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South Dakota Public Utilities Commission Meeting
Thursday, November 4, 2003 at 9:30 A.M.
State Capital Building, Room 413
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Chairman Bob Sahr called the meeting to order. Also present were Executive Director Pamela Bonrud; Deputy Executive Director Heather Forney; Commission Advisor Greg Rislov; Commission Attorneys Rolayne Ailts Wiest and John Smith; Staff Attorneys Kelly Frazier and Karen Cremer; Staff Analysts Keith Senger, Steve Wegman, Harlan Best, Michele Farris, Dave Jacobson, Jim Mehlhaff, and Sue Schaefer; and Administrative Secretary Tina Douglas.
Also present were Tom Dethlefs, Qwest Corporation; Brett Koenecke, May, Adam, Gerdes & Thompson, representing MCI WorldCom Communications Inc., McLeodUSA Telecommunications Services, Inc., Midcontinent Communications, and OCMC, Inc.; Darla Rogers, Riter, Rogers, Mayer, Hofer, Wattier & Brown, representing LECA; and Rich Coit, SDTA.
Joining the meeting by telephone were Vice Chairman Gary Hanson; Commissioner Jim Burg; Marlene Bennett, Martin Group; Colleen Sevold, Barbara Brohl, and Tim Goodwin, Qwest Corporation; Mary Lohnes, Midcontinent Communications; Janet Keller and Mary Tribby, AT&T; Bill Heaston, PrairieWave Telecommunications, Inc.; Linn Evans, Marv Truhe, Stewart Wevik, and Kyle White, Black Hills Corporation and Black Hills FiberCom; Ron Spangler, Bernadeen Brutlag, and Stacy Heuert, Otter Tail Power Co.; and Tom Welk, Boyce, Greenfield, Pashby & Welk, LLP, representing Qwest Corporation.
Administration
1. Approval of the Minutes of the Commission Meeting Held on October 16, 2003. (Staff: Tina Douglas.)
Chairman Sahr moved to approve the minutes of the Commission meeting held on October 16, 2003. Commissioner Burg seconded and Commissioner Hanson 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 2143 consumer contacts during 2003. Since the last report was prepared for the October 16, 2003, Commission meeting, 119 of these contacts had been received; 45 contacts involved telecommunications services; 20 contacts involved electricity issues; 3 contacts involved natural gas issues; 4 contacts involved gas and electric services; 8 contacts involved cellular phone issues; 32 contacts involved do not call registry; and 7 contacts involved miscellaneous services not regulated by the PUC. In 2003, 1517 of the 2143 complaints registered have been resolved informally.
Chairman Sahr asked if anyone was present or on the phone represented the Complaint. No one was. Linn Evans, Black Hills Corporation stated the Complaint challenges Black Hills Power & Light's Flat Monthly Charge. A letter was sent to the Complainant on October 21, 2003, regarding disconnection of his service. That was the same day the Complainant's formal complaint was filed with the Public Utilities Commission. When Black Hills Power and Light became aware of this complaint the disconnection was stopped until the Commission could hear this complaint. Mr. Evans also stated that the Commission has no authority to assess punitive damages so the Commission should deny the motion. Mr. Frazier, stated that he agreed with Mr. Evans and recommended the Commission to deny the motion.
Chairman Sahr moved to deny the motion to add punitive damages to the Complainant's complaint in CE03-003. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Electric
Ms. Bernadeen Brutlag, stated that on September 25, 2003, Otter Tail Power Company filed a petition for approval to revise its Fuel Adjustment Clause Tariff. The revisions are requested to permit the inclusion of purchase power costs related to renewable energy purchases. On April 1, 2003, Otter Tail entered into a Power Purchase Agreement with FPL Energy to purchase the electric energy generated by 14 wind turbines with an approximate output of 21 megawatts. Otter Tail believes that approval of the inclusion of the costs of energy purchased from renewable sources is appropriate because when it is competitively priced, renewable energy is an appropriate addition to Otter Tail's resource mix. Ms. Brutlag also stated that wind energy is nondispatchable. If wind energy is produced the owner is paid, if wind energy is not produced no payment is made. Ms. Brutlag also added that the tariff revisions included a few minor language changes: 1) exclusion of energy costs for the Tailwinds Program; and 2) inclusion of fuel such as biomass fuels. Ms. Brutlag explained that the Tailwinds amendment would not change how Tailwinds is currently being accounted for, and asked the Commission to approve the tariff revisions. Ms. Farris agreed with Otter Tail's statements and also stated that SDCL 49-34A-25 provides for automatic adjustment of rates for changes in wholesale rates for energy delivered and recommended that the Commission approve the revisions.
