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South Dakota Public Utilities Commission Meeting
June 24, 2008, at 9:30 A.M.
Room 464, State Capitol Building
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Vice Chairman Steve Kolbeck called the meeting to order. Present were: 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; Staff Analysts Harlan Best, Dave Jacobson, Bob Knadle, Brian Rounds, and Terri LaBrie Baker; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Demaris Axthelm.
Also present were: Roger Hall, Colleen Sevold, George Thomson, Jim Wedin and Dan Kaiser, Qwest Corporation; Michael Powers, OrbitCom Inc.; Bill Van Camp, Olinger Lovald, McCahren & Reimers PC, representing Global Crossing Telecommunications, Inc.; Meredith Moore, Cutler & Donahoe, representing Orbit Com Inc.; Matthew Meert and Brad Van Leur, OrbitCom Inc.; Margo Northrup, Riter, Rogers, Wattier, & Northrup, LLP, representing South Dakota Association of Telephone Cooperatives; James Groft, James Valley Cooperative Telephone Company; Dave Gerdes, May, Adam, Gerdes and Thompson, representing MCI Communications Services, Inc. d/b/a Verizon Business Services and Rod Bowar, Kennebec Telephone Company.
Joining the meeting by telephone were: Bruce Gerhardson, Otter Tail Corporation; Dan Wall, East River Electric Cooperative Inc.; Kristy McDermott, Long Lines Wireless LLC.; Robin Norton, Technologies Management, Inc.; Cindy Grosvenor, Consortia Consulting; Jerry Reisenauer, West River Cooperative Telephone Co.; Jonathan Cains and Katherine Barker Marshall, Womble, Carlyle, Sandridge & Rice PLLC, representing Capital Telephone Company, Inc.; Ronald Parsons, Johnson, Heidepriem, Janklow, Abdallah & Johnson LLP, representing Capital Telephone Company Inc.; and Chris Madsen, Boyce, Greenfield, Pashby & Welk LLP, representing Qwest Communications Cooperation.
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 82 contacts since the last report was prepared for the June 10, 2008, Commission meeting. 18 contacts involved telecommunications services; 13 contacts involved electricity issues; 11 contacts involved natural gas issues; 6 contacts involved cellular phone issues; 18 contacts involved the Do Not Call Registry; and 16 contacts involved issues not regulated by the Public Utilities Commission. In 2008, 1,065 of the 1,116 complaints registered have been resolved informally. In 2007, 2,300 of the 2,337 complaints registered have been resolved informally.
Complaint
1. CT08-002 In the Matter of the Complaint filed by Roger L. Hall, Rapid City, South Dakota, against Qwest Corporation Regarding the Cost of Telephone Line Extensions (Staff Analysts: Harlan Best/Deb Greg, Staff Attorney: Kara Semmler)
Mr. George Thomson representing Qwest Corporation (Qwest) stated that developers such as Mr. Hall must comply with section 4:7 of Qwest's services catalog. Qwest gave Mr. Hall three options for services ranging from a high quote of $5,125, midrange option of $4,972 and splicing only option of $2,425. Mr. Hall apparently refused all three options. Qwest is not denying service or refusing to provide service to Mr. Hall. Rather service is available to Mr. Hall as long as he is willing to compensate Qwest for labor and material. Mr. Thomson asked that the Commission dismiss the case. Mr. Roger Hall stated that he filed a formal complaint against Qwest Corporation regarding the cost of telephone line extensions. Mr. Hall requests this complaint go to a hearing for further discussion. Ms. Kara Semmler stated there are a great number of facts in question. Mr. John Smith stated that if there are factual issues at stake then granting a motion to dismiss would not be appropriate.Vice Chairman Kolbeck moved to deny the motion to dismiss. Motion passed 2-0.
Electric
1. EL08-013 In the Matter of the Petition of Otter Tail Corporation d/b/a Otter Tail Power Company for Approval of an Extension of its Test Period. (Staff Analyst: Dave Jacobson, Staff Attorney: Karen Cremer)
Mr. Bruce Gerhardson, representing Otter Tail Power Corporation, stated that Otter Tail Corporation is anticipating filing a general rate case on or before November 1, 2008, and that the last rate case filed by Otter Tail was in 1986. Mr. Gerhardson further stated that 20:10:13:44 requires the use of a test period consisting of 12 months of actual experience ending no earlier than 6 months before the date of filing unless good cause for extension is shown. Otter Tail respectfully requested that the Commission authorize Otter Tail the use of a calendar 2007 test period in this filing. Mr. Dave Jacobson stated that Staff has no objection to Otter Tail using the 2007 calendar year and that the Commission has approved this in the past for MidAmerican.
Commissioner Johnson moved to approve the petition for extension of a test period. Motion passed 2-0.
