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South Dakota Public Utilities Commission Meeting
December 30, 2008, at 9:30 A.M.
Room 464, Capitol Building
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Chairman Dusty Johnson called the meeting to order. Present were: Commissioner Steve Kolbeck; Executive Director Patty Van Gerpen; Deputy Executive Director Heather Forney; Commission Advisor Greg Rislov; Commission Attorney Rolayne Wiest; Staff Attorneys Kara Semmler and Karen Cremer; Staff Analysts Terri LaBrie Baker, Nathan Solem, Stacy Splittstoesser, Bob Knadle, Tim Binder, Brian Rounds, Dave Jacobson, and Jon Thurber; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Demaris Axthelm.
Also present were: Jim Wilcox, Jim Alders, Anne Heuer and Ron Elsner, Xcel Energy; Dave Gerdes, May, Adam, Gerdes and Thompson, representing Midcontinent Communications and Xcel Energy; and Rich Coit, South Dakota Telecommunications Association.
Joining the meeting by telephone were: Commissioner Gary Hanson; Commission Counsel John Smith; Meredith Moore, Cutler and Donahoe, representing Alliance Communications Cooperative, Inc.; Mary Lohnes, Midcontinent Communications; Jeff Decker and Clyde Gross, NorthWestern Energy; Colleen Sevold, Qwest Corporation; Dave Blomquist and Debbie Kutsunis, MidAmerican Energy Company; Walt Grivina and Bernard Liu, Xcel Energy; Bob Towers, Staff Consultant; Debbie Kusunaus, MidAmerican Energy Company and Jerry Reisenauer, West River Cooperative Telephone Company.
Chairman Johnson announced that Electric Docket 1 and Telecommunications Docket 2 will be moved to the end of the agenda.
Administration
- Approval of the Minutes of the Commission Meeting Held on November 12, 2008 (Staff: Demaris Axthelm)
Vice Chairman Kolbeck moved to approve the Commission Minutes of November 12, 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 86 contacts since the last report was prepared for the December 9, 2008 Commission meeting. 25 contacts involved telecommunications services; 14 contacts involved electrical services; 15 contacts involved natural gas services;1 contact involved gas and electrical services; 5 contacts involved cell phone services, 15 contacts involved the Do Not Call Registry; and 11 contacts involved issues not regulated by the Public Utilities Commission. In 2008, 2,418 of the 2,479 complaints registered have been resolved informally. In 2007, 2,328 of the 2,337 complaints registered have been resolved informally.
Electric
Mr. Jim Wilcox stated that Xcel concurs with Commission staff's Memorandum Supporting Settlement Stipulation dated December 17, 2008. Mr. Wilcox further stated that there were 10 issues that were settled upon with staff and Xcel respectfully requests approval. Ms. Karen Cremer stated that staff recommends granting the Joint Motion for Approval of Settlement Stipulation and the Settlement Stipulation without adjustment and approve both the environmental cost recovery rider tariff and the transmission cost recovery rider tariff.
Chairman Johnson moved to grant the joint motion for approval of the Settlement Stipulation, including the Transmission Cost Recovery Rider tariff sheet, subject to the following conditions: (i) that the effective date will be February 1, 2009; and (ii) that the return on equity to be included in the rate of return on investment will be 9.5% but that if Xcel makes a general rate filing utilizing 2008 as the test year, the Commission may determine, based on its findings on the evidence received in such case, the appropriate return on equity value to be utilized under the TCR Rider, including the appropriate return on equity to be utilized and subject to trueup for the period from July 1, 2008, to the effective date of such order. The return on equity value may or may not be the same as the return on equity value approved for Xcel's general rate filing depending on the Commission's findings on the evidence received in such case. Motion passed 3-0.
Mr. Jim Wilcox stated that Xcel concurs with staff on issues stated in the memorandum and Xcel respectfully requests approval of the Joint Motion. Ms. Karen Cremer stated that Staff recommends granting the Joint Motion for Approval of Settlement Stipulation and adopt the Settlement Stipulation without adjustment and approve the environmental cost recovery rider tariff.