Chairman Sahr moved for approval of the tariff revisions in EL03-024. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Telecommunications
Ms. Darla Rogers, representing Interstate Telecommunications Cooperative, Inc., stated that Interstate Telecommunications Cooperative, Inc. (Interstate) has satisfied all of the requirements and urged the Commission to approve the switched access revenue requirement. Ms. Forney stated that on June 10, 2003, Interstate filed a switched access cost study developing a revenue requirement and minutes of use used in combination with the other Local Exchange Carrier Association (LECA) members to determine the switched access rates for LECA. Staff and Interstate have reached an agreement for a revenue requirement of $2,908,204.00.
Commissioner Hanson moved to grant Interstate Telecommunications Cooperative, Inc.'s Switched Access Revenue Requirement of $2,908,204.00. Chairman Sahr seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Darla Rogers, representing DTG Community Telephone, stated that the supporting affidavit to the motion indicated that DTG Community Telephone (DTG) did not believe that it received accurate information concerning the company's switched access services for the period prior to its acquisition by PrairieWave. Ms. Rogers is asking that DTG be allowed to withdraw the company's cost study filing for 2001, and would like a waiver of the filing requirements as required by ARSD 20:10:27:07. Mr. Best recommended that the Commission grant the motion to withdraw DTG's cost study filing and stated that DTG had suggested two alternatives. Mr. Best recommended a third alternative which would be to allow DTG to file a cost study based on the 12 months ended December 31, 2003, and to require that the filing be made no later than July 1, 2004. Mr. Best also recommended that the Commission grant the waiver of the filing requirements as required by ARSD 20:10:27:07 until July 1, 2004.
Chairman Sahr moved to grant the withdrawal of DTG's cost study filing as long as DTG files a cost study based on the 12 months ended December 31, 2003, which must be filed no later than July 1, 2004, and to grant the waiver of the filing requirements until July 1, 2004. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Ms. Darla Rogers, representing the Local Exchange Carriers Association, stated that the two preceding dockets were the last components that needed to be completed in order for the Local Exchange Carriers Association (LECA) rate to be established and that the LECA provided to staff all the information it has requested. Mr. Best stated that on July 1, 2002, the LECA filed revised pages to the LECA Tariff were filed to implement the change in revenue requirement and minutes of use of its member companies. Mr. Best stated that there will be no refund to the interexchange carriers of the rate that was implemented by LECA on July 1, 2003, because of the correction to the minutes of use of a LECA member company. Staff and LECA have reached an agreement for an originating access rate of $.0998 and the terminating rate will be $.1193. Mr. Best recommended an effective date of December 1, 2003, for the switched access rates.
Chairman Sahr moved to approve South Dakota Network, LLC's originating access rate of $.0998 and terminating rate of $.1193 with an effective date of December 1, 2003. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Brett Koenecke, OCMC, Inc, entered into a settlement agreement with the staff. OCMC, Inc. will refund South Dakota consumers totaling $316.41. OCMC, Inc. has completed staff's programming requirement for quoting rates. OCMC, Inc. does not admit any wrongdoing but has agreed to pay the Commission $1,000.00 for staff time. Mr. Koenecke asked the Commission to approve the settlement and close the docket. Mr. Frazier recommend approval of the settlement agreement. Mr. Frazier stated the consumers will be made whole with the $316.41 settlement.
Chairman Sahr moved to approve the settlement agreement with the stipulation that checks will be cut for each consumer and the Commission will mail out the checks. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Mr. Best stated that on August 21, 2003, Kadoka Telephone Company, Kadoka, South Dakota, filed for a change in its switched access rates. Kadoka does not have the means to file a cost study, and it is not part of LECA. Revised rates to the Kadoka Telephone Company Tariff were filed to implement the change in revenue requirement and minutes of use of the cost companies, excluding Qwest Corporation. Staff and Kadoka Telephone Company have reached an agreement for a carrier common line rate of $.0515, local switching rate $.0232, and local transport rate of $.0365, with an effective date of November 21, 2003. Mr. Best recommended these rates and the proposed effective date of November 21, 2003.
