081903

Public Utilities Commission
Capitol Building, 1st floor
500 E. Capitol Ave.
Pierre, SD 57501-5070
Phone: (605) 773-3201

Commission Minutes | previous page

South Dakota Public Utilities Commission Meeting
Tuesday, August 19, 2003 at 1:30 P.M.
Ramada Inn, Room A
Aberdeen, South Dakota

MINUTES OF THE COMMISSION MEETING

Chairman Bob Sahr called the meeting to order. Also present were Vice Chairman Gary Hanson; Commissioner James Burg; Executive Director Pamela Bonrud; Commission Attorneys Rolayne Ailts Wiest and John Smith; Staff Attorney Kelly Frazier; Staff Analysts Bonnie Bjork, Keith Senger, and Harlan Best; and Court Reporter Betsy Johnson.

Also present were Bernie Penie, S& S Communications; Lee Briggs, Kenneth E. Bolzer, and Kenneth Zichrich Jr., Golden West Telecommunications Coop; Nick Vollmuth and Richard Glaser, West River Cooperative Telephone Co.; Larry Hettinger, Vantage Point Solutions; Bill Trake, James Groft, Doug Eidahl, Roger Zastrer, Wilbert Schultz, Betty Schultz, Wendell Rye, Russ Claussen, Duane Jark, Rich Stegelmayer, Mark Witten, and Nancy Larson, James Valley Cooperative Telephone Co.; Scott Waltman, Aberdeen American News; Robert Johnson; Marvel Johnson; Jerry Heiberger, ITC Telecom; Sandy Ringling, Midstate Communications, Inc.; Sue Norvick and Marjorie Norwick, Stockholm-Strandburg Telephone Co.; Peter Rasmusson, Martin Group; Ruth Brodkorb, Gene Kroell, Gerald Koch, LeRoy Dodd, Jeff Kramer, and Daniel T. Briggs, Santel Communications Cooperative; Mike Bultrend, Siegel, Barnett; Darla Pollman Rogers, Riter, Rogers, Wattier & Brown, representing Golden West Telecommunications Coop; Rod Bowar, Kennebec Telephone Company, Denny Law, Sioux Valley Telephone Company; and John Burke, Barker, Wilson, Reynolds & Burke, representing S&S Communications.

Joining the meeting by telephone were Bill Heaston, PrairieWave Telecommunications, Inc.; Stuart Wevik, Black Hills Corporation; Mary Lohnes, Midcontinent Communications; Cindy Grosvenor, TELEC Consulting; Marlene Bennett, Martin Group; Tom Sannes, Delaney, Vander Linden & Delaney, representing S& S Communication; Bob Mercer, Associated Press; Colleen Sevold, Qwest Corporation; Brett Koenecke, May, Adam, Gerdes, and Thompson representing OCMC, Inc.; and Staff Attorney Karen Cremer, Commission Advisor Greg Rislov, Administrative Secretary Tina Douglas, Staff Analysts Michele Farris, James Mehlhaff, and David Jacobson, Public Utilities Commission.

Administration

1. Approval of the Minutes of the Commission Meetings Held on August 4, 2003. (Staff: Tina Douglas.)

Chairman Sahr moved to approve the minutes of the Commission Meeting held on August 4, 2003. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.

Telecommunication

1. TC02-166 - In the Matter of S&S Communications/Alterna-Cell's Compliance with Commission Order

See Transcript for August 19, 2003, 1:30 p.m. Commission Meeting for 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. Also TC02-166.

Chairman Sahr stated that on June 16, 2003, the Commission found that sufficient cause existed to issue an Order for Show Cause and Notice of Hearing and ordered S&S and its owners, Les Sumption and Matt Swearingen, to appear before the Commission on June 30, 2003, to show cause why one or more of the following remedies or penalties should not be imposed upon S&S and its owners:

1. Whether the Certificate of Authority of S&S should be revoked or suspended if S&S is found to have acted in violation of any of the Commission's orders, rules, or state law, pursuant to SDCL 49-31-3, 20:10:24:04.02, 20:10:24:04.03, 20:10:24:04.04;

2. Whether fines or penalties should be imposed if S&S is found to have acted in violation of any of the Commission's orders, rules, or state law, pursuant to SDCL 49-31-7.4, 49-31-38, and 49-31-38.1;

3. Whether an Order to Compel should be issued requiring S&S to produce books and records as provided in SDCL 49-31-7.1;

4. Whether S&S should be ordered to release 800 numbers if requested by the customer that has been assigned the 800 number;

