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South Dakota Public Utilities Commission Meeting
Tuesday, December 14, 2004 at 9:30 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 John Smith, Karen Cremer, and Sara Harens; Staff Analysts Dave Jacobson, Harlan Best, Michele Farris, Jim Mehlhaff, and Keith Senger; Cheri Wittler, Court Reporter; and Administrative Secretary Tina Douglas.
Also present were Bob Miller, South Dakota Electric Utility Companies; Jim Wilcox, Xcel Energy; Denny Law, Golden West Telecommunications Cooperative, Inc.; Talbot Wieczorek, Gunderson, Palmer, Goodsell & Nelson, representing Western Wireless, Inc.; Darla Rogers, Riter, Rogers, Wattier & Brown, representing Santel Communications Cooperative, Inc., Sioux Valley Telephone Company, Golden West Telecommunications Cooperative, Inc., Vivian Telephone Company, Kadoka Telephone Company, Armour Independent Telephone Company, Bridgewater-Canistota Independent Telephone Company, Union Telephone Company, Brookings Municipal Utilities, Beresford Municipal telephone Company, McCook Cooperative Telephone Company, Valley Telecommunications Cooperative Association, Inc., Midstate Communications, Inc., Interstate Telecommunications Cooperative, Inc., Alliance Communications Cooperative, Inc, Splitrock Properties, Inc., RC Communications, Inc., Roberts County Telephone Cooperative Association, Venture Communications Cooperative and West River Cooperative Telephone Company.
Joining the meeting by telephone were Chairman Bob Sahr; Colleen Sevold and Melissa Thompson, Qwest Corporation; Suzan Stewart, Marv Sorenson, Melanie Acord, and Jean Calligan, MidAmerican Energy; Larry Hettinger, Heartland Consulting; Bill Heaston, PrairieWave Telecommunications Inc.; Jeff Larson, Santel Communications Cooperative; Corey Kasuski, Sioux Valley Energy; Mary Lohnes, Midcontinent Communications Inc.; Doug Eidahl, Vantage Point; Mark J. Ayotte, Briggs and Morgan representing WWC License, LLC; RaeAnn Kelsch, WWC License, LLC; and Steve Wegman, Analyst.
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 2221 consumer contacts during 2004. Since the last report was prepared for the November 30, 2004, Commission meeting, 73 of these contacts had been received; 36 contacts involved telecommunications services; 13 contacts involved electricity issues; 3 contacts involved natural gas issues; 3 contacts involved gas and electric services; 11 contacts involved cellular phone issues; 4 contacts involved the Do Not Call registry; and 3 contacts involved miscellaneous services not regulated by the PUC. In 2004, 1877 of the 2221 complaints registered have been resolved informally. In 2003, 2111 of the 2579 complaints registered have been resolved informally.
Ms. Cremer recommended deferring this docket because it is very close to being settled among the parties.
Chairman Sahr moved to defer CN04-001. Commissioner Hanson seconded. Motion passed 2-0.
Mr. Smith recommended that this docket be deferred so it can be further researched by the Commission.
Chairman Sahr moved to defer CT03-154. Commissioner Hanson seconded. Motion passed 2-0.
Electric
Jim Wilcox, Xcel Energy, stated by Order the Xcel is required to revise tariff rate sheets for the Occasional Delivery Energy Service and Time of Delivery Energy Service every two years. Mr. Wilcox stated that there is a slight increase in the rates. Ms. Farris stated that the Proposed Occasional Delivery Energy Service Rate Code E50 rate sheet is revised to reflect a 50 cents per month higher metering charge and a 0.0006 (six ten-thousandths) cents per kWh decreased energy payment. The energy payment is based on the Company's avoided energy cost estimate. The proposed Time of Delivery Energy Service Rate Code E52 rate sheet is revised to reflect a comparable fifty cents per month increase in metering charge, a .0013 cent per kWh decrease in on-peak energy payment, a 0.0006 cent per kWh decrease in off-peak energy payment and a 0.0023 cent per kWh increase in capacity payment for firm power per on-peak kWh. The energy and capacity payments are revised to reflect the Company's 2004 avoided cost projection. Rate Codes E50 and E52 are available to any small qualifying facility (design capacity of 100KW or less) for the delivery of small amounts of energy. There are no changes to the terms and conditions for rate codes E50 and E52. The revised tariffs are consistent with those approved by the Commission in Docket No. EL02-021, January 3, 2003. Xcel currently has two customers on the E52 rate code, small wind machines at Canova and Carthage. Ms. Farris recommended the Commission approve the tariff sheet revisions for rate codes E50 and E52.
