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South Dakota Public Utilities Commission Meeting
Tuesday, April 26, 2005 at 9:30 A.M.
State Capitol Building, Room 412
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Chairman Gary Hanson called the meeting to order. Also present were Vice Chairman Bob Sahr; Commissioner Dustin Johnson; Executive Director Pamela Bonrud; Deputy Executive Director Heather Forney; Commission Advisor Greg Rislov; Commission Attorneys John Smith and Rolayne Ailts Wiest; Staff Attorneys Karen Cremer and Sara Greff; Staff Analysts Harlan Best, Dave Jacobson, Steve Wegman, Michele Farris, and Jim Mehlhaff; Cheri Wittler, Court Reporter; and Administrative Secretary Tina Douglas.
Also present were Alan Dietrich, Warren Lotsberg, and Jeff Decker, NorthWestern Energy; David Gerdes, May, Adam, Gerdes, and Thompson, representing Montana-Dakota Utilities Co. and Xcel Energy; Talbot Wieczorek, Gunderson, Palmer, Goodsell & Nelson, representing RCC Minnesota, Inc.; David LaFuria, representing RCC Minnesota, Inc.; Darla Rogers, Riter, Rogers, Wattier & Brown representing Dakota Turkey Growers, LLC and Dakota Energy Cooperative, Inc.; David Blair, East River Electric Power Cooperative, Inc.; Bob Miller, South Dakota Electric Utility Companies; and Audry Ricketts and Ed Anderson, South Dakota Rural Electric Association.
Joining the meeting by telephone were Colleen Sevold and Melissa Thompson, Qwest Corporation; Cory Kasuski, Sioux Valley Energy; Mark Rodvold, Melanie Acord, and John Wetzel, MidAmerican Energy Company; Larry Nelson, Frieberg, Zimmer, Duncan & Nelson; Jim Wilcox, Xcel Energy; and Tom Hitchcock, NorthWestern Energy.
Consumer Issues
1. Status Report on Consumer Utility Inquiries and Complaints Received by the Commission. (Consumer Affairs: Jim Mehlhaff)
Jim Mehlhaff reported that the Commission had received a total of 540 consumer contacts during 2005. Since the last report was prepared for the April 12, 2005, Commission meeting, 42 of these contacts had been received; 15 contacts involved telecommunications services; 4 contacts involved electricity issues; 2 contacts involved natural gas issues; 3 contacts involved gas and electric services; 7 contacts involved cellular phone issues; 3 contacts involved the Do Not Call registry; and 8 contacts involved miscellaneous services not regulated by the PUC. In 2004, 2071 of the 2370 complaints registered have been resolved informally and in 2005, 431 of the 540 complaints registered have been resolved informally .
Electricity
See Transcript of April 26, 2005 (EL04-032)
Chairman Hanson moved to approve Dakota Turkey Growers, LLC's Petition with respect to Dakota Turkey Growers, LLC's own facilities. This approval would include at a minimum the plant itself, the office building and the future expansions of either of these. This approval would not extend at this time to the truck stop. With respect to the six factors set forth in SDCL 49-34A-56, Chairman Hanson thinks the primary inquiry that the statute directs the Commission to make, once the Commission is satisfied that the initial threshold findings have been met, is into the adequacy of the service that the chosen utility can provide and the preference of the customer. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
See Transcript which is on file at the South Dakota Public Utilities Commission Office.
Commissioner Johnson moved to take the matter under advisement EL05-006. Commissioner Sahr seconded and Chairman Hanson concurred. Motion passed 3-0.
Jim Wilcox, Xcel Energy, Inc. stated that on April 1, 2005, Xcel Energy, Inc. (Xcel) and Sioux Valley-Southwestern Electric Cooperative, Inc. (SVE) filed for Commission approval a joint Electric Service Territory Exchange Agreement. SVE agrees to transfer to Xcel the area defined as "Sioux Valley Energy Lot Exchange" presently residing in Block 1 north of the existing territory boundary line in Sunrise Estates Addition in the SW 1/4 of Section 36, Township 102 North, Range 48 West, Brandon Township of Minnehaha County, South Dakota. All new services within the transferred territory will be served by Xcel. Xcel agrees to transfer to SVE the area defined as "Xcel Energy Lot Exchange" presently residing in Blocks 1, 2 and 3 south of the existing territory boundary line in Sunrise Estates Addition in the SW 1/4 of Section 36, Township 102 North, Range 48 West, Brandon Township of Minnehaha County, South Dakota. All new services within the transferred territory will be served by SVE. The developer of Sunrise Estates Addition concurs with the request. He asked for approval the Territory Boundary Change.
