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South Dakota Public Utilities Commission Meeting
June 9, 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, Nathan Solem, Stacy Splittstoesser and Jon Thurber; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Demaris Axthelm.
Also present were: Dave Gerdes, May, Adam, Gerdes and Thompson, representing Verizon Business Network Services, Inc. and Montana-Dakota Utilities; Margo Northrup and LeRae Hancock, Riter, Rogers, Wattier & Northrup, representing RC Communications, Inc.; Rich Coit, South Dakota Telecommunications Association; and Melissa Baruth, NorthWestern Energy.
Joining the meeting by telephone were: Meredith Moore, Cutler and Donahoe, representing Orbit Com, Inc.; Brad Howard, Suzan Stewart and Katherine Kunert, MidAmerican Energy Company; Don Ball, Montana-Dakota Utilities; Mary Ann Allen, AT&T Communications of the Midwest, Inc.; Talbot Wieczorek, Gunderson, Palmer, Goodsell and Nelson, representing Wireless Alliance, LLC d/b/a Unicel; George Thomson and Dave Ziegler, Qwest Corporation; Pam Bonrud and Sara Dannen, NorthWestern Energy; Brett Koenecke, May, Adam, Gerdes and Thompson, representing TransCanada Keystone; Dave Prazak, Otter Tail Power Company; and John Chow, Jim Wilcox and Phil Zins, Xcel Energy.
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 141 contacts since the last report was prepared for the May 19, 2009 Commission meeting. 29 contacts involved telecommunications services; 31 contacts involved electrical services; 8 contacts involved natural gas service, 3 contacts involved electrical and gas issues; 19 contacts involved cell phone services; 26 contacts involved the Do Not Call Registry; 1 contact was related to the Keystone XL Pipeline; 1 contact involved wind energy; 1 contact involved the Grain Warehouse Division; and 22 contacts involved issues not regulated by the Public Utilities Commission. In 2009, 1,190 of the 1,249 complaints registered have been resolved informally. In 2008, 2,512 of the 2,513 complaints registered have been resolved informally.
Electric
Mr. Jim Wilcox requested approval of this filing on behalf of Xcel Energy (Xcel). Mr. Jon Thurber stated the decrease in energy payment for both the Occasional Delivery Energy Service and Time of Delivery Energy Service was primarily driven by lower natural gas fuel cost and the increase in capacity payment for firm power was due to the increase in cost of a planned combustion turbine unit. Mr. Thurber further stated there was no change in the monthly metering fee, and there are currently two customers on the Occasional Delivery Energy Service and no customers on the Time of Delivery Energy Service Rate. Staff recommended approving the tariff revisions.
Commissioner Hanson moved to approve the Revised Rate sheets. Motion passed 3-0.
Chairman Johnson announced that Docket EL09-005 would be deferred.
Mr. Dave Jacobson stated that this is a continuation of the cleanup of the contracts with deviations for the various cities served by Otter Tail Power Company. Mr. Jacobson further stated that this is for the city of Roslyn, and that upon the expiration of the contract the city diverted to the normal tariff rate. Mr. Jacobson noted that this would clean up and delete the contract from Otter Tail Power Company's tariff page.
Vice Chairman Kolbeck moved to approve the Tariff Revisions. Motion passed 3-0.
Hydrocarbon Pipeline
Ms. Kara Semmler suggested the Commission grant the Motion to Establish a Procedural Schedule. Ms. Semmler further stated Staff has not received any comments regarding the Motion to Establish a Procedural Schedule, but if the Commission wanted to wait until the end of June, Commission counsel would be able to handle any comments that may come in via a conference call. Mr. Brett Koenecke stated TransCanada Keystone has no issues with Staff's proposed procedural schedule and asked the Commission adopt the schedule. Ms. Kara Semmler stated no action would be necessary on Staff's proposed Consulting Contract, given that authority has previously been given to the Executive Director to enter into the contract. Chairman Johnson noted this matter would be taken care of with the original order.
