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South Dakota Public Utilities Commission Meeting
September 2, 2014, at 1:30 P.M. CDT
Room 414, Capitol Building
Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING

Chairman Gary Hanson called the meeting to order. Present were: Commissioners: Chris Nelson and Kristie Fiegen; Commission Counsel: John Smith and Rolayne Wiest; Commission Advisor: Greg Rislov; Staff Attorneys: Karen Cremer and Kristen Edwards; Staff Analysts: Brittany Mehlhaff, Eric Paulson, Patrick Steffensen David Henry, Darren Kearney, Robin Meyerink, and Joseph Rezac; Grain Warehouse Director: Jim Mehlhaff; Consumer Affairs Supervisor: Deb Gregg; and Staff: Katlyn Gustafson

Also present were:
Jim Wilcox, Northern States Power Company dba Xcel Energy; Rich Coit, South Dakota Telecommunications Association; Margo Northrup, Riter, Rogers, Wattier & Northrup, LLP, representing Roberts County Telephone Cooperative Association and RC Communications, Inc. and Clarity Telecom, LLC; Darla Rogers, Riter, Rogers, Wattier & Northrup, LLP, representing Valley Telecommunications Cooperative Association, Inc., Venture Communications Cooperative, and Western Telephone Company; Ryan Thompson, Santel Communications Cooperative Inc.; Randy Houdek, Venture Communications Cooperative and Western Telephone Company; and Michael Lewis, self

Joining the meeting by telephone were:
Eric Pauli and Kari Valley, Northern States Power Company dba Xcel Energy; Colgan Huber, West River Cooperative Telephone Company; Jon Thurber and Amy Koenig, Black Hills Power, Inc.; Victoria Leonard, self; Jason Smiley, Gunderson, Palmer, Nelson and Ashmore, LLP, representing GCC Dakotah, Inc.; Brad Schardin, Southeastern Electric Cooperative, Inc.; John Gors, Clay-Union Electric Cooperative, Inc.; Terry Wastweet, American Edge Grain dba Madison Bin City; Larry Janes, SD One Call Director; Jason Topp and Tom Dethlefs, CenturyLink Public Communications, Inc. dba CenturyLink and Qwest Corporation dba CenturyLink QC; Kathy Ford, Arlene Morgan, Bruce Schoonover, Jamie Bernal, and Melissa Marks, Kite Parent Corp., Knology of the Plains, Inc., Knology of the Black Hills, LLC, Knology Community Telephone, Inc., Knology of South Dakota, Inc., Black Hills Fiber Systems, Inc., and Clarity Telecom, LLC; Darin LaCoursiere, Valley Telecommunications Cooperative Association, Inc.; Marlene Bennett and Kim Stumpp, Consortia Consulting, representing Valley Telecommunications Cooperative Association, Inc., Roberts County Telephone Cooperative Association, and RC Communications, Inc.; Scott Bostrum and Robin Thoreson, Roberts County Telephone Cooperative Association and RC Communications, Inc.; Paul Bergmann, Jefferson Telephone Company and Long Lines Wireless, LLC; Ryan Taylor, Cutler and Donahue, LLP, representing Midstate Communications, Inc.; Mark Benton, Midstate Communications, Inc.; Mary Sisak, Blooston, Mordkofsky, Dickens, Duffy & Prendergast, representing Brookings Municipal Telephone dba Swiftel Communications, LLP; Laura Julius, Steve Meyer, and Curt Kaurig, Brookings Municipal Telephone dba Swiftel Communications; Keith Davidson, Clarity Telecom, LLC; Howard Liberman, Drinker Biddle & Reath LLP, representing Kite Parent Corp.; and Ted Smith, Sioux Valley-Southwestern Electric Cooperative, Inc. dba Sioux Valley Energy

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

Administration

1.     Approval of the Minutes of the Ad Hoc Commission meeting held on August 13, 2014, and the Commission meeting held on August 19, 2014 (Staff: Joy Lashley)

     Commissioner Nelson moved to approve the minutes of the Ad Hoc Commission meeting held on August 13, 2014, and the Commission meeting held on August 19, 2014.  Motion carried 3-0.

Consumer Reports

1.     Status Report on Consumer Utility Inquiries and Complaints Received by the Commission (Consumer Affairs: Deb Gregg)

The Commission received a total of 62 contacts since the last report was prepared for the August 19, 2014 Commission meeting.

11 of the contacts involved telecommunication services, 19 of the contacts involved electrical services, 6 of the contacts involved natural gas service, 2 contacts involved cell phone service, 19 contacts were related to the Do Not Call Registry, and 5 contacts were related to issues not regulated by the PUC.

1,232 of the 1,262 complaints received in 2014 have been resolved.

