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South Dakota Public Utilities Commission Meeting
Tuesday, June 3, 2003; 9:00 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 Karen Cremer; Staff Attorney Kelly Frazier; Staff Analysts David Jacobson, Bonnie Bjork, Keith Senger, Jim Mehlhaff, Steve Wegman, Harlan Best, Terri Iverson, and Michele Farris; and Administrative Secretary Tina Douglas.
Also present were Rich Coit, South Dakota Telecommunications Association; Darla Pollman Rogers, representing MidState Telecom, Inc.; Bob Miller, South Dakota Electric Utility Companies; Brett Koenecke, May, Adam, Gerdes and Thompson, representing Montana Dakota Utilities and Midcontinent Communications; and Cheri Wittler, Court Reporter.
Joining the meeting by telephone were Bill Heaston and Pat Mastel, PrairieWave Telecommunications, Inc.; Tim Goodwin and Colleen Sevold, Qwest Corporation; Tom Welk, Boyce, Greenfield, Pashby & Welk LLP, representing Qwest Corporation; Mary Lohnes, Midcontinent Communication; Janet Brown and Steve Weigler, AT&T; Mark Ayotte, Rural Cellular Corporation and Wireless Alliance, LLC; John Frankel and Russell Blau, Swidler Berlin Shereff Friedman, representing S&S Communication; and Marv Sorensen, MidAmerican Energy Corporation.
Administration
1. Approval of the Minutes of the Commission Meeting Held on May 6, 2003, and the Ad Hoc Meeting Held on May 12, 2003. (Staff: Tina Douglas.)
Commissioner Hanson moved to approve the minutes of the Commission Meeting held on May 6, 2003, and the Ad Hoc Meeting Held on May 12, 2003. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.
Consumer Issues
1. Status Report on Consumer Utility Inquiries and Complaints Received by the Commission. (Consumer Affairs: Jim Mehlhaff.)
Mr. Mehlhaff reported that the Commission has received a total of 862 consumer contacts during 2003. Since the last report was prepared for the May 6, 2003, Commission meeting, 178 of these contacts have been received; 119 of the contacts involved telecommunication services; 33 of the contacts involved electricity issues; 17 contacts involved natural gas issues; 2 contacts involved cellular phone services; 1 contact involved gas and electric services; and 6 contacts involved miscellaneous services not regulated by the PUC. In 2003, 701 of the 862 complaints registered have been resolved informally. At this time, 1853 of the 1918 complaints from 2002 have been resolved.
Mr. Mehlhaff spoke to both parties and they have settled. Mr. Mehlhaff recommended dismissing and closing the docket.
Chairman Sahr moved to dismiss the complaint and close docket CT03-009. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Electric
Ms. Farris stated that the City of Plankinton and Central Electric Cooperative entered into an Electric Service Agreement on February 17, 2003. The City annexed certain real property on November 5, 2002, which is included in the service area of Central Electric. The City provided notice to Central of its intent to purchase the electric utility properties and service rights to a portion of said annexed property in compliance with SDCL 49-34A-49. The City and Central agree that it is in the best interests of both parties and the public interest that electric service to the annexed area be divided and that a portion be served by each of the parties. The real property annexed by the City includes Block 1, 2, Lots 1,2,3,4, and 5 of Block 3, Lots 1,2, and 3 of Block 4 of East Meadow First Addition , Vine Street, Pennington Street, Grace Street and Outlot A. All being a subdivision of that portion of the NW 3 of Section 23 and the NE 3 of Section 23 lying south of the right of way of the former Chicago, Milwaukee, St. Paul and Pacific Railroad Company, now the division of railroads for the state of South Dakota, lying north of Lot H1 - Old Highway no 16, less Lot 1 in the NE 3 of Section 23 and Lot H1 in the NW 3 of Section 23, all in T103 N, R 64 W of the 5th P.M. City of Plankinton, Aurora County, South Dakota. The city has agreed to allow Central to provide electric service to Block 2, including rights-of-way. The City agrees to provide payment to Central pursuant to SDCL 49-34A-50, and Central agrees to provide payment to the City in accordance with SDCL 49-34A-46. All parties are in agreement with the proposal. Ms. Farris recommended that the Commission approve the boundary change due to annexation and to approve the service rights exception for Block 2.
