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South Dakota Public Utilities Commission Meeting
March 24, 2009, at 9:30 A.M.
Room 413, Capitol Building
Pierre, South Dakota  

MINUTES OF THE COMMISSION MEETING

Chairman Dustin Johnson called the meeting to order.  Present were: Vice Chairman Steve Kolbeck; Commissioner Gary Hanson; Executive Director Patty Van Gerpen; Deputy Executive Director Heather Forney; Commission Advisor Greg Rislov; Commission Attorneys John Smith and Rolayne Wiest; Staff Attorneys Kara Semmler and Karen Cremer; Staff Analysts Terri LaBrie Baker, Dave Jacobson, Bob Knadle, Tim Binder, Brian Rounds and Jon Thurber; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Demaris Axthelm.

Also present were:  Brett Koenecke, May, Adam, Gerdes and Thompson, representing TransCanada Keystone, LP; Bill Van Camp, Olinger, Lovald, McCahren & Reimers PC, representing AT&T Communications of the Midwest; and Rich Coit, South Dakota Telecommunications Association.

Joining the meeting by telephone were:  Meredith Moore, Cutler and Donahoe, representing Reduced Rate Long Distance; Debbie Kutsunis, Rick Leuthauser, Diane Munns, Jennifer Moore, and Dick Walker, MidAmerican Energy Company; Tom Dixon, MCI Communications Services, Inc. d/b/a Verizon Business Services; Colleen Sevold, Qwest Corporation; and Gregory Garrelts, Norlight, Inc.

Consumer Reports

  1. 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 110 contacts since the last report was prepared for the March 10, 2009 Commission meeting. 44 contacts involved telecommunications services; 11 contacts involved electrical services; 5 contacts involved natural gas services, 4 contacts involved electrical and natural gas issues; 10 contacts involved cell phone services, 29 contacts involved the Do Not Call Registry, and 7 contacts involved issues not regulated by the Public Utilities Commission.   In 2009, 590 of the 658 complaints registered have been resolved informally.  In 2008, 2,510 of the 2,513 complaints registered have been resolved informally.   

Consumer Complaints

1.      CT07-001           In the Matter of the Complaint filed by Ingram Pest Service, Fort Pierre, South Dakota, against Reduced Rate Long Distance, LLC Regarding Unauthorized Long Distance Charges. (Staff Analyst: Deb Gregg, Staff Attorney: Kara Semmler)

2.   CT07-002           In the Matter of the Complaint filed by Black Hills Shooters Supply, Rapid City, South Dakota, against Reduced Rate Long Distance, LLC, Regarding Unauthorized Long Distance Charges. (Staff Analyst: Deb Gregg, Staff Attorney: Kara Semmler)  

3.      CT07-003           In the Matter of the Complaint filed by Patricia Byrne, Sioux Falls, South Dakota, against Reduced Rate Long Distance, LLC, Regarding Unauthorized Long Distance Charges.. (Staff Analyst: Deb Gregg, Staff Attorney: Kara Semmler)

4.     CT07-004         In the Matter of the Complaint filed by Hebron Brick/Dakota Masonry, Rapid City, South Dakota, against Reduced Rate Long Distance, LLC, Regarding Unauthorized Long Distance Charges. (Staff Analyst: Deb Gregg, Staff Attorney: Kara Semmler)

5.      CT07-005        In the Matter of the Complaint filed by Patrick Cassidy, Lead, South Dakota, against Reduced Rate Long Distance, LLC, Regarding Unauthorized Long Distance Charges. (Staff Analyst: Deb Gregg, Staff Attorney: Kara Semmler)

6.         CT08-001        the Matter of the Complaint filed by Chris Weber/Pico's Garage Inc., Sioux Falls, South Dakota, against Reduced Rate Long Distance, LLC, Regarding Unauthorized Long Distance Charges. (Staff Analyst: Deb Gregg, Staff Attorney: Kara Semmler)

            Chairman Johnson announced that Consumer complaints 1 thru 6 would be taken together.  Ms. Meredith Moore representing, Reduced Rate Long Distance (Reduced Rate) stated that Reduced Rate filed a motion to dismiss the six consumer complaint dockets.  Ms. Moore further stated the motions were filed after a settlement had been reached with each individual complainant and checks had been distributed, and Ms. Moore asked the Commission dismiss the complaints and close all referenced dockets. Ms Kara Semmler stated that all complainants are satisfied and have no objection to dismissing and closing all dockets.

