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South Dakota Public Utilities Commission Meeting
April 22, 2008, at 9:30 A.M.
State Capitol Building, Room 464
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Chairman Gary Hanson called the meeting to order. Present were: Vice Chairman Steve Kolbeck; Commissioner Dusty Johnson; 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; Grain Warehouse Director James Mehlhaff; Staff Analysts Dave Jacobson, Bob Knadle, and Brian Rounds; and Administrative Secretary Demaris Axthelm.
Also present were: Dave Gerdes, May, Adam, Gerdes and Thompson, representing Midcontinent Communications; Brett Koenecke, May, Adam, Gerdes and Thompson, representing MediaCom and TransCanada Keystone Pipeline; and Darla Pollman Rogers, Riter, Rogers, Wattier, & Northrup, LLP, representing LNP Petitioners.
Joining the meeting by telephone were: Talbot Wieczorek, Gunderson, Palmer, Goodsell & Nelson, representing Alltel Communications; Mary Sisak, Blooston, Mordkofsky, Dickens, Duffy and Pendergast, representing Brookings Municipal Utilities d/b/a Swiftel Communications; Jim Adkins, Swiftel Communications; Sean Simpson, Alltel Communication, Inc; Jeff Decker, NorthWestern Energy; Dennis Duncan, Zimmer, Duncan and Cole, representing Verizon Wireless LLC; Jim Wilcox, Xcel Energy; Kathryn Kunert, Brad Howard, Tammy Chrisman, Melaine Acord, and Suzan Stewart, MidAmerican Energy; Tami Aberle, Montana Dakota Utilities Co. and Dave Ross, Ottertail Power Company.
Consumer Reports
1. Status Report on Consumer Utility Inquiries and Complaints Received by the Commission. (Consumer Affairs: Deb Gregg)
Ms. Kara Semmler reported that the Commission had received a total of 79 contacts since the last report was prepared for the April 8, 2008, Commission meeting. 9 contacts involved telecommunications services; 16 contacts involved electricity issues; 14 contacts involved natural gas issues; 1 contact involved electrical and natural gas services; 8 contacts involved cellular phone issues; 15 contacts involved the Do Not Call Registry; and 16 contacts involved issues not regulated by the Public Utilities Commission. In 2008, 676 of the 714 complaints registered have been resolved informally. In 2007, 2,300 of the 2,337 complaints registered have been resolved informally.
Electricity
Ms. Kara Semmler stated that the Interconnection Workshops are still in process and have gone well. Ms. Semmler specifically wanted to address the issues of Standard12 Fuel Diversity and Standard 13 Fossil Fuel Generation Efficiency. Ms. Semmler stated that the PURPA Act specifies that after the notice and hearing, the Commission may make a determination. Therefore Staff recommends a paper hearing regarding Standards 12 and 13. Ms. Susan Stewart stated that MidAmerican Energy supports Staff recommendations. Ms. Tami Aberle stated that Montana-Dakota Utilities supports Staff recommendations. Ms. Rolayne Wiest suggested that the Commission take into consideration the comments made at the workshop, any previously filed comments, and any additional comments any party may wish to file. Such a process would meet hearing requirements.
Chairman Hanson moved that the parties may file comments regarding the fuel diversity and fossil fuel generation efficiency standards on or before June 13, 2008. Motion passed 3-0.
Mr. Jeff Decker stated that the Energy Act of 2005 prohibits the manufacture or importation of mercury vapor ballasts after January 1, 2008. NorthWestern will not be able to secure the ballasts, and NorthWestern is requesting that the tariff state they will no longer install mercury vapor fixtures. Mr. Decker further stated that suppliers indicated that bulbs would be available through 2009 and NorthWestern would leave the decision to its existing Customers as to what bulb they would prefer. Mr. Dave Jacobson advised the Commission that they would be hearing from other companies on this matter.
Vice Chairman Kolbeck moved to approve the tariff revisions with an effective date of May 1, 2008, in Docket EL08-007. Motion passed 3-0.
