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South Dakota Public Utilities Commission Meeting
Thursday, October 17, 2002; 9:00 - 11:30 A.M.
State Capitol Building, Room 412
Pierre, South Dakota
MINUTES OF THE MORNING COMMISSION MEETING
Chairman Jim Burg called the meeting to order. Also present were Commissioner Pam Nelson; Commissioner Bob Sahr; Executive Director Debra Elofson; Deputy Executive Director Terri Iverson; Commission Advisor Greg Rislov; Commission Counsel John J. Smith; Staff Attorney Kelly Frazier; Staff Analysts Dave Jacobson, Heather Forney, Keith Senger, and Michele Farris; Transportation/Warehouse Director Bob Knadle; and Administrative Secretary Mary Giddings.
Also present were Rob Lasich, David Badura, and Todd Kremer, MidAmerican Energy Company.
Joining the meeting by telephone was Marv Sorenson, MidAmerican Energy Company.
Natural Gas
Todd Kremer, representing MidAmerican Energy, explained its Incentive Gas Supply Procurement Program (IGSPP) which expires October 31, 2002. This program was initially approved by the Commission for a three-year period in 1995, and was approved with modifications for a second three-year period in 1999. This filing proposes to further extend application of the plan, with modifications, to be effective through October 31, 2005. Todd Kremer and Rob Lasich responded to questions from the Commissioners and Staff. Mr. Jacobson recommended that the IGSPP be approved with an effective date of November 1, 2002.
Chairman Burg moved to approve MidAmerican's request for Continuation of its Incentive Gas Supply Procurement Program with an effective date of November 1, 2002. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Meeting adjourned until 1:30 p.m.
South Dakota Public Utilities Commission Meeting
Thursday, October 17, 2002; 1:30 P.M.
State Capitol Building, Room 412
Pierre, South Dakota
MINUTES OF THE AFTERNOON COMMISSION MEETING
Chairman Jim Burg called the meeting to order. Also present were Commissioner Pam Nelson; Commissioner Bob Sahr; Executive Director Debra Elofson; Deputy Executive Director Terri Iverson; Commission Advisor Greg Rislov; Commission Attorney Rolayne Ailts Wiest; Commission Counsel John J. Smith; Staff Attorneys Karen Cremer and Kelly Frazier; Staff Analysts Dave Jacobson, Harlan Best, Heather Forney, Keith Senger, Martin Bettmann and Michele Farris; Transportation/Warehouse Director Bob Knadle; and Administrative Secretary Mary Giddings.
Also present were Tom Welk, Larry Toll and Mary Hobson, Qwest Corporation; Rich Coit, SD Telecommunications Association; Talbot Wieczorek, Western Wireless Corporation; Bob Miller, SD Electric Utility Companies; Tom Harmon, Sprint Communications Company L.P.; Dave Gerdes, MidContinent Communications; Brian Meyer, LECA et al; John Burke, S&S Communications; and Cheri McComsey Wittler, Court Reporter.
Joining the meeting by telephone were Jeff Carmon, John Munn and Lynn Stang, Qwest Corporation; Susan Rao, Western Wireless Corporation; Janet Browne, Richard Wolters and Steven Weigler, AT&T; Kyle White, Black Hills Corporation; and Robert Herrick, complainant.
Administration
1. APPROVAL OF THE MINUTES OF THE COMMISSION MEETING HELD ON SEPTEMBER 24, 2002. (Staff: Mary Giddings.)
Commissioner Burg moved to approve the minutes of the Commission meeting held on September 24, 2002. 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.)
Mr. Frazier presented an update on inquiries and complaints received since the last Commission meeting.
Tom Harmon, representing Sprint, explained the motion to dismiss arguing that the Complainant, Robert Herrick, admitted that his son initiated the switch via the internet. Mr. Herrick stated that they did not switch service over the internet and that the social security number and date of birth for Robert are incorrect. Mr. Frazier recommended that the motion to dismiss be denied because the evidence is conflicting and raises a genuine issue of material fact.
Commissioner Nelson moved to deny Sprint's Motion to Dismiss. Commissioner Sahr seconded and Chairman Burg concurred. Motion passed 3-0.
Electric
Ron Spangler, representing Otter Tail Power Company, explained the Municipal Contract with the City of Eden and a Summary List of Contracts with Deviations. Ms. Farris recommended that the contract be approved.
Chairman Burg moved to approve the contract with deviations. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Telecommunications
Action was deferred
Action was deferred on AT&T's Motion to Reopen and Supplement the Record.
Action was deferred on Qwest's Request for Acceptance of PO-20 for Inclusion in the QPAP.
