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South Dakota Public Utilities Commission Meeting
August 11, 2009, at 9:30 A.M.
Room 413, Capitol Building
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Vice Chairman Steve Kolbeck called the meeting to order. Present were: 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 Attorney Kara Semmler; Staff Analysts Terri LaBrie Baker, Dave Jacobson, Tim Binder, Stacy Splittstoesser and Jon Thurber; and Administrative Secretary Demaris Axthelm.
Also present were: Dave Gerdes, May, Adam, Gerdes and Thompson, representing Northern States Power Company d/b/a Xcel Energy and Montana-Dakota Utilities Co.; Darla Rogers, Riter, Rogers, Wattier & Northrup, representing Roberts County Telephone Cooperative Assn., RC Communications, Inc., Cheyenne River Sioux Tribe Telephone Authority and Golden West Companies; Meredith Moore, Cutler and Donahoe, representing Alliance Communications Cooperative, Inc., Hills Telephone Company, Inc. and Splitrock Properties, Inc.; Bill VanCamp, Olinger, Lovald, McCahren and Reimers, representing A T & T Communications of the Midwest, Inc. and Cris Miller, Basin Electric Power Cooperative.
Joining the meeting by telephone were: Chairman Dustin Johnson; Suzan Stewart,, MidAmerican Energy Company; Tamie Aberle, Montana-Dakota Utilities Company; Ron Spangler, Otter Tail Power Company; Jim Cremer, Bantz, Gosch & Cremer LLC. representing, Northern Valley Communications, L.L.C; Kari Flanagan, Hills Telephone Company, Inc. and Splitrock Properties, Inc,; Talbot Wieczorek, Gunderson, Palmer, Goodsell and Nelson, representing RCC Minnesota, Inc.; George Thomson and Dean Martineau, Qwest Corporation; Gwen Davis, Golden West Companies; Kathy Ford, Knology Community Telephone, Inc. and Knology of the Black Hills, LLC; Steve Otto, RCC Minnesota, Inc.; Mary Sisak, Brookings Municipal Telephone d/b/a Swiftel Communications; and Laura Julius and Jim Atkins, Brookings Municipal Telephone d/b/a Swiftel Communications.
Administration
- Approval of the Minutes of the Commission Meeting Held on May 19, 2009. (Staff: Demaris Axthelm)
Commissioner Hanson moved to approve the Commission Minutes of the May 19, 2009. Motion passed 3-0.
Consumer Reports
- Status Report on Consumer Utility Inquiries and Complaints Received by the Commission. (Consumer Affairs: Deb Gregg)
Ms. Kara Semmler reported that the Commission had received a total of 59 contacts since the last report was prepared for the July 29, 2009 Commission meeting. 12 contacts involved telecommunications services; 10 contacts involved electrical services; 8 contacts involved natural gas service; 5 contacts involved cell phone services; 15 contacts involved the Do Not Call Registry; 1 contact was related to the Keystone XL Pipeline; 1 contact involved wind energy; and 7 contacts involved issues not regulated by the Public Utilities Commission. In 2009, 1,545 of the 1,606 complaints registered have been resolved.
Electric
Ms Semmler stated the rule making process is complete and withdrawal of the docket is simply a clean-up matter as companies are required to follow the Commission rules.
Commissioner Hanson moved to grant Otter Tail Power Company's request to withdraw the filing. Motion passed 3-0.
Ms Semmler stated the rule making process is complete and withdrawal of the docket is simply a clean-up matter as companies are required to follow the Commission rules.
Vice Chairman Kolbeck moved to grant NorthWestern Energy's request to withdraw the filing. Motion passed 3-0.
Mr. Dave Jacobson stated that there is a proposal on the Internet and filed in the docket regarding the rate case. Mr. Jacobson further asked the Commission for approval to authorize the Executive Director to hire consultants and enter into contracts with the consultants. Mr. Dave Gerdes representing Northern States Power Company d/b/a Xcel Energy (Xcel) stated that Xcel has no objection to the motion.
Chairman Johnson moved to authorize the Executive Director to hire consultants and enter into contracts with the consultants. Motion passed 3-0.
Ms. Tamie Aberle, Montana-Dakota Utilities Co. (MDU), explained MDU's filings of revisions to its Occasional Power Purchase Non-Time Differentiated Rate 95, Short-Term Power Purchase Time Differentiated Rate 96 and Long-Term Power Purchase Time Differentiated Rate 97 tariffs to reflect updates of the company's avoided costs and metering costs for qualifying co-generation and small power production facilities. Mr. Dave Jacobson stated that the cost calculations are consistent with what has been filed in the past years and asked that the Commission approve the tariff revisions.
