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South Dakota Public Utilities Commission Meeting
Tuesday, June 22, 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; Executive Director Pamela Bonrud; Deputy Executive Director Heather Forney; Commission Advisor Greg Rislov; Commission Attorneys Rolayne Ailts Wiest and John Smith; Staff Attorney Karen Cremer; Staff Analysts Harlan Best, Dave Jacobson, Sue Schaefer, Keith Senger, Deb Gregg, and Steve Wegman; and Administrative Secretary Tina Douglas.
Also present were David Gerdes, May, Adam, Gerdes and Thompson representing Midcontinent Communications, and Montana-Dakota Utilities Co.; Bob Mercer, Newspaper Reporter; Rich Coit, South Dakota Telecommunications Association; and Mary Lohnes, Midcontinent Communications.
Joining the meeting by telephone were Colleen Sevold and Melissa Thompson, Qwest Corporation; Suzan Stewart, Melaine Acord, and Marv Soreson, MidAmerican Energy Company; Dana Meyer, Telec Consulting; Kevin Kouba, Otter Tail Power Co.; Jeff Decker, NorthWestern Corporation; Pam Harrington, RC Communications; and Robin Houwman, Danforth, Meierhenry & Meierhenry, representing Superior Renewable Energy LLC.
Administration
1. Approval of the Minutes of the Commission Meeting held on June 8, 2004. (Staff: Tina Douglas.)
Commissioner Hanson moved to approve the minutes of the Commission meeting held on June 8, 2004. Chairman Sahr 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 1293 consumer contacts during 2004. Since the last report was prepared for the June 8, 2004, Commission meeting, 80 of these contacts had been received; 47 contacts involved telecommunications services; 9 contacts involved electricity issues; 3 contacts involved natural gas issues; 2 contacts involved gas and electric services; 10 contacts involved cellular phone issues; 2 contacts involved the Do Not Call registry; and 7 contacts involved miscellaneous services not regulated by the PUC. In 2004, 990 of the 1213 complaints registered have been resolved informally. In 2003, 1987 of the 2579 complaints registered have been resolved informally.
Electricity
David Gerdes, Montana-Dakota Utilities Co., had no objection to the interventions. Ms. Robin Houwman, representing Superior Renewable Energy LLC, stated that the date to intervene in this docket was May, 28, 2004, and this is the 3rd petition filed for late intervention. Ms. Houwman feels that ARSD 20:10:01:15.02 was not met. Ms. Suzan Stewart, MidAmerican Energy Company, stated that it would be detrimental if utility companies were not granted intervention in this docket. Ms. Cremer stated that the Commission should grant intervention to MidAmerican Energy Company, NorthWestern Corporation, and Black Hills Power, Inc.
Chairman Sahr moved to grant intervention to MidAmerican Energy Company, NorthWestern Corporation, and Black Hills Power, Inc. in EL04-016. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Mr. Kevin Kouba, Otter Tail Power Company, asked for approval of the tariff revisions in EL04-019. Ms. Cremer recommended approval of Otter Tail Power Company's Summary List of Contracts with Deviations Sheet No. 3. which removes the City of South Shore from the Summary List of Contracts with Deviations.
Chairman Sahr moved to approve the tariff revisions in EL04-019. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Mr. Kevin Kouba, Otter Tail Power Company, asked for approval of the service rights exception in EL04-022. Ms. Cremer stated that no one had intervened in this docket. Ms. Cremer recommended that the Commission approve the Electric Service Rights Exception between H-D Electric and Otter Tail Power Company to provide electrical service to an irrigation pivot owned by Jonathan Wollman, located in Otter Tail Power Company's service territory in Section 35, Township 115, Range 52 of Hamlin County because it would best serve the interest of the customer.
Chairman Sahr moved to approve the service rights exception in EL04-022. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Natural Gas
Melaine Acord, MidAmerican Energy Company, stated that MidAmerican Energy Company is seeking approval of revised interruptible gas tariffs. MidAmerican's Small Volume Interruptible and Large Volume Interruptible natural gas sales tariffs currently contain language which would have them expire on June 26, 2004. This expiration was the result of the Commission's Order in Docket NG02-003 which directed MidAmerican to file a plan with the Commission to phase out interruptible natural gas tariffs within a two year time period. Coincident with the proposed tariff revisions, MidAmerican is filing a 2004 Interruptible Gas Rate Plan which is proposed to address the Commission's concerns in Docket NG02-003. In the Gas Rate Plan, MidAmerican proposes to retain interruptible rates o change the methodology used in its determination so as to increase these rates. MidAmerican's Plan also proposes to add new optional rates for customers, including those who may wish to switch rates as a result of the increase to interruptible rates. The new Gas Rate Plan is proposed to become effective 60 days after the effective date of tariffs approved in MidAmerican's current rate increase proceeding NG04-001. The interruptible rate changes which are the subject of this notice would replace the current tariff expiration date of June 26, 2004, with the proposed effective date of the 2004 Interruptible Gas Rate Plan as described above. MidAmerican has requested that these tariff revisions be approved with less than 30 days notice. Mr. Jacobson stated the approval of the tariff revisions is not approval of the proposed plan. He also stated that letters will need to be sent out to the customers regarding the new plan.