Commissioner Hanson moved to approve the boundary change due to annexation and to approve the service rights exception in EL03-009. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.
Marv Sorensen, MidAmerican Energy Corporation stated that the company requested a change on the bill form. MidAmerican has retooled its printing operations so that it is now feasible to perform in-house printing on both sides of its bill form. In the past, the bill form was printed by an outside vendor and the form was common to all of MidAmerican's jurisdictions. Because of the operational change, MidAmerican no longer needs to retain the contact information for each regulatory agency on every bill regardless of the customer's jurisdiction. Therefore, the contact information for each jurisdiction will be placed in the Questions or Concerns heading on the bill. Ms. Farris recommended approval of the tariff revision.
Commissioner Burg moved to approve the tariff revision in EL03-014. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Ms. Farris stated that NorthWestern Energy and Northern Electric Cooperative filed a Joint Request for an Electric Service Territory Exception. The area to be transferred from NorthWestern is that part of the SW 3 West of SD Hwy 37 in S6 T116N R61W of the 5th PM, Spink County, except the north 949 feet and except the RR ROW and except Lot H-1 and H-2, and the abandoned RR ROW in the SW 3 of SD Hwy 37 in S6 T116N R61W. Mr. and Mrs. Mark LaBrie have requested the exception to allow Northern Electric to serve their property due to the proximity of facilities. In order for NorthWestern to serve the LaBrie's it would have been necessary to extend the facilities : mile. NEC has facilities located within 1,390 feet. Currently, NEC is providing facilities to the LaBrie's, and this territory exception would approve the status quo. The parties have agreed the release is specifically limited to the house and future out buildings on the property previously described. Both parties believe this exchange will promote the efficient and economical use of their respective electric systems. Ms. Farris recommended that the service rights exception is in the public interest and recommended the commission approve the request for an Electric Service Territory exception.
Chairman Sahr moved to approve the electric Service Territory exception between NorthWestern Energy and Northern Electric Cooperative, Inc., in EL03-015. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Natural Gas
On May 22, 2003, Montana-Dakota Utilities Co. filed a Motion to Extend Deadline for Re al Testimony. Brett Koenecke, May, Adam, Gerdes and Thompson, representing Montana Dakota Utilities, stated that he understood that Karen Cremer and staff agreed that re al testimony may be filed on June 6, 2003, because Montana-Dakota Utilities Co. was not able to file the appropriate documents on time.
Chairman Sahr moved to approve the Motion to Extend Deadline for Re al Testimony, in NG02-011. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Marv Sorensen, MidAmerican Energy Corporation stated that this filing is the same as EL03-014 regarding revised bill format. Ms. Farris recommended approval of the revised tariff.
Commissioner Burg moved to approve the tariff revision in NG03-003. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Telecommunications
1. In the Matter of the Filing for Approval of Agreements in TC03-069, TC03-076, TC03- 077, and TC03-080
Mr. Frazier stated that all of the Agreements have been properly filed, companies have the proper certification, the Agreements have been properly executed and do not appear to contain discriminatory provisions, no comments were filed, and recommended approval to all four Agreements.
Chairman Sahr moved to approve the Agreements in TC03-069, TC03-076, TC03- 077, and TC03-080. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
2. In the Matter of the Filing for Approval of Amendments to Agreements in TC03-070, TC03-071, TC03-073 and TC03-074.
Mr. Frazier stated that all of the Amendments have been properly filed, have been properly executed and do not appear to contain discriminatory provisions, no comments were filed, and recommended approval to all of the Amendments.