2. EL08-016 In the Matter of the Application of East River Electric Power Cooperative, Inc. for a Permit to Construct 9.5 miles of 115 kV transmission line in Lincoln and Turner Counties. (Staff Analysts: Bob Knadle/Brian Rounds/Terri LaBrie Baker Staff Attorney: Karen Cremer)
Ms. Karen Cremer stated that according to SDCL 49-41B-12, East River is required to pay a filing fee of $8,000, the minimum fee allowed by law. The fee is used to cover the cost of investigating, reviewing, processing and serving notice of the application. Ms. Cremer stated that SDCL 49-41B-15requires that notice be sent to all landowners within one half mile of the proposed facility. Ms. Cremer further stated that East River has submitted a property tax list to Staff, and Staff recommends that this list be used to serve notice. Mr. Dan Wall, representing East River Electric had no comments.
Vice Chairman Kolbeck moved to assess a filing fee not to exceed $8,000. Motion passed 2-0.
Vice Chairman Kolbeck moved to approve the Landowner notice requirements and that East River will obtain the list of landowners of properties within one-half mile of the facility from the county director of equalization offices for Lincoln and Turner Counties. East River will submit this list to the Commission. The Commission will then send the Notice of Hearing to all landowners on the list and the Notice shall 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. Motion passed 2-0.
Pipeline Safety
1. PS08-002 In the Matter of the Filing by NorthWestern Corporation d/b/a NorthWestern Energy for Approval of a Waiver of 49 C.F.R. Sections 192.285(a)(2) and 192.285(c). (Staff Analysts: Nathan Solem/Daris Ormesher, Staff Attorney: Kara Semmler)
On April 21, 2008, NorthWestern Corporation d/b/a NorthWestern Energy (NWE) filed a request for waiver under § 192.285(c). Without the waiver a person must be requalified to make plastic pipe joints using an applicable procedure if during any 12-month period that person has not made any joints using the procedure. A person must also be requalified if 3 joints or 3 percent of the joints, whichever is greater, made by such person using the procedure during any 12-month period are found to be unacceptable by testing under § 192.513. The waiver allows NorthWestern Energy to requalify each person making plastic pipe joints at least once each calendar year, but not to exceed 15 months, regardless of whether or not the person has made a plastic pipe joint within the calendar year. The waiver also requires NorthWestern Energy to requalify each person who has made one joint found unacceptable by testing under § 192.513, regardless of when the joint was made. Ms. Semmler stated this would allow NWE to re-qualify its employees on a schedule that would use the off season time of NWE and will not compromise safety.
Commissioner Johnson moved to approve the waiver, to require NorthWestern Corporation d/b/a NorthWestern Energy to follow the alternative qualification procedures and standards set forth in paragraph 4 of the Request for Waiver and forward the order approving the waiver to the USDOT's Office of Pipeline Safety. Motion passed 2-0.
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)
Vice Chairman Kolbeck requested that this docket be deferred until all 3 Commissioners are present. Commissioner Johnson agreed and Docket TC06-184 was deferred.
2. TC07-090 In the Matter of the Application of Inmate Calling Solutions, LLC d/b/a ICSolutions for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Dave Jacobson, Staff Attorney: Karen Cremer)
Mr. Dave Jacobson stated that Inmate Calling Solutions d/b/a ICSoultions filed an application for a Certificate of Authority to provide alternative operator services to inmates in correctional facilities, including regular customers in South Dakota. Mr. Jacobson recommended that the Commission approve Inmate Calling's application for a certificate of authority, subject to an irrevocable letter of credit, waive RSD 20:10:24:02(9), and waive ARSD 20:10:24:05(5), (6) and the first sentence of (11) for the provision of AOS to inmate customers in correctional facilities.
Vice Chairman Kolbeck moved to grant the application for a certificate of authority to provide interexchange telecommunications services, subject to Inmate Calling's continuous maintenance of an irrevocable letter of credit issued to the Commission, waivers of ARSD 20:10:24:02(9), ARSD 20:10:24:05(5), (6) and the first sentence of (11) for the provision of AOS to inmate customers in correctional facilities. Motion passed 2-0.
3. TC08-005 In the Matter of the Complaint filed by OrbitCom, Inc. against Global Crossing Telecommunications, Inc. Regarding Switched Access Services. (Staff Analyst: Dave Jacobson, Staff Attorney: Kara Semmler)Mr. Bill Van Camp gave a brief history of the Global Crossing Telecommunications, Inc. (Global Crossing) and OrbitCom, Inc. dispute. Mr. Van Camp requested that the Commission grant the motion to dismiss or a partial dismissal. Ms. Meredith Moore on behalf of OrbitCom asked the Commission to deny the motion to dismiss and allow this complaint to proceed on its merits for further discovery. Ms. Kara Semmler agreed there are a variety of questionable factual issues put forth by both parties. Ms. Semmler stated that the factual issues should be explored through discovery. Therefore, staff recommended that the Commission deny the motion to dismiss to further explore the factual issues.
