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South Dakota Public Utilities Commission Meeting
April 6, 2010, at 9:30 A.M. CST
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; Commission Attorneys John Smith and Rolayne Wiest; Commission Advisor Greg Rislov; Staff Attorneys Karen Cremer and Kara Semmler; Staff Analysts Terri LaBrie Baker, Tim Binder and Dave Jacobson; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretaries Demaris Axthelm and Stephanie Harmon.

Also present were:  Rich Coit representing South Dakota Telecommunications Association; and Margo Northrup, Riter, Rogers, Wattier and Northrup, representing South Dakota Network LLC.

Joining the meeting by telephone were:  Commissioner Gary Hanson; Jennifer Moore representing MidAmerican Energy Company; Nathan Schoen, Cutler and Donahoe, representing Orbitcom; Rod Bowar representing Kennebec Telephone; Talbot Wieczorek, Gunderson, Palmer, Goodsell and Nelson, representing Alltel Communications, Inc.; Scott Kellogg representing Neutral Tandem-South Dakota; and Carey Rosel representing Ionex Communications North, Inc. d/b/a Birch Communications.

Administration

1.         Approval of the Minutes of the Commission Meeting Held on March 9, 2010. (Staff: Demaris Axthelm)

         Commissioner Hanson moved to approve the Minutes of the Commission Meeting Held on March 9, 2010.  Motion passed 3-0.

Chairman Johnson stated that the Telecom Arbitration Dockets (TC07-112, TC07-111, TC07-115, and TC07-116) would be moved to the beginning of the Agenda.

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 84 contacts since the last report was prepared for the March 23, 2010, Commission Meeting.  21 contacts involved telecommunications services; 20 contacts involved electrical services; 10 contacts involved natural gas services; 5 contacts involved cell phone services; 7 contacts were related to the Do Not Call registry, 2 contacts involved the Keystone XL Pipeline, 2 contacts were related to the Grain Warehouse Division, and 18 contacts involved issues not regulated by the Public Utilities Commission. In 2010, 809 of the 857 complaints registered have been resolved. In 2009, 2,536 of the 2,537 complaints registered have been resolved.

Consumer Complaints

1.  CN05-006  In the Matter of the Complaint filed by South Dakota Network, LLC against Global Crossing Telecommunications, Inc. Regarding Access Charges. (Staff Attorney: Kara Semmler)

            Ms. Margo Northrup, Riter, Rogers, Wattier, & Northrup, representing South Dakota Network, LLC (SDN) stated that the differences between SDN and Global Crossing Telecommunication, Inc. have been settled and requested that the docket be closed. Ms. Kara Semmler, Staff Attorney, stated Staff supports the closing of the docket.

            Vice-Chairman Kolbeck moved to dismiss and close Docket CN05-006. Motion passed 3-0.

2.  CN09-002  In the Matter of the Complaint Filed by Mark Pyle/A Plus Towing and Repair, Sioux Falls, South Dakota, Against MidAmerican Energy Company Regarding a Billing Dispute. (Staff Analyst: Deb Gregg, Staff Attorney: Kara Semmler)

3.  CN10-001  In the Matter of the Complaint Filed by Jeff Danz/Zandbroz Variety, Sioux Falls, South Dakota, Against MidAmerican Energy Company Regarding a Billing Dispute. (Staff Analyst: Deb Gregg, Staff Attorney: Kara Semmler)

4.  CN10-002  In the Matter of the Complaint Filed by Lois DeNeui, Lennox, South Dakota, Against MidAmerican Energy Company Regarding a Billing Dispute (Staff Analyst: Deb Gregg, Staff Attorney: Kara Semmler)

            Ms. Jennifer Moore, MidAmerican Energy Company (MidAmerican), stated because the dockets were for the same issue she would speak to them as a whole, rather than individually. Ms. Moore stated MidAmerican reviewed its meter installation process and, although its meters were correctly tested, it was found additional validation measures could be put in place to minimize the likelihood of a programming error. Based on the review MidAmerican re-adjusted its back-billing procedures to collect no more than one year. Ms. Moore stated the issues that created the dockets are resolved and asked the dockets be closed. Ms. Semmler stated Staff have been in contact with the three consumers and all are satisfied and agreed the docket could be dismissed. Ms. Semmler stated Staff recommends dismissing and closing the dockets. Vice-Chairman Kolbeck asked Ms. Moore to follow-up with the Commission the number of consumers that did not meet the threshold for back billing and as a result would not be held liable for the charges.

            Discussion took place on the implementation of validation measures. Chairman Johnson asked Staff to open a Rule Making Docket to review issues with customer billing.

