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South Dakota Public Utilities Commission Meeting
Tuesday, October 31, 2006, at 9:30 A.M. CT
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 Attorney Kara Van Bockern; Staff Analysts Keith Senger, Harlan Best, Nathan Solem, Dave Jacobson, 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 Xcel Energy and Navitas Energy, Inc.; Darla Rogers, Riter, Rogers, Wattier & Brown, representing Sioux Valley Energy and Venture Communications, Inc.; Rich Coit, South Dakota Telecommunications Association; and Bob Miller, South Dakota Electric Utility Companies
Joining the meeting by telephone were Pam Rassumsen and Jim Wilcox, Xcel Energy; Talbot Wieczorek, Gunderson, Palmer, Goodsell & Nelson, representing Sprint Communications Company L.P. and Alltel Communications, Inc; James Cremer, Bantz, Gosch & Cremer, representing James Valley Wireless, L.L.C.; James Groft, James Valley Wireless, L.L.C.; Loretta Calabro and Cindy Grosvner, Consortia Consulting; Ryan Taylor, Cutler & Donahoe representing Interstate Telecommunications Cooperative, Inc. and Brookings Municipal Utilities d/b/a Swiftel Communications; James Overcash, Woods and Aitken, Rich Helsper, Glover, Helsper & Rasmussen, and Mary Sisak, Blooston Mordkofsky Dickens Duffy & Pendergast representing Brookings Municipal Utilities d/b/a Swiftel Communications; Suzan Stewart, Paul Leighton, Vickie Wonder, and Dave Badura, MidAmerican Energy; Doug Eidahl, Vantage Point Solutions; Jim Adkins, Brookings Municipal Utilities d/b/a Swiftel Communications; 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 2062 consumer contacts during 2006. Since the last report was prepared for the October 19, 2006, Commission meeting, 98 of these contacts had been received; 20 contacts involved telecommunications services; 10 contacts involved electricity issues; 23 contacts involved natural gas issues; 1 contact involved natural gas and electrical issues; 38 contacts involved cellular phone issues; 7 contacts involved do not call issues; 1 contact involved wind energy issues; and 11 contacts involved issues not regulated by the Public Utilities Commission. In 2006, 1,729 of the 2,062 complaints registered have been resolved informally. In 2005, 1,674 of the 1,885 complaints registered have been resolved informally.
Electricity
Mr. Jim Wilcox stated that on December 2, 2005, Northern States Power Company, a Minnesota Corporation d/b/a Xcel Energy, submitted an application for a Construction Permit to build the following facilities: 1. Two new 0.4 mile 345 kilovolt (kV) transmission lines connecting the Western Area Power Administration White Substation located southeast of White, South Dakota, and a new Xcel Energy Brookings County Substation; 2. A new 345 kV/115kV Brookings County Substation located approximately 0.4 miles east of the White Substation; 3. A new 9.65 mile 115 kV transmission line from the Brookings County Substation to the Minnesota/South Dakota border; and 4. Improvements to the White Substation to accommodate the new 345 kV lines. The application comprises the western portion of the Buffalo Ridge - White transmission project which connects the White Substation to the Buffalo Ridge Substation southeast of Lake Benton, Minnesota. On October 20, 2006, a stipulation was filed with the Commission. Mr. Bob Knadle stated that the Stipulation included a $50,000.00 bond covering damages to roads which will be submitted following approval, and recommended approving the Stipulation and granting the construction permit subject to the $50,000.00 bond submittal.
Commissioner Hanson moved to approve the Stipulation and grant the construction permit subject to a submittal of the road damage bond in the amount of $50,000.00 in EL05-028. Commissioner Johnson seconded. Motion passed 2-0.
Ms. Darla Rogers, Sioux Valley Electric (SV), stated that SV filed a Petition to Intervene on October 18, 2006. Mr. David Gerdes, Navitas Energy, Inc., had no objection to the intervention. Mr. Bob Knadle recommended granting the intervention.
Commissioner Johnson moved to grant intervention to Sioux Valley Electric in EL06-020. Commissioner Hanson seconded. Motion passed 2-0.
Natural Gas
Mr. Dave Badura, MidAmerican Energy, stated that following the deferral of this docket, the company had submitted a revised filing under which net margin sharing with customers would not wait until full recovery of project costs but would begin immediately. Mr. Badura further stated that under the company's revised estimates, customers can be expected to receive more net margin than before. He further stated that there would be no recovery of any negative margin from retail customers. Mr. Dave Jacobson recommended the tariff revisions be approved.
Commissioner Johnson moved to approve the tariff revisions in NG06-009. Commissioner Hanson seconded. Motion passed 2-0.
Telecommunications
Mr. Harlan Best stated that on May 19, 2006, RC Communications, Inc. d/b/a RC Services (RC Services) filed a petition for designation as an eligible telecommunications carrier in the Milbank Exchange of Qwest Corporation. RC Services is a competitive local exchange carrier currently providing telecommunications service in the community of Corona, a part of the Milbank exchange. RC Services offers services utilizing its own facilities or a combination of its own facilities and resale of another carrier's facilities, pursuant to 47 CFR Section 54.201(d)(1). RC Services will provide the nine required services and lifeline and link-up services, has filed a two year plan and is capable of handling emergency situations and spikes, will have an office in Wilmot, South Dakota, which will offer 24 hour service support, will provide equal access service, and 24 hour customer service. Mr. Best recommended granting RC Services ETC status and providing a letter of certification to the FCC and to the USAC.
