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South Dakota Public Utilities Commission Meeting
October 20, 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; Executive Director Patty Van Gerpen; Deputy Executive Director Leah Mohr; Finance Manager Cindy Kemnitz; 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, Tim Binder, Brian Rounds, Nathan Solem and Dave Jacobson; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Anissa Grambihler.
Also present were: Darla Rogers, Riter, Rogers, Wattier & Northrup, representing Midstate Communications and South Dakota Telecommunications Association; Dave Gerdes, May, Adam, Gerdes and Thompson, representing Montana-Dakota Utilities Co. and Northern States Power Company d/b/a Xcel Energy; Jim Cremer, Bantz, Gosch & Cremer, representing James Valley Wireless, LLC and Northern Valley Communications, LLC.; and James Groft, James Valley Wireless, LLC and Northern Valley Communications, LLC.
Joining the meeting by telephone were: Commissioner Gary Hanson; Casey Jacobson and Curt Pearson, Basin Electric Power Cooperative, Inc.; Lee Magnuson, Lynn Jackson, Shultz and Lebrun, representing Black Hills Power, Inc.; Kenna Hagan, Todd Brink, Chris Kilpatrick, Brian Iverson, Kyle White and Glenda Rahn, Black Hills Power, Inc.; Stephanie Bosch, Larry Oswald and Tamie Aberle, Montana-Dakota Utilities Co.; Jeff McKinney, NuGen Energy, LLC; Bleau Lafave, Jeff Decker and Pam Bonrud, NorthWestern Corporation d/b/a NorthWestern Energy; Kathy Ford, Knology Community Telephone, Inc. and Knology of the Black Hills, LLC.; Kristopher Twomey, representing WideVoice Communications, Inc.; Gregg Jongeling, Jongeling Consulting; Kevin Kouba, OtterTail Power Company; and Daniel Barsky, Email Discount Network.
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 94 contacts since the last report was prepared for the October 6, 2009, commission meeting. 26 contacts involved telecommunications services; 37 contacts involved electrical services; 8 contacts involved natural gas services; 3 contacts involved cell phone services; 7 contacts involved the Do Not Call Registry; 1 contact involved the Keystone Pipeline; and 12 contacts involved issues not regulated by the Public Utilities Commission. In 2009, 2,001 of the 2,051 complaints registered have been resolved.
Complaint
Mr. Dan Barsky stated that a settlement had been reached with complainant, Eunice Caldwell. Ms. Kara Semmler stated that Ms. Caldwell is comfortable with the settlement and asked the Commission to grant the motion to dismiss and close the Docket.
Chairman Johnson moved to grant the motion to dismiss and close Docket CT09-002. Motion passed 3-0.
Chairman Johnson announced that Telecommunications items 2 and 3 would be heard next.
Natural Gas
Ms. Tami Aberle stated that the filing reflects a portfolio of gas conservation programs that Montanta-Dakota (MDU) proposes to implement for a two year period with a start date of November 1, 2009. Ms. Aberle further stated that MDU has a cost effective and reasonable portfolio to offer to customers, which will promote energy conservation in South Dakota. Mr. Brian Rounds stated that MDU was the first utility to start offering energy efficiency programs, even before the Commission began requesting them to do so. This filing is an update to and expansion of that initial program. Mr. Rounds further stated that changes to the initial proposal have been made to decrease the number of free riders, to move the qualifying efficiency levels higher and link rebate qualification to these higher levels. Mr. Rounds stated that all of the programs have a ratepayer impact measure test of greater than one, and Staff recommended approving the proposed revised program.
Commissioner Hanson moved to approve the proposed revised energy conservation program with an effective date of November 1, 2009. Motion passed 3-0.
Electric
Ms. Karen Cremer stated that Staff has been working with Xcel Energy and asked the Commission to suspend the imposition of the tariff for an additional 60 days beyond October 28, 2009. Mr. Dave Gerdes stated that Xcel Energy agrees with the request.
Vice Chairman Kolbeck moved that the suspension of the tariff be further extended for 60 days beyond October 28, 2009. Motion passed 3-0.
Chairman Johnson announced that Electric item 2 and Hydrocarbon Pipeline item 1 would be taken together.
