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South Dakota Public Utilities Commission Meeting

Tuesday, April 11, 2006, at 9:30 A.M.

State Capitol Building, Room 412

Pierre, South Dakota

 

MINUTES OF THE COMMISSION MEETING

 

Vice Chairman Dustin Johnson called the meeting to order.  Also present were; Commissioner Gary Hanson; Executive Director Patty Van Gerpen; Commission Attorneys Rolayne Ailts Wiest and John Smith; Commission Advisor Greg Rislov; Staff Attorneys Karen Cremer and Sara Greff; Staff Analysts Dave Jacobson, Martin Bettmann, Harlan Best, Bob Knadle, Steve Wegman and Keith Senger; Consumer Affairs Supervisor, Deb Gregg; and Administrative Secretary Tina Douglas.

 

Also present were Darla Rogers, Riter, Rogers, Wattier & Brown representing Midstate Telecom, Inc.; Bob Miller, South Dakota Electric Utilities Association; Jeff Decker and Pamela Bonrud, NorthWestern Energy; Jim Wilson, MidAmerican Energy; and Jim Wilcox, Xcel Energy.

 

Joining the meeting by telephone were Chairman Bob Sahr; Christopher Madsen, Boyce, Greenfield, Pashby & Welk, representing Otter Tail Power Company; Denise Thompson, Golden West Technologies Inc.; Colleen Sevold, Qwest Corporation; Jim Paul, West River Electric Association; Dean Poloski and Dave Prazek, Otter Tail Power Company;  Allen Nelson, Bangs, McCullen, Butler, Foye & Simmons, representing West River Electric Association; Suzan Stewart, Katherine Kunert, and Mark Rodvold, MidAmerican Energy; Tim Eklund, Telec Consulting, representing Midstate Telecom, Inc. and RC Communications, Inc.; Craig Hanrahan, and Mark Benton, Midstate Telecom, Inc.

 

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 626 consumer contacts during 2006. Since the last report was prepared for the February 28, 2006, Commission meeting, 201 of these contacts had been received; 59 contacts involved telecommunications services; 21 contacts involved electricity issues; 25 contacts involved natural gas issues; 3 contacts involved gas and electric services; 36 contacts involved cellular phone issues; 14 contacts involved do not call issues; and 43 contacts involved issues not regulated by the Public Utilities Commission.  In 2006, 552 of the 626 complaints registered have been resolved informally.  In 2005, 1,660 of the 1,885 complaints registered have been resolved informally.

 

Electricity

 

1.     EL04-020            In the Matter of the Filing by Montana-Dakota Utilities Co. for Approval of Tariff Revisions.   (Staff Analyst:  Keith Senger, Staff Attorney:  Karen Cremer)

 

Mr. Keith Senger stated that on June 1, 2004, Montana-Dakota Utilities Co. (MDU) filed to update the cogeneration rates it pays for generation to qualifying facilities with designed capacity of 100Kw or less.  This filing was made in accordance with the commission's avoided cost order F-3365.  Because of similarities with this docket and the avoided cost docket EL04-016 filed by Superior Renewable Energy regarding the wind project, staff and the company believed it was best to wait with completion of this docket since the outcome in EL04-016 may affect the avoid cost calculation in this docket.  At that time there were not any customers on these rates so delaying consideration of this docket would not have an adverse impact on South Dakota cogeneration.  On January 5, 2006, the avoided cost docket, EL04-016, was settled and the docket was closed.  Because the costs used in this docket are somewhat dated, MDU filed a letter on March 27, 2006, asking to withdraw the filing and close the docket. MDU has indicated it will file a new request with the Commission on June 1, 2006.  Mr. Senger recommended the Commission allow MDU to withdraw the filing and close the docket.  

 

Commissioner Hanson moved to grant MDU's withdrawal of its filing in EL04-020 and close the docket.  Commissioner Johnson seconded and Chairman Sahr concurred.  Motion passed 3-0.

