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South Dakota Public Utilities Commission Meeting
Tuesday, July 11, 2006, at 9:30 A.M.
State Capitol Building, Room 412
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Chairman Bob Sahr called the meeting to order. Also present were Vice Chairman Dustin Johnson; Also present were; Executive Director Patty Van Gerpen; Commission Attorneys Rolayne Ailts Wiest and John Smith; Staff Attorneys Karen Cremer and Sara Greff; Staff Analysts Dave Jacobson, Martin Bettmann, Harlan Best, Bob Knadle, Phil Lusk, and Nathan Solem; Consumer Affairs Supervisor, Deb Gregg; Court Reporter Carla Bachand; and Administrative Secretary Tina Douglas.
Also present were Bob Miller, South Dakota Electric Utility Companies; Audry Ricketts and Ed Anderson, South Dakota Rural Electric Association (SDREA); Rich Coit, South Dakota Telecommunications Association (SDTA); Dave Gerdes, May, Adam, Gerdes & Thompson, representing NorthWestern Energy; Brett Koenecke, May, Adam, Gerdes & Thompson, representing Babcock & Brown Infrastructure LLP, (BBI); Pamela Bonrud, NorthWestern Energy; Mark Rolfes, Bruce Gerhardson, and Terry Graumnan, Otter Tail Power Company; Todd Guerrero, Lindquist & Vennum, P.L.L.P., representing Otter Tail Power Company; Joanne M. Haase, Boyce Greenfield Pashby & Welk LLP, representing Otter Tail Power Company; Darla Rogers, Riter, Rogers, Wattier & Brown, representing Golden West Companies, East River Electric and Basin Electric; and Harvey Oliver, representing Northern Electric Cooperative.
Joining the meeting by telephone were Mrg Simon, Missouri River Energy Service; Talbot Wieczorek, Gunderson, Palmer, Goodsell & Nelson representing AllTel; Colleen Sevold, Qwest Corporation; Doug Eidahl, Vantage Point Solutions; Meredith Moore and Ryan Taylor, Cutler & Donahoe Law Firm representing Midstate Telecom Inc.; Vik Mittal, Glazer Capital; Suzan Stewart, MidAmerican Energy; Jackie Sargent, Brian Iverson, and Rob Uzera, Black Hills Corporation; James A. Overcash and Paul Schudel, Woods & Aitken, The Golden West Companies; James Cremer and James Groft, James Valley Telephone; Larry Thompson; and Mary Jo Stueve.
Commissioner Hanson was in Germany and was unable to participate in the votes but listened to the Commission's webcast of the meeting.
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 1272 consumer contacts during 2006. Since the last report was prepared for the June 13, 2006, Commission meeting, 175 of these contacts had been received; 36 contacts involved telecommunications services; 29 contacts involved electricity issues; 4 contacts involved natural gas and electricity issues; 29 contacts involved natural gas issues; 31 contacts involved cellular phone issues; 27 contacts involved do not call issues; and 27 contacts involved issues not regulated by the Public Utilities Commission. In 2006, 1086 of the 1272 complaints registered have been resolved informally. In 2005, 1,674 of the 1,885 complaints registered have been resolved informally.
Complaints
See Transcript online:
/commission/minutes/minutes_2006/transcripts/transcript071106ct05-001.pdf
Chairman Sahr moved to approve the Motion to Substitute Corrected Exhibit. Commissioner Johnson dissented.
Commissioner Johnson moved to deny the Motion to Substitute Corrected Exhibit. Chairman Sahr dissented.
Unable to take action. The Motion to Substitute Corrected Exhibit is tabled.
Electricity
Mr. Rob Uzera, Black Hills Corporation, stated that on March 29, 2006, Black Hills Power Inc. filed a request to change a service territory boundary with Butte Electric described as the South ½ of Section 10, T5N, R4E, East of the Black Hills Meridian, Lawrence County, South Dakota. This filing is to implement a change originally agreed to on October 24, 1989, allowing Butte Electric to serve this area but inadvertently not filed nor changed at that time. Mr. Nathan Solem recommended approval of the territory transfer as both utilities still wish to honor the original 1989 agreement and all landowners are in agreement with making the already made change permanent. At this point in time, formal approval of this change would avoid unnecessary duplication of facilities, provide adequate electric service to this area and promote the efficient and economical use and development of the electrical systems of the utilities as outlined for such transfers in SDCL49-34A-55.
Chairman Sahr moved to approve the Request for an Electric Service Territory Boundary Change between Black Hills Power, Inc. and Butte Electric Cooperative, Inc. in Docket EL06-010. Commissioner Johnson seconded. Motion carried. 2-0
Harvey Oliver, Northern Electric Cooperative would like the Commission to grant its Petition for Intervene. Brett Koenecke, NorthWestern Energy had no objection to the intervention. Mr. Nathan Solem recommended granting the intervention.