Chairman Sahr moved to grant Kadoka Telephone Company's carrier common line rate of $.0515, local switching rate $.0232, and local transport rate of $.0365, with effective date of November 21, 2003. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Senger stated that on September 5, 2003, Level 3 Communications, LLC filed a request for approval of its switched access tariff. Thus the company is requesting a waiver from filing company specific cost data as required by ARSD 20:10:27:07. The company is also requesting a waiver from filing rates based on the costs of all the telecommunications companies with less than 100,000 access lines as required by ARSD 20:10:27:12. The company proposes mirroring Qwest current rates. The Company has agreed that the wavier request will be effective for three years, and that it would have to come before the Commission to either renew the waiver request or file company specific cost-base rates within three years. Mr. Senger recommended that the Commission grant the request for waiver from ARSD 20:10:27:07 and 20:10:27:12, and allow Level 3 to mirror Qwest current rates with a limit of three years.
Chairman Sahr moved to grant the waiver from filing company specific cost data and the waiver from filing rates based on the costs of all the telecommunications companies with less than 100,000 access lines, and allow Level 3 to mirror Qwest current rates with a limit of three years. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Wiest recommended to the Commission to grant intervention to Qwest Corporation, AT&T Communications of the Midwest, MCImetro Access Transmission Services LLC and MCI WorldCom Communications Inc., the South Dakota Telecommunications Association, Midcontinent Communications, and McLeodUSA Telecommunications Services, Inc.
Commissioner Hanson moved to grant intervention to Qwest Corporation, AT&T Communications of the Midwest, MCImetro Access Transmission Services LLC and MCI WorldCom Communications Inc., the South Dakota Telecommunications Association, Midcontinent Communications, and McLeodUSA Telecommunications Services, Inc. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.
Ms. Wiest stated Qwest Corporation, AT&T, and MCI had filed a joint motion for South Dakota to participate in the multi-state batch cut forum. Ms. Wiest asked whether anyone had an objection to the joint motion and whether any of the other states had approved this joint motion. Ms. Mary Tribby, AT&T, stated that Washington State had approved the joint motion. Mr. Tom Dethlefs, Qwest Corporation, stated that Qwest will be the facilitator. The parties who filed the joint motion will absorb the costs of the conference calls and the court reporter. Ms. Wiest recommended that the Commission approve the joint motion with the stipulation that other states join in.
Commissioner Hanson moved to approve the joint motion with the stipulation that other states adopt the joint motion as well. Chairman Sahr seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Wiest recommended that the Commission establish procedures including discovery and a protective order regarding confidential material. On the issue of discovery, Ms. Wiest noted that it was considering issuing discovery requests based on the discovery questions formulated by the Regional Oversight Committee discovery group. Ms. Wiest asked Qwest to file a list of the entities that Qwest would like bench discovery requests issued to. The issue of how to deal with confidential information submitted by non-parties pursuant to the bench discovery requests was also discussed. AT&T noted that in the Minnesota proceeding, discovery responses were assigned a number in order to conceal the name of the responding entity. Ms. Wiest recommended the issuance of bench discovery requests and a protective order subject to modifications being made by the parties.
Chairman Sahr moved to issue a bench discovery request and a protective order. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
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 Mr. Frazier recommended approval of the Amendment.
Commissioner Hanson moved to approve the Amendment in TC03-182. Chairman Sahr seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Cremer stated that staff had requested input from interest parties on Qwest's request. Ms. Barbara Brohl, Qwest, stated that on October 1, 2003, Qwest Corporation filed an Updated Exhibit B to the Statement of Generally Available Terms and Conditions (SGAT). Qwest modified Exhibit B to include revised Performance Indicator Definition (PID) OP-5, New Service Quality. The modified PID was unanimously adopted by the Long Term PID Administration (LTPA) participants on August 6, 2003. Ms. Brohl asked that the Commission either approve the amended Exhibit B effective November 1, 2003, as agreed by the LTPA, or otherwise allow it to go into effect in accordance with 47 U.S.C. Section 252(f)(3), and also requested that the Commission deem this revised Exhibit B to modify the SGAT and existing interconnection agreements that currently contain the PIDs as an exhibit. Ms. Wiest stated that she believes the Commission need not take any action and allow TC03-184 to go into effect like the Commission has done in the past with other SGAT filings. She stated that the amendment of existing interconnection agreements could be taken care of in Qwest's most recent filing in TC01-165, submission of OP-5(A) for inclusion in the QPAP. Ms. Wiest recommended that no action was required.
The Commission took no action on this item.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
