Commission Minutes | previous page
South Dakota Public Utilities Commission Meeting
Wednesday, August 23, 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 Advisor Greg Rislov; Commission Attorneys Rolayne Ailts Wiest and John Smith; Staff Attorneys Karen Cremer and Kara Van Bockern; Staff Analysts Dave Jacobson, Keith Senger, Harlan Best, Bob Knadle, Phil Lusk, and Nathan Solem; Consumer Affairs Supervisor, Deb Gregg; and Administrative Secretary Tina Douglas.
Also present were Bob Miller, South Dakota Electric Utility Companies; Rich Coit, South Dakota Telecommunications Association (SDTA); Dave Gerdes, May, Adam, Gerdes & Thompson, representing NorthWestern Energy, Midcontinent Communications, MCI Communications Services, Inc. d/b/a Verizon Business Services, and Xcel Energy; Darla Rogers and Margo Northrup, Riter, Rogers, Wattier & Brown, representing Local Exchange Carrier Association (LECA); and Bill Van Camp, Olinger, Lovald, McCahren & Reimers, representing AT&T Communications of the Midwest, Inc.
Joining the meeting by telephone were Tom Welk and Chris Madsen, Boyce, Greenfield Pashby & Welk, representing Otter Tail Power Company and the Big Stone II Applicants; Todd Brink, Black Hills Corporation; Paul Schudel, Woods & Aitken, representing Golden West Telephone Companies; Ryan Taylor and Meredith Moore, Cutler & Donahoe representing Golden West Telephone Companies; Rodney Thiemann, Great Plains Communications, Inc.; Marlene Bennett and Ann Kuyper, Martin Group; Beth Goodpaster, Minnesota Center for Environmental Advocacy (MECA); Jean Calligan and Tami Crisman, MidAmerican Energy; Rod Bowar, Kennebec Telephone Company, Inc.; Ben Boyd, Itron Inc.; Tami Aberle, Montana-Dakota Utilities;Carrie Rice, Heartland Telecommunications Company of Iowa d/b/a HickoryTech Corporation; Michelle Singer Nelson, 360networks (USA) inc; Talbot Wieczorek, Gunderson, Palmer, Goodsell & Nelson representing WWC License, LLC, RCC Minnesota, Inc. and Wireless Alliance, L.L.C.; and Colleen Sevold, Qwest Corporation;
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 1,583 consumer contacts during 2006. Since the last report was prepared for the August 8, 2006, Commission meeting, 84 of these contacts had been received; 17 contacts involved telecommunications services; 15 contacts involved electricity issues; 11 contacts involved natural gas issues; 19 contacts involved cellular phone issues; 15 contacts involved do not call issues; and 7 contacts involved issues not regulated by the Public Utilities Commission. In 2006, 1,338 of the 1,583 complaints registered have been resolved informally. In 2005, 1,674 of the 1,885 complaints registered have been resolved informally.
Telecommunications
Mr. Keith Senger stated that on June 18, 2006, 360networks (USA) inc (360) filed an application for a Certificate of Authority to provide local exchange telecommunication services in South Dakota. 360 also provided a proposed switched access tariff. This application is somewhat unique in that the applicant will not provide any retail local exchange services to end-users but instead will only provide switched access services to other telecommunications carriers. Additionally, the original application seemed to request authority to provide service in the service territory of rural ILECs which prompted an intervention by SDTA. Subsequently, the applicant has filed a Petition in accordance with ARSD 20:10:27:11 asking for an exemption from filing company specific cost based rates, and has asked for waivers of ARSD 20:10:27:12 and 20:10:27:13 in that they not be required to use the LECA plus rates for switched access and billing and collections. Instead, the company is proposing a Qwest blended switched access rate. Since the company is not providing any local exchange services to retail end-users, the applicant has also requested a waiver from ARSD 20:10:32:03(13) which requires them to file a local exchange tariff. The applicant has agreed to the rural safeguard restrictions in that it will offer local exchange services in South Dakota, except in those areas served by a rural telephone company. In the future, should the applicant choose to provide local exchange services statewide, with respect to rural telephone companies, the applicant will have to come before the Commission in another proceeding. Based on the financial information provided in this docket, staff would normally request the company to file a bond or agree to restrictions from collecting any customer deposits or advanced payments or from offering any prepaid services. However, since this company will not be providing services to end-users, the customer who the bond or the restriction are intended to protect, Mr. Senger stated that he did recommend to the company that the company does not need to file a bond or agree to the restrictions. Instead the Applicant has agreed to limit it's authority to wholesale switched access services only. The applicant will not provide any telecommunications services to any retail, end user customers. Should the applicant choose to provide retail services, the applicant will have to come before the Commission in another proceeding. Mr. Senger recommended the Commission approve the local exchange certificate with restrictions from providing retail end-user services, limiting 360 to the provisioning of wholesale services to other telecommunications carriers only, subject to rural safeguards. Mr. Senger also recommended the Commission grant 360 an exemption from developing company specific cost-based rates, grant the waivers of ARSD 20:10:27:12 and 13 and allow 360 to adopted a blended Qwest intrastate switched access rate and approve the switched access tariff. Finally, Mr. Senger recommended that the Commission allow 360 to file adjustments to its intrastate switched access tariff so long as those rate adjustments either mirror Qwest's rate or are lower.
