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South Dakota Public Utilities Commission Meeting
October 6, 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: Vice Chairman Steve Kolbeck: Commissioner Gary Hanson; Executive Director Patty Van Gerpen; Commission Advisor Greg Rislov; Commission Attorneys John Smith and Rolayne Wiest; Staff Attorneys Kara Semmler and Karen Cremer; Staff Analysts Terri LaBrie Baker, Jon Thurber, Bob Knadle and Dave Jacobson; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Anissa Grambihler.

Also present were:  Brett Koenecke, May, Adam, Gerdes and Thompson, representing TransCanada Keystone Pipeline, LP; and Rich Coit, South Dakota Telecommunications Association.

Joining the meeting by telephone were:  Meredith Moore, Cutler and Donahoe, representing, OrbitCom, Inc.; John Prendergast and Mary Sisak, Blooston, Mordkofsky, Dickens, Duffy & Prendergast, LLP, and Rich Helsper, Glover & Helsper, representing Brookings Municipal Telephone d/b/a Swiftel Communications; Jim Adkins and Laura Julius, Brookings Municipal Telephone d/b/a Swiftel Communications; Jeff Decker, NorthWestern Energy; Bill Taylor and James Moore, Woods, Fuller, Shultz & Smith, representing TransCanada Keystone Pipeline, LP; Paul Blackburn, Plains Justice, representing Dakota Rural Action; and Jim White, TransCanada Keystone Pipeline, LP.  

Administration

  1. Approval of the Minutes of the Ad Hoc Commission Meeting Held on July 10, 2009. (Staff:  Demaris Axthelm) 

Vice Chairman Kolbeck moved to approve the Minutes of the July 10, 2009, Ad Hoc Commission Meeting.  Motion passed 3-0.

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 received a total of 131 contacts since the last report was prepared for the September 22, 2009, commission meeting. 53 contacts involved telecommunications services; 34 contacts involved electrical services; 10 contacts involved natural gas services; 9 contacts involved cell phone services; 10 contacts involved the Do Not Call Registry; 1 contact involved the Keystone Pipeline; 1 contact involved Wind Energy; 2 contacts involved the Grain Warehouse Division; and 11 contacts involved issues not regulated by the Public Utilities Commission.  In 2009, 1,892 of the 1,957 complaints registered have been resolved.

Hydrocarbon Pipeline

1.      HP09-001        In the Matter of the Application by TransCanada Keystone Pipeline, 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)

Chairman Johnson announced that both Hydrocarbon Pipeline item 1 and Hydrocarbon Pipeline item 1 on the addendum to the agenda would be taken together at the end of meeting.

Natural Gas

1.      NG09-005       In the Matter of the Filing by NorthWestern Energy for Approval of Tariff Revisions. (Staff Analyst: Dave Jacobson, Staff Attorney: Karen Cremer)

         Mr. Jeff Decker stated that NorthWestern Energy's tariff provides that the fuel retention percentage be adjusted annually with the updated percentage to be effective October 1 of each year. Mr. Decker further stated that the proposed percentage for the 2009 filing is 2.05% compared to the 2008 percentage of 1.89%.  Mr. Dave Jacobson stated that this is a standard annual filing and Staff recommends approval.

         Commissioner Hanson moved to approve the tariff revisions in Docket NG09-005.  Motion passed 3-0.

2.      NG09-006       In the Matter of the Consideration of the Energy Independence and Security Act of 2007. (Staff Analysts: Brian Rounds/Jon Thurber, Staff Attorney: Kara Semmler)

            Ms. Kara Semmler stated Staff recommends the Commission collect written comments by the end of October.  Ms. Semmler further recommended that the Commission hear comments and rebuttal at a meeting in November and that the Commission make its decision prior to the December deadline as required by the act.

            Chairman Johnson moved to adopt Staff recommendations with regard to how to proceed.  Motion passed 3-0.

Telecommunications

1.      TC08-005        In the Matter of the Complaint filed by OrbitCom, Inc. against Global Crossing Telecommunications, Inc. Regarding Switched Access Services. (Staff Analyst: Dave Jacobson, Staff Attorney: Kara Semmler)

         Ms. Meredith Moore stated that the parties have entered into a confidential settlement agreement and now ask for dismissal.  Ms. Kara Semmler stated Staff recommends approval of the Stipulation for Dismissal. 