Mr. Jim Wilcox stated that Xcel has invested $100,000 in their economic development program in each of the past 18 years and that the report includes the budget that was planned for the year 2007, the actual economic development investments that Xcel Energy made in 2007and the planned budget for 2008. Mr. Wilcox asked the Commission to approve Xcel's 2007 Economic Development Annual Report and Economic Development Plan for 2008. Mr. Brian Rounds stated that the report showed Xcel made contributions to the Southeastern Development Foundation, the SD Chamber of Commerce and Industry ABEX Awards, and the Sioux Falls Development Corporation. Xcel did not contribute membership dues to the SD Chamber of Commerce in 2007, as requested last year by the Commission. Mr. Rounds further stated that Staff has verified all receipts included in the filing and recommends approval of the 2007 Economic Development Report and the 2008 Economic Development Plan.
Commissioner Johnson moved to approve Xcel's 2007 Economic Development Annual Report and Economic Development Plan for 2008. Motion passed 3-0.
Ms. Kara Semmler stated that Staff is requesting the minimum filling fee of $8,000. Ms. Semmler further stated that to satisfy the notice requirement of SDCL 49-41 B15 (3) and given applicable time constraints, Staff recommends that the process for notifying affected landowners involved in this be as follow; that East River will obtain the lists of landowners of properties within one-half mile of the facility from the county equalization office for Brown and Day Counties. East River will then submit the list to the Commission, and the Commission will send the Notice of Hearing to all such landowners. The Notice will state that notice is being given to the landowner to whom notices of property tax assessments are sent and that it is the responsibility of the landowner receiving the notice to notify any co-owners of the property.
Chairman Hanson moved that East River shall be assessed a filing fee not to exceed $8,000 and that the landowner notice process recommended by Staff be approved. Motion passed 3-0.
Natural Gas
Ms. Suzan Stewart, representing MidAmerican, described MidAmerican's economic development report and stated that its proposed 2008 economic development budget is similar to last years budget. She explained that MidAmerican plan differs from Xcel's in that approximately half of the budget is expended on a economic development professional hired by the company to assist local communities and half on direct grants to communities. Ms. Stewart further stated that MidAmerican has a mechanism in its rates where half of the approximately $100,000 spent each year goes below the line and the other half is reflected in revenue requirements. Chairman Hanson asked if the dollar amount devoted to grants is enough to cover the communities that MidAmerican serves. Ms. Kathryn Kunert stated that the amount that is budgeted and appropriated for the service areas is very adequate and meets all the needs and requests. Staff recommended approval of the filing.
Vice Chairman Kolbeck moved to approve MidAmerican Energy Company's 2007 Economic Development Report and the 2008 Economic Development Plan. Motion passed 3-0.
Ms. Tami Aberle, representing Montana-Dakota Utilities (MDU) stated that this is MDU's second adjustment to be implemented under the company's experimental Conservation Program Tracking Mechanism Rate 90. The proposed adjustment would recover expenditures of the conservation program and lost distribution revenues from March 1, 2007, through February 29, 2008. Ms. Aberle asked that the Commission approve the updated Conservation Program Tracking Mechanism revised tariff sheets. Mr. Dave Jacobson stated that the adjustment was computed according to the previously approved rate calculations. Mr. Jacobson further stated that this program will expire April 30, 2009, unless the Company files and receives approval to continue the program. Staff is looking at the information coming in from the survey and the numbers that the company is submitting and has been in discussions with the company regarding some revisions. Staff recommended approval of the filing.
Chairman Hanson moved to approve the Conservation Program Tracking Mechanism revised tariffs for service rendered on and after May 1, 2008. Motion passed 3-0.
Ms Melaine Acord stated that MidAmerican is requesting an extension of its monthly metered transportation and interruptible monthly metered transportation services ("MMT" collectively), with the availability of MMT being requested through December 31, 2008, while options for a permanent monthly metered transportation program continue to be evaluated. MidAmerican anticipates that a permanent monthly metering transportation tariff will be filed with the Commission later this year. Ms. Acord further stated that upon approval of a permanent MMT tariff, customers will be provided the option to change to the new tariff, return to sales service or elect daily gas transportation service. Mr. Dave Jacobson stated that Customers in South Dakota can aggregate under a pool operator, where the pool operator and the Company can take care of the nominating and balancing. Mr. Jacobson further stated that the Customer would be billed under the current rate system and Staff recommends approval of the tariff revisions.
