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South Dakota Public Utilities Commission Meeting
Tuesday, October 23, 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: Vice Chairman Gary Hanson; 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, Keith Senger, Bob Knadle, and Nathan Solem; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Demaris Axthelm.
Also present were: Bill Van Camp, Olinger, Lovald, McCahren & Reimers PC, representing EchoStar Satellite LLC; Jeff Decker, NorthWestern Energy: and Bob Miller, South Dakota Electric Utility Companies.
Joining the meeting by telephone were: Commissioner Steve Kolbeck; Tom Burns, Burns Law Office, representing Codington-Clark Electric Cooperative, Inc.; Jim Keck, Black Hills Power, Inc.; Tami Aberle, Montana-Dakota Utilities Company; Bill Heaston, PrairieWave Community Telephone, Inc.; Karen Huizenga, MidAmerican Energy; and Clyde Gross, NorthWestern Energy
Administration
1. Approval of the Minutes of the Commission Meeting Held on August 7, 2007, and the Ad Hoc Meeting held on September 19, 2007. (Staff: Demaris Axthelm)
Chairman Johnson moved to approve the Commission Minutes of August 7, 2007 and the Ad Hoc Meeting of September 19, 2007. Motion passed 3-0.
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 70 contacts since the last report was prepared for the October 9, 2007 Commission meeting. 13 contacts involved telecommunications services; 20 contacts involved electricity issues; 8 contacts involved natural gas issues; 6 contacts involved cellular phone issues; 10 contacts involved the Do Not Call Registry; and 13 contacts involved issues not regulated by the Public Utilities Commission. In 2007, 1,650 of the 1,890 complaints registered have been resolved informally. In 2006, 2,286 of the 2,466 complaints registered have been resolved informally.
Electric
Mr. Jim Keck, Black Hills Power, Inc (BHP) asked the Commission to approve the contract with deviations with the South Dakota Science and Technology Authority for power supply to the Homestake Laboratory (Lab). Mr. Keck further stated that the contract limits a portion of the demand charges that BHP will bill the authority for the first five years of the Lab's operations. Mr. Keck explained that the five year period is broken down into a rehabilitation period and initial ongoing operations period. Mr. Keith Senger stated BHP anticipates peak demand of 4,200 kVA during the 18 month rehabilitation period, of which BHP will bill only a 1,500 kVA fixed contract demand during the winter months and 3,200 kVA fixed contract demand during the 3 summer months. A 2,500 kVA cap will be in place during these summer months. Mr. Senger also stated that BHP anticipates peak demand of 3,240 kVA during the remaining 3 ½ years of the contract in which BHP will bill only a 2,500 kVA fixed contract demand with a 3,500 kVA summer month cap. Additionally, BHP can limit power consumption to 1,500 and 2,500 KVA during the respective periods should system conditions exist that limit power delivery. After the five year period, the Lab will go back to the general service large tariff. Mr. Senger stated that Staff recommended that the Commission approve the contract with deviations with the condition that the approval does not predetermine a Commission decision at the time of future rate case proceedings regarding rate treatment, concerning possible cost recovery shortfalls resulting from rates approved in Docket EL07-022.
Chairman Johnson moved to approve the contract with deviations with the condition that the approval does not predetermine a Commission decision at the time of future rate case proceedings regarding rate treatment concerning possible cost recovery shortfalls resulting from rates approved in Docket EL07-022. Motion passed 3-0.
Mr. Tom Burns, representing Codington-Clark Electric Cooperative, Inc. (Codington-Clark Electric) stated the Agreement to modify Assigned service area as amended between Codington-Clark Electric and the City of Watertown has worked well for both entities and asked to make the agreement perpetual. Mr. Nathan Solem stated that Staff recommends approval of the new addendum, as the provisions in the original agreement covering electric service after city annexation still remain in the public interest and eliminate or reduce duplication of facilities per the requirements of SDCL 49-34A-55 governing such changes.
Vice Chairman Hanson moved to approve the addendum to the agreement regarding assigned service area. Motion passed 3-0.
