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South Dakota Public Utilities Commission Meeting
October 21, 2008, at 9:30 A.M.
State Capitol Building, Room 423
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 Attorney Rolayne Wiest; Staff Attorney Kara Semmler; Staff Analysts Terri LaBrie Baker, Dave Jacobson, Bob Knadle, and Jon Thurber; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Demaris Axthelm.
Also present were: Dave Gerdes, May, Adam, Gerdes and Thompson, representing Midcontinent Communications, Montana-Dakota Utilities and MCI Communication Services d/b/a Verizon Wireless.; Brett Koenecke, May, Adam, Gerdes and Thompson, representing NorthWestern Energy; Margo Northrup, Riter, Rogers, Wattier, & Northrup, LLP, representing LNP Petitioners, SDN Communications and Golden West Communications; and Sara Greff Dannen and Pamela Bonrud, NorthWestern Energy.
Joining the meeting by telephone were: Talbot Wieczorek, Gunderson, Palmer, Goodsell & Nelson, representing Alltel Communications; Mary Sisak, Blooston, Mordkofsky, Dickens, Duffy and Prendergast, representing Brookings Municipal Utilities d/b/a Swiftel Communications; Jim Wilcox, Xcel Energy; JoAnn Hohrman, Telco Consulting on behalf of Midstate Telecom, Inc.; Chris Collier, Regulatory Consultant, Telecom Professionals, on behalf of Network Innovations, Inc.; Kenna Hagan, Black Hills Corporation; Colleen Sevold and George Thomson, Qwest Corporation; Phil Schenkenberg, Briggs and Morgan, P.A., representing Verizon Wireless; Paul Linde, Schaffer Law Office, representing Bailey's Plumbing; Jeff Decker, NorthWestern Energy; Don Petersen, Morgan Theeler, LLP, representing Dakota Energy Cooperative, Inc.; Ken Gates and Lynn Kruse, Dakota Energy Cooperative Inc.; and Bob Sahr and Gregg Hollister, East River Electric Power Cooperative Inc.
Administration
- Approval of the Minutes of the Commission Meeting Held on June 24, 2008 (Staff: Demaris Axthelm)
Vice Chairman Kolbeck moved to approve the Commission Minutes of June 24, 2008. Motion passed 3-0.
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 96 contacts since the last report was prepared for the October 7, 2008 Commission meeting. 27 contacts involved telecommunications services; 33 contacts involved electrical services; 2 contacts involved electrical and natural gas issues; 3 contacts involved cell phone services, 17 contacts involved the Do Not Call Registry and 14 contacts involved issues not regulated by the Public Utilities Commission. In 2008, 1,962 of the 2,055 complaints registered have been resolved informally. In 2007, 2328 of the 2,337 complaints registered have been resolved informally.
Consumer Complaints
- In the Matter of the Complaints Filed by Gary Loudner in Dockets CE08-001, CT08-003, CT08-004, CT08-005 and CT08-006.
Chairman Hanson announced items 1 through 5 will be taken together since there were no objections.
1. CE08-001 In the Matter of the Complaint filed by Gary Loudner, Black Hawk, South Dakota, against Black Hills Corporation Regarding Electrical Outages. (Staff Analysts: Dave Jacobson/Deb Gregg, Staff Attorney: Kara Semmler)
2. CT08-003 In the Matter of the Complaint filed by Gary Loudner, Black Hawk, South Dakota, against Midcontinent Communications Regarding Telephone Outages. (Staff Analysts: Dave Jacobson/Deb Gregg, Staff Attorney: Kara Semmler)
3. CT08-004 In the Matter of the Complaint filed by Gary Loudner, Black Hawk, South Dakota, against Qwest Corporation Regarding Telephone Outages. (Staff Analysts: Dave Jacobson/Deb Gregg, Staff Attorney: Kara Semmler)
4. CT08-005 In the Matter of the Complaint filed by Gary Loudner, Black Hawk, South Dakota, against SDN Communications Regarding Telephone Outages. (Staff Analysts: Dave Jacobson/Deb Gregg, Staff Attorney: Kara Semmler)
5. CT08-006 In the Matter of the Complaint filed by Gary Loudner, Black Hawk, South Dakota, against Golden West Telecommunications Cooperative Regarding Telephone Outages. (Staff Analysts: Dave Jacobson/Deb Gregg, Staff Attorney: Kara Semmler)
Ms. Kara Semmler stated the facts leading up to this motion are addressed in Staff's Request to Schedule Motion to Dismiss and further stated Mr. Loudner was contacted several times and was informed of the process. Mr. John Smith, Commission Counsel, recommended the Commission handle all the above dockets with one Motion for Summary judgment to dispose of any insufficiencies of Mr. Loudner's initial pleading.
