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South Dakota Public Utilities Commission Meeting
Tuesday, May 24, 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 Commissioner Dustin Johnson; Executive Director Pamela Bonrud; Deputy Executive Director Heather Forney; Commission Attorneys John Smith and Rolayne Ailts Wiest; Staff Attorneys Karen Cremer and Sara Greff; Staff Analysts Harlan Best, Dave Jacobson, and Keith Senger; Cheri Wittler, Court Reporter; and Administrative Secretary Tina Douglas.
Also present were Brett Koenecke, May, Adam, Gerdes, and Thompson, representing McLeodUSA Telecommunications Inc.; Darla Rogers, Riter, Rogers, Wattier & Brown representing Golden West Telecommunications Cooperative, Inc., Vivian Telephone Company, Sioux Valley Telephone Company, Armour Independent Telephone Company, Bridgewater-Canistota Independent Telephone Company and Kadoka Telephone Company, and South Dakota Rural Electric Association; Alan Dietrich, Jeff Decker, and Warren Lotsberg, NorthWestern Energy; and Rich Coit, South Dakota Telecommunications Association.
Joining the meeting by telephone were Vice Chairman Bob Sahr; Colleen Sevold and Melissa Thompson, Qwest Corporation; Denny Law and George Vandel, Golden West Telecommunications Cooperative, Inc.; Talbot Wieczorek, Gunderson, Palmer, Goodsell & Nelson, representing Western Wireless; Ron Spangler, Otter Tail Power Company; and Larry Nelson, Frieberg, Zimmer, Duncan & Nelson.
Administration
1. Approval of the Minutes of the Commission Meeting Held on May 10, 2005. (Staff: Tina Douglas.)
Commissioner Johnson moved to approve the Minutes of the Commission Meetings held on May 10, 2005. Chairman Hanson seconded and Commissioner 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)
Jim Mehlhaff reported that the Commission had received a total of 654 consumer contacts during 2005. Since the last report was prepared for the May 10, 2005, Commission meeting, 50 of these contacts had been received; 18 contacts involved telecommunications services; 4 contacts involved electricity issues; 7 contacts involved natural gas issues; 3 contacts involved gas and electric services; 5 contacts involved cellular phone issues; 6 contacts involved the Do Not Call registry; and 7 contacts involved miscellaneous services not regulated by the PUC. In 2004, 2072 of the 2370 complaints registered have been resolved informally and in 2005, 547 of the 654 complaints registered have been resolved informally .
See Transcript of May 24, 2005, Commission Meeting
Chairman Hanson moved to grant the Motion for Partial Summary Judgment regarding jurisdiction and determine that the Commission does have jurisdiction over this matter pursuant to SDCL Chapters 49-13 and 49-31 and 47 U.S.C. ยง 252, but to take the matter under advisement, and defer voting regarding WWC License LLC's request for immediate payment of undisputed overage charges and WWC License LLC's request that the Commission find interest is applicable to any overage charges. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
Electricity
See Transcript of May 24, 2005, 9:30 a.m. Commission Meeting (EL05-006)
Chairman Hanson moved to deny the tariff revisions in EL05-006. Commissioner Sahr seconded and Commissioner Johnson dissented. Motion passed 2-1.
Dave Jacobson stated that Otter Tail Power Company is requesting approval to revise its tariffed Summary List of Contracts with Deviations. The existing contract with the Town of Astoria will expire on June 1, 2005. Otter Tail states the new agreement does not contain any deviations from Otter Tail's currently filed tariff and therefore requests that reference to a contract with the Town of Astoria be removed from the Summary List of Contracts with Deviations. Mr. Jacobson recommended approval of the tariff revisions in EL05-015.
Commissioner Johnson moved to approve the tariff revisions in EL05-015. Chairman Hanson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Dave Jacobson stated that Otter Tail Power Company is requesting approval of revisions to its fuel adjustment clause to change from a mid-month application to a calendar month application. The application also requests that Otter Tail's fuel clause calculation be amended to correct a mismatch of volumes used for calculating base cost recoveries vs. fuel clause recoveries. Mr. Jacobson recommended approval of the tariff revisions in EL05-016.