Chairman Sahr moved to approve the Amendments in TC03-070, TC03-071, TC03- 073 and TC03-074. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Commissioner Burg moved to amend the Certificate of Authority to clarify and add to S&S Communications/Alterna-Cell information, documents, and statements it is required to file under condition three of the reporting requirements of the Order granting Certificate of Authority in Docket TC00-114. The reports are required to be filed on or before June 21 and December 21 of each year beginning with June 21, 2003. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Ms. Farris stated that at the previous commission meeting CI2, Inc.'s application for a local service Certificate of Authority was approved. The Certificate of Authority was approved with bond restrictions. Originally the company was planning to post a bond but were having difficulty securing a bond. It then agreed to restrictions from advance payments and deposits. Currently it has one customer in SD the US Army Reserves, and they will bill in arrears and not collect a deposit. Ms. Farris recommended that the commission reconsider the Certificate of Authority and approve CI2, Inc.'s Certificate of Authority with restrictions on advance payments and deposits instead of the surety bond.
Commissioner Burg moved to reconsider CI2, Inc.'s Certificate of Authority and approve CI2, Inc.'s Certificate of Authority with the standard restrictions on collecting advance payments and deposits instead of the surety bond. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Transcript of June 3, 2003, 9:00 a.m. Commission Meeting of TC03-057
Chairman Sahr moved to deny the motion to apportion the deposit that Qwest shall make a deposit in an amount up to $75,000.00, which shall include the amount that it currently has on deposit and that any amounts in addition to the amounts it has on deposit will only be assessed against Qwest in the event that the amount of the deposit is insufficient to pay the costs incurred. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Mr. Senger stated that on March 20, 2003, Excel Telecommunications, Inc. (Excel). filed its South Dakota Public Utilities Commission access tariff No. 4 for approval. Excel amended its request on May 12 and May 23, 2003. Excel is petitioning the Commission for an exemption in accordance with ARSD 20:10:27:11 from having to develop intrastate switched access rates based on company specific cost as required by ARSD 20:10:27:07. The company is also requesting a waiver from filing rates based on the cost of all telecommunication companies with less than 100,000 access lines as required by ARSD 20:10:27:12. Mr. Senger recommended that the Commission grant the waivers and allow Excel to mirror Qwest rates for up to 3 years.
Commissioner Burg moved to approve the intrastate switched access tariff and grant an exemption from filing company specific cost data and a waiver from having to file rates based on the cost of all telecommunication companies with less than 100,000 access lines and to allow Excel to mirror Qwest rates for up to 3 years at which time Excel will be required to petition the Commission for an extension on the rates or provide cost based rates. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3- 0.
Ms. Farris stated that on March 20, 2003, VarTec Telecom, Inc. filed its South Dakota Access Tariff No. 2 for approval. VarTec Telecom, Inc. is petitioning the Commission for an exemption in accordance with ARSD 20:10:27:11 from having to develop intrastate switched access rates based on company specific cost as required by ARSD 20:10:27:07. The company is also requesting a waiver from filing rates based on the cost of all telecommunication companies with less than 100,000 access lines as required by ARSD 20:10:27:12. Ms. Farris recommended that the Commission grant the waivers and allow VarTec Telecom, Inc. to mirror Qwest rates for up to 3 years.
Commissioner Hanson moved to approve the intrastate switched access tariff and grant an exemption from filing company specific cost data and a waiver from having to file rates based on the cost of all telecommunication companies with less than 100,000 access lines and to allow VarTec Telecom, Inc., to mirror Qwest rates for up to 3 years at which time VarTec Telecom, Inc. will be required to petition the Commission for an extension on the rates or provide cost based rates. Chairman Sahr seconded and Commissioner Burg concurred. Motion passed 3-0.