Chairman Sahr moved to grant 360networks (USA) inc's a Certificate of Authority, subject to rural safeguards, subject to the conditions set forth by staff in the paragraph above, and also moved to grant a waivers of ARSD 20:10:27:12 and 13 and allow 360 to adopted a blended Qwest intrastate switched access rate, and to approve 360's switched access tariff allowing 360 to file adjustments to its intrastate switched access tariff so long as those rate adjustments either mirror Qwest's rate or are lower. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Electricity
Ms. Mary Jo Stueve stated that she has no additional comments and awaits the Commission's decision. Ms. Beth Goodpaster, MECA, stated MECA filed a letter in support of Mary Jo Stueve's Application for Reconsideration and Application for Reconsideration Second Application. Mr. Tom Welk, Otter Tail Power Company stated that these Applications should be denied as there are no new issues that have been brought forth in either Application. Ms. Karen Cremer recommended that both Applications be denied.
Commissioner Johnson moved to deny Mary Jo Stueve's Application for Reconsideration and Application for Reconsideration Second Application. Commissioner Hanson seconded. Motion carried. 2-0
Mr. Jim Wilcox, Xcel Energy (Xcel) stated that on August 26, 2005, Xcel Energy (Xcel) submitted an application for a Construction Permit to build 9.6 miles of 345 kV Transmission Line from Split Rock to Lakefield Junction and add Facilities to the Split Rock Substation. A new 345 kilovolt line from the Split Rock Substation located west of Brandon, South Dakota to the Minnesota line is proposed to be constructed. A Joint Stipulation between Xcel and Commission Staff was filed on June 6, 2006. On August 15, 2006, Xcel filed a letter with the Commission asking for a waiver of the one year deadline pursuant to SDCL 49-41B-24 for an additional period of time before the Commission's Final Decision. Ms. Karen Cremer recommended waiving the one year deadline and that a December 31, 2006, deadline should be set, which should give Xcel ample time to finalize the stipulation.
Commissioner Johnson moved to grant a waiver to Xcel Energy regarding the one year deadline and the new deadline date should be December 31, 2006. Commissioner Hanson seconded. Motion carried. 2-0
ADDENDUM
Ms. Kara Van Bockern stated that staff had no objection to interventions of MidAmerican Energy Company, Itron, Inc., NorthWestern Energy, Montana-Dakota Utilities, and Xcel Energy and recommended granting intervention to the above stated companies.
Commissioner Hanson moved to grant intervention to MidAmerican Energy Company, Itron, Inc., NorthWestern Energy, Montana-Dakota Utilities, and Xcel Energy in EL06-018. Commissioner Johnson seconded. Motion carried. 2-0
Natural Gas
1. NG06-005 In the Matter of the Filing by Montana-Dakota Utilities Co., a Division of MDU Resources Group, Inc. for Approval of an Amendment to a Contract with Deviations with Merillat Corporation (Staff Analysts: Phil Lusk and Dave Jacobson, Staff Attorney: Karen Cremer)
Ms. Tami Aberle stated that on July 21, 2006, Montana-Dakota Utilities Co. (Montana-Dakota), a Division of MDU Resources Group, Inc., submitted for Commission approval Section No. 4, 5th Revised Sheet No. 1 and the underlying Amendment No. 3 dated June 15, 2006, to the current Agreement between Montana-Dakota and Merillat Corporation (Merillat). The existing agreement with Merillat was effective on November 1, 2003, pursuant to the Commission's Order issued on October 28, 2003, (Docket No. NG03-005) as subsequently amended to extend the term of the agreement in Docket Nos. NG04-006 and NG05-013. Amendment No. 3 provides for service to continue to Merillat for a one-year period ending October 31, 2007, under the terms of the original contract.
