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South Dakota Public Utilities Commission Meeting
August 25, 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: Commissioner Steve Kolbeck; 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, and Jon Thurber; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Anissa Grambihler.

Also present were:  Darla Rogers, Riter, Rogers, Wattier & Northrup, representing City of Faith Municipal Telephone Company, Midstate Telecom, Inc. and RC Communications, Inc.; Dave Gerdes, May, Adam, Gerdes and Thompson, representing Midcontinent Communications and Verizon Business Network Services, Inc.:Dan Nelson and Mary Lohnes, Midcontinent Communications; Bill VanCamp, Olinger, Lovald, McCahren and Reimers, representing AT&T Communications of the Midwest, Inc.; and Casey Jacobson, Basin Electric Power Cooperative.

Joining the meeting by telephone were:  Commissioner Gary Hanson; Jim Wilcox, Xcel Energy; Tamie Aberle, Montana-Dakota Utilities Co.; Tom Dixon, Leslie Freet and Richard Severy, Verizon Business Network Services, Inc.; Mark Benton, Midstate Telecom, Inc.; Meredith Moore, Cutler and Donahoe, representing SSTelecom, Inc and OrbitCom, Inc.; Jim Cremer, Bantz, Gosch & Cremer LLC, representing Northern Valley Communications, L.L.C.; George Thomson and Dave Ziegler,, Qwest Corporation; Chris Madsen, Boyce, Greenfield, Pashby & Welk, LLP, representing Qwest Corporation; Talbot Wieczorek, Gunderson, Palmer, Goodsell and Nelson, representing WWC License LLC d/b/a Alltel Communications, LLC; and Cindy Grosvenor, Consortia Consulting.

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 46 contacts since the last report was prepared for the August 11, 2009 Commission meeting. 19 contacts involved telecommunications services; 10 contacts involved electrical services; 1 contact involved natural gas service; 1 contact involved gas and electric service, 2 contacts involved cell phone services; 8 contacts involved the Do Not Call Registry; and 5 contacts involved issues not regulated by the Public Utilities Commission.   In 2009, 1,592 of the 1,652 complaints registered have been resolved

Electric

1.      EL07-027       In the Matter of the Filing by Xcel Energy for Approval of its Tariff Revisions and Distributed Generation Interconnection Manual. (Staff Analyst: Nathan Solem, Staff Attorney: Kara Semmler)

         Mr. Jim Wilcox stated that the filing was made prior to the completion of the interconnection rules and asked that the Commission grant Xcel Energy's request to withdraw the filing.  Ms Kara Semmler stated that Staff had no additional comments.

         Vice Chairman Kolbeck moved to grant Xcel Energy's request to withdraw the filing.  Motion passed 3-0.

Telecommunications

1.      In the Matter of an Extension of an Exemption from Developing Company Specific Cost-Based Switched Access Rates in Dockets TC09-009, TC09-014, TC09-022 and TC09-031

         TC09-009        In the Matter of the Filing by Midstate Telecom, Inc. for an Extension of an Exemption from Developing Company Specific Cost-Based Switched Access Rates. (Staff Analyst: Jon Thurber, Staff Attorney: Karen Cremer)

         TC09-014        In the Matter of the Filing by SSTELECOM, Inc. for an Extension of an Exemption from Developing Company Specific Cost-Based Switched Access Rates. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Karen Cremer)

         TC09-022        In the Matter of the Filing by RC Communications, Inc. for an Extension of an Exemption from Developing Company Specific Cost-Based Switched Access Rates. (Staff Analyst: Tim Binder, Staff Attorney: Karen Cremer)

         TC09-031        In the Matter of the Filing by Northern Valley Communications, L.L.C. for an Extension of an Exemption from Developing Company Specific Cost-Based Switched Access Rates. (Staff Analysts: Tim Binder and Jon Thurber, Staff Attorney: Karen Cremer)

