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South Dakota Public Utilities Commission Meeting
Tuesday, July 15, 2003 at 9:30 A.M.
State Capitol 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 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, and Michele Farris; Mallori Barnett, Intern; and Administrative Secretary Tina Douglas.

Also present were David Gerdes, May, Adam, Gerdes & Thompson, representing Midcontinent Communications; John Brown, Riter, Rogers, Wattier & Brown, representing Northern Valley Communications, LLC, and Midstate Telecom Inc.; and Greg Dean, South Dakota Telecommunications Association.

Joining the meeting by telephone were Linn Evans and Kyle White, Black Hills FiberCom, LLC; Matt McCaulley, McCaulley Law Office, representing PrairieWave Telecommunications, Inc.; Mary Lohnes and Tom Simmons, Midcontinent Communications; Tom Welk, Boyce, Greenfield, Pashby & Welk LLP, representing Qwest Corporation; Colleen Sevold, Tim Goodwin, and Larry Toll, Qwest Corporation; Darla Rogers, Riter, Rogers, Wattier & Brown, representing Northern Valley Communications, LLC, and Midstate Telecom Inc.; and Pat Mastel, PrairieWave Telecommunications, Inc.

Administration

1. Approval of the Minutes of the Ad Hoc Meetings Held on June 13, 2003, June 23, 2003, July 7, 2003, and July 9, 2003, and the Commission Meeting Held and July 1, 2003. (Staff: Tina Douglas.)

Commissioner Hanson moved to approve the minutes of the Ad Hoc Meetings Held on June 13, 2003, June 23, 2003, July 7, 2003, and July 9, 2003, and the Commission Meeting Held on July 1, 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 had received a total of 1366 consumer contacts during 2003. Since the last report was prepared for the June 30, 2003, Commission meeting, 122 of these contacts had been received; 101 contacts involved telecommunications services; 8 contacts involved electricity issues; 7 contacts involved natural gas issues; 3 contacts involved cellular phone issues; and 4 contacts involved miscellaneous services not regulated by the PUC. In 2003, 903 of the 1366 complaints registered have been resolved informally. At this time, 1855 of the 1918 complaints from 2002 have been resolved. The commission asked Mr. Mehlhaff how may of these complaints are related to S&S Communications. Mr. Mehlhaff stated that 288 were complaints against S&S Communications.

2. CT02-017 In the Matter of the Complaint filed by Quality Inn, Rapid City, South Dakota, against McLeodUSA Telecommunications Services, Inc. Regarding Failure to Provide Service. (Staff Analyst: Jim Mehlhaff, Staff Attorney: Karen Cremer)

Ms. Cremer stated that a Stipulation for Dismissal was filed on July 10, 2003. Staff recommended that the complaint be dismissed and the docket closed.

Chairman Sahr moved to dismiss the complaint and close the docket in CT02-017. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.

Electric

1. EL03-021 In the Matter of the Filing for Approval of a Consent and Agreement for Electric Service in Assigned Territory of Another Electric Supplier between NorthWestern Energy and Dakota Energy Cooperative, Inc. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)

Ms. Farris stated that NorthWestern Energy and Dakota Energy Cooperative filed a Joint Request for an Electric Service Territory Exception. Mr. and Mrs. Larry Picek requested the release from Dakota Energy in order for NorthWestern to provide service for a seasonal cabin. The area to be served by NorthWestern is located along SD Hwy 37 approximately one mile north of the City of Huron. NorthWestern has a single phase overhead line located in a 10 foot wide easement approximately 100 feet west of the SW corner of the area requested to be released. Dakota Energy's closest power line is approximately 330 feet North of the area. The parties have agreed the release is specifically limited to load and square feet of the seasonal cabin. Both parties believe this exchange will promote the efficient and economical use of their respective electric systems. Ms. Farris stated that the service rights exception is in the public interest and recommended the commission approve the Consent and Agreement for Electric Service in Assigned Territory of Another Electric Supplier.

Commissioner Burg moved for approval of the service rights exception between NorthWestern Energy and Dakota Energy Cooperative in EL03-021. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.

Telecommunications

1. TC03-057 In the Matter of the Application of Qwest Corporation to Reclassify Local Exchange Services as Fully Competitive. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

See Transcript of July 15, 2003, 1:30 p.m. Commission Meeting of TC03-057

Chairman Sahr moved that PrairieWave's Motion to Dismiss be denied on the grounds that a general issue of fact exists as to whether Qwest currently serves more than 200,000 lines in South Dakota. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.


Chairman Sahr moved to grant the Second Motions for Protective Order of Midcontinent, Northern Valley Communications and Black Hills seeking relief from having to respond to Qwest's Interrogatories (Second Set) Nos. 1(a), 1(b) and 1(c), to grant that part of Midstate's Second Motion for Protective Order seeking relief from having to respond to Interrogatories (Second Set) Nos. 1(a), 1(b) and 1(c), and PrairieWave's Second Motion for Protective Order seeking relief from having to respond to Interrogatories (Second Set) Nos. 4(a), 4(b) and 4(c). Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.

Chairman Sahr moved to defer Midstate's Motion for Protective Order with respect to Request for Production No 1 (Second Set) in TC03-057. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.

2. TC03-091 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and McLeodUSA Telecommunications Services, Inc. (Staff Attorney: Kelly Frazier)

Mr. Frazier stated that the Amendment has been properly filed, has been properly executed and does not appear to contain discriminatory provisions, no comments were filed, and recommended approval to the Amendment.

Commissioner Hanson moved to approve the Amendment in TC03-091. Chairman Sahr seconded and Commissioner Burg concurred. Motion passed 3-0.

3. TC03-095 In the Matter of the Filing by Qwest Corporation for Approval of Revisions to its Exchange and Network Services Tariff. (Staff Analyst: Keith Senger, Staff Attorney: Kelly Frazier)

Larry Toll, Qwest Corporation (Qwest) stated that Qwest had filed a revision to its South Dakota Exchange and Network Services Tariff. These revisions increase the Federal Telephone Lifeline Plan Credit from $7.75 to $8.25. Mr. Senger recommended approval of the tariff revision in TC03-095.

Commissioner Burg moved for approval of the tariff revision in TC03-095. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.

4. TC03-096 In the Matter of the Filing for Approval of a Reciprocal Transport and Termination Agreement between PrairieWave Telecommunications, Inc. and WWC License L.L.C. (Staff Attorney: Kelly Frazier)

Mr. Frazier stated that the Agreement has been properly filed, has been properly executed and does not appear to contain discriminatory provisions, no comments were filed, and recommended approval of the Agreement.

Chairman Sahr moved to approve the Agreement in TC03-096. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.

Rule Making

1. In the Matter of the Consideration and Adoption of Administrative Rules to Establish the Operation of the South Dakota Do Not Call Register. (Staff Analyst: Bonnie Bjork)

Ms. Bjork stated a hearing was held on this matter on July 1, 2003. Following the hearing, the Commission recommended amending the proposed rules and approving them at the next Commission Meeting. If the rules are filed on August 6, 2003, the rules will be final on August 26, 2003.

Chairman Sahr moved to approve the amended proposed rules of the South Dakota Do Not Call Register. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.

Meeting adjourned.

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Tina Douglas
Administrative Secretary