5. Whether the Commission should take action against the bonds and letter of credit issued by Aberdeen finance Corporation;

6. Whether Les Sumption and/or Matt Swearingen should be barred from providing telecommunications services in South Dakota in the future if the Commission determines that they have violated any Commission orders, rules, or state law, pursuant to ARSD 20:10:24:04.02 and 20:10:24:04.04; and

7. Any other appropriate relief that may be granted by the Commission.

The hearing was held as scheduled on June 30, 2003, and was continued until July 2, 2003. At the end of the hearing the Commission unanimously voted to revoke S&S's Certificate of Authority, ordered S&S to release any 800 numbers if requested, and decided to take action against any bonds and the letter of credit issued by Aberdeen Finance Corporation. The Commission took the rest of the issues under advisement.

Chairman Sahr moved that the Commission take the following action: 1) that the Commission assess a civil fine of $13,400.00 against S&S and its owners, Les Sumption and Matt Swearingen; 2) that, at this time, the Commission not issue any orders to compel; and 3) that the owners of S&S, Les Sumption and Matt Swearingen, may not reapply for a Certificate of Authority during their lifetimes, unless otherwise ordered by the Commission. Commissioner Hanson seconded and Commissioner Burg 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 1577 consumer contacts during 2003. Since the last report was prepared for the August 4, 2003, Commission meeting, 89 of these contacts had been received; 68 contacts involved telecommunications services; 11 contacts involved electricity issues; 3 contacts involved natural gas issues; 2 contacts involved cellular phone issues; and 7 contacts involved miscellaneous services not regulated by the PUC. In 2003, 1061 of the 1577 complaints registered have been resolved informally. At this time, 1855 of the 1918 complaints from 2002 have been resolved.

2. CT02-039 In the Matter of the Complaint filed by PrairieWave Community Telephone, Inc. f/k/a Dakota Community Telephone, Inc. and PrairieWave Telecommunications, Inc. f/k/a McLeodUSA Telecom Development, Inc. against Qwest Corporation Regarding Nonpayment of Switched Access Charges, and Other Contract Disputes. (Staff Analyst: Jim Mehlhaff, Staff Attorney: Karen Cremer)

Ms. Cremer recommended that action be deferred.

Chairman Sahr moved that action be deferred. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.

Electric

1. EL01-027 In the Matter of the Filing by Otter Tail Corporation Regarding its Notification of Intent to Apply for a Permit for an Energy Conversion Facility. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)

Ms. Cremer stated that the Commission received a letter from Otter Tail Corporation asking that this docket be closed.

Commissioner Hanson moved to close docket in EL01-027. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.

2. EL03-023 In the Matter of the Joint Request for an Electric Service Territory Boundary Change between Black Hills Power and Black Hills Electric Cooperative, Inc. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)

Mr. Stuart Wevik, stated that Black Hills Power and Black Hills Electric Cooperative filed a joint request for approval of the relocation of an electric service territory line located in Sections 22, 26, and 27, Township 10S, Range 4E, Black Hills Meridian, Fall River County, South Dakota. The proposed electric service territory line is as follows: beginning at the northwestern corner of Section 27; then bear south along the western boundary of Section 27 to the southwestern corner of section 27; then bear east along the southern boundary of Section 27; then continue to bear east for 1/2 mile along the southern boundary of Section 26. Ms. Farris stated that the boundary change should have occurred in 2002. Ms Farris recommended approval of the boundary change.

Commissioner Hanson moved to approve the boundary change in EL03-023. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.

Telecommunications

1. TC03-040 In the Matter of the Unauthorized Long Distance Billing of Customers in the City of Dell Rapids, South Dakota, caused by MSN Corporation d/b/a MSN TV f/k/a WEBTV. (Staff Attorney: Kelly Frazier)

Mr. Frazier stated that MSN Corporation d/b/a MSN TV f/k/a WEBTV (MSN TV) had contacted all its clients in Dell Rapids and paid their long distance charges that they incurred when using MSN TV. MSN TV did not concede jurisdiction. Mr. Frazier recommended closing the docket.

Commissioner Hanson moved to close docket in TC03-040. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.

2. TC03-067 In the Matter of an Order to Show Cause as to why OCMC, Inc. should not be found to be in Violation of the Laws and Regulations of the State of South Dakota. (Staff Attorney: Kelly Frazier)

Mr. Frazier stated the OCMC, Inc. withdrew from the agreement with staff. Mr. Frazier recommended that a hearing be scheduled.

