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South Dakota Public Utilities Commission Meeting
Tuesday, November 1, 2005, at 1:30 P.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 Attorney Karen Cremer; Staff Analysts Dave Jacobson, Harlan Best, Bob Knadle, Phil Lusk, and Keith Senger; Deb Gregg, Consumer Affairs Supervisor; Administrative Secretary Tina Douglas; and Court Reporter Cheri Wittler.
Also present were Darla Rogers, Riter, Rogers, Wattier & Brown representing LECA and various LECs; Bob Miller, South Dakota Electric Utility Companies; Jim Wilson, MidAmerican Energy; Rod Bowar Kennebec Telephone Company; David Gerdes, May, Adam, Gerdes & Thompson, representing Montana-Dakota Utilities Co. and Midcontinent Communications; Ed Anderson, South Dakota Rural Electric Association; and Rich Coit, South Dakota Telecommunications Association.
Joining the meeting by telephone were Jeff Larson, Larson & Nipe, representing Santel Communications; Doug Eidahl and Larry Thompson, Vantage Point; Talbot Wieczorek, Gunderson, Palmer, Goodsell & Nelson, representing WWC License LLC; Meredith Moore Cutler & Donahoe; John Miller, Sioux Valley Energy ; Jeff Decker and Clyde Gross, NorthWestern Energy; Mary Sisak, Blooston, Mordkofsky, Dickens, Duffy & Prendergast representing Superior Renewable Energy LLC; Melissa Thompson, Qwest Corporation; Jim Adkins, Brookings Municipal Utilities; Lynn Ratanvale and David LaFluer, Lucas, Nace, Gutierrez & Sachs, representing Brookings Municipal Utilities; Mary Lohnes, Midcontinent Communications; Don Ball, Montana-Dakota Utilities Co.; Mark Meierhenry, Danforth, Meierhenry & Meierhenry, representing Superior Renewable Energy LLC; and Linda Walsh, Hunton & Williams LLP, representing Superior Renewable Energy LLC.
Administration
1. Approval of the Minutes of the Commission Meetings Held on September 27, 2005, and October 4, 2005. (Staff: Tina Douglas.)
Commissioner Sahr moved to approve the Minutes of the Commission Meetings held on September 27, 2005, and October 4, 2005. Commissioner Johnson seconded and Chairman Hanson concurred. Motion passed 3-0.
Consumer Reports
1. Status Report on Consumer Utility Inquiries and Complaints Received by the Commission. (Consumer Affairs: Deb Gregg)
Ms. Deb Gregg reported that the Commission had received a total of 1471 consumer contacts during 2005. Since the last report was prepared for the October 4, 2005, Commission meeting 165, of these contacts had been received; 39 contacts involved telecommunications services; 26 contacts involved electricity issues; 29 contacts involved natural gas issues; 32 contacts involved cellular phone issues, and 17 contacts involved do not call issues. In 2004, 2126 of the 2371 complaints registered have been resolved informally and in 2005, 1196 of the 1471 complaints registered have been resolved informally.
Complaints
Ms. Deb Gregg stated that Mr. Jim Mehlhaff had spoken to Mr. Eldon Lindquist and Mr. Lindquist is satisfied with the settlement. Both Parties jointly filed with the Commission a Joint Motion to Dismiss and Close the Docket.
Commissioner Sahr moved to dismiss the complaint and close Docket CT05-003. Commissioner Johnson seconded and Chairman Hanson concurred. Motion passed 3-0.
Electric
Mr. Bob Knadle stated that on September 29, 2005, Sioux Valley-Southwestern Electric Cooperative, Inc. d/b/a Sioux Valley Energy (SVE) and the City of Madison filed with the Commission for approval of a "Joint Request for Electric Service Territory Exception." The agreement between the City of Madison and SVE would permit the City of Madison to provide service to a new home for Paul and Lora Ersland in the SE1/4 of Section 31, Township 107 North, Range 52 West in SVE's service area. Paul and Lora Ersland had no objections to the approval of the agreement. Mr. Knadle recommended approval of the service rights exception.
Chairman Hanson moved to approve the service rights exception between Sioux Valley-Southwestern Electric Cooperative, Inc. d/b/a Sioux Valley Energy and the City of Madison in Docket EL05-024. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
Mr. Bob Knadle stated that on October 6, 2005, Whetstone Valley Electric Cooperative (Whetstone) and Otter Tail Power Company (OTP) filed with the Commission for approval of a request for a service rights exception. The agreement between Whetstone and OTP would permit Whetstone to provide service to two rail switches for Western Consolidated Cooperative in its grain handling operation in the SE1/4 of Section 7, Township 120 North, Range 49, West in OTP's service area. Western Consolidated Cooperative had no objections to the approval of the agreement. Mr. Knadle recommended approval of the service rights exception.
