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South Dakota Public Utilities Commission Meeting
Tuesday, September 16, 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; Executive Director Pamela Bonrud; Deputy Executive Director Heather Forney; Commission Advisor Greg Rislov; Commission Attorneys Rolayne Ailts Wiest and John Smith; Staff Attorney Karen Cremer; Staff Analysts David Jacobson, Keith Senger, Jim Mehlhaff, Steve Wegman, Harlan Best, and Michele Farris; Court Reporter Cheri Wittler; and Administrative Secretary Tina Douglas.
Also present were Rich Coit, South Dakota Telecommunications Association; and Darla Pollman Rogers, Riter, Rogers, Wattier & Brown, representing LECA.
Joining the meeting by telephone were Marlene Bennett and Don Lee, Martin Group; Colleen Sevold and Tim Goodwin, Qwest Corporation; Talbot Wieczorek, Gunderson, Paul, Goodsell & Nelson representing Western Wireless; John Burke, Barker, Wilson, Reynolds & Burke representing S&S Communications; John Coleman, Olsen-Thielen; Cindy Grosvenor and Wendell Aanerud, TELEC Consulting; Bruce Hanson, Fort Randall Telephone Company and Mt. Rushmore Telephone Company; Mike Bradley, Moss & Barnett representing Fort Randall Telephone Company and Mt. Rushmore Telephone Company; Gordon Dauchy, JSI; Mary Lohnes, Midcontinent Communications; and Bill Heaston, PrairieWave Telecommunications, Inc.
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 1769 consumer contacts during 2003. Since the last report was prepared for the September 2, 2003, Commission meeting, 90 of these contacts had been received; 59 contacts involved telecommunications services; 12 contacts involved electricity issues; 5 contacts involved natural gas issues; 2 contacts involved gas and electric services, 4 contacts involved cellular phone issues; and 8 contacts involved miscellaneous services not regulated by the PUC. In 2003, 1179 of the 1769 complaints registered have been resolved informally. At this time, 1855 of the 1918 complaints from 2002 have been resolved.
Telecommunications
See Transcript of TC02-086 of September 16, 2003, 9:30 a.m. Commission Meeting
Commissioner Hanson moved to grant Fort Randall Telephone Company and Mt. Rushmore Telephone Company's Motion to Dismiss. Chairman Sahr seconded. Motion passed 2-0.
Mr. Best stated that on June 10, 2002, West River Cooperative Telephone Company, Bison, South Dakota, filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association. After a number of data requests and responses, staff and West River Cooperative Telephone Company have reached an agreement for a revenue requirement of $851,995. Mr. Burke stated that he is not sure that any of the switched access rates should go into effect until the appeal time has lapsed or the administrative process has been exhausted. (Mr. Burke's comments are stated for all of the switched access cases). Ms. Rogers stated that these rates are already in effect since July 1, 2003, and there is no stay in effect at this time and believes it is appropriate to proceed. Ms. Cremer stated that Mr. Burke did have a chance to file a stay and did not file one.
Chairman Sahr moved to grant West River Cooperative Telephone Company's Switched Access Revenue Requirement of $851,995. Commissioner Hanson seconded. Motion passed 2-0.
Mr. Senger stated that on June 10, 2002, Vivian Telephone Company, Wall, South Dakota, filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association. Staff and Vivian Telephone Company have reached an agreement for a revenue requirement of $4,305,484.
Chairman Sahr moved to grant Vivian Telephone Company's Switched Access Revenue Requirement of $4,305,484. Commissioner Hanson seconded. Motion passed 2-0.
Mr. Best stated that on June 10, 2002, Sioux Valley Telephone Company, Dell Rapids, South Dakota, filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association. Staff and Sioux Valley Telephone Company have reached an agreement for a revenue requirement of $1,054,355.
Commissioner Hanson moved to grant Sioux Valley Telephone Company's Switched Access Revenue Requirement of $1,054,355. Chairman Sahr seconded. Motion passed 2- 0.
Commissioner Hanson moved that action be deferred. Chairman Sahr seconded. Motion passed 2-0.
Mr. Senger stated that on June 18, 2002, Splitrock Properties, Inc., Garretson, South Dakota, filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association. Staff and Splitrock Properties, Inc. have reached an agreement for a revenue requirement of $402,197.
Chairman Sahr moved to grant Splitrock Properties, Inc.'s Switched Access Revenue Requirement of $402,197. Commissioner Hanson seconded. Motion passed 2-0.
Mr. Senger stated that on June 18, 2002, Splitrock Telecom Cooperative, Inc., Garretson, South Dakota, filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association. Staff and Splitrock Telecom Cooperative, Inc. have reached an agreement for a revenue requirement of $590,560.
Chairman Sahr moved to grant Splitrock Telecom Cooperative, Inc.'s Switched Access Revenue Requirement of $590,560. Commissioner Hanson seconded. Motion passed 2-0.
