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South Dakota Public Utilities Commission Meeting
July 29, 2009 at 9:30 AM.
Room 413, Capitol Building
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Chairman Dusty Johnson called the meeting to order. Present were: 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, Bob Knadle, Jon Thurber, Stacy Splittstoesser and Dave Jacobson; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretaries Demaris Axthelm and Anissa Grambihler.
Also present were: Margo Northrup, Riter, Rogers, Wattier & Northrup, representing Venture Communications Cooperative, Western Telephone Company, Tri-County Telcom, Inc., RT Communications, West River Telecommunications Cooperative (Mobridge), Valley Telecommunications Cooperative Association, Inc., McCook Cooperative Telephone Company and Kadoka Telephone Company; and Rich Coit, South Dakota Telecommunications Association.
Joining the meeting by telephone were: Commissioners Steve Kolbeck and Gary Hanson; Kenna Hagen, Sara Williamson, Jim Keck and Chris Kilpatrick, Black Hills Power; Suzan Stewart, Rich Singer, Brian Wiese, Megan Early, Diane Noll and Melanie Acord, MidAmerican Energy Company; Jerry Reisenauer, West River Cooperative; Jason Hendricks, RT Communications Inc.; Albert (Mick) Grosz and Wayne Lemer, West River Telecommunications Cooperative; Greg Hart, Jefferson Telephone Company; Jim Cremer, Bantz, Gosch & Cremer, representing James Valley Wireless, LLC and James Valley Cooperative Telephone; Mark Benton, Midstate Telecom Inc., and Midstate Communications, Inc.; Ryan Taylor, Cutler & Donahoe, representing Midstate Telecom, Inc., and Midstate Communications Inc.; Ryan Thompson, Santel Communications Cooperative; Denny Law, Kadoka Telephone Company; Dave Prazak and Dean Polousky, Otter Tail Power Company; and Todd Hansen, Beresford Municipal Telephone Company.
Administration
Approval of the Minutes of the Commission Meeting held on May 5, 2009. (Staff: Demaris Axthelm)
Commissioner Hanson moved to approve the Commission Minutes of the May 5, 2009, meeting. 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 received a total of 83 contacts since the last report was prepared for the July 14, 2009, commission meeting. 24 contacts involved telecommunications services; 22 contacts involved electrical services; 8 contacts involved natural gas services; 2 contacts involved electrical and natural gas issues; 1 contact involved cell phone services; 12 contacts involved the Do Not Call Registry; 2 contacts involved the Keystone Pipeline; 3 contacts involved wind energy and 9 contacts involved issues not regulated by the Public Utilities Commission. In 2009, 1,495 of the 1,547 complaints registered have been resolved informally. In 2008, all of the 2,513 complaints registered have been closed.
Chairman Johnson stated that the Rulemaking Docket will be moved to the last item of the agenda.
Electric
Mr. Chris Kilpatrick, Black Hills Power, requested the Commission approve the sample forms and accept them into the tariff. Mr. Bob Knadle, Staff Analyst, recommended approval, with an effective date for service for August 1, 2009.
Commissioner Kolbeck moved to approve the tariff revision with an effective date of August 1, 2009. Motion passed 3-0.
Ms. Megan Early, MidAmerican Energy Company, stated the company requested approval to permanently allow the inclusion of hedging costs and benefits associated with specific fuels in its electric energy cost adjustment. Ms. Early also stated MidAmerican consumes a significant amount of fuel during start-ups and for flame stabilization at its generation facilities. Additionally, MidAmerican has a large volume of transportation contracts, which have fuel adjustment clauses. Ms. Early further stated fuel prices can be very volatile; having the ability to hedge a portion of fuel needs would reduce price instability for the consumer. Mr. Bob Knadle, Staff Analyst, stated Staff recommended approval of the revisions to the tariff sheet, subject to the following conditions: (i) the proposed changes in the fuel adjustment clause are effective on and after August 1, 2009, and the company credit the fuel adjustment clause with amounts already reflected in prior monthly fuel adjustment clause filings and recovered from customers; (ii) MidAmerican shall submit an annual report as outlined on pages five and six of the filing and also include a cost/benefit analysis; (iii) MidAmerican shall follow its Risk Management Policy; and (iv) that the Commission retains the ability to terminate MidAmerican's authority to pass through costs associated with the filing at any time provided it gives MidAmerican at least a three month notice. Ms. Early stated MidAmerican is agreeable to the recommendations.
