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South Dakota Public Utilities Commission Meeting
Tuesday, September 25, 2007, at 9:30 A.M.
State Capitol Building, Room 412
Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING

Chairman Dustin Johnson called the meeting to order. Present were: Commissioner Steve Kolbeck; Executive Director Patty Van Gerpen; Deputy Executive Director Heather Forney; Commission Advisor Greg Rislov; Commission Attorneys John Smith and Rolayne Wiest; Staff Attorneys Karen Cremer and Kara Semmler; Staff Analysts Harlan Best, Dave Jacobson and James Mehlhaff; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Demaris Axthelm.

Also present were: Dave Gerdes, May, Adam, Gerdes and Thompson, representing Level 3 Communications; Margo Northrup, Riter, Rogers, Wattier & Brown, representing South Dakota Network, LLC: and Bob Miller, South Dakota Electric Utility Companies.

Joining the meeting by telephone were: Vice Chairman Gary Hanson; Kari Bartling, Kolker Law Office, representing LW Sales/LW Seed's; Jeff Decker, NorthWestern Energy; Colleen Sevold and Larry Toll, Qwest Corporation; Margaret (Peg) Prendergast, Sprint Communications Company L.P.; and Marlene Bennett and Christian Medima, Martin Group.

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 72 contacts since the last report was prepared for the September 11, 2007 Commission meeting. 15 contacts involved telecommunications services; 23 contacts involved electricity issues; 8 contacts involved natural gas issues; 5 contacts involved cellular phone issues; 15 contacts involved the Do Not Call Registry; and 6 contacts involved issues not regulated by the Public Utilities Commission. In 2007, 1,528 of the 1,750 complaints registered have been resolved informally. In 2006, 2,270 of the 2,466 complaints registered have been resolved informally.

Grain Dealer

1. GD07-001 In the Matter of LW Sales/LW Seed's Failure to Obtain Necessary Licensure Prior to Operation as a Grain Dealer in the State of South Dakota. (Staff Analyst: Jim Mehlhaff, Staff Attorney: Kara Semmler)

Ms. Kari Bartling stated that she felt the Commission should grant the motion for reconsideration and that the summary judgment should be reset for a hearing. Ms. Kara Semmler stated that she had no objections. Chairman Johnson stated that since Ms. Bartling is unable to provide argument today the motion for summary judgment will be heard at a later date.

Chairman Johnson moved to grant LW Sales motion for reconsideration in Docket GD07-001. Motion passed 3-0.

Natural Gas

1. NG07-013 In the Matter of the Application by NorthWestern Corporation d/b/a NorthWestern Energy for Authority to Increase its Natural Gas Rates. (Staff Analysts: Dave Jacobson/Keith Senger/Bob Knadle/Martin Bettmann/Nathan Solem/Steve Wegman, Staff Attorney: Karen Cremer)

Chairman Johnson announced that he would take up Agenda Item number 1 Natural Gas Docket NG07-013 with the Addendum to the Agenda.

Telecommunications

1. TC06-007 In the Matter of the Petition of Level 3 Communications, LLC for Arbitration of an Interconnection Agreement with Qwest Corporation. (Commission Attorney: Rolayne Ailts Wiest)

Mr. Dave Gerdes, representing Level 3 Communications, LLC (Level 3) stated that he was unable to speak with Level 3. Therefore Mr. Gerdes was unable to object to hearing oral arguments. Mr. Larry Toll, Qwest stated that Qwest attorney Mr. Jason Topp was unable to attend today's meeting and that Mr. Topp had sent a letter to Level 3 explaining Qwest's circumstances. Ms. Rolayne Wiest recommended that the Commission postpone oral arguments.

Chairman Johnson moved to defer hearing oral arguments in Docket TC06-007. Motion passed 3-0.

2. TC07-091 In the Matter of the Filing by Sprint Communications Company L.P. for Approval of its Intrastate Switched Access Tariff and Rates. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

Ms. Margaret (Peg) Prendergast stated that Sprint Communications Company (Sprint) had responded to Staff questions and was available for Commissioner questions. Mr. Harlan Best stated that Sprint filed an intrastate switched access tariff and a composite rate, requesting an exemption from establishing switched access rates based on company specific costs. Sprint also requested a waiver of the use of the formula in ARSD 20:10:27:12 and ARSD 20: 10:27:13, so as to mirror the Qwest Corporation tariffed access rates and a waiver of ARSD 20:10:27:07 with a proposed effective date of September 6, 2007. Mr. Best recommended the Commission approve Sprint's switched access tariff and the use of a composite rate with an effective date September 6, 2007, grant the exemption from establishing switched access rates based on company specific costs, and approve the waiver of ARSD 20:10:27:07, 12, and 13.