Chairman Hanson moved to approve the service rights exception between Otter Tail Power Company and Whetstone Valley Electric Cooperative in Docket EL05-025. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Natural Gas
Jeff Decker, NorthWestern Corporation, stated that NorthWestern is requesting that the Commission approve a refund plan for a $958,629.26 refund received from Northern Natural Gas Company. NorthWestern proposes to credit the Company's Adjustment Clause demand true-up in the sum of $879,025.41 and the Company's Adjustment Clause commodity true-up in the sum of $79,603.85. Mr. Dave Jacobson stated that by using these Adjustment Clause true-up mechanisms, the refund dollars will be returned to customers, with interest payable by the Company, over the next 12-month period through the normal purchased gas adjustment monthly filings process. Mr. Jacobson recommended approval of the Refund Plan effective November 1, 2005, with the condition that NorthWestern Energy pay interest on the refund amount received by NorthWestern Energy from the date received from Northern Natural Gas as described in the informational Supplement filed in the Docket.
Chairman Hanson moved to approve the Refund Plan with the effective date of November 1, 2005, and that NorthWestern Corporation pay interest on the refund amount received by NorthWestern Energy from the date received from Northern Natural Gas as described in the informational Supplement filed in the Docket. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Telecommunications
Mr. David LaFluer stated that Brookings Municipal Utilities d/b/a Swiftel Communications' (Swiftel) Petition for Designation as an Eligible Telecommunications Carrier (ETC) is the same type of ETC status that was approved for WWC Wireless, LLC, recently by this Commission. Mr. Rich Coit, SDTA, stated that the decision in this matter should be made at a later date after the proposed service area definition is decided by the FCC which will be by November 14, 2005. Swiftel requests that it be designated as an ETC in portions of its FCC authorized service area. For the local exchange carrier wire centers that are only partially covered by Swiftel's authorized service area, Swiftel also requests that the Commission designate it as an ETC for the portion of the wire centers where Swiftel is authorized to provide service. For wire centers located in another state which overlap into South Dakota, Swiftel requests that the Commission designate Swiftel in the portion of those wire centers that are within South Dakota. Ms. Rolayne Wiest stated that the Commission needs more questions answered regarding the proposed service areas and agreed with Mr. Coit that the Commission should wait until the November 14, 2005, FCC decision deadline passes. Ms. Wiest will send a letter to Swiftel regarding the issues that the Commission still need answers to.
Chairman Hanson moved to defer this docket until December 6, 2005, Commission Meeting. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
Mr. Bob Knadle stated that on July 29, 2005, Navigator Telecommunications, LLC filed an application seeking a Certificate of Authority to provide interexchange services throughout South Dakota on a resale basis. The Applicant intends to offer MTS, travel services and Toll-Free services to residential and business customers. Mr. Knadle recommended approving Navigator Telecommunications, LLC's Certificate of Authority with restrictions on deposits, advance payments, and pre-paid calling cards.
Commissioner Johnson moved to grant Navigator Telecommunications LLC's Certificate of Authority with restrictions from offering prepaid calling cards or accepting customer deposits or advance payments. Commissioner Sahr seconded and Chairman Hanson concurred. Motion passed 3-0.
Jeff Larson, Santel Communications Cooperative, Inc., stated the Petition for Intervention was filed late because Santel thought it had already filed for intervention in this docket. Mr. Dave Gerdes, Midcontinent Communications stated that it had no objection to the intervention.
Commissioner Sahr moved to grant intervention to Santel Communications Cooperative in Docket TC05-061. Chairman Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0.
4. In the Matter of the Approval of Agreements in Dockets TC05-170, TC05-171, TC05-172, TC05-176 and TC05-179
Ms. Karen Cremer stated that 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 Agreements.
Commissioner Sahr moved to approve the Agreements in TC05-170, TC05-171, TC05-172, TC05-176 and TC05-179. Commissioner Johnson seconded and Chairman Hanson concurred. Motion passed 3-0.
5. In the Matter of the Filing for Approval of Amendments to Agreements in Dockets TC05-174 and TC05-178
Ms. Karen Cremer 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.
Commissioner Sahr moved to approve the Amendments to the Agreements in TC05-174 and TC05-178. Commissioner Johnson seconded and Chairman Hanson concurred. Motion passed 3-0.
Darla Rogers, Representing LECA, stated that on September 12, 2005, the Fiber Ring Revenue-Pooling Association (FRRPA) filed a Petition to amend and update the original FRRPA filing (TC00-084) and to seek Commission approval of the amended SONET Ring Provider Agreements, Ring User Local Exchange Company Agreements, and amended FRRPA Administrative Rules and Bylaws. The original Agreements between the Local Exchange Companies (LEC) will expire at the end of 2005. FRRPA LEC participants and South Dakota Network, LLC have negotiated and executed new contracts that become effective January 1, 2006. Larry Thompson, Vantage Point Solutions stated that there have been increases and these increases were passed along in the new contracts that have been signed and will go into effect January 1, 2006.
