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South Dakota Public Utilities Commission Meeting
Tuesday, October 26, 2004 at 9:30 A.M.
State Capitol 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 Attorneys Rolayne Ailts Wiest, Karen Cremer and Sara Harens; Staff Analysts Harlan Best, Dave Jacobson, Jim Mehlhaff, Michele Farris, Sue Schaefer, and Keith Senger; and Administrative Secretary Tina Douglas.
Also present were Thomas Dixon, MCI; Larry Toll and Melissa K. Thompson, Qwest Corporation; and Dave Gerdes, May, Adam, Gerdes, and Thompson representing MCI;
Joining the meeting by telephone were Tom Welk, Boyce, Greenfield, Pashby & Welk LLP, representing Qwest Corporation; Colleen Sevold and Laurel Burke, Qwest Corporation; Letty Friesen, AT&T; and Ryan Taylor, Cutler & Donahoe, representing Hills Telephone Company, Inc.
Administration
1. Approval of the Minutes of the Commission Meeting Held on October 12, 2004 and the Ad Hoc Meeting Held on September 30, 2004. (Staff: Tina Douglas.)
Chairman Sahr moved to approve the minutes of the Commission Meeting Held on October 12, 2004 and the Ad Hoc Meeting Held on September 30, 2004. Commissioner Burg seconded and Commissioner Hanson 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 2033 consumer contacts during 2004. Since the last report was prepared for the October 12, 2004, Commission meeting, 63 of these contacts had been received; 22 contacts involved telecommunications services; 8 contacts involved electricity issues; 6 contacts involved natural gas issues; 2 contacts involved gas and electric services; 7 contacts involved cellular phone issues; 7 contacts involved the Do Not Call registry; and 11 contacts involved miscellaneous services not regulated by the PUC. In 2004, 1705 of the 2033 complaints registered have been resolved informally. In 2003, 2102 of the 2579 complaints registered have been resolved informally.
Mr. Mehlhaff stated that he has spoken to both parties, they have come to an agreement and he has received a copy of the settlement agreement. Mr. Mehlhaff recommended that the docket be dismissed and closed.
Chairman Sahr moved to dismiss and close docket CT04-001. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Electric
Mr. Jacobson stated that the existing contract with the City of Bruce will expire on November 1, 2004, and that the new agreement does not contain any deviations from Otter Tail's currently filed tariff. Mr. Jacobson recommended that the tariff revisions be approved.
Commissioner Burg moved to approve the tariff revisions in EL04-029. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Telecommunications
Mr. Smith stated that three of parties could not be present at this meeting and they requested that this docket be deferred. Mr. Smith recommended deferring this docket.
Chairman Sahr moved to defer docket TC03-191. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Transcript for October 26, 2004, Commission Meeting (TC04-110 and TC04-201)
Chairman Sahr moved to approve the QPAP, as revised and modified, designate a tier for PO-20, establish a low-volume differentiated benchmark for PO-20, and allow PO-20 a measurement stabilization for no more than three months with the implementation of each phase. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Transcript for October 26, 2004, Commission Meeting (TC04-144)
Chairman Sahr moved to deny Qwest's Motion to Dismiss and approve the Agreements in TC04-144. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Harens stated that the Amendment has been properly filed, has been properly executed and does not appear to contain discriminatory provisions, no comments were filed, and recommended approval of the Amendment.
Commissioner Hanson moved to approve the Amendment in TC04-199. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.
Transcript available at the Public Utilities Commission Office.
Chairman Sahr moved to approve the Amendments to Exhibit B and QPAP. Commissioner Hanson seconded and Commissioner Burg concurred. Motion passed 3-0.
Ms. Harens stated that the Amendment has been properly filed, has been properly executed and does not appear to contain discriminatory provisions, no comments were filed, and recommended approval of the Amendment.
Commissioner Hanson moved to approve the Amendment in TC04-202. Commissioner Burg seconded and Chairman Sahr concurred. Motion passed 3-0.
Ryan Taylor representing Hills Telephone Company, Inc. (Hills) stated that the docket relates to several previous dockets which have been filed with the Commission all relating to the sale of the Valley Springs, East Valley Springs and North Larchwood local exchanges from Sioux Valley Telephone to Hills. This docket involves 557 access lines which is a relatively small number of lines, so Hills is asking for an ongoing exemption from developing company-specific cost-based switched access rates. Mr. Senger stated that on July 8, 2004, the Commission issued an order approving the sale of the Valley Springs, East Valley Springs and North Larchwood local exchanges from Sioux Valley Telephone Company to Hills Telephone Company, Inc. On Sept 27, 2004, Hills Telephone Company filed a petition in accordance with ARSD 20:10:27:11 requesting an exemption from developing company-specific cost-based switched access rates. Mr. Senger further stated that Hill is also requesting, in accordance with ARSD 20:10:27:12, to adopt a switched access rate based on the statewide average cost for telecom companies with under 100,000 access lines. Hills is requesting this as an ongoing exemption. Hills' tariff filed with this petition establishes rates using interim cost studies that have not yet been finalized by this Commission. Therefore, staff believes that these rates if approved by the Commission should be subject to refund with interest. Mr. Senger recommended granting the exemption, allow Hills to adopt a rate based on the statewide average costs for telecom companies with fewer than 100,000 access lines and approve the tariff and rates subject to refund with interest, with the refund being subject to Commission approval.
Chairman Sahr moved to approve the tariff and rates subject to refund with interest and also grant the ongoing exemption from developing company-specific cost-based switched access rates and also allow Hills to adopt a rate based on the statewide average costs for telecom companies with fewer than 100,000 access lines. Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
