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South Dakota Public Utilities Commission Meeting
Tuesday, December 16, 2003 at 9:30 A.M.
Capital Building, Room 412
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Also present were Brett Koenecke, May, Adam, Gerdes & Thompson, representing MCI WorldCom, Midcontinent Communications, and McLeodUSA Telecommunications Services, Inc.; Darla Pollman Rogers, Riter, Rogers, Mayer, Hofer, Wattier & Brown, representing Midstate Telcom, Northern Valley Communications, LLC, SDTA, and various ILEC's; and Bob Mercer, Associated Press.
Joining the meeting by telephone were Vice Chairman Gary Hanson; Colleen Sevold and Tim Goodwin, Qwest Corporation; Mary Lohnes, Midcontinent Communications; Pat Mastel, PrairieWave Telecommunications, Inc.; Linn Evans and Marv Truhe, Black Hills Corporation; Mary Sisak and Todd Boyd, Interstate Telecommunications Cooperative Inc.; Jim Tarpey; Meredith Moore, Cutler and Donahue, representing Splitrock Properties, Inc.; Tom Welk, Boyce, Greenfield, Pashby & Welk, LLP, representing Qwest Corporation; and Steve Chernoff, Wireless Alliance LLC, d/b/a Unicel and RCC Minnesota 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 2466 consumer contacts during 2003. Since the last report was prepared for the December 2, 2003, Commission meeting, 92 of these contacts had been received; 43 contacts involved telecommunications services; 11 contacts involved electricity issues; 1 contact involved natural gas issues; 7 contacts involved gas and electric services; 7 contacts involved cellular phone issues; 10 contacts involved the do not call registry; and 13 contacts involved miscellaneous services not regulated by the PUC. In 2003, 1763 of the 2446 complaints registered have been resolved informally.
Mr. Mehlhaff stated that the Complainant had agreed to withdraw her complaint.
Chairman Sahr moved to dismiss complaint and close docket in CT03-148. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
See Transcript of CT03-155 of December 16, 2003, 9:30 a.m. Commission Meeting
Chairman Sahr moved to grant Black Hills FiberCom, L.L.C.'s Motion to Dismiss. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Telecommunications
Ms. Farris stated that MG LLC d/b/a/ SearsConnect has submitted an application for a Certificate of Authority in accordance with the administrative rules of SD. SearsConnect intends to provide resold interexchange services including, 1+ and 101XXXX outbound dialing, incoming 800/888, directory assistance, data services, and travel card services throughout South Dakota. It has made all staff recommended changes to the tariff. SearsConnect has agreed to restrictions from offering prepaid services and collecting deposits and advance payments. SearsConnect submitted an income statement and balance sheet, but indicated it did not prepare a cash flow statement. Therefore, it has requested a waiver from ARSD 20:10:24:02(8), which requires it to submit current balance sheet, income statement, and cash flow statements. Ms. Farris recommended that the Commission approve the request for a waiver of the financial information and also approve the Certificate of Authority for MG LLC d/b/a/ SearsConnect with restrictions on deposits, advance payments, and prepaid calling cards.
Chairman Sahr moved to grant MG LLC d/b/a SearsConnect's Certificate of Authority with restrictions from accepting customer deposits and advance payments and offering prepaid services, and grant a waiver from filing financial statements as required by ARSD 20:10:24:02(8). Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Senger stated that on September 26, 2003, Gold Line Telemanagement Inc. filed an application for a Certificate of Authority to provide interexchange telecommunications services. The applicant proposes to offer a full range of direct dial and dial around services on a resale basis. The applicant has requested a waiver from filing financial statements as required by ARSD 20:10:24:02(8). Applicant's original application indicated that the company primarily sells prepaid calling cards and thus staff requested it file a $25,000 bond. The Applicant was unable to obtain a bond and thus has agreed to restrictions from offering any prepaid services, (including prepaid calling cards) and from accepting customer deposits and advanced payments. However, the company indicated that it will soon be filing to replace the restrictions with a bond or possibly an irrevocable letter of credit. Mr. Senger recommended the Commission grant the waiver from filing financial statements and approve Gold Line Telemanagement Inc.'s Certificate of Authority subject to restrictions.
