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South Dakota Public Utilities Commission Meeting
Tuesday, March 18, 2003; 9:30 a.m.
Capital Building, Room 412
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Chairman Bob Sahr called the meeting to order. Also present were Vice Chairman Gary Hanson; Commissioner Jim Burg; Executive Director Pamela Bonrud; Commission Advisor Greg Rislov; Commission Attorney Rolayne Ailts Wiest; Commission Counsel John Smith; Staff Attorney Kelly Frazier; Staff Attorney Karen Cremer; Transportation/Warehouse Director Bob Knadle; Staff Analysts Dave Jacobson, Harlan Best, Bonnie Bjork, Keith Senger, Jim Mehlhaff, and Michele Farris; and Administrative Secretary Tina Douglas.
Joining the meeting by telephone were Linn Evans, Black Hills Corporation; Colleen Sevold and Tim Goodwin, Qwest Corporation; Mary Lohnes, Midcontinent Communications; Russell Blau, Swidler, Berlin, Shereff, Freedman; Bernie Snoddy, Williams & Co. Consulting; and Les Sumption, S&S Communications.
Administration
1. APPROVAL OF THE MINUTES OF THE COMMISSION MEETING HELD ON MARCH 4, 2003. (Staff: Tina Douglas.)
Commissioner Gary Hanson moved to approve the minutes of the Commission meeting held on March 4, 2003. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.
Consumer Issues
1. STATUS REPORT ON CONSUMER UTILITY INQUIRIES AND COMPLAINTS RECENTLY RECEIVED BY THE COMMISSION. (Staff Analyst: James Mehlhaff.)
Mr. Mehlhaff reported that the Commission has received a total of 341 consumer contacts during 2003. 83 contacts have been received since the last report was prepared for the March 4, 2003, Commission meeting. 65 of the contacts since the March 4, 2003, meeting involve telecommunication issues. There have been 11 contacts involving electricity issues, 3 contacts involving natural gas issues, and 4 miscellaneous contacts involving services not regulated by the PUC. 228 of the 341 complaints registered in 2003 have been resolved informally and at this time 1848 of the 1916 complaints from 2002 have been resolved.
2. IN THE MATTER OF DISMISSING DOCKET CT03-004
Complainant alleges that due to incorrect instructions from MCI customer service personnel, he was led to believe that he had canceled his MCI account on 11/01/02 but continued to receive MCI service until 01/09/03. Complainant seeks to have all outstanding MCI long distance charges waived. Ms. Cremer stated that the Commission has received a letter from MCI stating that this complaint has been resolved.
Commissioner Hanson moved to dismiss the complaint and close docket CT03-004. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.
Electric
Mr. Jacobson explained that the current municipal contract providing electrical service to the City of Egan expires April 1, 2003. The new contract does not deviate from filed tariffs and this filing removes the contract from Otter Tail's list of contracts with deviations. Mr. Jacobson recommended approval of the tariff revisions.
Chairman Sahr moved to approve the tariff revisions in EL03-006. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Jacobson explained that the current municipal contract providing electrical service to the City of Nunda expires April 1, 2003. The new contract does not deviate from filed tariffs and this filing removes the contract from Otter Tail's list of contracts with deviations. Mr. Jacobson recommended approval of the tariff revisions.
Commissioner Hanson moved to approve the tariff revisions in EL03-007. Chairman Sahr seconded and Commissioner Burg concurred. Motion passed 3-0.
Mr. Jacobson explained that the current municipal contract providing electrical service to the City of Hayti expires April 10, 2003. The new contract does not deviate from filed tariffs and this filing removes the contract from Otter Tail's list of contracts with deviations. Mr. Jacobson recommended approval of the proposed tariff revisions.
