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South Dakota Public Utilities Commission Meeting
December 8, 2009, at 9:30 A.M.
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; Deputy Executive Director Leah Mohr; Commission Advisor Greg Rislov; Commission Attorneys John Smith and Rolayne Wiest; Staff Attorneys Kara Semmler and Karen Cremer; Staff Analysts Nathan Solem, Jon Thurber, Stacy Splittstoesser, Brian Rounds, and Dave Jacobson Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Anissa Grambihler.
Also present were: Dave Gerdes, May, Adam, Gerdes and Thompson, representing Midcontinent Communications.
Joining the meeting by telephone were: Jim Wilcox, Kari Zipko and Sara Cardwell of Xcel Energy; Megan Early and Roger Miltenberger of MidAmerican Energy; Meredith Moore, Cutler and Donahoe, representing Alliance Communications Cooperative, Inc.; and Pam Russell of Platts.
Administration
- Approval of the Minutes of the Ad Hoc Commission Meetings Held on September 8, 2009 and September 23, 2009. (Staff: Demaris Axthelm)
Vice Chairman Kolbeck moved to approve the Ad Hoc Commission Minutes of the September 8, 2009, and September 23, 2009 meetings. Motion passed 3-0.
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 93 contacts since the last report was prepared for the November 24, 2009, Commission meeting. 17 contacts involved telecommunications services; 42 contacts involved electrical services; 8 contacts involved natural gas services; 1 contact involved gas and electric service, 3 contacts involved cell phone services; 1 contact involved the Keystone Pipeline, 11 contacts involved the Do Not Call Registry; and 10 contacts involved issues not regulated by the Public Utilities Commission. In 2009, 2,349 of the 2,408 complaints registered have been resolved.
Chairman Johnson stated that Dockets EL08-028 and NG09-006 would be moved to the end of the Agenda.
Electric
Chairman Johnson provided a summary and explanation of the Energy Independence and Security Act of 2007 (EISA). Commissioner Johnson further stated that the EISA includes new federal Public Utility Regulatory Policies Act of 1978 (PURPA) standards for state commissions and utilities to consider. The four PURPA standards the Commission must consider for electric utilities are integrated resource planning, rate design modifications to promote energy efficiency investments, and two different standards regarding the smart grid. Chairman Johnson further stated that the two standards the Commission must consider for natural gas utilities regard energy efficiency prioritization and rate design to promote energy efficiency. With respect to the standards regarding electric utilities, the Commissions made the following rulings.
For the Integrated Resource Planning Standard, Chairman Johnson moved to adopt a modified standard by requiring the utilities to file, for informational purposes, integrated resource plans with the Commission that the utility has already prepared and add in the words "cost-effective" in part A of the standard. Motion passed 3-0.
For the Rate Design Modifications to Promote Energy Efficiency Investments Standard, Chairman Johnson moved to adopt part "A" of the standard with the words "cost effective" included in the last line, not adopt part B, and make clear in the order that the Commission will have flexibility in part A to do this through mechanisms outside of base rates. Motion passed 3-0.
Commissioner Hanson moved to amend to change the word from "shall" to "may" in Part A. Motion passed 2-1. (Johnson dissented).
For the Consideration of Smart Grid Investments Standard, Chairman Johnson moved that each electrical utility file annually with the Commission, on an informational basis, a report stating its smart grid plans, deployment of smart grids, cost effectiveness, and other information annually, with the first report due December 31, 2010 and the last report due December 31, 2012. Motion passed 3-0.
For the Smart Grid Information Standard, Chairman Johnson moved to reject this standard. Motion passed 3-0.
Natural Gas
Chairman Johnson stated that the two PURPA standards that the Commission is required to consider are similar to the first two electric standards. The Commission considered these standards and made the following rulings.
For the Energy Efficiency Standard, Chairman Johnson moved that the Commission adopt similar wording that appeared in parts A and B of the similar electric standard. He moved that the order state that each natural gas utility shall integrate cost-effective energy efficiency resources into the plans and planning processes of the natural gas utility and adopt policies that establish cost-effective energy efficiency as a priority resource in the plans and planning processes of the natural gas utility. Motion passed 3-0.
For the Rate Design Modifications to Promote Energy Efficiency Investments Standard, Commissioner Hanson moved to accept a modified part A that states that rates allowed to be charged by a natural gas utility may align utility incentives with the delivery of cost effective energy efficiencyand promote cost-effective energy efficiency investments. Motion passed 3-0.
Megan Early from MidAmerican had no comment regarding the filing. Mr. Dave Jacobson gave a brief history of the Kansas Ad Valorem Tax Refund issue and stated that the refund had been calculated correctly. Chairman Johnson asked about the optimal timing of the refund and Mr. Jacobson stated that the proposed plan is better than the method outlined in the tariff because it would result in a sooner refund than waiting for the annual reconciliation and occur during the winter heating season.
Commission Kolbeck moved to approve the refund plan. Motion passed 3-0.
Telecommunications
1. TC09-094 In the Matter of the Filing for Approval of an Opt-in Wireline Interconnection Agreement between Qwest Corporation and MCC Telephony of the Midwest, Inc. dba Mediacom. (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 agreement.
Commissioner Hanson moved to approve the Interconnection Agreement. Motion passed 3-0.
Addendum to the
Agenda of the Commission Meeting
Telecommunications
Mr Dave Gerdes, representing Midcontinent Communications, asked the Commission for approval of the agreement. Ms. Kara Semmler stated staff has no concerns with the contents it was properly filed and executed, no discriminatory language. Ms Semmler further stated the meeting date was the final day for comments to be filed. Therefore, Ms. Semmler recommended approval of the agreement contingent that no last minute comments would be filed today. Ms Meredith Moore, representing Alliance Communications Cooperative Inc., stated that Alliance worked with Midcontinent on the interconnection and construction.
Commissioner Hanson moved to approve the Interconnection Agreement. Motion passed 3-0.
There being no further business, at the hour of 10:58 a.m., the South Dakota Public Utilities Commission Meeting adjourned. The next Commission meeting is scheduled for January 5, 2010.
/S/Demaris Axthelm
Demaris Axthelm
Administrative Secretary
March 9, 2010