Chairman Sahr moved to grant Gold Line Telemanagement Inc.'s Certificate of Authority with restrictions from accepting customer deposits and advance payments and offering prepaid services, and grant a waiver from filing financial statements as required by ARSD 20:10:24:02(8). Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Mr. Senger stated that on October 16, 2003, XO Network Services Inc. filed an application for a Certificate of Authority to provide local exchange telecommunications services in South Dakota. The Applicant intends to be a reseller using Qwest facilities. With the filing, the applicant also notified the Commission that the company wishes to change its name for its IXC authority from XO Long Distance to XO Network Services, Inc. so both the IXC and Local exchange authority would be under the same company name. The applicant requested a waiver from filing financial statements as required by ARSD 20:10:32:03(11). Applicant has agreed to a $25,000 bond requirement and currently has a $25,000 bond with the Commission for its IXC authority. XO filed an access tariff and is petitioning the Commission to be exempt from developing intrastate switched access rates based on company-specific costs. Thus, the company requested a waiver from ARSD 20:10:27:07 and has elected to use rates in accordance with ARSD 20:10:27:12. Mr. Senger recommended the Commission grant the waiver of ARSD 20:10:32:03(11) and approve XO Network Services, Inc.'s Certificate of Authority subject to rural safeguards and continuing $25,000.00 bond. Mr. Senger also recommend that the Commission grant a three year waiver of ARSD 20:10:27:07 and approve the access tariff.
Chairman Sahr moved to grant the waiver of ARSD 20:10:32:03(11) and grant XO Network Services, Inc.'s Certificate of Authority subject to rural safeguards and continuing $25,000.00 bond, and also grant a three year waiver of ARSD 20:10:27:07 and approve the access tariff. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Mr. Frazier stated that the Agreement has been properly filed, has been properly executed and does not appear to contain discriminatory provisions, no comments were filed, and recommended approval of the Agreement.
Commissioner Burg moved to approve the Agreement in TC03-192. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
5. TC03-193 In the Matter of the Filing by RCC Minnesota, Inc. and Wireless Alliance, L.L.C. d/b/a Unicel for Designation as an Eligible Telecommunications Carrier. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)
Ms. Cremer recommended that the Commission grant intervention to James Valley Cooperative Telephone, Union Telephone Company, Stockholm-Strandburg Telephone Company, Venture Communications Cooperative, Interstate Telecommunications Cooperative, Sioux Valley Telephone Company, PrairieWave Communications, South Dakota Telecommunications Association, Roberts County Telephone Cooperative Association, RC Communications, Inc., and Alliance Communications Cooperative, Inc.
Chairman Sahr moved to approve the intervention of James Valley Cooperative Telephone, Union Telephone Company, Stockholm-Strandburg Telephone Company, Venture Communications Cooperative, Interstate Telecommunications Cooperative, Sioux Valley Telephone Company, PrairieWave Communications, South Dakota Telecommunications Association, Roberts County Telephone Cooperative Association, RC Communications, Inc., and Alliance Communications Cooperative, Inc. in TC03-193. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Electric
1. EL03-030 In the Matter of the Joint Request for an Electric Service Territory Boundary Change between Clay-Union Electric Corporation and the City of Vermillion. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)
Ms. Farris stated that the City of Vermillion and Clay-Union Electric Cooperative entered into an Electric Service Agreement on September 23, 2003. The City annexed certain real property on May 5, 2003, which is included in the service area of Clay-Union Electric. The City provided notice to Clay-Union of its intent to purchase the electric utility properties and service rights to a portion of said annexed property in compliance with SDCL 49-34A-49. The real property annexed by the City includes the east half of the NW 3 of S13 T92 R52W, Clay County except lots 1, 2, 3 and 4, Block 4 Johnson's Addition; The south 825 feet of the SE3 of the NW3 of S13; and Lot H-1 in the NW 3 of the NW 3 of S13. The City agrees to purchase Clay-Union facilities and provide payment to Clay-Union pursuant to SDCL 49-34A-49 and 50. There is one customer affected by this change and they are in agreement with the change. The actual transfer of service occurred on October 1, 2003. All parties are in agreement with the proposal. Ms. Farris stated it is in the public's best interest and recommended the Commission approve the boundary change due to annexation.
Commissioner Burg moved to approve the boundary change in EL03-030. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Telecommunications
See Transcript which is on file at the Public Utilities Commission Office.
Commissioner Burg moved to close the docket without prejudice in TC03-181. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