Commissioner Hanson moved to proceed with a hearing. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.

3. In the Matter of the Filing for Approval of Amendments to Agreements in TC03-112, TC03-116, and TC03-117.

TC03-112 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and WaveSent, L.L.C. (Staff Attorney: Kelly Frazier)

TC03-116 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and Black Hills FiberCom, L.L.C. (Staff Attorney: Kelly Frazier)

TC03-117 In the Matter of the Filing for Approval of an Amendment to a Paging Connection Agreement between Qwest Corporation and Page Data. (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 Burg moved to approve the Amendments in TC03-112, TC03-116, and TC03-117. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.

4. TC03-113 In the Matter of the Filing by Northern Valley Communications, LLC for Approval of Revisions to its Intrastate Switched Access Tariff. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)

Ms. Farris stated that on July 16, 2003, Northern Valley Communications (NVC) filed revised pages to NVC's Intrastate Switched Access Tariff No. 1 for Commission approval. Previously, NVC was granted exemption from developing intrastate switched access rates based on company specific costs. NVC's revised tariff rates are based on a statewide average in accordance with ARSD 20:10:27:12 using interim LECA rates. Ms. Farris recommended the revisions to NVC's tariff be approved subject to refund.

Commissioner Burg moved to approve the tariff revisions subject to refund in TC03-113. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.

5. TC03-114 In the Matter of the Application of Yak Communications (America) Inc. for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Bonnie Bjork, Staff Attorney: Kelly Frazier)

Ms. Bjork stated that on July 16, 2003, Yak Communications (America) Inc. submitted an application for a Certificate of Authority to provide interexchange telecommunications services in South Dakota. It will be providing 1+10‑10 casual calling and toll free services. The target market is residential customers in ethnic markets. The applicant is a wholly owned subsidiary of Yak Communications (USA) Inc. and does not have subsidiary historical financial statements. The applicant has requested a waiver from filing financial statements as required by ARSD 20:10:24:02(8). The company has made all staff recommended changes to the tariffs and has agreed to restrictions from accepting customer deposits and advanced payments and offering prepaid services. Ms. Bjork recommended the Commission grant the waiver of the financial statements and approve a Certificate of Authority to Yak Communications (America) Inc. with an effective date of September 15, 2003, with restrictions from offering any prepaid services and from accepting customer deposits and advance payments.

Commissioner Burg moved to approve Yak Communications (America) Inc.'s Certificate of Authority with an effective date of September 15, 2003, with restrictions from offering any prepaid services and from accepting customer deposits and advance payments. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.

6. TC03-118 In the Matter of the Sale by MJD Services Corp. of the Stock of Union Telephone Company, Armour Independent Telephone Company, Including its Wholly Owned Subsidiary Bridgewater-Canistota Independent Telephone Company and Kadoka Telephone Company to Golden West Telephone Properties, Inc. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

Ms. Rogers stated that the sale needs to go through by September 30, 2003. Ms. Cremer recommended that a procedural schedule be set.

Commissioner Burg moved to set a procedural schedule in docket TC03-118. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.

7. In the Matter of the Dockets Requesting Federal Universal Service Support Certification

TC03-119 In the Matter of the Request of Interstate Telecommunications Cooperative, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC03-120 In the Matter of the Request of Roberts County Telephone Cooperative Association and RC Communications, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC03-123 In the Matter of the Request of Kennebec Telephone Company for Certification Regarding its Use of Federal Universal Service Support.

Mr. Best stated that each of these companies filed a request stating how much Universal Service Support it will be receiving in the coming year and also showed estimated expenses. In each docket the expenses exceeded the monies the company will receive for Universal Service Support. In each docket the company stated all the monies it will receive for Universal Service Support will be used in the appropriate manner as required by the FCC. Mr. Best recommended that the Commission approve each docket as filed.

Commissioner Hanson moved that the Commission provide a letter of certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the plan for the use of federal universal services support as proposed in dockets TC03-119, TC03-120, and TC03-123. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.

8. TC03-121 In the Matter of the Filing by PrairieWave Telecommunications, Inc. for Approval of Revisions to its Intrastate Switched Access Tariff. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

Mr. Best explained that on July 31, 2003, PrairieWave Telecommunications, Inc. (PrairieWave) filed to reduce the late payment rate in its Intrastate Access Tariff. Mr. Best recommended approval of revisions to PrairieWave's tariff.

Commissioner Burg moved to approve the tariff revisions in docket TC03-121. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.

9. 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)