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South Dakota Public Utilities Commission Meeting
Tuesday, August 8, 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; Commissioner Gary Hanson; Executive Director Patty Van Gerpen; Deputy Executive Director Heather Forney; 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 Secretaries Tina Douglas and Judy Page.
Also present were Dave Gerdes, May, Adam, Gerdes & Thompson, representing NorthWestern Energy, Montana-Dakota Utilities and Navitas Energy; Mike Sydow, Mike Hanson, Tom Knapp and Pam Bonrud, NorthWestern Energy; Audry Ricketts and Ed Anderson, South Dakota Rural Electric Association (SDREA); Brad Scott, Oahe Electric; Larry Englerth, South Dakota One Call; Tom Marvin, South Dakota Municipal Electric Association (SDMEA); Darla Rogers, Riter, Rogers, Wattier & Brown, representing various Incumbent LEC companies, FEM, East River Electric, and Basin Electric; Bill Van Camp, Olinger, Lovald, McCahren & Reimers, representing AT&T; Bob Miller, South Dakota Electric Utility Companies; Rich Coit, South Dakota Telecommunications Associations (SDTA); Rod Bowar, Kennebec Telephone Company; Jennifer Wollman, Woods, Fuller, Schultz & Smith, representing Heartland Consumers Power District and South Dakota Power Company; Carl Anderson, South Dakota Grain & Feed Association; Keith Hainy, North Central Farmers Elevator; Paul Erickson, FEM Electric; Kevin Kouba, Otter Tail Power Company; Bill Heaston, PrairieWave Telecommunications Inc.; and Gene Drong.
Joining the meeting by telephone were Angela Nettler, Aberdeen American News; Rebecca DeCook, Holland & Hart, representing AT&T; Cory Kasuske, Sioux Valley Energy; Paul Erickson, FEM; Larry Nelson, South Dakota Municipal Electric Association; Jackie Sargent and Brian Iverson, Black Hills Corporation; Chris Howell, Burns & McDonnell, representing Basin Electric; Talbot Wieczorek, Gunderson & Palmer, representing WWC License LLC; Ryan Taylor, Cutler & Donahue, representing Golden West Companies; Janet Keller, AT&T; James Groft, Northern Valley Communications, LLC; Paul Schudel, Golden West; Rich Helsper, Glover, Helsper & Rasmussen, representing Global Polymer; Jason Top, Qwest Corporation; and Doug Eidahl, Vantage Point.
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 1,499 consumer contacts during 2006. Since the last report was prepared for the July 11, 2006 Commission meeting, 227 of these contacts had been received; 40 contacts involved telecommunications services; 52 contacts involved electricity issues; 20 contacts involved natural gas issues; 41 contacts involved cellular phone issues; 51 contacts involved do not call issues; and 23 contacts involved issues not regulated by the Public Utilities Commission. In 2006, 1,283 of the 1,499 complaints registered have been resolved informally. In 2005, 1,674 of the 1,885 complaints registered have been resolved informally.
Addendum
Gas and Electric
See Transcript online:
/commission/minutes/minutes_2006/transcripts/transcript080806ferc.pdf
Commissioner Johnson moved that the staff should pursue discussions with NorthWestern to attempt to settle FERC Docket EC06-127-00 and also approved hiring a consultant for the ring fencing and other issues in the FERC proceeding. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Telecommunications
1. 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/transcript080806tc06-036.pdf
Chairman Sahr moved to grant the Motion to Suspend the Procedural Schedule. Commissioner Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0.
