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South Dakota Public Utilities Commission Meeting
Thursday, October 16, 2003 at 1:30 P.M.
Crossroads Hotel
Huron, 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; Staff Analysts Keith Senger, Steve Wegman, Harlan Best, and Sue Schaefer.
Also present were Jose Jungerman, Joe Schnetzer, Melanie Kohlmeyer, Kortney Hastings, Jeremy Jungerman, Betsy Kubal, Ashley Ehrk, Jessica Schroeder, Charnelle Scheel, Gena Dubois, Andrew Fink, Aaron Boomsma, Crystal VanOverschelde, Amber Ehrk, Amanda Larghe, Michael Eggleston, Jamie Salisbury, and Jenny Getscher, Wolsey High School; Warren Lotsberg, Jeff Decker, Brenda Dreyer, and Tom Hansen, NorthWestern Energy; and K.O. Kaulk, Beadle County Commissioner.
Joining the meeting by telephone were Marlene Bennett, Martin Group; Colleen Sevold, Tom Dethlefs and Tim Goodwin, Qwest Corporation; Talbot Wieczorek, Gunderson, Paul, Goodsell & Nelson representing MBIA; John Coleman, Olsen-Thielen; Cindy Grosvenor and Wendell Aanerud, TELEC Consulting; Bruce Hanson, Fort Randall Telephone Company and Mt. Rushmore Telephone Company; Mary Lohnes, Midcontinent Communications; Thor Nelson, Holland and Hart, representing AT&T; Staff Analysts David Jacobson, Jim Mehlhaff, and Michele Farris, Staff Attorneys Kelly Frazier and Karen Cremer, Commission Attorney John Smith, Public Utilities Commission; David Gerdes, May, Adam, Gerdes & Thompson, representing Montana- Dakota Utilities and MCI WorldCom; Tamie Aberle, Montana-Dakota Utilities Co.; Darla Rogers, Riter, Rogers, Mayer, Hofer, Wattier & Brown, representing LECA; and Karen Huizenga, MidAmerican Energy Company;
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 2024 consumer contacts during 2003. Since the last report was prepared for the September 16, 2003, Commission meeting, 255 of these contacts had been received; 130 contacts involved telecommunications services; 32 contacts involved electricity issues; 5 contacts involved natural gas issues; 12 contacts involved gas and electric services, 9 contacts involved cellular phone issues; 36 contacts involved do not call registry; and 31 contacts involved miscellaneous services not regulated by the PUC. In 2003, 1404 of the 2024 complaints registered have been resolved informally.
2. In the Matter of Dismissing Dockets CN03-002 and CT03-131
Mr. Mehlhaff stated that the Complainants were satisfied and recommended that the Commission dismiss the complaints and close the dockets.
Commissioner Burg moved to dismiss complaints and close dockets in CN03-002 and CT03-131. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Electric
Mr. Jacobson stated that an application was filed by Otter Tail Power Company for approval to revise its tariffed Summary List of Contracts with Deviations. The existing contract with the City of Veblen will expire on November 3, 2003. Mr. Jacobson stated that the new agreement does not contain any deviations from Otter Tail's currently filed tariff and therefore reference to a contract with the City of Veblen will be removed from the Summary List of Contracts with Deviations. Mr. Jacobson recommended approval of the tariff revisions.
Commissioner Burg moved for approval of the tariff revisions in EL03-025. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Jacobson stated that an application was filed by Otter Tail Power Company for approval to revise its tariffed Summary List of Contracts with Deviations. The existing contract with the City of Clair City will expire on November 1, 2003. Mr. Jacobson stated that the new agreement does not contain any deviations from Otter Tail's currently filed tariff and therefore reference to a contract with the City of Clair City will be removed from the Summary List of Contracts with Deviations. Mr. Jacobson recommended approval of the tariff revisions.
