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South Dakota Public Utilities Commission Meeting

Wednesday, August 31, 2005, at 9:30 A.M.

State Capitol Building, Room 412

Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING

Vice Chairman Bob Sahr called the meeting to order. Also present were Commissioner Dustin Johnson; Executive Director Pamela Bonrud; Commission Attorneys John Smith and Rolayne Ailts Wiest; Commission Advisor Greg Rislov; Staff Attorneys Sara Greff, Karen Cremer, and Rolayne Ailts Wiest; Staff Analysts Dave Jacobson, Bob Knadle, Harlan Best and Keith Senger; and Administrative Secretary Tina Douglas.

Also present were Darla Rogers, Riter, Rogers, Wattier & Brown representing various Local Exchange Carriers and Local Exchange Carriers Association; Rita Mulkern, Tami Aberle, and Lynda Snyder, Montana-Dakota Utilities Co.; Brett Koenecke, May, Adam, Gerdes & Thompson, representing Montana-Dakota Utilities Co. and Midcontinent Communications; and Richard Coit, South Dakota Telecommunications Association.

Joining the meeting by telephone were Chairman Gary Hanson; Colleen Sevold, Qwest Corporation; Talbot Wieczorek, Gunderson, Palmer, Goodsell and Nelson, representing WWC License LLC; Bob Towers, Cheapsake Consulting Inc. ; Jean Calligan, MidAmerican Energy; Cindy Grosvenor, Telec Consulting, Inc.; Jeff Decker, NorthWestern Energy; Rick Johnson, Moss & Barnett, representing Mount Rushmore Telephone Company and Fort Randall Telephone Company and Valley Telephone Company; and Jeff Larson, Larson & Nipe, representing Santel Communications.

Natural Gas

1. NG05-002 In the Matter of the Application of Montana-Dakota Utilities Co. for Authority to Increase Rates for Natural Gas Service (Staff Analyst: Dave Jacobson, Staff Attorney: Sara Greff)

Tami Aberle, Montana-Dakota Utilities Co., stated that the distributions stabilizer mechanism is charged to town boundary station and to customer meters. It is a real time adjustment. This is the non-gas portion of the bill. It will increase the customer's bill by 20%. The impact on most customers will be $8.490 increase on average. Dave Jacobson stated that staff presented a memo to the Commission which shows all staff's recommendation. He also stated that there were very few comments from the public and once the increased was explained to the public none disagreed with the increase. Dave Jacobson recommended that the Commission approve the Joint Motion for Approval of the Settlement Stipulation.

Commissioner Sahr moved to grant approval of the Joint Motion for Approval of the Settlement Stipulation in Docket NG05-002. Commissioner Johnson seconded and Chairman Hanson concurred. Motion passed 3-0.

2. NG05-009 In the Matter of the Filing by MidAmerican Energy Company for Approval of Tariff Revisions. (Staff Analysts: Dave Jacobson/Bob Knadle, Staff Attorney: Sara Greff)

Jean Calligan, MidAmerican Energy Company, stated that MidAmerican Energy Company filed an application seeking approval of revisions to its Monthly Metered Transportation Gas Pilot Project. The proposed revisions would increase the administrative charge to reflect the annual true up and add language to provide more description of the program. Dave Jacobson stated the same as changes in prior dockets. It can be updated annually because it is a pilot program. Most of the changes were clarification changes except for the Administrative charge. Mr. Jacobson recommended approval the tariff revisions.

Commissioner Sahr moved to grant the tariff revisions in NG05-009. Chairman Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0

3. NG05-010 In the Matter of the Filing by NorthWestern Corporation d/b/a NorthWestern Energy for Approval of a Contract with Deviations with South Dakota Wheat Growers. (Staff Analyst: Dave Jacobson, Staff Attorney: Sara Greff)

Dave Jacobson stated that NorthWestern Energy is asking for approval of a contract with deviations and tariff revisions with South Dakota Wheat Growers to serve grain drying facilities. NorthWestern Energy is proposing to serve the customer pursuant to its currently tariffed Rate 85, Commercial and Industrial Interruptible Sales Service. The proposed contract would allow NorthWestern Energy to collect a customer contribution to recover the cost of investments in line extensions necessary to serve the customer. NorthWestern Energy has requested approval with less than 30 days notice. Mr. Jacobson recommended the contract with deviations be approved with less than 30 days notice and approval of the tariff revisions.

