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South Dakota Public Utilities Commission Meeting
August 12, 2008, at 9:30 A.M.
Visitors Center
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Chairman Gary Hanson called the meeting to order. Present were: Commissioners Steve Kolbeck and 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, Keith Senger, Bob Knadle, Brian Rounds, Jim Mehlhaff and Terri LaBrie Baker; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Demaris Axthelm.
Also present were: Rich Coit, South Dakota Telecommunications Association; Margo Northrup, Riter, Rogers, Wattier, & Northrup, LLP, representing South Dakota Association of Telephone Cooperatives; Dave Gerdes, May, Adam, Gerdes, & Thompson, representing Midcontinent and Xcel Energy; Brett Koenecke, May, Adam, Gerdes and Thompson, representing NorthWestern Energy and MCC Telephony of the Midwest, Inc., d/b/a Mediacom (MCC); Ryan Thompson, Santel Communications Cooperative; Steve Willard, South Dakota Electric Utility Company; Ed Anderson, South Dakota Rural Electric Association (SDREA); Bill Van Camp, Olinger, Lovald, McCahren & Reimers, representing AT&T; Darla Rogers, Riter, Rogers, Wattier & Northrup, representing South Dakota Rural Electric Association (SDREA); James Groft, James Valley Cooperative Telephone; Jim Edwards and Bob Sahr, East River Power Electric Cooperative; Pam Bonrud, NorthWestern Energy; Haven Stuck, Lynn, Jackson, Shultz & Lebrun LLP, representing Basin Electric Cooperative, and Casey Jacobson, Basin Electric Cooperative.
Joining the meeting by telephone were: Mary Sisak and Julia Voss, Blooston, Mordkofsky, Dickens, Duffy and Prendergast, representing Brookings Municipal Utilities d/b/a Swiftel Communications; Talbot Wieczorek, Gunderson, Palmer, Goodsell & Nelson, representing Alltel Communications; Paul H. Linde, Schaffer Law Office, representing Bailey's Plumbing; Wendy Harper, Vantage Point; Jim Cremer, Bantz Gosch & Cremer LLC, representing James Valley Cooperative Telephone Company; Colleen Sevold and Larry Toll, Qwest Corporation; Steve Otto and Linda Stevens, Rural Cellular; Ryan Taylor, Cutler & Donahoe, LLP, representing Midstate Telecom, Inc; RaeAnn Kelsh, Alltel Communications; Christopher W. Madsen, Boyce, Greenfield, Pashby & Welk LLP, representing Qwest Corporation; Jeff Larson, Larson & Nipe, representing Sancom Telephone Company; Greg McCurry, Sancom Telecommunications, Inc. d/b/a Mitchell Telecom; and Kathy Ford, Knology Community Telephone, Inc.
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 129 contacts since the last report was prepared for the July 28, 2008, Commission meeting. 66 contacts involved telecommunications services; 21 contacts involved electricity issues; 9 contacts involved natural gas issues; 2 contacts involved natural gas and electrical services; 6 contacts involved cellular phone issues; 7 contacts involved the Do Not Call Registry; 1 contact involved the Keystone Pipeline; and 17 contacts involved issues not regulated by the Public Utilities Commission. In 2008, 1358 of the 1440 complaints registered have been resolved informally. In 2007, 2,311 of the 2,337 complaints registered have been resolved informally.
Administration
Mr. Jim Mehlhaff, Grain Warehouse Director, recommended the Commission open a docket to examine the rates for handling and storage of grain. The rates haven't been looked at since 1997 when the last docket was opened and resolved in 1998.
Commissioner Johnson moved to open a docket to investigate the costs associated with receiving, handling, storing and redelivering grain. Motion passed 3-0.