Complaint

1.     CE14-001     In the Matter of the Complaint filed by Rod and Cheryl Goeman, Sioux Falls, South Dakota, against Xcel Energy Regarding an Electric Service Dispute (Staff Analyst: Deb Gregg; Staff Attorney: Kristen Edwards)

     Ms. Deb Gregg, stated that the complaint was resolved between Northern States Power dba Xcel Energy (Xcel) and Rod and Cheryl Goeman (complainants).  Mr. Eric Pauli, Xcel, stated Xcel had no objection to the complainants' request.  Ms. Kristen Edwards recommended that the Commission grant withdrawal of the complaint and close the docket

     Commissioner Fiegen moved to grant withdrawal of the complaint and close the docket.  Motion carried 3-0.

Electric

1.     EL14-061     In the Matter of the Application of Black Hills Power, Inc. for a Permit to Construct a 230 kV Transmission Line from Northeastern Wyoming to the Rapid City Area in South Dakota (Staff Analysts: Brian Rounds, Darren Kearney; Staff Attorney: Karen Cremer)

     Ms. Karen Cremer, staff attorney, recommended that the Commission grant all the Applications for Party Status and grant intervention.  Ms. Amy Koenig, Black Hills Power, Inc. (BHP), stated that BHP had no objections to the requests.

     Commissioner Nelson moved to grant intervention to any party that may have filed.  Motion carried 3-0.

2.     EL14-065     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Bon Homme Yankton Electric Association, Inc. and Southeastern Electric Cooperative, Inc. (Staff Analyst: David Henry; Staff Attorney: Kristen Edwards)

3.     EL14-066     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Clay-Union Electric Cooperative and Southeastern Electric Cooperative, Inc. (Staff Analyst: David Henry; Staff Attorney: Kristen Edwards)

4.     EL14-067     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Douglas Electric Cooperative, Inc. and Southeastern Electric Cooperative, Inc. (Staff Analyst: David Henry; Staff Attorney: Kristen Edwards)

5.     EL14-068      In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Charles Mix Electric Cooperative, Inc. and Southeastern Electric Cooperative, Inc. (Staff Analyst: David Henry; Staff Attorney: Kristen Edwards)

6.     EL14-069     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Southeastern Electric Cooperative, Inc. and Union County Electric Cooperative, Inc. (Staff Analyst: David Henry; Staff Attorney: Kristen Edwards)

Mr. David Henry, staff analyst, recommended that the Commission approve the proposed electric service territory boundary agreements in dockets EL14-065, EL14-066, EL14-067, EL14-068, and EL14-069.

     In Dockets EL14-065, EL14-066, EL14-067, EL14-068, and EL14-069, Commissioner Fiegen moved to approve the proposed electric service territory boundary agreements. Motion carried 3-0.

Grain

1.     GW14-001     In the Matter of the Stipulation and Settlement Agreement between American Edge Grain dba Madison Bin City and PUC Staff (Staff Analyst: Jim Mehlhaff; Staff Attorney: Kristen Edwards)

A lengthy discussion took place regarding docket GW14-001. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2014, September 2, 2014, recording located at: http://puc.sd.gov/commission/media/2014/PUC09022014.mp3.

     Commissioner Fiegen moved to approve the joint motion for approval of stipulation and settlement agreement. Motion carried 3-0.

One Call

1.     OC13-028      In the Matter of the Complaint Filed by MidAmerican Energy Company, Urbandale, Iowa, Against Stone Hill Construction, Inc., Sioux Falls, South Dakota, for an Incident Occurring on August 6, 2013, at 304 W. 3rd St., Worthing, S.D. (One Call Executive Director: Larry Janes; Staff Attorney: Kristen Edwards)

Mr. Larry Janes, SD One Call Executive Director, stated that the Enforcement Panel of the South Dakota One Call Board met on December 18, 2014 and determined that a violation of SDCL 49-7A-5 had occurred.  Stone Hill Construction did not respond to the Panel Recommendation or to the subsequent One Call Board Order, other than to attend the Spring Excavator meeting in Huron, SD, on February 28, 2014.  Mr. Janes explained that $750.00 remains due and owing in this docket and multiple attempts to reach out to Stone Hill Construction have not resulted in payment or in meeting the other requirements of the order.  Mr. Janes stated that Mr. Spencer Schenk, owner of Stone Hill Construction, was informed of the September 2, 2014, Public Utility Commission meeting, and stated by phone that Stone Hill Construction is no longer in business. Ms. Kristen Edwards, staff attorney, requested that staff be allowed to pursue a judgment. 

     Commissioner Nelson moved to bring an action in the name of the State of South Dakota pursuant to SDCL 49-7A-28 for collection of the penalties. Motion carried 3-0.

