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South Dakota Public Utilities Commission Meeting
Tuesday, May 11, 2004 at 9:30 A.M.
Capital 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; Commissioner Jim Burg; Deputy Executive Director Heather Forney; Commission Advisor Greg Rislov; Commission Attorney Rolayne Ailts Wiest; Staff Attorney Karen Cremer; Staff Analysts Michele Farris, Harlan Best, Dave Jacobson, Keith Senger, Jim Mehlhaff, and Sue Schaefer; and Administrative Secretary Tina Douglas.
Also present were Bob Miller, South Dakota Electric Utility Companies; Brett Koenecke, May, Adam, Gerdes and Thompson representing Midcontinent Communications; Darla Rogers, Riter, Rogers, Mayer, Hofer, Wattier & Brown representing Cheyenne River Sioux Tribe Telephone Authority and Tri-County Telcom, Inc.; and Todd Chambers, City of Pierre.
Joining the meeting by telephone were Jason Smiley, Gunderson, Paul, Goodsell & Nelson representing Western Wireless; Mary Lohnes, Midcontinent Communications; Colleen Sevold and Don Lewis, Qwest Corporation; Don Snyders, Alliance Communications Cooperative, Inc.; David Prazak, Otter Tail Power Co.; Suzan Stewart and Gene Harrison, MidAmerican Energy Company; Ryan Taylor, Cutler & Donahoe; and Joe Schuele, Martin Group.
Administration
1. Approval of the Minutes of the Commission Meetings Held on March 23, 2004, and April 6, 2004. (Staff: Tina Douglas.)
Commissioner Hanson moved to approve the minutes of the Commission meetings held on March 23, 2004, and April 6, 2004. Commissioner Burg seconded and Chairman Sahr 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 1048 consumer contacts during 2004. Since the last report was prepared for the April 6, 2004, Commission meeting, 362 of these contacts had been received; 181 contacts involved telecommunications services; 20 contacts involved electricity issues; 7 contact involved natural gas issues; 16 contacts involved gas and electric services; 69 contacts involved cellular phone issues; 25 contacts involved the Do Not Call registry; and 44 contacts involved miscellaneous services not regulated by the PUC. In 2004, 756 of the 1048 complaints registered have been resolved informally. In 2003, 1976 of the 2579 complaints registered have been resolved informally.
Telecommunications
Ms. Farris stated that Hills Telephone Company, Inc. (Hills) had submitted an application for a Certificate of Authority in accordance with the administrative rules of South Dakota. Hills intends to provide local telephone exchange services in the Valley Springs and North Larchwood, South Dakota local telephone exchanges under the fictitious name of Alliance Communications. Hills is currently in the process of purchasing existing facilities in those exchanges. Hills seeks authority to provide all the services currently being provided in the Valley Springs exchange by Sioux Valley Telephone per the Sioux Valley Tariff currently on file with the Public Utilities Commission. It has made all staff recommended changes to the tariff. Hills submitted the application on April 5, 2004, therefore it is restricted from offering service until June 4, 2004. Ms. Farris recommended the Commission approve the Certificate of Authority for local exchange service for Hills Telephone Company, Inc. to provide local exchange services in the Valley Springs and North Larchwood, South Dakota local telephone exchanges with an effective date of June 4, 2004.
Chairman Sahr moved to grant Hills Telephone Company, Inc.'s Certificate of Authority to provide local exchange services to do business in Valley Springs and North Larchwood, South Dakota with an effective date of June 4, 2004. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Electricity
Mr. Senger stated that on April 1, 2004, Otter Tail Power Company (Otter Tail) filed to renew the Released Energy program in the South Dakota electric tariff. This program allows Otter Tail to make energy purchases from qualified South Dakota customers. The program was originally approved by the Commission July 20, 2000. The program was amended and renewed by the company and approved the by Commission in June of 2001 and again in June of 2002. This filing simply renews the existing program for two-year period. Mr. Senger recommended the Commission approve the Released Energy Tariff with a June 7, 2004, effective date and expiring on June 6, 2006, and also requiring Otter Tail to continue the restrictions and reporting requirements as found in order EL00-018 and as amended by EL01-007 and EL02-008.