Mr. Best stated that on June 19, 2002, Midstate Communications, Inc., Kimball, South Dakota, filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association. Staff and Midstate Communications, Inc., have reached an agreement for a revenue requirement of $1,592,684.
Chairman Sahr moved to grant Midstate Communications, Inc.'s Switched Access Revenue Requirement of $1,592,684. Commissioner Hanson seconded. Motion passed 2-0.
Commissioner Hanson moved that action be deferred. Chairman Sahr seconded. Motion passed 2-0.
Mr. Senger stated that on June 20, 2002, Baltic Telecom Cooperative, Baltic, South Dakota, filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association. Staff and Baltic Telecom Cooperative, have reached an agreement for a revenue requirement of $429,149.
Chairman Sahr moved to grant Baltic Telecom Cooperative's Switched Access Revenue Requirement of $429,149. Commissioner Hanson seconded. Motion passed 2-0.
Mr. Senger stated that on June 20, 2002, East Plains Telecom, Inc., Baltic, South Dakota, filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association. Staff and East Plains Telecom, Inc., have reached an agreement for a revenue requirement of $335,462.
Chairman Sahr moved to grant East Plains Telecom, Inc.'s Switched Access Revenue Requirement of $335,462. Commissioner Hanson seconded. Motion passed 2-0.
Mr. Best stated that on June 20, 2002, Sanborn Telephone Cooperative and SANCOM, Inc., Woonsocket, South Dakota, filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association. Staff and Sanborn Telephone Cooperative and SANCOM, Inc. have reached an agreement for a revenue requirement of $1,426,546.
Chairman Sahr moved to grant Sanborn Telephone Cooperative and SANCOM, Inc.'s Switched Access Revenue Requirement of $1,426,546. Commissioner Hanson seconded. Motion passed 2-0.
Commissioner Hanson moved that action be deferred. Chairman Sahr seconded. Motion passed 2-0.
Commissioner Hanson moved that action be deferred. Chairman Sahr seconded. Motion passed 2-0.
Mr. Best stated that on June 27, 2002, Union Telephone Cooperative, Hartford, South Dakota, filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association. Staff and Union Telephone Cooperative have reached an agreement for a revenue requirement of $383,347.
Chairman Sahr moved to grant Union Telephone Cooperative's Switched Access Revenue Requirement of $383,347. Commissioner Hanson seconded. Motion passed 2-0.
Commissioner Hanson moved that action be deferred. Chairman Sahr seconded. Motion passed 2-0.
Mr. Senger stated that on June 27, 2002, Kennebec Telephone Company, Kennebec, South Dakota, filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association. Staff and Kennebec Telephone Company, have reached an agreement for a revenue requirement of $438,459.
Chairman Sahr moved to grant Kennebec Telephone Company's Switched Access Revenue Requirement of $438,459. Commissioner Hanson seconded. Motion passed 2-0.
Mr. Best stated that on June 27, 2002, Beresford Municipal Telephone Company, Beresford, South Dakota, filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association. Staff and Beresford Municipal Telephone Company have reached an agreement for a revenue requirement of $207,110.
Chairman Sahr moved to grant Beresford Municipal Telephone Company's Switched Access Revenue Requirement of $207,110. Commissioner Hanson seconded. Motion passed 2-0.
Commissioner Hanson moved that action be deferred. Chairman Sahr seconded. Motion passed 2-0.
Commissioner Hanson moved that action be deferred. Chairman Sahr seconded. Motion passed 2-0.
Mr. Senger stated that on July 1, 2002, Roberts County Telephone Cooperative Association and RC Communications, Inc., New Effington, South Dakota, filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association. Staff and Roberts County Telephone Cooperative Association and RC Communications, Inc., have reached an agreement for a revenue requirement of $912,889.
Chairman Sahr moved to grant Roberts County Telephone Cooperative Association and RC Communications, Inc.'s Switched Access Revenue Requirement of $912,889. Commissioner Hanson seconded. Motion passed 2-0.
Mr. Senger stated that on July 1, 2002, Tri- County Telecom, Inc., Emery, South Dakota, filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association. Staff and Tri- County Telecom, Inc., have reached an agreement for a revenue requirement of $199,527.
Chairman Sahr moved to grant Tri- County Telecom, Inc.'s Switched Access Revenue Requirement of $199,527. Commissioner Hanson seconded. Motion passed 2-0.
Commissioner Hanson moved that action be deferred. Chairman Sahr seconded. Motion passed 2-0.
Ms Farris stated that Dogstar Telephone Company has submitted an application for a Certificate of Authority in accordance with the administrative rules of South Dakota. Dogstar intends to provide local exchange service through the resale of other carrier's facilities and network elements. Dogstar intends to offer its services initially in the territory served by Qwest Corporation. It has made all staff recommended changes to the tariff. Dogstar has submitted a $25,000 surety bond. Ms. Farris recommended the Commission approve the Certificate of Authority for local exchange services for Dogstar Telephone Company with the requirement it maintain a $25,000 surety bond, and comply with the rural safeguards.
