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South Dakota Public Utilities Commission Meeting
November 25, 2008, at 9:30 A.M.
Room 423, Capitol Building
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 Rolayne Wiest and John Smith; Staff Attorneys Kara Semmler and Karen Cremer; Staff Analysts Terri LaBrie Baker, Dave Jacobson, Bob Knadle, Tim Binder, and Jon Thurber; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Demaris Axthelm.
Also present were: Brett Koenecke, May, Adam, Gerdes and Thompson, representing Buffalo Ridge II LLC, a subsidiary of Iberdrola Renewables, Inc., MCC Telephony of the Midwest, Inc. d/b/a Mediacom, MCI Communications Services, Inc. d/b/a Verizon Business Services, and Level 3 Communications, LLC; Margo Northrup, Riter, Rogers, Wattier, & Northrup, LLP, representing LNP Petitioners, SDN Communications and Golden West Communications; Robert Hill, on behalf of Brookings County; Rich Coit, South Dakota Telecommunications Association; and Sara Greff Dannen and Pamela Bonrud, NorthWestern Energy.
Joining the meeting by telephone were: Quinton Riggins, Gunderson, Palmer, Goodsell & Nelson, representing Alltel Communications and Sprint Communications Company L.P.; Ryan Taylor, Cutler & Donahoe, LLP, representing Interstate Telecommunications Cooperative, Inc.; Bill Van Camp, Olinger, Lovald, McCahren & Reimers, representing AT&T Communications of the Midwest, Inc.; Darla Rogers, Riter, Rogers, Wattier & Northrup, representing Local Exchange Carriers Association; Marlene Bennett, consultant with Martin Group, on behalf of Local Exchange Carriers Association; Colleen Sevold and George Thomson, Qwest Corporation; JoAnn Hohrman and Doug Eidahl, Vantage Point; and Jim Wilcox, Xcel Energy.
Chairman Hanson announced that Docket TC08-127 will be addressed first on the agenda.
Telecommunications
Mr. Bill Van Camp, representing AT&T Communications of the Midwest, Inc. (AT&T), stated that the amount paid by AT&T for switched access calls is a significant cost component in its provision of interexchange services and that AT&T has a substantial interest in insuring that access fees are reasonable, accurate and consistent with the public interest and the establishment of a PIU floor for unidentified FGD terminating traffic as proposed by Qwest would have an adverse financial impact on AT&T and its customers in South Dakota. Mr. Van Camp requested that the Commission grant intervention and suspend Qwest's proposed revisions effective December 1, 2008, pending the outcome of this matter. Ms. Darla Pollman Rogers, representing Local Exchange Carriers Association (LECA), stated that LECA supports the proposed Qwest tariff revisions and requested the Commission grant intervention to LECA. Mr. Brett Koenecke, representing MCI Communications Services, Inc. d/b/a Verizon Business Services, stated they have the same comments as Mr. Van Camp and requested the Commission grant its intervention. Mr. Rich Coit stated that SDTA is requesting intervention status. Mr. Brett Koenecke, representing Level 3 Communications, stated Level 3 would like to withdraw its petition for intervention. Mr. George Thomson stated that Qwest objects to MCI's petition but has no objection to SDTA and LECA, and discussions are ongoing with AT&T. Ms. Karen Cremer, Staff Attorney, stated that Staff recommended the Commission grant intervention to AT&T, Verizon, LECA and SDTA, but recommend that the Commission wait to address the withdrawal request of Level 3 until the company files its request. Staff further recommended that the Commission suspend of the proposed tariff revisions pursuant to SDCL 49-31-12.4 effective December 1, 2008.
Commissioner Johnson moved that the Commission grant intervention to AT&T, MCI Communications Services, Inc. d/b/a Verizon Business Services, Local Exchange Carriers Association and South Dakota Telecommunications Association, take no action on Level 3 Communications, LLC intervention. Motion passed 3-0.
Vice Chairman Kolbeck moved the Commission to suspend the proposed tariff revisions for 120 days effective December 1, 2008. Motion passed 3-0.