Commissioner Burg moved to approve the tariff in EL04-010 with an effective date of June 7, 2004 and with an expiration date of June 6, 2006, and that Otter Tail Power Company must continue the restrictions and reporting requirements which is found in the order of EL00-018 and was amended by EL01-007 and EL02-008. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Todd Chambers, City of Pierre, stated that the City of Pierre and Oahe Electric Cooperative filed a Joint Request for approval of an electric service territory boundary change. On November 4, 2003, the City of Pierre's territory change is for service to an outdoor sign located adjacent to Highways 14 and 83. The sign is located in Oahe Electric's service territory, he City has services closer to the sign. Ms. Farris stated that the territory lies in the S 2 of the SE 3 of S22-R79W-T111N within the highway right of way to the south. The owner of the sign is in agreement with the service rights exception. Both parties believe this exchange will promote the efficient and economical use of their respective electric systems. Ms. Farris stated that the service rights exception is in the public interest and recommended the Commission approve the request for an Electric Service Territory exception.
Commissioner Burg moved to approve the service rights exception between the City of Pierre and Oahe Electric Cooperative, Inc., in EL04-011. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Todd Chambers, City of Pierre, stated that the City of Pierre (City) and Oahe Electric Cooperative entered into an Electric Service Agreement on February 18, 2004. The City annexed certain real property on November 4, 2003, which is included in the service area of Oahe Electric. Ms. Farris stated that the City provided notice to Oahe 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 City and Oahe agree that it is in the best interests of both parties and the public interest that electric service to the annexed area be provided by the City of Pierre. The real property annexed by the City includes the North 236.6 feet of Outlot F-1 and all of Outlot F2 SW 3 SE1/4, Section 2-110-79, Hughes County, South Dakota. The City agrees to provide payment to Oahe pursuant to SDCL 49-34A-50. All parties are in agreement with the proposal. Ms. Farris stated that 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 due to the annexation between the City of Pierre and Oahe Electric Cooperative, Inc., in EL04-012. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Jacobson stated that Otter Tail Power Company (Otter Tail) filed an application for re-approval of an Electric Service Agreement to service Valley Queen Cheese Factory, Inc. pursuant to Otter Tail's currently effective Bulk Interruptible Service Tariff. The current Electric Service Agreement between Otter Tail and Valley Queen Cheese Factory, Inc. expires June 1, 2004, and Otter Tail has requested approval of the new Agreement effective June 1, 2004. The term of the new proposed Electric Service Agreement is one year. There has been interruptions of service to the customer. Mr. Jacobson recommended approval of the Electric Service Agreement.
Commissioner Burg moved to approve the Electric Service Agreement to service Valley Queen Cheese Factory, Inc. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Natural Gas
Mr. Jacobson stated that staff is submitting a proposed contract for consulting services to the Commission and recommended approval of the contract.
Commissioner Burg moved to approve the contract for consulting services in NG04- 001. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Rulemaking
Brett Koenecke, Midcontinent Communications, stated that on April 15, 2004, Midcontinent Communications (Midcontinent) filed a Petition For Rulemaking to amend ARSD 20:10:33:19. Midcontinent states that advances in technology and consumer preference have made the current rule impractical. Midcontinent has filed proposed amendments to the rule. Ms. Cremer recommended opening a docket.
Chairman Sahr moved to open a docket for RM04-001. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Telecommunications
Ms. Farris stated that CAT Communications International, Inc. (CCI) had submitted an application for a Certificate of Authority in accordance with the administrative rules of South Dakota. CCI intends to offer local, intrastate and interstate long distance service to residential customers using UNE-P and resale and provisioning long distance using its own switch. CCI intends to offer its services initially in the territory now served by Qwest Corporation. On March 24, 2004, staff contacted CCI and requested a response to a previously submitted data request. Staff notified the company in that letter if the information was not received by April 16, 2004, staff would recommend denial of the application. As of this date, no information has been received. Ms. Farris recommended the Commission deny the application of CAT Communications International for a Certificate of Authority to offer local and interexchange service in South Dakota.
Chairman Sahr moved to deny the application of CAT Communications International, Inc. for a Certificate of Authority to provide interexchange telecommunication services and local exchange services. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
2. In the Matter of Approving Agreements in TC03-194, TC04-042, TC04-043, TC04-059, TC04-063, TC04-065, TC04-066, TC04-068, TC04-069, TC04-070, TC04-071, TC04- 072, TC04-074, TC04-075, TC04-078, TC04-080
Ms. Wiest recommended denying the approval of this agreement since the Commission had just denied granting CAT Communications International, Inc. a Certificate of Authority.