Commissioner Sahr moved to approve the electric service territory boundary change between Xcel Energy, Inc. and Sioux Valley-Southwestern Electric Cooperative, Inc. d/b/a Sioux Valley Energy in docket EL05-012. Commissioner Johnson seconded and Chairman Hanson concurred. Motion passed 3-0.
Telecommunications
Commissioner Johnson moved to defer TC04-225. Commissioner Sahr seconded and Chairman Hanson concurred. Motion passed 3-0.
Sara Greff stated that on January 21, 2005, BullsEye Telecom, Inc. filed an application for a Certificate of Authority to provide local exchange telecommunications services in Qwest's service territory and interexchange telecommunications services throughout South Dakota. The applicant has provided a $25,000 bond. Ms. Greff recommended the Commission grant BullsEye Telecom, Inc. local exchange and interexchange authority subject to rural safeguards and with a continuing bond requirement.
Chairman Hanson moved to grant BullsEye Telecom, Inc.'s Certificate of Authority, subject to rural safeguards, and subject to a continuous $25,000.00 surety bond. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
3. In the Matter of Approving Agreements in TC04-215 and TC05-018.
Sara Greff stated that the Agreement was filed before the BullsEye Telecom, Inc. had acquired a Certificate of Authority but that the Commission just approved its Certificate of Authority in the previous docket TC05-008. The Agreement 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 Agreement.
Chairman Hanson moved to approve the Agreement in TC04-215. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Chairman Hanson moved to approve the Agreement in TC05-018. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Sara Greff recommended that the Commission deny TC05-018 because eAcceleration Corp. does not have a Certificate of Authority in South Dakota and is not planning on applying for a Certificate of Authority.
Chairman Hanson moved to deny the Agreement in TC05-018. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Sara Greff stated that she received a fax from KMC Data, LLC asking that its Adoption Agreement be withdrawn without prejudice.
Commissioner Johnson moved to withdraw the Adoption Agreement without prejudice in TC05-050. Commissioner Sahr seconded and Chairman Hanson concurred. Motion passed 3-0.
Michele Farris stated that UCN, Inc. (UCN) had submitted an Application for a Certificate of Authority in accordance with the administrative rules of South Dakota. The applicant intends to provide facilities based and resold local exchange service. UCN intends to offer business class local loop connectivity and transmission, including 2-wire, 4-wire, DS-0, DS-1, DS-3, and OCn local loops provide local exchange service, custom calling and CLASS features, local operator assisted services and other services basic to local exchange service. The applicant intends to offer its services initially in the territory now served by Qwest Corporation. It has made all staff recommended changes to the tariff. The applicant intends to bill in arrears for all services including monthly local service charges and has agreed to accept restrictions from offering prepaid services or from collecting advance payments or deposits. Ms. Farris recommended the Commission approve the Certificate of Authority for local exchange services for UCN, Inc. subject to restrictions from accepting deposits or advance payments and from offering pre-paid services and to comply with the rural safeguards. The applicant is restricted from offering service until May 10, 2005.
Commissioner Johnson moved to grant UCN, Inc.'s Certificate of Authority, subject to rural safeguards, with restrictions from offering prepaid calling cards or accepting customer deposits or advance payments with an effective date of May 10, 2005. Chairman Hanson seconded and Commissioner Sahr concurred. Motion passed 3-0.
ADDENDUM
Natural Gas
Mark Rodvold, MidAmerican Energy Company (MidAmerican) stated that this is a continuing program in South Dakota for the last couple of years. The 2004 Economic Development Program has been continued at the same level as agreed upon in the last rate case. John Wetzel stated that the overage and underage varies from year to year. Michele Farris stated that on April 5, 2005, MidAmerican filed an economic development report for 2004 and a proposed economic development budget for 2005 in accordance with docket NG01-010. In addition, the company provided additional supporting documentation. In Docket NG04-002, the Commission approved $116,099 for economic development expenses for 2004. In 2004, MidAmerican actually spent $111,561, resulting in a surplus of $4,538. MidAmerican is proposing approximately the same expenditures for 2005 with the exception of an $800.00 increase for the McCook County Development Alliance and a subsequent decrease of $500.00 to the individual community development support for the communities of Montrose and Salem because Montrose and Salem formed the McCook County Development Alliance in 2004. MidAmerican's requested budget for 2005 economic development expenses totals $104,538, which will continue to be split equally between the shareholders and the ratepayers.
Chairman Hanson moved to approve MidAmerican's 2004 Economic Development Report and its 2005 Economic Development Plan. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Telecommunications
No action was required on this issue because the Agreement was withdrawn earlier.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