Telecommunications

1.     TC14-022      In the Matter of the Application of CenturyLink Public Communications, Inc. dba CenturyLink for an Amended Certificate of Authority to Provide Interexchange Long Distance Services as an Alternative Operator Service (Staff Analyst: Eric Paulson; Staff Attorney: Karen Cremer)

Mr. Jason Topp, CenturyLink Public Communications, Inc. dba CenturyLink (CenturyLink), requested that the Commission grant an amended certificate of authority to provide interexchange long distance services as an alternative operator service. Mr. Topp also requested waivers for ARSD 20:10:24:05(3), 20:10:24:05(4)(c), 20:10:24:05(4)(d), 20:10:24:05(5), 20:10:24:05(6), 20:10:24:05(7), and  20:10:24:05(11).  Mr. Eric Paulson, staff analyst, recommended that the Commission approve CenturyLink's requests.

     Commissioner Hanson moved to grant CenturyLink Public Communications, Inc. dba CenturyLink an Amended Certificate of Authority to Provide Interexchange Long Distance Services as an Alternative Operator Service and grant the requested waivers. Motion carried 3-0.

2.     In the Matter of Request for Certification Regarding the Use of Federal Universal Service Support in Dockets TC14-032, TC14-035, TC14-037, TC14-050, TC14-053, TC14-054, TC14-055, TC14-056, TC14-064, TC14-065, and TC14-069.

     TC14-032     In the Matter of the Request of Knology Community Telephone, Inc. for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)

A lengthy discussion took place regarding docket TC14-032. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2014, September 2, 2014, recording located at:
http://puc.sd.gov/commission/media/2014/PUC09022014.mp3.

     Docket deferred until a later Commission meeting.

     TC14-035     In the Matter of the Request of Valley Telecommunications Cooperative Association, Inc. for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

Ms. Darla Rogers, Riter, Rogers, Wattier & Northrup, LLP, representing Valley Telecommunications Cooperative Association, Inc. (Valley Telecommunications), asked that the Commission grant approval to Valley Communication's request.  Mr. Joseph Rezac, staff analyst, recommended that the Commission grant approval to Valley Telecommunication's request.

     TC14-037     In the Matter of the Request of Roberts County Telephone Cooperative Association and RC Communications, Inc. for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Robin Meyerink; Staff Attorney: Kristen Edwards)

Ms. Margo Northrup, Riter, Rogers, Wattier & Northrup, LLP, representing Roberts County Telephone Cooperative Association (Roberts County) and RC Communications, Inc. (RC Communications), asked that the Commission grant approval to Roberts County and RC Communications request. Ms. Robin Meyerink, staff analyst, recommended that the Commission grant approval to Roberts County and RC Communication's request.

     TC14-050     In the Matter of the Request of Jefferson Telephone Company for Certification Regarding Its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

Mr. Paul Bergmann, Jefferson Telephone Company (Jefferson Telephone), asked that the Commission grant approval to Jefferson Telephone's request.  Mr. Joseph Rezac, staff analyst, recommended that the Commission grant approval to Jefferson Telephone's request.

     TC14-053     In the Matter of the Request of Midstate Communications, Inc. for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Robin Meyerink; Staff Attorney: Karen Cremer)

Mr. Ryan Taylor, Cutler and Donahue, LLP, representing Midstate Communications, Inc. (Midstate), asked that the Commission grant approval to Midstate's request.  Ms. Robin Meyerink, staff analyst, recommended that the Commission grant approval to Midstate's request.

     TC14-054     In the Matter of the Request of Venture Communications Cooperative for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

Ms. Darla Rogers, Riter, Rogers, Wattier & Northrup, LLP, representing Venture Communications Cooperative (Venture Communications), asked that the Commission grant approval to Venture Communication's request.  Mr. Joseph Rezac, staff analyst, recommended that the Commission grant approval to Venture Communication's request.

     TC14-055     In the Matter of the Request of Western Telephone Company for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

Ms. Darla Rogers, Riter, Rogers, Wattier & Northrup, LLP, representing Western Telephone Company (Western Telephone), asked that the Commission grant approval to Western Telephone's request.  Mr. Joseph Rezac, staff analyst, recommended that the Commission grant approval to Western Communication's request.

     TC14-056     In the Matter of the Request of Long Lines Wireless, LLC for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

Mr. Paul Bergmann, Long Lines Wireless, LLC (Long Lines), asked that the Commission grant approval to Western Telephone's request.  Mr. Joseph Rezac, staff analyst, recommended that the Commission grant approval to Long Line's request.

     TC14-064     In the Matter of the Request of Santel Communications Cooperative for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

Mr. Ryan Thompson, Santel Communications Cooperative Inc. (Santel), asked that the Commission grant approval to Santel's request.  Mr. Joseph Rezac, staff analyst, recommended that the Commission grant approval to Santel's request.

