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South Dakota Public Utilities Commission Meeting
Tuesday, June 28, 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 Attorneys John Smith and Rolayne Ailts Wiest; Commission Advisor Greg Rislov; Staff Attorneys Sara Greff and Karen Cremer; Staff Analysts Dave Jacobson, Steve Wegman, Michele Farris, and Keith Senger; Paige Wilbur, Intern; Cheri Wittler, Court Reporter; and Administrative Secretary Tina Douglas.
Also present was Darla Rogers, Riter, Rogers, Wattier & Brown representing South Dakota Network, LLC and Local Exchange Carriers Association; Greg Diamond, DlECA Communications, Inc. d/b/a Covad Communications Company; Brett Koenecke, May, Adam, Gerdes & Thompson representing DlECA Communications, Inc. d/b/a Covad Communications Company, Montana-Dakota Utilities Co., and Midcontinent Communications; and Melissa Thompson and Colleen Sevold, Qwest Corporation.
Joining the meeting by telephone was Rita Mulkern, Montana-Dakota Utilities Commission; Tom Welk, Boyce, Greenfield, Pashby & Welk; Marlene Bennett, Martin Group; Larry Hettinger, Heartland Consulting; and Sharon Mullin, AT&T.
Consumer Issues
1. Status Report on Consumer Utility Inquiries and Complaints Received by the Commission.
Sara Greff reported that the Commission had received a total of 816 consumer contacts during 2005. Since the last report was prepared for the June 14, 2005, Commission meeting, 56 of these contacts had been received; 22 contacts involved telecommunications services; 7 contacts involved electricity issues; 6 contacts involved natural gas issues; 2 contacts involved gas and electric services; 7 contacts involved cellular phone issues; 4 contacts involved the Do Not Call registry; and 8 contacts involved miscellaneous services not regulated by the PUC. In 2004, 2073 of the 2370 complaints registered have been resolved informally and in 2005, 679 of the 816 complaints registered have been resolved informally.
Natural Gas
Rita Mulkern, Montana-Dakota Utilities Co. stated that Montana-Dakota Utilities Co. is asking for approval of waiver of the annual May 1 date to update the Surcharge Adjustment which amortizes the balance of the Unrecovered Purchase Gas Account over a 12 month period. Montana-Dakota is requesting the waiver so that it can implement an out of cycle change to the Surcharge Adjustment in order to pass back a refund it recently received from Williston Basin Interstate Pipeline Company. The refund resulted from a recent decision by the Federal Energy Regulatory Commission concerning a rate increase request filed by Williston Basin in 1999. Ms. Mulkern also stated that Montana-Dakota Utilities Co. is asking for approval with less than 30 days notice. Dave Jacobson recommended approval of the Waiver with less than 30 days notice.
Commissioner Johnson moved to approve the Waiver with less than 30 days notice in docket NG05-006. Chairman Hanson seconded and Commissioner Sahr concurred.
Motion passed 3-0.
Telecommunications
Sara Greff stated that the Master Services Agreement has been properly filed, has been properly executed and does not appear to contain any discriminatory provisions, no comments were filed, and recommended approval of the Amendment.
Chairman Hanson moved to approve the Master Service Agreement in TC05-067. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
Sara Greff stated that the Paging Adoption lnterconnection Agreement has been properly filed, has been properly executed and does not appear to contain any discriminatory provisions, no comments were filed, and recommended approval of the Amendment.
Commissioner Sahr moved to approve the Paging Adoption Agreement in TC05-074. Commissioner Johnson seconded and Chairman Hanson concurred. Motion passed 3-0.
3. In the Matter of Approving Amendments to the Agreements in TC05-076, TC05-077, and TC05-078.
Sara Greff stated that the Amendments to the Agreements have been properly filed, have been properly executed and do not appear to contain any discriminatory provisions, no comments were filed, and recommended approval of the Amendments.
Chairman Hanson moved to approve the Amendments to the Agreements in TC05-076, TC05-077, and TC05-078. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
4. In the Matter of Disapproving the Agreements in TC04-211, TC05-031, TC05-045, TC05-068, and TC05-070.
Sara Greff stated that all of the companies in the above Agreements do not have a Certificate of Authority to do business in the State of South Dakota and have no intention at this time to apply for a Certificate of Authority. Ms. Greff recommended not approving the Agreements.
Commissioner Sahr moved to disapprove the Agreements in TC04-211, TC05-031, TC05-045, TC05-068, and TC05-070. Chairman Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0.
5. In the Matter of Disapproving the Amendments to the Agreements in TC04-212, TC05-071, TC05-072, and TC05-075.
Sara Greff stated these are Amendments to Agreements that the Commission just disapproved so the Amendments should also be disapproved.
Commissioner Sahr moved to disapprove the Agreements in TC04-212, TC05-071, TC05-072, and TC05-075. Chairman Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0.
See transcript which is on file with the Public Utilities Commission Office.
Keith Senger stated ARSD 20:10:27:07 requires Local Exchange Carriers to file switched access cost study every three years. Since South Dakota Network, LLC's (SDN) last cost study was filed in July of 2002, SDN needs to file a current study in June of 2005. On May 16, 2005, SDN submitted a petition requesting a waiver from filing a study. In that petition, SDN indicated that preliminary information would support a rate increase which SDN does not wish to implement at this time. Additionally, the cost of completing a study would only increase the rates even higher. In response to data requests issued by staff, SDN provided a preliminary comparison of the 2001 test year used in its previous filing and the 2004 test year which would be used in a current filing. This information showed slight decrease in the revenue requirement and in minutes of use. Since the percent decrease in minutes is greater than the percent decrease in the revenue requirement, the rate actually increases slightly supporting SDN's claims. Mr. Senger recommended the Commission grant SDN's waiver request from filing a cost study for a three year period.
Chairman Hanson moved to grant the South Dakota Network, LLC's waiver from filing a cost study for a three year period. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
Sharon Mullin, AT&T stated that on June 21, 2005, AT&T filed a Motion to Accept AT&T's Late-Filed Petition for Intervention of AT&T Communications of Midwest, Inc. and a Petition for Intervention of AT&T Communications of Midwest, Inc. Ms. Mullin stated even though this Petition for Intervention was filed 2 days after the deadline there would be no prejudice or harm against the Petitioner. Darla Rogers, Local Exchange Carriers Association did not object to AT&T's intervention. Karen Cremer recommended that the Motion and Petition for Intervention be granted.
Commissioner Johnson moved to grant AT&T Communications of the Midwest, Inc.'s Motion to Accept AT&T's Late-Filed Petition for Intervention and to grant AT&T Communications of the Midwest, Inc.'s Petition for Intervention. Commissioner Sahr seconded and Chairman Hanson concurred. Motion passed 3-0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