Commissioner Sahr moved to approve the Contract with Deviations with less than 30 days of notice and moved to approve the tariff revisions in NG05-010. Commissioner Johnson seconded and Chairman Hanson concurred. Motion passed 3-0

Telecommunications

1. In the Matter of the Request for Certification Regarding its Use of Federal Universal Service Support in dockets TC05-113, TC05-116, TC05-117, TC05-118, TC05-119, TC05-120, TC05-121, TC05-122, TC05-123, TC05-124, TC05-125, TC05-127, TC05-128, TC05-129, TC05-130, TC05-131, TC05-132, TC05-133, TC05-134, TC05-135, TC05-139, TC05-140, TC05-141, TC05-142, TC05-143, TC05-144, TC05-145, TC05-146, TC05-148, TC05-149, TC05-150, and TC05-151.

TC05-113 In the Matter of the Request of Interstate Telecommunications Cooperative, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-116 In the Matter of the Request of City of Brookings Municipal Telephone for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-117 In the Matter of the Request of Western Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-118 In the Matter of the Request of Roberts County Telephone Cooperative Association and RC Communications, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-119 In the Matter of the Request of Vivian Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-120 In the Matter of the Request of Sioux Valley Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-121 In the Matter of the Request of Armour Independent Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-122 In the Matter of the Request of Bridgewater-Canistota Independent Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-123 In the Matter of the Request of Union Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-124 In the Matter of the Request of Kadoka Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-125 In the Matter of the Request of Golden West Telecommunications Cooperative, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-127 In the Matter of the Request of Midstate Communications, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-128 In the Matter of the Request of Stockholm-Strandburg Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-129 In the Matter of the Request of Red River Telecom, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-130 In the Matter of the Request of James Valley Cooperative Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-131 In the Matter of the Request of Beresford Municipal Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-132 In the Matter of the Request of Northeast Nebraska Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-133 In the Matter of the Request of Splitrock Properties, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-134 In the Matter of the Request of Hills Telephone Company, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-135 In the Matter of the Request of Alliance Communications Cooperative, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-139 In the Matter of the Request of Mount Rushmore Telephone Company and Fort Randall Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-140 In the Matter of the Request of Valley Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-141 In the Matter of the Request of Cheyenne River Sioux Tribe Telephone Authority for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-142 In the Matter of the Request of Tri- County Telcom, Inc. for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-143 In the Matter of the Request of McCook Cooperative Telephone Company for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-144 In the Matter of the Request of Santel Communications Cooperative, Inc. for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-145 In the Matter of the Request of West River Telecommunications Cooperative for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-146 In the Matter of the Request of West River Telecommunications Cooperative (Mobridge) for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-148 In the Matter of the Request of Consolidated Telcom for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-149 In the Matter of the Request of Jefferson Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-150 In the Matter of the Request of West River Cooperative Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

TC05-151 In the Matter of the Request of City of Faith Municipal 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.

Commissioner Johnson 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 TC05-113, TC05-116, TC05-117, TC05-118, TC05-119, TC05-120, TC05-121, TC05-122, TC05-123, TC05-124, TC05-125, TC05-127, TC05-128, TC05-129, TC05-130, TC05-131, TC05-132, TC05-133, TC05-134, TC05-135, TC05-139, TC05-140, TC05-141, TC05-142, TC05-143, TC05-144, TC05-145, TC05-146, TC05-148, TC05-149, TC05-150, and TC05-151. Commissioner Sahr seconded and Chairman Hanson concurred. Motion passed 3-0.

2. TC05-137 In the Matter of the Joint Petition for Extension of Suspension Date and the Date to File Further Suspension Request. (Staff Analyst: Harlan Best, Staff Attorney: Rolayne Ailts Wiest)

Rolayne Ailts Wiest recommended that intervention be granted to South Dakota Telecommunications Association, Midcontinent Communications, and WWC License LLC and that the parties work out a procedural schedule for Docket TC05-137. Brett Koenecke representing Midcontinent Communications stated it is asking that intervention be granted. Darla Rogers representing various Local Exchange Carriers, do not oppose the interventions. Talbot Wieczorek representing WWC License LLC, stated it is asking that intervention be granted. Rich Coit, South Dakota Telecommunications Association, stated it is asking that intervention be granted.

Chairman Hanson moved to approve South Dakota Telecommunications Association, Midcontinent Communications, and WWC License LLC's intervention in Docket TC05-137, and to move forward in this docket and directed the parties to agree upon a procedural schedule. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passes 3-0

Meeting adjourned.

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Tina Douglas

Administrative Secretary