Chairman Sahr moved to grant a Certificate of Authority to Dogstar Telephone Company subject to rural safeguards and subject to a continuous $25,000 surety bond. Commissioner Hanson seconded. Motion passed 2-0.
Ms. Farris stated that Capsule Communications submitted an application for a Certificate of Authority on June 20, 2003. During the review process staff requested the company file its annual reports and pay the gross receipts tax. Ms. Farris took over the docket in September and sent a letter requesting immediate payment of the gross receipts tax or denial of the Certificate of Authority application. The company paid the gross receipts tax on September 12, 2003. However, Capsule Communications had its Certificate of Authority revoked in December 2002, for failure to pay gross receipts tax and it was ordered to return its Certificate of Authority at that time. According to ARSD 20:10:24:04.04 which states "If the commission revokes a certificate of authority, the named holder of the certificate of authority may not reapply for a Certificate of Authority for at least one year after the date of revocation, unless the commission determines that other action is more appropriate." Ms. Farris contacted Capsule Communications, Inc. and explained ARSD 20:10:24:04.04. Ms. Farris asked if it would rather submit a letter of withdrawal. If not, Ms. Farris would recommend to the Commission that it deny its Certificate of Authority based on ARSD 20:10:24:04.04. Ms. Farris received a letter of withdrawal from Capsule Communications, Inc. on September 16, 2003. Ms. Farris recommended that the Commission accept Capsule Communications, Inc.'s letter of withdrawal and close the docket.
Commissioner Hanson moved to accept Capsule Communications, Inc.'s letter of withdrawal and close the docket. Chairman Sahr seconded. Motion passed 2-0.
Ms. Cremer stated that the Amendment has been properly filed, has been properly executed and do not appear to contain discriminatory provisions. No comments were filed and Ms. Cremer recommended approval of the Amendment.
Commissioner Hanson moved to approve the Amendment in TC03-115. Chairman Sahr seconded. Motion passed 2-0.
27. In the Matter of the Filing for Approval of Reciprocal Transport and Termination Agreements in TC03-157 and TC03-166.
Ms. Cremer stated that the Agreements have been properly filed, have been properly executed and do not appear to contain discriminatory provisions. No comments were filed and Ms. Cremer recommended approval of the Agreements.
Commissioner Hanson moved to approve the Agreements in TC03-157 and TC03- 166. Chairman Sahr seconded. Motion passed 2-0.
Ms. Cremer stated that the Agreement has been properly filed, has been properly executed and do not appear to contain discriminatory provisions. No comments were filed and Ms. Cremer recommended approval of the Agreement.
Commissioner Hanson moved to approve the Agreement in TC03-165. Chairman Sahr seconded. Motion passed 2-0.
Mr. Coit stated that South Dakota Telecommunications Association (SDTA) had filed a letter with the Commission requesting access to information which it felt was not appropriately designated confidential information. Mr. Coit stated that SDTA believes that Western Wireless Corporation and SDTA are working through this issue and do not need a deferral on the certification issue. Mr. Wieczorek, representing Western Wireless, agreed with Mr. Coit. Ms. Wiest recommended that no action is required for the procedural schedule. Mr. Best recommended that the Commission should 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 TC03-158.
Commissioner Hanson moved that the Commission take no action on the procedural schedule and also 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 docket TC03-158. Chairman Sahr seconded. Motion passed 2-0.
30. In the Matter of the Establishment of Switched Access Revenue Requirements for Dockets TC03-100, TC03-101, TC03-103, TC03-104, TC03-105, TC03-106, TC03-107, TC03-108, TC03-111.
Ms. Forney stated that under the administrative rules the Commission can assess a filing fee not to exceed $100,000. Ms. Forney recommended that each of the companies listed above be assessed a filing fee not to exceed $100,000, with an initial deposit of $1,000.
Chairman Sahr moved to assess a filing fee not to exceed $100,000 with an initial deposit of $1,000 in TC03-100, TC03-101, TC03-103, TC03-104, TC03-105, TC03-106, TC03- 107, TC03-108, and TC03-111. Commissioner Hanson seconded. Motion passed 2-0.
31. In the Matter of the Dockets Requesting Federal Universal Service Support Certification
Mr. Best stated that each of these companies filed a request stating how much estimated Universal Service Support it may receive in the coming year and also showed estimated expenses. In each docket the expenses exceeded the monies the company estimated to 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.
Chairman Sahr 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 TC03-161, TC03-162, TC03-163, TC03-164, TC03-170, TC03-171, TC03-172, and TC03-174. Commissioner Hanson seconded. Motion passed 2-0.
Announcements
Chairman Sahr announced and welcomed Deb Gregg as a new Consumer Representative for the Public Utilities Commission.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