Electric
1. EL08-004 In the Matter of the Filing by Basin Electric Power Cooperative, Inc. Regarding its Notification of Intent to Apply for a Permit for an Energy Conversion Facility (Staff Analysts: Nathan Solem/Brian Rounds/Bob Knadle, Staff Attorney: Karen Cremer)
Mr. Haven Stuck stated that Basin Electric Power Cooperative, Inc., (Basin) is requesting the Commission to allow the filing of testimony on a date mutually agreed to by Staff and any Intervenors. Staff agreed with the proposal. Mr. Smith, Commission Attorney, recommended setting a procedural schedule at the conclusion of the intervention period.
Commissioner Johnson moved that the pre-filed testimony be filed in accordance with a scheduling order to be approved by the Commission following the closure of the intervention period. Motion passed 3-0.
2. EL08-010 In the Matter of the Application of East River Electric Power Cooperative, Inc. for a Permit to Construct approximately 13 miles of 115 kV Transmission Line. (Staff Analysts: Dave Jacobson/Brian Rounds, Staff Attorney: Kara Semmler)
Mr. Bob Sahr, East River Electric Power Cooperative, Inc., informed the Commission that East River met with a private landowner and found a mutually acceptable solution. Staff recommended that the Commission grant the siting permit as requested by East River.
Vice Chairman Kolbeck moved to approve the Stipulation. Motion passed 3-0.
Vice Chairman Kolbeck moved to approve the construction permit. Motion passed 3-0.
Ms. Terri LaBrie Baker, staff analyst, stated the exception to the assigned service territory is in the public interest and recommended approval of the joint request.
Vice Chairman Kolbeck moved to approve the joint request for service rights exception. Motion passed 3-0.
4. EL08-022 In the Matter of the Joint Request for an Electric Service Rights Exception between Bon Homme Yankton Electric Association, Inc. and NorthWestern Corporation d/b/a NorthWestern Energy. (Staff Analysts: Dave Jacobson/Terri LaBrie Baker, Staff Attorney: Kara Semmler)
Ms. Terri LaBrie Baker, staff analyst, stated that the exception to the assigned service territory is in the public interest and recommended approval of the joint request.
Vice Chairman Kolbeck moved to approve the joint request for service rights exception. Motion Passed 3-0.
Pipeline Safety
1. PS07-002 In the Matter of the Filing of the Investigation of the Natural Gas Incident of March 8, 2007 on NorthWestern Energy's System in Mitchell, South Dakota. (Staff Analyst: Nathan Solem, Staff Attorney: Kara Semmler)
Ms. Kara Semmler, Staff Attorney, stated that this docket was opened to oversee an investigation resulting from a 2007 pipeline incident. Staff's investigation does not show that violations of the pipeline safety code either caused or contributed to the incident of March 8, 2007. Ms. Kara Semmler stated that the investigation is complete and requested the Commission to close the docket. Mr. Brett Koenecke, representing NorthWestern, concurred with Staff.
Chairman Hanson moved to grant the Motion to Close the Docket. Motion passed 3-0.
Telecommunications
See link to viewTranscript of August 12, 2008, Commission Meeting; http://puc.sd.gov/commission/minutes/2008/transcripts/tc07-128.pdf
Commissioner Johnson moved to: (i) deny in part Sancom's Motion to Quash Subpoenas, Interrogatories and Data Requests with respect to Qwest's Subpoena requesting production of Sancom's responses to Staff's Data Requests except for Sancom's responses to DR 1-23, 1-28 and 3-3; (ii) to defer action on the Motion to Quash with respect to Sancom's responses to Staff's Data Requests DR 1-23, 1-28 and 3-3 and Qwest's interrogatories and data requests dealing with Sancom's conferencing services; and to require Sancom and/or Staff to produce to Qwest Sancom's responses to Staff's Data Requests, except for DR 1-23,1-28 and 3-3, subject to a Protective Order that would preclude disclosure or use of the produced materials for any purpose other than this proceeding, including use in any other proceeding other than any legal proceeding arising directly out of this proceeding, except pursuant to discovery in such other legal proceeding or an applicable order of the court or tribunal in such other proceeding. Motion passed 3-0.
The Commission deferred action on the stipulation.
