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South Dakota Public Utilities Commission Meeting

Tuesday, August 31, 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 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, Jim Mehlhaff, Christine Hibbeler, Michele Farris, and Keith Senger; and Administrative Secretary Tina Douglas.

Also present were Margo Northrup, Riter, Rogers, Mayer, Hofer, Wattier & Brown representing McCook Cooperative Telephone, Midstate Communications, Inc., RT Communications, Inc., RC Communications, Inc., Cheyenne River Sioux Tribe Telephone Authority, Stockholm-Strandburg Telephone Company, Venture Communications Cooperative, Golden West Telecommunications Coop, Western Telephone Company, Valley Telecommunications Cooperative Association, Inc., West River Cooperative Telephone Company, Vivian Telephone Company, Kadoka Telephone Company, Bridgewater-Canistota Independent Telephone Company, Union Telephone Company, Armour Independent Telephone Company, Sioux Valley Telephone Company, and Tri-County Telcom, Inc.; Bob Miller, South Dakota Electric Utility Companies; Brett Koenecke, May, Adam, Gerdes and Thompson representing Xcel Energy and Midcontinent Communications; Tim Goodwin, Larry Toll, and Colleen Sevold, Qwest Corporation; Talbot Wieczorek, Gunderson, Paul, Goodsell & Nelson, representing RCC Minnesota, Inc.; and Marv Truhe and Kyle White, Black Hills FiberCom LLC.

Joining the meeting by telephone were Jeff Carmen, and Melissa Thompson, Qwest Corporation; Greta Knight, Jim Howard, Suzan Stewart, and Debbie Kutsunis, MidAmerican Energy Company; Cindy Grosvenor, Telec Consulting; Rod Bowar, Kennebec Telephone; Meredith Moore, Cutler and Donahoe, representing Alliance Communications Cooperative, Inc.; Tom Welk, Boyce, Greenfield, Pashby & Welk LLP, representing Qwest Corporation; Bruce Hanson, Fort Randall Telephone Company; and Jim Wilcox, Xcel Energy.

Administration

1. Approval of the Minutes of the Commission Meetings Held on June 22, July 6, and July 20, 2004. (Staff: Tina Douglas.)

This item was deferred until next meeting.

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 1713 consumer contacts during 2004. Since the last report was prepared for the August 17, 2004, Commission meeting, 79 of these contacts had been received; 36 contacts involved telecommunications services; 12 contacts involved electricity issues; 4 contacts involved natural gas issues; 1 contact involved gas and electric services; 14 contacts involved cellular phone issues; 1 contact involved the Do Not Call registry; and 11 contacts involved miscellaneous services not regulated by the PUC. In 2004, 1346 of the 1713 complaints registered have been resolved informally. In 2003, 1989 of the 2579 complaints registered have been resolved informally.

2. CE04-001 In the Matter of the Complaint filed by Kristin Boxwell, Sioux Falls, South Dakota, against Xcel Energy Regarding Xcel Energy's Refusal to Enter into a Payment Arrangement Post-Disconnection. (Staff Analyst: Jim Mehlhaff, Staff Attorney: Karen Cremer)

Mr. Brett Koenecke, Xcel Energy, asked that Xcel Energy's Motion to Dismiss be granted. Mr. Koenecke stated that the Complainant was disconnected according to rules and regulations. Complainant is asking to be reconnected and wants to start making payments after she is reconnected which is not in accordance with the rules and regulations. Mr. Mehlhaff stated that he spoke with the Complainant's attorney and told him that the Commission Meeting would be held on the August 31, 2004. Ms. Cremer stated that she also had tried to contact Complainant's attorney and could not reach him. Ms. Cremer recommended granting Xcel Energy's Motion to Dismiss.

Chairman Sahr moved to grant Xcel Energy's Motion to Dismiss. Commissioner Burg seconded. Motion passed 2-0.

3. CT04-001 In the Matter of the Complaint filed by Chris Haugo on behalf of Haugo Broadcasting, Rapid City, South Dakota, against McLeodUSA Telecommunications Services, Inc. Regarding Unauthorized Billing. (Staff Analyst: Jim Mehlhaff, Staff Attorney: Karen Cremer)

Mr. Mehlhaff stated that he talked to the Complainant and there is an offer to settle he parties still have some details to work out. Mr. Mehlhaff recommended that this docket be deferred.