Vice Chairman Kolbeck moved to grant the Motion to Establish a Procedural Schedule. Motion passed 3-0.
Mr. Brett Koenecke stated TransCanada Keystone has no opposition to either intervention petition. Ms. Kara Semmler stated Staff has no objection.
Commissioner Gary Hanson moved to grant party status to Ruth M. Iverson and Martin R. Lueck. Motion passed 3-0.
Natural Gas
Ms. Suzan Stewart stated that this is MidAmerican's annual filing with the Commission on 50/50 sharing of its Economic Development report between the company and customers. Mr. Jon Thurber stated that Staff has reviewed the 2008 actual expenditures and Staff compared it to the 2008 Commission approved budget. MidAmerican did not meet the Business Attraction Incentives spending goal due to the increase in Staffing expenditures. Mr. Thurber further stated that the 2009 proposed budget is slightly different from the 2008 budget in that it includes a full year of staffing in the budget. As a result, the budget for Economic Assistance Programs and Business Attraction Incentives were reduced. Staff recommended approving the 2008 Economic Development Report and the 2009 Economic Development Plan.
Commissioner Hanson moved to approve MidAmerican Energy Company's 2008 Economic Development Report and the 2009 Economic Development Plan. Motion passed 3-0.
Pipeline Safety
Chairman Johnson stated the first question to be answered in this Docket would be if Staff hasparty status. Mr. Dave Gerdes argued Commission Staff is not the real party of interest and thus does not have standing. As a result, he argues the filing should be dismissed. Staff disagreed and argued statutory interpretation is an appropriate question for Staff and resisted Mr. Gerdes' Motion. After additional discussion, the Commission agreed Staff is a real party in interest. The second question for the Commission dealt with procedural issues. Although Commission Staff, in a written submission prior to the meeting, agreed to extend the decision timeframe, Staff does not believe it misread or misinterpreted the Declaratory Ruling Statute as Mr. Gerdes and Ms. Dannen suggest. The Statute calls for a Commission decision within sixty days. Without a request for extension of said timeframe, Staff simply scheduled the issue for Commission decision. Based on party agreement, a motion was made to extend the decision timeframe.
Chairman Johnson moved that Party Status be granted to Commission Staff. Motion passed 3-0.
Chairman Johnson moved that the timeline be extended for 60 days and that the parties develop a procedural schedule using the 60 days as a basis. Motion passed 3-0.
Telecommunications
Ms. Meredith Moore, representing OrbitCom stated that all parties participated with Staff's attorney Ms. Karen Cremer in developing a procedural schedule and all parties are in agreement with the procedural schedule. Ms Moore further asked that the Commission approve the procedural schedule. Mr. Dave Gerdes, representing Verizon Business Network Services, agreed with Ms. Moore's comments. Ms. Karen Cremer stated that Staff recommends approving the procedural schedule.
Vice Chairman Kolbeck moved to approve the Procedural Schedule. Motion passed 3-0.
Mr. Tim Binder stated on March 26, 2009, Broadvox-CLEC, LLC (Broadvox) filed an application for a certificate of authority to provide interexchange telecommunications services and local exchange services in South Dakota. Mr. Binder further stated that Broadvox proposes to offer services to residential and commercial customers in existing Qwest territories. Mr. Binder recommended granting a certificate of authority to Broadvox-CLEC, LLC, subject to the conditions that no prepaid services are offered and deposits are not required nor accepted without prior approval of the Commission, and that the certificate of authority be subject to rural safeguards.
Chairman Johnson moved to grant a Certificate of authority to Broadvox-CLEC, LLC to provide interexchange telecommunications services and local exchange services within the exchanges served by Qwest Corporation, subject to the condition that Broadvox 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 and that the Commission shall authorize Broadvox to offer its local exchange services in South Dakota, except in those areas served by a rural telephone company. Motion passed 3-0.