Chairman Hanson moved to approve the Amended Revenue-Pooling Arrangement Documents. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
7. In the Matter of the Filing for Approval of Terms and Conditions for Interconnection, Unbundled Network Elements, Ancillary Services and Resale of Telecommunications Services in Dockets TC05-175 and TC05-177
Ms. Karen Cremer stated that 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 Agreements.
Commissioner Sahr moved to approve the Agreements in TC05-175 and TC05-177. Commissioner Johnson seconded and Chairman Hanson concurred. Motion passed 3-0.
8. In the Matter of the Failure of Certain Telecommunications Companies to Timely File the Gross Receipts Tax (Deputy Executive Director: Heather K. Forney)
Ms. Forney stated that the following companies have failed to timely file their gross receipts tax as required by SDCL 49-1A:
Wireless Companies that have not filed:
Booker Communications
Mobile Communications Corp of America
New-Cell, Inc
Local Exchange Providers that have not filed:
Vitcom Corporation
Operator Service Providers that have filed, but not paid:
T-NETIX Telecommunications Services, Inc.
Long Distance Providers that have not filed or paid:
ECI Communications, Inc.
ezTel Network Services, LLC
Global Communications Consulting Corp.
Miko Telephone Communications, Inc.
North American Telephone Network LLC
Optical Telephone Corporation
PromiseVision Technology, Inc.
Radiant Telecom, Inc.
Transcommunications, Inc.
Univance Telecommunications, Inc.
Long Distance Providers that have filed, but not paid:
Alliance Group Services, Inc. d/b/a U.S. Republic Communications, Inc.
Better World Telecom, Inc.
D.D.D. Calling, Inc.
Dial Thru, Inc. f/k/a RDST, Inc.
Inmark, Inc. d/b/a Preferred Billing
R2C Communications, Inc.
TeleCents Communications, Inc.
Telefyne Incorporated
Total Call International, Inc.
Touch 1 Communications, Inc.
United American Technology, Inc.
W2COM International, LLC
Ms. Forney also stated that Univance Telecommunications, Inc. is in bankruptcy so staff is not seeking an Order to Show Cause. Ms. Forney recommended the Commission issue an Order to Show Cause as to why the Commission should not fine, or suspend or revoke the Certificates of Authority of each of these companies for failure to pay the requisite Gross Receipts Tax.
Chairman Hanson moved to Issue an Order to Show Cause on each of the companies listed above except Univance Telecommunications, Inc. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Electricity
See Transcript which is on file at the Public Utilities Commission Office.
Chairman Hanson moved that the Commission grant Superior's Motion to Reconsider on the grounds that FERC has dismissed the QF purchase obligation suspension petition of Alliant Energy Corporate Services and the Commission has jurisdiction to hear and decide Superior's Complaint. He further moved that this matter be scheduled and noticed for hearing on December 13 through the 16, 2005, and the parties confer immediately following this hearing to resolve any prehearing scheduling issues. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Chairman Hanson stated on the second question he would move that the Commission deny without prejudice Superior's request for a ruling on the issue of whether there is an existing obligation pending before the Commission and that we rule on this issue in our final decision after hearing the evidence. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Chairman Hanson stated that on the third question he would move that the Commission deny Superior's request that the Commission issue an Order to Show Cause against Montana-Dakota Utilities Co. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
ADDENDUM
Natural Gas
Mr. Dave Jacobson stated that the existing contract with Merillat Corporation expired on October 31, 2005. The proposed amendment provides for service to continue to Merillat for a one year period ending October 31, 2006, under the terms of the original contract. MDU has requested approval with less than 30 days notice. Mr. Jacobson recommended approving the contract with less than 30 days notice.
Commissioner Sahr moved to approve the amendment to the contract with deviations with less than 30 days notice. Commissioner Johnson seconded and Chairman Hanson concurred. Motion passed 3-0.
ADDENDUM
Telecommunications
Transcript of November 1, 2005, 1:30 p.m. Commission Meeting (TC05-137)
Chairman Hanson moved that the Commission go into executive session. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
Chairman Hanson moved that the Commission return from executive session. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
Chairman Hanson moved that the Commission grant Petitioner's Motion to Limit the Scope of Issues to the issues raised by the Joint Petition. Namely, whether the existing suspensions should be extended based upon the pendency of the FCC's proceeding in CC Docket No 95-116, and if so, what the length of the new suspensions should be. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary