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South Dakota Public Utilities Commission Meeting
November 12, 2008, at 9:30 A.M.
Room 423, Capitol Building
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Vice Chairman Steve Kolbeck called the meeting to order. Present were: Commissioner Dustin Johnson; Executive Director Patty Van Gerpen; Commission Advisor Greg Rislov; Commission Attorneys John Smith and Rolayne Wiest; Staff Attorneys Karen Cremer and Kara Semmler; Staff Analysts Dave Jacobson, Bob Knadle, Nathan Solem, Jon Thurber, Tim Binder and Terri LaBrie Baker; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Demaris Axthelm.Also present were: Brett Koenecke, May, Adam, Gerdes and Thompson, representing Montana-Dakota Utilities, Iberdrola Renewables, Inc., and Midcontinent Communications, and Gordon Woods and Walter Woods, South Dakota Intrastate Pipeline.
Joining the meeting by telephone were: Commissioner Gary Hanson; Deb Kutsunis, Melinda Lovess and Jennifer Moore, MidAmerican Energy; Talbot Wieczorek, Gunderson, Palmer, Goodsell & Nelson, representing Sprint Communications Company L.P.; Kenna Hagen and Kristi Smith, Black Hills Corporation; Andrew Isar, on behalf of Central Telecom Long Distance, Inc.; Mary Sisak, Blooston, Mordkofsky, Dickens, Duffy & Prendergast, representing Brookings Municipal Utilities d/b/a Swiftel Communications; Tom Simmons and Mary Lohnes, Midcontinent Communications; Julie Dishman, McLeodUSA Telecommunications Services, Inc.; Tamie Aberle, Don Ball, Jay Sabo and Pat Darras, Montana-Dakota Utilities; Jim Robbennolt, representing South Dakota Intrastate Pipeline; and Colleen Sevold and George Thomson, Qwest Corporation.
Administration
- Approval of the Minutes of the Commission Meetings Held on July 8, July 29, August 12, September 9, September 23 and October 7, 2008; and Approval of the Minutes of the Ad Hoc Commission Meetings Held on August 6 and August 28, 2008 (Staff: Demaris Axthelm)
Commissioner Hanson moved to approve the Commission Minutes of July 8, July 29, August 12, September 9, September 23, and October 7, 2008; and Approval of the Minutes of the Ad Hoc Commission Meetings Held on August 6 and August 28, 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 158 contacts since the last report was prepared for the October 21, 2008 Commission meeting. 38 contacts involved telecommunications services; 41 contacts involved electrical issues; 17 contacts involved natural gas issues; 2 contacts involved electrical and natural gas services; 9 contacts involved cell phone services; 23 contacts involved the Do Not Call Registry; 1 contact involved the Keystone Pipeline; 1 contact involved wind energy and 26 contacts involved issues not regulated by the Public Utilities Commission. In 2008, 2,148 of the 2,213 complaints registered have been resolved informally. In 2007, 2,328 of the 2,337 complaints registered have been resolved informally.
Vice Chairman Kolbeck stated that the Commission will take up Dockets CE08-001, CT08-003, CT08-004, CT08-005 and CT08-006 in a hearing scheduled following the Commission Meeting.
Electric
Ms. Kara Semmler, Staff Attorney, recommended that the Commission set the initial deposit of $8,000. Mr. Brett Koenecke, representing Buffalo Ridge II LLC, a subsidiary of Iberdrola Renewables, Inc., stated a deposit was submitted to the Commission on October 31, 2008. Mr. Smith, Commission Attorney, stated that costs could exceed the initial deposit but in the past the Commission has not exceeded the maximum fee on wind siting dockets.
Commissioner Johnson moved that the Commission assess a filing fee not to exceed $200,000 with an initial deposit of $8,000. Motion passed 3-0.
Gas & Electric
Mr. Jon Thurber, Staff Analyst, stated that MidAmerican Energy filed its new customer information welcome booklet pursuant to SDAR 20:10:16:02 which will replace separate residential and commercial pamphlets previously used and the company has met all requirements. Mr. Thurber stated that Staff recommended that MidAmerican add a section which provides contact information for customers with billing questions or disputes. Staff recommended approval of the welcome booklet as revised.
Commissioner Hanson moved that the Commission approve the revised customer information booklet. Motion passed 3-0.