            Mr. Dave Gerdes, representing Midcontinent Communications (Midcontinent) stated that Midcontinent filed a motion in all four dockets asking for an evidentiary hearing and for the Commission to establish a procedural schedule to determine whether all CLECs, should adopt the incumbent rate.  Mr. Gerdes further stated that this has been an announced goal of Staff and believes that Midcontinent has been harmed, has been treated differently than other CLEC's and has been required to utilize the incumbent's rate where others have been able to charge a higher rate.  Mr. Chris Madsen, representing Qwest Corporation (Qwest), stated that Qwest filed a Joinder in Midcontinent's Motion for Uniformity in Switched Access Rates. Mr. Bill VanCamp, representing AT&T, stated that AT&T, as an IXC, supports Midcontinent's Motion and the request for an evidentiary hearing.  Ms. Meredith Moore stated on behalf of all the CLEC's and as noted in their filed responses that they object to Midcontinent's Motion as well as the joinder by both Qwest and AT&T.  Mr. Jim Cremer, representing Northern Valley Communications, encouraged the Commission to deny Micontinent's Motion.  Ms. Darla Rogers representing Midstate Telecom, Inc. and RC Communications, Inc. concurred with Mr. Cremer and Ms. Moore in requesting that the Commission not support the request for an evidentiary hearing in the above referenced dockets.  Ms. Karen Cremer of staff stated that this is a legal issue and that there are no facts to be found, and therefore Staff recommended denying the motion for an evidentiary hearing. 

            Chairman Johnson moved to deny the Motion for Uniformity in Switched Access Rates and for Evidentiary Hearing.  Motion passed 3-0.

2.      In the Matter of the Request for Certification Regarding the Use of Federal Universal Service Support in Dockets TC09-029, TC09-065, TC09-068, and TC09-075

         TC09-029        In the Matter of the Request of Midcontinent Communications for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)

         TC09-065        In the Matter of the Request of Fort Randall Telephone Company 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 TC09-029 and TC09-065.  Motion passed 3-0.

         TC09-068        In the Matter of the Request of WWC License LLC d/b/a Alltel Communications, LLC for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)

         Docket TC09-068 was heard as confidential.

         Vice Chairman Kolbeck moved in Docket TC09-068 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.  Motion passed 3-0.

         TC09-075        In the Matter of the Request of the City of Faith Municipal Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)     

Docket TC09-075 was heard as confidential.

         Commissioner Hanson moved in Docket TC09-075 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 services support as proposed. Motion passed 3-0.

3.      TC09-082        In the Matter of the Filing for Approval of an Interconnection Agreement between Qwest Corporation and Matrix Telecom, Inc. (Staff Attorney: Kara Semmler)

         Ms. Kara Semmler, Staff Attorney, stated that the Agreement was properly filed and executed and does not appear to contain discriminatory provisions and that no comments were filed. Ms. Semmler recommended approval of the Agreement.

         Chairman Johnson moved to approve the interconnection agreement.  Motion passed 3-0.

 ADDENDUM TO THE
AGENDA OF COMMISSION MEETING

Electric

1.      EL07-030       In the Matter of the Filing by Montana-Dakota Utilities Co. for Approval of its Tariff Revisions and Guidelines for Interconnection Requirements and Parallel Operation of Customer Owned Generation. (Staff Analyst: Nathan Solem, Staff Attorney: Kara Semmler)

            Ms. Tamie Aberle stated that Montana-Dakota Utilities Co. (Montana-Dakota) is withdrawing tariffs and interconnection guidelines that were originally submitted in this docket.  Ms. Aberle further stated that MDU has a tariff before the Commission containing a reference to the interconnection rules recently adopted by the Commission. She asked the Commission to approve the tariff with the references to Commission rules rather than the previously filed interconnection guidelines.  Ms. Kara Semmler stated that Staff recommends approval of the tariff revisions with references to Commission rules and further to grant the request to withdraw the previous filing.

         Chairman Johnson moved to grant the request to withdraw the filing and to approve the tariff revisions.  Motion passed 3-0.