Ms. Sara Greff stated that on May 30, 2006, Comtel Telcom Assets LP d/b/a VarTec Telcom and Comtel Telcom Assets LP d/b/a Excel Telecommunications (Comtel) filed a petition in accordance with ARSD 20:10:27:11, asking the Commission to exempt Comtel from filing company specific cost-based intrastate switched access rates. Comtel is further asking for waivers of ARSD 20:10:27:07 so that they not be required to come back before this commission every three years, 20:10:27:12 so they can mirror the Qwest Corporation rate instead of the LECA Plus rate, and 20:10:27:13 for billing and collection rates. Ms. Greff recommended the Commission approve Comtel Telcom Asset's petition and grant the waiver of ARSD 20:10:27:07, 20:10:27:12, and 21:10:27:13 and allow Comtel Telcom Assets to adopt the Qwest intrastate switched access rate with no time restrictions. Ms. Greff further recommended that the Commission allow Comtel Telcom Assets to file adjustments to its intrastate switched access rate so long as those adjustments either mirror Qwest's rate or are lower.
Chairman Sahr moved to Approve the Intrastate Switched Access Tariff, approve the waivers of ARSD 20:10:27:07, 20:10:27:12, and 21:10:27:13 and the Exemption from Developing Company Specific Cost-Based Switched Access Rates as long as Comtel Telcom Assets LP mirror Qwest's rates. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. David Gerdes, Midcontinent Communications, stated that on July 31, 2006, Midcontinent Communications (Midcontinent) filed a notice of intent to file and a request for extension of the deadline for filing a request for certification of federal universal service support. Midcontinent requests an extension to August 8, 2006. Ms. Karen Cremer recommended that the extension be granted.
Commissioner Hanson moved to grant the Extension to File the Certification Regarding its Use of Federal Universal Service Support to August 8, 2006. Commissioner Johnson seconded and Chairman Sahr concurred. Motion passed 3-0.
Complaints
Ms. Deb Gregg stated that Otter Tail Power Company has installed "soft-starts" on the irrigation Motors at the Golf Club in Hendricks, Minnesota to correct the problem and that the voltage fluctuation problems have ceased. Ms. Gregg recommended dismissing and closing the docket.
Chairman Sahr moved to dismiss the Complaint and close the Docket CE05-001. Commissioner Johnson seconded and Chairman Sahr concurred. Motion passed 3-0.
See Transcript online:
/commission/minutes/minutes_2006/transcripts/transcript080806ce06-003.pdf
Commissioner Hanson moved to Deny Intervention to SDMEA in Docket CE06-003. Chairman Sahr seconded and Commissioner Johnson dissented. Motion passed 2-1.
Electricity
Mr. Brian Iverson, Black Hills Power, stated that Black Hills Power filed a Request to Withdraw the Filing because Black Hills Chair Lift Company will be served at the current rates it is paying. Mr. Dave Jacobson recommended dismissing and closing this docket.
Chairman Sahr moved to grant the withdrawal and close the Docket EL04-037. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Russ Mather, Basin Electric Power Cooperative, Inc. stated that on December 22, 2004, Basin Electric Power Cooperative filed for Commission approval an application for an energy conversion facility permit. On May 16, 2005, a Letter and Stipulation were filed by Basin Electric. On June 7, 2005, the Commission granted a permit to construct subject to the Findings of Fact, Conclusions of Law and Terms and Conditions listed in the Stipulation. On July 10, 2006, Basin filed the Residential Compliance Testing Protocol for noise emissions. Ms. Karen Cremer stated that staff has reviewed the protocol. Ms. Karen Cremer recommended that the protocol be approved and that Basin hire a consultant to test the noise level.
Chairman Sahr moved to approve the hiring of a third party to test the noise level using the approved protocol that was filed with the Commission in Docket EL04-041. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. David Gerdes, Montana-Dakota Utilities Co.(MDU), stated that MDU is seeking approval to revise its Occasional Power Purchase Non-Time Differentiated Rate 95, Short-Term Power Purchase Time Differentiated Rate 96 and Long-Term Power Purchase Time Differentiated Rate 97. The filing is made in compliance with the Commission's Order in F-3365 and in accordance with the Special Terms and Conditions of these tariffs which state that the rate schedules will be reviewed annually and revised when necessary. Mr. Dave Jacobson stated that this is the same format and the same techniques used in previous dockets filed with the Commission. This tariff applies to a very small number of customers. Mr. Jacobson recommended approval of the tariff revisions.