Pipeline Safety
Mr. Scott Besmer, Montana-Dakota Utilities, stated that MDU has no concerns with Staff's recommendations. Mr. Nathan Solem, Staff Analyst, stated that when the Commission originally heard this docket, but additional information was requested. Staff has reviewed the additional information submitted by MDU. Staff believes that the request is consistent with pipeline safety. Mr. Bettmann recommended that three conditions be imposed which are: first that a 4 calendar year interval not exceeding 51 months be applied outside of business districts while a 1 calendar year interval not exceeding 15 months apply inside business districts; second, regulator stations and emergency valves be monitored for atmospheric corrosion when maintained or patrolled; and third, that the operator notify SDPUC of hot spots where there are greater corrosion rates requiring monitoring more frequently than once every 3 years. Staff further recommended the Commission grant MDU's request subject to the conditions stated in Mr. Bettmann's recommendations by approving a partial waiver of 49-34B-3 adopting 49 CFR 192.481(a) regarding the frequency of atmospheric corrosion inspection, conditioned, however, on PHMSA's review and consent.
Vice Chairman Kolbeck moved that the Commission approve the waiver subject to the following conditions: first that a 4 calendar year interval not exceeding 51 months be applied outside of business districts while a 1 calendar year interval not exceeding 15 months apply inside business districts; second, regulator stations and emergency valves be monitored for atmospheric corrosion when maintained or patrolled; and third, that the operator notify SDPUC of hot spots where there are greater corrosion rates requiring monitoring more frequently than once every 3 years approving a partial waiver of 49-34B-3 adopting 49 CFR 192.481(a). 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: John Smith)
Mr. John Smith of Staff stated that MDU, SDIP and Staff had reached agreement on the terms of a settlement agreement late in the day on November 11, 2008, but that the language of the agreement had not yet been finalized. Mr. Smith requested that the Commission grant a continuance of today's meeting until 3:00 p.m. on November 13, 2008 for the purpose of taking up this agenda item once the settlement agreement had been finalized, executed and filed. Mr. Smith stated that the parties had authorized him to represent on their behalf that they were in agreement with such a continuance.
Commissioner Kolbeck moved to continue the Commission meeting of November 12, 2008 until November 13, 2008 at 3:00 P.M. for the purpose of again taking up Docket PS08-001 after the agreement is filed. Motion passed 3-0.
Commission meeting reconvened at 3:00 P.M. on November 13, 2008 in Room 464 with notice of the location change having been posted at both entrances to Room 423.
Mr. Smith stated that the Settlement Agreement among the parties to this docket had been finalized, executed and filed with the Commission. Mr. Smith explained the history of the docket, the recommendations of Staff and the negotiations that had occurred among the parties. Mr. Smith then explained the provisions of the agreement designed to achieve a good faith and reasonable attempt at recovery of the PIG and the additional provisions of the agreement designed to provide additional protective measures in the event that the attempt at recovery of the PIG was unsuccessful. Mr. Gordon Woods of SDIP explained the steps that SDIP had taken and would take to notify public officials such as the airport, fire and police departments and people and businesses in the vicinity of the venting site. Mr. Woods also stated that it was SDIP's intention to install the PIG detection and alarm system whether or not the PIG was recovered. Mr. Don Ball of MDU stated that MDU supported the Settlement Agreement and requested the Commission approve it. Mr. Woods and Mr. Jim Robbennolt, representing SDIP, also requested that the Commission approve the Settlement Agreement.
Chairman Hanson moved that the Commission approve the Settlement Agreement. Motion passed 3-0.
November, 12, 2008, Regular Commission Meeting Continued.
Telecommunications
Mr. Jon Thurber, Staff Analyst, stated that the applicant has met the filing requirements for granting a certificate of authority and has provided Staff with all the additional information requested. Mr. Thurber further stated that the applicant has requested a waiver of ARSD 20:10:24:02 (9) and 20:10:24:02 (17). The applicant has agreed that it will not offer prepaid services, including prepaid calling cards, and will not accept or require deposits or advanced payments without prior approval of the Commission. Staff recommended that the Commission grant the waivers and grant the Certificate of Authority with prepaid restrictions.
Chairman Hanson moved the Commission grant a Certificate of Authority to Central Telecom Long Distance, Inc. and approve a waiver of ARSD 20:10:24:02 (9) and 20:10:24:02 (17), subject to the condition that Central Telecom Long Distance, Inc. not offer prepaid services, including prepaid calling cards, and will not accept or require deposits or advanced payments without prior approval of the Commission. Motion passed 3-0.