Ms. Terri LaBrie Baker stated that on April 6, 2009, CVC CLEC, LLC (CVC) filed an application for a Certificate of Authority to provide interexchange telecommunications services and local exchange services in South Dakota and that CVC has requested a waiver from ARSD 20:10:32:03(12) and ARSD 20:10:24:02(9) from submitting financial statements as this is a new company. Ms. LaBrie Baker further stated that CVC intends to offer these services in existing Qwest territories throughout the state. Ms. LaBrie Baker recommended that the Commission grant a certificate of authority to CVC, 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 a Certificate of Authority to CVC CLEC, LLC. to provide interexchange telecommunications services and local exchange services, subject to the condition that CVC 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, and shall authorize CVC to offer its local exchange services in South Dakota, except in those areas served by a rural telephone company, and that the Commission waives ARSD 20:10:24:02(9) and ARSD 20:10:32:03(12). Motion passed 3-0.
Mr. George Thomson stated that Qwest filed the tariff revisions to give Qwest the ability to respond to natural disasters. Mr. Thomson then briefed the Commission on challenges that Qwest has encountered with natural disasters. Ms. Terri LaBrie Baker stated that Staff has no objection to Qwest's tariff revisions.
Vice Chairman Kolbeck moved to approve the tariff revisions. Motion passed 3-0.
Mr. Talbot Wieczorek, representing Wireless Alliance, LLC d/b/a Unicel, stated that the filing is to relinquish ETC status for Wireless Alliance. Ms. Terri LaBrie Baker stated that Wireless Alliance has filed according to administrative rules, there were no intervernors in this matter and Staff recommends granting the relinquishment of Wireless Alliance's eligible telecommunications carrier designation.
Chairman Johnson moved to grant the Relinquishment of Eligible Telecommunications Carrier Designation effective August 1, 2009, or 45 days from the date Wireless Alliance, LLC. sends a letter to its customers regarding this relinquishment, whichever occurs first. Motion passed 3-0.
Ms. Mary Ann Allen, representing AT&T Communications of the Midwest, Inc., asked that the Commission approve the tariff revisions. Mr. Jon Thurber stated the tariff filing sets forth the written documentation necessary to support a billing dispute claim for Dedicated Access and Switched Access services and that Staff recommends approving the tariff revisions with an effective date of June 10, 2009.
Commissioner Hanson moved to approve the Tariff Revisions with an effective date of June 10, 2009. Motion passed 3-0.
Mr. Dave Gerdes, representing Midcontinent Communication, stated that Midcontinent does compete with RC Communications, Inc. and therefore seeks intervention. Ms. Margo Northrup, representing RC Communications, Inc, had no objection to the Petition to Intervene filed by Midcontinent. Ms. Karen Cremer stated that Staff recommends granting Intervention to Midcontinent.
Chairman Johnson moved to grant Intervention to Midcontinent Communications. Motion passed 3-0.
ADDENDUM TO THE
AGENDA OF COMMISSION MEETING
Electric
Mr. Dave Prazak briefed the Commission on two clarification comments. First, the Company and Customer iare in continuing negotiating on contract renewal thus the need for the request for a 30 day extension of the agreement and the second item stated by Mr. Prazak was that Otter Tail Power Company (Otter Tail) would know by the end of the week as to whether the electric service agreement would be continued. Mr. Jacobson stated that if the Commission does approve the filing it would be for less than 30 days notice and if another agreement is reached with Otter Tail for the ongoing provision of service that it also would be filed for approval at the next Commission meeting with less than 30 days notice. Mr. Jacobson stated that Staff recommends granting the Extension of an Electric Service Agreement until June 30, 2009.
Chairman Johnson moved to Grant the Extension of an Electric Service Agreement until June 30, 2009 with less than 30 days notice. Motion passed 3-0.
There being no further business, at the hour of 11:06 AM the South Dakota Public Utilities Commission Meeting adjourned. Next Commission meeting is scheduled for June 23, 2009.
/S/Demaris Axthelm____
Demaris Axthelm
Administrative Secretary
September 22, 2009