Chairman Johnson moved to grant the Joint Motion for Approval of the Settlement Stipulation, including the Enviromental Cost Recovery Rider tariff sheet, subject to the following conditions: (i) that the effective date will be February 1, 2009; and (ii) that the return on equity to be included in the rate of return on investment will be 9.5% but that if Xcel makes a general rate filing utilizing 2008 as the test year, the Commission may determine, based on its findings on the evidence received in such case, the appropriate return on equity value to be utilized under the ECR Rider, including the appropriate return on equity to be utilized and subject to trueup for the period from July 1, 2008, to the effective date of such order. The return on equity value may or may not be the same as the return on equity value approved for Xcel's general rate filing depending on the Commission's findings on the evidence received in such case. Motion passed 3-0.
3. EL08-015 In the Matter of the Filing by Montana-Dakota Utilities Co. for Approval of Tariff Revisions(Staff Analysts: Dave Jacobson/Terri LaBrie Baker, Staff Attorney: Kara Semmler)
Mr. Dave Jacobson stated that Staff is waiting for additional information and requested that Docket EL08-015 be deferred. Hearing no objection, Chairman Johnson announced that Docket EL08-015 will be deferred.
Chairman Johnson announced that Electric item 4 and Natural Gas Item 3 would be taken together.
Mr. Dave Blomquist stated that the reason for the filing was to have MidAmerican Energy tariffs in South Dakota consistent with other states. Mr. Blomquist further stated that there would not be a change in MidAmerican's business practice. Mr. Dave Jacobson explained the two parts of the tariff filings to the Commission. Mr. Jacobson agreed with Mr. Blomquist that there would not be any changes in MidAmerican's business practice.
Vice Chairman Kolbeck moved to approve the tariff revisions in Dockets EL08-032 and NG08-013. Motion passed 3-0.
Natural Gas
Ms. Debbie Kutsunis stated that MidAmerican Energy Company (MidAmerican) requested a tariff change in order to allow an extension to MidAmerican's monthly metering transportation service, to allow customers currently on the service to continue through April 30, 2009. Ms. Kutsunis further stated that MidAmerican intends to finalize recommendations for a permanent program during the intervening time period. Mr. Dave Jacobson stated that this is the same filing that was approved in Docket NG08-004. Mr. Jacobson further stated that Staff is waiting on pending action in Iowa before determining the final rate. Staff recommends approving the tariff revisions.
Chairman Johnson moved to approve the tariff revisions in Docket NG08-011. Motion passed 3-0.
Mr. Jeff Decker stated that NorthWestern has made text changes in hopes of making tariffs easier to understand. Mr. Decker further stated the company requests the ability to waive imbalance penalties on marketers when their gas position is a benefit to NorthWestern's retail customers and to increase the number of available offers and time frame that gas may be purchased by its Rate 86 customers. Mr. Jon Thurber stated that staff recommends approval of the tariff revisions with a January 1, 2009 effective date.
Chairman Johnson moved to approve the tariff revisions, subject to the condition that the tariff include language to state that the waiver can be available only if the waiver of imbalance penalities will cause no detriment to other NorthWestern customers. Motion passed 3-0.
Chairman Johnson announced that Electric item 4 and Natural Gas Item 3 would be taken together.
Mr. Dave Blomquist stated that the reason for the filing was to have MidAmerican Energy tariffs in South Dakota consistent with other states. Mr. Blomquist further stated that there would not be a change in MidAmerican's business practice. Mr. Dave Jacobson explained the two parts of the tariff filings to the Commission. Mr. Jacobson agreed with Mr. Blomquist that there would not be any changes in MidAmerican's business practice.
Vice Chairman Kolbeck moved to approve the tariff revisions in Dockets EL08-032 and NG08-013. Motions passed 3-0.
Telecommunications
Ms. Colleen Sevold, representing Qwest Corporation asked that Docket TC07-121 be dismissed. Mr. Jerry Reisenauer stated that West River Cooperative Telephone Company concurs with Qwest Corporation to dismiss Docket TC07-121. Mr. Dave Jacobson of Staff recommended dismissing and closing Docket TC07-121.
Vice Chairman Kolbeck moved to dismiss and close Docket TC07-121. Motion passed 3-0.