Commissioner Hanson moved to approve the tariff revisions. Motion passed 3-0.
Mr. Ron Spangler, representing Otter Tail Power Company (OTP) stated that Valley Queen Cheese Factory no longer takes services under a contracted rate that deviates from OTP's tariff rate schedule and asked that Valley Queen Cheese Factory's contract be removed from OTP's summary list of contracts with deviations. Mr. Spangler further stated that Valley Queen Cheese factory is now are taking services under OTP's large general service time of day rate with an effective date of July 1, 2009. Mr. Tim Binder stated that Staff recommends approving the tariff revisions.
Chairman Johnson moved to approve the tariff revisions. Motion passed 3-0.
Mr. Ron Spangler, representing Otter Tail Power Company (OTP), briefed the Commission on a error made on OTP's brochures and asked that the Commission approve the updated customer rate schedule brochures. Mr. Jon Thurber stated that Staff recommends approving the updated customer rate schedule brochures.
Vice Chairman Kolbeck moved to approve the updated customer rate schedule brochures. Motion passed 3-0.
Mr. Cris Miller, Basin Electric Power Cooperative, Inc. (Basin Electric), stated that he would be willing to answer any questions. Ms. Heather Forney stated that the maximum filing fee assessment of $396,500 is based on the formulas in SDCL 49-41B-12 and the projected project cost of $393 million. Ms Forney further stated that at this point, we are only asking for the initial deposit of $8,000.
Chairman Johnson moved to assess a filing fee not to exceed $396,500 with an initial deposit of $8,000. Motion passed 3-0.
Hydrocarbon Pipeline
Mr. Cris Miller, Basin Electric Power Cooperative, Inc. (Basin), stated that he would be available to answer any questions. Ms. Heather Forney stated that the Commission is asking for a filing fee not to exceed the statutory maximum of $30,000, with an initial deposit of $8,000.
Commissioner Hanson moved to assess a filing fee not to exceed $30,000 with an initial deposit of $8,000. Motion passed 3-0.
Telecommunications
Mr. Bill Van Camp, representing AT&T Communications of the Midwest, Inc. (AT&T), stated that on August 4, 2009, AT&T filed a late Petition for Intervention however, there is an outstanding motion filed and that there are still issues that need to be resolved. Mr. Jim Cremer, representing Northern Valley Communications, L.L.C. (NVC), stated that NVC filed an objection to AT&T's petition to intervene and noted that the deadline was set at June 8, 2009. Mr. George Thompson of Qwest stated that they support AT&T's intervention. Mr. Dave Gerdes, representing Midcontinent Communications had no comments. Ms. Kara Semmler stated on behalf of Staff that AT&T's filing was late, but does not appear to prejudice NVC, and therefore Staff supports AT&T's intervention.
Chairman Johnson moved to grant intervention to AT&T Communications of the Midwest, Inc. Motion passed 3-0.
Mr. George Thomson, representing Qwest Corporation, stated that Qwest understands and has no problems with Staff's conclusion that Greenfly Networks, Inc. d/b/a/ Clearfly Communications, Inc. (Clearfly) does not have a Certificate of Authority to provide telecommunication services in South Dakota and supports Staff's decision to disapprove the interconnection agreement. Ms Kara Semmler stated that Clearfly does not have a Certificate of Authority to provide telecommunication and therefore recommends that the Commission disapprove the interconnection agreement.
Commissioner Hanson moved to disapprove the interconnection agreement. Motion passed 3-0.
3. In the Matter of the Request for Certification Regarding the Use of Federal Universal Service Support in Dockets TC09-046, TC09-047, TC09-048, TC09-051, TC09-052, TC09-053, TC09-055, TC09-056, TC09-057, TC09-059, TC09-060, TC09-061, TC09-064, TC09-066, TC09-067, TC09-071, TC09-072, and TC09-073
Vice Chairman Kolbeck stated that several of the following Dockets in Item 3 do contain confidential material. Therefore, Dockets will be taken one at a time and voted upon all together unless additional information is needed.
