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South Dakota Public Utilities Commission Meeting
November 9, 2010, at 9:30 A.M. CDT
Room 413, Capitol Building
Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING

Chairman Johnson called the meeting to Order. Present were: Commissioner Steve Kolbeck; Commission Attorney Rolayne Wiest; Staff Attorneys Karen Cremer, Kara Semmler, and Ryan Soye; Staff Analysts Jon Thurber; Dave Jacobson, Bob Knadle, Brian Rounds, Brittany Mehlhaff, Ross Pedersen, and Bobbi Bourk; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Demaris Axthelm.

Also present were:  Jim Parker, Diane Munns, David Badura, Vickie Wonder, and Paul Leighton, MidAmerican Energy; Kevin Kouba, Otter Tail Power Company; Brett Koenecke, May, Adam, Gerdes, & Thompson, representing Xcel Energy; Jim Wilcox, Xcel Energy; Bill Van Camp, Olinger, Lovald, McCahren & Reimers, representing AT&T; Darla Pollman Rogers, Riter, Rogers, Wattier & Northrup, representing Midstate Communications, Inc., RC Communications, Inc., Venture Communications Cooperative, Inc., Cheyenne River Sioux Tribe Telephone Authority, LECA, and South Dakota Telecommunications Association; and Chris Daugaard.

Joining the meeting by telephone were:  Commissioner Gary Hanson; John Smith, Commissioner Attorney; Talbot Wieczorek, Gunderson, Palmer Nelson & Ashmore, representing Cellco Partnership and Alltel Communications; Jeff Korn, Crexendo Business Solutions, Inc.; James Cremer, Bantz, Gosch, & Cremer, representing James Valley Wireless and Northern Valley Communications, LLC; Jim Tomlinson, David, Wright & Tremaine, representing Mobilitie, LLC; Jordan Armitage and Gene Beall, Mobilitie, LLC; Kathy Ford, Davenport, Evans, Hurwitz & Smith, LLP, representing Midcontinent Communications, and George Thomson, Qwest Communications.

(NOTE: For the purpose of continuity, these minutes are not necessarily in chronological order.)

Chairman Johnson stated that Docket NG10-008 would be heard at the end of the agenda.

Administration

  1. Approval of the Minutes of the Commission Meeting Held on October 12, 2010. (Staff: Stephanie Harmon)

         Vice Chairman Kolbeck moved to approve the minutes of the commission meeting held on October 12, 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 114 contacts since the last report was prepared for the October 26, 2010, Commission meeting. 24 contacts involved telecommunications services; 22 of the contacts involved electrical services; 16 contacts involved natural gas services; 1 contact involved gas and electric service; 15 contacts involved cell phone services; 24 contacts were related to the Do Not Call registry; 1 contact was related to Wind Energy; and 11 contacts involved issues not regulated by the Public Utilities Commission. In 2010, 2,436 of the 2,486 complaints registered have been resolved.

Electric

Chairman Johnson stated that EL10-012 and EL10-014 would be heard together.

1.      EL10-012 -  In the Matter of the Petition of Northern States Power Company dba Xcel Energy Regarding the 2011 Environmental Cost Recovery Rider and 2010 ECR Tracker Report (Staff Analysts:  Bob Knadle, Jon Thurber, Brittany Mehlhaff, Staff Attorney: Ryan Soye)

2.      EL10-014 - In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of its 2011 Transmission Cost Recovery Eligibility and Rate Adjustment (Staff Analysts:  Jon Thurber, Bob Knadle, Dave Jacobson, Brittany Mehlhaff, Staff Attorneys: Ryan Soye, Kara Semmler)

         Mr. Ryan Soye, Staff Attorney, stated that Staff would request approval of the assessment of a filing fee and provide the Executive Director authority to enter into necessary consulting contracts.

         Commissioner Hanson moved to assess a filing fee in docket EL10-012 in the amount of $50,000 in order to account for actual expenses incurred in review of the filing commencing from the filing date; and to provide the Executive Director authority to enter into necessary consulting contracts having a total amount not to exceed $40,000. Motion passed 3-0.

         Commissioner Hanson moved to assess a filing fee in docket EL10-014 in the amount of $50,000 in order to account for actual expenses incurred in review of the filing commencing from the filing date; and to provide the Executive Director authority to enter into necessary consulting contracts having a total amount not to exceed $40,000. Motion passed 3-0.

Natural Gas

1.      NG10-008 - In the Matter of the Filing by MidAmerican Energy Company for Approval of Continuation of the Incentive Gas Supply Procurement Plan (Staff Analyst: Dave Jacobson, Staff Attorney: Karen Cremer).

         Mr. Jim Parker, MidAmerican, provided a history of this filing and requested approval of its Incentive Gas Supply Procurement Plan (IGSPP) program. Mr. Dave Jacobson, Staff Analyst, discussed the memorandum submitted by staff and answered questions from the Commission. A lengthy discussion took place on the benefits of the IGSPP program.

         Commissioner Hanson moved to approve the continuation of MidAmerican's IGSPP program with the proposed revisions. Motion passed 3-0.