2. TC08-099 In the Matter of the Application of NexUSTel, LLC for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analysts: Terri LaBrie Baker/Dave Jacobson, Staff Attorney: Kara Semmler)
Ms. Terri LaBrie Baker, staff analyst, recommended the Commission grant NexUSTel, LLC the certificate of authority, subject to the condition that NexUSTel LLC 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. Ms. Baker further recommended that the Commission grant NEXUSTel, LLC's request for a waiver of ARSD 20:10:24:02(9).
Commissioner Johnson moved that the Commission grant an interexchange certificate of authority to NexUSTel LLC, subject to the restrictions that NexUSTel LLC 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 and grant the waiver. Motion passed 3-0.
Ms. Terri LaBrie Baker, staff analyst, recommended the Commission grant BLC Management LLC d/b/a Angles Communication Solutions (ACS) a certificate of authority to provide interexchange and local exchange services, subject to a $25,000 surety bond and rural safeguards. Ms. Terri LaBrie Baker further recommended that the Commission grant ACS's request for waivers of ARSD 20:10:24:02(9) and 20:10:32:03(12).
Vice Chairman Kolbeck moved to grant a certificate of authority to BLC Management LLC d/b/a Angles Communication Solutions (ACS) subject to a continuous $25,000 surety bond and rural safeguards and grant the waivers. Motion passed 3-0.
4. TC08-101 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and 360Networks (USA) (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Kara Semmler)
Staff stated the amendment 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 interconnection agreement.
Chairman Hanson moved to approve the amendment to the interconnection agreement. Motion passed 3-0.
ADDENDUM TO THE
AGENDA OF COMMISSION MEETING
Telecommunications
1. TC07-007 In the Matter of the Petition of Brookings Municipal Utilities d/b/a Swiftel Communications for Suspension or Modification of Dialing Parity, Number Portability and Reciprocal Compensation Obligations. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)
Staff recommended approval of Midcontinent Communications' Motion to withdraw from the docket.
Vice Chairman Kolbeck moved to grant Midcontinent's Motion to Withdraw from the docket. Motion passed 3-0.
2. TC06-178 In the Matter of the Application of Sprint Communications Company L.P. for Authority to Provide Local Exchange Services in Certain Rural Areas Served by Brookings Municipal Utilities d/b/a Swiftel Communications. (Staff Analyst: Harlan Best, Staff Attorney: Kara Semmler)
Chairman Hanson moved to go into closed session to ask questions regarding confidential information in the above referenced dockets. Motion passed 3-0.
See link to viewTranscript of August 12, 2008, Commission Meeting; http://puc.sd.gov/commission/minutes/2008/transcripts/081208.pdf
Vice Chairman Kolbeck moved to deny the motion to compel for: Item 4, page 25, MFN Termination Rights; Item 5, page 43, Termination; Item 6, page 44, Termination for Convenience. Motion passed 3-0.
Vice Chairman Kolbeck moved to grant the motion to compel for Item 8, Appendix 5, Service Level Agreements. Motion passed 3-0.
Chairman Hanson moved to deny the motion to compel for Items 1 and 2, in the Swiftel Brief and Item 1 in Sprint's Brief on page 1. Motion passed 3-0.
Chairman Hanson moved to deny the motion to compel for Item 3, page 20. Motion passed 3-0.
Chairman Hanson moved to grant the motion to compel for Appendix 1. Motion carried 2-1. Vice Commissioner Kolbeck, dissented.
Staff stated that all the parties agreed Swiftel would be allowed to file testimony on or before August 19, 2008, that addressed the additional information that was ordered to be produced.
- In the Matter of the Request for Certification Regarding the Use of Federal Universal Service Support in Dockets TC08-064, TC08-066, TC08-068, TC08-069, TC08-070, TC08-074, TC08-084, TC08-085, TC08-091, TC08-092 and TC08-094.