2.      EL09-015        In the Matter of the Application by Basin Electric Power Cooperative, Inc. for an Energy Conversion Facility Siting Permit for the Deer Creek Station Project Combined-Cycle Natural Gas Energy Conversion Facility and Associated Infrastructure, Including a Water Supply System and Electric Transmission System. (Staff Analysts: Nathan Solem/Brian Rounds/Stacy Splittstoesser/Tim Binder, Staff Attorney: Karen Cremer)

         Ms. Casey Jacobson stated that Basin Electric Power Cooperative's (Basin) notice was not given to landowners within a half mile of the project in the required amount of time and therefore Basin filed its Motion for Extension of Notice, Public Hearing Time Frame and Application for Party Status.  Basin requested that the public input hearing be rescheduled from September 16, to September 30, 2009.  Ms. Jacobson asked the Commission to extend the intervention deadline ten days past the hearing to allow intervention to those that might attend the public hearing. Ms. Karen Cremer recommended that the Commission grant Basin's motion and waive SDCL 49-41B-15 and 49-41B-16.  Staff further recommended that the deadline for party status be extended to October 13, 2009.

            Vice Chairman Kolbeck moved in Dockets EL09-015 and HP09-002 to grant the Motion for Extension of Notice, Public Hearing Time Frame and Application for Party Status with the hearing date to be September 30, 2009, and the intervention deadline to be October 13, 2009, and to grant a waiver of SDCL 49-41 B15 and 49-41 B-16.  Motion passed 3-0.

Hydrocarbon Pipeline

1.      HP09-002        In the Matter of the Application by Basin Electric Power Cooperative, Inc. for an Energy Conversion Facility Siting Permit for a Natural Gas Pipeline to Support the Deer Creek Station Project. (Staff Analysts: Nathan Solem/Brian Rounds/Stacy Splittstoesser/Tim Binder, Staff Attorney: Karen Cremer)

         Ms. Casey Jacobson stated that the comments she made in EL09-015 would apply to Docket HP09-002.

         Vice Chairman Kolbeck moved in Dockets EL09-015 and Docket HP09-002 to grant the Motion for Extension of Notice, Public Hearing Time Frame and Application for Party Status with the hearing date to be September 30, 2009, and the intervention deadline to be October 13, 2009,  and to grant a waiver of SDCL 49-41 B15 and 49-41 B-16.  Motion passed 3-0.

Telecommunications

1.   TC08-135           In the Matter of the Complaint filed by OrbitCom, Inc. against Verizon Business Network Services, Inc. Regarding Unpaid Access Charges. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Karen Cremer)

            Mr. Tom Dixon representing Verizon Business Network Services, Inc. (Verizon) stated that Verizon had filed a Corrected Motion to Compel requesting call detail records (CDRs) from OrbitCom in order to verify whether OrbitCom was correctly identifying intrastate and interstate calls and applying the correct jurisdictional rate to switched access traffic that it billed Verizon. Ms. Meredith Moore, representing OrbitCom, Inc. (OrbitCom) stated that OrbitCom has, in fact, produced over several hundred pages of call detail records and information that pertains to over two hundred thousand calls.  Ms. Moore stated that granting the motion to compel would only delay the hearing for an indefinite period of time and cause significant prejudice to OrbitCom who has not been paid for months. Ms. Karen Cremer stated that Staff believes that OrbitCom should produce the additional information needed and that without the information requested, Verizon cannot make a comparison and that Verizon needs this information to go forward with its case.  Therefore, Staff recommends granting the Motion to Compel. 

            Chairman Johnson moved to grant the Motion to Compel in part to the extent that it relates to the provision of ANI information, with five days worth of data, giving Verizon information on the full 10 digit telephone number and that the data must be transmitted in Excel or some other format that is easily manipulated.  Motion passed 3-0. 

            Chairman Johnson moved to grant motion to reset hearing dates.  Motion passed 2-1 (Vice Chairman Kolbeck dissenting).

            Chairman Johnson moved to grant Verizon's request to submit supplemental prefiled direct testimony and that OrbitCom be given the opportunity to respond if that becomes necessary.  Motion passed 3-0. 

There being no further business, at the hour of 12:05 p.m. the South Dakota Public Utilities Commission Meeting adjourned. The next Commission meeting is scheduled for September 8, 2009.

 

/S/Demaris Axthelm      . 
Demaris Axthelm
Administrative Secretary
November 24, 2009