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South Dakota Public Utilities Commission Meeting
Tuesday, April 15, 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; Deputy Executive Director Heather Forney; Commission Advisor Greg Rislov; Commission Attorney Rolayne Ailts Wiest; Commission Counsel John Smith; Staff Attorney Kelly Frazier; Staff Attorney Karen Cremer; Staff Analysts Harlan Best, Bonnie Bjork, Keith Senger, Jim Mehlhaff, Steve Wegman and Michele Farris; and Administrative Secretary Tina Douglas.
Also present were Linn Evans and Stuart Wevik, Black Hills Corporation; Greg Dean, SDTA; Bob Miller, South Dakota Electric Utility Companies; and Brett Koenecke, Midcontinent Communications and OCMC, Inc.
Joining the meeting by telephone were Matt McCaulley, McCaulley Law Office; Bill Heaston, PrairieWave Telecommunications, Inc.; Mary Lohnes, Midcontinent Communications; Jeff Carmon and Larry Toll, Qwest Corporation; Ann Bernard, OCMC, Inc.; Mark Benton, Midstate Communications, Inc.; Paul Roberts, Clay-Union Electric Cooperative; Kyle White, Black Hills Corporation; Doug Eidahl, Northern Valley Communications; and Julie Degen, Hard Drive Central.
Administration
1. APPROVAL OF THE MINUTES OF THE COMMISSION MEETING HELD ON APRIL 1, 2003. (STAFF: TINA DOUGLAS.)
Commissioner Hanson moved to approve the minutes of the Commission Meeting held on April 1, 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 532 consumer contacts during 2003. Since the last report was prepared for the April 1, 2003, Commission meeting, 95 contacts have been received; 60 of the contacts involve telecommunication services; 13 of the contacts involve electricity issues; 5 contacts involve natural gas issues; 1 contact involves gas & electric utilities; 7 contacts involve cellular phone services; and 9 contacts involve miscellaneous services not regulated by the PUC. In 2003, 404 of the 532 complaints registered have been resolved informally. At this time, 1850 of the 1918 complaints from 2002 have been resolved.
Mr. Mehlhaff contacted both parties and Verizon Wireless agreed to waive early termination fees if Debra Gillen agreed to pay the amount she owed for the services. Both parties agreed to this settlement. Mr. Mehlhaff sent a letter to both parties regarding this settlement stating that the parties should contact PUC if either had a question. Mr. Mehlhaff has not had a response back from either party regarding the settlement.
Chairman Sahr moved to dismiss this complaint and close docket CT02-040. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Mr. Frazier stated that he had spoken to the Complainant and the company, and a final settlement has been reached. Mr. Frazier requested that the complaint be deferred until the check has cleared from the company. The Complainant is willing to dismiss the complaint at that time. Action was deferred.
Mr. Frazier had spoken with Ionex and it had agreed to settle with the Complainant. Mr. Frazier would like the complaint deferred until next meeting, and at that time the Complainant will ask to have the complaint dismissed. Ms. Julie Degen, Hard Drive Central had no comment. Action was deferred.
