilcox, representing Excel Energy, Inc., further explained the proposal which would provide an additional contribution to its annual economic development investment within its service territory for a limited time and to agree to a conditional rate moratorium until May 1, 2004.

Commissioner Nelson moved to approve the petition to provide merger benefits in the state of South Dakota and to close the docket. Commissioner Burg seconded. Motion passed 2-0.

1. GD01-001 IN THE MATTER OF THE GRAIN DEALER'S AND PUBLIC WAREHOUSE LICENSES OF FREEMAN FERTILIZER CO., INC. DBA MCCOOK FEED AND FERTILIZER. (Transportation/Warehouse Director: Bob Knadle. Staff Attorney: Kelly Frazier.)

Mr. Frazier explained the motion to reopen for further evidence for the purpose of receiving into evidence affidavits from claimants regarding their contracts with McCook Feed and Fertilizer. Tim Jensen, Tom Jass and Alvin Scott, McCook Feed and Fertilizer customers, supported the reopening. Debra Sittig, representing Home Federal, stated that it did not oppose the reopening if Home Federal could also submit an affidavit. Ms. Wiest recommended that action be deferred. Action was deferred.

2. EL01-007 IN THE MATTER OF THE PETITION OF OTTER TAIL POWER COMPANY FOR APPROVAL OF RENEWAL OF A RELEASED ENERGY TARIFF. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

Dave Prazak, representing Otter Tail Power Company, explained the tariff revision. Mr. Senger recommended that the tariff revision be approved with a June 19, 2001, effective date.

Chairman Burg moved to approve the tariff revision with an effective date of June 19, 2001. Commissioner Nelson seconded. Motion passed 2-0.

3. EL01-008 IN THE MATTER OF THE PETITION OF OTTER TAIL POWER COMPANY FOR APPROVAL OF REVISIONS TO ITS OUTDOOR LIGHTING TARIFF. (Staff Analyst: Dave Jacobson. Staff Attorney: Karen Cremer.)

Mr. Jacobson recommended that action be deferred. Action was deferred.

4. EL01-009 IN THE MATTER OF THE JOINT REQUEST FOR AN ELECTRIC SERVICE TERRITORY BOUNDARY CHANGE BETWEEN XCEL ENERGY AND SOUTHEASTERN ELECTRIC COOPERATIVE, INC. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

Jim Wilcox, representing Xcel Energy, explained the joint territory boundary change. Brad Schardin, representing Southeastern Electric Cooperative, Inc., stated that the boundary change would allow the service territory to follow the proposed lot lines. Ms. Farris recommended that the boundary change be approved.

Chairman Burg moved to grant the joint territory boundary change. Commissioner Nelson seconded. Motion passed 2-0.

5. EL01-010 IN THE MATTER OF THE JOINT REQUEST FOR ELECTRIC SERVICE TERRITORY EXCEPTION BETWEEN BLACK HILLS POWER AND BLACK HILLS ELECTRIC COOPERATIVE. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

Stuart Wevik, representing Black Hills Power, explained the change to the territory boundary. Michael Chase, representing Black Hills Electric Cooperative, stated that changing the territory boundary would avoid duplication of facilities. Ms. Farris recommended that the service territory boundary change be approved.

Commissioner Nelson moved to approve the service territory boundary change. Chairman Burg seconded. Motion passed 2-0.

Telecommunications

1. TC01-027 IN THE MATTER OF THE APPLICATION OF WEST END COMMUNICATIONS INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE INTEREXCHANGE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

Mr. Senger recommended that the application of West End Communications Inc. for a certificate of authority be approved with a waiver of ARSD 20:10:24:02(8) and restrictions from offering prepaid calling cards, accepting advance payments and customer deposits.

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

2. TC01-033 IN THE MATTER OF THE APPLICATION OF QUICK TEL, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE INTEREXCHANGE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

Ms. Farris recommended that the Quick Tel, Inc. application for a certificate of authority be approved with a waiver of ARSD 20:10:24:02(8) and with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits.

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

3. TC01-036 IN THE MATTER OF THE APPLICATION OF CIERA NETWORK SYSTEMS, 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 Ciera Network Systems, Inc. application for a certificate of authority be approved with a waiver of ARSD 20:10:24:02(8) and with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits.

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

4. TC01-041 IN THE MATTER OF THE APPLICATION OF CUSTOM TELECONNECT, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE INTEREXCHANGE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

Ms. Forney recommended that the Custom Teleconnect, Inc. (Teleconnect) application for a certificate of authority be approved.

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

5. TC01-052 In the Matter of the Filing by Qwest Corporation for Approval of Revisions to its Access Service Tariff. (Staff Analyst: Heather Forney. Staff Attorney: Kelly Frazier.)

Colleen Sevold, representing Qwest Corporation, explained the tariff revisions. Ms. Forney recommended that the tariff revisions be approved effective the date of FCC approval.

Chairman Burg moved to approve the proposed tariff revisions effective the date of FCC approval. Commissioner Nelson seconded. Motion passed 2-0.

Meeting adjourned.

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Mary R. Giddings
Administrative Secretary