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South Dakota Public Utilities Commission Meeting
Tuesday, September 26, 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. 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 Keith Senger, Harlan Best, Nathan Solem, Phil Lusk, and Bob Knadle; Consumer Affairs Supervisor, Deb Gregg; and Administrative Secretaries Tina Douglas and Carol Zebroski.
Also present were: David Gerdes, May, Adam, Gerdes & Thompson, representing Montana- Dakota Co., Navitas Energy, Inc., MCC Telephony of the Midwest, Inc., NorthWestern Corporation and Midcontinent Communications; Darla Rogers, Riter, Rogers, Wattier & Brown, representing South Dakota Rural Electric Association (SDREA) and RT Communications, Inc.; Audrey Ricketts, SDREA; and Gordon Woods, South Dakota Intrastate Pipeline.
Joining the meeting by telephone were Brian Iverson and Jackie Sargent, Black Hills Corporation; Ryan Taylor, Cutler & Donahoe representing Interstate Telecommunications Cooperative, Inc.; Jeff Decker, NorthWestern Energy; Rodney, Thiemann, Great Plains Communications; Andrew Moratzka and Tim Droel, Mackall, Crounse & Moore representing Rushmore Forest Products ; Rita Mulkern, Montana-Dakota Utilities Co.; Carrie Rice, Heartland Telecommunications Company of Iowa; and Ann Sokolin-Maimon and J.R. Walden, MCC Telephony of the Midwest, 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 1,778 consumer contacts during 2006. Since the last report was prepared for the September 12, 2006, Commission meeting, 83 of these contacts had been received; 22 contacts involved telecommunications services; 15 contacts involved electricity issues; 12 contacts involved natural gas issues; 16 contacts involved cellular phone issues; 8 contacts involved do not call issues; and 10 contacts involved issues not regulated by the Public Utilities Commission. In 2006, 1,478 of the 1,778 complaints registered have been resolved informally. In 2005, 1,674 of the 1,885 complaints registered have been resolved informally.
Natural Gas
Mr. Bob Knadle stated on September 1, 2006, Northwestern Energy filed an application seeking approval of revisions to the fuel retention percentage in the gas transportation tariff. The proposed revisions would increase the fuel retention percentage. Mr. Knadle recommended that the tariff revisions be approved and be effective for service rendered on and after October 1, 2006.
Commissioner Hanson moved to approve the tariff revisions in NG06-007 to be effective for service rendered on and after October 1, 2006. Commissioner Johnson seconded and Chairman Sahr concurred. Motion passed 3-0.
Ms. Karen Cremer stated that James Robbenolt, representing SDIP, had filed a Request to Withdraw the Petition and asked that the docket be closed. Ms. Cremer recommended that the withdrawal be granted and the docket be closed.
Chairman Sahr moved to grant the withdrawal and close Docket NG06-008. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
3. NG06-012 In the Matter of the Application of Montana-Dakota Utilities Co. for a Waiver of Tariff (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)
Mr. Bob Knadle stated that on September 11, 2006, Montana-Dakota Utilities Co. (MDU) filed for a waiver of Section 4 of its South Dakota PGA tariff, which specifies that the surcharge adjustment is effective May 1 of each year. MDU is requesting a waiver of the May 1st date and is proposing to implement an out of cycle surcharge adjustment to apply during the period of October 1, 2006, through April 30, 2007, due to an over recovery in the deferred gas cost account. The waiver would be applicable to both the Black Hills and East River natural gas systems. Mr. Knadle recommended approval of the waiver as requested in order to get the credits to customers sooner.
Commissioner Hanson moved to grant the waiver in Docket NG06-012. Commissioner Johnson seconded and Chairman Sahr concurred. Motion passed 3-0.
Telecommunications
Mr. Bob Knadle stated the Commission received an application from Vanco Direct USA, LLC for a Certificate of Authority to provide resold local exchange services in the existing service areas of Qwest and resold interexchange telecommunication services throughout South Dakota. 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. Mr. Knadle further recommended granting the waivers of ARSD 20:10:24:02(08) and 20:10:32:03(11).
Chairman Sahr moved to grant the waivers of ARSD 20:10:24:02(8) and 20:10:32:03(11), and grant Vanco Direct USA, LLC 's Certificate of Authority subject to rural safeguards and 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 Commissioner Hanson concurred. Motion passed 3-0.
Mr. Phil Lusk stated that on May 12, 2006, MCC Telephony of the Midwest, Inc., d/b/a Mediacom ("MCC") filed an application seeking a combined Certificate of Authority to provide competitive facilities-based and resold basic local exchange and intrastate interexchange services, including non-switched, switched local services and special access services to customers in the state of South Dakota. MCC also seeks full authority to provide telecommunication services such as private line services to residential and business customers throughout the state. MCC proposes to provide the services through a combination of its own facilities and on a resale basis. MCC will be providing VoIP services. While the calls of all MCC customers will interact with the public switched telephone network (PSTN), calls made by customers from their homes will originate on MCC's proprietary network and not over the PSTN. Mr. Lusk further stated that they are in compliance with the FCC requirements for provision of 911 and E911 services. Based on a recent study, MCC's error rate falls well below standard 911 compliance. Ms. Ann Sokolin-Maimon, MCC, stated that their 911 response is routed through the Sprint network. Mr. Lusk stated that the Applicant has requested waivers from ARSD 20:10:24:02(8) and 20:10:32:03 (11), and to grant MCC a certificate of authority. Mr. Lusk recommended granting the waivers of ARSD 20:10:24:02(8) and 20:10:32:03 (11), subject to a continuous $25,000 surety bond and rural safeguards.
