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South Dakota Public Utilities Commission Meeting
Monday, August 4, 2003 at 1:30 P.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 Executive Director Pamela Bonrud; Commission Advisor Greg Rislov; Commission Attorneys Rolayne Ailts Wiest and John Smith; Staff Attorneys Karen Cremer and Kelly Frazier; Staff Analysts David Jacobson, Bonnie Bjork, Keith Senger, Harlan Best, and Michele Farris; Transportation/Warehouse Director Bob Knadle; Court Reporter Cheri Wittler; and Administrative Secretary Tina Douglas.

Also present were Brett Koenecke, May, Adam, Gerdes & Thompson, representing Midcontinent Communications and MCI WorldCom; Darla Pollman Rogers, Riter, Rogers, Wattier & Brown, representing Northern Valley Communications, LLC, Midstate Telecom Inc., and LECA; and Rich Coit, South Dakota Telecommunications Association.

Joining the meeting by telephone were Vice Chairman Gary Hanson; David Saville, Martin Group; Susan Travis, MCI WorldCom; Kyle White, Black Hills Corporation; 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; Tim Goodwin and Larry Toll, Qwest Corporation; Ben Dickens, representing LECA; Cindy Grosvenor, Dale Anson, and Wendell Aanerud, TELEC Consulting; John Coleman, Olsen - Thielen; Doug Eidahl, Northern Valley Communications; Christi DeWitt, Vantage Point Solutions; and John Burke, Barker, Wilson, Reynolds & Burke, representing S& S Communications.

Administration

1. Approval of the Approval of the Minutes of the Commission Meeting Held on July 15, 2003.

Commissioner Hanson moved to approve the minutes of the Commission Meeting held on July 15, 2003. Chairman Sahr seconded. Motion passed 2-0.

Consumer Issues

1. Status Report on Consumer Utility Inquiries and Complaints Received by the Commission. (Consumer Affairs: Jim Mehlhaff.)

Mr. Frazier reported for Mr. Mehlhaff that the Commission had received a total of 1488 consumer contacts during 2003. Since the last report was prepared for the July 15, 2003, Commission meeting, 122 of these contacts had been received; 82 contacts involved telecommunications services; 21 contacts involved electricity issues; 6 contacts involved natural gas issues; 2 contacts involved cellular phone issues; and 10 contacts involved miscellaneous services not regulated by the PUC. In 2003, 998 of the 1366 complaints registered have been resolved informally. At this time, 1855 of the 1918 complaints from 2002 have been resolved.
Telecommunications

1. In the Matter of the Establishment of Switched Access Revenue Requirements in TC02-052, TC02-053, TC02-054, TC02-058, TC02-064, TC02-065, TC02-066, TC02- 067, TC02-068, TC02-071, TC02-072, TC02-073, TC02-074, TC02-076, TC02-077, TC02-078, TC02-079, TC02-080, TC02-087, TC02-088, TC02-089, TC02-090, and TC02-091.

TC02-052 In the Matter of the Establishment of Switched Access Revenue Requirement for West River Cooperative Telephone Company. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC02-053 In the Matter of the Establishment of Switched Access Revenue Requirement for Interstate Telecommunications Cooperative, Inc. (Staff Analyst: Heather Forney, Staff Attorney: Karen Cremer)

TC02-054 In the Matter of the Establishment of Switched Access Revenue Requirement for Vivian Telephone Company. (Staff Analyst: Keith Senger, Staff Attorney: Karen Cremer)

TC02-058 In the Matter of the Establishment of Switched Access Revenue Requirement for Sioux Valley Telephone Company. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC02-064 In the Matter of the Establishment of Switched Access Revenue Requirement for Sully Buttes Telephone Cooperative, Inc. (Staff Analyst: Heather Forney, Staff Attorney: Karen Cremer)

TC02-065 In the Matter of the Establishment of Switched Access Revenue Requirement for Splitrock Properties, Inc. (Staff Analyst: Keith Senger, Staff Attorney: Karen Cremer)

TC02-066 In the Matter of the Establishment of Switched Access Revenue Requirement for Splitrock Telecom Cooperative, Inc. (Staff Analyst: Keith Senger, Staff Attorney: Karen Cremer)