Mr. Dave Gerdes, representing Midcontinent Communications (Midcontinent) stated that Midcontinent is seeking to amend its certificate of authority in order to provide telecommunication services in the Alliance exchanges of Crooks and Baltic. Mr. Gerdes further stated that the required showing is not that the incumbent carrier is actually providing the service, but that it is capable of doing so or that capability and the intent to do so is imminent. Mr. Gerdes presented to the Commission Alliance's 2008 newsletter which referenced tentative dates for providing upgrades to Alliance's exchanges. Mr. Gerdes further stated that Midcontinent has asked Alliance Communications to pick a date on when it would be providing service in order to allow both companies to be able to provide service on the same date. Ms. Meredith Moore, representing Alliance Communications stated that the newsletter that Mr. Gerdes handed out shows general dates that Alliance hopes to provide cable in its service territory. Ms. Moore further stated that the rural exemption requires a carrier to actually begin providing cable and according to Mr. Snyders' affidavit, Alliance is not currently providing cable in the Baltic and Crooks exchanges. Ms Moore also stated that the information requested by Midcontinent is very broad and not necessary. Ms. Moore asked the Commission to deny the Motion to Compel. Mr. Rich Coit, South Dakota Telecommunications Association (SDTA) stated that this is an important issue from an industry perspective because it involves an interpretation of the rural interconnection exemptions and how the Commission interprets this will affect other rural telephone carriers in the future. Ms. Karen Cremer of Staff recommended that the Commission grant the Motion to Compel.
Vice Chairman Kolbeck moved to deny the Motion to Compel Discovery. Motion passed 3-0.
Chairman Johnson made an additional statement that the Commission would take up the motion on how the Commission will proceed at the next Commission meeting.
Ms Karen Cremer stated that Level 3 Communications (Level 3) filed a Petition for Intervention on November 21, 2008. Ms Cremer further stated that Level 3 is asking to withdraw its Petition for Intervention at this time. Therefore, staff recommended granting the motion to withdraw.
Vice Chairman Kolbeck moved to grant Level 3's Motion to Withdraw in Docket TC08-127. Motion passed 3-0.
4. TC08-130 In the Matter of the Application of Mitel NetSolutions, Inc. for a Certificate of Authority to Provide Local Exchange Services in South Dakota. (Staff Analyst: Tim Binder, Staff Attorney: Kara Semmler)
Mr. Tim Binder stated that Staff recommends granting a Certificate of Authority to provide local exchange services to Mitel NetSoultions in existing Qwest service territories, subject to the condition that Mitel not offer prepaid services, including prepaid calling cards and not accept or require deposits or advance payments without prior approval of the commission.
Commissioner Hanson moved to grant a Certificate of Authority to Mitel NetSolutions, to provide local exchange services in the areas served by Qwest, subject to the condition that Mitel NetSolutions not offer prepaid services, including prepaid calling cards and not accept or require customer deposits or advanced payments without prior approval of the Commission. Motion passed 3-0.
5. TC08-132 In the Matter of the Application of Alliance Global Networks LLC for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Tim Binder, Staff Attorney: Karen Cremer)
Mr. Tim Binder stated that Staff recommends granting Alliance Global Networks LLC (Alliance) a Certificate of Authority to provide interexchange telecommunications services throughout South Dakota, subject to the condition that Alliance not offer prepaid services, including prepaid calling cards and not accept or require deposits or advance payments without prior approval of the commission.
Chairman Johnson moved to grant a Certificate of Authority to Alliance Global Networks LLC, to provide interexchange telecommunications services, subject to the condition that Alliance Global Networks LLC. not offer prepaid services, including prepaid calling cards and not accept or require customer deposits or advanced payments without prior approval of the Commission. Motion passed 3-0.
6. In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement in Dockets TC08-133 and TC08-134
Ms. Colleen Sevold, representing Qwest Corporation (Qwest) stated that Qwest had no comments. Ms. Kara Semmler stated that the amendments 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.
Vice Chairman Kolbeckmoved to approve the Amendments to the interconnection agreements in Dockets TC08-133 and TC08-134. Motion passed 3-0.
Ms. Terri LaBrie Baker stated that BullsEye Telecom (BullsEye) requested an extension from developing company specific cost based switched access rates. BullsEye has agreed to charge intrastate switched access rates equal to or less than that of the ILEC Qwest intrastate switched access rates, and therefore, will not have to come back for further extensions. Ms LaBrie Baker further stated that no intervenors have filed and staff recommended approving the exemption with the revised tariff sheets as filed.
Commissioner Hanson moved to grant the extension of the exemption from developing company specific cost based switched access rates to BullsEye Telecom in Docket TC08-136. Motion passed 3-0.
There being no further business, at the hour of 1:22 pm the South Dakota Public Utilities Commission Meeting adjourned. Next Commission meeting is scheduled for January 27, 2009.
/S/Demaris Axthelm____
Demaris Axthelm
Administrative Secretary
March 10, 2009