Chairman Johnson moved to approve Sprint's switched access tariff and the use of a composite rate with an effective date September 6, 2007, grant the exemption from establishing switched access rates based on company specific costs, and approve the waiver of ARSD 20:10:27:07, 12, and 13. Motion passed 3-0.

3. TC07-094 In the Matter of the Filing for Approval of a Resale Agreement between Qwest Corporation and NOS Communications, Inc. (Staff Attorney: Kara Semmler)

Ms. Kara Semmler stated that the Resale Agreement has been properly filed, has been properly executed and does not appear to contain discriminatory provisions. No comments were filed and Ms. Semmler recommended approval of the Resale Agreement.

Commissioner Kolbeck moved to approve the Resale Agreement in Docket TC07-094. Motion passed 3-0.

4. TC07-102 In the Matter of the Filing by South Dakota Network, LLC for Approval of Revisions to its Intrastate Switched Access Tariff. (Staff Analyst: Keith Senger, Staff Attorney: Karen Cremer)

Ms. Karen Cremer stated that TC07-102 should not have been opened; the corrections that had been filed should have been filed in the previously opened Docket TC07-027. Ms. Cremer recommended that the Commission dismiss and close Docket TC07-102 and take up the merits in Docket TC07-027. Ms. Marlene Bennett stated that she concurs with staff.

Vice Chairman Hanson moved to dismiss and close Docket TC07-102. Motion passed 3-0

ADDENDUM TO THE
AGENDA OF COMMISSION MEETING

Natural Gas

2. NG07-013 In the Matter of the Application by NorthWestern Corporation d/b/a NorthWestern Energy for Authority to Increase its Natural Gas Rates. (Staff Analysts: Dave Jacobson/Keith Senger/Bob Knadle/Martin Bettmann/Nathan Solem/Steve Wegman, Staff Attorney: Karen Cremer)

Ms. Karen Cremer stated that NorthWestern Corporation d/b/a NorthWestern Energy (NorthWestern) has no objection to suspending the imposition of the tariff for an additional 60 days.

Vice Chairman Hanson moved to suspend the imposition of the tariff for an additional 60 days beyond September 29, 2007, in Docket NG07-013. Motion passed 3-0.

2. NG07-017 In the Matter of the Filing by NorthWestern Energy for Approval of Tariff Revisions. (Staff Analyst: Dave Jacobson, Staff Attorney: Karen Cremer)

Mr. Jeff Decker stated that NorthWestern Energy (NWE) does this filing yearly to update its fuel retention percentage for natural gas transportation service. Mr. Decker asked the Commission to approve the tariff revisions with the updated percentage to be effective October 1, 2007. Mr. Dave Jacobson agreed with Mr. Decker and recommended that the Commission approve the tariff revisions, effective for service rendered on and after October 1, 2007.

Commissioner Kolbeck moved to approve the tariff revisions effective for services rendered on and after October 1, 2007 in Docket NG07-017. Motion passed 3-0.

Telecommunications

1. TC07-027 In the Matter of Filing by South Dakota Network, LLC for Approval of Revisions to its Access Service Tariff. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

Ms. Marlene Bennett stated that South Dakota Network, LLC (SDN) submitted Access Tariff No. 2 which cancels Access Tariff No. 1. Ms. Bennett further explained that SDN's replacement tariff contains numerous format and textual changes and changes to the nonrecurring charges to more closely reflect current operating costs in Section 8. Mr. Harlan Best agreed with Ms. Bennett and recommended that the Commission grant the replacement of tariff No. 1 with tariff No. 2.

Chairman Johnson moved to approve the format and textual changes to the access service tariff in Docket TC07-027. Motion passed 3-0.

2. TC07-092 In the Matter of the Filing by McLeodUSA Telecommunications Services, Inc. for Approval of a Revision to its Intrastate Switched Access Tariff. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

Mr. Harlan Best stated that McLeodUSA Telecommunications Services, Inc. (McLeodUSA) filed a corrected sheet to its South Dakota Access Tariff No. 3 to correct a typographical error.

Chairman Johnson moved to approve the corrected tariff sheet in Docket TC07-092. Motion passed 3-0.

There being no further business, at the hour of 10:00 am the South Dakota Public Utilities Commission Meeting adjourned.

 

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Demaris Axthelm
Administrative Secretary