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South Dakota Public Utilities Commission Meeting
Tuesday, June 13, 2006, at 1:30 P.M.
1800 E Spruce Street, Mitchell, South Dakota
2205 Career Place/USDSU Building RM 282, Sioux Falls, South Dakota
501 E Saint Joseph St/Classroom Building RM 109, Rapid City, South Dakota
DDN Room Cap A, State Capitol Building, 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 Attorney John Smith; Commission Advisor Greg Rislov; Staff Attorney Sara Greff; and Court Reporter Pat Beck;.
Also present were Dave Gerdes, May, Adam, Gerdes & Thompson, representing Xcel Energy; Alan Glover, Glover, Helsper, and Rasmussen, representing Sioux Valley Energy; Jim Wilcox, Xcel Energy; Darryl Tomak and John Archer, Dakota Vinyl Extrusions; Larry Englerth, South Dakota One Call; Meredith Moore, Cutler & Donahoe, representing Myrl and Roy's Paving; and Patty Nohr, Myrl and Roy's Paving.
Joining the meeting by telephone or DDN were Chairman Bob Sahr; Commission Attorney Rolayne Ailts Wiest; Staff Attorney Karen Cremer; Staff Analysts Dave Jacobson, Harlan Best, Bob Knadle, Martin Bettmann, Phil Lusk, Steve Wegman, Keith Senger, and Nathan Solem; Consumer Affairs Supervisor, Deb Gregg; Administrative Secretary Tina Douglas; Brett Koenecke, May, Adam, Gerdes & Thompson, representing NorthWestern Energy; Darla Rogers, Riter, Rogers, Wattier & Brown, representing Codington-Clark Electric Cooperative, Inc. and South Dakota Rural Electric Association (SDREA); Doug Eidahl, Vantage Point; Jay Morris and Jeff Decker, NorthWestern Energy; Mary Sisak and Ben Dickens representing Swiftel Communications; Jason Topp, Qwest Corporation; Karen Huisenga , MidAmerican Energy; Rich Helsper, Glover, Helsper, and Rasmussen representing Brookings Municipal Utilities; Amy Koenig, Gunderson, Palmer, Goodsell & Nelson, representing WWC License L.L.C.; Mark Benton, MidState Telecom, Inc.; and Douglas Furlich, Aventure Communication Technology, 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 1097 consumer contacts during 2006. Since the last report was prepared for the May 23, 2006, Commission meeting, 167 of these contacts had been received; 30 contacts involved telecommunications services; 34 contacts involved electricity issues; 15 contacts involved natural gas issues; 22 contacts involved cellular phone issues; 48 contacts involved do not call issues; and 18 contacts involved issues not regulated by the Public Utilities Commission. In 2006, 963 of the 1,097 complaints registered have been resolved informally. In 2005, 1,671 of the 1,885 complaints registered have been resolved informally.
Electricity
Mr. Jim Wilcox asked that this docket be deferred. Ms. Karen Cremer recommended deferring this docket.
Commissioner Johnson moved to defer Docket EL05-023. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Ms. Darla Rogers, the South Dakota Rural Electric Association (SDREA) and Codington-Clark Electric Cooperative, Inc. (Codington-Clark) stated that on May 31, 2006, SDREA and Codington-Clark Electric Cooperative, Inc. filed Petitions for Intervention, and since this is a large load case they should be allowed to intervene. Mr. Brett Koenecke, NorthWestern Energy stated that this docket needs to move along in an orderly and timely fashion to be heard. Mr. Archer, Dakota Vinyl stated that the Petitions should be denied because they have been in ongoing discussions for four years with Codington-Clark. A date needs to be set and this docket needs to be resolved. Mr. Jay Morris concurred with Mr. Archer's statement. Ms. Karen Cremer recommended granting intervention to SDREA and Codington-Clark.
Commissioner Johnson moved to grant intervention to the South Dakota Rural Electric Association and Codington-Clark Electric Cooperative, Inc. in Docket EL06-014. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Mr. Jeff Decker stated that Bon Homme Yankton Electric Association is in agreement with this exception. Mr. Martin Bettmann, stated that on May 18, 2006, NorthWestern Corporation d/b/a NorthWestern Energy (NWE) and Bon Homme Yankton Electric Association, Inc. (BYE) filed a Joint Request for Electric Service Rights Exception for Commission approval. NWE is seeking approval of an exception to the current electric territory agreement to provide 3-phase electric service to an irrigation well. The well is located in the NW 1/4 of Section 1, Township 95 North, Range 58 West, in Bon Homme County, South Dakota. The parties to this agreement agree that the public interest would be served by BYE providing electric service to the well. The consent on the part of NWE is limited to the aforesaid 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. Mr. Bettmann recommended granting the service rights exception.
Commissioner Hanson moved to approve the service rights exception which will automatically terminate upon removal or abandonment of such service in EL06-015. Commissioner Johnson seconded and Chairman Sahr concurred. Motion passed 3-0.
