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South Dakota Public Utilities Commission Meeting
Tuesday, January 6, 2004 at 1:30 P.M.
Capital Building, Room 464
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Chairman Bob Sahr called the meeting to order. Also present were Commissioner Jim Burg; 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, Harlan Best, Michele Farris, Dave Jacobson, Jim Mehlhaff, Martin Bettmann, and Sue Schaefer; and Administrative Secretary Tina Douglas.
Joining the meeting by telephone were Vice Chairman Gary Hanson; Marv Truhe, Black Hills Corporation; Ron Spangler, Otter Tail Power Co.; and Vance Goldammer, Murphy, Goldammer & Prendergast, representing Western Mall.
Administration
1. Approval of the Minutes of the Commission Meetings Held on December 2, 2003, and December 16, 2003. (Staff: Tina Douglas.)
Chairman Sahr moved to approve the minutes of the Commission meetings held on December 2, 2003 and December 16, 2003. 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 received a total of 2550 consumer contacts during 2003. Since the last report was prepared for the December 16, 2003, Commission meeting, 104 of these contacts had been received; 56 contacts involved telecommunications services; 14 contacts involved electricity issues; 5 contacts involved natural gas issues; 7 contacts involved gas and electric services; 6 contacts involved cellular phone issues; 8 contacts involved the do not call registry; and 6 contacts involved miscellaneous services not regulated by the PUC. In 2003, 1834 of the 2550 complaints registered have been resolved informally. Thus far in 2004, we have received 13 consumer contacts: 7 contacts involved telecommunications services; 1 contact involved electricity issues; 3 contacts involved natural gas issues; 8 contacts involved the do not call registry; and 1 contact involved miscellaneous services not regulated by the PUC.
Chairman Sahr moved to grant John Reints' Petition for Re-Hearing. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Electric
Ms. Farris stated that on June 16, 2003, TSP submitted a request for a variance from the master metering rules on behalf of the Western Mall (Mall). The Mall is currently served by a central physical plant that includes a backup generator. The plant is aging and the owner would like to upgrade the existing heating and cooling system. The upgrade includes individual rooftop units. Staff sent a data request to TSP on June 19, 2003, requesting additional information. Included in the data request was a question regarding how the cost of the electricity is allocated to the tenants. Staff received a response to that data request on August 25, 2003. Mall management explained that the tenants are metered and that the mall reads the meters and computes the bill based on Xcel rates. At that time staff requested a copy of a sample billing for one month. Upon review of the sample billing it came to light that Xcel was billing the Mall for electrical usage and the Mall was in turn recalculating the rates and billing its tenants. Xcel was billing at the interruptible rate, which provided lower rates. The Mall recalculated the bills for each tenant using Xcel's tariff rates. Based on the information received for the August billing the Mall was billed $40,268.46 for electric utility service, the Mall in turn received $59,487.34 from its tenants. When staff became aware of this billing issue, Ms. Cremer sent the Mall management a letter requesting it contact her regarding its status as a public utility. On September 19, 2003, Mr. Bettmann and Ms. Farris met with the consultant, Mall management and Xcel officials regarding the variance request. During this meeting staff again explained the problem with the billing. Also, during this meeting staff became aware that Scheel's facility, which had just recently been constructed, had been master metered without prior Commission approval. Ms. Farris asked that the Mall send notification to the Commission regarding the design of the facility and an explanation on why the Scheels' facility was master metered without prior approval from the Commission. As of January 6, 2004, Ms. Farris has not received anything from the Mall regarding the Scheels' facility. On November 14, 2003, staff received information it needed to determine if the changes to the Mall met the definition of ARSD 20:10:26:03(3). Upon review of the information staff determined that requiring individual meters would be uneconomical. Staff contacted Mall management and explained that staff would recommend that a variance be granted in order to continue with master metering. Staff also explained again the billing would need to be changed and that there would be language in the order regarding billing. At that time staff suggested Mall management have its attorney contact staff. On December 16, 2003, Staff was contacted by TSP and Mall management inquiring why this docket had not been on the December 16, 2003, Commission meeting. Staff explained that the Commission had not been contacted by its attorney. Staff was instructed that this issue is critical and needs to be resolved, so design and construction can move forward. All parties agreed, at that time, this matter should be on the docket for the January 6, 2004, Commission meeting regardless of whether its attorney contacted staff. On December 31, 2003, Staff faxed a sample of the language that staff would be recommending to the Commission. Ms. Farris recommended the Commission grant the variance request to continue to master meter the Mall, including the Scheels' facility. Staff further recommended the following conditions be placed in the Order:
1) Mall management shall not charge its tenants for electrical energy above the amount billed by Xcel Energy.
2) Mall management must submit to Commission staff, within 14 days of issuance of this order, a detailed description of how the electrical costs will be allocated to each tenant, including the Scheels complex.