Please see minutes for Docket EL09-015 under Hydrocarbon Pipeline item 1, Docket HP09-002.
Ms. Karen Cremer stated that pursuant to SDCL 49-34A-14, Staff recommends that the Commission suspend the imposition of the tariff for 180 days beyond September 30, 2009. Mr. Lee Magnuson stated that Black Hills Power supports staff recommendations and has no objection.
Chairman Johnson moved to approve the suspension of the imposition of the tariff for 180 days beyond September 30, 2009. Motion passed 3-0.
Ms. Cremer then stated that pursuant to SDCL 49-1A-8, Staff recommends assessing a filing fee for actual expenses up to the statutory limits of $100,000. Mr. Lee Magnuson stated that Black Hills Power supports Staff recommendations and has no objection.
Chairman Johnson moved to assess a filing fee for actual expenses not to exceed the statutory limit of $100,000. Motion passed 3-0.
Hydrocarbon Pipeline
Ms. Casey Jacobson stated that Basin Electric Power Cooperative (Basin Electric) had no objection to granting party status to the Brookings County Commission. Ms. Karen Cremer stated that Staff recommends granting intervention to Brookings County.
Commissioner Hanson moved to grant party status to Brookings County in Dockets EL09-015 and HP09-002. Motion passed 3-0.
Ms. Karen Cremer stated that Staff recommends approving the Local Review Committee's request to hire a consultant for $10,500 in Docket EL09-018. Ms. Casey Jacobson stated that Basin Electric recommends approving the request to hire a consultant. Mr. Greg Jongeling stated that the local review committee is charged with reviewing the Basin Electric Deer Creek Station application and not the gas pipeline application.
Vice Chairman Kolbeck moved to grant the local review committee's request to hire a consultant for $10,500. Motion passed 3-0.
Pipeline Safety
Ms. Kara Semmler stated that the parties are close to agreement regarding resolution of the current problem and on how to handle the issue in the future. Ms. Semmler further stated that additional time is necessary for the parties to draft a document reflecting their agreement and to present it to the Commission. Ms. Semmler requested an additional ninety day extension of the date for decision. Mr. Dave Gerdes agreed that the extension is in everyone's best interest.
Vice Chairman Kolbeck moved to grant the ninety day requested extension. Motion passed 3-0.
Telecommunications
Ms. Kathy Ford from Knology of the Black Hills, LLC and Knology of the Plains, Inc. stated that Commission Staff, in a different docket, reached a settlement with Reduced Rate Long Distance, LLC. Since that time, there have not been any indications the previous problems still exist. Ms Ford asked the Commission to dismiss this complaint. Ms. Kara Semmler agreed that the problems have stopped and recommended that the Commission grant the motion to dismiss.
Chairman Johnson moved to grant the motion to dismiss. Motion passed 3-0.
Telecommunications items 2 and 3 were heard and voted together.
Mr. Jim Cremer stated that James Valley Wireless was granted eligible telecommunication carrier (ETC) status in 2006 and is a wireless provider providing service in the James Valley service area and also in the Redfield area. This petition seeks ETC status in the Aberdeen service area of Qwest. Mr. Cremer further stated that James Valley Wireless provides all supported service in this area and asked that the Commission approve the petition for ETC status. Ms. Terri LaBrie Baker stated that James Valley Wireless has filed according to administrative rules and has filed supplemental filings as requested by the Commission and recommended granting ETC status to James Valley. Mr. Jim Cremer then stated that Northern Valley Communications' petition seeks ETC status in the Qwest area of Redfield and Aberdeen. Mr. Cremer asked the Commission to approve Northern Valley Communications ETC status. Northern Valley is a facilities based provider and serves throughout the Qwest exchanges of Aberdeen and Redfield either through its own facilities or through its subsidiary James Valley Wireless. Ms. LaBrie Baker sated that Northern Valley Communications has filed according to administrative rules and recommended granting ETC status.
Chairman Johnson moved to grant ETC status to James Valley and Northern Valley Communications and 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 TC09-023 and TC09-024. Motion passed 3-0.