Chairman Sahr moved to grant the waivers of ARSD 20:10:24:02(8) and 20:10:32:03(11), and to grant MCC Telephony of the Midwest, Inc.'s Certificate of Authority, subject to a continuous $ 25,000 surety bond, subject to rural safeguards. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Harlan Best stated that on July 25, 2006, Great Plains Communications, Inc. filed a request for a 30-day extension of the August 1 due date for filing the Annual ETC Certification and a Petition For Waiver of ARSD Sections 20:10:32:52 to 20:10:32:54, inclusive. The extension request was granted at the August 23, 2006 commission meeting. Mr. Best recommended granting the Waivers of ARSD Sections 20:10:32:52 to 20:10:32:54, inclusive. Mr. Best further stated that Great Plains Communications, Inc. (Great Plains) will comply with the Nebraska Public Service Commission requirements for ETC certification; which should be sufficient for the certification by South Dakota. Mr. Best also stated that Great Plains filed an estimate of how much Universal Service Support it may receive in the coming year and also filed estimated expenses. Great Plains expenses exceed the monies the company may receive for Universal Service Support. Great Plains stated that all 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 this docket as filed.
Commissioner Johnson moved to grant the Waivers of ARSD 20:10:32:52, 20:10:32:53, and 20:10:32:54, and 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 TC06-097. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
4. In the Matter of the Request for Certification Regarding its Use of Federal Universal Service Support in Dockets TC06-131, TC06-132, TC06-133, TC06-140, TC06-142, TC06-143, TC06-153, TC06-154, TC06-155, and TC06-160
Mr. Harlan Best stated both companies have been certified in Nebraska as intending to use federal funds in appropriate manner and have minimal presence in South Dakota. Mr. Best recommended that the Commission grant certification in these dockets as filed.
Chairman Sahr moved to 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 TC06-132 and TC06-133. Commissioner Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0.
Mr. Harlan Best stated that each of these companies filed a request estimating how much Federal 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 TC06-131, TC06-140, TC06-142, TC06-143, TC06-153, TC06-154, TC06-155, and TC06-160. Commissioner Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0.
Electricity
Mr. Andrew Moratzkea and Mr. Tim Dorel, representing Rushmore Forest Products (Rushmore) requested intervention as part of the Black Hills Intervenors group, as Rushmore has an interest in this docket. Mr. Brian Iverson, representing Black Hills Power stated that Black Hills Power had no objection to the intervention. Ms. Karen Cremer recommended granting intervention.
Commissioner Johnson moved to grant the Intervention to Rushmore Forest Products in Docket EL06-019. Commissioner Hanson seconded. Motion passed 2-0.
Ryan Taylor, Interstate Telecommunications Cooperative, Inc. (ITC) stated on September 8, 2006, ITC requested intervention. Darla Rogers, South Dakota Rural Electric Association (SDREA) stated that on September 11, 2006, SDREA requested intervention. Mr. David Gerdes, Navitas Energy, stated that Navitas has no objection to the interventions but feels the real parties of interest should also intervene as well. Ms. Karen Cremer stated that on September 19, 2006, the Local Review Committee filed a request for $2,000 from the Commission in order to hire a consultant to assist in carrying out the review committee's responsibilities. Ms. Cremer recommended granting the interventions and approving the request by the Local Review Committee to hire a consultant for $2,000.00.
Commissioner Hanson moved to grant the Interventions to Interstate Telecommunications Cooperative, Inc and to South Dakota Rural Electric Association in Docket EL06-020 and also approve the hiring of a consultant by the Local Review Committee for $2,000.00. Commissioner Johnson seconded. Motion passed 2-0.
Ms. Karen Cremer requested a deferral in Docket EL06-021.
Commissioner Johnson moved to defer Docket EL06-021. Commissioner Hanson seconded. Motion passed 2-0.
Mr. Brian Iverson, Black Hills Power, stated that on August 30, 2006, Black Hills Power Inc. and Black Hills Electric Cooperative filed a joint request to change a service territory boundary line in Section 19, Township 4N, Range 3E, Black Hills Meridian in Lawrence County. The existing territory line bisects a small development and this filing eliminates duplication of service within the development. The request would result in the transfer of six future customers within the development from BHEC to BHP which BHP has agreed to offset in another area with a similar territory agreement with BHEC by 2011. Mr. Nathan Solem stated that the landowner had agreed in writing to the boundary change. Mr. Solem recommended approval of the boundary change 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 Johnson moved to approve the territory boundary change between Black Hills Power, Inc. and Black Hills Electric Cooperative, Inc. Commissioner Hanson seconded. Motion passed 2-0.
Meeting adjourned.
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Carol Zebroski
Administrative Secretary