Chairman Sahr moved to approve the tariff revisions proposed at this time.. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Montana-Dakota Utilities Co. requested approval to increase rates for natural gas service in its Black Hills service territory by $1,281,417 or 2.2% based on an adjusted test year ended 12/31/2003. The company states the proposed increase for a residential customer would average about $1.96 per month. The proposed rates may potentially affect 43,100 customers in the Black Hills area of South Dakota. Mr. Jacobson recommended that the Commission suspend the imposition of the tariff for 90 days beyond June 7, 2004, and to assess a filing fee not to exceed $100,000.00.
Chairman Sahr moved to suspend the tariff 90 days beyond June 7, 2004, and assess a filing fee not to exceed $100,000.00 in NG04-004. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Telecommunications
Mr. David Gerdes, Midcontinent Communications (Midcontinent) stated that Midcontinent had filed a petition to be designated as an eligible telecommunications carrier (ETC) for purposes of qualifying to obtain federal universal service support in the Qwest Corporation service areas, except Arlington, Chamberlain, Colman, DeSmet, Elk Point, Flandreau, Hill City, Lake Preston, Morristown, Vermillion, Volga-Bruce, Whitewood, and Yankton. On March 24, 2004, Midcontinent filed a Motion to Amend Petition. By this amendment, the exchanges of North Sioux City and North Valentine would be added to those Qwest service areas excluded from Midcontinent's application for ETC status. The Commission granted the amendment a April 6, 2004 meeting. At the April 6 meeting Ms. Wiest had asked for clarification of Midcontinent's list of service areas and it was provided to the Commission. Ms. Cremer stated that in the Amendment Midcontinent asked for a waiver of the cost study area but it is not necessary as each Qwest exchange is its own study area and recommended the Commission grant Midcontinent's request for ETC Designation in the selected Qwest exchange areas.
Chairman Sahr moved to grant Midcontinent Communications ETC Designation in the service areas filed as amended in TC04-003. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
2. In the Matter of Approving Agreements in TC04-069, TC04-070, TC04-072, TC04- 082, TC04-086, TC04-087, TC04-088, TC04-091, TC04-093
Mr. Rich Coit, South Dakota Telecommunications Association, stated that an amendment to Appendix B had been filed in TC04-072. Mr. Coit also stated an amendment needs to be filed in TC04-070 to Appendix B hat the Appendix B still needs to approved by WWC License LLC, and if the Commission would approve the rest of these dockets, Mr. Coit could try to file the Appendix B before the end of the day. Ms. Wiest recommended approval of the Agreements in TC04-069, TC04-072, TC04-082, and TC04-091.
Chairman Sahr moved to approved the Agreements in TC04-069, TC04-072, TC04- 082, and TC04-091. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Wiest recommended approval of the Amendments in TC04-086, TC04-087, TC04- 088, and TC04-093.
Chairman Sahr moved to approved the Amendments in TC04-086, TC04-087, TC04- 088, and TC04-093. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Cremer stated that RC Communications, Inc. had submitted an Application for a Certificate of Authority in accordance with the administrative rules of South Dakota. RC Communications, Inc., is a facilities based local exchange provider currently providing service in Wilmot, Summit, Peever and Veblen. It plans to provide service to customers in Corona connecting with a fiber from the Wilmot switch. Copper and fiber backbone will be constructed in the town of Corona to serve individual customers. RC Communications, Inc., intends to offer its services initially in Corona which is territory now served by Qwest Corporation. It has made all staff recommended changes to the tariff. Ms. Cremer recommended the Commission approve the Certificate of Authority for local exchange services for RC Communications, Inc. with the requirement it comply with the rural safeguards.
Chairman Sahr moved to grant RC Communications, Inc.'s Certificate of Authority with rural safeguards. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Mr. Best stated that under the administrative rules the Commission can assess a filing fee not to exceed $100,000.00. Mr. Best recommended that PrairieWave Community Telephone, Inc., be assessed a filing fee not to exceed $100,000.00 with an initial deposit of $1,000.00
Chairman Sahr moved to assess a filing fee not to exceed $100,000.00 with an initial deposit of $1,000.00 in TC04-097. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Cremer stated that no one had intervened in TC04-098. Ms. Cremer stated that on June 1, 2004, Southwestern Bell Communications Services Inc. d/b/a Southwestern Bell Long Distance (SBLD) submitted a request for an amended Certificate of Authority. The original Certificate of Authority restricted SBLD from collecting deposits, advance payments, or offering prepaid calling cards. SBLD submitted a surety bond in lieu of the restrictions and requested the Certificate of Authority be amended to remove the restrictions. Ms. Cremer recommended that the Certificate of Authority be amended and the restrictions removed with the requirement it have a $25,000 surety bond.
Commissioner Burg moved to amend Southwestern Bell Communications Services Inc. d/b/a d/b/a Southwestern Bell Long Distance's Certificate of Authority to remove restrictions, and continuing of the $25,000.00 bond. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
ADDENDUM
Telecommunications
Mr. Wegman stated that on April 12, 2004, Cognigen Networks, Inc. filed an application for a Certificate of Authority to provide resold interexchange telecommunication services in South Dakota. Staff has made numerous contacts with the company stating that it needs to send a $250.00 check for the application fee. As of today, no check has been received. Mr. Wegman recommended denying Cognigen Networks, Inc.'s application for a Certificate of Authority.
Commissioner Burg moved to deny Cognigen Networks, Inc.'s application for a Certificate of Authority. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
The meeting was recessed.
The meeting was reconvened.
Mr. Rich Coit, South Dakota Telecommunications Association, stated that an amendment to Appendix B had been filed in TC04-070. Ms. Wiest recommended approval of the Agreement in TC04-070.
Chairman Sahr moved to approved the Agreement in TC04-070. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