 

2.     EL05-027           In the Matter of the Filing by NorthWestern Corporation d/b/a NorthWestern Energy for Approval of Tariff Revisions.  (Staff Analyst:  Dave Jacobson, Staff Attorney:  Sara Greff)

 

Ms. Pamela Bonrud, NorthWestern Energy (NorthWestern) stated that NorthWestern is requesting approval of revisions to its Electric Tariff General Terms and Conditions, metering, continuity of service, and other changes. NorthWestern states it has been several years since these provisions have been updated and NorthWestern has utilized the tariff language of other companies and the tariffs of its Montana jurisdiction to develop these changes which will clarify its Electric Tariff.  Jeff Decker, NorthWestern stated that it made some changes to the budget section of tariff as well.  Mr. Dave Jacobson stated that the filing makes changes to Section 5 of NorthWestern's tariff.  Mr. Jacobson stated that after numerous discussions, NorthWestern and staff had come to an agreement on this docket except for the NSF check charges.  Ms. Bonrud stated that the company believes that NorthWestern has a right to charge this NSF fee pursuant to SDCL 57A-3-421.  Mr. Jacobson stated that all of the other gas and electric companies, who have tariffs on file with the PUC, do charge NSF charges but have the charges in the tariff which was done at the time of their latest rate case.  Mr. Jacobson also stated the proposed charge was not supported by corresponding cost information.

 

Commissioner Hanson moved to defer Docket EL05-027.   Commissioner Johnson seconded and Chairman Sahr concurred.  Motion passed 3-0.

 

3.       EL06-002         In the Matter of the Application by Otter Tail Power Company on Behalf of Seven Regional Utilities for a Permit to Construct 5.45 Miles of 230 kV Transmission Line, 33 Miles of 345 kV Transmission Line, the Big Stone 345 kV Substation and Modification of the Big Stone 230 kV Substation (Staff Analysts:  Bob Knadle and Martin Bettmann, Staff Attorney:  Karen Cremer)

 

Christopher Madsen, Otter Tail Power Company stated that it had no objection to the City of Gary being granted party status.  Ms. Karen Cremer recommended granting the City of Gary party status in Docket EL06-002. 

 

Commissioner Johnson moved to grant the City of Gary party status in Docket EL06-002.   Commissioner Hanson seconded and Chairman Sahr concurred.  Motion passed 3-0.

 

4.       EL06-006       In The Matter Of Otter Tail Power Company's Request For Approval Of Revisions To Its Voluntary  Renewable Energy Rider  (Staff Analysts:  Bob Knadle and Nathan Solem,  Staff Attorney:  Sara Greff)

 

Dave Prazek, Otter Tail Power Company (Otter Tail) stated that Otter Tail is requesting approval of revisions to its Voluntary Renewable Energy Rider which would reduce the cost to consumers for purchasing a 100 kwh block of renewable energy. The Application would also remove reference to a termination date for the program. The Application requests an effective date of September 1, 2005, and Otter Tail is proposing to refund to customers the difference between the amounts actually collected since that time and the new proposed rates.  Mr. Bob Knadle stated that the program was approved as a pilot project in EL01-005.  Costs have decreased so Otter Tail is asking for revisions.  Mr. Knadle recommended approval of the new reduced rate effective for service rendered on an dafter September 1, 2005, the approximate $1,400.00 refund to South Dakota customers and the removal of the termination date with the following recommended conditions:  1) Otter Tail shall submit annually to the South Dakota Public Utilities Commission the Minnesota Public Utilities Commission Order approving Otter Tail's composite energy rate and, also, data on any planned acquisitions of new wind power or contract changes to existing wind power contracts; 2) Should Otter Tail's costs exceed rates for the renewable program, Otter Tail will not be able to recover those deficits retroactively; and 3) Otter Tail shall submit a summary report of the refund to the commission when the refund is complete.

 

Commissioner Johnson moved to approve the tariff revisions in EL06-006 with an effective date of September 1, 2005, subject to the following conditions:  1) Otter Tail shall submit annually to the South Dakota Public Utilities Commission the Minnesota Public Utilities Commission Order approving Otter Tail's composite energy rate and, also, data on any planned acquisitions of new wind power or contract changes to existing wind power contracts; 2) Should Otter Tail's costs exceed rates for the renewable program, Otter Tail will not be able to recover those deficits retroactively; and 3) Otter Tail shall submit a summary report of the refund to the commission when the refund is complete.  Commissioner Hanson seconded and Chairman Sahr concurred.  Motion passed 3-0.

