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South Dakota Public Utilities Commission Meeting
March 25, 2008, at 9:30 A.M.
State Capitol Building, Room 468
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Chairman Gary Hanson called the meeting to order. Present were: Vice Chairman Steve Kolbeck; Executive Director Patty Van Gerpen; Commission Advisor Greg Rislov; Commission Attorneys John Smith and Rolayne Wiest; Staff Attorney Karen Cremer; Staff Analysts Harlan Best, Bob Knadle, Dave Jacobson and Brian Rounds; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Demaris Axthelm.
Joining the meeting by telephone were: Commissioner Dustin Johnson; Talbot Wieczorek, Gunderson, Palmer, Goodsell & Nelson, representing Sprint Communications Company L.P. and Alltel Communications, Inc.; Sandy Johnson, Landowner; Colleen Sevold, Jason Topp and Chris Viveros, Qwest Corporation; Mary Sisak, Blooston, Mordkofsky, Dickens, Duffy and Pendergast, representing Brookings Municipal Utilities d/b/a Swiftel Communications; Sean Simpson, Alltel Communication, Inc; Jerry Reisenauer, West River Cooperative Telephone; Doug Eidahl and Larry Thompson, Vantage Point Solutions; Bill Heaston, Knology Community Telephone, Inc; Kristie Lyngstad, Knology of the Plains, Inc; Mark Anderson and Jim Wilcox, Xcel Energy; Jeff Decker, NorthWestern Energy; Kristy McDermott, Long Lines Wireless, LLC; Kathy McGinn, Rural Cellular Corp; and Dennis Duncan, Zimmer, Duncan and Cole, representing Verizon Wireless LLC.
Also present were: Meredith Moore, Cutler and Donahoe, representing Alliance Communications Cooperative, Inc., McCook Cooperative Telephone Company, Beresford Municipal Telephone Company, Kennebec Telephone Company, Santel Communications Cooperative, Inc. and West River Cooperative Telephone Company; Bill Van Camp, Olinger, Lovald, McCahren & Reimers PC, representing AT&T Communications of the Midwest; Dave Gerdes, May, Adam, Gerdes and Thompson, representing Midcontinent Communications and Xcel Energy; Darla Rogers, Riter, Rogers, Wattier, & Northrup, LLP, representing Alliance Communications Cooperative, Inc., Splitrock Properties, Inc. and Hills Telephone Company; Rod Bowar, Kennebec Telephone Company; Bob Miller, South Dakota Electric Utility Companies; Bryan Roth, McCook Cooperative Telephone Company; Mark Benton, Midstate Communications, Inc.; Brett Koenecke, May, Adam, Gerdes and Thompson, representing MCC Telephony of the Midwest, Inc. d/b/a Mediacom; and Rich Coit, South Dakota Telecommunications Association.
Consumer Reports
- 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 63 contacts since the last report was prepared for the March 11, 2008, Commission meeting. 9 of the contacts involved telecommunications services; 11 contacts involved electricity issues; 8 contacts involved natural gas issues; 6 contacts involved cellular phone issues; 16 contacts involved the Do Not Call Registry; 2 contacts involved the grain warehouse division; and 11 contacts involved issues not regulated by the Public Utilities Commission. In 2008, 494 of the 561 complaints registered have been resolved informally. In 2007, 2,287 of the 2,337 complaints registered have been resolved informally.
Electricity
Mr. Dave Gerdes stated that Xcel has endeavored to set the record straight and to clarify any misconceptions that may have existed. Mr. Gerdes further stated that Mr. Jim Wilcox filed a letter dated March 21, 2008, answering Commissioners questions from the March 11, 2008, Commission Meeting. Mr. Gerdes asked the Commission to permit Xcel to energize the line. Ms. Sandy Johnson stated that she has not seen the map from RF Sayre, an Engineering and Land Survey Company from Sioux Falls. Mr. Jim Wilcox stated that he would send the map from RF Sayre to Ms. Johnson. Mr. Bob Knadle stated that it appears the company did make a mailing on December 3, 2007, and he had spoken with some of the landowners and they stated that they did receive the mailing.
Chairman Hanson moved that Xcel be permitted to energize the 345 kilovolt Split Rock – Lakefield Junction transmission line in Docket EL05-023. Motion passed 3-0.
Mr. Jeff Decker stated that Burlington Northern Railroad is installing switch heaters and in order for NorthWestern to serve the track heaters NorthWestern will need to spend approximately $9,000.00. Mr. Decker further stated that the track heaters use very little energy and are only used when the track is wet or the temperature is very cold. NorthWestern is anticipating very little usage and therefore would like to charge Burlington Northern Railroad for the cost of the insulation. Mr. Dave Jacobson stated that since this project is of significant cost, is dedicated to only one customer and will serve a minimum load, staff agrees with the application of NorthWestern and recommends approval.
Chairman Johnson moved to approve the contract with deviations for services rendered on and after April 1, 2008. Motion passed 3-0.