TC02-067 In the Matter of the Establishment of Switched Access Revenue Requirement for Midstate Communications, Inc. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC02-068 In the Matter of the Establishment of Switched Access Revenue Requirement for McCook Cooperative Telephone Company. (Staff Analyst: Heather Forney, Staff Attorney: Karen Cremer)

TC02-071 In the Matter of the Establishment of Switched Access Revenue Requirement for Baltic Telecom Cooperative. (Staff Analyst: Keith Senger, Staff Attorney: Karen Cremer)

TC02-072 In the Matter of the Establishment of Switched Access Revenue Requirement for East Plains Telecom, Inc. (Staff Analyst: Keith Senger, Staff Attorney: Karen Cremer)

TC02-073 In the Matter of the Establishment of Switched Access Revenue Requirement for Sanborn Telephone Cooperative and SANCOM, Inc. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC02-074 In the Matter of the Establishment of Switched Access Revenue Requirement for Valley Telecommunications Cooperative Association. (Staff Analyst: Heather Forney, Staff Attorney: Karen Cremer)

TC02-076 In the Matter of the Establishment of Switched Access Revenue Requirement for Brookings Municipal Telephone Company. (Staff Analyst: Heather Forney, Staff Attorney: Karen Cremer)

TC02-077 In the Matter of the Establishment of Switched Access Revenue Requirement for Union Telephone Company. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC02-078 In the Matter of the Establishment of Switched Access Revenue Requirement for Bridgewater-Canistota Independent Telephone Company. (Staff Analyst: Heather Forney, Staff Attorney: Karen Cremer)

TC02-079 In the Matter of the Establishment of Switched Access Revenue Requirement for Kennebec Telephone Company. (Staff Analyst: Keith Senger, Staff Attorney: Karen Cremer)

TC02-080 In the Matter of the Establishment of Switched Access Revenue Requirement for Beresford Municipal Telephone Company. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC02-087 In the Matter of the Establishment of Switched Access Rates for DTG Community Telephone. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC02-088 In the Matter of the Establishment of Switched Access Revenue Requirement for Roberts County Telephone Cooperative Association and RC Communications, Inc. (Staff Analyst: Keith Senger, Staff Attorney: Karen Cremer)

TC02-089 In the Matter of the Establishment of Switched Access Revenue Requirement for Tri-County Telcom, Inc. (Staff Analyst: Keith Senger, Staff Attorney: Karen Cremer)

TC02-090 In the Matter of the Establishment of Switched Access Rates for the Local Exchange Carriers Association. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC02-091 In the Matter of the Establishment of Switched Access Rates for South Dakota Network, LLC. Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

See Transcript of August 4, 2003, 1:30 p.m. Commission Meet of TC002-052, TC02-053, TC02-054, TC02-058, TC02-064, TC02-065, TC02-66, TC02-067, TC02068, TC02-071, TC02-072, TC02-073, TC02-074, TC02-076, TC02-077, TC02-078, TC02-079, TC02-080, TC02-087, TC02-088, TC02-089, TC02-090, and TC02-091

Chairman Sahr moved that the Motion to Dismiss be treated as a Motion for Summary Judgment or alternatively as a Motion to Dismiss and requested that counsel prepare the appropriate 10-day notice and notice will set forth what is expected of anyone involved in the case. Commissioner Hanson seconded. Motion passed 2-0.

Chairman Sahr moved that the extension of time be granted for discovery until the issue of whether or not to dismiss S&S as an intervenor is resolved. Commissioner Hanson seconded. Motion passed 2-0.

2. 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 August 4, 2003, 1:30 p.m. Commission MeetingĀ  of TC03-057

Chairman Sahr moved to defer action on Qwest's Motion to Strike and Exclude Testimony. Commissioner Hanson seconded. Motion passed 2-0.

