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South Dakota Public Utilities Commission Meeting
Thursday, September 30, 2004 at 2:00 P.M.
Room 413, State Capitol Building, Pierre, South Dakota
MINUTES OF THE AD HOC COMMISSION MEETING
Chairman Bob Sahr called the meeting to order. Also present were Executive Director Pamela Bonrud; Commission Advisor Greg Rislov; Commission Attorneys John Smith and Rolayne Ailts Wiest; Staff Attorneys Karen Cremer and Sara Harens; Staff Analysts Harlan Best, David Jacobson, and Keith Senger; Court Reporter Cheri Wittler; and Administrative Secretary Tina Douglas.
Also present were Margo Northrup, Riter, Rogers, Wattier & Brown; Bob Mercer, newspaper reporter; Bob Miller, South Dakota Electric Utility Companies; Mark Meierhenry, Danforth, Meierhenry & Meierhenry representing Superior Renewable Energy LLC; and David Gerdes, May, Adam, Gerdes and Thompson representing Montana-Dakota Utilities Co. and Midcontinent Communications.
Joining the meeting by telephone were Vice Chairman Gary Hanson; Commissioner Jim Burg; Mary Lohnes, Midcontinent Communications; Joe Schuele, Martin Group; Ryan Taylor and Meredith Moore, Cutler & Donahoe representing Hills Telephone Company; Don Snyders, Hills Telephone Company; Suzan Stewart, MidAmerican Energy Company; Jeff Decker, Clyde Gross, Alan Dietrich, and Jeff McKinney, NorthWestern Energy; Jim Wilcox and Chris Clark, Xcel Energy; Don Ball, Montana-Dakota Utilities Co.; Larry Hettinger, Heartland Consulting; Brian Iverson and Chris Kilpatrick, Black Hills Corporation; and Dan Daly, Rapid City Journal.
Electric
See Transcript for September 30, 2004, Ad Hoc Commission Meeting
Chairman Sahr moved that the Commission, on its own motion, proceed, with notice, to investigate the matters set forth in Superior's Complaint and, after notice and hearing thereon, to take such action as the Commission shall deem necessary and appropriate. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Chairman Sahr moved to defer the second question dealing with scheduling until the end of the meeting. Commissioner Burg seconded and Commissioner Hanson concurred.
Natural Gas
Jeff Decker, NorthWestern Energy, stated that NorthWestern Energy filed an application to update its fuel retention percentage for natural gas transportation service. NorthWestern Energy's tariff provides that the fuel retention percentage be adjusted annually with the updated percentage to be effective October 1 of each year. Mr. Decker stated that the requested tariff revisions will result in a fuel adjusts percentage of 2.21% as of October 1. Mr. Jacobson stated that this rate is higher than last year his percentage will fluctuate. Mr. Jacobson recommended approval of the tariff revisions in NG04-008.
Commissioner Burg moved to approve the tariff revisions in NG04-008. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Jacobson stated this filing was made by NorthWestern Energy for approval of a contract with deviations for service to Northern Lights Ethanol Plant. The contract to discontinue to charge for company-used and lost and unaccounted for gas was requested by the customer. NorthWestern Energy states the gas line serving the plant is a direct line to the plant and does not come in contact with the NorthWestern distribution system. Mr. Jacobson recommended approval of the contract with deviations and the tariff revisions in NG04-009.
Chairman Sahr moved to approve the tariff revisions in NG04-009. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Telecommunications
Brian Iverson, Black Hills FiberCom, L.L.C. (FiberCom) stated that on July 19, 2004, Black Hills FiberCom, L.L.C. amended its petition for designation as an Eligible Telecommunications Carrier (ETC) in the communities of Belle Fourche, Black Hawk, Lead/Deadwood, Spearfish, Sturgis, and Whitewood. Mr. Best stated that FiberCom currently provides service entirely through its own facilities and through resale or lease of the incumbent carrier's facilities and that FiberCom's petition demonstrates that it meets the nine criteria for ETC designation in a non-rural service area and will advertise the availability of the lifeline and linkup programs. Mr. Best recommended approval for ETC designation.
Chairman Sahr moved that Eligible Telecommunications Carrier status be granted to Black Hills FiberCom, L.L.C. and also 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 in docket TC04-133. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
2. In the Matter of the Request for Federal Universal Service Support Certification in Dockets TC04-194, TC04-195, TC04-197, and TC04-198
Mr. Best stated that each of these companies filed a petition 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 TC04-194, TC04-195, TC04-197, and TC04-198. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Ryan Taylor, representing Hills Telephone Company Inc. (Hills) stated that on September 21, 2004, Hills submitted a Petition for Designation as an Eligible Telecommunications Carrier. Hills requested that the Public Utilities Commission: (1) enter an Order designating Hills as an ETC for its requested ETC service area; and (2) certify to the FCC that Hills will use the federal USF support for its intended purposes only if the sale Sioux Valley Telephone Company is finalized and that Hills' petition demonstrates that it meets the nine criteria for ETC designation in a non-rural service area and will advertise the availability of the lifeline and linkup programs to individuals in its service area. Mr. Best recommended approval for ETC designation subject to the closing of the pending sale from Sioux Valley Telephone to Hills.
Chairman Sahr moved that Eligible Telecommunications Carrier status be granted to Hills Telephone Company subject to closing of the pending sale from Sioux Valley Telephone Company to Hills Telephone Company and also 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 in docket TC04-204. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Electric
See Transcript for September 30, 2004, Ad Hoc Commission Meeting
Chairman Sahr moved to recess the Commission Meeting and to go into Executive Session. Commissioner Hanson seconded and Commissioner Burg concurred.
Chairman Sahr moved to reconvene the Commission meeting. Commissioner Hanson seconded and Commissioner Burg concurred.
Chairman Sahr moved to set the hearing date for March 21 to March 25, 2005, to set the discovery deadline for December 6, 2004, and Superior's deadline for the prefiled testimony for January 6, 2004, and to direct the Commission's General Counsel set the rest of dates, including inclusion of the intervenors into the procedural schedule. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
