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South Dakota Public Utilities Commission Meeting
Tuesday, July 12, 2005 at 10:30 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, Deb Gregg, Jim Mehlhaff, Steve Wegman, Bob Knadle and Keith Senger; and Administrative Secretary Tina Douglas.
Also present was Darla Rogers, Riter, Rogers, Wattier & Brown representing Local Exchange Carriers Association; David Gerdes, May, Adam, Gerdes & Thompson representing DIECA Communications, Inc., d/b/a Covad Communications Company, Montana-Dakota Utilities Co. and Midcontinent Communications; and Bob Miller, South Dakota Electric Utility Companies.
Joining the meeting by telephone were Colleen Sevold and Melissa Thompson, Qwest Corporation; John Miller, Sioux Valley Energy; Marlene Bennett, Martin Group; and Ron Spangler, Otter Tail Power Co.
Administration
1. Approval of the Minutes of the Commission Meeting Held on June 14, 2005. (Staff: Tina Douglas.)
Commissioner Sahr moved to approve the Minutes of the Commission Meetings held on June 14, 2005. Commissioner Johnson seconded and Chairman 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)
Jim Mehlhaff reported that the Commission had received a total of 911 consumer contacts during 2005. Since the last report was prepared for the June 28, 2005, Commission meeting, 95 of these contacts had been received; 31 contacts involved telecommunications services; 21 contacts involved electricity issues; 6 contacts involved natural gas issues; 4 contacts involved gas and electric services; 11 contacts involved cellular phone issues; 9 contacts involved the Do Not Call registry; and 13 contacts involved miscellaneous services not regulated by the PUC. In 2004, 2073 of the 2370 complaints registered have been resolved informally and in 2005, 762 of the 911 complaints registered have been resolved informally .
Ron Spangler, Otter Tail Power Company (Otter Tail) reported that the Minnesota report was delayed because of government shutdown. He just received the report and recommendations from the Minnesota Commission today. He will meet with the Minnesota engineer on July 13, 2005, to discuss the recommendations. Otter Tail would like an additional 20-day extension so it has time to look at the information it has received from Minnesota and work on coming to resolution regarding this Complaint.
Commissioner Sahr moved to grant the additional 20-day extension. Commissioner Johnson seconded and Chairman Hanson concurred. Motion passed 3-0.
Electricity
John Miller, Sioux Valley Energy stated this is an annexation and both parties have agreed to the service territory change. Michele Farris stated that on May 16, 2005, the City of Madison filed for Commission approval a Sale of Property and Transfer of Service Territory. In September 2003, the City and Sioux Valley Energy entered into an agreement to exchange service territory due to an annexation by the City of Madison. The parties failed to file a petition with the Commission for approval of the transfer of service territory. This filing is to rectify that oversight and seeks approval of the transfer of electric service territory between the City of Madison and Sioux Valley Energy. The property is located in the Northeast Quarter of Section 17, Township 106N, Range 52W that is not already city territory. Ms. Farris recommended granting the service territory change between the City of Madison and Sioux Valley Energy
Chairman Hanson moved to approve the revised service territory change between the City of Madison and Sioux Valley Energy in docket EL05-019. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
Telecommunications
Chairman Hanson moved that the Commission rule in favor of Qwest and adopt Qwest's proposed language on the disputed issues that are the subject of this petition for arbitration. The Commission does not have the authority within a section 252 arbitration to enforce section 271 requirements. In addition, the Commission should decline to use state law to impose unbundling obligations within this section 252 arbitration. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Michele Farris stated that Metropolitan Telecommunications of South Dakota, Inc. has submitted an application for a Certificate of Authority in accordance with the administrative rules of South Dakota. The applicant intends to provide resold interexchange and local exchange services and local services utilizing the UNE platform. Interexchange services will be offered statewide and local service will be offered in Qwest exchange boundaries. It has made all staff recommended changes to the tariff. The applicant has agreed to restrictions from offering pre-paid services and collecting deposits and advance payments. Including billing for local service in arrears. The applicant submitted financial information for its parent company and is requesting a waiver from ARSD 20:10:24:02(8) and 20:10:32:03(11),which requires the applicant to submit current balance sheet, income statement, and cash flow statements. Ms. Farris recommended the Commission approve the request for a waiver of the financial information and also approve the Certificate of Authority for Metropolitan Telecommunications of South Dakota, Inc. with rural safeguards and restrictions on deposits, advance payments, and pre-paid calling cards.
Chairman Hanson moved to grant waivers of ARSD 20:10:24:02 (8) and 20:10:24:05(6) and (11) and grant Metropolitan Telecommunications of South Dakota, Inc.'s Certificate of Authority with rural safeguards and restrictions from offering prepaid calling cards or accepting customer deposits or advance payments. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
David Gerdes, representing Midcontinent Communications, is asking for late-filed intervention. Mr. Gerdes stated that no activity has occurred in the docket yet and it would be in the public's best interest to grant this intervention. Darla Rogers, representing Local Exchange Carriers Association, has no objection to this intervention. Karen Cremer recommended that intervention be granted to Midcontinent Communications in docket TC05-073.
Commissioner Johnson moved to grant Midcontinent Communications' Petition for Intervention. Commissioner Sahr seconded and Chairman Hanson concurred. Motion passed 3-0.
4. In the Matter of Approving Agreements in TC05-030 and TC05-034
Sara Greff stated that the Master Services Agreement and the Wireline Adoption Interconnection Agreement 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.
Chairman Hanson moved to approve the Master Service Agreement and Wireline Adoption Interconnection Agreement in TC05-030 and TC05-034. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
5. In the Matter of Approving Amendments to the Agreements in TC05-042, TC04-043, TC05-079, TC05-080, and TC05-081.
Sara Greff stated that the Amendments to the 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 Amendments.
Commissioner Sahr moved to approve the Amendments to the Agreements in TC05-042, TC04-043, TC05-079, TC05-080, and TC05-081. Commissioner Johnson seconded and Chairman Hanson concurred. Motion passed 3-0.
Administration
1. Initiation of Legal Action Against S&S Communications for Failure to Pay Fine in TC02-166. (Commission Counsel: John Smith)
John Smith stated that on August 28, 2003, the Commission entered its order in TC02-166, In the Matter of S&S Communications/AternaCell's Compliance with Commission Order. In the order, the Commission levied a fine against S&S in the amount of $13,400. To date, S&S has not paid any portion of the fine. Staff is requesting that the Commission grant the request so that the attorney general, acting through the assistant attorneys general assigned to the Commission, can file a civil action against S&S and its partners to obtain enforcement of the fine. Staff has filed a copy of the proposed complaint with the Commission. The civil action should be filed by August 28, 2005, because of a statute of limitations requirement.
Chairman Hanson moved to grant the request by staff for the Attorney General to initiate legal action on its behalf against S&S Communications to obtain enforcement of the fine levied by the Commission in TC02-166. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
ADDENDUM
Natural Gas
Dave Gerdes, Montana-Dakota Utilities Co. had no position on this Motion. Dave Jacobson stated that this is a common practice for staff to ask for in rate cases.
Chairman Hanson moved to grant the suspension of the imposition of the tariff for an additional 60 days beyond July 22, 2005.. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