3) Mall management shall submit to Commission staff a copy of the monthly billings from Xcel to the Mall, including the Scheels billing, for the three months following issuance of this order.
4) Mall management shall submit to Commission staff a compilation of the monthly billing to the Mall tenants to correspond to the billings from Xcel for the three months following issuance of this order.
5) Mall management shall submit to Commission staff a letter explaining the design of the Scheels' facility and how it came to be master metered without prior Commission approval.
Mr. Vance Goldammer, Western Mall, agreed with Ms. Farris's recommendations.
Chairman Sahr moved to grant the Master Metering Variance for the Western Mall with the conditions recommended by staff. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
2. EL03-031 In the Matter of the Filing by Otter Tail Power Company for Approval of Tariff Revisions. (Staff Analyst: Keith Senger, Staff Attorney: Kelly Frazier)
Mr. Senger stated that an application by Otter Tail Power Company for approval to revise its tariffed Summary List of Contracts with Deviations. The existing contract with the City of Wilmot will expire on January 6, 2004. Otter Tail states the new agreement does not contain any deviations from Otter Tail's currently filed tariff and therefore requests that reference to a contract with the City of Wilmot be removed from the Summary List of Contracts with Deviations. Mr. Senger recommended the Commission approve the tariff revisions.
Chairman Sahr moved to approve the tariff revisions in EL03-031. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Mr. Senger stated that an application by Otter Tail Power Company for approval to revise its tariffed Summary List of Contracts with Deviations. The existing contract with the City of Castlewood will expire on January 15, 2004. Otter Tail states the new agreement does not contain any deviations from Otter Tail's currently filed tariff and therefore requests that reference to a contract with the City of Castlewood be removed from the Summary List of Contracts with Deviations. Mr. Senger recommended the Commission approve the tariff revisions.
Chairman Sahr moved to approve the tariff revisions in EL03-032. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Gas and Electric
Mr. Jacobson stated that Montana-Dakota Utilities Co. (MDU) had filed an application to revise its Customer Information Booklet by reorganizing content, updating information regarding utility issues and providing information regarding additional services now being offered. The filing includes proposed tariff revisions denoting the new booklet and also the pamphlet containing information pertinent to South Dakota customers. Mr. Jacobson stated that MDU had agreed to all changes to the booklets recommended by staff. Mr. Jacobson recommended that the Commission approve the revisions to the Customer Information Booklet.
Chairman Sahr moved to approve the revised booklets and tariff revisions in GE03-001. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Telecommunications
Ms. Farris stated she has sent numerous letters requesting information and had received no correspondence from South Dakota Big Sky Telecom. Ms. Farris recommended denying South Dakota Big Sky Telecom's application for a Certificate of Authority.
Chairman Sahr moved to deny South Dakota Big Sky Telecom's application for a Certificate of Authority. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Ms. Farris stated that IDT America, Corp. (IDT) had submitted an application for a Certificate of Authority in accordance with the administrative rules of SD. IDT intends to provide resold local exchange service using an unbundled network element platform of the incumbent local exchange company. IDT intends to offer its services statewide, except those areas deemed rural and those areas of the state that are not open to competition. IDT has made all staff recommended changes to the tariff. IDT does not maintain its own financial statements. All financial statements are consolidated into that of the parent company. Therefore, it has requested a waiver from 20:10:32:03(11), which requires it to submit current balance sheet, income statement, and cash flow statements. IDT currently has authority to provide IXC service in SD. IDT currently has a $25,000 surety bond on file with the Commission and requests the Commission to allow the bond to cover local exchange operations and that the company not be required to obtain an additional bond. Ms. Farris stated that this docket had previously been deferred due to the bond cancellation. The company has secured a new bond. Ms. Farris recommended the Commission approve the request for a waiver of the financial information and approve the request to operate the local service under the existing $25,000 surety bond. Ms. Farris also recommended the Commission approve the Certificate of Authority for local exchange services for IDT America, Corp. with the requirement it have a $25,000 surety bond, and comply with the rural safeguards.
Commissioner Burg moved to grant the waiver of ARSD 20:10:32:03(11) and grant IDT America, Corp.'s Certificate of Authority subject to rural safeguards and continuing $25,000.00 bond. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Ms. Farris stated she has sent numerous letters requesting information and had received no correspondence from South Dakota Big Sky Telecom. Ms. Farris recommended denying South Dakota Big Sky Telecom's application for a Certificate of Authority.
Chairman Sahr moved to deny South Dakota Big Sky Telecom's application for a Certificate of Authority. Commissioner Burg seconded and Commissioner Hanson 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 recommended approval of the Amendment.
Commissioner Burg moved to approve the Amendment in TC03-190. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
