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South Dakota Public Utilities Commission Meeting
Tuesday, May 6, 2003; 1:30 p.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 Karen Cremer; Staff Analysts David Jacobson, Bonnie Bjork, Keith Senger, Jim Mehlhaff, Steve Wegman and Michele Farris; and Administrative Secretary Tina Douglas.
Also present were David Gerdes, May, Adam, Gerdes & Thompson, representing Midcontinent Communications, MCI WorldCom, and Montana-Dakota Utilities Co.; Rich Coit, South Dakota Telecommunications Association; Darla Rogers and Mark Benton, MidState Telecom, Inc.; and Bob Miller, South Dakota Electric Utility Companies.
Joining the meeting by telephone were Linn Evans, Black Hills Corporation; Matthew McCaulley and Bill Heaston, PrairieWave Telecommunications, Inc.; Tim Goodwin and Colleen Sevold, Qwest Corporation; Tom Welk, Boyce, Greenfield, Pashby & Welk LLP, representing Qwest Corporation; Joe Schuele, Martin Group; Mary Lohnes, Midcontinent Communication; and Greg Erlandson, Bangs, McCullen, representing West River Electric Association, Inc.
Administration
1. APPROVAL OF THE MINUTES OF THE COMMISSION MEETING HELD ON APRIL 15, 2003. (STAFF: TINA DOUGLAS.)
Commissioner Hanson moved to approve the minutes of the Commission Meeting held on April 15, 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 684 consumer contacts during 2003. Since the last report was prepared for the April 15, 2003, Commission meeting, 152 of these contacts have been received; 100 of the contacts involve telecommunication services; 20 of the contacts involve electricity issues; 11 contacts involve natural gas issues; 5 contacts involve cellular phone services; and 16 contacts involve miscellaneous services not regulated by the PUC. In 2003, 541 of the 684 complaints registered have been resolved informally. At this time, 1852 of the 1918 complaints from 2002 have been resolved.
2. IN THE MATTER OF DISMISSING DOCKETS, CE03-002, CT02-045, CT02-047, CT03- 001, AND CT03-003
After bearing the expense of replacing a line that was removed by the Respondent, the Complainant received a bill for the installation of a meter and transformer. Complainant seeks to have the burden for the cost of the meter and transformer installation shifted to the Respondent.
CR of Sioux Falls' representative (Complainant) alleges that McLeodUSA Telecommunications Services, Inc. (McLeod) failed to provide Complainant with an acceptable level of customer service for the various problems Complainant was experiencing. Complainant switched its phone service to another provider and McLeod informed Complainant that it owed $2,178.93 in termination fees.
Complainant's representative states that Complainant's 800# was switched to QuantumLink without authorization. Complainant's representative requests $1,000.00 for the unauthorized switch as allowed by South Dakota law.
Complainant states that his service was switched without his authorization. Complainant requests a payment of $800.00 for the unauthorized switch and reimbursement of expenses to attend a hearing.
The Complainant alleges that Ionex failed to provide long distance service from August 16, 2002, through November 1, 2002. The complainant seeks to have the unpaid charges for local service waived as compensation for the hardship caused as a result of the long distance issue. The company has filed a Motion To Dismiss.
Chairman Sahr moved to dismiss the complaints and close dockets CE03-002, CT02-045, CT02-047, CT03-001, and CT03-003. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
3. IN THE MATTER OF DISMISSING DOCKETS, CT99-002 AND TC98-176
The Complainant claims that he and his neighbors have poor telecommunications service. The Complainant states that "The service we are receiving from U S West is a joke and U S West needs to get serious about providing service." The Complainant seeks the following relief: "PUC should fine them $4000 a day."
On September 21, 1998, the Commission received a complaint from Randy Kieffer, Sturgis, SD, against U S WEST regarding service problems. The Complaint states several incidents of ongoing service problems and poor or slow response by U S WEST. The phone outages require the complainant to drive 26 miles to Sturgis to report the outage and to make necessary phone calls. The complainant paid $2,500 last year to have a telephone line installed. The complainant asks that U S WEST reimburse time and travel expenses for past and future phone outages or that U S WEST provide two cellular phones free of cost to be used when the outages occur. Ms. Cremer stated that Complainant's service had improved following system upgrades by Qwest and that he had no objection to dismissal provided he could refile if problems resumed.
