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South Dakota Public Utilities Commission Meeting
Tuesday, February 26, 2002; 1:30 P.M.
State Capitol Building, Room 412
Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING

Chairman Burg called the meeting to order. Present were Commissioner Pam Nelson; Commissioner Bob Sahr; Executive Director Deb Elofson; Deputy Executive Director Sue Cichos; Commission Advisor Greg Rislov; Commission Counsels Rolayne Ailts Wiest and John J. Smith; Staff Attorneys Karen Cremer and Kelly Frazier; Staff Analysts Dave Jacobson, Harlan Best, Keith Senger and Mary Healy; and Administrative Secretary Mary Giddings.

Joining the meeting by telephone were Jeff Davis, MidAmerican Energy Company; Colleen Sevold, Qwest; and David Kline, TC & F representing QX Telecom LLC.

Administration

1. Approval Of The Minutes Of The Commission Meeting Held On February 5, 2002. (Staff: Mary Giddings.)

Chairman Burg moved to approve the minutes of the February 5, 2002, Commission meeting. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.

Consumer Issues

1. Status Report On Consumer Utility Inquiries And Complaints Recently Received By The Commission. (Consumer Affairs: Mary Healy.)

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

2. IN THE MATTER OF DISMISSING DOCKETS CT01-057, CT01-060, CT02-002, CT02- 004, and CT02-005.

CT01-057 IN THE MATTER OF THE COMPLAINT FILED BY DOUGLAS E. CHRISTENSEN, ASHTON, SOUTH DAKOTA, AGAINST QWEST CORPORATION REGARDING UNAUTHORIZED SWITCHING OF INSTATE LONG DISTANCE SERVICES. (Staff Analyst: Mary Healy. Staff Attorney: Karen E. Cremer.)

CT01-060 IN THE MATTER OF THE COMPLAINT FILED BY DON R. LARSEN, SISSETON, SOUTH DAKOTA, AGAINST AT&T COMMUNICATIONS OF THE MIDWEST, INC. REGARDING DELAYED SERVICES. (Staff Analyst: Mary Healy. Staff Attorney: Karen Creamer.)

CT02-002 IN THE MATTER OF THE COMPLAINT FILED BY MARK AND JOI HASZ, MENNO, SOUTH DAKOTA, AGAINST MCI WORLDCOM REGARDING FALSE AND MISLEADING RATE INFORMATION. (Staff Analyst: Mary Healy. Staff Attorney: Kelly Frazier.)

CT02-004 IN THE MATTER OF THE COMPLAINT FILED BY ST. MARY'S HEALTHCARE CENTER, PIERRE, SOUTH DAKOTA, AGAINST MCLEODUSA TELECOMMUNICATIONS SERVICES, INC. AND QWEST CORPORATION REGARDING NO SERVICE AND DELAYED REPAIR. (Staff Analyst: Mary Healy. Staff Attorney: Karen E. Cremer.)

CT02-005 IN THE MATTER OF THE COMPLAINT FILED BY JACKIE DANIELS, SIOUX FALLS, SOUTH DAKOTA, AGAINST AT&T COMMUNICATIONS OF THE MIDWEST, INC. AND QWEST CORPORATION REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Mary Healy. Staff Attorney: Karen E. Cremer.)

Chairman Burg moved to dismiss the complaints and close the dockets on Dockets CT01- 057, CT01-060, CT02-002, CT02-004, and CT02-005. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

Electric

1. EL02-001 IN THE MATTER OF THE FILING FOR APPROVAL OF A LIMITED WAIVER OF SERVICE TERRITORY AGREEMENT BETWEEN CHARLES MIX ELECTRIC ASSOCIATION, INC. AND THE TOWN OF PICKSTOWN. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

Ms. Cremer, for Ms. Farris, explained the service territory agreement and recommended that the request for approval of the service territory agreement be approved.

Commissioner Nelson moved to approve the service territory agreement. Commissioner Sahr seconded and Chairman Burg concurred. Motion passed 3-0.

2. EL02-002 IN THE MATTER OF THE FILING BY MIDAMERICAN ENERGY COMPANY FOR APPROVAL OF TARIFF REVISIONS. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

Jeff Davis, representing MidAmerican Energy Company, explained the tariff revision. He requested that the pilot program, Short Term Interruptible Energy Service, be approved as permanent with the filing requirement changed from semiannual to annual. Mr. Senger noted that MidAmerican had complied with all prior reporting requirements and recommended approval.

