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South Dakota Public Utilities Commission Meeting
July 27, 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: Commissioners Steve Kolbeck and Gary Hanson; Commission Attorneys John Smith and Rolayne Wiest; Commission Advisor Greg Rislov; Staff Attorneys Karen Cremer, Kara Semmler, and Ryan Soye; Staff Analysts Terri LaBrie Baker, Tim Binder, Bob Knadle, Dave Jacobson and Brittany Mehlhaff; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Demaris Axthelm.
Also present were: Margo Northrup, Riter Rogers Wattier & Northrup, representing RT Communications, Inc., Western Telephone Company, RC Communications, Inc. dba RC Services, West River Telecommunications Cooperative (Mobridge), Cheyenne River Sioux Tribe Telephone Authority, and McCook Cooperative Telephone Company.
Joining the meeting by telephone were: Tammie Aberle, Montana Dakota Utilities; Kim Pederson, Otter Tail Power Company; Jeff Decker, NorthWestern Energy: Jay Weber, Liberty-Bell, Telecom, Inc.; George Thomson Qwest; Jason Hendricks, RT Communications; Jannell Jessen, Western Telephone Company; Tim Ecklund, Consortia Consulting, representing Beresford Municipal Telephone Company and RC Communications, Inc.; Todd Hansen, Beresford Municipal Telephone Company; Scott Bostrom, RC Communications, Inc.; Paul Bergmann, Long Lines Wireless, LLC; Tracey Bandemer and Jerry Heigberger, SSTELECOM, Inc. dba ITC; Don Snyders, Kari Flannagan, Alliance Communications Cooperative, Inc., Hills Telephone Company, Inc, and Splitrock Properties, Inc; Ryan Taylor, Cutler Donahoe, representing Alliance Communications Cooperative, Inc., Hills Telephone Company, Inc, and Splitrock Properties, Inc; Mick Grosz and Bonnie Krause, West River Telecommunication Cooperative (Mobridge); Mona Thompson, Cheyenne River Sioux Tribe Telephone Authority; Paul Bergmann, Long Lines Wireless, LLC; and Dave Prazak and Bruce Gerhardsen, Otter Tail Power Company.
(NOTE: For the purpose of continuity, these minutes are not necessarily in chronological order.)
Administration
1. Approval of the Minutes of the Commission Meeting held on July 6, 2010. (Staff: Stephanie Harmon)
Vice Chairman Kolbeck moved to approve the Minutes of the Commission Meeting held on July 6, 2010. Motion passed 3-0.
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 145 contacts since the last report was prepared for the July 6, 2010, Commission Meeting. 26 contacts involved telecommunications services; 38 contacts involved electrical services; 15 contacts involved natural gas services; 14 contacts involved cell phone services; 41 contacts were related to the Do Not Call registry; 1 contact was related to the Grain Warehouse division; 1 contacts was related to the Keystone Pipeline; and 9 contacts involved issues not regulated by the Public Utilities Commission. In 2010, 1,606 of the 1,642 complaints registered have been resolved.
Electric
Ms. Tammie Aberle, Montana-Dakota Utilities Co. (MDU) provided a background on the filing. Ms. Aberle stated MDU is requesting to eliminate the time differentiation option under the short- and long-term power purchase rates given the minimal differentiation between on and off peak energy rates. Ms. Aberle stated that MDU would continue to calculate the time differentiation values and will include again when appropriate to do so. Mr. David Jacobson, Staff Analyst, stated that Staff spoke to MDU about the time differentiation option and recommended approval of the tariff revision as long as when it is applicable to come back to the time differentiation MDU does so.
Vice Chairman Kolbeck moved to approve the tariff revisions of MDU. Motion passed 3-0.
Ms. Kim Pederson, Otter Tail Power Company (OTP), provided a background on the filing. Ms. Pederson stated that there was no change to the budget or incentive for the energy efficiency plan for 2010 and 2011. Mr. Brian Rounds, Staff Analyst, stated that Staff recommended approval of the updated energy demand and participation goals for 2010 and continuation of the program into 2011.
