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South Dakota Public Utilities Commission Meeting
Tuesday, October 23, 2001; 1:30 P.M.
South Dakota Capital Complex Visitor Center, Near Capital Lake (500 E Capitol)
Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING

Chairman Jim Burg called the meeting to order. Present were Commissioner Pam Nelson; Executive Director Deb Elofson; Deputy Executive Director Sue Cichos; Commission Advisor Greg Rislov; Commission Counsel Rolayne Ailts Wiest; Staff Attorneys Karen Cremer and Kelly Frazier; Staff Analysts Charlene Lund, Harlan Best, Keith Senger, Leni Healy, Mary Healy, and Michele Farris; and Administrative Secretary Mary Giddings.

Also present were Tim Shattuck, OLS, Inc.; Bob Miller, SD Electric Utilities; and Colleen Sevold, Qwest Corporation.

Joining the meeting by telephone were Brad Schardin, Southeastern Electric Cooperative, Inc., Loubna Haddad, Helein Law Group; Gary Eubanks and Geri Eubanks, OLS, Inc.; and Mary Lohnes, MidContinent Communications.

Administration

1. Approval Of The Minutes Of The Commission Meetings Held On October 10 and 12, 2001. (Staff: Mary Giddings.)

Chairman Burg moved to approve the minutes of the Commission meetings held on October 10 and 12, 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: Mary Healy.)

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

2. IN THE MATTER OF DISMISSING COMPLAINT DOCKETS CT01-039, CT01-040, AND CT01-044.

CT01-039 IN THE MATTER OF THE COMPLAINT FILED BY DENISE HAERTER, SIOUX FALLS, SOUTH DAKOTA, AGAINST MIDCONTINENT COMMUNICATIONS, INC. AND QWEST CORPORATION REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Charlene Lund. Staff Attorney: Karen Cremer.)

CT01-040 IN THE MATTER OF THE COMPLAINT FILED BY BERNIECE PRAVECEK, MITCHELL, SOUTH DAKOTA, AGAINST DIRECT ONE COM.LONG DISTANCE REGARDING UNAUTHORIZED TELECOMMUNICATIONS CHARGES AND SERVICES. (Staff Analyst: Charlene Lund. Staff Attorney: Kelly Frazier.)

CT01-044 IN THE MATTER OF THE COMPLAINT FILED BY SUZANNE DRAKE, SIOUX FALLS, SOUTH DAKOTA, AGAINST MCLEOD USA TELECOMMUNICATIONS SERVICES, INC. REGARDING POOR QUALITY OF CUSTOMER SERVICE. (Staff Analyst: Charlene Lund. Staff Attorney: Kelly Frazier.)

Commissioner Nelson moved to dismiss the complaints and close the dockets in CT01-039, CT01-040, and CT01-044. Chairman Burg seconded. Motion passed 2-0.

Electric

1. EL01-021 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.)

Brad Schardin, representing Southeastern Electric Cooperative, Inc., explained the boundary change.

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

2. EL01-022 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.)

Brad Schardin, representing Southeastern Electric Cooperative, Inc., explained the boundary change. Ms. Farris recommended that it be approved.

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

Telecommunications

1. TC00-089 IN THE MATTER OF OLS, INC. AND CERTAIN JOHN DOES. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

Tim Shattuck, representing OLS, Inc., gave a brief history of the complaints, explained the settlement offer and apologized for the complaints against OLS, Inc. in South Dakota. The proposed settlement is for $20,000 to the State of South Dakota and $6,000 to the SD PUC for expenses. Gary Eubanks, one of the owners of OLS, Inc., also apologized for actions resulting in complaints to the SD PUC. Ms. Cremer explained how the settlement figures were determined and recommended that the settlement offer be accepted. Ms. Leni Healy concurred.

Chairman Burg moved to approve the settlement agreement and to close the docket. Commissioner Nelson seconded. Motion passed 2-0.

2. TC00-004 IN THE MATTER OF THE ORDER FOR A LIST OF OLS, INC. SUBSCRIBERS. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

Ms. Cremer noted that OLS, Inc. had provided the Commission with a list of all its current South Dakota subscribers pursuant to SDCL 49-31-95 and recommended that the docket be closed.

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

3. TC01-153 IN THE MATTER OF THE APPLICATION OF TALKNOW, INC. 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 and recommended that a certificate of authority be granted with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits; with a waiver of ARSD 20:10: 24:02(8); and with an effective date of November 27, 2001.

Commissioner Nelson moved to grant a certificate of authority to TalkNow, Inc. with the restrictions and waiver as noted above and with an effective date of November 27, 2001. Chairman Burg seconded. Motion passed 2-0.

4. IN THE MATTER OF THE FAILURE OF CERTAIN TELECOMMUNICATIONS COMPANIES TO TIMELY FILE THE GROSS RECEIPTS TAX. (Deputy Executive Director: Sue Cichos.)

The following companies have failed to timely file their gross receipts tax as required by SDCL 49-1A:

American Telecommunications Enterprise, Inc
Arrival Communications, Inc.
Cash Back Rebates LD.com f/k/a Common Concerns, Inc
Connect!LD, Inc
CRG International, Inc. d/b/a Network One
Enhanced Communications Network Inc
erbia Netork, Inc
eVulkan Inc
Internet Telephone Company
JATO Operating Two Corp
LDC Telecommunications Inc
NewPath Holdings, Inc
Ozark Telecom, Inc
Pam Oil Company dba PAM Communications
PNV.net fka Park n View Inc
QAI, Inc dba Long Distance Billing
ServiSense.com Inc
SouthNet TeleCom Services Inc
Special Accounts Billing Group Inc
Telera Communications Inc
Telicor Inc
Telscape USA Inc
Teltrust Communications Services Inc
TotalAxcess.com, Inc
Vee Em, Inc fka Speer Virtual Media Ltd
Xtracom Inc

Ms. Cichos explained that the gross receipts tax was money owed from June 2001. She noted that Connect!LD, Inc. had withdrawn its COA and QAI, Inc. dba Long Distance Billing had faxed a copy of their check paying the gross receipts tax. She recommended that the balance of the list receive orders to show cause as to why the Commission should not fine or suspend or revoke their certificate of authority for failure to pay their gross receipts tax.

Chairman Burg moved to issue Orders To Show Cause as to why the Commission should not fine, or suspend or revoke the certificates of authority of each of the above-listed companies, excluding Connect!LD, Inc. and QAI, Inc. d/b/a Long distance Billing, for failure to pay the requisite gross receipts tax. Commissioner Nelson seconded. Motion passed 2-0.

Meeting adjourned.

_______________________________________
Mary R. Giddings
Administrative Secretary