Chairman Johnson moved that the Commission approve changes in the fuel adjustment clause rider tariff with the following conditions; (i) an effective date on and after August 1, 2009, and the company credit the fuel adjustment clause with amounts already reflected in prior monthly fuel adjustment clause filings and recovered from customers; (ii) MidAmerican shall submit an annual report as outlined on pages five and six of the filing and also include a cost/benefit analysis; (iii) MidAmerican shall follow its Risk Management Policy; and (iv) the Commission retains the ability to terminate MidAmerican's authority to pass through costs associated with the filing at any time provided it gives MidAmerican at least a three month notice. Motion passed 3-0.
Natural Gas
Ms. Melanie Acord, MidAmerican, stated MidAmerican requested cancellation of two services that expired April 30, 2009, and was replaced by a permanent monthly metered transportation service and that MidAmerican opted to retain the pilot tariffs until completion of the transition and is requesting cancellation of the pilot tariffs. Mr. David Jacobson, Staff Analyst, stated Staff recommended approval with an effective date of July 15, 2009.
Chairman Johnson moved to approve the tariff revision with an effective date of July 15, 2009. Motion passed 3-0.
Telecommunications
1. In the Matter of the Request for Certification Regarding the Use of Federal Universal Service Support in Dockets TC09-030, TC09-033, TC09-034, TC09-035, TC09-036, TC09-037, TC09-038, TC09-039, TC09-040, TC09-044, TC09-045, TC09-049, TC09-050, TC09-054, TC09-058, and TC09-062
TC09-037 In the Matter of the Request of West River Telecommunications Cooperative (Mobridge) for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)
TC09-044 In the Matter of the Request of James Valley Wireless, LLC for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)
Chairman Johnson asked if there were any objections to the Commission taking up Dockets TC09-030, TC09-033, TC09-034, TC09-035, TC09-036, TC09-037, TC09-038, TC09-039, TC09-040, TC09-044, TC09-045, TC09-049, TC09-050, TC09-054, TC09-058, and TC09-062 together. Hearing no objections, the above dockets were taken together.
In Docket TC09-050, Chairman Johnson requested the company explain the difference in its request for capital improvement dollars this year from the amount requested in previous years. Mr. Ryan Taylor, representing Midstate Telecom, stated that the construction had been momentarily placed on hold as the company is in the application process for ARRA Broadband Stimulus Funds. Mr. Taylor continued by stating that the company also intends to install more towers, and a local switching support to improve its support service and to fill its request for voice service to its customers.
Chairman Johnson suggested to the companies that when projecting their capital investments they should also include what those capital investments are and to indicate where the company is in regards to filling the unresolved requests for service. He noted the company may consider resale as an option in order to fill its obligations. Chairman Johnson further stated additional details of capital investments would help the Commission understand a company's progress towards servicing the entire exchange service area.
Mr. Jon Thurber, Staff Analyst, stated that Staff has reviewed the filings and recommended that the Commission grant the requests for certification and issue certification letters to the FCC and the USAC.
