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South Dakota Public Utilities Commission Meeting
Tuesday, October 12, 2004 at 10:00 A.M.
State Capitol Building, Room 412
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Vice Chairman Gary Hanson called the meeting to order. Also present were Executive Director Pamela Bonrud; Commission Advisor Greg Rislov; Commission Attorneys Rolayne Ailts Wiest and John Smith; Staff Attorneys Karen Cremer and Sara Harens; Staff Analysts Harlan Best, Dave Jacobson, Jim Mehlhaff, Michele Farris, Steve Wegman, Martin Bettmann, and Keith Senger; and Administrative Secretary Tina Douglas.
Also present were Melanie Acord, MidAmerican Energy; Larry Toll, Val Stone, and Colleen Sevold, Qwest Corporation; and Dave Gerdes, May, Adam, Gerdes, and Thompson representing Montana-Dakota Utilities Co. and MCI;
Joining the meeting by telephone were Chairman Bob Sahr; Commissioner Jim Burg; Deputy Executive Director Heather Forney; Melissa Thompson, Qwest Corporation; Karen Huizenga, Greg Snakenberg, Suzan Stewart, Jim Howard, Marv Sorenson, Jim Hegg, Lisa Bausch, Dave Badura, and Donna Collins, MidAmerican Energy; Brian Iverson, Black Hills Corporation; Jim Wilcox, Xcel Energy; Mark Meierhenry, Danforth, Meierhenry & Meierhenry representing Superior Renewable Energy; Larry Hettinger, Heartland Consulting; and Don Ball, Montana-Dakota Utilities Co.
Administration
1. Approval of the Minutes of the Commission Meeting Held on September 14, 2004 and the Ad Hoc Meetings Held on September 22, and September 30, 2004. (Staff: Tina Douglas.)
Commissioner Hanson moved to approve the minutes of the Commission Meetings held on September 14 and September 22, 2004. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.
Commissioner Hanson moved to defer the minutes of the Commission Meeting held on September 30, 2004 until the next meeting. 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 1970 consumer contacts during 2004. Since the last report was prepared for the September 14, 2004, Commission meeting, 177 of these contacts had been received; 73 contacts involved telecommunications services; 25 contacts involved electricity issues; 11 contacts involved natural gas issues; 4 contacts involved gas and electric services; 15 contacts involved cellular phone issues; 4 contacts involved the Do Not Call registry; and 54 contacts involved miscellaneous services not regulated by the PUC. In 2004, 1653 of the 1970 complaints registered have been resolved informally. In 2003, 2102 of the 2579 complaints registered have been resolved informally.
Ms. Cremer had talked to Mr. Larson and he had a previous appointment and asked that this matter be deferred. Mr. Larson also indicated to Ms. Cremer that he is sending in a letter amending his complaint. Karen Huizenga, MidAmerican Energy, had no objection to deferring
this matter. Ms. Cremer had no objection to deferring this matter.
Chairman Sahr moved to defer Docket CN04-001. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Mehlhaff spoke to Mr. Galloway and he indicated that this matter had been resolved. Mr. Mehlhaff recommended that the docket be dismissed and closed.
Commissioner Hanson moved that Docket CT04-002 be dismissed and closed. Chairman Sahr seconded and Commissioner Burg concurred. Motion passed 3-0.
Electric
Mark Meierhenry representing Superior Renewable Energy LLC (Superior), stated that Superior requested the Commission grant Motion to Compel because of a confidentiality agreement that Montana-Dakota Utilities Co. (MDU) has with other parties. David Gerdes representing Montana-Dakota Utilities Co. stated MDU has a confidentiality agreement with other parties involving a Vision 21 Feasibility Study in North Dakota. Ms. Cremer stated that staff had no objection to granting the Motion to Compel. Staff will have Superior and MDU review the Order before it is issued.
Chairman Sahr moved to grant Superior Renewable Energy LLC's Motion to Compel with staff's recommendation that both parties look at the Order before it is issued. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Smith stated that statute appeared to be broad enough so that the Commission could assess a filing fee. Mr. Smith also stated that Montana-Dakota Utilities would be exempt from being assessed a filing fee but he thought that Superior could be assessed a filing fee. Mr. Smith recommended that the question of assessing a filing fee should be deferred.
Chairman Sahr moved to defer the question of assessing a filing fee in Docket EL04-026. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Brian Iverson, Black Hills Corporation, stated that in 1977 and 1984, the South Dakota Public Utilities Commission approved applications by Black Hills Power, Inc. (BHP) allowing assumption of the obligation to pay principal, interest and premiums due on bonds issued by Pennington County, South Dakota, Weston and Campbell Counties in Wyoming and the City of Gillette. The bond proceeds were used to pay for pollution control equipment on generating units located within the area of the issuer's jurisdiction. The initial bonds were subsequently refunded by BHP and new bonds were issued. In 1992, the Commission approved BHP's assumption of obligation under the new bonds. BHP now requests to refund the new bonds by entering into loan agreements to assume the liability for bonds to be issued by the above Counties which will be used to refund the bonds which were the subject of the Commission's 1992 Order. Mr. Jacobson recommended that the Commission issue an Order authorizing Black Hills Power, Inc. to enter into a loan agreement and assume liability of the payment of pollution control revenue refunding bonds.
Commissioner Hanson moved to issue an order that authorizes Black Hills Power, Inc. to enter into a loan agreement and assume liability of the payment of pollution control revenue refunding bonds. Chairman Sahr seconded and Commissioner Burg concurred. Motion passed 3-0.