 

5.      EL06-007         In the Matter of the Filing by Xcel Energy for Approval of its 2005 Economic Development Annual Report and 2006 Economic Development Plan.   (Staff Analyst:  Nathan Solem, Staff Attorney:  Karen Cremer)

 

Mr. Jim Wilcox, Xcel Energy stated that Xcel is requesting approval of its 2005 economic development report and the proposed 2006 economic development budget. The report includes the budget that was planned for the year 2005, the actual economic development investments that Xcel Energy made in 2005, and the planned budget for 2006.  Mr. Dave Jacobson stated that the planned budget for 2006 is $100,000.00.  There is no significant change in the budget line amounts in 2006.  Mr. Jacobson recommended approval of the 2005 Economic Development Report and the proposed 2006 Economic Development Plan.

 

Commissioner Hanson moved to approve the 2005 Economic Development Report and the proposed 2006 Economic Development Plan.  Commissioner Johnson seconded and Chairman Sahr concurred.  Motion passed 3-0.

 

6.     EL06-008         In the Matter of the Joint Request for an Electric Service Rights Exception between Southeastern Electric Cooperative, Inc. and Sioux Valley-Southwestern Electric Cooperative, Inc. d/b/a Sioux Valley Energy.  (Staff Analysts:  Nathan Solem and Martin Bettmann, Staff Attorney:  Karen Cremer)

 

Ms. Karen Cremer stated that Sioux Valley-Southwestern Electric Cooperative, Inc. (SVE) and Southeastern Electric Cooperative, Inc. (SEC) are jointly requesting an Electric Service Rights Exception. SVE is seeking approval of an exception to the current electric territory agreement to provide 3-phase electric service to a new pond site for the City of Sioux Falls landfill. The pond site is located in the NW 1/4 of Section 7, Township 100 North, Range 51 West, in Lincoln County. The parties to this agreement agree that the public interest would be served by SVE providing electric service to the pond site. The consent on the part of SEC is limited to the specified service and will automatically terminate upon removal or abandonment of such service. The exception is not to be construed as having any impact upon or indicating any desire to change the service area assigned by the Commission.  Ms. Cremer recommended approval of this exception as it is avoids unnecessary duplication of facilities, provides adequate electric service to the customer affected and promotes the efficient and economical use and development of the electrical systems of the utilities as outlined in SDCL 49-34A-55.

 

Commissioner Johnson moved to approve the service rights exception between Sioux Valley-Southwestern Electric Cooperative, Inc. and Southeastern Electric Cooperative, Inc. in Docket EL06-008.  Commissioner Hanson seconded and Chairman Sahr concurred.  Motion passed 3-0.

 

7.     EL06-009           In the Matter of the Joint Request for an Electric Service Territory Boundary Change between West Central Electric Cooperative, Inc. and West River Electric Association, Inc.  (Staff Analysts:  Nathan Solem and Martin Bettmann, Staff Attorney:  Karen Cremer)

 

Jim Paul, West Central Electric Association (West River) stated that West Central Electric Cooperative, Inc. (West Central) is requesting approval of a Service Territory Transfer Agreement between West Central and West River Electric Cooperative Association, Inc.  West Central agrees to transfer to West River all of that portion of Section 6, Township 6 North, Range 18 East of the Black Hills Meridian, Haakon County, South Dakota for the purpose of extending service to Mr. Craig Hanrahan.  Mr. Hanrahan stated that he agreed with the territory boundary change.  Ms. Karen Cremer recommended approval of this territory transfer as it avoids unnecessary duplication of facilities, provides adequate electric service to this area and promotes the efficient and economical use and development of the electrical systems of the utilities as outlined for such transfers in SDCL 49-34A-55.

 

Commissioner Hanson moved to approve the territory boundary change between West Central Electric Cooperative, Inc. and West River Electric Cooperative Association, Inc. in Docket EL06-009.  Commissioner Johnson seconded and Chairman Sahr concurred.  Motion passed 3-0.