Administration
- Approval of the Minutes of the Commission Meeting Held on October 21, 2008 (Staff: Demaris Axthelm)
Vice Chairman Kolbeck moved to approve the Commission Minutes of October 21, 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 108 contacts since the last report was prepared for the November 12, 2008 Commission meeting. 23 contacts involved telecommunications services; 16 contacts involved electrical services; 12 contacts involved natural gas services; 2 contacts involved electrical and natural gas issues; 9 contacts involved cell phone services, 13 contacts involved the Do Not Call Registry; 1 contact involved the Keystone Pipeline; 14 contacts involved the grain warehouse; and 14 contacts involved issues not regulated by the Public Utilities Commission. In 2008, 2,261 of the 2,321 complaints registered have been resolved informally. In 2007, 2,328 of the 2,337 complaints registered have been resolved informally.
Electric
Mr. Jim Wilcox, Xcel Energy, requested that the Commission grant an extension of the date for decision until January 31, 2009. Ms. Karen Cremer, Staff Attorney, recommended the Commission grant Xcel's Third Motion to Extend Final Approval Deadline.
Vice Chairman Kolbeck moved that the Commission grant Xcel Energy's Third Motion to Extend the Final Approval Deadline. Motion passed 3-0.
Ms. Kara Semmler, Staff Attorney, stated the Energy Independence and Security Act of 2007 includes four new standards the Commission must consider. Staff recommended the Commission open a docket and Staff begin its research and consideration of the standards. Staff also recommended the Commission use a standard consideration timeline of December 19, 2009 for all four of the new standards. Commission Staff will work with Commission Counsel to set a procedural schedule.
Commissioner Johnson moved that the Commission adopt Staff's recommendations. Motion passed 3-0.
Ms. Kara Semmler, Staff Attorney, requested the Commission grant the request to suspend the imposition of the tariff and assess the filing fee.
Vice Chairman Kolbeck moved that the Commission suspend the imposition of the tariff for the 90 days beyond November 30, 2008 and assess a filing fee for actual expenses not to exceed $100,000. Motion passed 3-0.
Mr. Brett Koenecke, representing Buffalo Ridge II LLC, a subsidiary of Iberdrola Renewables, Inc., requested to hold the public meeting as required in SDCL 49-41B-15 on January 5, 2009 in Brookings. Ms. Kara Semmler, Staff Attorney, stated that due to scheduling and notice complications, the parties to the docket request an extension of the public hearing time frame outlined in SDCL 49-41B-16. Staff recommended that the Commission waive the time frames for the notice and the public hearing date. Mr. Robert Hill, Brookings County Commission, stated that a public hearing date of January 5, 2009 will work. Mr. John Smith, Commission Counsel questioned whether the intervention deadline should also be extended and Mr. Koenecke agreed that would be advisable.
Chairman Hanson moved that the Commission grant the request for an extension of the notice and public hearing for January 5, 2009, to grant waivers of SDCL 49-41 B-15 and 49-41 B-16 and to extend the intervention deadline to January 16, 2009. Motion passed 3-0.
Telecommunications
Ms. Kara Semmler, Staff Attorney, stated that Staff supports the Motion to Withdraw filed by Sprint Communications Company L.P. Mr. Quinton Riggins representing Sprint Communications Company L.P requested Commission approval of the motion. Mr. Brett Koenecke, MCC Telephony of the Midwest, Inc. d/b/a Mediacom, requested approval of the Motion to Withdraw.
Vice Chairman Kolbeck moved that the Commission grant Sprint's Motion to Withdraw. Motion passed 3-1.
Commissioner Johnson stated that in order to be consistent with past agendas, the following Dockets TC06-
176, TC06-180 and TC06-189 will be taken together.
2. TC06-176 In the Matter of the Petition of Sprint Communications Company L.P. for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Brookings Municipal Utilities d/b/a Swiftel Communications. (Staff Attorney: Kara Semmler)
3. TC06-180 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 Interstate Telecommunications Cooperative, Inc. (Staff Attorney: Kara Semmler)
Chairman Hanson asked for comments or recommendations from interested parties and Staff, but there were none.