     TC14-065     In the Matter of the Request of West River Cooperative Telephone Company for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Robin Meyerink; Staff Attorney: Kristen Edwards)

Mr. Colgan Huber, West River Cooperative Telephone Company (WRCT), asked that the Commission grant approval to WRCT's request.  Ms. Robin Meyerink, staff analyst, recommended that the Commission grant approval to WRCT's request.

     TC14-069     In the Matter of the Request of City of Brookings Municipal Telephone for Certification Regarding its Use of Federal Universal Service Support (Staff Attorney: Robin Meyerink; Staff Attorney: Kristen Edwards)

Ms. Mary Sisak, Blooston, Mordkofsky, Dickens, Duffy & Prendergast, representing Brookings Municipal Telephone dba Swiftel Communications (Brookings), asked that the Commission grant approval to Brookings' request.  Ms. Robin Meyerink, staff analyst, recommended that the Commission grant approval to Brookings' request.

     In Dockets TC14-035, TC14-037, TC14-050, TC14-053, TC14-054, TC14-055, TC14-056, TC14-064, TC14-065, and TC14-069, Commissioner Nelson moved to provide a certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the use of Federal Universal Service Support in each of the above dockets. Motion carried 3-0.

3.     TC14-073     In the Matter of the Joint Application of Kite Parent Corp. (a Subsidiary of WideOpenWest Finance, LLC) and Its Subsidiaries Knology of the Plains, Inc., Knology of the Black Hills, LLC, Knology Community Telephone, Inc., Knology of South Dakota, Inc., and Black Hills Fiber Systems, Inc. and Clarity Telecom, LLC Regarding the Sale of Telephone Exchanges to Clarity Telecom, LLC, Transfer of Certificates of Authority, Eligible Telecommunications Carrier Designation, and Relinquishment of Eligible Telecommunications Carrier Designations (Staff Analyst: Robin Meyerink; Staff Attorney: Karen Cremer)

A lengthy discussion took place regarding docket TC14-073. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2014, September 2, 2014, recording located at:
http://puc.sd.gov/commission/media/2014/PUC09022014.mp3.

     Commissioner Hanson moved to grant the joint request of the proposed purchase and sale of the WOW! South Dakota exchanges to Clarity.  Motion carried 3-0.

     Commissioner Nelson moved to grant Clarity's application for a transfer of the certificates of authority to provide local exchange and interexchange services, subject to a continuous surety bond.  Motion carried 3-0.

     Commissioner Fiegen moved to defer action on the remaining questions until a later Commission meeting.
Motion carried 3-0.

4.     TC14-075     In the Matter of the Filing Qwest Corporation dba CenturyLink QC for Approval of Revisions to its Exchange and Network Tariff No. 1 (Staff Analyst: Eric Paulson; Staff Attorney: Karen Cremer)

Mr. Jason Topp, Qwest Corporation dba CenturyLink QC (CenturyLink), asked that the Commission grant approval to CenturyLink's revisions to its Exchange and Network Tariff No. 1. Mr. Eric Paulson, staff analyst, recommended that the Commission grant CenturyLink's requests with an effective date of July 18, 2014.

     Commissioner Hanson moved to approve Qwest Corporation dba CenturyLink QC's revisions to its Exchange and Network Tariff No. 1 with an effective date of July 18, 2014.  Motion carried 3-0.

ADDENDUM TO THE
AGENDA OF COMMISSION MEETING

Electric

1.     EL14-078     In the Matter of the Joint Request for Service Rights Exception between Northern States Power Company dba Xcel Energy and Sioux Valley-Southwestern Electric Cooperative, Inc. dba Sioux Valley Energy (Staff Analyst: Darren Kearney; Staff Attorney: Kristen Edwards)

Mr. Eric Pauli, Northern States Power Company dba Xcel Energy (Xcel), requested that the Commission approve its service rights exception between Xcel and Sioux Valley-Southwestern Electric Cooperative, Inc. dba Sioux Valley Energy (Sioux Valley). Mr. Pauli stated that Sioux Valley's provision of the 400 amp 1-phase service on a homestead property will avoid unnecessary duplication of facilities, provide adequate electric service to the customer affected, and promote the efficient and economical use and development of Sioux Valley and Xcel's electric systems.  Mr. Darren Kearney, staff analyst, recommended that the Commission grant approval to Xcel's request

     Commissioner Nelson moved to approve the requested service rights exception and Service Territory Exception Agreement.  Motion carried 3-0.

There being no further business, at the hour of 3:31 p.m. the South Dakota Public Utilities Commission meeting adjourned.

/S/Joy Lashley
Joy Lashley
Administrative Assistant
PUC Email
September 2, 2014