Vice Chairman Kolbeck moved the Commission approve Staff's Request to Schedule Motions to Dismiss at the November 12, 2008 Commission meeting in Dockets CE08-001, CT08-003, CT08-004, CT08-005 and CT08-006 to include Staff's recommendations. Motion passed 3-0.
Electric
1. EL08-001 In the Matter of the Application of Xcel Energy for a Permit to Construct 6.5 Miles of 115 Kv Transmission Line and Associated Modifications to the Brookings Substation (Staff Analysts: Bob Knadle/Brian Rounds, Staff Attorney: Karen Cremer)
Mr. Jim Wilcox, representing Xcel Energy, stated that Xcel Energy is working with Staff, and requested the Commission grant its request to extend the final deadline to November 30, 2008. Ms. Karen Cremer, Staff Attorney, recommended granting the extension to Xcel.
Commissioner Johnson moved that the Commission grant Xcel Energy's second motion to extend final approval deadline to November 30, 2008. 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 Staff requested the Commission reopen this docket and accept Staff's Amended Safety Report. Mr. Brett Koenecke stated NorthWestern intends to file an expert report, but requested the Commission grant Staff's request.
Commissioner Johnson moved that the Commission reopen the docket and accept Staff's amended Safety Report. Motion passed 3-0.
2. PS08-001 In the Matter of the Filing of the Investigation of the Natural Gas Incident of February 20, 2008, on Montana-Dakota Utilities Co.'s System in Pierre, South Dakota. (Staff Analyst: Nathan Solem, Staff Attorney: Kara Semmler)
Ms. Kara Semmler, Staff Attorney, requested the Commission defer so all parties can be present.
Chairman Hanson moved that the Commission defer PS08-001 to November 30, 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.
TC08-018 In the Matter of the Petition of Union Telephone Company for Suspension or Modification of 47 U.S.C. Section 251(b)(2) of the Communications Act of 1934 as Amended. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Rolayne Ailts Wiest)
TC08-019 In the Matter of the Petition of Armour Independent Telephone Company for Suspension or Modification of 47 U.S.C. Section 251(b)(2) of the Communications Act of 1934 as Amended. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Rolayne Ailts Wiest)
Ms. Margo Northrup, representing the LECs, requested the Commission approve the Stipulation the parties agreed to. In the filed Stipulation, the Petitioners requested a temporary suspension until an agreed upon date and the modification language of the Petitioners' obligation. Mr. Phil Schenkenberg stated that Verizon agreed with Ms. Northrup and requested the Commission's approval. Ms. Mary Sisak stated that Swiftel supported comments made by Ms. Northrup. Mr. Tal Wieczorek stated that Alltel endorsed the previous comments. Ms. Rolayne Wiest, Commission Counsel, stated that Staff supports the Stipulation, and agreed the suspension dates need to be made public, that are currently filed confidential in the LNP settlement. Staff also pointed out that since the stipulation requests a modification pursuant to Section 251(f)(2), the Commission should determine under what standard the modification is being approved under. Staff recommended the language "to avoid imposing a requirement that is unduly economical burdensome." Ms. Northrup stated that the Petitioners support Staff's recommendations. Mr. Phil Schenkenberg stated that Verizon requested the Commission approve the stipulation as it was written. Ms. Sisak stated that Swiftel supports Ms. Northrup's comments. Mr. Tal Wieczorek stated that Alltel agreed with Mr. Schenkenberg, but if the Commission has additional language then Alltel would support Staff's recommendations.