Electric
Paul Roberts, Clay-Union Electric Cooperative explained that the City of Vermillion annexed a portion of the DeYounge addition last fall. The City of Vermillion did not notify the Commission of the annexation, therefore the map has not been updated. the City of Vermillion is now requesting approval of the annexation. The annexation includes a portion of Lot 1 and 4 and Lot 2 and 3 of Block of the DeYounge addition. Mr. Roberts further explained that the City of Vermillion and Clay Union Electric Cooperative are requesting approval of the mutually agreed allocation of service territory to Clay Union Electric Cooperative by the City of Vermillion. The agreement for the allocation of territory was necessary after discovering that the City of Vermillion was inadvertently serving outside its approved territorial boundary. The City of Vermillion was serving about 14 residences in assigned electric service territory of Clay Union Electric Cooperative. The City of Vermillion has agreed to allocate territory in another part of its assigned service territory to Clay Union Electric Cooperative as compensation for the error. The service territory it proposes to transfer is bare ground and therefore involves no electric service customers. Clay Union Electric Cooperative shall transfer to the City of Vermillion the East 320.5 feet of Lot Y of replat of Lot B-2 in the SW 1/4 of the NE 1/4, S14, T92N, R52W of the 5th PM, City of Vermillion, Clay County, South Dakota. In exchange, the City of Vermillion shall transfer to Clay Union Electric Cooperative a portion of its assigned service territory described as: Lot 2, Block 1, DeYounge addition to the City of Vermillion, Clay County, South Dakota. Both parties have studied the electrical needs in the area to be divided and agree that the public interest will be best served through this agreement. The parties shall eliminate and avoid unnecessary duplication of facilities, provide adequate service to all areas and consumers affected and promote the efficient and economical use and development of the electric system of the parties. Ms. Farris stated the boundary change was in the public's interest and recommend approval of the annexation and also the electric service territory boundary change.
Commissioner Hanson moved to approve the annexation and also the electric service territory boundary change between Clay Union Electric Cooperative and the City of Vermillion in EL03-004. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.
Stuart Wevik, Black Hills Corporation explained that this a joint request between Black Hills Power (BHP) and West River Electric Association (WREA) for approval of an Electric Service Rights Exception. The request would allow WREA to provide electrical service to three signs owned by Epic Outdoor Advertising adjacent to I-90, located in BHP's service territory. The signs are located in Sections 16 and 21, T2N, R7E, Pennington County. WREA has distribution facilities located adjacent to the signs and is currently serving another sign in the area. BHP's nearest distribution facilities are several hundred feet away, which would necessitate a significant investment for the sign owner to procure service from BHP. By allowing WREA to provide service to the signs, unnecessary duplication of the facilities would be avoided. Ms. Farris stated that this exception benefits all parties and recommended approval of the service rights exception.
Chairman Sahr moved to approve the service rights exception between Black Hills Power and West River Electric Association, Inc. in EL03-012. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Stuart Wevik, Black Hills Corporation explained that this was a joint request between e Electric Cooperative, Inc. and Black Hills Power for approval of the relocation of an electric service territory boundary located in Section 6, Township 5 North, Range 5 East, Black Hills Meridian, Meade County, South Dakota. The specific impacted properties include the western- most portion of Lot 1A, and Lot 1B revised in the Sturgis Industrial Park Subdivision. Only one customer is impacted by this boundary change and he is in agreement. Ms. Farris stated that this exception benefits all parties and there were no intervenors. Therefore, Ms. Farris recommended approval of the territory boundary change.
Chairman Sahr moved to approve the territory boundary change between Black Hills Power and e Electric Cooperative, Inc. in EL03-013. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Telecommunications
Ms. Bjork explained that on March 26, 2003, Entrix Telecom, Inc. submitted an application for a Certificate of Authority to provide intrastate interexchange telecommunications services in South Dakota. The Applicant intends to provide resold interexchange services, including prepaid Toll-Free and local access calling cards and directory assistance throughout South Dakota. The Applicant is a wholly owned subsidiary of IDT Domestic Telecom, Inc. Entrix does not have historical financial statements. The Applicant has requested a waiver from filing financial statements as required by ARSD 20:10:24:02(8). The Applicant has posted a $25,000 indemnity bond payable to the Commission and consumers of South Dakota. It has made all of staff's recommended changes to the tariffs. Ms. Bjork recommended granting the waiver of the financial statements and approval of a Certificate of Authority to Entrix Telecom, Inc. with an effective date of May 26, 2003.
Commissioner Hanson moved to grant Entrix Telecom Inc.'s Certificate of Authority with an effective date of May 26, 2003, subject to a continuous $25,000.00 surety bond, and to grant a waiver from ARSD 20:10:24:02(8). Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.