Chairman Sahr moved that Eligible Telecommunications Carrier status be granted to RC Communications, Inc. d/b/a RC Services and also 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 in docket TC06-052. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
2. TC06-077 In the Matter of the Filing by James Valley Wireless, L.L.C. for Designation as an Eligible Telecommunications Carrier (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)
Mr. James Cremer, James Valley Wireless, L.L.C. stated that on July 3, 2006, James Valley Wireless, L.L.C. (JVW) filed a Petition for Designation as an Eligible Telecommunications Carrier (ETC) for its proposed wireless personal communications service operations. JVW requests that its proposed wireless operation be designated as eligible to receive all available support from the federal universal service fund including, but not limited to, support for rural, insular and high-cost areas and low-income customers. JVW requests that it be designated as an ETC in the James Valley Cooperative Telephone Company's service area and the Redfield exchange of Qwest Corporation. Mr. Harlan Best stated that JVW will provide the nine services pursuant to 47 CFR Section 54.201(d)(1), has filed a two year plan, is capable of handling emergency situations and spikes, and will provide equal access service. Mr. Best recommended granting JVW ETC status and providing a letter of certification to the FCC and to the USAC. Ms. Rolayne Wiest requested that JVW file its service agreement and lifeline linkup program with the Commission. Mr. Cremer agreed to the file the information requested.
Chairman Sahr moved that Eligible Telecommunications Carrier status be granted to James Valley Wireless, L.L.C. on the condition that it files its service agreement and lifeline linkup program information, and also 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 in docket TC06-077. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Ryan Taylor, representing SSTelecom, Inc., stated that on August 9, 2006, SSTelecom, Inc. filed a Petition for Designation as an Eligible Telecommunications Carrier (ETC) in Qwest Corporation's (Qwest) Milbank exchange. SSTelecom is a competitive local exchange carrier currently in the process of overbuilding the urban areas of Milbank. SSTelecom will offer services utilizing its own facilities or a combination of its own facilities and resale of Qwest's facilities, pursuant to 47 CFR Section 54.201(d)(1). Mr. Harlan Best stated that SSTelecom, Inc. will provide the nine services and lifeline linkup program, has filed a two year plan, is capable of handling emergency situations and spikes, will maintain an office in Milbank, South Dakota, and will provide equal access service. Mr. Best recommended granting SSTelecom ETC status and providing a letter of certification to the FCC and to the USAC.
Chairman Sahr moved that Eligible Telecommunications Carrier status be granted to SSTelecom, Inc. within the Qwest Exchange of Milbank and also 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 in docket TC06-141. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Ms. Kara Van Bockern recommended assessing a deposit not to exceed $75,000 on all of the parties in Docket TC06-159 even if this docket is sent over to the Office of Hearing Examiners.
Chairman Sahr moved to assess a deposit against each of the parties in Docket TC06-159 not to exceed $75,000.00 which will be invoiced by the Deputy Executive Director. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Talbot Wieczorek, Alltel Communications stated, that Alltel filed a Request To Use Office of Hearing Examiners (OHE) pursuant to SDCL 1-26-18.3 on October 27, 2006. Ms. Darla Rogers, Venture Communications Inc. (Venture), stated that Venture is opposed to the Request because Alltel has not proven that there is $2,500.00 in amount being disputed. Ms. Kara Van Bockern stated Alltel has a right to ask for this to be heard by OHE and to resolve the issue of the $2,500.00, Alltel could file an Affidavit stating the amount in dispute is over $2,500.00. Ms. Rolayne Wiest recommended that this docket be deferred until an Affidavit can be filed with the Commission.
Chairman Sahr moved to defer Docket TC06-159. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
5. In the Matter of Approving Agreements in Dockets TC06-161, TC06-162, TC06-163, TC06-164, TC06-165, TC06-166, TC06-167, TC06-168, TC06-170, and TC06-171.
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 TC06-161, TC06-162, TC06-163, TC06-164, TC06-165, TC06-166, TC06-167, TC06-168, TC06-170, and TC06-171. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Ms. Kara Van Bockern recommended assessing a deposit not to exceed $75,000 on all of the parties in Docket TC06-175
Chairman Sahr moved to assess a deposit against each of the parties in Docket TC06-159 not to exceed $75,000.00 which will be invoiced by the Deputy Executive Director. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Talbot Wieczorek, Alltel Communications stated that Alltel would like to consolidate the Dockets TC06-175 and TC06-176. Ms. Rolayne Wiest suggested that the Commission set up a Scheduling Conference Hearing with all parties.
Chairman Sahr moved to defer the issue of consolidation in Docket TC06-175. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Ms. Kara Van Bockern recommended assessing a deposit not to exceed $75,000 on all of the parties in Docket TC06-176.
Chairman Sahr moved to assess a deposit against each of the parties in Docket TC06-176 not to exceed $75,000.00 which will be invoiced by the Deputy Executive Director. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Talbot Wieczorek, Alltel Communications stated that Alltel would like to consolidate the Dockets TC06-175 and TC06-176. Ms. Rolayne Wiest suggested that the Commission set up a Scheduling Conference Hearing with all parties.
Chairman Sahr moved to defer Docket TC06-176 regarding consolidation. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