Commissioner Hanson moved to approve the tariff revisions in EL04-030. Chairman Sahr seconded. Motion passed 2-0.
Jim Wilcox, Xcel Energy, stated that Northern States Power Company, d/b/a Xcel Energy, Inc. (Xcel Energy) and Sioux Valley-Southwestern Electric Cooperative, Inc. d/b/a Sioux Valley Energy (SVE) have agreed that SVE will transfer to Xcel Energy eleven lots presently residing north of the territory boundary line and Xcel Energy will transfer to SVE twelve lots presently residing south of the territory boundary line in the Canterbury Heights Addition within the City of Sioux Falls within the SE 3 of Section 12 of Township 101N Range 49W, Minnehaha County, South Dakota. Both parties believe this exchange will promote the efficient and economical use of their respective electric systems. The area is currently under development and no lots have been sold. The developer is aware of the requested change. Ms. Farris recommended the Commission approve the service territory exchange agreement between Xcel Energy and Sioux Valley-Southwestern Electric Cooperative, d/b/a Sioux Valley Energy.
Commissioner Hanson moved to approve the boundary change between Xcel Energy, Inc. and Sioux Valley-Southwestern Electric Cooperative, Inc. d/b/a Sioux Valley Energy in EL04-035. Chairman Sahr seconded. Motion passed 2-0.
Jean Calligan, MidAmerican Energy, stated that MidAmerican Energy Company revised its customer bill format by rearranging information, creating a "Message Center" area on the bill containing information and technical terms and deleting the definitions currently on the back of the bill, and other changes. The changes are the result of customer inquiries and feedback and customer focus groups. Mr. Jacobson stated that the changes make sense and are appropriate and also the revisions comply with South Dakota rules and regulations. Mr. Jacobson recommended approval of the tariff revisions.
Commissioner Hanson moved to approve the tariff revisions in EL04-036. Chairman Sahr seconded. Motion passed 2-0.
Natural Gas and Electric
Marv Sorenson, MidAmerican Energy, stated that MidAmerican Energy Company revised its customer information pamphlets given to new customers to reflect rate changes resulting from the recent rate case and the recently approved Interruptible Gas Rate Plan, and updated information regarding MidAmerican's Purchased Gas Adjustment and Energy Cost Adjustment sections of the pamphlets. Mr. Jacobson stated that the changes make the billing information more accurate and comply with South Dakota rules and regulations. Mr. Jacobson recommended approval of the tariff revisions.
Commissioner Hanson moved to approve the tariff revisions in GE04-001. Chairman Sahr seconded. Motion passed 2-0.
Natural Gas
Ms. Melanie Accord, MidAmerican Energy Company, stated that MidAmerican Energy Company filed an application to eliminate maximum volumetric limits for participation in the Monthly Metered Transportation Gas Pilot Project. MidAmerican was made aware of several schools that wish to participate in the project but whose usage exceeds the current limits and if the revisions are approved these larger schools would be able to participate. Mr. Jacobson stated that these tariff revisions were requested by customers who want to participate in this program. Mr. Jacobson recommended approval of the tariff revisions.
Commissioner Hanson moved to approve the tariff revisions in NG04-011. Chairman Sahr seconded. Motion passed 2-0.
Jean Calligan, MidAmerican Energy Company, stated that these tariff revisions are the same as in docket EL04-036 which was just approved by the Commission. Mr. Jacobson recommended approval of the tariff revisions.
