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South Dakota Public Utilities Commission Meeting
Tuesday, December 20, 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; Acting Executive Director Heather Forney; Commission Attorneys John Smith and Rolayne Ailts Wiest; Commission Advisor Greg Rislov; Staff Attorneys Karen Cremer and Sara Greff; Staff Analysts Dave Jacobson, Harlan Best, Bob Knadle, and Keith Senger; Jim Mehlhaff and Deb Gregg, Consumer Affairs Supervisors; Administrative Secretary Tina Douglas; and Cheri Wittler, Court Reporter.
Also present were Randy Houdek, Venture Communications; Darla Rogers, Riter, Rogers, Wattier & Brown representing Joint Petitioners for TC05-137; Bob Miller, South Dakota Electric Utility Companies; Brett Koenecke, May, Adam, Gerdes & Thompson, representing Montana-Dakota Utilities Co. and Midcontinent Communications; Larry Oswald, Tami Aberle, and Tom Nosbusch, Montana-Dakota Utilities Co.; and Rich Coit, South Dakota Telecommunications Association.
Joining the meeting by telephone were David Ross, Otter Tail Power Company; Colleen Sevold, Qwest Corporation; Jim Adkins, Swiftel Communications; Mary Sisak representing Brookings Municipal Utilities d/b/a Swiftel Communications; Jim Wilcox, Xcel Energy; and Talbot Wieczorek, Gunderson, Palmer, Goodsell & Nelson representing Western Wireless.
Administration
1. Approval of the Minutes of the Commission Meeting Held on November 1, 2005, and Ad Hoc Commission Meeting Held on November 23, 2005. (Staff: Tina Douglas.)
Commissioner Sahr moved to approve the Minutes of the Commission Meetings held on November 1, 2005, and Ad Hoc Commission Meeting Held on November 23, 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 1784 consumer contacts during 2005. Since the last report was prepared for the December 6, 2005, Commission meeting ,110 of these contacts had been received; 44 contacts involved telecommunications services; 30 contacts involved electricity issues; 16 contacts involved natural gas issues; 5 contacts involved cellular phone issues; 1 contact involved do not call issues; and 14 contacts involved issues not regulated by the Public Utilities Commission. In 2004, 2126 of the 2371 complaints registered have been resolved informally and in 2005, 1436 of the 1784 complaints registered have been resolved informally.
Consumer Complaints
Mr. Jim Mehlhaff stated that Eldon Lindquist, representing Pierre Radio Paging & Telephone, and Venture Communications Cooperative, Inc. f/k/a Sully Buttes Telephone Cooperative, Inc. filed a Joint Motion to Dismiss the Complaint and Close the Docket.
Commissioner Johnson moved to grant the Motion to Dismiss the Complaint with Prejudice and Close the Docket. Commissioner Sahr seconded and Chairman Hanson concurred. Motion passed 3-0.
Electricity
Chairman Hanson moved to accept the Settlement Agreement between Superior Renewable Energy LLC and Montana-Dakota Utilities Co. resolving all issues raised by the Complaint in Docket EL04-016 and that the Commission therefore terminate its investigation pursuant to SDCL 49-34A-26 and dismiss and close the docket. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Mr. David Ross, Otter Tail Power Company stated that Otter Tail Power Company is asking for approval of revisions to its Controlled Service - Interruptible Load Tariff which would close rate code 180 to new customers effective no later than January 1, 2006. The Controlled Service - Interruptible Load Tariff is available to residential and commercial customers primarily for the electric portion of a dual fueled heating system. Rate Code 180, initially approved in 1983, provides for an installation credit or reduced rate, for three years after service commencement in order to encourage customers to install a dual fuel system. Because of recent price increases in alternative fuels, Otter Tail believes the credit is no longer needed as an incentive for customers to install duel fuel systems with controlled electric service. Customers currently being served on Rate Code 180 would be grandfathered in and continue to receive the credit for the three year period from service commencement. Otter Tail Power Company is asking for this revision because it is not necessary anymore. Mr. Dave Jacobson stated that the staff concurs with Mr. Ross. Mr. Jacobson recommended approval of these tariff revisions.
Commissioner Johnson moved to approve the tariff revisions in Docket EL05-026. Chairman Hanson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Mr. Bob Knadle stated that in accordance with SDCL 49-41B-12 the maximum fee chargeable by the Commission may not exceed $47,600.00 and the minimum fee chargeable by the Commission may not be less than $8,000.00. Mr. Knadle recommended that the Commission access a filing fee not to exceed $47,600.00 with an initial deposit of $8,000.00 and that the company shall from time to time make such additional deposits up to the total amount of the assessment as invoiced by the Deputy Executive Director. Mr. Jim Wilcox, Northern States Power Company, a Minnesota Corporation d/b/a Xcel Energy (Xcel), stated that Xcel agreed with the assessment.