Commissioner Hanson moved to approve OTP's requests for updated savings goals for the 2010-2011 South Dakota Energy Efficiency Plan and continuation of the program into 2011. Motion passed 3-0.
Telecommunications
Mr. Tim Binder, Staff Analyst, stated that Liberty-Bell, Telecom, LLC (Liberty-Bell) filed for a certificate of authority to provide facilities-based local exchange and interexchange services in South Dakota. Mr. Binder stated that Liberty-Bell will also be filing a switched access tariff in the near future. Mr. Binder recommended approval of a certificate of authority for Liberty-Bell in Qwest service areas subject to the condition that Liberty-Bell 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, and subject to rural safeguards.
Chairman Johnson moved to grant a Certificate of Authority to Liberty-Bell in Qwest service areas subject to the condition that Liberty-Bell 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, and subject to rural safeguards. Motion passed 3-0.
Chairman Johnson stated that dockets TC10-082 and TC10-083 would be heard at the same time.
Mr. George Thomson, Qwest, stated that these filings were a result of the Commission's challenge in a previous filing to look at other rate centers in South Dakota that could be consolidated. Mr. Bob Knadle, Staff Analyst, stated that Staff recommended approval of the consolidation of the rate centers for Morristown and McIntosh and Colman and Flandreau. Mr. Knadle stated that within the Morristown and McIntosh rate centers there are some customers in North Dakota, but the consolidation would not affect those customers as they are maintained separately.
Vice Chairman Kolbeck moved to approve the request of Qwest to consolidate the Morristown and McIntosh rate centers. Motion passed 3-0.
Vice Chairman Kolbeck moved to approve the request of Qwest to consolidate the Colman and Flandreau rate centers. Motion passed 3-0.
4. TC10-084 - In the matter of the Filing for Approval of a Traffic Transit Update Amendment to Interconnection Agreement Between Qwest Corporation and XO Communications Services, Inc. for the State of South Dakota . (Staff Attorney: Kara Semmler)Ms. Semmler stated that the amendment to 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 amendment to the agreement.
Commissioner Hanson moved to approve the Traffic Transit Update Amendment to Interconnection Agreement between Qwest Corporation and XO Communications Services, Inc. Motion passed 3-0.
5. In the Matter of the Request for Certification Regarding the Use of Federal Universal Service Support in Dockets TC10-033, TC10-037, TC10-040, TC10-042, TC10-043, TC10-049, TC10-051, TC10-052, TC10-053, TC10-054, TC10-058, TC10-060, TC10-68, TC10-072, TC10-073, TC10-074, and TC10-075.
Ms. Terri LaBrie Baker, Staff Analyst, stated staff recommends a letter of certification be sent to the Federal Communications Commission (FCC)and the Universal Service Administration Company (USAC).
Vice Chairman Kolbeck moved to 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 for RT Communications, Inc. Motion passed 3-0.
Mr. Binder stated staff recommends a letter of certification be sent to the FCC and USAC.
Commissioner Hanson moved to 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 for Western Telephone Company. Motion passed 3-0.
Mr. Binder stated staff recommends a letter of certification be sent to the FCC and USAC. Chairman Johnson asked the Company to explain an all customer outage that occurred in the last year. Mr. Todd Hansen, Beresford Municipal Telephone, explained that the outage occurred because of issues with Knology and only occurred when a local customer was trying to call local Knology customers.
Chairman Johnson moved to 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 for Beresford Municipal Telephone Company. Motion passed 3-0.
Ms. LaBrie Baker stated staff recommends a letter of certification be sent to the FCC and USAC.
Commissioner Hanson moved to 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 for RC Communications, Inc. dba RC Services. Motion passed 3-0.
Ms. LaBrie Baker stated staff recommends a letter of certification be sent to the FCC and USAC.
Vice Chairman Kolbeck moved to 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 for SSTELECOM, Inc. dba ITC. Motion passed 3-0.