Chairman Sahr moved to defer docket CT04-001. Commissioner Burg seconded. Motion passed 2-0.

4. CT04-002 In the Matter of the Complaint filed by Jerry Galloway on behalf of Bold Venture, LLC, Sioux Falls, South Dakota, against McLeodUSA Telecommunications Services, Inc. Regarding Over Billing for Services. (Staff Analyst: Jim Mehlhaff, Staff Attorney: Karen Cremer)

Mr. Mehlhaff stated that he talked to the Complainant and there is an offer to settle he parties still have some details to work out. Mr. Mehlhaff recommended that this docket be deferred.

Chairman Sahr moved to defer docket CT04-002. Commissioner Burg seconded. Motion passed 2-0.

Electric

1. EL04-017 In the Matter of the Filing by Homestake Mining Company of California Regarding a Request for Mediation between Homestake Mining Company of California and Black Hills Corporation. (Staff Analyst: Dave Jacobson, Staff Attorney: Rolayne Wiest)

Mr. Jacobson stated that all the parties have reached a resolution pursuant to the existing contract. Mr. Jacobson recommended that docket EL04-017 be closed.

Commissioner Burg moved to close docket EL04-017. Chairman Sahr seconded. Motion passed 2-0.

Natural Gas

NG04-006 In the Matter of the Filing by Montana-Dakota Utilities Co., a Division of MDU Resources Group, Inc. for Approval of an Amendment to a Contract with Deviation with Merillat Corporation. (Staff Analyst: Dave Jacobson, Staff Attorney: Karen Cremer)

Mr. Jacobson stated that Montana-Dakota Utilities Co. (MDU) filed an application for an amendment to its existing contract with Merillat Corporation which will expire on October 31, 2004. The proposed amendment provides for service to continue to Merillat for a one year period ending October 31, 2005, under the terms of the original contract. Mr. Jacobson recommended approval of the amendment to the contract and the tariff revisions.

Chairman Sahr moved to approve the amendment to the contract and the tariff revisions in NG04-006. Commissioner Burg seconded. Motion passed 2-0.

NG04-007 In the Matter of the Filing by MidAmerican Energy Company for Approval of Tariff Revisions. (Staff Analyst: Dave Jacobson, Staff Attorney: Karen Cremer)

Ms. Debbie Kutsunis, MidAmerican Energy Company, stated the tariff revisions will make backbilling customers in cases of incorrect billing an option instead of mandatory. MidAmerican has recently discovered a problem with certain electronic meter reading devices which caused customers to be billed for less gas than actually used. MidAmerican proposes to not backbill these customers for the usage not previously billed for. Mr. Jacobson stated the revisions are pursuant the Administrative Rules. Mr. Jacobson recommended approval of the tariff revisions.

Commissioner Burg moved to approve the a tariff revisions in NG04-007. Chairman Sahr seconded. Motion passed 2-0.

Telecommunications

1. 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: John Smith)

Mr. Talbot Wieczorek, RCC Minnesota, Inc., stated that this docket was scheduled to be heard on July 27, 28, and 29, 2004, he matter has been rescheduled for October 14 and 15, 2004. On August 25, 2004, RCC filed a Request For Opportunity to File Surreal Testimony requesting a filing deadline of September 14, 2004, for such testimony. Mr. Wieczorek also stated that he had talked to Mr. Coit, SDTA, and he does not object to this request. Ms. Meredith Moore, Alliance, LLC had no objection to this request. Margo Northrup representing McCook Cooperative Telephone, Midstate Communications, Inc., RT Communications, Inc., RC Communications, Inc., Cheyenne River Sioux Tribe Telephone Authority, Stockholm-Strandburg Telephone Company, Venture Communications Cooperative, Golden West Telecommunications Coop, Western Telephone Company, Valley Telecommunications Cooperative Association, Inc., West River Cooperative Telephone Company, Vivian Telephone Company, Kadoka Telephone Company, Bridgewater-Canistota Independent Telephone Company, Union Telephone Company, Armour Independent Telephone Company, Sioux Valley Telephone Company, and Tri-County Telcom, Inc., stated that her clients do not object to this request.

Commissioner Burg moved to grant RCC's Request for Opportunity to File Surreal Testimony in TC03-193 and to set the filing deadline of September 14, 2004. Chairman Sahr seconded. Motion passed 2-0.