Chairman Sahr moved to approve the Amendment to the Contract with Deviations and the Tariff Revisions in NG06-005. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
2. NG06-006 In the Matter of the Filing by MidAmerican Energy Company for Approval of Tariff Revisions. (Staff Analyst: Dave Jacobson, Staff Attorney: Karen Cremer)
Ms. Jean Calligan, MidAmerican Energy (MidAmerican), stated that MidAmerican is asking for approval of revisions to its tariffed Monthly Metered Transportation Service and Interruptible Monthly Metered Transportation Service which would update the volumetric administrative charge. The currently approved tariff specifies an annual true up of this charge which this filing would accomplish.
Chairman Sahr moved to approve the Tariff Revisions in NG06-006. Commissioner Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0.
Telecommunications
Mr. Bob Knadle recommended granting the request from Ernest Communications, Inc. that its application be withdrawn at this time.
Chairman Sahr moved to grant the withdrawal of Ernest Communications, Inc.'s application. Commissioner Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0.
Mr. Phil Lusk recommended granting the request of Northstar Telecom, Inc. that its application be withdrawn without prejudice.
Chairman Sahr moved to grant the withdrawal of Northstar Telecom, Inc.'s application without prejudice. Commissioner Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0.
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.
Mr. Paul Schudel, representing Golden West Telephone Companies (Golden West), stated that it is requesting reconsideration of the Commission's Decision of July 11, 2006, regarding the use of the Office of the Hearing Examiners (OHE). Golden West feels that OHE is inexperienced in this area and that it does not have the expertise of the Commission. Golden West believes that it is not in the public interest of this docket to transfer this to OHE and requests that procedural schedule be set. Mr. Rich Coit, SDTA, stated that rate development will affect the public interest not just the parties to the case. He also stated that there is a difference in reading court transcripts and listening to a cross examination of a witness. SDTA believes that there is more than one permissible interpretation of 1-26-18.3 which could be read that it can be assigned to contract with OHE but the Commission is subject to may different Chapters. Ms. Kara Van Bockern said staff's position remains the same and recommended that the docket should be transferred to OHE. Mr. Talbot Wieczorek, Gunderson, Palmer, Goodsell & Nelson representing WWC License, LLC, stated that nothing has changed in the law or facts. This is the same argument that was discussed before the first decision. He restated that OHE is quite capable of handling this hearing like any Judge would do. OHE can ask questions if they do not understand the procedure or terminology of the telecommunications companies just like any other Judge would do.
Commissioner Johnson moved to deny the Motion to Reconsider the Commission's Decision of July 11, 2006, Regarding the Use of the Office of the Hearing Examiners. Chairman Sahr seconded and Commissioner Hanson concurred. Motion passed 3-0.
As for the second part of the Motion, Mr. Schudel stated that OHE has ability to hear all or part of the information and that the Commission can rule on the pending motions. Mr. Wieczorek doesn't believe the Commission can hold hearing certain motions and stated that the entire case should go to OHE for a decision and then the Commission can overrule OHE or agree with OHE. Ms. Van Bockern stated that OHE has the ability to hear all issues and then it can come back to the Commission for its decision. Ms. Rolayne Wiest also stated that once it was decided that this docket would be heard by OHE that the motions would also be heard by OHE.
Chairman Sahr moved that OHE will be hearing all motions and making its decision in this docket. Commissioner Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0.
4. TC06-054 In the Matter of the Application of Integrated Services, Inc. for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota (Staff Analysts: Phil Lusk and Keith Senger, Staff Attorney: Kara Van Bockern)
Mr. Phil Lusk stated that on June 1, 2006, Integrated Services Inc. (Integrated) filed an application seeking a Certificate of Authority to provide interexchange telecommunications services, including 1+ and 101XXXX outbound dialing, 800/888 Toll-Free inbound dialing, directory assistance, data services and postpaid calling card services to residential customers and small and mid-sized business customers within the State of South Dakota. Integrated requested a waiver of ARSD 20:10:24:02(08). Mr. Lusk recommended approval of the Certificate of Authority, 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. Mr. Lusk further recommended granting the waiver of ARSD 20:10:24:02(08).
Commissioner Hanson moved to grant the waiver of ARSD 20:10:24:02(8), and grant Integrated Services, Inc.'s Certificate of Authority subject to restrictions from offering any prepaid services (including 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.
5. TC06-076 In the Matter of the Establishment of Switched Access Revenue Requirement for City of Brookings Municipal Telephone Department. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)
Mr. Bill Van Camp, AT&T Communications of the Midwest, Inc., stated that on August 1, 2006, AT&T Communications of the Midwest, Inc. (AT&T) filed a Petition to Intervene and is requesting intervention in this docket. Ms. Karen Cremer recommended granting intervention for AT&T in this docket.