Telecommunications
1. TC06-184 - In the Matter of the Filing by Long Lines Wireless, LLC for Designation as an Eligible Telecommunications Carrier. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)
Kristy McDermott stated that Long Lines Wireless has met all the conditions set forth by the SD PUC and the FCC for an eligible telecommunications carrier. Ms. McDermott asked that the Commission designate Long Lines Wireless, as an ETC. Mr. Harlan Best stated that staff would recommend granting the designation of Long Lines Wireless as an ETC. Ms. Rolayne Wiest stated that Long Lines' cream-skimming analysis is required to include both served and un-served exchanges and compare the population density for areas to be served with areas the company does intend to serve. Ms. Wiest also asked for more information regarding partial designations and to explain whether Long Lines intent is to serve the entire wire service through resale or other means. Ms. Wiest further stated that she would submit a letter containing all of her questions and asked that Ms. McDermott follow up stating the details. Commissioner Johnson asked Ms. McDermott for a clarification on the letter that was sent to the Commission. Commissioner Johnson stated that in Ms. McDermott's previous filing the range was listed as a 20 mile radius, and that was corrected to state 20 mile circumference. Commissioner Johnson asked Ms. McDermott if she meant to state 20 mile diameter instead, and Ms. McDermott agreed with Commissioner Johnson that it should be a 20 mile diameter. Chairman Hanson stated that TC06-184 would be deferred until further noticed.
2. TC07-082 - In the Matter of the Filing by Qwest Corporation, DIECA Communications, Inc. d/b/a Covad Communications Company and McLeodUSA Telecommunications Services, Inc. of their Notice of Stipulation Regarding Certain Performance Indicator Definitions and Qwest Performance Assurance Plan Provisions and Joint Motion to Approve same on behalf of the Stipulating Parties. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)
Mr. Jason Topp stated that Qwest and several CLECs resolved a number of issues and made a number of adjustments to the Performance Assurance Plan (PAP) and Performance Indicator Definitions (PIDs). Mr. Topp stated that he does not know of any opposition to the agreement. Mr. Harlan Best stated that it is Staff's opinion that the changes have gone into effect by the Commission not acting within the 60 days period. Ms. Rolayne Wiest stated that changes to the PAP do not go into effect automatically and the Commission should approve the stipulation.
Chairman Hanson moved to approve the stipulation in Docket TC07-082. Motion passed 3-0.
3. TC07-104 - In the Matter of the Filing by PrairieWave Community Telephone, Inc. for an Exemption from Developing Company Specific Cost-Based Switched Access Rates. (Staff Analyst: Keith Senger, Staff Attorney: Karen Cremer)
Chairman Hanson stated that Dockets TC07-104 and TC07-118 would be considered together. Mr. Bill Van Camp stated that AT&T is requesting to withdraw its intervention based on the amended petitions of PrairieWave which clarifies that the exemptions will only be effective for the three year period specified in the Commission's rules and on the understanding that the withdrawal not be construed as an indication that AT&T is no longer interested in pursuing substantive changes to the switched access rules in Docket RM05-002. Mr. Bill Heaston stated that PrairieWave had no objection to AT&T's withdrawal. Mr. Heaston further stated that PrairieWave would file again within the three year period provided for in the Commission's rules and that this would occur in 2010 after the company had closed out its 2009 books when it would have the necessary financial information. Mr. Best recommended that the Commission approve AT&T's withdrawal from the case. Mr. Best further recommended that the Commission grant PrairieWave's request for an exemption in Docket TC07-118 with the currently effective tariff to remain in effect until further action of the Commission in response to PrairieWave's 2010 filing. Mr. Best stated that the preliminary financial information provided by PrairieWave appeared to justify higher rates than the currently effective tariffed rates. With respect to Docket TC07-104, Mr. Best stated that a response to Staff's request for financial information to support the waiver and continuance of existing tariffed rates had not been received, and Mr. Best recommended deferral.
Vice Chairman Kolbeck moved to allow AT&T to withdraw in Dockets TC07-104 and TC07-118. Motion passed 3-0.
Chairman Hanson deferred action on the request for the exemption from developing company specific cost-based switched access rates in Docket TC07-104.
Vice Chairman Kolbeck moved to grant the exemption from developing company specific cost-based switched access rates for the three year period ending on December 29, 2010, and that PrairieWave's existing tariff, effective December 29, 2004, shall remain in effect until such date or the Commission shall otherwise order in Docket TC07-118. Motion passed 3-0.