3. In the Matter of the Filing for Approval of Amendments to Agreements in TC03-092, TC03-093, and TC03-102.

TC03-092 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and TW Wireless, L.L.C. (Staff Attorney: Kelly Frazier)

TC03-093 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)

TC03-102 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and MCIMetro Access Transmission Services, LLC. (Staff Attorney: Kelly Frazier)

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

Commissioner Hanson moved to approve the Amendments in TC03-092, TC03- 093, and TC03-102. Chairman Sahr seconded. Motion passed 2-0.

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)

This docket was approved at the last commission meeting and no action is required by the Commission.

5. TC03-097 In the Matter of the Petition of Midcontinent Communications for a Waiver of ARSD 20:10:33:30. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

Brett Koenecke stated that Midcontinent Communications had no objection to South Dakota Telecommunications Association and Northern Valley Communications, L.L.C. 's Petitions to Intervene.

Commissioner Hanson moved to grant intervention to South Dakota Telecommunications Association and Northern Valley Communications, L.L.C. in TC03- 097. Chairman Sahr seconded. Motion passed 2-0.

Chairman Sahr moved to defer action on Midcontinent Communications' Petition for Waiver. Commissioner Hanson seconded. Motion passed 2-0.

6. TC03-099 In the Matter of the Filing by Z-Tel Communications, Inc. for Approval of Revisions to its Intrastate Switched Access Tariff. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)

Ms. Farris stated that on July 27, 2001, the Commission approved Z-Tel's SD Tariff No. 3 and granted them a waiver from developing company specific cost-based switched access rates for a period of three years. Z-Tel is requesting in this filing a waiver from ARSD 20:10:27:07 and from the use of the formula in ARSD 20:10:27:12, so as to mirror the Qwest Corporation tariffed access rates. Z-Tel has adopted rates for local switching, local transport, carrier common line, and 800 database query which are equivalent to those rates approved for Qwest in their tariff. Ms. Farris recommended the Commission grant Z-Tel's request for a waiver from ARSD 20:10:27:07 and 20:10:27:12 requiring them to use the average of the cost companies so as to mirror Qwest's rate and the revisions to SD Tariff No. 3 for the remainder of the three years approved in TC01-053.

Commissioner Hanson moved to approve Z-Tel's request for a waiver from ARSD 20:10:27:07 and 20:10:27:12 in TC03-099. Chairman Sahr seconded. Motion passed 2-0.

7. TC03-109 In the Matter of the Application of Motion Telecom, Inc. for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Bonnie Bjork, Staff Attorney: Karen Cremer)

Ms. Bjork stated that Motion Telecom, Inc. had filed an application for a Certificate of Authority to provide resold interexchange services, including prepaid calling card services to residential and commercial customers in South Dakota for direct transmission and reception of voice, data and other types of telecommunications. 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 approval of a Certificate of Authority to Motion Telecom, Inc. with an effective date of September 5, 2003. Commissioner Hanson asked if the $25,000.00 bond was adequate. Ms. Bjork indicated that the bond amount was adequate at this time.

Chairman Sahr moved to grant Motion Telecom Inc.'s Certificate of Authority with an effective date of September 5, 2003, subject to a continuous $25,000.00 surety bond. Commissioner Hanson seconded. Motion passed 2-0.

Administration

1. In the Matter of the Commission Hiring an Analyst for its Involvement in Certain Issues Before the Federal Energy Regulatory Commission Regarding Williston Basin Interstate Pipeline. (Staff Analyst: Dave Jacobson, Staff Attorney: Karen Cremer)

Mr. Jacobson stated staff is proposing Al Clark be hired to perform duties as an analyst before the Federal Energy Regulatory Commission on matters regarding Williston Basin's most recently filed rate case. The Montana Consumer Counsel and the Montana Public Service Commission are again offering to share in the cost of this analysis of Williston Basin's compliance filing. The proposed contract amount for the South Dakota share is $1,500. Chairman Sahr asked if North Dakota and Wyoming are also sharing the cost and Mr. Jacobson indicated that neither state was. Chairman Sahr suggested that a letter be written to North Dakota and Wyoming regarding this.

Commissioner Hanson moved to approve entering into a contract with Al Clark, in an amount not to exceed $1,500. Chairman Sahr seconded. Motion passed 2-0.

Meeting adjourned.

___________________________________
Tina Douglas
Administrative Secretary