Ms. Terri LaBrie Baker, staff analyst, stated Midstate Telecom, Inc., has filed according to the Commission's administrative rules for the certification of its use of federal universal service support and the company has certified that its support will be used in a manner that is consistent with the federal universal service provisions of 47 U.S.C. Section 254. Staff reviewed the filing and recommended that the Commission grant the request for certification and issue certification letters to the FCC and the USAC. Mr. Ryan Taylor stated that on page two of exhibit B there is an error and the company will file a revised exhibit B.
Commissioner Johnson moved to have the Commission provide a letter of certification to the Federal Communications Commission and to the Universal Service Administrative Company regarding the plan for the use of federal universal services support as proposed, subject to Midstate Telecom, Inc. filing a revised progress report on its two year service improvement plan (Exhibit B). Motion Passed 3-0.
Chairman Hanson asked if there were any objections to the Commission taking up the motion on Dockets TC08-064, TC08-068, TC08-069, TC08-070, TC08-091, TC08-092 and TC08-094 together. Hearing no objections the above dockets will be considered in one motion, unless moved otherwise.
TC08-064 In the Matter of the Request of James Valley Wireless, LLC for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Harlan Best/Terri LaBrie Baker, Staff Attorney: Karen Cremer)
TC08-068 In the Matter of the Request of RCC Minnesota, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Harlan Best/Terri LaBrie Baker, Staff Attorney: Karen Cremer)
TC08-069 In the Matter of the Request of Wireless Alliance, LLC for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Harlan Best/Terri LaBrie Baker, Staff Attorney: Karen Cremer)
TC08-070 In the Matter of the Request of Midcontinent Communications for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Harlan Best/Terri LaBrie Baker, Staff Attorney: Karen Cremer)
TC08-091 In the Matter of the Request of Red River Rural Telephone Association for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Harlan Best/Terri LaBrie Baker, Staff Attorney: Karen Cremer)
TC08-092 In the Matter of the Request of Fort Randall Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Harlan Best/Terri LaBrie Baker, Staff Attorney: Karen Cremer)
Ms. Terri LaBrie Baker, staff analyst, stated that the above 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 recommends that the Commission grant the requests for certification and issue certification letters to the FCC and the USAC.
Chairman Hanson moved to go into closed session to ask questions regarding confidential information in Docket TC08-068. Motion passed 3-0.
Vice Chairman Kolbeck moved to certify the use of USF funds and issue certification letters in Dockets TC08-064, TC08-068, TC08-069, TC08-070, TC08-091, TC08-092 and TC08-094. Motion passed 3-0.
Chairman Hanson asked if there were any objections to the Commission taking up the motion on Dockets, TC08-074, TC08-084, TC08-085 and TC08-086 together. Hearing no objections the above dockets will be considered in one motion, unless moved otherwise.
TC08-074 In the Matter of the Request of Brookings Municipal Telephone d/b/a Swiftel Communications for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Harlan Best/Terri LaBrie Baker, Staff Attorney: Karen Cremer)
TC08-085 In the Matter of the Request of Knology of the Black Hills, LLC for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Harlan Best/Terri LaBrie Baker, Staff Attorney: Karen Cremer)
Mr. Larry Toll, Qwest Corporation, stated that Qwest has filed in the same format in the past. Exhibit B consists of plans and projects that may change significantly due to growth trends, competitive considerations, road projects, extreme weather or other natural conditions affecting facilities, and other variations or upgrades in equipment.
Chairman Hanson moved to go into closed session to ask questions regarding confidential information in Dockets TC08-084 and TC08-085. Motion passed 3-0.
Ms. Terri LaBrie Baker, staff analyst, 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 recommends that the Commission grant the requests for certification and issue certification letters to the FCC and the USAC.
The Commission deferred action in dockets TC08-074, TC08-084, TC08-085 and TC08-086 for additional information.
There being no further business, at the hour of 12:47 am the South Dakota Public Utilities Commission Meeting adjourned. Next Commission meeting is September 9, 2008.
_/S/ Demaris Axthelm_____________
Demaris Axthelm
Administrative Secretary
November 12, 2008