2. TC08-115 In the Matter of the Application of Reliance Communications International, Inc. for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analysts: Dave Jacobson/Tim Binder, Staff Attorney: Karen Cremer)
Mr. Tim Binder, Staff Analyst, stated that Reliance Communications International, Inc., has filed its application in accordance with the administrative rules. The applicant requested waivers of ARSD 20:10:24:04.05 and 20:10:24:05. Staff recommended that the Commission grant the Certificate of Authority to Reliance Communications International, Inc and the requested waivers as these provisions are not necassary.
Commissioner Johnson moved that the Commission Grant the Certificate of Authority to Reliance Communications International, Inc., and grant a wavier of ARSD 20:10:24:04.05 and 20:10:24:05, subject to the condition that Reliance Communications International, Inc., not offer prepaid services, including prepaid calling cards, and will not accept or require deposits or advanced payments without prior approval of the Commission. Motion passed 3-0.
Ms. Julie Dishman, McLeodUSA Telecommunications Services, Inc., requested approval of revisions to its Access Tariff Number 3. Mr. Jon Thurber, Staff Analyst, stated that the company requests amending the business name to reflect its current name of McLeodUSA Telecommunications Services, Inc. d/b/a PAETEC Business Services. McLeodUSA further requested correcting the title of William A. Haas in the tariff. The revisions are changes in text but not changes in rates, rules or conditions and Staff recommended approval with an effective date of October 10, 2008.
Commissioner Johnson moved that the Commission approve the tariff revisions with an October 10, 2008 effective date. Motion passed 3-0.
Ms. Sisak, representing Swiftel, requested approval of the Interconnection Agreement. Mr. Wieczorek, representing Sprint, also requested the approval from the Commission. Ms. Kara Semmler stated the agreement has been properly filed, has been properly executed and did not appear to contain discriminatory provisions. No comments were filed and Staff recommended approval of the interconnection agreement
Chairman Hanson moved to approve the Interconnection Agreement. Motion passed 3-0.
5. In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement in Dockets TC08-118, TC08-119, TC08-120, and TC08-121
TC08-120 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and Sprint Communications Company L.P. (Staff Attorney: Kara Semmler)
TC08-121 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and McLeodUSA Telecommunications Services, Inc. (Staff Attorney: Kara Semmler)
Ms. Kara Semmler stated that the amendments in Dockets TC08-118, TC08-119, TC08-120, and TC08-121 have been properly filed, have been properly executed and do not appear to contain discriminatory provisions. No comments were filed, and Staff recommends approval of the Amendments to the Interconnection Agreements.
Commissioner Johnson moved to approve the Amendments to the Interconnection Agreements in Dockets TC08-118, TC08-119, TC08-120, and TC08-121. Motion passed 3-0.
Mr. Jon Thurber, Staff Analyst, stated that XO Communications filed for Commission approval of revisions to its Access Services Tariff and has added to the description of its Switched Access Service. Mr. Thurber stated these revisions were changes in text but not change in rates, rules, or conditions. Staff recommended approval with an effective date of November 11, 2008 as proposed.
Vice Chairman Kolbeck moved that the Commission approve the tariff revisions with a November 11, 2008 effective date. Motion passed 3-0.
There being no further business, at the hour of 10:52 am the South Dakota Public Utilities Commission Meeting adjourned.
Commission Hearing commenced at 11:00A.M.
Consumer Complaints
1. In the Matter of the Complaints Filed by Gary Loudner in Dockets CE08-001, CT08-003, CT08-004, CT08-005 and CT08-006.
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)
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)
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)
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)
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)
See link to view Transcript of November 12, 2008, Commission Hearing: http://puc.sd.gov/commission/minutes/2008/transcripts/121208.pdf
Vice Chairman Kolbeck moved that in Docket CE08-001 the Commission Grant a Motion for Summary Judgment in favor of Black Hills Corporation. Motion passed 3-0.
Commissioner Johnson moved that in Docket CT08-003 the Commission Grant a Motion for Summary Judgment in favor of Midcontinent Communications. Motion passed 3-0.
Chairman Hanson moved that in Docket CT08-004 the Commission Grant a Motion for Summary Judgment in favor of Qwest Corporation. Motion passed 3-0.
Vice Chairman Kolbeck moved that that in Docket CT08-005 the Commission Grant a Motion for Summary Judgment in favor of SDN Communications. Motion passed 3-0.
Commissioner Johnson moved that in Docket CT08-006 the Commission Grant a Motion for Summary Judgment in favor of Golden West Telecommunications. Motion passed 3-0.
There being no further business, at the hour of 11:25 am the South Dakota Public Utilities Commission Hearing adjourned.
/S/ Demaris Axthelm_______
Demaris Axthelm
Administrative Secretary
December 30, 2008
