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South Dakota Public Utilities Commission Meeting
Tuesday, August 9, 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, Bob Knadle and Keith Senger; and Administrative Secretary Tina Douglas.
Also present were Darla Rogers, Riter, Rogers, Wattier & Brown representing Venture Communications Cooperative, Inc. and Local Exchange Carriers Association; Alan Dietrich and Clyde Gross, NorthWestern Energy; Bill Even, GOED; Rod Bowar, Kennebec Telephone; David Gerdes, May, Adam, Gerdes & Thompson representing Midcontinent Communications; and Richard Coit, South Dakota Telecommunications Association.
Joining the meeting by telephone were Colleen Sevold and Melissa Thompson, Qwest Corporation; Christopher Madsen, Boyce, Greenfield, Pashby & Welk representing Otter Tail Power Company; Marlene Bennett, Martin Group; Terry Graumann, Otter Tail Power Co.; Tom Maher, Maher & Arendt, representing Pierre Radio Paging & Telephone; Eldon Lindquist, Pierre Radio Paging & Telephone; and Cindy Grosvenor and Wendell Aanerud, Telec Consulting.
Administration
1. Approval of the Minutes of the Commission Meeting Held on July 12, 2005. (Staff: Tina Douglas.)
Commissioner Sahr moved to approve the Minutes of the Commission Meetings held on July 12, 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: Deb Gregg)
Deb Gregg reported that the Commission had received a total of 1063 consumer contacts during 2005. Since the last report was prepared for the July 28, 2005, Commission meeting, 53 of these contacts had been received; 7 contacts involved telecommunications services; 12 contacts involved electricity issues; 8 contacts involved natural gas issues; 11 contacts involved gas and electric services; 24 contacts involved cellular phone issues; 1 contact involved the Do Not Call registry. In 2004, 2126 of the 2370 complaints registered have been resolved informally and in 2005, 869 of the 1063 complaints registered have been resolved informally.
Electricity
1. EL05-022 In the Matter of the Application by Otter Tail Power Company on behalf of Big Stone II Co-Owners for an Energy Conversion Facility Permit for the Construction of the Big Stone II Project. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)
Ms. Michele Farris stated that on July 21, 2005, Otter Tail Power Cooperative filed an
application for an energy conversion facility located near the existing Big Stone Power Plant.
The proposed energy conversion facility is a nominal 600 MW coal-fired electric generating
facility and associated facilities. The estimated cost of the project is $1 billion. In accordance
with SDCL 49-41B-12 the maximum fee chargeable by the Commission may not exceed 1/4 of 1% of the first $100 million of the estimated construction cost and 1/20th of 1% of the remaining cost. Therefore, the maximum fee allowed is $700,000. SDCL 49-41B-12 also states that the minimum total fee chargeable may not be less than $8,000. Ms. Farris recommended the
Commission assess a filing fee not to exceed $700,000 with an initial deposit of $8,000.00.
Commissioner Johnson moved to assess a filing fee not to exceed $700,000.00 with
an initial deposit of $8,000.00 in Docket EL05-022. Commissioner Sahr seconded and
Chairman Hanson concurred. Motion passed 3-0.
Natural Gas
1. NG05-008 In the Matter of the Application of Northwestern Corporation d/b/a NorthWestern Energy for Approval of Tariff Revisions. (Staff Analyst:Dave Jacobson, Staff Attorney: Karen Cremer)
Mr. Alan Dietrich, NorthWestern Energy, stated that NorthWestern Energy is asking for approval of a new service that would allow customers to lock-in their winter natural gas supply price. The service would be available to commercial and industrial customers including schools and hospitals which have requested fixed gas supply prices during the heating season. Prices would be locked-in from November through April. The filing requested approval with less than 30 days notice. Mr. Dietrich stated that NorthWestern had incorporated staff's recommended changes to the proposed tariff revisions. Mr. Dave Jacobson stated that in the past the Commission has encouraged these type of programs. Mr. Jacobson recommended approval of the tariff revisions with less than 30 days notice.
Chairman Hanson moved to approve the tariff revisions with less than 30 days notice in Docket NG05-008. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Telecommunications
1. TC05-085 In the Matter of the Application of 800 Response Information Services LLC for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)
Ms. Michele Farris stated that 800 Response Information Services, LLC 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 services, including inbound Toll-Free 800 service to non-residential customers throughout South Dakota. 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. Ms. Farris recommended the Commission approve the Certificate of Authority for 800 Response lnformation Services, LLC with restrictions on deposits, advance payments, and pre-paid calling cards.
Chairman Hanson moved to grant 800 Response lnformation Services LLC'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.
2. In the Matter of Approving Amendments to Agreements in TC05-102 and TC05-103.
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 to the Agreements.