Commissioner Burg moved to approve the tariff revisions in EL03-008. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Telecommunications
Linn Evans, Black Hills Corporation explained that Black Hills FiberCom, L.L.C. (FiberCom) had filed a Petition for Declaratory Ruling Regarding Application of ARSD 20:10:32:11 and Alternative Petition for Approval of an Amendment to Black Hills FiberCom. L.L.C.'s Local Calling Exchange Area Pursuant to ARSD 20:10:32:11. On January 17, 2003, FiberCom filed a request to withdraw its petition. Ms. Wiest stated that staff expressed concern about FiberCom's solution to the problem but did not oppose the withdrawal of the Petition.
Chairman Sahr moved to approve the withdrawal of Black Hills Fibercom, LLC's Petition. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Russell Blau from Swidler, Berlin, Shereff, Freedman explained that staff and S&S have entered into discussions regarding S&S=s bond amount and the liability that S&S has to its customers. S&S has agreed to amend its certificate of authority to restrict the company from offering any new prepaid services, while continuing to serve all existing customers and maintaining all current bonding obligations. Mr. Blau stated that S&S has agreed to the modifications, and S&S viewed this as an interim solution. S&S believes the underlying issue is the terms of the bonding requirement and it will to bring that issue before Commission at a later date. Mr. Senger clarified that this is a standard restriction placed on other carriers and it includes restrictions from offering any prepaid services and from accepting any customer deposits or advanced payments. Mr. Senger stated that this amendment does not relieve S&S from posting a bond for those customers from whom S&S had received advance payments and for which it has continuing service obligations and that staff believes the company is currently under bonded. Mr. Senger stated that this recommended amendment does not constitute final action in this docket, that the docket should remain open for further action and that staff will move forward with additional action to address the amount that the company is under bonded. Mr. Senger recommended amending the certificate with the restrictions.
Commissioner Burg moved to amend S&S Communications' Certificate of Authority subject to restrictions that S&S not offer prepaid services to, or require or accept deposits or advance payments from, South Dakota customers without prior approval of the Commission, and that all conditions contained in the original certificate of authority granted in TC00-114 shall remain in effect and subject to enforcement by the Commission. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Ms. Farris stated that on February 5, 2003, Transcom Communications, Inc. filed an application for a Certificate of Authority to provide interexchange telecommunications services in South Dakota. The applicant intends to provide resold interexchange services, including 1+ and 101XXXX outbound dialing, 800/888 Toll-Free inbound dialing, directory assistance, data services and travel card service throughout South Dakota. Ms. Farris recommended approval of Transcom Communications, Inc.'s Certificate of Authority with an effective date of April 6, 2003.
Commissioner Hanson moved to grant Transcom Communications, Inc.'s Certificate of Authority with an effective date of April 6, 2003. Chairman Sahr seconded and Commissioner Burg concurred. Motion passed 3-0.
Mr. Frazier stated that the Amendment has been properly filed, no comments were filed, and recommended approval.
Commissioner Burg moved to approve the proposed Amendment in TC03-048. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Frazier stated that the Agreement has been properly filed, no comments were filed, and recommended approval.
Commissioner Hanson moved to approve the proposed agreement in TC03-049. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.
Ms. Bjork stated that Exergy Group, LLC has filed an application for a Certificate of Authority to provide interexchange telecommunications services in South Dakota. The applicant intends to provide resold interexchange services, including 1+ and 101XXXX outbound dialing, 800/888 toll- free inbound dialing, directory assistance, data services, and travel card service throughout South Dakota. Ms. Bjork recommended approval of Exergy Group, LLC's Certificate of Authority with restrictions from offering prepaid calling cards or accepting customer deposits or advance payments with an effective date of April 21, 2003. Ms. Bjork also recommended that Exergy Group, LLC be granted a waiver from ARSD 20:10:24:02(8).
