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South Dakota Public Utilities Commission Meeting
Tuesday, July 20, 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; 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, Jim Mehlhaff, Christine Hibbeler, Michele Farris, and Martin Bettmann; Intern, Jessica Fiechtner; and Administrative Secretary Tina Douglas.
Also present were Darla Rogers, Riter, Rogers, Mayer, Hofer, Wattier & Brown representing Cheyenne River Sioux Tribe Telephone Authority and Local Exchange Carriers Association; Marlene Bennett, Martin Group representing Local Exchange Carriers Association; and Gene Kroell and Jeff Larson, Santel Communications Cooperative.
Joining the meeting by telephone were Commissioner James Burg, Public Utilities Commission; Colleen Sevold and Melissa Thompson, Qwest Corporation; Marv Soreson and Gene Harrison, MidAmerican Energy Company; Larry Hettinger, Heartland Consulting; Talbot Wieczorek, Gunderson, Paul, Goodsell & Nelson, representing WWC License; Tom Kleve, TRK Development; Joe Schuele, Martin Group; Mary Lohnes, Midcontinent Communications; James Cremer, Bantz, Gosch & Cremer representing James Valley Cooperative Telephone Co.; and Tamie Aberle, Montana-Dakota Utilities Co.
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 1468 consumer contacts during 2004. Since the last report was prepared for the July 6, 2004, Commission meeting, 104 of these contacts had been received; 40 contacts involved telecommunications services; 9 contacts involved electricity issues; 3 contacts involved natural gas issues; 2 contacts involved gas and electric services; 35 contacts involved cellular phone issues; 4 contacts involved the Do Not Call registry; and 11 contacts involved miscellaneous services not regulated by the PUC. In 2004, 1130 of the 1468 complaints registered have been resolved informally. In 2003, 1989 of the 2579 complaints registered have been resolved informally.
Electricity
Tom Kleve, TRK Development, Inc., (TRK) stated that TRK filed a request for a variance of the individual metering requirement. TRK Development is designing a building for affordable senior citizen housing funded under the South Dakota Housing Development Authority's tax credit program. The building is designed to have the owner pay the electric service for each unit and therefore TRK is requesting to master meter the electric service for the building. If the variance is not granted it will cost about $8,000.00 to put in individual meters for each apartment. Mr. Kleve, also stated that it makes no difference what the individual is using for electricity, the rent will remain the same and is not dependent on the usage of electricity. Mr. Kleve also indicated that the building will remain under this program for 45 years. Ms. Farris stated that Staff determined that the gas system meets the exception to individual metering as defined in ARSD 20:10:26:04 (6). However, upon further conversation with the developer and review of plans and specifications of the building it was determined that the cooling system for the building consisted of individual air conditioner units for each apartment. Based on that information, staff informed TRK it would need to file for a variance from the master metering rules in order to master meter the electric system as designed. On June 21, 2004, the commission received a request for a variance of the individual metering requirement contained in ARSD 20:10:26. ARSD 20:10:26:03 states individual metering is required for new multiple-occupancy buildings unless a formal regulation of the funding agency requires master metering. The South Dakota Housing Development Authority has no master metering rules for this project. Ms. Farris recommended based on the administrative rules that the variance be denied and the project move forward with individual meters for the apartments.
Chairman Sahr moved to grant the variance with the condition that the housing being constructed remain under the current rent structure and if it does change the variance be subject to the review of the Commission. Chairman Sahr indicated that the administrative rules did allow for variances when consistent with the chapter in question.
Motion failed for lack of a second.
Commissioner Burg moved to deny the variance and requested that staff talk to South Dakota Housing Development Authority about amending regulations to be compatible with the commission's rules regarding master-metering.
Commissioner Hanson was concerned about the second half of the motion and felt the regulations were fine and did not need to be changed. Commissioner Hanson also expressed the concern that publicly financed housing be individually metered so that energy consumption could be monitored and conserved.
Commissioner Burg amended his motion to deny the variance. Commissioner Hanson seconded and Chairman Sahr dissented. Motion passed 2-1.
Natural Gas
Mr. Jacobson stated that this is the final rate suspension. Mr. Jacobson recommended further suspending the tariff for an additional 60 days. Commissioner Burg moved to further suspend the tariff for 60 days in NG04-001. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Jacobson stated that a June 22, 2004, meeting the Commission suspended the imposition of the tariff for 90 days beyond June 7, 2004. The June 7, 2004, date was an error and the date should have been July 7, 2004. Ms. Tamie Aberle, Montana-Dakota Utilities Co., had no objection to approving the July 7, 2004, date. Mr. Jacobson recommended changing the date to July 7, 2004.
Chairman Sahr moved to suspend the tariff 90 days beyond July 7, 2004, in NG04- 004. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Tamie Aberle, Montana-Dakota Utilities Co., stated that the tariff revisions are correcting errors on tariff sheets submitted in Docket NG02-011. The two tariff sheets proposed to be revised relate to Optional Seasonal Gas Service Rate 72 and the Distribution Delivery Stabilization Mechanism Rate 87. Mr. Jacobson recommended approving the tariff revisions.