Commissioner Hanson moved to approve the tariff revisions in NG04-012. Chairman Sahr seconded. Motion passed 2-0.
Telecommunications
See Transcript for December 14, 2004, Commission Meeting (TC03-191)
Chairman Sahr moved to defer TC03-191. Commissioner Hanson seconded. Motion passed 2-0.
Mr. Best stated that on May 28, 2004, PrairieWave Community Telephone, Inc., filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association. Staff and PrairieWave Community Telephone, Inc. have reached an agreement for a revenue requirement of $2,267,613.
Commissioner Hanson moved to grant PrairieWave Community Telephone, Inc.'s Switched Access Revenue Requirement of $2,267,613. Chairman Sahr seconded. Motion passed 2- 0.
3. In the Matter of Approving Agreements in TC04-217, TC04-218, TC04-219, TC04-221, TC04-224 and Amendment in TC04-220.
Ms. Harens stated that the above Amendment and Agreements have been properly filed, have been properly executed and do not appear to contain discriminatory provisions, no comments were filed, and recommended approval of the Agreements.
Commissioner Hanson moved to approve the Agreements TC04-224, TC04-221, TC04-219, TC04-218, and TC04-217 and the Amendment in TC04-220. Chairman Sahr seconded. Motion passed 2-0.
4. In the Matter of Petitions for Suspension or Modification of 47 U.S.C. Section 251(b)(2) of the Communications Act of 1934 as Amended in Dockets TC04-038, TC04-044, TC04-45, TC04-046, TC04-047, TC04-048, TC04-049, TC04-050, TC04-052, TC04-054, TC04-055, TC04-056, TC04-060, and TC04-061.
TC04-056 In the Matter of the Petition of RC Communications, Inc. and Roberts County Telephone Cooperative Association for Suspension or Modification of 47 U.S.C. Section 251(b)(2) of the Communications Act of 1934 as Amended. (Staff Analyst: Harlan Best, Staff Attorney: Rolayne Ailts Wiest)
TC04-060 In the Matter of the Petition of Venture Communications Cooperative for Suspension or Modification of 47 U.S.C. Section 251(b)(2) of the Communications Act of 1934 as Amended. (Staff Analyst: Harlan Best, Staff Attorney: Rolayne Ailts Wiest)
Chairman Sahr moved to defer TC04-038, TC04-044, TC04-045, TC04-046, TC04-047, TC04-048, TC04-049, TC04-050, TC04-052, TC04-054, TC04-055, TC04-056, TC04-060, and TC04-061. Commissioner Hanson seconded. Motion passed 2-0.
Ms Farris stated that DakotaComm, LLC (DakotaComm) is a start-up competitive local exchange carrier with no historical cost data. It lacks the necessary financial, technical, or managerial resources needed to determine company specific cost-based rates. In accordance with ARSD 20:10:27:11, DakotaComm is seeking approval for exemption from developing intrastate switched access rates based on company specific costs. It would like to base intrastate access rates in accordance with ARSD 20:10:12., the costs of all the telecommunications companies with less than 100,000 access lines divided by the total access minutes. DakotaComm is seeking to adopt the terms and conditions of the Local Exchange Carriers Association's tariff in addition to the rates of the cost based companies and is also aware that these rates are subject to refund with interest. Ms. Farris recommended the Commission approve the Switched Access Tariff No. 1 for DakotaComm, LLC for a period of three years.
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 DakotaComm, LLC to adopt a rate based on the statewide average costs for telecommunications companies with fewer than 100,000 access lines for a period of three years. Commissioner Hanson seconded. Motion passed 2-0.
Mr. Senger stated that on November 10, 2004, Nationwide Professional Teleservices, LLC, filed an application for a Certificate of Authority to provide interexchange telecommunications services. On December 8, 2004, staff received notice that Nationwide wanted to withdraw the application. Mr. Senger recommended the Commission approve the request to withdraw.
Chairman Sahr moved to withdraw the application filed by Nationwide Professional Teleservices, LLC, and close docket TC04-223. Commissioner Hanson seconded. Motion passed 2-0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