Chairman Sahr moved to deny the agreement in TC03-194 between Qwest Corporation and CAT Communications International, Inc. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Wiest stated that South Dakota Telecommunications Association asked for a deferral on TC04-069, TC04-070 and TC04-072 because they need to change an appendix in these agreements.
Chairman Sahr moved to defer the agreements in TC04-069, TC04-070, and TC04- 072. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Wiest recommended approval of the Amendments in TC04-042, TC04-063, TC04- 065, TC04-066, TC04-075, and TC04-078.
Chairman Sahr moved to approved the Amendments in TC04-042, TC04-063, TC04- 065, TC04-066, TC04-075, and TC04-078. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Wiest recommended approval of the Agreements in TC04-059, TC04-074 and TC04- 080.
Chairman Sahr moved to approved the Agreements in TC04-059, TC04-074 and TC04-080. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Wiest recommended approval in the Reciprocal Interconnection, Transport and Termination Agreements in TC04-043, TC04-068 and TC04-071.
Chairman Sahr moved to approved the Agreements in TC04-043, TC04-068 and TC04-074. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Farris stated that Go Solo Technologies, Inc. (Go Solo) had submitted an application for a Certificate of Authority in accordance with the administrative rules of South Dakota. Go Solo intends to provide resold interexchange services including, unified voice, e-mail and fax messaging accessible from the web or phone. It also intends to provide 1+ and 101XXXX outbound dialing, incoming 800/888, directory assistance, data services, and postpaid calling card services throughout South Dakota. It has made all staff recommended changes to the tariff. GO Solo has agreed to restrictions from offering prepaid services and collecting deposits and advance payments. Go Solo submitted an income statement and balance sheet, but indicated they do 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 the Commission approve the request for a waiver of the financial information and also approve the Certificate of Authority for Go Solo Technologies, Inc. with restrictions on deposits, advance payments, and prepaid calling cards.
Chairman Sahr moved to grant the waiver of ARSD 20:10:24:02(8) and grant Go Solo Technologies, Inc.'s Certificate of Authority with restrictions from accepting customer deposits and advance payments and offering prepaid services. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Colleen Sevold, Qwest Corporation, asked that the Commission approved the filed revised pages to its South Dakota Access Service Tariff. According to Qwest, "these revisions modify the intrastate jurisdictional reporting requirements for switched access traffic. This filing proposes to modify tariffs to allow customers to self-report a Percent Other Messages (POM) of intrastate use. Customers will be asked to self-declare a POM in addition to their PIU [Percent Intrastate Usage]. Qwest requests this filing to be effective February 16, 2004. " Qwest has filed to reduce the Carrier Common Line rate to $0.038420 from $0.038905 and to introduce Message Charges to the Common Channel Signaling Network. Mr. Best recommended that the Commission approve the revisions to Qwest Corporation's Access Service Tariff.
Chairman Sahr moved to approved the tariff revision in TC04-010. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Colleen Sevold, Qwest Corporation, stated the Commission received a filing from Qwest Corporation regarding a service territory boundary change between Qwest Corporation's Rapid City exchange and Fort Randall Telephone Company's Hermosa Exchange. This revision allows the development to be served entirely by Fort Randall. No current Qwest customers will be affected by the change. Both companies are in agreement to the change. Ms. Farris stated that the boundary change requests that section 11 of Township 2S, Range 8 E be added to Fort Randall Telephone Company's Hermosa exchange and deleted from Qwest's Rapid City exchange. In accordance with SDCL 49-31-69 "any telecommunications company seeking to amend or alter its authorized local exchange service territory shall apply for an amended certificate of authority. An application for an amended certificate is subject to the same requirements as an application for an initial certificate." Both Fort Randall and Qwest have requested an amended Certificate of Authority. They have asked for a waiver from ARSD 20:10:32:03 subparagraphs 1-7, 9-21 and 23. The companies are requesting the waivers because the Commission already has the information and the change in territory doesn't affect the information. Both of the Companies are in good standing with the Commission and the change in territory benefits the future development of this area. Ms. Farris would recommended the Commission approve the waivers and grant the amended Certificates of Authority as well as the territory boundary change.