Natural Gas
Melanie Acord, MidAmerican Energy Company, stated that on June 1, 2004, MidAmerican Energy Company (MidAmerican) filed an Interruptible Gas Rate Plan with the Commission as a 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. This plan proposes to address the Commission's concerns expressed in Docket NG02-003. In the Gas Rate Plan, MidAmerican proposes to retain interruptible rates o change the methodology used in determination of the rates 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 rate increase proceeding NG04-001, which is November 29, 2004. Mr. Jacobson stated that this revision will affect approximately 120 customers. All affected customers have been contacted, and so far there has only been one formal negative response and staff has assisted the customer in exploring alternatives. Ms. Acord stated that to date only 19 responses have been received by MidAmerican out of 125 notices sent to customers. Mr. Jacobson recommended approval of the MidAmerican's Interruptible Gas Rate Plan with an effective date of November 29, 1004, with the condition that any customer in the process of converting over to the proposed rates and showing good cause why they are not able to complete the process by November 29, 2004, be given the time necessary, on an individual case basis, to complete the process of changing rates before being served the default firm service rate.
Commissioner Burg moved to approve MidAmerican Energy Company's Interruptible Gas Rate Plan with an effective date of November 29, 2004, with the condition that any customer in the process of converting over to the proposed rates and showing good cause why they are not able to complete the process by November 29, 2004, be given the time necessary, on an individual case basis, to complete the process of changing rates before being served the default firm service rate in NG04-003. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Suzan Stewart, MidAmerican Energy Company (MidAmerican), stated that the Commission requires MidAmerican to file rates every six months for Incentive Gas Supply Procurement Program (IGSPP) and it proposes to revise the calculation of actual costs in the November 2003 through April 2004 IGSPP. MidAmerican proposes to utilize estimated final interstate pipeline rates for Northern Natural Gas Company in place of actual interim rates now in effect in an effort to more accurately reflect costs that will result from Northern's current rate case proceeding before the FERC. Mr. Jacobson recommended approval to withdraw MidAmerican's IGSPP six month filing and replace it with the revised report.
Commissioner Hanson moved to approve the withdrawal of MidAmerican Energy Company's Incentive Gas Supply Procurement Program six month filing and replace it with MidAmerican Energy Company's revised filing. Chairman Sahr seconded and Commissioner Burg concurred. Motion passed 3-0.
Telecommunications
Ms. Cremer stated that the Commission a September 14, 2004 meeting reconsidered its decision and reopened the docket and now Cognigen filed a letter requesting withdrawal of the application. Ms. Cremer recommended accepting the withdrawal of Cognigen's application and to close the docket.
Commissioner Burg moved to accept Cognigen Networks Inc.'s withdrawal of its application and close docket TC04-076. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Ms. Farris stated that on August 2, 2004, Intandem Communications Corp. (Intandem) filed an application for a Certificate of Authority to provide interexchange telecommunications services in South Dakota. Intandem is seeking authority to operate as a reseller of intrastate telecommunications services on a statewide basis. Intandem intends to provide MTS, in-WATS, out-WATS, and calling card services throughout South Dakota. Ms. Farris recommended the Commission approve the Certificate of Authority of Intandem Communications Corp. with restrictions from offering prepaid calling cards or accepting customer deposits or advance payments and grant the waiver from 20:10:24:02(08).
Commissioner Hanson moved to grant the waiver of ARSD 20:10:24:02(08) and grant Intandem Communications Corp.'s Certificate of Authority with restrictions from offering prepaid calling cards or accepting customer deposits or advance payments. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.
Melissa Thompson, Qwest Corporation, asked that this docket be deferred until the next meeting. Dave Gerdes, representing MCI, stated they had no objection. Ms. Wiest had no objection.
Commissioner Hanson moved to defer this docket until the next Commission Meeting. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.
4. In the Matter of Approving Amendments and Agreements in TC04-180, TC04-185, TC04-186, TC04-191, TC04-192, TC04-193, and TC04-196
Ms. Wiest recommended approval of the Agreements and Amendments in TC04-180, TC04-185, TC04-186, TC04-191, TC04-192, TC04-193, and TC04-196.
Chairman Sahr moved to approved the Agreements and Amendments in TC04-180, TC04-185, TC04-186, TC04-191, TC04-192, TC04-193, and TC04-196. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Mr. Senger stated that on August 10, 2004, VCI Company (VCI) filed an application for a Certificate of Authority to provide facilities-based and resold local exchange within the State of South Dakota. VCI's application requested a waiver from filing financial statements and has agreed to restrictions from accepting customer deposits and advance payments from offering prepaid services. Mr Senger 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 VCI Company with restrictions from offering prepaid calling cards or accepting customer deposits or advance payments and subject to rural safeguards.
Commissioner Burg moved to grant the waiver of ARSD 20:10:32:03(11) and grant VCI Company'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 Hanson concurred. Motion passed 3-0.
Mr. Senger stated that on November 13, 2003, the Commission issued an Order granting Level 3 an exemption from developing company specific cost-based switched access rates and approved a request to mirror the Qwest Corporation tariffed intrastate access rates. On May 13, 2004, the Commission issued an Order approving Qwest's request to reduce the carrier common line. Level 3 filed on August 27, 2004, tariff revisions to reduce its Carrier Common Line rate to mirror Qwest's rate. Mr. Senger recommended approval of the revisions to the Intrastate Switched Access Tariff.
Commissioner Hanson moved to approve the revisions to Level 3 Communications LLC's Intrastate Switched Access Tariff in TC04-200. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.
Mr. Best stated that Kadoka Telephone Company, filed on September 21, 2004, a revised Switched Access Tariff rates with a effective date of October 20, 2004. Mr. Best recommended approval of the revisions subject to refund with interest, to the Intrastate Switched Access Tariff.
Commissioner Hanson moved to approve the revisions to Kadoka Telephone Company's Intrastate Switched Access Tariff in TC04-203, subject to refund with interest. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