Chairman Johnson stated that docket TC10-49 would be move to the end of the agenda.
Ms. LaBrie Baker stated staff recommends a letter of certification be sent to the FCC and USAC.
Chairman Johnson moved to 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 for Alliance Communications Cooperative, Inc. Motion passed 3-0.
Ms. LaBrie Baker stated staff recommends a letter of certification be sent to the FCC and USAC.
Commissioner Hanson moved to 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 for Hills Telephone Company. Motion passed 3-0.
Ms. LaBrie Baker stated staff recommends a letter of certification be sent to the FCC and USAC.
Chairman Johnson moved to 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 for Splitrock Properties, Inc. Motion passed 3-0.
This docket was deferred at the request of RCC Minnesota, Inc.
Mr. Binder stated staff recommends a letter of certification be sent to the FCC and USAC. Commissioner Johnson asked the Company to clarify the unfilled requests on the report. Ms. Bonnie Krause, West River Telecommunications Cooperative (Mobridge), stated that the unfilled requests are due to working with the BIA to get the proper certification for the property in order to get the requests completed.
Vice Chairman Kolbeck moved to 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 for West River Telecommunications Cooperative (Mobridge). Motion passed 3-0.
This docket was deferred at the request of McCook Cooperative Telephone Company.
Mr. Binder stated staff recommends a letter of certification be sent to the FCC and USAC.
Chairman Johnson moved to 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 for Cheyenne River Sioux Tribe Telephone Authority. Motion passed 3-0.
Ms. LaBrie Baker stated staff recommends a letter of certification be sent to the FCC and USAC.
Commissioner Hanson moved to 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 for Farmers Mutual Telephone Company. Motion passed 3-0.
Ms. LaBrie Baker stated staff recommends a letter of certification be sent to the FCC and USAC.
Vice Chairman Kolbeck moved to 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 for Red River Telephone Association. Motion passed 3-0.
Ms. LaBrie Baker stated staff recommends a letter of certification be sent to the FCC and USAC.
Commissioner Hanson moved to 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 for Fort Randall Telephone Company. Motion passed 3-0.
Mr. Binder stated staff recommends a letter of certification be sent to the FCC and USAC.
Chairman Johnson moved to 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 for Valley Telephone Company. Motion passed 3-0.
ADDENDUM TO THE
AGENDA OF COMMISSION MEETING
Electric
1. EL10-010 - In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of a Contract with Deviations. (Staff Analysts: David Jacobson, Jon Thurber, Brittany Mehlhaff, Staff Attorney: Ryan Soye)
Mr. Jeff Decker, NorthWestern Energy, provided a background on the filing and asked for Commission approval. Mr. Jacobson stated that the costs incurred will be at the expense of the customer and recommended approval of the contract with deviation with less than 30 days notice, with an effective date of July 27, 2010.
Chairman Johnson moved to approve the contract with deviations and associated tariff revision to be effective July 27, 2010, with less than 30 days notice. Motion passed 3-0.
Telecommunications
Mr. Binder stated that Staff recommended approval of the filing and to provide a certification to FCC and USAC. A discussion took place regarding policy issues regarding an ETC designation. Ms. Rolayne Wiest, Commission Counsel, stated that Staff would meet with Long Lines Wireless, LLC to discuss these policy issues.
Chairman Johnson moved to 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 for Long Lines Wireless, LLC. Motion passed 3-0.
Items for Discussion
A copy of the presentation given by OTP regarding whether the administrative rules provide for sufficient insurance coverage and whether the Tier One standard should be made less ambiguous can be found at http://puc.sd.gov/commission/presentations/OTP072710.pdf
There being no further business, at the hour of 11:21 a.m. the South Dakota Public Utilities Commission Meeting adjourned. The next Commission Meeting is scheduled for August 10, 2010.
/S/ Stephanie Harmon
Stephanie Harmon
Administrative Secretary
August 25, 2010