Mr. Kristopher Twomey stated that Wide Voice Communications does not seek to provide local exchange service in any exchange outside of the Qwest's incumbent local exchange territories. Ms. Darla Rogers stated that interveners are requesting that the Commission delay the approval of the application because more information is needed and that an evidentiary hearing be held to get this information. Mr. Dave Jacobson stated that if the Commission wanted to take action on this docket, Staff would then recommend granting a certificate of authority subject to the condition that WideVoice not offer any prepaid services or collect advance payments or deposits without prior approval of the Commission, and subject to rural safeguards. Mr. Jacobson further recommended a waiver of ARSD 20:10:24:02 (9) and 20:10:32:03 (12) and also that the granting of the COA be conditioned on the applicant receiving and submitting its SD sales tax number.
Commissioner Hanson moved to grant a certificate of authority to WideVoice Communication subject to the condition that WideVoice not offer any prepaid services or collect advance payments or deposits without prior approval of the Commission, and subject to rural safeguards, and grant a waiver of ARSD 20 10 24 02 (9) and 20 10 32 03 (12) and also that the granting of the COA be conditioned on the applicant receiving and submitting its SD sales tax license number. Motion failed 1-2 (Johnson and Kolbeck dissenting).
Chairman Johnson moved to grant the request for an evidentiary hearing, instructing the interveners to supply interrogatories to WideVoice by October 23, 2009, with copies of questions and answers to be provided to Staff and to work with Staff on a procedural schedule. Motion passed 3-0.
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 agreement.
Commissioner Hanson moved to approve the agreement. Motion passed 3-0.
Ms Terri LaBrie Baker stated that Staff needs to clear up a couple of issues and therefore, asked the Commission to defer or take no action at this time.
Vice Chairman Kolbeck moved to defer. Motion passed 3-0.
Mr. Dave Jacobson stated that Lattice Incorporated (Lattice) filed an application for a certificate of authority to provide Interexchange and alternative operator services to inmates and other incarcerated persons in confinement facilities within the State of South Dakota. Mr. Jacobson recommended that the Commission grant a Certificate of Authority to Lattice, subject to the restrictions that 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.
Vice Chairman Kolbeck moved to grant a certificate of authority and alternative operator service to Lattice Incorporated, subject to the conditions that Lattice not offer any prepaid services from collecting customer deposits or advanced payments without prior approval of the Commission and grant the waivers of ARSD 20:10:24:05(3), (5) and (6). Motion passed 3-0.
ADDENDUM TO THE
AGENDA OF COMMISSION MEETING
Natural Gas
Mr. Jeff Decker stated that NorthWestern Energy (NWE) was approached by NuGen Energy, LLC (NuGen) which requested relief from the fuel retention charge. Mr. Decker further stated that it was discovered that there was a problem with the calibration of NWE's meter and that NWE intends to use Northern Natural Gas's meter at its tap and netting out the other taps on the line for billing NuGen while the meter is being fixed. Once the NWE meter issues are resolved and the meter is calibrated correctly and installed, NWE will be able to measure actual gas losses and will be reimbursed for only those actual losses as opposed to assessing the system wide rate. After sufficient data is collected, a new fuel retention charge will be proposed that will cover all direct connect customers served under rate 87. Mr. Jeff McKinney stated that NuGen is in agreement with the filing. Mr. Dave Jacobson recommended that the Commission approve the contract with deviations on less than 30 days notice.
Vice Chairman Kolbeck moved to approve the proposed contract with deviations effective October 20, 2009 on less than 30 days notice and approve associated tariff revisions effective October 20, 2009. Motion passed 3-0.
SECOND ADDENDUM TO THE
AGENDA OF COMMISSION MEETING
Electric
Mr. Dave Jacobson stated that the filing is to serve a grain bin site owned by Whetstone Ag Supply, Inc. Mr. Jacobson further stated that the filing was complete and recommended that the Commission approve the territory exception.
Commissioner Hanson moved to approve the application for a service territory exception with less that 30 days notice. Motion passed 3-0.
There being no further business, at the hour of 11:30 am the South Dakota Public Utilities Commission Meeting adjourned. The next Commission meeting is scheduled for November 6, 2009.
/S/Demaris Axthelm
Demaris Axthelm
Administrative Secretary