Chairman Sahr moved to grant the waiver of ARSD 20:10:32:03 subparagraphs 1-7, 9-21 and 23 and to grant amending Fort Randall Telephone Company and Qwest Corporation's Certificates of Authority and also grant the boundary change between Fort Randall Telephone Company's Hermosa Exchange and Qwest Corporation's Rapid City Exchange. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms Farris stated that on March 16, 2004, the Commission received a filing from Swiftel Communications regarding a service territory boundary change due to annexation between the City of Brookings and Interstate Telecommunications Cooperative (ITC). The change is being made to accommodate recent annexations by the City of Brookings. The City of Brookings has annexed the South 2 of the SE 3 of Section 18-T110N-R49W except the platted areas thereof and except the E 720 feet., the NW 3 of Section 6-T109N-R49W except the platted areas thereof, and the W 1,600 feet of the S !/2 of the NW 3 of S1-T109N-R50W. ITC is in concurrence with the requested boundary change due to the recent annexations. In accordance with SDCL 49-31-69 "any telecommunications company seeking to amend or alter its authorized local exchange service territory shall apply for an amended certificate of authority. An application for an amended certificate is subject to the same requirements as an application for an initial certificate." Both Swiftel and ITC have requested amended Certificates of Authority. They have asked for a waiver from ARSD 20:10:32:03 subparagraphs 1-7, 9-21 and 23. The companies are requesting the waivers because the Commission already has the information and the change in territory doesn't affect the information. Both of the Companies are in good standing with the Commission and the change in territory is in accordance with prior commission ruling. Ms. Farris recommended the Commission approve the waivers and grant the amended Certificates of Authority as well as the territory boundary changes.
Chairman Sahr moved to grant the waiver of ARSD 20:10:32:03 subparagraphs 1-7, 9-21 and 23 and to grant amending Brookings Municipal Utilities d/b/a Swiftel Communications and Interstate Telecommunications Cooperative's Certificates of Authority and also grant the boundary change between Brookings Municipal Utilities d/b/a Swiftel Communications and Interstate Telecommunications Cooperative. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Wiest recommended that intervention be granted to WWC License LLC and South Dakota Telecommunications Association in TC04-077.
Chairman Sahr moved to grant intervention to WWC License LLC and South Dakota Telecommunications Association in TC04-077. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Wiest recommended granting interim suspension until the final decision of the Commission.
Chairman Sahr moved to grant interim suspension until the final decision of the Commission in TC04-077. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Wiest recommended granting late intervention to Midcontinent Communications.
Chairman Sahr moved to grant late intervention to Midcontinent Communications in TC04-077. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
8. In the Matter of Petitions for Suspension or Modification of 47 U.S.C. Section 251(b)(2) of the Communications Act of 1934 as Amended in Dockets TC04-084 and TC04-085.
Ms. Wiest recommended that intervention be granted to WWC License LLC and South Dakota Telecommunications Association in TC04-084 and TC04-085.
Chairman Sahr moved to grant intervention to WWC License LLC and South Dakota Telecommunications Association in TC04-084 and TC04-085. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Wiest recommended granting interim suspension until the final decision of the Commission in TC04-084 and TC04-085.
Chairman Sahr moved to grant interim suspension until the final decision of the Commission in TC04-084 and TC04-085. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Darla Rogers, stated that Cheyenne River Sioux Tribe Telephone Authority and Tri-County Telcom, Inc. agreed to the procedural schedule set at the previous meeting for all of the other Local Number Portability dockets which is as follows:
The due dates for pre-filing of testimony are as follows (all dates 2004):
May 14 Petitioner's direct testimony and exhibits
May 28 Intervenors' and Staff's reply testimony and exhibits
June 14 Petitioner's re al testimony and exhibits
The schedule for discovery is as follows (all dates 2004):
April 28 General interrogatories, document requests and other general discovery requests by all parties
May 11 Responses to general discovery requests by all parties
May 18 Supplemental discovery requests by intervenors and Staff following Petitioner's pre-filed testimony
May 24 Petitioner's responses to supplemental discovery requests
June 3 Supplemental discovery requests by Petitioner following intervenors' and Staff's pre-filed testimony
June 10 Intervenors' and Staff's responses to Petitioner's supplemental discovery requests.
Chairman Sahr moved to set the procedural schedule as stated above. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Announcements
Chairman Sahr announce that the Commission Meeting that was to be held in Lemmon, South Dakota, on May 25, 2004, will be held on May 24, 2004, in Pierre, South Dakota, in Room 412 at 1:30 p.m. He also stated the Buffalo Wind Meeting will still be held on May 25, 2004 at Buffalo, South Dakota at 8:00 p.m.
Meeting adjourned.
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Tina Douglas
Administrative Secretary