Commissioner Sahr moved to assess a filing fee against Xcel Energy in Docket EL05-028 not to exceed $47,600.00 with an initial deposit of $8,000.00 and that the company shall from time to time make such additional deposits up to the total amount of the assessment as invoiced by the Deputy Executive Director. Chairman Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0.
Natural Gas
Ms. Tami Aberle, Montana-Dakota Utilities Co. (MDU) stated that MDU filed an application asking for approval of natural gas conservation programs, including Conservation Starter Kits, On-Line Energy Audits, and certain rebates and incentives for customers purchasing certain high efficiency appliances and devices. The application also requests approval of a cost recovery mechanism designed to recover both program costs and lost distribution revenues resulting from lower consumption due to program implementation. MDU stated that the program would increase the customer's annual bill by approximately $3.50. Mr. Dave Jacobson stated that a memo has been prepared and given to the Commission. Staff has concerns about this program because the lower income people may not be able to afford the initial cost of an appliance even with the rebate, which means people with middle and higher income may be more likely to reap the benefits of this program. MDU's analysis relies on many assumptions because this program has no operating experience. MDU stated that the North Dakota Commission denied its request because they thought this program should be handled in a rate case. Chairman Hanson stated that the Commission was not comfortable enough to move forward with this proposal but is willing to defer this docket so MDU can come up with a revised proposal. MDU agreed to come back with a revised proposal regarding this program.
Chairman Hanson moved to defer Docket NG05-016. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Telecommunications
Mr. Bob Knadle stated that BellSouth Long Distance, Inc. filed an application seeking a Certificate of Authority to provide local exchange telecommunications service in the areas served by Qwest in South Dakota. The company was granted a Certificate of Authority to provide interexchange services in South Dakota on May 21, 1997. The company initially proposes to offer local exchange service targeted at large business customers that have a relationship with the company in one of the company's other core states. The company proposes to offer basic local exchange, private line and other types of high speed data services utilizing the facilities of Qwest. The company has requested waivers from 20:10:32:03(11) which requires the filing of current financial statements by the applicant and 20:10:32:03(14) which requires cost support for the rates shown in the company's tariff and has agreed not to offer any prepaid services (including prepaid calling cards) and not to accept or require any deposits or advanced payments without prior approval of the Commission. Mr. Knadle recommended the Commission approve BellSouth Long Distance, Inc.'s Certificate of Authority, subject to rural safeguards and restrictions, and grant the waivers.
Chairman Hanson moved to grant waivers of ARSD 20:10:32:03(11) and (14) and grant BellSouth Long Distance, Inc.'s Certificate of Authority subject to rural safeguards and with restrictions from offering prepaid calling cards or accepting customer deposits or advance payments without prior approval of the Commission. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
Brett Koenecke, Midcontinent Communications is asking for approval of revised switched access rates and an additional extension of its exemption from the requirement to develop intrastate switched access rates based on company specific costs. Mr. Bob Knadle recommended the Commission grant the petition per 20:10:27:11, and grant a waiver of 20:10:27:12 which allows Midcontinent Communications to mirror Qwest's switched access rates with no time restrictions, and allow the company to file adjustments to its switched access rates so long as those adjustments either mirror Qwest's rates or are lower, or until the Commission shall otherwise order.
Chairman Hanson moved to approve the intrastate switched access tariff, to grant an exemption from filing company-specific cost data and a waiver from having to file rates based on the cost of all telecommunication companies with less than 100,000 access lines, to allow Midcontinent Communications to mirror Qwest rates and to allow the company to file adjustments to its switched access rates so long as such rates either equal or are lower than Qwest's rates or until the Commission shall otherwise order. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
Mr. Bob Knadle stated that Metropolitan Telecommunications of South Dakota, Inc. (Metropolitan) was granted a Certificate of Authority on July 13, 2005. In this filing Metropolitan is seeking approval of its initial intrastate switched access services tariff. Metropolitan is petitioning the Commission per ARSD 20:10:27:11 to be exempted from the requirements of developing company-specific cost-based switched access rates based on company specific costs. The company is also requesting waivers of ARSD 20:10:27:12 and 13 which would require the company to develop its switched access rates and billing and collection costs respectively on the costs of all the telecommunications companies with less than 100,000 access lines if they are granted their petition for exemption under 20:10:27:11 and a waiver of ARSD 10:10:27:07 that would require the company to file cost data in support of its switched access service tariff no less than once every three years. The company is proposing to mirror Qwest's switched access rates. Mr. Knadle recommended that the Commission grant the petition per 20:10:27:11 and grant waivers 20:10:27:07 and 12 and 13, which allows Metropolitan to mirror Qwest's switched access rates with no time restrictions, and allow the company to file adjustments to its switched access rates so long as those adjustments either mirror Qwest's rates or are lower or until the Commission shall otherwise order.