Commissioner Johnson moved to approve the fuel clause adjustment and tariff revisions in EL05-016. Chairman Hanson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Telecommunications
Keith Senger stated that on January 13, 2005, Phone1, Inc. filed an application for a Certificate of Authority to provide interexchange telecommunications service and alternative operator service (AOS) throughout South Dakota. The applicant has requested waivers of ARSD 20:10:24:02 (8) and 20:10:24:05(6) and (11). The applicant has agreed to restrictions from offering any prepaid services and from collecting customer deposits or advanced payments. Mr. Senger recommended the Commission grant the waivers and grant interexchange and AOS authority to Phone1, Inc. subject to the restrictions.
Chairman Hanson moved to grant waivers of ARSD 20:10:24:02 (8) and 20:10:24:05(6) and (11) and grant Phone1, Inc.'s Certificate of Authority with restrictions from offering prepaid calling cards or accepting customer deposits or advance payments. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Sara Greff stated Vycera Communications does not have a Certificate of Authority to operate in the State of South Dakota. Sara talked to Vycera Communications and it does not wish to apply for a Certificate of Authority at this time. Ms. Greff recommended disapproving this Agreement.
Chairman Hanson moved to disapprove the Agreement in TC05-023. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Sara Greff recommended disapproving this Agreement in TC05-029 for the same reasons as stated in TC05-023.
Chairman Hanson moved to disapprove the Agreement in TC05-029. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Keith Senger stated that on January 13, 2005, Global Tel*Link Corporation filed an application for a Certificate of Authority to provide interexchange telecommunications service and alternative operator service (AOS) throughout South Dakota. It intends to provide full pay telephone services at public and correctional facility locations. The applicant requested waivers from ARSD 20:10:24:05(6) and (7) because these services are not required at corrections facilities. The applicant has provided a $25,000 bond. Mr. Senger recommended the Commission grant the waivers requested and grant interexchange and AOS authority to Global Tel*Link Corporation subject to the continuing bond requirements.
Chairman Hanson moved to grant waivers of ARSD 20:10:24:05(6) and (7) and grant Global Tel*Link Corporation's Certificate of Authority, subject to a continuous $25,000.00 surety bond. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
Brett Koenecke, McLeodUSA Telecommunications Services, Inc. (McLeodUSA) stated that a Stipulation for Dismissal has been filed with the Commission and was agreed upon by all parties.
Chairman Hanson moved to dismiss the petition and close the docket based upon the Stipulation for Dismissal in TC05-057. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Rich Coit, South Dakota Telecommunications Association (SDTA) stated that SDTA is requesting intervention in Docket TC05-059. He also stated that the application does not state it is only planning on doing business in Qwest's area and could be trying to get certification in other service areas. Pacific Centrex Services, Inc. has not provided proper notice to all the ILECs. Sara Greff stated that this is correct and a data request was sent to the company on April 25, 2005. Ms. Greff recommended granting intervention to SDTA.
Commissioner Johnson moved to grant intervention to South Dakota Telecommunications Association in TC05-059. Chairman Hanson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Administration
Establishment of the Gross Receipts Tax levy for the 2006 Fiscal Year (Deputy Executive Director: Heather Forney)
Heather Forney stated that SDCL Chapter 49-1A establishes the South Dakota Public Utilities Commission gross receipts tax fund. This fund is financed by assessing a tax on the annual intrastate gross receipts received by a utility. The fund is used by the Commission to defray regulatory expenses related to the regulation of telecommunications, electricity and natural gas. On April 1st of each year all utilities and telecommunications companies doing business in South Dakota and regard to file with the Commission the amount of their gross receipts derived from customers within South Dakota during the preceding calendar year. On May 1st of each year, the Commission in regard to establish the rate and assess the tax authorized in SDCL 49-1A-3 which, together with any funds remaining from the current fiscal year and the two hundred fifty dollar minimum gross receipt tax, will fund the Commission's budget for the next fiscal year and provide a contingency reserve in an amount not to exceed the prior year's budget. In accordance with these standard set forth in SDCL 49-1A-4. Ms. Forney recommended assessing the maximum tax of .0015.
Chairman Hanson moved to establish the maximum rate and assess the gross receipts tax. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