Chairman Hanson moved to approve the Amendments to the Agreements in TC05-102 and TC05-103. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
3. In the Matter of Approving Amendments to Agreements in TC05-104, TC05-105, and TC05-I06.
Sara Greff stated that the Amendments to the lnterconnection Agreements should be denied because these companies do not have a Certificate of Authority in South Dakota and have no intention of getting one at this time. Ms. Greff also stated that no valid interconnection agreement exists between the companies. Therefore, Ms. Greff recommended denying the Amendments to the lnterconnection Agreements.
Commissioner Johnson moved to deny the Amendments to the lnterconnection Agreements in TC05-104, TC05-105 and TC05-106. Commissioner Sahr seconded and Chairman Hanson concurred. Motion passed 3-0.
Sara Greff stated that the lnterconnection Agreement should be denied because the company does not have a Certificate of Authority in South Dakota and has no intention of getting one at this time. Ms. Greff recommended denying the lnterconnection Agreement.
Commissioner Johnson moved to deny the lnterconnection Agreement in TC05-107. Commissioner Sahr seconded and Chairman Hanson concurred. Motion passed 3-0.
Mr. Best stated that under the applicable statutes the Commission can assess a filing fee not to exceed $100,000.00. Mr. Best recommended that West River Telecommunications Cooperative be assessed a filing fee not to exceed $100,000.00, with an initial deposit of $1,000.00 and that West River Telecommunications Cooperative be allowed to use GVNW's cost study model.
Chairman Hanson moved to assess a filing fee not to exceed $100,000.00 with an initial deposit of $1,000.00 and that West River Telecommunications Cooperative be allowed to use GVNW's cost study model in TCO5-109. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
6. TC05-110 In the Matter of the Request of Heartland Telecommunications Company of Iowa d/b/a Hickory Tech Corporation for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)
TC05-111 In the Matter of the Request of Kennebec Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)
Mr. Best stated that each of these companies filed a request estimating how much Universal Service Support it may receive in the coming year and also showed estimated expenses. In each docket the expenses exceeded the monies the company may receive for Universal Service Support. In each docket the company stated all the monies it receives for Universal Service Support will be used in the appropriate manner as required by the FCC. Mr. Best recommended that the Commission grant certification in each docket as filed.
Chairman Hanson moved that the Commission provide a letter of certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the plan for the use of federal universal services support as proposed in dockets TC05-110 and TC05-111. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
ADDENDUM
Complaint
1. CT05-004 In the Matter of the Complaint filed by Eldon Lindquist on behalf of Pierre Radio Paging & Telephone, Pierre, South Dakota, against Venture Communications Cooperative, Inc. f/k/a Sully Buttes Telephone Cooperative, Inc. Regarding a Billing Dispute. (Staff
Analysts: Keith Senger/Jim Mehlhaff, Staff Attorney: Sara Greff)
Chairman Hanson moved that Venture Communications Cooperative's Motion to Dismiss be denied. He further moved that Venture's Alternative Motion to Strike be granted in part with respect to the following language in the Complaint and attachments:
In "Sully Buttes Exhibit I," strike the last paragraph of the body of the attachment beginning with the words, "We received a letter from Darla Rogers . . ." and request for the relief "1".
In the attached March 2, 2004 letter from Benjamin J. Aron to Darla Pollman Rogers, strike the last paragraph.
Strike the letter dated December 22, 2004 from Darla Pollman Rogers to Eldon Lindquist in its entirety.
Chairman Hanson also moved that except for these specific items, Venture's Motion to Strike be denied. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Telecommunications
1. TC05-073 In the Matter of the Request by the Local Exchange Carriers Association and its Members for a Waiver of ARSD 20:10:27:14. (Staff Analyst: Keith Senger, Staff Attorney: Karen Cremer)
Darla Rogers, Riter, Rogers, Wattier & Brown representing the Local Exchange Carriers Association (LECA) stated that LECA has struggled with this docket and LECA is asking this docket be withdrawn. Ms. Rogers indicated that she has signatures for the Stipulation with the intervenors. Dave Gerdes, May, Adam, Gerdes & Thompson representing Midcontinent Communications, stated that Midcontinent Communications has agreed to the withdrawal but indicated that Midcontinent Communications has a general dissatisfaction with the South Dakota switched access rates and Mr. Gerdes handed out the "Developing a Unified Intercarrier Compensation Regime" (See Attachment A).
Commissioner Johnson moved to grant the withdrawal of Docket TC05-073. Commissioner Sahr seconded and Chairman Hanson concurred. Motion passed 3-0.
Meeting adjourned.
Tina Douglas
Administrative Secretary