Chairman Sahr moved to grant Northern Electric Cooperative, Inc.'s Petition to Intervene in Docket EL06-016. Commissioner Johnson seconded. Motion carried. 2-0
Phil Lusk stated that on August 8, 2005, the Energy Policy Act of 2005 ("EPAct 2005") was signed into law. Certain provisions in the EPAct 2005 amend the Public Utility Regulatory Policies Act ("PURPA") of 1978. The EPAct 2005 adds five new federal standards to PURPA. The five standards regard net metering, fuel diversity, fossil fuel generation efficiency, smart metering, and interconnection for distributed resources. Under the EPAct 2005, the Public Utilities Commission (Commission) has varying timelines within which to consider these standards and determine whether to adopt them. The Commission voted to open a docket to seek comments from interested persons or entities on how to proceed. The Commission requested comments on the following: 1) which electric utilities operating in South Dakota are affected by the standards and are subject to the Commission's jurisdiction? 2) Should the Commission open a docket for each utility or open a generic docket encompassing all of the affected utilities? 3) Should the Commission combine all of the standards, some of the standards, or have separate dockets for each standard? 4) Should the Commission hold evidentiary hearings with direct testimony and cross-examination? 5) If the Commission decides to implement any of the standards, should it do so through a rulemaking? 6) With respect to the net metering standard, should the Commission find it is not required to consider this standard given that the Legislature has already considered net metering in a past legislative session? Comments were received from the South Dakota Rural Electric Association and South Dakota Electric Utility Companies. Mr. Lusk stated that staff feels that net metering has been covered by the Legislature. David Gerdes, representing NorthWestern Energy, would like to see a docket open and feels that net metering has been covered already. Mr. Gerdes also stated that net metering has been brought in front of the Legislature five times. Ed Anderson, SDREA agrees that net metering has been in brought in front of the Legislature enough and should not berevisited at this time.
Chairman Sahr moved to open a docket regarding the issues above stated except for net metering. Commissioner Johnson seconded. Motion carried. 2-0
Mr. Dave Jacobson stated that it is standard practice for the Commission to suspend the tariff for 90 days and to assess a filing fee of $100,000.00. Mr. Jacobson recommended the Commission suspend the tariff and assess the filing fee.
Chairman Sahr moved to suspend the tariff 90 days beyond July 30, 2006, and to assess a filing fee not to exceed $100,000.00 in EL06-019. Commissioner Johnson seconded. Motion carried. 2-0
Gas and Electric
See Transcript online:
/commission/minutes/minutes_2006/transcripts/071106GE06-0012.pdf
Chairman Sahr moved to grant the Interventions of Missouri River Energy Services, Heartland Consumers Power District, South Dakota Power Company, East River Electric, and Basin Electric. Commissioner Johnson seconded. Motion carried. 2-0
Telecommunications
Mr. Bob Knadle stated that on November 4, 2005, AmeriVon 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 interexchange services, including MTS and travel card services to primarily residential and small business customers. Mr. Knadle recommended approval of the Certificate of Authority, subject to rural safeguards, and subject to the condition that the company not offer any prepaid services (including prepaid calling cards) and not accept or require any deposits or advance payments without prior approval of the Commission.
Commissioner Johnson moved to grant AmeriVon LLC's Certificate of Authority with restrictions from offering any prepaid services (including prepaid calling cards) or accepting customer deposits or advance payments without prior approval of the Commission. Chairman Sahr seconded. Motion passed 2-0.
Ryan Taylor, representing Midstate Telecom, Inc. stated (ETC) Midstate Telecom, Inc. filed a petition for designation as an eligible telecommunications carrier in the Chamberlain Exchange of Qwest Corporation. Mr. Harlan Best recommended that Midstate Telecom, Inc. be designated as an ETC for its requested service area.
Chairman Sahr moved to designating to Midstate Telecom, Inc. as an Eligible Telecommunications Carrier in the Chamberlain Exchange Area of Qwest Corporation. Commissioner Johnson seconded. Motion passed 2-0.
3. 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.
See Transcript online:
/commission/minutes/minutes_2006/transcripts/071106TC06-036.pdf
Chairman Sahr moved to grant WWC License L.L.C.‘s Motion to Use the Office of Hearing Examiners and grant the intervention of SDTA. Commissioner Johnson seconded. Motion carried. 2-0
4. In the Matter of the Filing for Approval of Agreements in Dockets TC06-059, and TC06-060.
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.
Commissioner Johnson moved to approve the Agreements in TC06-059, and TC06-060. Chairman Sahr seconded. Motion passed 2-0.
5. In the Matter of the Filing for Approval of Amendments to Agreements in Dockets TC06-055, TC06-056, TC06-057, TC06-058, TC06-061, and TC06-062.
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.
Commissioner Johnson moved to approve the Amendments to the Agreements in TC06-055, TC06-056, TC06-057, TC06-058, TC06-061, and TC06-062. Chairman Sahr seconded. Motion passed 2-0.
Rich Coit, South Dakota Telecommunications Association (SDTA), stated that it is requesting Intervention in this docket.
Commissioner Johnson moved to grant SDTA's intervention in TC06-063. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Ms. Sara Greff stated that comments have been filed in this docket by Venture Communications, Golden West Companies, and SDTA. Mr. James Cremer, James Valley Cooperative Telephone Company, stated that this Interconnection Agreement meets all statutory regulatory requirements. Talbot Wieczorek, AllTel stated that this Agreement was discussed among the parties and settled upon over several months. Mr. Rich Coit, SDTA, stated that SDTA has serious concerns on a single unified rate of all the traffic. Ms. Darla Rogers, Venture Communications stated it concurs with SDTA's comments that a single rate for all traffic is against the Federal Act, that a single rate could violate state statutes and that this Agreement should not set any precedent. Ms. Greff stated that each agreement is separate and unique. Ms. Greff stated that the Agreement has been properly filed, has been properly executed and does not appear to contain discriminatory provisions, and recommended approval of the Agreement.
Chairman Sahr moved to approve the Agreement in TC06-043. Commissioner Johnson seconded. Motion passed 2-0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