4. In the Matter of the Petition for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement in Dockets TC07-111, TC07-112, TC07-113, TC07-114, TC07-115, and TC07-116
Mr. Sean Simpson stated that Alltel is seeking two sets of information: Provide complete cost study models, cost schedules, work papers or other documentation underlying switching "price inputs" contained and to provide the sources of unit investment. Mr. Simpson further stated that they have not received all the information and have been told that the documentation would be coming, but did not receive the information in time before the Motion to Compel was filed and will not receive it before the direct testimony is due. Mr. Simpson stated that depending on the information that Alltel will receive from the Petitioners, Alltel would like the ability to provide supplemental direct testimony and from there modify the scheduling order and have the rebuttal testimony two weeks after the additional supplemental direct testimony comes in. Ms. Meredith Moore addressed the arguments on behalf of each of the Petitioners. Ms. Moore stated that the Petitioners did provide adequate information regarding the complete cost study models, cost schedules, work papers or other documentation underlying switching "price inputs" contained and did provide the sources of unit investment. Ms. Moore further stated that they have agreed to provide additional information. Ms. Moore stated that they object to Alltel having the opportunity to have continuing objections on the fact they have provided reasonable information. Ms. Moore asked the Commission to deny Alltel's request. Ms. Karen Cremer stated this is a matter of discovery between the parties and Staff normally does not weigh in on such matters. Therefore Staff has no opinion. Ms. Rolayne Wiest recommended granting the motion to compel and Ms. Wiest stated that she felt that Alltel did not miss any deadlines to discovery requests and Alltel does have the ability to challenge the reasonableness of the Flex Method.
Commissioner Johnson moved to approve the Motion to Compel Responses to Discovery Requests in Dockets TC07-111, TC07-112, TC07-113, TC07-114, TC07-115, and TC07-116. Motion passed 2-1 with Chairman Hanson, dissenting.
Docket TC07-118 was taken up with Agenda item 3 with Docket TC07-104.
6. In the Matter of the Petitions for Suspension or Modification of 47 U.S.C. Section 251(b)(2) of the Communications Act of 1934 as Amended in Dockets TC08-006, TC08-007, TC08-008, TC08-009, TC08-010, TC08-011, TC08-012, TC08-013, TC08-014, TC08-015, TC08-016, TC08-017, TC08-018, TC08-019, TC08-020, TC08-021, TC08-022, TC08-023, TC08-024, TC08-025, TC08-026, and TC08-027.
TC08-008 - In the Matter of the Petition of Faith Municipal Telephone Company for Suspension or Modification of 47 U.S.C. Section 251(b)(2) of the Communications Act of 1934 as Amended. (Staff Analyst: Harlan Best, Staff Attorney: Rolayne Ailts Wiest)
TC08-009 - In the Matter of the Petition of Western Telephone Company for Suspension or Modification of 47 U.S.C. Section 251(b)(2) of the Communications Act of 1934 as Amended. (Staff Analyst: Harlan Best, Staff Attorney: Rolayne Ailts Wiest)
Mr. Dave Gerdes used handouts showing various VOIP network configurations used by Midcontinent Communications. See handouts on line: Figure 1 VOIP to VOIP; Figure 2 VOIP to POTS .; Figure 3 Long Distance Calling . Mr. Talbot Wieczorek stated that Alltel and Sprint clearly have an interest to intervene and asked the Commission to grant intervention to the parties. Mr. Dennis Duncan stated Verizon Wireless' intervention has not been opposed and requested that the Commission approve intervention. Mr. Brett Koenecke stated that Mediacom has applications on file to enter some of the markets and believes it could prejudice Mediacom's entry into the markets and asked that the Commission grant intervention. Mr. Rich Coit stated that the reason South Dakota Telecommunications Association (SDTA) had intervened in prior LNP cases is to deal with the transport issue that the FCC has yet to address. Therefore Mr. Coit stated that SDTA has a right to appear as an industry association and asked the Commission to grant intervention to SDTA. Ms. Mary Sisak stated that Swiftel Communications is not objecting to the intervention of the wireless carriers or SDTA. Swiftel has objected to Midcontinent, Mediacom and Sprint on the grounds that the Petitions only request suspension of intermodal porting obligations and that these companies are wireline telecommunications carriers. Ms. Sisak suggested that the parties could stipulate to the limitation of the relief sought in the Petitions. Mr. Wieczorek stated that he would recommend allowing the interventions at this point. Ms. Darla Rogers stated that she concurs with Ms. Sisak's comments. Ms. Rolayne Wiest recommended that the Commission grant intervention to the parties with the understanding that the parties could work towards a stipulation and could then withdraw.
Chairman Hanson moved to grant intervention to Midcontinent, Alltel, Verizon Wireless, SDTA, Mediacom, and Sprint. Motion passed 3-0.
Mr. Jason Topp stated that pursuant to the national numbering guidelines and the FCC's Third Report and Order in order to provide a thousand block of numbers, Qwest needs approval from the Commission to obtain the block. Mr. Topp further stated that Qwest has a customer that has requested 400 consecutive numbers in the Huron rate center. Mr. Brian Rounds stated that the FCC has given state commissions the authority to grant these waivers to meet a specific customer's needs. Mr. Rounds further stated that Staff recommends approval of the waiver with the condition that Qwest return the thousand block if the customer withdraws its request.
Vice Chairman Kolbeck moved to Grant the Waiver in Docket TC08-032 subject to the condition recommended by Staff. Motion passed 3-0.
There being no further business, at the hour of 12:15 pm the South Dakota Public Utilities Commission Meeting adjourned.
/s/Demaris Axthelm________
Demaris Axthelm
Administrative Secretary