Commissioner Burg moved for approval of the tariff revisions in EL03-026. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Natural Gas
Mr. Jacobson stated that an application was filed by NorthWestern Energy to update its fuel retention percentage for natural gas transportation service. NorthWestern Energy's tariff provides that the fuel retention percentage be adjusted annually with the updated percentage to be effective October 1 of each year. Mr. Jacobson recommended approval of the tariff revisions.
Commissioner Burg moved for approval of the tariff revisions in NG03-004. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Tamie Aberle, Montana-Dakota Utilities Co., explained the application of Montana-Dakota Utilities Co. for approval of a contract with Deviations with Merillat Corporation. Merillat Corporation is currently served pursuant to a Contract with Deviations approved by the Commission in Docket NG98-002 which will expire on October 31, 2003. The new contract provides for service to continue to Merillat until October 31, 2004. Tariff revisions reflecting the new contract are included in the filing. Tamie Aberle also stated that Montana-Dakota is asking for approval with less than 30 days notice. Mr. Jacobson stated that the Merillat Corporation might not be a customer of Montana-Dakota if this contract was not in place, which would pass costs onto other customers. Mr. Jacobson recommended approval of the Contract with Deviations and related tariff revisions on less than 30 days notice.
Commissioner Burg moved for approval of the Contract with Deviations and related tariff revision in NG03-005 with less than 30 days notice. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Telecommunications
Ms. Forney stated that on June 18, 2002, Sully Buttes Telephone Cooperative, Inc., 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 Sully Buttes Telephone Cooperative, Inc., have reached an agreement for a revenue requirement of $4,076,357.
Chairman Sahr moved to grant Sully Buttes Telephone Cooperative, Inc.'s Switched Access Revenue Requirement of $4,076,357. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Forney stated that on June 19, 2002, McCook Cooperative Telephone Company 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 McCook Cooperative Telephone Company have reached an agreement for a revenue requirement of $997,130.
Chairman Sahr moved to grant McCook Cooperative Telephone's Switched Access Revenue Requirement of $997,130. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Forney stated that on June 20, 2002, Valley Telecommunications Cooperative Association, Herreid, 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 Valley Telecommunications Cooperative Association have reached an agreement for a revenue requirement of $1,300,955.
Chairman Sahr moved to grant Valley Telecommunications Cooperative Association's Switched Access Revenue Requirement of $1,300,955. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Forney stated that on June 26, 2002, Brookings Municipal Telephone Company 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 Brookings Municipal Telephone Company have reached an agreement for a revenue requirement of $1,659,745.
Chairman Sahr moved to grant Brookings Municipal Telephone Company's Switched Access Revenue Requirement of $1,659,745. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Forney stated that on June 27, 2002, Bridgewater-Canistota Telephone Company 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 Bridgewater-Canistota Telephone Company have reached an agreement for a revenue requirement of $240,442.
Chairman Sahr moved to grant Bridgewater-Canistota Telephone Company's Switched Access Revenue Requirement of $240,442. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Forney stated that on July 1, 2002, Fort Randall Telephone Company and Mount Rushmore Telephone Company filed a switched access cost study developing switched access rates that will be used by each company. Staff and Fort Randall Telephone Company and Mount Rushmore Telephone Company have reached an agreement for a revenue requirement of $1,074,582.
Chairman Sahr moved to grant Fort Randall Telephone Company and Mount Rushmore Telephone Company's Switched Access Revenue Requirement of $1,074,582. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Mr. Best stated that on July 1, 2002, South Dakota Network, LLC (SDN) filed a switched access separations study, pursuant to the rules of the Commission. Revised pages to the SDN Tariff were filed to implement the change in revenue requirement. Staff and SDN have reached an agreement for a local switching rate of $0.0080.