  Chairman Johnson moved to dismiss and close Dockets CN09-002, CN10-001, and CN10-002. Motion Passed 3-0.

Pipeline Safety

1.  PS09-002   In the Matter of the Petition of the Commission Pipeline Safety Program Manager for Declaratory Ruling Regarding Whether a Pipeline Operator's Documented Maximum Allowable Operating Pressure Can Exceed the Limits in SDCL 49-41B-2.1 Without a Siting Permit. (Staff Analysts: Nathan Solem, Stacy Splittstoesser, Staff Attorney: Kara Semmler)

            Ms. Semmler stated a bill submitted to the legislature was passed and signed into law by Governor Rounds. The issue was, therefore, resolved and she recommended the docket be closed.

            Commissioner Hanson moved to dismiss the docket based on the recent legislation signed in to law. Motion passed 3-0.

Telecommunications

1.           In the Matter of the Petition for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement in Dockets TC07-112, TC07-114, TC07-115, and TC07-116  

         TC07-112           In the Matter of the Petition of McCook Cooperative Telephone Company for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

         TC07-114           In the Matter of the Petition of Kennebec Telephone Company for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

         TC07-115           In the Matter of the Petition of Santel Communications Cooperative, Inc. for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

         TC07-116           In the Matter of the Petition of West River Cooperative Telephone Company for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

            Vice-Chairman Kolbeck stated that after reviewing the case, he was comfortable making a decision today.

            Chairman Johnson moved to deny the Petition for Reconsideration. Motion passed 3-0.

2.  TC09-096   In the Matter of the Filing by Ionex Communication, North, Inc. for Approval of its Access Services Tariff. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Kara Semmler)

            Mr. Carey Roesel, Ionex Communications North, Inc. d/b/a Birch Communications (Ionex) stated adjustments were made to the original filing per staff request and the requested tariff changes now mirror the incumbent ILEC, Qwest. Ms. Semmler asked Mr. Roesel to verify the Company name. Mr. Roesel stated the filing was originally submitted as Ionex Communications, North, Inc d/b/a Birch Communications, which is what the filing should be. Ms. Terri LaBrie Baker, Staff Analyst, stated Staff recommends approval of the switched access tariff with the conditions that the rates must mirror or be lower than Qwest and any rates put into effect on November 18, 2009, that are higher than the rates approved by the Commission be refunded under SDCL 41-31-12.2.

            Chairman Johnson moved to approve the switched access tariff with Staff's conditions. Motion passed 3-0.

3.  TC10-017   In the Matter of the Application of Neutral Tandem-South Dakota, LLC for a Certificate of Authority to Provide Facilities-Based and Resold Local Exchange and Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Tim Binder, Staff Attorney: Kara Semmler)

            Mr. Rich Coit, South Dakota Telecommunications Association (SDTA), stated that SDTA was granted intervention along with South Dakota Network, LLC, at the March 23, 2010, Commission Meeting. Mr. Coit stated several questions have not been resolved in discussions with Neutral Tandem-South Dakota, LLC, and asked the Commission to hold an Evidentiary Hearing. Ms. Semmler stated it was appropriate to hold a hearing. Mr. Scott Kellogg, Neutral Tandem-South Dakota, LLC, stated the Company was not opposed to holding a hearing.

            Chairman Johnson moved to set a Procedural Schedule and Hearing. Motion passed 3-0.

4.  TC10-019   In the Matter of the Filing by Verizon Long Distance LLC for Approval of Relief of its Certification Requirement to Post Indemnity Bond. (Staff Analyst: Dave Jacobson, Staff Attorney: Kara Semmler)

TC10-020   In the Matter of the Filing by Verizon Enterprise Solutions LLC for Approval of Relief of its Certification Requirement to Post Indemnity Bond. (Staff Analyst: Dave Jacobson, Staff Attorney: Kara Semmler)    

Mr. Dave Jacobson, Staff Analyst, stated Staff recommends approval of the request for termination of Verizon's requirement to post an indemnity bond for both of its entities with the condition that Verizon be restricted from offering any prepaid services, including prepaid calling cards, and not accept or require any deposits or advance payments without prior approval of the Commission. Mr. Jacobson stated he spoke with Verizon and it agrees to the restrictions.

         Vice-Chairman Kolbeck moved to grant the request to withdraw the indemnity bond for Dockets TC10-019 and TC10-020 and to amend the certificate of authority to include pre-payment restrictions. Motion passed 3-0.

There being no further business, at the hour of 9:55 a.m., the South Dakota Public Utilities Commission Meeting adjourned. The next Commission Meeting is scheduled for April 20, 2010.

/S/Stephanie Harmon       
Stephanie Harmon
Administrative Secretary
April 6, 2010