Commissioner Burg moved to dismiss the complaints and close dockets CT99-002 and TC98-176 without prejudice. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Electric
Ms. Farris stated that Ms. Cremer spoke to Mr. Petersen who is the attorney for Central Electric Cooperative, Inc., and asked if this action could be deferred. He had no problem with deferring this action until the next commission meeting. Ms. Farris recommended this action be deferred.
Commissioner Hanson moved for deferral on this action until the next commission meeting. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.
Natural Gas
David Gerdes, representing Montana-Dakota Utilities Co., stated that Montana-Dakota Utilities Co. (MDU) had a problem adhering to the procedural schedule. MDU will have its testimony filed by May 23, 2003. MDU agreed to suspending rates for 30 days beyond the 180- day deadline. Ms. Cremer stated that the Commission is looking at scheduling a hearing in June, 2003.
Commissioner Burg moved to approve Montana-Dakota Utilities Co.'s Motion to Continue and Reschedule the Hearing based on Montana-Dakota Utilities Co.'s agreement to suspend the new rates for an additional 30 days. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Telecommunications
Ms. Cremer stated that the Agreement has been properly filed, no comments were filed, and recommended approval.
Commissioner Burg moved to approve the proposed Agreement in TC03-064. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
2. In the Matter of the Filing for Approval of Amendments to Agreements in TC03-051, TC03-053 and TC03-065.
Ms. Cremer stated that the Amendments have been properly filed, no comments were filed, and recommended approval.
Commissioner Hanson moved to approve the Amendments in TC03-051, TC03-053, and TC03-065. Chairman Sahr seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Farris stated that CI2, Inc. had filed an application for a Certificate of Authority to provide local exchange service in South Dakota in those areas served by Qwest. CI2, Inc. has made all of staff's recommended changes to the tariff. The company has filed the $25,000.00 bond with the Commission. Ms. Farris recommended approval of CI2, Inc.'s Certificate of Authority with the continuous bond requirement and subject to rural safeguards.
Commissioner Burg moved to grant CI2, Inc.'s Certificate of Authority, subject to a continuous $25,000.00 surety bond, and subject to rural safeguards. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Smith stated that the proceeding would not be concluded in 90 days. The intervenors present and on the phone had no objection to the additional time period.
Chairman Sahr moved to find that this proceeding cannot be completed within 90 days and that an additional 90 days will be necessary to properly complete the case and to order an additional 90 day time period past the original 90 days. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Mr. Welk, Qwest, discussed SDCL 49-31-44 which would require Qwest to make a deposit of up to $75,000.00. He wanted the filing fee apportioned among all of the parties. The intervenors all objected to that decision on the apportionment issue on the grounds of improper notice. Chairman Sahr suggested that Mr. Welk file a motion regarding this matter so it can be properly noticed. Staff noted that the matter has not been noticed and therefore no action should be taken at this time.
Commissioner Hanson moved for deferral on this action until a motion is filed and proper notice has been given. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.
Ms. Cremer stated the procedural schedule will be as follows:
May 27, 2003 - Staff and Intervenors need to file testimony
July 28, 2003 - Qwest needs to file any re al testimony
August 12, 13, 14, and 15, 2003 - Hearing.
Ms. Cremer also stated the 180th day will be September 10, 2003.
Chairman Sahr moved to approve the procedural schedule as stated above. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed.
Ms. Bjork stated that on March 21, 2003, C III Communications Operations, LLC had filed an application for a Certificate of Authority to provide intrastate interexchange telecommunications services in South Dakota. The applicant has requested a waiver from filing financial statements as required by ARSD 20:10:24:02(8) and has agreed to restrictions from accepting customer deposits and advance payments and offering prepaid services. Ms. Bjork recommended approval of C III Communications Operations, LLC's Certificate of Authority with restrictions from accepting customer deposits and advance payments and offering prepaid services, and a waiver from filing financial statements as required by ARSD 20:10:24:02(8) with a effective date of May 21, 2003.