         Vice Chairman Kolbeck moved to approve the Stipulation for Dismissal in Docket TC08-005.  Motion passed 3-0.

2.      TC08-103        In the Matter of the Petition of Brookings Municipal Utilities d/b/a Swiftel Communications for Approval of a Partial Relinquishment of its Designation as an Eligible Telecommunications Carrier. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Kara Semmler)

         Mr. John Prendergast stated that at the time the Eligible Telecommunication Carrier (ETC) status was filed, Brookings Municipal Utilities d/b/a Swiftel Communications (Swiftel) was negotiating a transaction with Crossroads Wireless, Inc. (Crossroads).  The transaction was, however, not consummated due to Crossroads' bankruptcy.  Swiftel has secured an extension of its arrangement with Sprint and therefore request that the Commission cancel its previous approval of Swiftel's partial relinquishment of its ETC status. Ms. Kara Semmler stated that Staff recommends granting the request.

         Commissioner Hanson moved to grant Switftel's request to cancel the previously approved partial relinquishment of ETC status.  Motion passed 3-0.

3.      TC09-084        In the Matter of the Filing for Approval of an Interconnection Agreement between Qwest Corporation and EnTelegent Solutions, 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.

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

4.      TC09-085        In the Matter of the Filing for Approval of an Opt-in Interconnection Agreement between Qwest Corporation and CVC CLEC, LLC. (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.

         Vice Chairman Kolbeck moved to approve the opt-in interconnection agreement.  Motion passed 3-0.

5.      TC09-086        In the Matter of the Filing by Sprint Communications Company L.P. for Approval of its Access Service Tariff. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Kara Semmler)

         Ms. Kara Semmler stated she communicated with the parties. The parties hope for a multi-jurisdictional solution rather than filing in all states individually.  Staff, therefore, recommends granting the request to withdraw without prejudice. 

         Commissioner Hanson moved to grant the request to withdraw without prejudice.  Motion passed 3-0.

ADDENDUM TO THE
AGENDA OF COMMISSION MEETING

Hydrocarbon Pipeline

1.      HP09-001        In the Matter of the Application by TransCanada Keystone Pipeline, 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)

See link to view the transcript:  http://www.puc.sd.gov/commission/dockets/hydrocarbonpipeline/2009/hp09-001/100609transcript.pdf

            The Commission considered Chairman Johnson's request for reconsideration. At the meeting, TransCanada Keystone Pipeline, LP (Keystone) produced a list of materials in its possession entitled "References for the Preparation of Emergency Response Manuals."   The list included documents containing technical guidance information on ERP preparation.  Keystone offered the production of such documents to Dakota Rural Action (DRA) if it wants them. Keystone further represented that the only ERP currently in Keystone's possession is the one filed at PHMSA for the Keystone pipeline in Eastern South Dakota.  The specific ERP for Keystone XL had not been yet been developed. Staff advised the Commission that it had sent out a great many data requests on the underlying environmental and other input data.  Such data could be used in tailoring an ERP for Keystone XL. Those documents were provided to DRA. DRA acknowledged receipt of those documents but stated it had not reviewed them as of the meeting date.

            Vice Chairman Kolbeck moved that Keystone be required to produce to DRA via email the References for the Preparation of Emergency Response Manuals before the close of business on October 6, 2009, that DRA communicate which documents on the list it wished Keystone to produce on or before the close of business on October 8, 2009, and that Keystone produce such documents to DRA on or before October 15, 2009.  Motion passed 2-1 (Commissioner Hanson dissenting).

            All parties agreed to amend the previously set procedural schedule to allow DRA an extension to file testimony and to allow Keystone to rebut this testimony.

            Chairman Johnson moved to amend the Procedural Schedule, with Dakota Rural Action's testimony due on October 20, 2009, and with Keystone's rebuttal to Dakota Rural Action's testimony due on October 27, 2009.  Motion passed 3-0.

There being no further business, at the hour of 10:37 am the South Dakota Public Utilities Commission Meeting adjourned. The next Commission meeting is scheduled for October 20, 2009.

/S/Demaris Axthelm        
Demaris Axthelm
Administrative Secretary