Commissioner Johnson moved to approve the intrastate switched access tariff, to grant an exemption from filing company-specific cost data and a waiver from having to file rates based on the cost of all telecommunication companies with less than 100,000 access lines, to allow Midcontinent Communications to mirror Qwest rates and to allow the company to file adjustments to its switched access rates so long as such rates either equal or are lower than Qwest's rates or until the Commission shall otherwise order. Commissioner Sahr seconded and Chairman Hanson concurred. Motion passed 3-0.
4. In the Matter of the Approval of Amendments to Agreements in Dockets TC05-190 and TC05-191
Ms. Sara Greff stated that all the companies have active Certificates of Authority. 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 TC05-190 and TC05-191. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
Colleen Sevold, Qwest Corporation (Qwest), stated that it has filed changes to its Access Service Tariff to revise charges associated with changing a primary interexchange carrier, consistent with the FCC's Order in CC Docket No. 02-53, In The Matter of Presubscribed Interexchange Carrier Charges. Effective with this filing, when a customer chooses to change their long distance carrier and the change is processed manually, a charge of $5.50 will apply. If the change is processed electronically, a $1.25 charge will apply. If simultaneous interLATA and intraLATA changes are requested, a charge of $2.75 will apply for manual changes; $0.62 will apply if the changes are made electronically. The present charge is $5.00. Qwest is requesting an effective date of December 31, 2005, for these proposed revisions. Mr. Harlan Best recommended approval of the revisions of Qwest's Access Service Tariff.
Chairman Hanson moved to approve the revisions to Qwest's Access Service Tariff. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
Chairman Hanson moved that the Commission grant the relief requested in the Joint Petition for Extension of Suspension Date and the Date to File Further Suspension Request with one exception. The exception is that the term "public release" shall mean the first to occur of (i) the public release by the FCC of the complete printed regulatory flexibility analysis and any associated modifications of the Intermodal Order or (ii) the publication of such documents in the federal register under 5 U.S.C. ยง604(b). The suspensions of Petitioners' intermodal local number portability obligations, currently set to expire on December 31, 2005, shall be extended until the date six months following the date of the FCC's public release of its regulatory flexibility analysis for the Intermodal Order, 18 F.C.C.R 23,697 (2003) and any associated modifications to the Intermodal Order and the date by which Petitioners shall be required to file petitions requesting further suspension of intermodal LNP obligations shall be extended from October 1, 2005 until the date three months following such public release. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
7. In the Matter of the Failure of QX Telecom LLC to Maintain a Bond (Staff Attorney: Karen Cremer)
Ms. Karen Cremer stated that on October 18, 2001, QX Telecom LLC (QX) filed for a Certificate of Authority to provide interexchange telecommunication services in South Dakota. The Commission granted a Certificate of Authority to QX Telecom LLC at its March 28, 2002, meeting with the stipulation that QX maintain a bond. On September 30, 2005, the Commission was notified that the bond would be cancelled effective October 24, 2005. QX has failed to provide a replacement bond. Ms. Cremer has tried numerous times to contact the company and it has not returned her call. Ms. Cremer recommended that the Commission issue an Order to Show Cause.
Commissioner Johnson moved to issue an Order to Show Cause against QX Telecom LLC. Commissioner Sahr seconded and Chairman Hanson concurred. Motion passed 3-0.
Leadership
1. Election of a Chairperson and Vice-Chairperson of the Commission. (General Counsel: John Smith.)
Chairman Hanson nominated Commissioner Sahr as Chairman with an effective date of January 1, 2006. Commissioner Johnson seconded. Motion passed 2-0.
Commissioner Sahr nominated Commissioner Johnson as Vice Chairman with an effective date of January 1, 2006. Chairman Hanson seconded. Motion passed 2-0
Meeting adjourned.
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Tina Douglas
Administrative Secretary