TC09-052 In the Matter of the Request of Roberts County Telephone Cooperative Association and RC Communications, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)
TC09-053 In the Matter of the Request of Cheyenne River Sioux Tribe Telephone Authority for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)
TC09-055 In the Matter of the Request of Armour Independent Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)
TC09-057 In the Matter of the Request of Golden West Telecommunications Cooperative, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)
TC09-059 In the Matter of the Request of Sioux Valley Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)
TC09-060 In the Matter of the Request of Union Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)
TC09-061 In the Matter of the Request of Vivian Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)
TC09-064 In the Matter of the Request of Farmers Mutual Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)
TC09-066 In the Matter of the Request of Red River Rural Telephone Association for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)
Docket TC09-071 was heard as confidential.
Commissioner Hanson moved to provide a certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the plan for the use of federal universal service support as proposed in Docket TC09-071. Motion passed 3-0.
TC09-072 In the Matter of the Request of the City of Brookings Municipal Telephone for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)
Vice Chairman Kolbeck moved to provide a certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the plan for the use of federal universal service support as proposed in Dockets TC09-046, TC09-047, TC09-048, TC09-051, TC09-052, TC09-053, TC09-055, TC09-056, TC09-057, TC09-059, TC09-060, TC09-061, TC09-064, TC09-066, TC09-067, and TC09-072, Motion passed 3-0.
Docket TC09-073 was heard as confidential.
Vice Chairman Kolbeck moved to provide a certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the plan for the use of federal universal service support as proposed in Docket TC09-073. Motion passed 3-0.
4. In the Matter of the Request for Certification Regarding the Use of Federal Universal Service Support in Dockets TC09-069 and TC09-070
TC09-070 In the Matter of the Request of Knology of the Black Hills, 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 Ms. Kathy Ford, Knology of the Black Hills, LLC and Knology Community Telephone, Inc (Knology) to explain to the Commission the rational of Knology's request for waiver from the requirement for a two-year detailed plan on a wire center basis. Ms. Kathy Ford stated that when Knology prepares a budget each year, it is prepared as a over all company budget and is not prepared nor are the company's books kept on a wire center by wire center basis.
Chairman Johnson moved in Docket TC09-069 to deny Knology Community Telephone, Inc.'s petition for waiver. Motion passed 3-0.
Chairman Johnson moved in Docket TC09-070 to deny Knology of the Black Hills, LLC's petition for waiver. Motion passed 3-0.
Vice Chairman Kolbeck moved to defer the certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the plan for the use of federal universal service support in Dockets TC09-069 and TC09-070. Motion passed 3-0.
5. TC09-074 In the Matter of the Request of Qwest Corporation for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)
Chairman Johnson asked Qwest if there was any way that Qwest could provide a greater level of detail in its submitted information so it could be of assistance to the Commission. Mr. George Thomson stated that he had a conversation with Mr. Jon Thurber of Staff and believes that Qwest can get there with regards to what the Commission desires. Mr. Thomson further stated that the Commission could go down to the wire center level and get the projected number spent in each of the wire centers. Mr. Thurber stated that the estimated amount of investment is a three year rolling average.
Commissioner Hanson moved to provide a certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the plan for the use of federal universal service support as proposed in Docket TC09-074 and that the commission provide a certification that Qwest is offering rates comparable to other carriers. Motion passed 3-0.
ADDENDUM TO THE
AGENDA OF COMMISSION MEETING
Electric
Ms. Suzan Stewart, representing MidAmerican Energy Company (MidAmerican), stated that MidAmerican is withdrawing its generator interconnection procedures filing of a year ago, in order to replace these procedures with the newly adopted rules. Ms. Kara Semmler of Staff had no comments.
Commissioner Hanson moved to grant the request to withdraw the filing. Motion passed 3-0.
Ms Semmler stated that the Commission's interconnection rule-making process is now complete, and withdrawal of the filing in this docket is simply a clean-up matter as companies are now required to follow the Commission's rules.
Vice Chairman Kolbeck moved to grant the request to withdraw the filing. Motion passed 3-0.
Pipeline Safety
Ms. Kara Semmler stated that the parties need more time to agree on procedure. Staff asked the Commission to grant a 90 day extension. Mr. Dave Gerdes, representing Montana-Dakota Utilities Co., agreed with Staff that the 90 day extension is needed.
Vice Chairman Kolbeck moved to grant the requested 90 day extension. Motion passed 3-0.
There being no further business, at the hour of 11:33 AM the South Dakota Public Utilities Commission Meeting adjourned. The next regularly scheduled Commission meeting is scheduled for August 25, 2009.
_/S/Demaris Axthelm____
Demaris Axthelm
Administrative Secretary
November 24, 2009