Chairman Sahr moved to grant the intervention of AT&T in Docket TC06-076. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Ms. Carrie Rice, Heartland Telecommunications Company of Iowa d/b/a HickoryTech Corporation, stated that the Petition could not be filed appropriately because it was difficult dealing with the Iowa Utilities Board as they had not completed its rulemaking docket. Heartland requested that the docket be dismissed and closed. Mr. Harlan Best recommended dismissing and closing the docket as the company did file in accordance with the administrative rules in TC06-042.
Chairman Sahr moved that Docket TC06-078 be dismissed and closed. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Ms. Darla Rogers, Local Exchange Carriers Association (LECA), stated that LECA did not object to granting intervention to MCI Communications Services, Inc. d/b/a Verizon Business Services, Midcontinent Communications and AT&T Communications of the Midwest, Inc. She also stated that the Commission might want to defer this intervention since a settlement is going on right now. Mr. Gerdes, MCI Communications Services, Inc. d/b/a Verizon Business Services and Midcontinent Communications, stated all the companies would like to see this docket settled and they should be granted intervention.
Chairman Sahr moved to grant the intervention of MCI Communications Services, Inc. d/b/a Verizon Business Services, Midcontinent Communications, and AT&T Communications of the Midwest, Inc. in Docket TC06-079. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
8. In the Matter of the Approval of Agreements in Dockets TC06-091 and TC06-092
Ms. Kara Van Bockern 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 TC06-091 and TC06-092. Commissioner Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0.
Ms. Karen Cremer stated that Great Plains Communications, Inc. (Great Plains) filed the requirements for USF certification with the Nebraska Public Service Commission on 8/31/06. Great Plains is requesting that it be allowed to file a copy of its Nebraska USF certification with the SDPUC; and that the SDPUC accept such filing as sufficient to make the determination as to include Great Plains on the list of certified carriers it provides to the FCC on or before October 1 of each year. Ms. Cremer stated that staff will need to look at the filing before they decide it is sufficient enough for certification in South Dakota. Ms. Cremer recommended deferring the waivers but granting the 30 day extension.
Chairman Sahr moved to defer the waiver question in Docket TC06-097. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Chairman Sahr moved to grant the 30 Day Extension in Docket TC06-097. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Harlan Best stated that the Commission is allowed to grant the request to waive the NeuStar Pooling Administrator's (Neu Star) utilization threshold requirements for assignment of a thousands block in the Flandreau rate center to meet a specific customer's need for two consecutive numbered hundred blocks. Mr. Best recommended granting the waiver but with the restriction that the two hundreds blocks given released to Neu Star if the customer or does not use the blocks.
Commissioner Johnson moved to grant the Waiver of the FCC's Utilization Threshold Requirements but with the restriction if Qwest Corporation does not use the two hundred blocks of numbers that the blocks of numbers will be returned to Neu Star. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
11. In the Matter of the Request for Certification Regarding its Use of Federal Universal Service Support in dockets TC06-094, TC06-095, T06-096, TC06-099, TC06-100, TC06-101, TC06-103, TC06-104
Ms. Rolayne Wiest stated that Midstate Telecom, Inc. did not answer one of the questions and maybe Docket TC06-104 should be deferred. Mr. Harlan Best stated that each of these companies filed a request estimating how much Universal Service Support it may receive in the coming year and also showed estimated expenses. In each docket the expenses exceeded the monies the company may receive for Universal Service Support. In each docket the company stated all the monies it receives for Universal Service Support will be used in the appropriate manner as required by the FCC. Mr. Best recommended that the Commission grant certification in each docket as filed.
Chairman Sahr moved that the Commission provide a letter of certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the plan for the use of federal universal services support as proposed in Dockets TC06-094, TC06-095, T06-096, TC06-099, and TC06-103. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Chairman Sahr moved that the Commission provide a letter of certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the plan for the use of federal universal services support as proposed in Docket TC06-104 with the requirement that Midstate Telecom, Inc. answer the one question. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Chairman Sahr moved that the Commission go into executive session to discuss the confidential documentation in Dockets TC06-100 and TC06-101. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Confidential Discussion
Chairman Sahr moved that the Commission come out of executive session. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Chairman Sahr moved to defer Docket TC06-100 and TC06-101. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Meeting adjourned.
___________________________________
Tina Douglas
Administrative Secretary
