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South Dakota Public Utilities Commission Meeting
November 10, 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; Commission Advisor Greg Rislov; Commission Attorneys John Smith and Rolayne Wiest; Staff Attorneys Kara Semmler and Karen Cremer; Staff Analysts Terri LaBrie Baker and Dave Jacobson; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Demaris Axthelm.

Also present were:  Rich Coit, South Dakota Telecommunications Association.

Joining the meeting by telephone were:  Meredith Moore, Cutler and Donahoe, representing the city of Garretson; Darla Pitulka, Northern Valley Communications, LLC; and Andrew Isar, Miller Isar, Inc., representing 360 Networks (USA).

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 161 contacts since the last report was prepared for the October 20, 2009, Commission meeting. 31 contacts involved telecommunications services; 59 contacts involved electrical services; 21 contacts involved natural gas services; 2 contacts involved gas and electric service; 13 contacts involved cell phone services; 17 contacts involved the Do Not Call Registry; 1 contact involved the Keystone XL Pipeline; and 17 contacts involved issues not regulated by the Public Utilities Commission.  In 2009, 2,146 of the 2,212 complaints registered have been resolved.

Electric

1.    EL09-019     In the Matter of the Joint Request for an Electric Service Rights Exception between Central Electric Cooperative, Inc. and Southeastern Electric Cooperative, Inc. (Staff Analyst: David Jacobson, Staff Attorney: Kara Semmler) 

            Mr. Dave Jacobson stated that all necessary information was filed and all affected parties are in agreement with the service territory exception. Staff recommended approval.

            Vice Chairman Kolbeck moved to approve the joint request for an electric service rights exception.  Motion passed 3-0.

Natural Gas

1.   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 that Staff recommends approval of all petitions to intervene. 

         Chairman Johnson moved to grant intervention to MidAmerican Energy Company, NorthWestern Corporation d/b/a NorthWestern Energy and Montana-Dakota Utilities Co. Motion passed 3-0.  

Pipeline Safety

1.    PS09-005     In the Matter of the Petition of the Commission Pipeline Safety Program Manager for a Declaratory Ruling Regarding Whether the Crooks Municipal Utilities Gas Line should be Classified as a Transmission or Distribution Line for Pipeline Safety Purposes.  (Staff Analysts: Nathan Solem/Stacy Splittstoesser, Staff Attorney: Kara Semmler)     

         Ms. Kara Semmler stated that Staff recommends approval of all petitions to intervene.

         Commissioner Hanson moved to grant intervention to the cities of Crooks and Garretson.  Motion passed 3-0.

         Ms. Semmler explained that to provide time for a hearing and Commission decision, Staff needs time beyond what is allowed by administrative rule.  Staff requested a 90 day extension. 

         Chairman Johnson moved to grant Staff's request for a 90 day extension.  Motion passed 3-0.

Telecommunications

1.  TC09-088        In the Matter of the Application of Greenfly Networks Inc. dba Clearfly Communications for a Certificate of Authority to Provide Interexchange Telecommunications Services and Local Exchange Services in South Dakota.   (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Kara Semmler) 

         Ms. Terri LaBrie Baker stated that Greenfly Networks Inc. dba Clearfly Communications (Clearfly) had filed an Application for a Certificate of Authority for Local Exchange and Interexchange Service. Ms. LaBrie Baker further stated that Clearfly intends to serve business customers in Qwest Exchanges throughout South Dakota on a resale basis and with its own facilities in the future and that Clearfly has agreed to not offer any prepaid services, including prepaid calling cards, and not accept or require any advanced payments or deposits without prior approval of the Commission. The company may offer switched access services in the future, and Staff has advised Clearfly of all relevant statutes, rules and filing requirements should it opt to add such services. Ms. LaBrie Baker then stated that Staff recommends granting the COA with restrictions and subject to rural safeguards.

            Vice Chairman Kolbeck moved to grant a certificate of authority to Greenfly Networks Inc. dba Clearfly Communications to provide interexchange telecommunications services and local exchange services within the exchanges served by Qwest Corporation. The certificate of authority shall be subject to the condition that Clearfly not offer any prepaid services including prepaid calling cards or collect advance payments or deposits without prior approval of the Commission and is subject to rural safeguards.  Motion passed 3-0.

2.  TC09-090        In the Matter of the Filing for Approval of an Interconnection Agreement between Qwest Corporation and Northern Valley Communications, LLC. (Staff Attorney: Kara Semmler) 

        Ms. Kara Semmler stated the agreement was properly filed, properly executed and does not appear to contain discriminatory language.  No comments were filed and Ms. Semmler recommended approval of the agreement.

        Commissioner Hanson moved to approve the interconnection agreement between Qwest Corporation and Northern Valley Communications, LLC.  Motion passed 3-0.

3.   TC09-091        In the Matter of the Application of McCook Cooperative Telephone Company for an Amended Certificate of Authority. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Karen Cremer)

         Ms. Karen Cremer stated that McCook Cooperative Telephone Company has requested that the matter be deferred until November 24, 2009.

         Chairman Johnson moved to defer action until November 24, 2009.  Motion passed 3-0.

4.   TC09-092        In the Matter of the Filing by 360networks (USA) inc. for Approval of Revisions to its Intrastate Switched Exchange Access Tariff No. 1 and Request for a Waiver. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Karen Cremer) 

        Mr. Andrew Isar stated that 360networks has filed support of its amended access rates.  Ms. Terri LaBrie Baker stated that Staff recommends approving the revised tariff sheets as filed as well as the waiver; with an effective date of November 10, 2009, as requested by the company.

            Vice Chairman Kolbeck moved to approve revisions to 360networks (USA)'s Switched Exchange Access Telecommunications Services Tariff No.1 with an effective date  of November 10, 2009 and grant a waiver of ARSD 20:10:27:07.  Motion passed 3-0.

5.   TC09-093        In the Matter of the Application of Comcast Phone of South Dakota, LLC dba Comcast Digital Phone for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: David Jacobson, Staff Attorney: Kara Semmler)

            Mr. Dave Jacobson recommended approval with waiver of ARSD 20 10 24 02 (9) (requirement for financial statements) and subject to restrictions on prepaid services, advance payments and deposits and with the condition that applicant supply its sales tax number when received.

            Commissioner Hanson moved to grant a certificate of authority to Comcast Digital Phone to provide interexchange telecommunications services and waiver of ARSD 20 102402 (9) subject to the condition that Comcast supply its sales tax number, 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.  Motion passed 3-0.

         Vice Chairman Kolbeck moved to adjourn the meeting.  Motion passed 3-0.
There being no further business, at the hour of 9:45 a.m. the South Dakota Public Utilities Commission Meeting adjourned. The next Commission meeting is scheduled for November 24, 2009.

/S/Demaris Axthelm        
Demaris Axthelm
Administrative Secretary