Chairman Burg moved that the Commission make the following decision regarding Checklist Items 2, 4, 5, and 6: Subject to its findings regarding the applicable OSS test results, the Commission finds that Qwest is in substantial compliance with checklist items 2, 5, and 6. In order for the Commission to find that Qwest is in substantial compliance with Checklist Item 4, the Commission requires Qwest to make the following changes: 1) Qwest shall change its SGAT language to provide that a CLEC is not responsible for trouble isolation testing charges if the trouble is determined to be on Qwest's network; 2) with respect to the issue regarding access to loop qualification data, Qwest shall include the language developed in Arizona regarding Qwest's obligation to conduct a manual search and Qwest shall add language regarding the ability of a CLEC to request an audit of Qwest's records and databases pertaining to loop information; and 3) with respect to standard intervals for DS-1 loops, Qwest shall make the following changes: for 1-8 lines, the interval shall be five business days; for 9-16 lines, seven business days; for 17-24 lines, nine business days; and for 25 or more lines the interval shall be determined on an individual basis. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Chairman Burg moved that the Commission make the following decision regarding general terms and conditions and Tract A compliance: In order for the Commission to find Qwest is in substantial compliance regarding its general terms and conditions provisions, the Commission requires Qwest to make the following changes: 1) Qwest shall put language in section 5.18 stating that a request for arbitration is merely an offer to arbitrate which is nonbinding unless both parties agree to proceed to arbitrate; 2) Qwest shall revise its SGAT language to provide that the party raising a dispute may choose to have the arbitration conducted in the city of its principal place of business or at any other mutually agreeable location; 3) Qwest shall remove the first sentence of section 5.18.3.2 and the word "such" in the second sentence regarding discovery conducted in arbitration proceedings; and 4) Qwest shall revise its SGAT language for section 5.18.5 to read that any dispute must be brought within the time for bringing such action as provided under South Dakota law. With respect to Track A, the Commission finds that Qwest has demonstrated that it meets the standards imposed by section 271(c)(1)(A), as well as the FCC's four criteria. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Mr. Frazier recommended that the agreement be approved.
Commissioner Nelson moved to approve the agreement. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Mr. Frazier recommended that the agreement be approved.
Commissioner Nelson moved to approve the amendment. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Mr. Senger recommended that AmeriTel Prepaid, LLC be allowed to withdraw its application for a Certificate of Authority and that the docket be closed.
Commissioner Nelson moved to allow AmeriTel Prepaid, LLC to withdraw its application for a Certificate of Authority and that the docket be closed. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Ms. Forney explained the application of NOW Communications of South Dakota, Inc. for a Certificate of Authority and recommended that it be granted with waivers of ARSD 20:10:24:02(08) and ARSD 20:10:32:03(11) and subject to a continuous $25,000 security bond.
Commissioner Nelson moved to grant a Certificate of Authority to NOW Communications of South Dakota with waivers of ARSD 20:10:24:02(08) and ARSD 10:10:32:03(11) and subject to a continuous $25,000 security bond. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Mr. Jacobson recommended that the application of Choice Telco, LLC for a Certificate of Authority be approved subject to restrictions from offering prepaid calling cards, accepting advance payments and customer deposits.
Commissioner Nelson moved to grant a Certificate of Authority to Choice Telco, LLC with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Ms. Farris recommended that Ridley Telephone Company, LLC be granted a Certificate of Authority with a waiver of ARSD 20:10:24:02(08) and with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits.
Commissioner Nelson moved to grant a Certificate of Authority to Ridley Telephone Company, LLC. with a waiver of ARSD 20:10:24:02(08) and with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Mr. Jacobson recommended that Tralee Telephone Company, LLC be granted a Certificate of Authority with a waiver of ARSD 20:10:24:02(08) and with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits.
Commissioner Nelson moved to grant a Certificate of Authority to Tralee Telephone Company, LLC. with a waiver of ARSD 20:10:24:02(08) and with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Ms. Farris recommended that Telliss, LLC be granted a Certificate of Authority with a waiver of ARSD 20:10:24:02(08).
Commissioner Nelson moved to grant a Certificate of Authority to Telliss, LLC with a waiver of ARSD 20:10:24:02(08). Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Mr. Jacobson recommended that ILOKA Inc. d/b/a Microtech-Tel be granted a Certificate of Authority with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits.
Commissioner Nelson moved to grant a Certificate of Authority to Iloka Inc. d/b/a Microtech-Tel with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Ms. Forney recommended that approval be given to VP Telecom for 1) Intrastate Switch Access Tariff; 2) exemption from developing company specific cost-based switched access rates, pursuant to ARSD 20:10:27:11; 3) waiver of the use of the formula in ARSD 20:10:27:12 so as to mirror the Qwest Corporation tariffed access rates; and 4) VP file a petition within three years to continue the exemption granted or file cost-based rates.
Commissioner Nelson moved to approve the Intrastate Switch Access tariff with an exemption from developing company specific cost-based switched access rates pursuant to ARSD 20:10:27:11, with a waiver of the use of the formula in ARSD 20:10:27:12 so as to mirror the Qwest Corporation tariffed access rates and that VP Telecom, Inc. file a petition within three years to continue the exemption granted or file cost-based rates. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Ms. Forney recommended that NECC Telecom, Inc. be granted a Certificate of Authority with a waiver of ARSD 20:10:24:02(08); with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits; and with an effective date of October 22, 2002.
Commissioner moved to grant a Certificate of Authority to NECC Telecom, Inc. with a waiver of ARSD 20:10:24:02(08); with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits; and with an effective date of October 22, 2002. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Mr. Senger recommended that Global Communications Consulting Corp. be granted a Certificate of Authority with a waiver of ARSD 20:24:02(08), with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits; and with an effective date of October 28, 2002.