One Call
Ms. Sara Greff stated that on July 1, 2005, pursuant to SDCL 49-7A-17, the South Dakota One-Call Board (Board) received a complaint filed by Montana-Dakota Utilities Co. of Rapid City, South Dakota (MDU) against Vince Finkhouse d/b/a Eagle Excavating of Rapid City, South Dakota (Finkhouse). According to the complaint, Finkhouse hit a natural gas service line owned by MDU while excavating. The complaint alleged that Finkhouse: 1) failed to notify the One-Call System prior to commencing excavation; 2) failed to maintain a minimum clearance of eighteen inches between a marked underground facility and the cutting edge of mechanical equipment; and, 3) failed to provide notification to the utility of damage to an underground facility. Pursuant to SDCL 49-7A-22, a five member panel (Panel) was appointed by Kevin Kouba, Chairman of the Board, for the purpose of determining whether there was probable cause to believe there had been a violation of any statute or rule of the Board. The Panel met on August 19, 2005. The Committee found there was probable cause that Vince Finkhouse, d/b/a Eagle Excavating, while excavating at 16630 Elk Horn Road, Piedmont, SD, had damaged an underground gas line and failed to notify Montana-Dakota Utilities or the South Dakota One Call Center as required by SDCL 49-7A-82. The committee recommended a penalty of one-thousand dollars ($1000) against Vince Finkhouse, d/b/a Eagle Excavating, for this violation. The committee determined that the conditions identified in this complaint clearly indicate that SDCL 49- 7A-19 applies to this violation. In addition to the previously identified penalty under SDCL 49-7A-18 the committee recommended an additional penalty of five-thousand dollars ($5000) against Vince Finkhouse, d/b/a Eagle Excavating for this violation. As of June 5, 2006, Finkhouse has not paid the assessed penalties. The One Call Board would like to proceed with this docket and take civil action because the One Call Board can't collect the monies otherwise. Ms. Greff recommended filing a Civil Complaint.
Commissioner Hanson moved to have staff proceed with filing a Civil Complaint against Vince Finkhouse d/b/a Eagle Excavating. Commissioner Johnson seconded and Chairman Sahr concurred. Motion passed 3-0.
Telecommunications
1. In the Matter of the Filing for Approval of Amendments to Agreements in Dockets TC06-008, TC06-019, TC06-029, and TC06-044.
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 Sahr moved to approve the Amendments to the Agreements in TC06-008, TC06-019, TC06-029, and TC06-044. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
1. In the Matter of the Filing for Approval of Agreements in Dockets TC06-018, TC06-028, TC06-045, TC06-050, and TC06-051.
Ms. Sara Greff 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.
Chairman Sahr moved to approve the Agreements in TC06-018, TC06-028, TC06-045, TC06-050, and TC06-051. Commissioner Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0.
Mr. Phil Lusk stated that on March 27, 2006, YMax Communications Corp. (YMax) filed an application seeking a Certificate of Authority to provide local exchange services using a combination of either unbundled network elements or resold services within Qwest Corporation's South Dakota service territory. YMax may eventually provide local services via its own switching facilities. Mr. Lusk further stated that YMax is asking for a waiver for 20:10:32:03(11). Mr. Lusk recommended the Commission approve the Certificate of Authority for local exchange services for YMax subject to restrictions from accepting deposits or advance payments and from offering prepaid services and to comply with the rural safeguards and approval of the waiver.
Commissioner Johnson moved to grant YMax's Waiver of 20:10:32:03(11) and grant the Certificate of Authority, subject to rural safeguards, with restrictions from offering prepaid calling cards or accepting customer deposits or advance payments without prior approval of the Commission. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Mr. Nathan Solem, stated that on May 1, 2006, Nationwide Long Distance Service, Inc. filed an application seeking a Certificate of Authority to resell interexchange services including 1+ and 101XXXXX outbound dialing, 800/888 Toll-Free inbound dialing, directory assistance, data services and postpaid calling card services throughout South Dakota. The company has requested a waiver from ARSD 20:10:24:02(8) as it relates to filing a current cash flow statement 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. Solem recommended the Commission approve Nationwide Long Distance Service, Inc.'s Certificate of Authority, with restrictions, and grant the waiver.
Commissioner Hanson moved to grant the waiver of ARSD 20:10:24:02(8) and grant Nationwide Long Distance Service, Inc.'s Certificate of Authority with restrictions from offering prepaid calling cards or accepting customer deposits or advance payments without prior approval of the Commission. Commissioner Johnson seconded and Chairman Sahr concurred. Motion passed 3-0.
Mr. Jason Topp stated that on May 26, 2006, Qwest filed a Petition for Intervention. Ms. Darla Rogers, Midstate Telecom, Inc. stated that it had no objection to the intervention. Ms. Karen Cremer recommended that Qwest be granted the intervention.