Telecommunications

1.      TC08-122 -  In the Matter of the Petition of Cheyenne River Sioux Tribe Telephone Authority for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, LLC. (Staff Analyst: Jon Thurber, Staff Attorney: Karen Cremer)

         Ms. Darla Pollman Rogers, representing Cheyenne River Sioux Tribe Telephone Authority, stated that all parties had reached an agreement and requested the Commission dismiss and close the docket. Ms. Karen Cremer, Staff Attorney, stated that Staff recommended dismissing the petition and closing the docket.

         Vice Chairman Kolbeck moved to dismiss the petition with prejudice and close the docket. Motion passed 3-0.

2.      TC10-088 - In the Matter of the Application of Crexendo Business Solutions, Inc. for a Certificate of Authority to Provide Interexchange Telecommunications Services and Local Exchange Services in South Dakota (Staff Analyst: Brian Rounds, Staff Attorney: Karen Cremer)

         Mr. Jeff Korn, Crexendo Business Solutions, Inc. (Crexendo), provided the Commission a history of the filing and requested Commission approval for a certificate of authority. Mr. Brian Rounds, Staff Analyst, stated that Crexendo has agreed to restrictions from providing prepaid services, including prepaid calling cards, and accepting deposits or advanced payments. Mr. Rounds stated the Crexendo does not intend to charge other carriers switched access rates. Mr. Rounds stated that Staff recommended granting Crexendo interexchange and local exchange authority, subject to rural safeguards and restrictions from providing prepaid services and accepting deposits or advanced payments.

         Chairman Johnson moved to grant Crexendo Business Solutions, Inc. a certificate of authority to provide interexchange and local exchange telecommunications services subject to rural safeguards and with the restrictions from providing prepaid services and accepting deposits or advanced payments. Motion passed 3-0.

3.      TC10-091 - In the Matter of the Application of Mobilitie, LLC for a Certificate of Authority to Provide Interexchange Telecommunications Services and Local Exchange Services in South Dakota (Staff Analyst: Bobbi Bourk, Staff Attorney: Karen Cremer)

         Mr. Jim Tomlinson, representing Mobilitie, LLC (Mobilitie), requested approval for a certificate of authority. Ms. Bobbi Bourk, Staff Analyst, provided a brief history on the docket and stated that Staff recommended granting a certificate of authority to Mobilitie to provide interexchange telecommunications services and local exchange services with restrictions from providing prepaid services and accepting deposits or advanced payments and granting the waiver of ARSD 20:10:32:10.

         Chairman Johnson moved to grant Mobilitie, LLC a certificate of authority to provide interexchange telecommunications services and local exchange services with the restrictions from providing prepaid services and accepting deposits or advanced payments and to grant the waiver of ARSD 20:10:32:10. Motion passed 3-0.

4.      TC10-093 - In the Matter of the Filing for Approval of an Amendment No. 2 to the Reciprocal Transport and Termination Agreement Between Venture Communications Cooperative, Inc. and Commnet Cellular (Staff Attorney:  Kara Semmler)

         Ms. Rogers, representing Venture Communications Cooperative, Inc., requested approval from the Commission regarding the amendment to the reciprocal transport and termination agreement between the parties. Ms. Semmler stated 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.

         Vice Chairman Kolbeck moved to approved the amendment no. 2 to the reciprocal transport and termination agreement between Venture Communications Cooperative, Inc. and Commnet Cellular. Motion passed 3-0.

Rule Making

1.      RM05-002 - In the Matter of Revisions and/or Additions to the Commission's Switched Access Rules Codified in ARSD 20:10:27 through 20:10:29 (Staff Attorney: Karen Cremer)

         Ms. Rolayne Wiest, Commission Council, provided a background on the filing and recommended some changes to the draft rules that will be submitted to the Legislative Research Council if the Commission chooses to move to the formal rule making process. Ms. Wiest recommended the Commission move forward to a formal rule making.

         Chairman Johnson moved to proceed to a formal rule making with the suggested changes. Motion passed 3-0.

ADDENDUM TO THE
AGENDA OF COMMISSION MEETING

Telecommunications

1.  TC10-090 - In the Matter of the Petition of Cellco Partnerships and its Subsidiaries and Affiliates to Amend and Consolidate Eligible Telecommunications Carrier Designations in the State of South Dakota and to Partially Relinquish ETC Designations. (Staff Analyst: Brian Rounds, Staff Attorney: Kara Semmler)

         Mr. Wieczorek, representing Cellco Partnerships and its Subsidiaries and Affiliates, stated that he had been in contact with the intervening parties regarding the Protective Order submitted to the Commission and requested Commission approval of the Order.

         Vice Chairman Kolbeck moved to approve the Protective Order. Motion passed 3-0.

There being no further business, at the hour of 10:47 a.m. the South Dakota Public Utilities Commission meeting adjourned. The next Commission meeting is scheduled for November 23, 2010.

/S/Stephanie Harmon       
Stephanie Harmon
Administrative Secretary
November 23, 2010