 

Natural Gas

 

1.     NG06-002            In the Matter of the Filing by MidAmerican Energy Company for     Approval of its 2005 Economic Development Report and its 2006     Economic Development Plan.  (Staff Analyst:  Dave Jacobson, Staff     Attorney:  Sara Greff)

 

Suzan Stewart, MidAmerican Energy Company (MidAmerican) stated that this is the normal economic development filing that is made every year.  Katherine Kunert stated that MidAmerican budgeted $109,907.00 for the program in 30 cities.  Mark Rodvold stated that the program is very similar to past filings.  MidAmerican will be working to utilize all of the carryover funds from the past few years this year.  Mr. Dave Jacobson stated that the budget amount is almost identical to the actual expenditures and the proposed budget is almost identical to last year.  Mr. Dave Jacobson recommended approval of MidAmerican's 2005 economic development report and its proposed 2006 economic development budget for Commission approval.

 

Commissioner Johnson moved to approve the 2005 Economic Development Report and the 2006 Economic Development Plan.  Commissioner Hanson seconded and Chairman Sahr concurred.  Motion passed 3-0.

 

Telecommunications

 

1.     TC05-060           In the Matter of the Filing by Midstate Telecom, Inc. for an Extension of an Exemption from Developing Company Specific Cost-Based Switched Access Rates.  (Staff Analyst:  Keith Senger, Staff Attorney:  Karen Cremer)

 

Ms. Darla Rogers, representing Midstate Telecom Inc. (Midstate) stated that staff and Midstate have reached a settlement agreement in this matter.  Midstate agreed upon a switched access rate of $.1150.  Mr. Keith Senger stated he filed a memo with the Commission on April 7, 2006.  This Settlement Agreement is limited to Midstate's CLEC operations and is not applicable to the ILEC operation. 

 

Commissioner Johnson moved to grant the Joint Motion, to approve the Stipulation Agreement which sets the switched access rate of $.1150 per access minute, and to grant an exemption from filing company specific cost data.  Commissioner Hanson seconded and Chairman Sahr concurred.  Motion passed 3-0.

2.     TC05-115        In the Matter of the Application of DelTel, Inc. for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota.  (Staff Analyst:  Bob Knadle, Staff Attorney:  Sara Greff)

Mr. Bob Knadle stated that DelTel, Inc. 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, in-WATS and out-WATS services to residential and business customers.  DelTel, Inc. has filed a $25,000.00 indemnity bond with the Commission and has requested a waiver of ARSD 20:10:24:02 (8) as it relates to filing a current cash flow statement.  Mr. Knadle recommended approval of the application and recommended granting a waiver of ARSD 20:10:24:02 (8).

 

Commissioner Hanson moved to grant DelTel, Inc.'s Certificate of Authority, subject to a continuous $25,000 surety bond and also moved to grant a waiver of ARSD 20:10:24:02 (8). Commissioner Johnson seconded and Chairman Sahr concurred. Motion passed 3-0.

 

3.      TC05-221     In the Matter of the Application of Comtel Telcom Assets LP for a Certificate of Authority to Provide Interexchange Telecommunications Services and Local Exchange Services in South Dakota.  (Staff Analyst:  Keith Senger, Staff Attorney:  Karen Cremer)

 

Mr. Keith Senger stated that on December 22, 2005, Comtel Telcom Assets LP filed an application for a Certificate of Authority to provide Local and Interexchange telecommunications service in South Dakota. Once all of the state and federal regulator approvals have been granted, Vartec Telecom Inc. and all of the VarTec companies will transfer the VarTec assets and customers to Comtel under the VarTec bankruptcy proceedings.  The applicant has provided the Commission with the $25,000 requested bond.  Mr. Senger recommended the Commission grant Comtel Telcom Assets LP local exchange and interexchange authority subject to rural safeguards and with the continuing bond requirement.  

Commissioner Hanson moved to grant Comtel Telcom Assets LP's a Certificate of Authority, subject to rural safeguards, and subject to a continuous $25,000 surety bond. Commissioner Johnson seconded and Chairman Sahr concurred. Motion passed 3-0.  