Chairman Sahr moved to grant South Dakota Network, LLC's local switching rate of $0.0080. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Farris stated that on June 12, 2003, BAK Communications, LLC (BAK) had submitted an application for a Certificate of Authority to provide competitive local exchange services to residential customers in South Dakota using a combination of the resale platform and the unbundled network elements provided by the incumbent local exchange carriers. Staff requested additional information on June 24, 2003. Staff contacted the company again on August 20, 2003, requesting the same information as requested earlier. Staff sent BAK a letter on September 15, 2003, requesting the required information no later than October 3, 2003. As of October 16, 2003, staff had not received the requested information. Ms. Farris recommended that the Commission deny the Certificate of Authority for BAK Communications, LLC.
Commissioner Burg moved to deny the Certificate of Authority for BAK Communications, LLC. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Mr. Senger stated that 1-800-RECONEX, Inc. d/b/a USTel is seeking a Certificate of Authority to provide interexchange telecommunications services in South Dakota. Mr. Senger recommended the Commission approve a Certificate of Authority to 1-800-RECONEX, Inc. d/b/a USTel with restrictions from offering any prepaid services and from accepting customer deposits and advance payments. In addition 1-800-RECONEX, Inc. d/b/a USTel has agreed to the same restrictions for its local exchange service.
Commissioner Burg moved to approve 1-800-RECONEX, Inc. d/b/a USTel's Certificate of Authority with restrictions from offering any prepaid services and from accepting customer deposits and advance payments for both local and interexchange telecommunications services. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Senger stated that Telrite Corporation is seeking a Certificate of Authority to provide interexchange telecommunications services in South Dakota. The applicant has requested a waiver from filing financial statements as required by ARSD 20:10:24:02(8). Mr. Senger recommended the Commission grant the waiver of the cash flow statement and approve a Certificate of Authority to Telrite Corporation with restrictions from offering any prepaid services and from accepting customer deposits and advance payments.
Commissioner Burg moved to approve Telrite Corporation's Certificate of Authority with restrictions from offering any prepaid services and from accepting customer deposits and advance payments and grant a waiver from filing financial statements as required by ARSD 20:10:24:02(8). Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Senger stated that R2C Communications, Inc. is seeking a Certificate of Authority to provide interexchange telecommunications services in South Dakota. Mr. Senger recommended the Commission approve a Certificate of Authority to R2C Communications, Inc. with an effective date of October 28, 2003, with restrictions from offering any prepaid services and from accepting customer deposits and advance payments.
Commissioner Burg moved to approve R2C Communications, Inc.'s Certificate of Authority with an effective date of October 28, 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.
Mr. Frazier 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 Mr. Frazier recommended approval of the Agreement.
Commissioner Hanson moved to approve the Agreement in TC03-176. Chairman Sahr seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Wiest stated that no comments had been filed and recommended that no proceeding or hearing is necessary and the Commission should close the docket.
Commissioner Burg moved to close docket in TC03-178. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Mr. Frazier 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 Mr. Frazier recommended approval of the Amendment.
Commissioner Hanson moved to approve the Amendment in TC03-179. Chairman Sahr seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Wiest stated that based on the written comments, the Commission should conduct an analysis regarding mass-market switching in areas served by Qwest. Ms. Wiest recommended a procedural schedule with an intervention date of October 31, 2003, be set and a hearing date of April 26 through May 7, 2003, be set.
Commissioner Hanson moved to approve the procedural schedule with an intervention date of October 31, 2003, and a hearing date of April 26 through May 7, 2003. Chairman Sahr seconded and Commissioner Burg concurred. Motion passed 3-0.
Mr. Best stated that the Farmers Mutual Telephone Company filed a request stating how much estimated Federal Universal Service Support it may receive in the coming year and also showed estimated expenses. The expenses exceeded the monies the company estimated to receive for Federal Universal Service Support. The company stated all the monies it will receive for Federal Universal Service Support will be used in the appropriate manner as required by the FCC. Mr. Best recommended that the Commission approve the 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 docket TC03-183. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Announcements
Chairman Sahr announced and welcomed Sue Schaefer as a new Informational Analyst for the Public Utilities Commission.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
