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South Dakota Public Utilities Commission Meeting
January 19, 2010, at 2:30 P.M. CST
Room 412, 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, Nathan Solem and Dave Jacobson; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Demaris Axthelm.
Also present were: Dave Gerdes, May, Adam, Gerdes and Thompson, representing Montana-Dakota Utilities Co.; Jim Wilcox, Xcel Energy; and Steve Willard South Dakota Electrical Commission.
Joining the meeting by telephone were: Commissioner Gary Hanson; Staff Analyst Brian Rounds; Meredith Moore, Cutler and Donahoe, representing Kennebec Telephone Company; Talbot Wieczorek, Gunderson, Palmer, Goodsell and Nelson, representing Alltel Communications, Inc.; Jennifer Moore, Rick Leuthauser, Dave Badura, Melaine Accord, Diane Munns and Vicky Wonder, MidAmerican Energy Company; Lee Magnuson, Lynn Jackson, Shultz and Lebrun, representing Black Hills Power, Inc.; Rod Bowar, Kennebec Telephone Company; Tamie Aberle, Daryl Anderson, Jim Mann, Jim Dishon and Scott Besmer, Montana-Dakota Utilities Co.; Andrew Moratzka, Mackall, Crounse and Moore, representing Black Hills Industrial Interveners; Sam Khoroosi, representing Black Hills Residential Consumers Coalition Intervenors and Kevin Solie and Russ Mathers, Basin Electric Power Cooperative.
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 January 5, 2010, commission meeting. 23 contacts involved telecommunications services; 35 contacts involved electrical services; 14 contacts involved natural gas services; 1 contact involved gas and electric service, 1 contacts involved cell phone services; 1 contact involved the Keystone Pipeline, 1 contact involved the Keystone XL Pipeline, 10 contacts involved the Do Not Call Registry and 8 contacts involved issues not regulated by the Public Utilities Commission. In 2010, 74 of the 94 complaints registered have been resolved. In 2009, 2,523 of the 2,537 complaints registered have been resolved.
Electric
Vice Chairman Kolbeck stated following the decision made at the January 5, 2010, Commission meeting he requested that this matter be place on the next agenda for reconsideration.
Vice Chairman Kolbeck moved to reconsider the prior decision. Motion passed 3-0
Vice Chairman Kolbeck moved to approve the revised cost budgets as filed of MidAmerican's energy efficiency cost recovery mechanism. Motion passed 3-0.
Mr. Jim Wilcox stated that on December 28, 2007, Xcel Energy (Xcel) filed a petition requesting approval for an expanded demand side management program. Mr. Wilcox further stated that on December 31, 2009, Xcel re-filed a different plan and is now asking to withdraw the December 28, 2007, plan and close Docket EL07-036. Ms. Karen Cremer recommended that the commission grant Xcel's request to withdraw the petition and close the docket.
Commissioner Hanson moved to grant the request to withdraw the petition and close the docket. Motion passed 3-0.
Ms. Karen Cremer stated that SDCL 49-41B-12 establishes a filing fee structure and pursuant to the statue Staff is requesting to assess a filling fee not to exceed $379,000 with an initial deposit of $8,000. Mr. Russ Mathers stated that PrairieWinds understands that the filing fee is based on the investigation and had no concerns with the filing fee or initial deposit..
Vice Chairman Kolbeck moved to assess a filing fee not to exceed $379,000 with an initial deposit of $8,000. Motion passed 3-0.
Natural Gas
Ms. Melaine Accord with MidAmerican Energy (MidAMerican) stated shippers that release interstate pipeline capacity must comply with the Federal Energy Regulatory Commission (FERC) rules on capacity releases transactions. Mr. Dave Jacobson sated pooling service which occurs under the Monthly Metered Transportation Service (MMT) does not have to bid for capacity release by MidAmerican like other customers because they are exempt per FERC rules. The proposed tariff changes state the eligibility requirements for the FERC exemption.
Chairman Johnson moved to approve the tariff revisions. Motion passed 3-0.