2. TC04-083 In the Matter of the Application of Qwest Communications Corporation for a Certificate of Authority to Provide Local Exchange Services in South Dakota. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)

Ms. Cremer stated that staff's position has not changed since the August 17, 2004, Commission Meeting. Ms. Farris recommended that Qwest Communications Corporation be granted its Certificate of Authority to provide service in existing Qwest territory with rural safeguards, with the $25,000.00 continuing bond requirements and also grant a waiver from 20:10:32:03:11.

Chairman Sahr moved to recess to Executive Session. Commissioner Burg seconded.

Chairman Sahr moved to reconvene the Commission Meeting. Commissioner Burg seconded.

Chairman Sahr moved to grant the waiver a of 20:10:32:03:11 and to also grant Qwest Communications Corporation's Certificate of Authority to provide service in existing Qwest territory with rural safeguards, and subject to a continuous $25,000.00 surety bond. Commissioner Burg seconded.

3. In the Matter of the Dockets Requesting Federal Universal Service Support Certification

TC04-136 In the Matter of the Request of West River Cooperative Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-138 In the Matter of the Request of Kennebec Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-139 In the Matter of the Request of Interstate Telecommunications Cooperative, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-140 In the Matter of the Request of Heartland Telecommunications Company of Iowa d/b/a Hickory Tech Corporation for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-141 In the Matter of the Request of Consolidated Telcom for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-146 In the Matter of the Request of Faith Municipal Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-150 In the Matter of the Request of James Valley Cooperative Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-151 In the Matter of the Request of Western Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-152 In the Matter of the Request of Tri-County Telcom, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-153 In the Matter of the Request of Roberts County Telephone Cooperative Association and RC Communications, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-154 In the Matter of the Request of Stockholm-Strandburg Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-155 In the Matter of the Request of Valley Telecommunications Cooperative Association, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-156 In the Matter of the Request of Golden West Telecommunications Cooperative, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-157 In the Matter of the Request of Vivian Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-158 In the Matter of the Request of Kadoka Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-159 In the Matter of the Request of Union Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-160 In the Matter of the Request of Bridgewater-Canistota Independent Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-161 In the Matter of the Request of Armour Independent Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-162 In the Matter of the Request of Sioux Valley Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-163 In the Matter of the Request of McCook Cooperative Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-164 In the Matter of the Request of Splitrock Properties, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-165 In the Matter of the Request of Alliance Communications Cooperative, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-166 In the Matter of the Request of Northeast Nebraska Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-167 In the Matter of the Request of City of Brookings Municipal Telephone Department for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)


TC04-168 In the Matter of the Request of Venture Communications Cooperative for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-169 In the Matter of the Request of Midstate Communications, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-170 In the Matter of the Request of Three River Telco for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-171 In the Matter of the Request of Jefferson Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-172 In the Matter of the Request of Beresford Municipal Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-173 In the Matter of the Request of RT Communications, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-174 In the Matter of the Request of West River Telecommunications Cooperative for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-175 In the Matter of the Request of West River Telecommunications Cooperative (Mobridge) for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-176 In the Matter of the Request of Mount Rushmore Telephone Company and Fort Randall Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-177 In the Matter of the Request of Valley Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-178 In the Matter of the Request of Red River Telecom, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC04-179 In the Matter of the Request of Cheyenne River Sioux Tribe Telephone Authority for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

Mr. Best stated that each of these companies filed a request estimating how much Universal Service Support it may receive in the coming year and also showed estimated expenses. In each docket the expenses exceeded the monies the company may receive for Universal Service Support. In each docket the company stated all the monies it receives for Universal Service Support will be used in the appropriate manner as required by the FCC. Mr. Best recommended that the Commission grant certification in each docket as filed.

Commissioner Burg moved that the Commission provide a letter of certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the plan for the use of federal universal services support as proposed in dockets TC04-136, TC04-138, TC04-139, TC04-140, TC04-141, TC04-146, TC04-150, TC04-151, TC04-152, TC04-153, TC04-154, TC04-155, TC04-156, TC04-157, TC04-158, TC04-159, TC04-160, TC04-161, TC04-162, TC04-163, TC04-164, TC04-165, TC04-166, TC04-167, TC04-168, TC04-169, TC04-170, TC04-171, TC04-172, TC04-173, TC04-174, TC04-175, TC04-176, TC04-177, TC04-178, and TC04-179. Chairman Sahr seconded. Motion passed 3-0.

Meeting adjourned.

___________________________________
Tina Douglas

Administrative Secretary