Natural Gas
Mr. Jeff Decker, NorthWestern Energy (NWE), explained to the Commission the three different tariff changes. The first tariff change limits the size of Grain Dryers on Rate 85 to 20 MMbtuH of connected load. The second change will modify the rate 86 true up mechanism for Rate 86 from a 12 month average true up to a July 1 true up and the third change implements daily imbalance penalties for transport customers for over and under usage. Mr. Keith Senger stated that Staff recommends approval for all three tariff changes and explained to the Commission that the current tariff sheets included Staff's recommended clarifying changes affected by the Grain Dryer and true up revisions to the original proposed tariff language in the tier one imbalances. Mr. Senger also noted that all customers had been notified of the proposed changes to the original proposed tariff language in the tier one imbalances.
Chairman Johnson moved to approve the tariff revisions with the recently revised wording in Docket NG07-018. Motion approved 3-0.
Ms. Tami Aberle, Montana Dakota Utilities Company (MDU) stated that Merillat is a large volume, high load factor customer, and it is in the best interest of the other customers for MDU to continue the agreement, which will satisfy Merillat's request for firm sales gas service at a competitive price that allows MDU to continue to provide natural gas service to this facility. Ms. Aberle further stated that the existing firm customers will continue to benefit through Merillat's contribution toward transmission pipeline demand costs and distribution cost recovery, which would not exist if Merillat were to utilize an alternate fuel. Ms. Aberle asked the Commission to approve the amendment to the contract with deviations with an effective date of November 1, 2007. Mr. Dave Jacobson recommended approving the amendment to the contract with deviations with an effective date of November 1, 2007.
Vice Chairman Hanson moved to approve the amendment to the contract with deviations with effective date of November 1, 2007. Motion passed 3-0.
Ms. Kara Semmler stated that Staff was able to resolve the consumer issue and asked the Commission to grant the motion to dismiss. Ms. Karen Huizenga, MidAmerican Energy (MidAmerican) stated that MidAmerican appreciated staff working with them to resolve the issue.
Chairman Johnson moved to grant the motion to dismiss and close Docket NG07-020. Motion passed 3-0.
Telecommunications
Ms. Kara Semmler stated that the current multi-state investigation with a national presence is the best venue for continued review of whether or not EchoStar can ultimately be liable for the calls made to consumers on the Do Not Call Registry. Ms. Semmler asked the Commission to dismiss and close Docket TC06-191 without prejudice and to allow the South Dakota complainants to proceed to resolution as part 1 of a larger multi-state investigation. Ms. Semmler also asked the Commission to give Staff the option to re-file its complaint with the Commission if the new forum does not adequately address the complaints. Mr. Bill Van Camp, representing EchoStar Satellite, LLC (EchoStar) stated that EchoStar supports Staff's motion and asked the Commission to grant the motion to dismiss and close the docket without prejudice.
Commissioner Kolbeck moved to grant the motion to dismiss and close Docket TC06-191 without prejudice. Motion passed 3-0.
Mr. Bill Van Camp, representing AT&T Communications (AT&T) stated that AT&T filed for intervention and asked that if the Commission did grant PrairieWave an exemption from filing company specific cost-based switched access rates, the exemption would be limited to one year. Mr. Bill Heaston, representing PrairieWave Community Telephone, Inc. (PrairieWave) stated that PrairieWave had no objection to the intervention, but did object to the one year exemption limitation. Ms. Karen Cremer stated that Staff recommended granting the petition for intervention to AT&T.
Chairman Johnson moved to grant the petition for intervention to AT&T Communications in Docket TC07-104. Motion passed 3-0.
ADDENDUM TO THE
AGENDA OF COMMISSION MEETING
Electric
Docket EL07-025 of the addendum to the Agenda was taken up in the regular Agenda.
Natural Gas
Docket NG07-020 of the addendum to the Agenda was taken up in the regular Agenda.
There being no further business, at the hour of 10:42 am the South Dakota Public Utilities Commission Meeting adjourned.
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Demaris Axthelm
Administrative Secretary