4.      TC05-222     In the Matter of the Application of Alltel Holding Corporate Services, Inc. for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota.  (Staff Analyst:  Bob Knadle, Staff Attorney:  Sara Greff)

 

Mr. Bob Knadle stated that Alltel Holding Corporate Services, Inc. (Alltel) filed an application seeking a Certificate of Authority to provide interexchange services throughout South Dakota on a resale basis.  Alltel intends to offer 1 plus, 800/888 and calling card services.  Alltel is also seeking permission to transfer existing Alltel Communications, Inc. customers to Alltel subject to the notice requirements set forth in 47 C.F.R Section 64.1120(e).  Alltel Communications Inc. was granted a Certificate of Authority on March 9, 2001, in docket No TC00-198.  Alltel Communications, Inc. is separating the wireline business from its wireless business.  In order to carry out this separation, a new wireline corporation has been developed, and is called Alltel Holding Corporation.  Applicant is a subsidiary of Alltel Holding Corporation.  Alltel Holding Corporation and Valor Communications Group are merging to form one corporation that is separate and apart from AllTel Communications, Inc.   Once the merger is completed, interexchange customers and assets of Alltel Communications, Inc. will be transferred to applicant.   Applicant has filed a $25,000.00 indemnity bond with the Commission and has requested a waiver of ARSD 20:10:24:02(8) which relates to filing current financial statements.  Mr. Knadle recommended approval of the application subject to the following conditions:  That applicant provide a copy of the customer notification letter in accordance with 47C.F.R. Section 64.1120(e) to the Commission at least 30 days before any transfer of customers takes place; provide the date of the transfer to the Commission when it has been determined; and that Alltel Communications Inc. submits a letter to the Commission requesting cancellation of its Certificate of Authority once the merger is complete.  Mr. Knadle further recommended granting a waiver of ARSD 20:10:24:02(8). 

Commissioner Johnson moved to grant Alltel Holding Corporate Services Inc.'s Certificate of Authority, subject to a continuous $25,000 surety bond, subject to the three conditions set forth by staff in the paragraph above, and also moved to grant a waiver of ARSD 20:10:24:02 (8).  Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.

5.       TC06-001     In the Matter of the Filing by RC Communications, Inc. for an Exemption from Developing Company Specific Cost-Based Switched Access Rates.  (Staff Analyst:  Keith Senger, Staff Attorney:  Sara Greff)

 

Mr. Keith Senger stated that this is essentially the same settlement agreement as in Docket TC05-060.  Mr. Senger further stated that this company is not only a CLEC but also an ILEC.  This settlement agreement is for only the CLEC access rates for RC Communications, Inc.  Mr. Senger recommended approval of the Joint Motion, the stipulation agreement and the switched access rate.

 

Commissioner Johnson moved to grant the Joint Motion, to approve the Stipulation Agreement which sets the switched access rate of $.1150 per access minute, and to grant an exemption from filing company specific cost data.  Commissioner Hanson seconded and Chairman Sahr concurred.  Motion passed 3-0.

 

6.     TC06-022       In the Matter of the Petition for Arbitration and Approval of Interconnection Agreements between Qwest Corporation and Dakota Electronics, Golden West Technologies, Inc., Nextel West Corp., Vantek Communications, Inc. and Priority Paging, Inc.  (Staff Analyst:  Harlan Best, Staff Attorney:  Sara Greff)

 

Colleen Sevold, Qwest Corporation (Qwest) stated that Qwest now has an agreement with Golden West Technologies, Inc. and Qwest did not need an agreement with Priority Paging, Inc.  Ms. Greff recommended granting Qwest's Motion to Dismiss its Petition for Approval of Interconnection Agreements to implement FCC Ruling in the T-Mobile Order as it relates to Golden West Technologies, Inc. and Priority Paging, Inc. 

 

Commissioner Johnson moved to grant Qwest's Motion to Dismiss its Petition for Approval of Interconnection Agreements to implement FCC Ruling in the T-Mobile Order as it relates to Golden West Technologies, Inc. and Priority Paging, Inc.  Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.

 Administrative

 

1.         In the Matter of the Potential Adoption of Rules Regarding Eligibility, Certification and Reporting Requirements for Eligible Telecommunications Carriers

 

Ms. Rolayne Wiest recommended open a rulemaking docket regarding Eligibility Certification and Reporting Requirements for Eligible Telecommunications Carriers. 

 

Commissioner Johnson moved to opening a rulemaking docket regarding Eligibility Certification and Reporting Requirements for Eligible Telecommunications Carriers.  Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.

 

Meeting adjourned.

 

___________________________________

Tina Douglas

Administrative Secretary