Pipeline Safety
Mr. Dave Gerdes stated the need for Docket PS09-001 has now passed as the investigation has concluded and asked the Commission to close the Docket. Mr. Nathan Solem stated staff read the expert report submitted by Montana-Dakota Utilities (MDU). Staff in addition conducted two types of formal root cause analysis on the data in the report. Mr. Solem recommended the Commission close Docket PS09-001. Chairman Johnson noted that in a broader sense this issue will continue on in a different tribunal and that all parties agree this is no longer Commission business.
Commissioner Hanson moved to close Docket PS09-001. Motion passed 3-0.
2. PS09-006 In the Matter of Pipeline Safety Enforcement against Montana-Dakota Utilities, Co. (Staff Analysts: Nathan Solem, Stacy Splittstoesser, Staff Attorney: Kara Semmler)
Mr. Nathan Solem, on behalf of Staff recommends a $600 penalty assessed against Montana-Dakota Utilities for failure to take a follow up pipe to soil reading within the fifteen months of the June 16, 2004 reading, as it is required by MDU's operating and users manual in section 11 page 5. Mr. Solem further stated had this reading been taken it might have indicated corrosion was still occurring on the main and prompted remedial action and possibly prevented the main leak that occurred at the incident site that complicated the investigation. Mr. Dave Gerdes stated MDU understands there was an oversight and MDU does take the safety of the public very serious and agreed to the fine.
Vice Chairman Kolbeck moved to assess a $600 penalty toward Montana-Dakota Utilities. Motion passed 3-0.
Telecommunications
Ms. Kara Semmler on behalf of Staff stated it would be productive for the parties to engage in a conversation with commission counsel to establish a procedural schedule. In the event that motion for summary judgment is not successful, dates would be established for the commission to proceed to hearing. Mr. Talbot Wieczorek representing Alltel stated his concern of determining jurisdiction issue of the Commission before spending money on discovery. Ms. Meredith Moore representing Kennebec asked the Commission to establish a procedural schedule. Chairman Johnson asked if there was any objection to taking no action, hearing none Commission took no action.
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.
Vice Chairman Kolbeck moved to approve the interconnection agreement. 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.
Chairman Johnson moved to approve the interconnection agreement. Motion passed 3-0
ADDENDUM TO THE
AGENDA OF COMMISSION MEETING
Electric
Ms. Karen Cremer stated that in October 2009, staff came before the Commission pursuant to SDCL 49-1A-8, assessing a filing fee of $100,000. Ms Cremer further stated that the filing states that anytime a filing combines a general rate case and an integrated resource plan the Commission can require a deposit up to $125,000. Therefore staff is asking for authority to assess additional $25,000. Mr. Lee Magnuson, representing Black Hills Power, Inc had no objection to the additional $25,000. Sam Khoroosi, representing Black Hills Residential Consumers Coalition Interveners had no objection to the additional $25,000. Andrew Moratzka, representing Black Hills Industrial Intervenors had no objection to the additional $25,000 and also commented on testimony deadline. Mr. Magnuson stated that since testimony deadline was not noticed for this agenda he felt that there should not be a discussion.
Commissioner Hanson moved to assess a filing fee for an additional $25,000 for expenses related to the review of an integrated resource plan. Motion passed 3-0.
Telecommunications
Mr. Dave Jacobson stated Velocity The Greatest Phone Company Ever, Inc. (Velocity) filed an application for a local and long distance certificate of authority, with waivers of ARSD 20:10:24:02(9) and ARSD 20:10:32:03(12) which are requirements for cash flow statement. Mr. Jacobson further stated that Staff recommends that the commission grant a certificate of authority to Velocity with no restrictions or bonding and with waivers of ARSD 20:10:24:02(9) and ARSD 20:10:32:03(12).
Chairman Johnson moved to grant a certificate of authority to Velocity to provide interexchange telecommunications services and local exchange services in South Dakota, except in those areas served by a rural telephone companies and the Commission waives ARSD 20:10:24:02(9) and ARSD 20:10:32:03(12). Motion passed 3-0.
There being no further business, at the hour of 3:22 p.m., the South Dakota Public Utilities Commission Meeting adjourned. The next Commission meeting is scheduled for February 9, 2010.
/S/Demaris Axthelm
Demaris Axthelm
Administrative Secretary
March 9, 2010