Vice Chairman Kolbeck moved to deny the motion to dismiss. Motion passed 2-0.
4. TC08-040 In the Matter of the Filing for Approval of an Interconnection Agreement between Qwest Corporation and Access Point, Inc. (Staff Attorney: Kara Semmler)
Ms. Kara Semmler stated the agreement has been properly file, has been properly executed and does not appear to contain discriminatory provisions. No comments were filed and Ms. Semmler recommended approval of the interconnection agreement
Vice Chairman Kolbeck moved to approve the interconnection agreement. Motion passed 2-0.
- In the Matter of the Request for Certification Regarding the Use of Federal Universal Service Support in Dockets TC08-045, TC08-046, TC08-047, TC08- 048, TC08-049, TC08-050, TC08-051, TC08-052, TC08-053, TC08-054, TC08-055, TC08-056, TC08-057, TC08-058, TC08-059, TC08- 060, TC08-061, and TC08-062
TC08-045 In the Matter of the Request of Kennebec Telephone Company, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Harlan Best/Terri LaBrie Baker, Staff Attorney: Karen Cremer)
TC08-046 In the Matter of the Request of Interstate Telecommunications Cooperative, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Harlan Best/Terri LaBrie Baker, Staff Attorney: Karen Cremer)
TC08-053 In the Matter of the Request of West River Telecommunications Cooperative (Mobridge) for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Harlan Best/Terri LaBrie Baker, Staff Attorney: Karen Cremer)
TC08-058 In the Matter of the Request of Roberts County Telephone Cooperative Association and RC Communications, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Harlan Best/Terri LaBrie Baker, Staff Attorney: Karen Cremer)
Vice Chairman Kolbeck asked if there were any objections to the Commission taking up Dockets TC08-045, TC08-046, TC08-047, TC08-048, TC08-049, TC08-050, TC08-051, TC08-052, TC08-053, TC08-054, TC08-055, TC08-056, TC08-057, TC08-058, TC08-059, TC08-060, TC08-061, and TC08-062 together. Hearing no objections, the above dockets were taken together. Mr. Harlan Best stated that the respective companies have filed according to the Commission's administrative rules for the certification of their use of federal universal service support and the companies have certified that their support will be used in a manner that is consistent with the federal universal service provisions of 47 U.S.C. Section 254. Staff has reviewed the filings and recommended that the Commission grant the requests for certification and issue certification letters to the FCC and the USAC.
Vice Chairman Kolbeck moved to certify the use of USF funds and issue certification letters in Dockets TC08-045, TC08-046, TC08-047, TC08-048, TC08-049, TC08-050, TC08-051, TC08-052, TC08-053, TC08-054, TC08-055, TC08-056, TC08-057, TC08-058, TC08-059, TC08-060, TC08-061, and TC08-062. Motion passed 2-0.
6. TC08-065 In the Matter of the Complaint filed by MCI Communications Services, Inc. d/b/a Verizon Business Services against Capital Telephone Company, Inc. Regarding Traffic Pumping.(Staff Analysts: Harlan Best/Terri LaBrie Baker, Staff Attorney: Karen Cremer)
Mr. George Thomson, representing Qwest Corporation, stated that Qwest, terminates traffic to Capital Telephone Company, Inc. (Capital) incurring terminating access charges and therefore has a direct and immediate pecuniary interest in the Commission's decision in the docket. Mr. Ron Parsons, representing Capital, stated that the dispute between Capital and MCI Communications Services, Inc. d/b/a Verizon Business Services (Verizon) is before the FCC and asked that Qwest's Petition for Intervention be denied. Ms. Karen Cremer stated that the complaint is company specific and further recommended that Qwest file its own complaint and recommended that the Commission deny intervention. Ms. Cremer further stated that Mr. Dave Gerdes, counsel for Verizon, informed her that Verizon had no objection to Quest's Intervention.
Commissioner Johnson moved to deny intervention to Qwest Communication Corporation. Motion failed 1-1.
Vice Chairman Kolbeck moved a substitute motion to defer the docket until the next Commission Meeting. Motion passed 2-0.
7. TC08-089 In the Matter of the Application of Clertech.Com, Inc. for a Certificate of Authority to Provide Local Exchange Services in South Dakota.(Staff Analysts: Harlan Best/Terri LaBrie Baker, Staff Attorney: Karen Cremer)
Ms. Margo Northrup, on behalf South Dakota Telecommunications Association (SDTA) requested that the Commission grant intervention to SDTA. Ms. Karen Cremer stated that based on the filing Staff recommends granting intervention to SDTA.
Vice Chairman Kolbeck moved to grant intervention to South Dakota Telecommunications Association (SDTA). Motion passed 2-0.
There being no further business, at the hour of 11:40 am the South Dakota Public Utilities Commission Meeting adjourned.
_/S/ Demaris Axthelm_____________
Demaris Axthelm
Administrative Secretary
October 21, 2008