Administration
1. In the Matter of the Implementation of the Federal Communications Commission's Triennial Review Order. (Commission Attorney: Rolayne Ailts Wiest)
Ms. Wiest stated that on February 20, 2003, the Federal Communications Commission (FCC) adopted rules concerning the obligations of incumbent local exchange carriers to make elements of their networks available on an unbundled basis to new entrants. According to the press release issued by the FCC, the FCC found that switching for "business customers served by high-capacity loops such as DS-1 will no longer be unbundled based on a presumptive finding of no impairment. Under this framework, states will have 90 days to re he national finding." It is expected that the written order will be issued shortly. Ms. Wiest recommended that the Commission open two separate dockets, one for the 90 day proceeding and one for the 9 month proceeding and set an intervention time period at this time. Steve Weigler, AT&T stated that we do not know what FCC's order will say yet, and he requested that the Commission wait until FCC's order is issued to open the dockets and set the intervention time period. Mr. Weigler suggested that once FCC's order comes out, the dockets could be opened with an intervention period of 7 days. Commissioner Burg suggested opening the dockets now and directing staff to set the intervention period based on FCC's order. Qwest had no comment.
Commissioner Burg moved to open the two dockets but not establish the intervention time period until the actually filing of FCC's Order. The intervention time periods will be established by the staff after the filing of the FCC's Order Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Commissioner Burg left the meeting.
Telecommunications
Ms. Bjork stated that on April 23, 2003, Horizon Telecom, Inc. filed an application for a Certificate of Authority to provide interexchange intrastate telecommunications services in South Dakota on a resale basis. The applicant has provided the information as requested by staff. Ms. Bjork recommended that the Commission approve Horizon Telecom, Inc.'s Certificate of Authority with restrictions from accepting customer deposits and advance payments and offering prepaid services with an effective date of June 23, 2003.
Chairman Sahr moved to grant Horizon Telecom Inc.'s Certificate of Authority with restrictions from accepting customer deposits and advance payments and offering prepaid services with an effective date of June 23, 2003. Commissioner Hanson seconded. Motion passed 2-0.
Colleen Sevold, Qwest Corporation stated that it is asking the Commission's approval to withdraw the service of Self Healing Alternate Route Protection (SHARP) feature from the tariff. It has had no customers for the optional service for quite sometime and would like to discontinue this service. Mr. Senger recommended that the Commission approve the tariff revision to withdraw the service.
Commissioner Hanson moved to approve the tariff revision in TC03-075. Chairman Sahr seconded. Motion passed 2-0.
Ms. Bjork stated that on April 30, 2003, Dialaround Enterprises Inc. filed an application for a Certificate of Authority to provide intrastate interexchange telecommunications services in South Dakota. The applicant intends to offer outbound and inbound telecommunications services, directory assistance, and calling card services. The applicant has made all staff recommended changes to the tariff. Ms. Bjork recommended that the Commission approve Dialaround Enterprises Inc.'s Certificate of Authority with restrictions from accepting customer deposits and advance payments and offering prepaid services with an effective date of June 29, 2003.
Chairman Sahr moved to grant Dialaround Enterprises Inc.'s Certificate of Authority with restrictions from accepting customer deposits and advance payments and offering prepaid services with an effective date of June 29, 2003. Commissioner Hanson seconded. Motion passed 2-0.
Ms. Bjork stated that on May 9, 2003, X2Comm, Inc. d/b/a DC Communications filed an application for a Certificate of Authority to provide intrastate interexchange telecommunications services in South Dakota. The applicant intends to provide outbound and inbound telecommunications services to both residential and business customers. The applicant does not offer prepaid calling cards or collect customer deposits or advance payments The applicant has made all of staff recommended changes to the tarries. Ms. Bjork recommended that the Commission approve X2Comm, Inc. d/b/a DC Communications' Certificate of Authority with restrictions from accepting customer deposits and advance payments and offering prepaid services with an effective date of July 8, 2003.
Commissioner Hanson moved to grant X2Comm, Inc. d/b/a DC Communications' Certificate of Authority with restrictions from accepting customer deposits and advance payments and offering prepaid services with an effective date of July 8, 2003. Commissioner Hanson seconded. Motion passed 2-0.
CLOSED SESSION.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