Chairman Sahr moved to approve the tariff revisions in Docket EL06-017. Commissioner Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0.
Mr. Dave Jacobson stated that a Petition to Intervene and Notice of Appearance of Merillat Industries, LLC, GCC Dacotah, Inc., and Pope & Talbot, Inc., collectively referred to as the Black Hills Intervenors ("BHI") was filed on July 28, 2006, and that staff submitted a proposed contract for consulting services to the Commission. Mr. Jacobson also. Ms. Jackie Sargent, Black Hills Corporation, has no objection to the intervention. Mr. Dave Jacobson stated that Staff had no objection to intervention and recommended approving the proposed contract for consulting services.
Chairman Sahr moved to approve consultant services as stated in the proposal and grant the intervention of Black Hills Intervenors in Docket EL06-019. Commissioner Hanson seconded and Commissioner Johnson 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 $350,000.00 and the minimum fee chargeable by the Commission may not be less than $8,000.00. Mr. Knadle recommended that the Commission assess a filing fee not to exceed $350,000.00 with an initial deposit of $8,000.00 which the company has already provided and that the company shall from time to time make such additional deposits up to the total amount of the assessment as requested by the Deputy Executive Director. Mr. Dave Gerdes stated that Navitas Energy, Inc. agreed with the assessment and has already paid the initial deposit to the Public Utilities Commission.
Commissioner Johnson moved to assess a filing fee against Navitas Energy Inc. in Docket EL06-020 not to exceed $350,000.00 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 Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
Telecommunications
Mr. James Groft, Northern Valley Communications, stated that this docket has been discussed with staff and that is just clean up regarding this docket. Mr. Bob Knadle stated that on August 29, 2003, the Commission approved Northern Valley Communications, LLC's (Northern Valley) revised Intrastate Switched Access Tariff No. 1 subject to refund, with interest, should the final LECA rate be lower than the interim rate. The afore mentioned rates were based on LECA's tariff revisions that were approved by the Commission in Docket No. TC02-090 and were effective as of July 1, 2003. Docket No. TC03-113 was closed on August 29, 2003. By Order dated July 14, 2003, in Docket No. TC02-090, the Commission Ordered that LECA's tariff revisions are effective as of July 1, 2003, subject to refund with interest. The interim rate implemented on July 1, 2003, for carrier common line, switching, and transport totaled 10.55 cents. By Order dated November 13, 2003, in Docket No. TC02-090, the Commission Ordered that LECA's revised originating and terminating rates are hereby approved as filed on November 3, 2003, and shall be effective for telecommunications service rendered on and after December 1, 2003. The final rate implemented on December 1, 2003, for carrier common line, switching, and transport totaled 11.12 cents. Staff recommended that the Commission open Docket No. TC03-113 and enter an order that the rates approved by the Order dated August 29, 2003, should be the final rates and not subject to refund with interest because the interim rate approved for Northern Valley was less than the final Statewide average rate approved in TC02-090. Mr. Knadle recommended approval of reopening the docket and approval of the final rates not subject to refund with interest and then to reclose the docket.
Commissioner Hanson moved to reopen the docket and approve the final rates which are not subject to refund with interest and reclose the docket. Chairman Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
Mr. Larry Englerth stated that on July 20, 2005, the Commission received a letter from Commission Staff asking that the Commission open a docket or conduct some other type of proceeding regarding the implementation of 811. In its letter, Staff explained that the Federal Communications Commission (FCC) has issued a report and order regarding the designation and implementation of 811 as a National Abbreviated Dialing Code for One Call Notification. See In the Matter of the Use of N11 Codes and Other Abbreviated Dialing Arrangements, CC Docket No. 92-105, Sixth Report and Order (rel. March 14, 2005). Based on this report and order, Staff recommended the Commission open a docket to receive comments from industry on the implementation process and the Commission voted to open this docket at its July 28, 2005, meeting. Mr. Englerth further stated that the One Call Board is making three requests: 1) assign the 811 number to the South Dakota One Call Board 2) establish a transition date of December 31, 2006, and, 3) include the One Call Board's 1-800 number in the Order.