Commissioner Johnson moved to grant intervention to Qwest in Docket TC06-035. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
6. In the Matter of the Petition for Arbitration of Interconnection Agreements in Dockets TC06-036, TC06-037, TC06-038, TC06-039, TC06-040, TC06-041, and TC06-042.
Mr. Rich Coit, SDTA, suggested that the Commission defer this item in the docket because they are in discussions with WWC License L.L.C. regarding this intervention.
Commissioner Johnson moved to defer action in Dockets TC06-036, TC06-037, TC06-038, TC06-039, TC06-040, TC06-041, and TC06-042. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Ms. Mary Sisak stated that on June 1, 2006, Brookings Municipal Utilities d/b/a Swiftel Communications (Swiftel), filed a Petition to Intervene and are asking for Petition to be granted. Dave Gerdes, MCC Telephony of the Midwest, Inc., d/b/a Mediacom (MCC), stated that MCC has no intention to apply for service in the Swiftel area but only in the Qwest area and objected to the intervention. Ms. Sara Greff stated that staff has no objection to the intervention
Commissioner Johnson moved to deny intervention to Swiftel in Docket TC06-046. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Mr. Rich Coit, SDTA, stated that Aventure Communication Technology, L.L.C.'s ("Aventure") filing will require the Commission to look into rural safeguards issues and that ILECs should be permitted to intervene. Meredith Moore stated that on June 2, 2006, Alliance Communications Cooperative, Inc. filed a Petition for Intervention and requested the Petition to granted. Douglas Furlich, Aventure Communications, had no objections to the interventions. Ms. Sara Greff recommended granting intervention to Alliance Communications Cooperative, Inc., Jefferson Telephone Company d/b/a Long Lines, Vivian Telephone Company d/b/a Golden West Telecommunications, PrairieWave Communications, and South Dakota Telecommunication Association.
Commissioner Hanson moved to grant intervention to Alliance Communications Cooperative, Inc., Jefferson Telephone Company d/b/a Long Lines, Vivian Telephone Company d/b/a Golden West Telecommunications, PrairieWave Communications, and South Dakota Telecommunication Association in Docket TC06-047. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Ms. Darla Rogers, Interstate Telecommunications Cooperative, stated that on May 18, 2006, the Commission received a Petition from Interstate Telecommunications Cooperative (ITC) requesting the Commission grant an extension of the six month filing deadline for its 2006 intrastate switched access cost study. ITC is required to a file cost study every 3 years, and so would be required to file in 2006. Mr. Keith Senger stated that there are no intervenors in this docket. Mr. Senger recommended granting an extension for filing its 2006 Cost Study until December 31, 2006.
Commissioner Johnson moved to grant ITC the extension for filing its 2006 Cost Study until December 31, 2006, Docket TC06-048. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
10. TC06-049 In the Matter of the Filing by West River Cooperative Telephone Company for an Extension of Deadline for Filing its 2006 Cost Study. (Staff Analyst: Keith Senger, Staff Attorney: Karen Cremer)
Ms. Darla Rogers, West River Cooperative Telephone Company, stated that on May 18, 2006, the Commission received a petition from West River Cooperative Telephone Company (West River) requesting the Commission grant an extension of the six month filing deadline for its 2006 intrastate switched access cost study. Mr. Keith Senger stated that there are no intervenors in this docket. Mr. Senger recommended granting an extension for filing its 2006 Cost Study until December 31, 2006.
Commissioner Johnson moved to grant West River the extension for filing its 2006 Cost Study until December 31, 2006, Docket TC06-049. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Administration
1. Consideration of Amendments to the Commission's Procedural Rules to Implement Electronic Filing and to Update Complaint Procedures and Other Procedural Rules. (Commission Attorney: John Smith)
Mr. John Smith stated that the Administrative rules currently governing the filing of documents with the Commission require paper filing and paper service of all documents, and require parties to include 10 copies of all documents submitted to the Commission. For some time now, the Commission has been exploring ways to utilize the Internet and computer technology both to reduce the flow of paper and to make the Commission's operations more efficient and economical for both the Commission and its staff and for constituents. Additionally, as the case load at the Commission has evolved over time and an increasing number of filings have involved inter-company cases, discussions among the Commission, Staff and counsel who regularly practice before the Commission have suggested the appropriateness of changes to the Commission's complaint procedures and other procedural rules to reflect these changes and the realities of the way cases are currently handled. Mr. Smith recommended opening a rulemaking docket and accepting comments regarding this proceeding.
Commissioner Hanson moved to open a rulemaking docket and accept comments in this proceeding. Commissioner Johnson seconded and Chairman Sahr concurred. Motion passed 3-0.
Complaints
See Transcript online:
/commission/minutes/minutes_2006/transcripts/061306ce06-002.pdf
Commissioner Hanson moved to grant the Motion to Dismiss in Docket CE06-002. Commissioner Hanson seconded and Chairman Sahr dissented. Motion passed 2-1.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