            Commissioner Hanson moved to dismiss the complaints and close dockets CT07-001, CT07-002, CT07-003, CT07-004, CT07-005 and CT08-001.  Motion passed 3-0. 

Electric

1.         EL07-015        In the Matter of the Filing by MidAmerican Energy Company for Approval of its Proposed Energy Efficiency Plan for 2008. (Staff Analysts: Brian Rounds/Dave Jacobson/Bob Knadle, Staff Attorney: Karen Cremer)

            Mr. Rick Leuthauser, MidAmerican Energy Company (MidAmerican), stated that MidAmerican proposes to file an annual report with the Public Utilities Commission each year.  Mr. Leuthauser further stated that the annual report will detail the program's results of the previous calendar year and MidAmerican would lay out key challenges that would need to be implemented in the current year including more appropriate changes to participation and budget. Mr. Brian Rounds briefed the Commission on Staff's changes regarding MidAmerican's efficiency plan.  Mr. Rounds also briefed the Commission on the low income weatherization program and recommended that MidAmerican make one annual filing, rather than two.  Mr. Rounds recommended that the Commission approve MidAmerican's revised energy efficiency plan.

            Chairman Johnson moved to grant MidAmerican's energy efficiency plan with the condition that MidAmerican files its plan with the Commission annually for approval beginning March 1, 2010, and shall work with Staff to conduct a survey of the customers participating in the programs.  Motion passed 3-0.

Hydrocarbon Pipeline

1.   HP09-001        In the Matter of the Application by TransCanada Keystone, LP for a Permit under the South Dakota Energy Conversion and Transmission Facility Act to Construct the Keystone XL Project. (Staff Analysts: Bob Knadle/Nathan Solem/Stacy Splittstoesser/Tim Binder, Staff Attorney: Kara Semmler)

            Ms. Kara Semmler stated that Staff proposes to assess the statutorily assigned fee of $8,000.  Ms. Semmler further stated that proposals have been sent to hire environmental, socioeconomic and engineering consultant firms to help with the evaluations within this docket.  Mr. Brett Koenecke stated TransCanada Keystone Pipeline had no objection to the assessment and that he had in his possession a check made out to the South Dakota Public Utilities Commission in the amount of $8,000 that he would drop off at the PUC office.  Mr. Koenecke further stated that TransCanada has no position on staff hiring outside experts. 

            Vice Chairman Kolbeck moved to assess a filing fee not to exceed $660,700 with an initial deposit of $8,000.  Motion passed 3-0.

            Chairman Johnson moved to authorize the executive director to hire consultants and enter into contracts with the consultants after having given all parties 5 business days notice prior to doing so.  Motion passed 3-0.

Pipeline Safety

1.          PS07-001        In the Matter of the Filing by Montana-Dakota Utilities Co., a Division of MDU Resources Group, Inc. for Approval of Waiver (Staff Analysts: Nathan Solem, Staff Attorney: Kara Semmler)

            Ms. Kara Semmler stated that the Commission entered an order approving a partial waiver on November 12, 2008.  Ms. Semmler further stated that on March 13, 2009, Staff received a letter from PHMSA recommending an additional condition to the originally approved conditions to require Montana-Dakota Utilities Co to incorporate additional training relative to atmospheric corrosion evaluation for leak survey technicians responsible for functions of its requested waiver.  Ms. Semmler stated that Staff recommends adopting PHMSA's recommendations. 

            Vice Chairman Kolbeck moved to grant the motion to amend the Commission's order to add an additional condition that requires Montana-Dakota Utilities Co to incorporate additional training relative to atmospheric corrosion evaluation for leak survey technicians responsible for functions of its requested waiver.  Motion passed. 3-0.

Rulemaking

1.         RM09-001       In the Matter of the Adoption of Rules Regarding Pipeline Safety.  (Staff Analysts: Nathan Solem/Stacy Splittstoesser, Staff Attorney: Kara Semmler)

          Ms. Kara Semmler stated that after Staff drafted its proposed rules to open up a rulemaking docket, Staff communicated with Pipeline Operators giving all parties a chance to comment.  Ms. Semmler further stated that Staff received considerable feedback and significant comments, some of these comments were incorporated and others were not. Therefore, Ms Semmler suggested that the Commission have a chance to review all comments before the Commission decides on its formal rulemaking proposed rules. Ms. Semmler then proposed that the Commission allow a 30 day formal comment period for operators and a 10 day staff reply opportunity prior to the scheduling of a hearing mid-summer 2009.