Chairman Sahr moved to approve the assignment of 811 to the South Dakota One Call Board; establish a transition date of December 31, 2006; and include the One Call Board's 1-800 number in the Order. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
3. In the Matter of the Filing for Approval of Agreements in Dockets TC06-067, TC06-081, TC06-084, TC06-085, and TC06-090.
TC06-084 In the Matter of the Filing for Approval of a Master Services Agreement between Qwest Corporation and Comtel Telcom Assets LP d/b/a VarTec Telecom (Staff Attorney: Sara Greff)
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 TC06-067, TC06-081, TC06-084, TC06-085, and TC06-090. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
4. In the Matter of the Filing for an Extension of Deadline for Filing a 2006 Cost Study in Dockets TC06-068, TC06-069, TC06-070, TC06-071, TC06-072, TC06-073, TC06-074, and TC06-075
Ms. Darla Rogers stated the companies above would like use the calendar year 2005 as their historical test year. Mr. Harlan Best stated these companies listed above are not subject to the 3 year requirement, these companies have filed in one or two years in past. Mr. Best recommended granting the waiver for each of the companies with 2005 test year.
Chairman Sahr moved to approve the Waiver of ARSD 20:10:27:14 to December 31, 2006, in TC06-068, TC06-069, TC06-070, TC06-071, TC06-072, TC06-073, TC06-074, and TC06-075. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Ms. Karen Cremer stated that Heartland Telecommunications of Iowa d/b/a HickoryTech (Heartland) requests that it be allowed to file a copy of its Iowa ETC certification with the SDPUC; and that the SDPUC accept such filing as sufficient to make the determination as to include Heartland on the list of certified carriers it provides to the FCC on or before October 1 of each year. Staff can't agree with this until staff sees the filing from Iowa made by Heartland. Staff would agree Heartland can file it, staff will review it and if staff needs additional information, staff will send a data request. Ms. Wiest recommended deferring this docket until staff has reviewed the filing that Heartland will file in Iowa.
Chairman Sahr moved to defer Docket TC06-078. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
6. In the Matter of the Filing for Approval of Amendments to Agreements in Dockets TC06-082, TC06-083, and TC06-089
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 Hanson moved to approve the Amendments to the Agreements in TC06-082, TC06-083, and TC06-089. Commissioner Johnson seconded and Chairman Sahr concurred. Motion passed 3-0.
Mr. Harlan Best stated that XO Communications Services, Inc. (XO) filed this tariff revision in their IXC, CLEC and switched access tariffs. The tariff revision is to add Historic Invoices to its South Dakota Access Service Tariff. XO "will furnish, upon Customer's request, copies of invoices which were originally issued to the Customer more than thirteen months prior to the request or copies of invoices that are available on-line, but that customer does not wish to retrieve from the available on-line system….Customer will be charged based on the format requested and on a per invoice basis." Mr. Best recommended approving the tariff revisions.
Chairman Sahr moved to approve the tariff revisions. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
COMPLAINT
See Transcript online:
/commission/minutes/minutes_2006/transcripts/transcript080806ct05007.pdf
Chairman Sahr moved the Commission deny PrairieWave's Motion to dismiss AT&T's counterclaim and also moved the Commission deny PrairieWave's Motion for Summary Judgment. Commissioner Johnson seconded and Commissioner Hanson dissented. Motion passed 2-1.
ELECTRIC
See Transcript online:
/commission/minutes/minutes_2006/transcripts/transcript080806el06011.pdf
Chairman Sahr moved to grant the Motion for Summary Disposition. Commissioner Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0
Meeting adjourned.
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Tina Douglas
Administrative Secretary