Commissioner Burg moved to approve the tariff revisions in NG04-005. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Telecommunications
See Transcript of July 20, 2004, 9:30 a.m. Commission Meeting of TC03-192
Commissioner Burg moved to approve the settlement agreement between Midcontinent Communications and Interstate Telecommunications Cooperative, Inc., and dismiss and close the docket in TC03-192. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
See Transcript of July 20, 2004, 9:30 a.m. Commission Meeting of TC04-077 and TC04-085
Commissioner Burg moved to approve the stipulation subject to approval of the commission order. Commissioner Hanson seconded and Chairman Sahr dissented.
Commissioner Burg withdrew his motion and Commissioner Hanson withdrew his second.
Chairman Sahr moved to defer action on TC04-077. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
See Transcript of July 20, 2004, 9:30 a.m. Commission Meeting of TC04-077 and TC04-085
Chairman Sahr moved to defer action on TC04-085. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
See Transcript of July 20, 2004, 9:30 a.m. Commission Meeting of TC04-090
Commissioner Hanson moved to grant Sancom, Inc. d/b/a Mitchell Telecom's Certificate of Authority, subject to a continuous $25,000.00 surety bond. Chairman Sahr seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Wiest recommended approval of the Amendment in TC04-096.
Chairman Sahr moved to approved the Amendment in TC04-096. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Ms. Wiest recommended approval of the Agreement in TC04-100.
Chairman Sahr moved to approved the Agreement in TC04-100. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Farris stated that Acceris Communications Corp. (Acceris) had submitted an application for a Certificate of Authority in accordance with the administrative rules of South Dakota. Acceris intends to provide competitive local exchange services through the facilities of incumbent local exchange carriers, as well as unbundled network elements. Acceris intends to offer its services initially in the territory now served by Qwest Corporation. It has made all of staff recommended changes to the tariff. Acceris has requested a waiver from 20:10:32:03(11), which requires them to submit current balance sheet, income statement, and cash flow statements. The applicant will not require prepayments, advance payments, or deposits. Ms Farris recommended the Commission approve the request for a waiver of the financial information and also approve the Certificate of Authority for local exchange services for Acceris Communications Corp. with the requirement it comply with the rural safeguards .
Commissioner Hanson moved to grant the waiver of ARSD 20:10:32:03(11) and grant Acceris Communications Corp.'s Certificate of Authority with restrictions from offering prepaid calling cards or accepting customer deposits or advance payments and subject to rural safeguards. Chairman Sahr seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Farris indicated that she should have indicated the effective date is August 11, 2004, in docket TC04-102.
Commissioner Hanson moved to amend his above stated motion in TC04-102 to include an effective date of August 11, 2004. Chairman Sahr seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Farris stated that Telecom Management, Inc. d/b/a Pioneer Telephone had submitted an application for a Certificate of Authority in accordance with the administrative rules of South Dakota. The applicant intends to provide resold interexchange long distance services to residential and business customers throughout South Dakota. It has made all staff recommended changes to the tariff. The applicant has agreed to restrictions from offering prepaid services and collecting deposits and advance payments. The applicant submitted a balance sheet, and has requested a waiver from ARSD 20:10:24:02(8), which requires it to submit current income statement and cash flow statements. The application was submitted June 23, 2004. Therefore, it is restricted from providing service until August 23, 2004. Ms. Farris recommended the Commission approve the request for a waiver of the financial information and also approve the Certificate of Authority for Telecom Management, Inc. d/b/a Pioneer Telephone with restrictions on deposits, advance payments, and prepaid calling cards, with an effective date of August 23, 2004.
Commissioner Burg moved to grant the waiver of ARSD 20:10:24:02(8) and grant Telecom Management, Inc. d/b/a Pioneer Telephone's Certificate of Authority with restrictions from offering prepaid calling cards or accepting customer deposits or advance payments with an effective date of August 23, 2004. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Ms. Darla Rogers and Ms. Marlene Bennett, Local Exchange Carriers Association (LECA), stated that LECA filed revised switched access tariff pages. The purpose of these revisions is to implement changes in rates as necessitated by revisions in member companies' revenue requirements and access minutes of use. LECA requests that the revised rates become effective August 1, 2004. Ms. Rogers indicated that notice had been sent to all interexchange carriers and Ms. Bennett has an affidavit with her to that affect. Ms. Bennett indicated that the companies would keep track of minutes that they had actually billed over the period of time that the rates will have been effect and would provide that information to LECA if there is a refund due. Ms. Cremer stated that no one has intervened in this docket. Ms. Cremer recommended that the Commission let the rates go into effect subject to refund with interest until the switched access rates are approved by the Commission.
Chairman Sahr moved to not suspend the switched access rates o allow the rates to go into effect on August 1, 2004, subject to refund with interest until such time as the final decision on the requested rate changes is issued.. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Cremer stated that no one has intervened in this docket. Melissa Thompson, Qwest Corporation, stated that on July 6, 2004, Qwest Corporation (Qwest) filed a revision to its Access Service Tariff. These revisions establish a simple, easy-to-understand Expedite Order Charge that will apply when a customer requests a service date that is prior to the standard interval service date or when a customer requests an earlier service date on a pending standard or negotiated interval order. Qwest requests this filing to be effective July 31, 2004. Mr. Best recommended approving the tariff revisions.
Commissioner Burg moved to approve the tariff revisions with an effective date of July 31, 2004, in TC04-128. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