Commissioner Hanson moved to grant C III Communications Operations, LLC's Certificate of Authority with restrictions from accepting customer deposits and advance payments and offering prepaid services, and a waiver from filing financial statements as required by ARSD 20:10:24:02(8) with a effective date of May 21, 2003. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.
Ms. Bjork stated that Consolidated Communications Operator Services, Inc. had filed an application for a Certificate of Authority to provide live and automated long distance assistance and directory assistance services, as well as services for coinless and coin-operated public telephones.
The applicant has requested a waiver from filing financial statements as required by ARSD 20:10:24:02(8) and has agreed to restrictions from accepting customer deposits and advance payments and offering prepaid services. The company has made all of staff's recommended changes to the tariff. Ms. Bjork recommended approval of Consolidated Communications Operator Services, Inc.'s Certificate of Authority with restrictions from accepting customer deposits and advance payments and offering prepaid services, and a waiver from filing financial statements as required by ARSD 20:10:24:02(8) with a effective date of May 21, 2003.
Commissioner Burg moved to grant Consolidated Communications Operator Services, Inc.'s Certificate of Authority with restrictions from accepting customer deposits and advance payments and offering prepaid services, and a waiver from filing financial statements as required by ARSD 20:10:24:02(8) with a effective date of May 21, 2003. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Ms. Bjork stated that April 1, 2003, Qwest Communications Corporation had filed an application for a Certificate of Authority to provide interexchange telecommunications services and operator services in South Dakota. The applicant has requested a waiver from filing financial statements as required by ARSD 20:10:24:02(8). The company has filed the $25,000.00 bond with the Commission. Ms. Bjork recommended approval of the amendment of Qwest Communications Corporation's Certificate of Authority with the continuous bond requirement with an effective date of May 31, 2003.
Commissioner Hanson moved to grant the Amendment of Qwest Communications Corporation's Certificate of Authority subject to a continuous $25,000.00 surety bond, and a waiver from filing financial statements as required by ARSD 20:10:24:02(8) with a effective date of May 31, 2003. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.
Ms. Bjork stated that on April 4, 2003, Epixtar Communications Corp. had filed an application for a Certificate of Authority to provide interexchange intrastate telecommunications services in South Dakota. The applicant is a start-up company and has requested a waiver from filing financial statements as required by ARSD 20:10:24:02(8), and has agreed to restrictions from accepting customer deposits and advance payments and offering prepaid services. The company has made all of staff's recommended changes to the tariff. Ms. Bjork recommended approval of Epixtar Communications Corp.'s Certificate of Authority with restrictions from accepting customer deposits and advance payments and offering prepaid services, and a waiver from filing financial statements as required by ARSD 20:10:24:02(8) with a effective date of June 4, 2003.
Chairman Sahr moved to grant Epixtar Communications Corp.'s Certificate of Authority with restrictions from accepting customer deposits and advance payments and offering prepaid services, and a waiver from filing financial statements as required by ARSD 20:10:24:02(8) with a effective date of June 4, 2003. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Interstate Telecommunications Cooperative, Inc. filed a letter to intervene on April 29, 2003.
No one had an objection to the intervention.
Chairman Sahr moved to grant intervention to Interstate Telecommunications Cooperative, Inc. in TC03-068. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Administration
Mr. Smith stated that he had filed the notice of appeal to preserve the Commission's input to appeal but believes the Commission should decide in an open meeting whether to proceed with the appeal. Mr. Smith also stated that he would like the Commission to decide whether to express its special opposition to the adoption of Coles-Moultrie Elec. Coop. v. Illinois Commerce Comm. as the law of this state on the grounds that the case is inconsistent with the statutory scheme adopted in South Dakota as expressed in SDCL 49-34A-43 and 49-34A-44 and the existing case law in South Dakota and to request the Court to base its decision on the existing case law of this state.
Chairman Sahr moved to proceed with the appeal and would oppose the decision of Coles-Moultrie Elec. Coop. v. Illinois Commerce Comm. if the South Dakota Supreme Court rules in favor of this case. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