Commissioner Hanson moved to grant Exergy Group, LLC's Certificate of Authority with restrictions from offering prepaid calling cards or accepting customer deposits or advance payments with an effective date of April 21, 2003, and to grant a waiver from ARSD 20:10:24:02(8). Chairman Sahr seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Bjork explained that Teleglobe USA LLC d/b/a Teleglobe USA LLC (South Dakota) Inc. have filed an application to transfer the Certificate of Authority of Teleglobe USA Inc. to Teleglobe USA LLC d/b/a Teleglobe USA LLC (South Dakota) to provide resold interexchange telecommunications services in the State of South Dakota. Proposed services initially include switched outbound voice services and, in the future, prepaid and postpaid calling card services, 800/888, private line, and data services. Ms. Bjork recommended approval of Teleglobe USA LLC d/b/a Teleglobe USA LLC (South Dakota) Inc.'s Certificate of Authority with restrictions from offering prepaid calling cards or accepting customer deposits or advance payments with an effective date of April 22, 2003. Ms. Bjork also recommended that Teleglobe USA LLC d/b/a Teleglobe USA LLC (South Dakota) Inc. be granted a waiver from ARSD 20:10:24:02(8).
Commissioner Hanson moved to grant Teleglobe USA Inc. and Teleglobe USA LLC d/b/a Teleglobe USA LLC (South Dakota) Inc.'s Certificate of Authority with restrictions from offering prepaid calling cards or accepting customer deposits or advance payments with an effective date of April 22, 2003, and to grant a waiver from ARSD 20:10:24:02(8). Chairman Sahr seconded and Commissioner Burg concurred. Motion passed 3-0.
8. IN THE MATTER OF APPROVING AGREEMENTS IN TC03-002, TC03-003, TC03-004, TC03-005, TC03-006, TC03-007, TC03-008, TC03-009, TC03-010, TC03-011, TC03-012, TC03-013, TC03-014, TC03-015, TC03-016, TC03-017, TC03-018, TC03-019, TC03-020, AND TC03-021,
AND IN THE MATTER OF APPROVING AGREEMENTS IN TC03-024, TC03-025, TC03- 026, TC03-027, TC03-028, TC03-029, TC03-030, AND TC03-031.
Mr. Frazier stated that due to the confidential nature of the majority of these agreements, staff had submitted a recommendation brief with the Commission and Qwest for their consideration. Since the submission of that brief, Mr. Frazier said that staff and Qwest had come to an agreement regarding the recommendations for this meeting. Staff recommended that the Commission defer action on dockets TC03-002 through TC03-021 on the basis that Qwest agreed to come to Pierre to discuss the dockets with staff. Mr. Frazier recommended that the Commission approve the agreements filed in dockets TC03-024 through TC03-031 on the basis that staff could not provide the Commission with evidence that there were grounds for the Commission to deny the agreement, per the guidelines of the 1996 Telecommunications Act. Staff also recommended approval on the basis that the 1996 Act suggested that if the Commission fails to act on the proposed agreements, jurisdiction over the dockets could arguably be assumed by the FCC. Staff also recommended that the Commission reserve the right to consider action on these dockets at a future time. Tim Goodwin, for Qwest, stated that Qwest did not consider the dockets in TC03-002 through TC03-021 to be interconnection agreements which fell within the mandatory 252(a)(1), but agreed to waive any the 90 day automatic implementation provisions of the Act to the extent the Commission may later find that these agreements were mandatory. Mr. Goodwin also stated that he agreed with staff=s recommendation that TC03-002 through TC03-021 be deferred to give Qwest an opportunity to come to Pierre to discuss the dockets with staff. Mr. Goodwin agreed that dockets TC03-024 through TC03-031 were interconnection agreements that needed to be filed with the Commission and joined in staff=s recommendation that those dockets be approved. Commissioner Sahr asked Qwest why TC03-024 through TC03-031 had not been filed with the Commission if Qwest agreed that they were mandatory filings. Mr. Goodwin stated he did not have an answer and requested that Qwest be given until April 1, 2003 to file a response with the Commission.
Action was deferred on the proposed agreements in TC03-003 through TC03-021.
Chairman Sahr moved to approve the proposed agreements in TC03-024 through TC03-031. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