            Chairman Johnson moved to open a rulemaking docket with a 30 day formal comment period for operators and a 10 day staff reply opportunity prior to the scheduling of a hearing mid-summer 2009.  Motion passed 3-0.

Telecommunications

1.         TC08-127      In the Matter of the Application of Qwest Corporation to Modify the Jurisdictional Report Requirements in Section 2 by Establishing a Percent Interstate Usage (PIU) Floor for Unidentified Feature Group D (FGD) Terminating Traffic. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)

            Mr. Tom Dixon, representing MCI Communications Services, Inc. d/b/a Verizon Business Services (Verizon) stated that the parties have been doing discovery in other states where this similar matter is pending. Mr. Dixon asked that the Commission extend the suspension period for an additional 60 days and asked that the Commission direct Staff and Parties to establish a procedural schedule. Ms. Colleen Sevold, representing Qwest Corporation (Qwest) stated that Qwest had no comments on the request. Ms. Karen Cremer stated that Staff recommends granting the motion to extend the suspension and to order the parties to develop a procedural schedule. Ms Cremer further stated that AT&T had no objection to the motion to extend. Mr. Rich Coit, representing South Dakota Telecommunications Association and speaking on behalf of Local Exchange Carriers Association had no objection to the further extension.

            Commissioner Hanson moved to grant the Motion to Extend Suspension for an additional 60 days and to direct the parties to develop a procedural schedule by April 1, 2009.  Motion passed 3-0.

2.         TC09-006        In the Matter of the Filing for Approval of an Interconnection Agreement between Qwest Corporation and DSLnet Communications, LLC n/k/a MegaPath, Inc.  (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.

            Chairman Johnson moved to approve the Interconnection Agreement.  Motion passed 3-0.

3.         TC09-007        In the Matter of the Application of EnTelegent Solutions, Inc. for a Certificate of Authority to Provide Interexchange Telecommunications Services and Local Exchange Services in South Dakota. (Staff Analyst: Tim Binder, Staff Attorney: Karen Cremer)

            Mr. Tim Binder stated that on February 24, 2009, EnTelegent Solutions, Inc.(Entelegent) filed for a Certificate of Authority to Provide Interexchange Telecommunications Services and Local Exchange Services in South Dakota. Mr. Binder further stated that EnTelegent intends to offer these services in existing Qwest territories throughout the state. Mr. Binder recommended that the Commission grant a certificate of authority to Entelegent, subject to the conditions that no prepaid services are offered and deposits are not required or accepted without prior approval of the Commission, and that the certificate of authority be subject to rural safeguards.

            Vice Chairman Kolbeck moved to grant EnTelegent Solution, Inc. a certificate of authority to offer local exchange services in South Dakota, except in those areas served by a rural telephone company and to grant a Certificate of Authority to EnTelegent Solution, Inc. to provide interexchange telecommunications services and local exchange services within the exchanges served by Qwest Corporation, subject to the condition that EnTelegent Solution, Inc. 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. Motion passed 3-0.

4.         TC09-008        In the Matter of the Application of Norlight, Inc. for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Tim Binder, Staff Attorney: Kara Semmler)

            Mr. Tim Binder stated that on February 25, 2009, Norlight, Inc. filed for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. Mr. Binder further stated that Norlight, intends to offer these services in existing Qwest territories throughout the state.  Mr. Binder recommended that the Commission grant a certificate of authority to Norlight Inc., subject to the conditions that it offer no prepaid services (including prepaid calling cards) and Norlight not accept or require any deposits or advance payments without prior approval of the Commission. Mr. Gregory Garrelts, representing Norlight, Inc stated that Norlight had no comments.

            Commissioner Hanson moved to grant Norlight, Inc. a certificate of authority to provide interexchange telecommunications services, subject to the condition that Norlight, Inc. 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.  Motion passed 3-0.

There being no further business, at the hour of 11:42 A.M. the South Dakota Public Utilities Commission Meeting adjourned. Next Commission meeting is scheduled for April 7, 2009.

 

/S/ Demaris Axthelm_______.
Demaris Axthelm
Administrative Secretary
May 19, 2009