Commissioner Sahr moved to approve the tariff revisions with annual filings. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

Telecommunication

3. TC01-164 IN THE MATTER OF THE APPLICATION OF CONTACT COMMUNICATIONS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE LOCAL EXCHANGE SERVICES IN SOUTH DAKOTA. (Staff Analyst: Heather Forney. Staff Attorney: Kelly Frazier.)

Mr. Frazier, for Ms. Forney, explained the application and recommended that it be approved with waivers of ARSD 20:10:32:03(10) and (11a); with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits; subject to rural safeguards; and limited to providing nonvoice switched local service.

Commissioner Nelson moved to grant a Certificate of Authority to Contact Communications, Inc. with waivers of ARSD 20:10:32:03(10) and (11a); with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits; subject to rural safeguards; and limited to providing nonvoice switched local service. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.

4. TC02-007 IN THE MATTER OF THE APPLICATION OF NORCOM, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE INTEREXCHANGE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Heather Forney. Staff Attorney: Kelly Frazier.)

Mr. Frazier, for Ms. Forney, recommended that Norcom, Inc. be granted a Certificate of Authority with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits; and with an effective date of March 12, 2002.

Commissioner Nelson moved to grant a Certificate of Authority to Norcom, Inc. with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits; and with an effective date of March 12, 2002. Commissioner Sahr seconded and Chairman Burg concurred. Motion passed 3-0.

5. TC02-008 IN THE MATTER OF THE APPLICATION OF ECI COMMUNICATIONS, INC. 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 ECI Communications, Inc. be granted a Certificate of Authority with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits; and with an effective date of March 25, 2002.

Chairman Burg moved to grant a Certificate of Authority to ECI Communications, Inc. with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits; and with an effective date of March 25, 2002. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

6. TC02-009 IN THE MATTER OF THE FILING FOR APPROVAL OF AN AMENDMENT TO AN INTERCONNECTION AGREEMENT BETWEEN QWEST CORPORATION AND MCLEODUSA TELECOMMUNICATIONS SERVICES, INC. (Staff Attorney: Kelly Frazier.)

Mr. Frazier recommended that the amendment be approved.

Commissioner Nelson moved to approve the amendment. Commissioner Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.

7. TC02-010 IN THE MATTER OF THE FILING FOR APPROVAL OF AN AMENDMENT TO AN INTERCONNECTION AGREEMENT BETWEEN QWEST CORPORATION AND RURAL CELLULAR CORPORATION. (Staff Attorney: Kelly Frazier.)

Mr. Frazier recommended that the amendment be approved.

Chairman Burg moved to approve the amendment. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.

8. TC02-011 IN THE MATTER OF THE FILING FOR APPROVAL OF AN AMENDMENT TO AN INTERCONNECTION AGREEMENT BETWEEN QWEST CORPORATION AND MCLEODUSA TELECOMMUNICATIONS SERVICES, INC. (Staff Attorney: Kelly Frazier.)

Mr. Frazier recommended that the amendment be approved.

Commissioner Sahr moved to approve the amendment. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

1. 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.)

Mr. Frazier, for Ms. Farris, noted that Z-tel was in danger of losing its $25,000 bond as of March 1, 2002. At this time Z-tel does not have any South Dakota customers. Mr. Frazier recommended that the bond requirement be eliminated and that Z-tel be restricted from offering prepaid calling cards, accepting advance payments or customer deposits without prior approval of the Commission.

Commissioner Sahr moved to eliminate the $25,000 bond requirement and he further moved to restrict Z-tel from offering prepaid calling cards, accepting advance payments or customer deposits without prior approval of the Commission. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

2. TC01-162 IN THE MATTER OF THE APPLICATION OF QX TELECOM LLC FOR A CERTIFICATE OF AUTHORITY TO PROVIDE INTEREXCHANGE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Kelly Frazier.)

David Klein, representing QX Telecom LLC, explained that it was difficult to obtain a bond since September 11 hat the bond was in the mail. Mr. Senger stated that Staff had been waiting several months for the bond and recommended that the Certificate of Authority be denied. David Klein requested that action be deferred until the next Commission meeting. Action was deferred.

Meeting adjourned.

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Mary R. Giddings
Administrative Secretary