Black Hills FiberCom, LLC, Northern Valley Communications, LLC, Midcontinent Communications, PrairieWave Telecommunications, Inc., PrairieWave Community Telephone, Inc., Midstate Telecom, Inc., the South Dakota Telecommunication Association, and WorldCom filed petitions to intervene in this docket. Larry Toll, Qwest, stated that he had no objection to any of the motions to intervene. Ms. Cremer asked if the Commission wanted to discuss the procedural schedule at this time. Mr. Smith stated that a draft document of the procedural schedule would be sent out to all the parties, and that staff would bring it to the Commission at the next meeting.
Chairman Sahr moved to grant intervention to Black Hills FiberCom, LLC, Northern Valley Communications, LLC, Midcontinent Communications, PrairieWave Telecommunications, Inc., PrairieWave Community Telephone, Inc., Midstate Telecom, Inc., the South Dakota Telecommunication Association, and WorldCom in TC03-057. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Mr. Senger explained that on May 16, 2002, the Commission granted Winstar Communications, LLC (Winstar) authority to provide interexchange telecommunications services in South Dakota, subject to a continuous $25,000 surety bond. On March 3, 2003 the Commission received a notice that Winstar's bond was being canceled as of April 18, 2003. After a number of contacts with the company, the Commission received a filing from Winstar on March 28, 2003, requesting relief from the Commission's bond requirement. The Company states that they are not currently providing any prepaid services in South Dakota nor do they hold any customer deposits. The Company has also revised its tariff accordingly. Mr. Senger recommended amending Winstar Communications, LLC's Certificate of Authority to add restrictions from offering any prepaid services and from accepting customer deposits and advanced payments without prior approval of the Commission, and to remove the bond requirement.
Commissioner Burg moved to amend Winstar Communications, LLC's Certificate of Authority to add restrictions from offering any prepaid services and from accepting customer deposits and advanced payments without prior approval of the Commission, and to remove the bond requirement. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
4. In The Matter of Staff's Motion For the Commission To Issue An Order To Show Cause to OCMC, Inc. (Staff Attorney: Kelly Frazier)
Mr. Frazier stated that this is the first step to open a docket and issue an Order To Show Cause against OCMC, Inc. d/b/a One Call Communications, Inc., OPTICOM, AdvantTel, LiveTel, SuperTel, RegionalTel, and 1-800-MAX-SAVE. The Order would require OCMC, Inc to appear and show cause as to why the Commission should not proceed to suspend or revoke its Certificate of Authority. Mr. Frazier stated that the Commission had received several complaints from consumers regarding this company and its practices regarding collect calls. Mr. Frazier stated that the FCC had recently issued a NAL against this company for failing to provide branding information of both rate and name on collect calls. Mr. Frazier checked its tariff on how it had obliged itself to conduct business in South Dakota and in its tariff, OCMC verified that it would provide both rate and name branding on those types of calls. Mr. Frazier had staff make some calls to 1-800-CALL-AAT and 1- 800-COOLECT, and the rate was not provided at the termination point. Mr. Frazier feels that these omissions are violations of its tariff. Another consumer complaint alleges that OCMC charged a 4 minute minimum with a per minute rate of $8.00 without advising the terminating party of this. Mr. Frazier requested that the Commission open a docket and issue an Order to Show Cause and have this company come forward and explain to the Commission why the Commission should not proceed to schedule a hearing to suspend or revoke its Certificate of Authority pursuant to the administrative rules. Brett Koenecke, OCMC, Inc., stated this is only 5% to 10% of its business. This is a very small portion of its business. Mr. Koenecke stated that one company should not be made an example of, hat if the Commission has a problem with fat finger dialing, it should be handled through administrative rulemaking. Mr. Koenecke also disputed the allegations of the FCC NAL and stated that no hearings have been scheduled regarding the NAL. OCMC, Inc. believes that rate information is available in the ordinary course of business. Mr. Koenecke asked the Commission to dismiss or stay this motion until the FCC completed its review of this matter.
Chairman Sahr moved to open a docket and to issue an Order to Show Cause against OCMC, Inc. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3- 0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