Commissioner Hanson moved to certify the use of USF funds and issue certification
letters in Dockets TC09-030, TC09-033, TC09-034, TC09-035, TC09-036, TC09-037, TC09-038,
TC09-039, TC09-040, TC09-044, TC09-045, TC09-049, TC09-050, TC09-054, TC09-058, and
TC09-062. Motion passed 3-0
Rulemaking
Chairman Johnson asked if there were any objections to the Commission taking up small generator interconnection form by form, as comments were received by NorthWestern, Otter Tail Power, Black Hills Power and Environmental Law & Policy Center. Hearing no objections, the Commission proceeded with the small generator interconnection forms.
Chairman Johnson moved the Commission adopt the following changes to Form 1: (a) on page 1, in the title of the first paragraph, add "/Interconnection Customer" after the word "Applicant"; (b) on page 3, the last line under "For Synchronous Machines," change "(X'd)" to (X"d)"; and (c) on page 4, under "Other Facility Information," after "If yes, has Applicant completed FERC's ‘Notice of Self Certification'," add "Verification Number Received from FERC: __________"; Motion passed 3-0.
Commissioner Kolbeck moved the Commission adopt Form 2, with the following changes: (a) on page 2, paragraph 5, delete the words "In cases where no upgrades are required," capitalize the T on "the," and add the following to the end of the sentence: "under the process prescribed in the Commission's rules, ARSD 20:10:36"; (b) on page 2, paragraph 6, add the following to the end of the paragraph: "ARSD Chapter 20:10:36"; (c) on page 3, section 2, in the fourth paragraph, delete the words "ring bus"; (d) on page 3, section 2, above the fifth paragraph, add "Number of generators: __________"; (e) on page 3, twelfth paragraph, add "s" to the word "length"; and (f) on page 4, first paragraph, delete "distribution lines," and replace with "interconnection facilities." Motion passed 3-0.
Chairman Johnson moved the Commission adopt revised Form 3, with the following changes: (a) on page 2, add the following to the end of paragraph 6: "under the process prescribed in the Commission's rules, ARSD chapter 20:10:36"; and (b) adopt all of the recommended changes made by Black Hills Power. Motion passed 3-0.
Commissioner Hanson moved the Commission adopt Form 4. Motion passed 3-0.
Commissioner Kolbeck moved the Commission adopt Form 5 with all of the recommended changes made by Otter Tail Power, Black Hills Power and Environmental Law & Policy Center. Motion passed 3-0.
Chairman Johnson moved the Commission adopt the following changes in Form 6: (a) that at the option of the utility or applicant, they may decide whether they want attachments to be included as recommended by OTP; (b) on page 3, paragraph 2.2, Right of Access, at the end of the paragraph, add "at no cost"; (c) adopt all of the recommended changes made by ELPC with reference to Article 4 and Article 7; (d) on page 6, paragraph 5.4, Consequential Damages, at the beginning of the paragraph, add "With the exception of third party claims," and change "N" in Neither to "n"; (e) on page 7, Article 6, Insurance, at the end of the paragraph, add the specific rule; (f) on page 11, paragraph 9.2, Designated Operating Representative, in the last line of the first paragraph, delete "9.2" and insert "9"; and (g) add language to the agreement stating the operation and maintenance schedule must be attached to the agreement and add wording that indicates that the interconnecter must adhere to that schedule. Motion passed 3-0.
Mr. Dave Prazak, Otter Tail Power, stated the general comments were addressed and the discussion helped balance out the comments and is pleased where the forms are at this time.
Ms. Rolayne Wiest, Commission Attorney, recommended to the Commission that it use the MISO form as a template for the "System Impact Study Agreement." The Commission would then post the new form for comments or suggested changes, but the Commission could go ahead with the other forms as discussed.
Chairman Johnson moved to authorize Staff to develop a "System Impact Study Agreement" form using the MISO version as a template and to bring forth to the Commission for approval. Motion passed 3-0.
There being no further business, at the hour of 11:10 am the South Dakota Public Utilities Commission Meeting adjourned. The next Commission meeting is scheduled for August 11, 2009.
/S/Anissa Grambihler
Anissa Grambihler
Administrative Secretary
September 22, 2009