Commission Johnson moved that the Commission approve the stipulations that were filed along with recommendations from Staff dealing with the justification for the modification and list the implementation dates in the Commission order. Motion passed 3-0.
2. 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 Analyst: Terri LaBrie Baker, Staff Attorney: Karen Cremer)
Mr. Dave Gerdes, representing MCI Communications Services, Inc. d/b/a Verizon Business Services, stated that the parties have settled and requested the Commission dismiss the complaint. Ms. Karen Cremer, Staff Attorney, stated that Staff recommends the Commission grant the Motion to Dismiss.
Chairman Hanson moved the Commission grant the Motion to Dismiss and close the Docket with prejudice. Motion passed 3-0.
3. TC08-111 In the Matter of the Application of Network Innovations, Inc. for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analysts: David Jacobson/Tim Binder, Staff Attorney: Kara Semmler)
Mr. Tim Binder, Staff Analyst, stated that Network Innovations Inc. has met the requirements for granting a Certificate of Authority and has provided staff with all requested information. Network Innovations, Inc. has agreed that it will not offer prepaid services (including calling cards) and will not require nor accept deposits and/or advance payments. Staff recommend that the Commission grant a Certificate of Authority to Network Innovations, Inc. with prepaid restrictions.
Vice Chairman Kolbeck moved the Commission grant a Certificate of Authority to Network Innovations Inc. per staff's recommendations. Motion passed 3-0.
4. TC08-113 In the Matter of the Application of Midstate Telecom, Inc. for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analysts: Bob Knadle/Tim Binder, Staff Attorney: Kara Semmler)
Mr. Tim Binder, Staff Analyst, stated that Midstate Telecom, Inc. (MTI) filed an application for a certificate of authority to provide interexchange telecommunications services in the exchanges served by Qwest throughout South Dakota. MTI requests confidential treatment of its financial information. The applicant has met the requirements for granting a Certificate of Authority and has provided staff with all requested information. Midstate Telecom, Inc. has agreed that it will not offer prepaid services (including prepaid calling cards) and will not require nor accept deposits and/or advance payments. Staff recommended that the Commission grant a Certificate of Authority to MTI with restrictions for exchanges served by Qwest.
Commissioner Johnson moved the Commission grant a Certificate of Authority to Midstate Telecom, Inc. Motion passed 3-0.
A second motion was entered by Commissioner Johnson that the Commission grant a Certificate of Authority to Midstate Telecom, Inc per staff's recommendations. Motion passed 3-0.
ADDENDUM TO THE AGENDA
OF COMMISSION MEETING
Electric
1. EL08-011 In the Matter of the Petition for Electrical Service by South Dakota Oilseed Processors, L.L.C. to have NorthWestern Energy Assigned as its Electric Provider in the Service Area of Dakota Energy Cooperative, Inc. (Staff Analyst: David Jacobson, Staff Attorney: Karen Cremer)
Mr. Brett Koenecke, representing NorthWestern Energy, described the filing, and stated that a Settlement Agreement has been reached with the intervenor Dakota Energy which changed this filing from one pursuant to SDCL 49-34A-56 to a territory exception pursuant to SDCL49-34A-55. Mr. Dave Jacobson, Staff Analyst, explained that all of the factors required to be considered by 49-34A-55 had been addressed except for the economic use and development of the electric systems of the contracting utilities. Mr. Jacobson stated that NorthWestern had provided its costs of connecting the customer but Dakota Energy had yet to respond. Mr. Kenneth Gates, CEO and General Manager of Dakota Energy described the facilities that would have been required if Dakota Energy were to provide service. Mr. Don Petersen, representing Dakota Energy, stated that it would cost more for Dakota Energy to serve the customer than it would NorthWestern Energy. Ms. Karen Cremer, Staff Attorney, stated that Staff recommended the Commission grant approval of the electric service rights exception.
Chairman Hanson moved that the Commission approve the joint request for an electric service rights exception. Motion passed 3-0.
There being no further business, at the hour of 10:18 am the South Dakota Public Utilities Commission Meeting adjourned. Next Commission meeting is scheduled for November 12, 2008.
_/S/Demaris Axthelm____
Demaris Axthelm
Administrative Secretary
November 25, 2008