Commissioner Nelson moved to grant a Certificate of Authority to Global Communications Consulting Corp. with a waiver of ARSD 20:24:02(08), with restrictions from offering prepaid calling cards, accepting advance payments and customer deposits; and with an effective date of October 28, 2002. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Mr. Frazier recommended that the amendment be approved.
Chairman Burg moved to approve the amendment. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Mr. Frazier recommended that the amendment be approved.
Chairman Burg moved to approve the amendment. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Mr. Frazier recommended that the amendment be approved.
Chairman Burg moved to approve the amendment. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Ms. Forney recommended that Qwest Corporation be allowed to withdraw its filing.
Chairman Burg moved to grant the withdrawal and close the docket. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Brian Meyer, representing LECA et al, argued that LECA should be allowed intervention on the basis that some LECA customers would be financially impacted should S&S be unable to provide service. Mr. Frazier stated that S&S Communications was required by Order to update it=s bond to provide 100% bond coverage for all South Dakota customers who were not covered by the finance agreement provided by Aberdeen Finance. Staff=s Motion argued that S&S was in violation of that Order in that S&S had not updated the bond, had provided a Letter Of Credit instead of a bond and has objected to providing information requested by Staff in order to calculate the proper bonding amount. Mr. Senger argued that S&S had not responded fully to data requests and that the information he requested was necessary to revise bond calculations to comply with the Commission=s Order. John Burke, representing S&S, argued that LECA should not be permitted intervention as they had failed to meet the legal standard permitting intervention. Mr. Burke further argued that the information that Staff was requesting was not necessary to properly calculate the bond amount and that S&S was acting to preserve customer privacy rights related to financial information maintained by S&S and Aberdeen finance.
Commissioner Nelson moved to grant Staff's motion for the Commission to issue an Order to Show Cause. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Action on intervention was deferred to permit LECA et al to provide additional information demonstrating a sufficient interest to warrant intervention.
20. IN THE MATTER OF THE FAILURE OF CERTAIN TELECOMMUNICATIONS COMPANIES TO TIMELY FILE THE GROSS RECEIPTS TAX. (Finance Officer: Terri J. Iverson.)
Ms. Iverson recommended that the Commission issue an Order To Show Cause as to why the Commission should not fine, or suspend or revoke the Certificates Of Authority of companies that have failed to timely file their gross receipts tax as required by SDCL 49-1A
Chairman Burg moved to issue an Order To Show Cause as to why the Commission should not fine, or suspend or revoke the Certificates Of Authority of each of the following companies for failure to pay the requisite gross receipts tax:
ACS Systems, Inc.
America's Tele-Network Corp.
Big Planet, Inc.
Capsule Communications, Inc.
CEO Telecommunications, Inc.
Cybertel Communications Corp.
EqualNet Corporation
Federal TransTel, Inc.
Global TeleLink Services, Inc, dba South Dakota GTS
Inmark, Inc. dba Preferred Billing
IPVoice Communications, Inc.
Maxtel USA, Inc.
NeTeL, Inc. dba Tel3
NTERA, Inc.
Pac-West Telecomm Inc.
Preferred Carrier Services, Inc.
Premiere Network Services
Qwest Communications Inc.
RapTel Communications, LLC
Sterling Time Company
Storm Tel, Inc.
TalkNow, Inc.
Telephone Co. of Central Florida
TON Services, Inc.
United Services Telephone, LLC
USLD Communications, Inc.
West End Communications Inc.
Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Grain Dealers
1. GD01-002 IN THE MATTER OF GRAIN DEALER'S BOND OF AGRIBIOTECH INC. (Staff Attorney: Rolayne Wiest.)
Mr. Frazier noted that claims had been received and recommended that the Commission grant Staff's recommendations.
Chairman Burg moved that the Commission grant Staff's Motion to Receive into Evidence the additional claims and documentation supporting the claims of Wishek Farmers Elevator, Amkota Coop, Knight Seed Company, Lone Prairie Grain, and Rolling Prairie Grain Company, which are marked as Exhibits 10 through 16. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Chairman Burg moved that the Commission accept Staff's recommendations concerning the amount of each claim, including the claims received into evidence today, and Staff's recommendations regarding the distribution of the bond proceeds. He further moved that the claims against the bond covering July 1, 1999, through June 30, 2000, should be distributed based on Staff's recommendations regarding the amount and validity of each claim, on a pro rata basis, including accrued interest. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Administration
1. IN THE MATTER OF THE CONTRACT WITH SPIEGEL & MCDIARMID CONSULTING. (Staff Analyst: Dave Jacobson.)
Mr. Jacobson and Ms. Iverson explained and recommended approval to contract with Spiegel & McDiarmid to do consulting for Williston Basin Interstate Pipeline Company, FERC Docket No. RP00-107-000 and answered questions from Commissioner Sahr.
Chairman Burg moved to approve the $50,000.00 contract with Spiegel & McDiarmid. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Meeting adjourned.
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Mary R. Giddings
Administrative Secretary