Commissioner Johnson moved to approve the tariff revisions effective as of May 1, 2008. Motion passed 3-0.
Telecommunications
1. 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.
Ms. Darla Rogers stated that she is representing LNP Petitioners except for Swiftel Communications. Ms. Rogers further stated that the Petitioners have agreed upon a temporary suspension and procedural schedule and asked that the Commission approve the stipulation. Mr. Talbot Wieczorek stated that he has signed the stipulation and clarified that any extension of the suspension from August 8, 2008, would need to be agreed to by the parties. Ms. Mary Sisak stated that she supports Ms. Rogers's comments and statements. Mr. Sean Simpson stated that he supports the comments made by both Ms. Rogers and Mr. Wieczorek regarding the stipulation and the party's efforts. Mr. Denny Duncan stated that they also support Ms. Rogers and Mr. Wieczorek regarding the stipulation. Ms. Wiest stated that Staff supports and recommends approval of the Stipulation.
Commissioner Johnson moved to approve the Stipulation for Procedural Schedule. Motion passed 3-0.
On March 28, 2008 Americatel filed to remove the surety bond requirement that is an condition of its COA and have restrictions from deposits, advance payments and prepaid services as a condition of its COA. Staff recommended the Commission grant the request to withdraw the $25,000 surety bond with the condition that Americatel not collect deposits or advance payments and not offer prepaid services including prepaid calling cards, without prior approval of the Commission.
Vice Chairman Kolbeck moved to grant Americatel's application for an amended certificate of authority to provide interexchange telecommunications services, subject to the removal of the condition of a surety bond, and subject to the condition that Americatel 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. Motion passed 3-0.
Administration
1. Establishment of the Gross Receipts Tax levy for the 2009 Fiscal Year (Deputy Executive Director: Heather Forney)
Ms. Heather Forney stated that on April 1st of each year all utilities and telecommunications companies doing business in South Dakota shall file with the Commission, on forms provided by the Commission, the amount of its gross receipts derived from customers within South Dakota during the preceding calendar year pursuant to SDCL 49-1A-4. Ms. Forney further stated that the Commission has received the majority of the filings and asked that the Commission assess the levy at the maximum of .0015 with a two hundred fifty dollar minimum gross receipts tax in accordance with SDCL 49-1A-5
Chairman Hanson moved to establish and set the Gross Receipts Tax as requested by Staff. Motion passed 3-0.
- Proposed Rulemaking Docket (Grain Warehouse Director: Jim Mehlhaff)
Mr. James Mehlhaff requested that the proposed rulemaking docket regarding grain warehouses and grain dealers be withdrawn and be taken up in the addendum to the Agenda. Chairman Hanson announced that this would taken up in the Addendum to the Agenda
ADDENDUM TO THE AGENDA OF COMMISSION MEETING
- Proposed Rulemaking Docket (Staff Analysts: Jim Mehlhaff/Nathan Solem, Staff Attorney: Kara Semmler)
Mr. James Mehlhaff stated that during the 2008 Legislative Session several changes were made to the sections of South Dakota codified law that regulate grain warehouses and grain dealers/buyers. Mr. Mehlhaff further stated that changes are necessary in ARSD chapters 20:10:11 and ARSD 20:10:12 to make them consistent with these changes and asked that the Commission open a rulemaking docket. In addition Ms. Kara Semmler on behalf of the pipeline safety division, requested that a rulemaking docket be opened to make revisions and or additions to its rules pertaining to pipeline safety assessments including ARSD 20:10:31:04 and 20:10:31:05 so as to require annual rather than quarterly assessments to be consistent with the amended statutory language.
Chairman Hanson moved to open a rulemaking docket as requested by Staff. Motion passed 3-0.
There being no further business, at the hour of 11:00 am the South Dakota Public Utilities Commission Meeting adjourned.
/s/Demaris Axthelm________
Demaris Axthelm
Administrative Secretary