Vice Chairman Kolbeck moved in Dockets TC06-176, TC06-180 and TC06-189 that the
Commission Grant the Motions to Withdraw. Motion passed 3-0.
Ms. Kara Semmler, Staff Attorney, requested the Commission defer this item as local counsel for Reduced Rates Long Distance could not be present due to a conflict.
Commissioner Johnson moved that the Commission defer TC07-107 at this time. Motion passed 3-0.
6. In the Matter of the Petition for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement in Dockets TC07-112, TC07-113, TC07-114, TC07-115, and TC07-116
TC07-115 In the Matter of the Petition of Santel Communications Cooperative, Inc. for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)
TC07-116 In the Matter of the Petition of West River Cooperative Telephone Company for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)
Ms. Karen Cremer, Staff Attorney, stated that the Petitioners filed a joint stipulation and requested that the record be supplemental with the cost studies. Mr. Quinton Riggins, representing Alltel Communications requested Commission approval of the request.
Commissioner Johnson moved that the Commission approve the joint stipulation to supplement record of consolidated arbitration hearing. Motion passed 3-0.
Commissioner Johnson suggested moving TC08-107 to the end of the agenda. Seeing no objections Chairman Hanson honored Commissioner Johnson's request.
Mr. Tim Binder, Staff Analyst, stated that Staff recommended transferring the Certificate of Authority from CCOS to CCNS, subject to the condition that CCNS not offer any prepaid services, including prepaid calling cards, and not accept or require deposits or advanced payments without prior approval of the Commission. Staff also recommended that the transfer be effective on January 1, 2009.
Commissioner Johnson moved that the Commission approve the transfer of certificate of authority from CCOS to CCNS, subject to the condition that CCNS 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 with an effective date of January 1, 2009. Motion passed 3-0.
9. TC08-125 In the Matter of the Application of Total Holdings, Inc. d/b/a GTC Communications for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Tim Binder, Staff Attorney: Kara Semmler)
Mr. Tim Binder, 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. 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 Certificate of Authority with prepaid restrictions.
Vice Chairman Kolbeck moved that the Commission grant a Certificate of Authority to Total Holdings, Inc. d/b/a GTC Communications. Motion passed 3-0.
10. TC08-126 In the Matter of the Filing for Approval of an Interconnection Agreement between Qwest Corporation and QuantumShift Communications, Inc. d/b/a vCom Solutions. (Staff Attorney: Kara Semmler)
Ms. Kara Semmler stated the agreement was properly filed, 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 3-0.
ADDENDUM TO THE AGENDA
OF COMMISSION MEETING
Consumer Complaints
1. CT08-007 In the Matter of the Complaint filed by Keller Electric, Pierre, South Dakota, against Nationwide Long Distance Service Regarding Unauthorized Switching of Services. (Staff Analyst: Deb Gregg, Staff Attorney: Kara Semmler)
Ms. Kara Semmler, Staff Attorney, stated Nationwide Long Distance Service agreed to credit Keller Electric. Keller Electric received a settlement check from Nationwide Long Distance Service. Staff recommended the Commission dismiss the complaint and close the docket.
Commissioner Johnson moved that the Commission Dismiss the Complaint and Close the Docket. Motion passed 3-0.
JonAnn Hormann and Doug Eidahl, Vantage Point, stated that SSTelecom is a wholly own subsidiary of ITC and has made this filing to correct a possible gap in the company's interexchange authority and will be available for any questions from the Commission. Jon Thurber, Staff Analyst, stated that Staff has reviewed the application, and SSTelecom, Inc., d/b/a ITC has met the requirements and recommended approval and further recommended that the company be subject to a continuous $25,000 surety bond.
Chairman Hanson moved that the Commission grant a Certificate of Authority, to SSTelecom, Inc., d/b/a ITC subject to a continuous $25,000 surety Motion passed 3-0.
There being no further business, at the hour of 10:35 am the South Dakota Public Utilities Commission Meeting adjourned. Next Commission meeting is scheduled for December 9, 2008.
_/S/Demaris Axthelm____
Demaris Axthelm
Administrative Secretary
January 27, 2009
