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South Dakota Public Utilities Commission Meeting
September 15, 2015, at 9:30 A.M. CDT
Room 413, Capitol Building

Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING

Chairman Chris Nelson called the meeting to order. Present were: Commissioners: Kristie Fiegen and Gary Hanson; Commission Counsel: Rolayne Wiest and Karen Cremer; Commission Advisor: Greg Rislov; Staff Attorneys: Kristen Edwards and Adam de Hueck; Staff Analysts: Brittany Mehlhaff, Darren Kearney, Eric Paulson, Patrick Steffensen, Joseph Rezac, and Lorena Reichert; and Staff: Katlyn Gustafson.

Also present were:
Pam Bonrud and Jeff Decker, NorthWestern Corporation, dba NorthWestern Energy; Rich Coit, South Dakota Telecommunications Association; and Margo Northrup, Riter, Rogers, Wattier & Northrup, LLP, representing Venture Communications Cooperative, RC Technologies, and City of Faith.

Joining the meeting by telephone were:
Marlene Bennett, Consortia Consulting, representing City of Faith; Dave Bickett and Mary Jo Biegler, Valley Telephone Company; Pete Beithon, Otter Tail Power Company; Cheryl Clauson, Jefferson Telephone Company; Danie Williams, Deb Young, Dave Bausch, Dan Yeoman, Betsy Pahut, June Pusich-Lester, NorthWestern Corporation, dba NorthWestern Energy; Robin Thoreson, RC Technologies; Ryan Taylor, Cutler & Donahoe LLP, representing Midstate Communications, Inc.; Jim Wilcox, Northern States Power Company dba Xcel Energy; Pat Mastel, Midcontinent Communications; Russell Frisby, Stinson Leonard Street LLP, representing NextGen Communications, Inc.; Ritchy Griepp, City of Humboldt; Allen Schmeichel, City of Humboldt; and Paul Bergmann, Long Lines Wireless, LLC and Jefferson Telephone Company.

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

MINUTES OF THE COMMISSION MEETING

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 94 contacts since the last report was prepared for the September 1, 2015 Commission meeting.

9 contacts involved telecommunication services, 16 contacts involved electrical services, 2 contacts involved natural gas service, 1 contact was related to gas and electric service, 4 contacts were related to wireless service, 10 contacts were related to the Do Not Call Registry, 34 contacts were related to the Dakota Access Pipeline, 3 contacts were related to the Keystone XL Pipeline and 15 contacts were related to issues not regulated by the PUC.

1,914 of the 1,916 complaints received in 2014 have been resolved.

1,390 of the 1,419 complaints received in 2015 have been resolved.

Pipeline Safety

1.     PS15-001     In the Matter of the Filing by Commission Pipeline Safety Staff for Approval of a Penalty for a Pipeline Safety Violation by Humboldt Municipal Gas Utilities (Pipeline Safety Inspectors: Mary Zanter, Boice Hillmer; Staff Attorney: Kristen Edwards)

A lengthy discussion took place regarding docket PS15-001. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2015, September 15, 2015, recording located at:
http://puc.sd.gov/commission/media/2015/puc09152015.mp3
     
The Commission deferred action on this docket in order to have a meeting with the Humboldt Gas Board in attendance. Commissioner Fiegen noted that the person qualified to shut down the system in an emergency must remain within 30 minutes of Humboldt at all times.

Electric

1.     EL15-029     In the Matter of the Petition of Otter Tail Power Company for Approval of the Environmental Cost Recovery Rider Charge (Staff Analyst: Brittany Mehlhaff; Staff Attorney: Adam de Hueck)

Mr. Adam de Hueck, staff attorney, recommended that the Commission assess a filing fee for actual expenses related to the Environmental Cost Recovery Rider not to exceed $50,000 to account for actual expenses incurred in review of this filing commencing from the filing date.  Mr. Pete Beithon, Otter Tail Power Company (Otter Tail), stated Otter Tail had no objections to the filing fee.

     Commissioner Fiegen moved to assess a filing fee for actual expenses related to the Environmental Cost Recovery Rider not to exceed $50,000.  Motion carried 3-0.

2.     EL15-030     In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of its 2016 Transmission Cost Recovery Eligibility and Rate Adjustment (Staff Analysts: Patrick Steffensen, Eric Paulson; Staff Attorney: Kristen Edwards)

Ms. Kristen Edwards, staff attorney, recommended that the Commission assess a filing fee in the amount of up to $50,000 to account for actual expenses incurred in review of this filing commencing from the filing date. Mr. Jim Wilcox, Northern States Power Company dba Xcel Energy (Xcel) stated Xcel had no objections to the filing fee.
   
     Commissioner Hanson moved to assess a filing fee in the amount of up to $50,000 to account for actual expenses incurred in review of this filing commencing from the filing date.  Motion carried 3-0.

Gas and Electric

1.     GE15-002     In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of South Dakota Demand Side Management Plan (Staff Analyst: Darren Kearney; Staff Attorney: Kristen Edwards)

A lengthy discussion took place regarding docket GE15-002. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2015, September 15, 2015, recording located at:
http://puc.sd.gov/commission/media/2015/puc09152015.mp3

     Commissioner Nelson moved to approve the updated Energy Efficiency Adjustment rates and tariff sheets.  Motion carried 3-0.

     Commissioner Hanson moved to approve the SDDSM plan's Year 1 report and the SDDSM plan's Year 2 program changes and proposed budget including staff's recommendations. Motion carried 2-1. Commissioner Nelson dissented.

Telecommunications

1.     TC15-062     In the Matter of the Application of NextGen Communications, Inc. for a Certificate of Authority to Provide Local Exchange Services and Interexchange Long Distance Services in South Dakota (Staff Analyst: Lorena Reichert; Staff Attorney: Kristen Edwards)

Mr. Rich Coit, South Dakota Telecommunications Association (SDTA), asked that the Commission grant SDTA intervention. Mr. Russell Frisby, NextGen Communications, Inc. (NextGen), stated NextGen had no objection. Ms. Kristen Edwards, staff attorney, recommended that the Commission grant intervention to SDTA.

     Commissioner Hanson moved to grant intervention to South Dakota Telecommunications Association.  Motion carried 3-0.

2.     TC15-063     In the Matter of the Application of Midcontinent Communications for an Amended Certificate of Authority and for a Waiver of ARSD 20:10:32:15 (Staff Analyst: Lorena Reichert; Staff Attorney: Kristen Edwards)

Mr. Rich Coit, South Dakota Telecommunications Association (SDTA), and Ms. Margo Northrup Margo Northrup, Riter, Rogers, Wattier & Northrup, LLP, representing Venture Communications Cooperative (Venture Communications), requested that the Commission grant intervention. Mr. Pat Mastel, Midcontinent Communications (Midcontinent), stated Midcontinent had no objections. Ms. Kristen Edwards, staff attorney, recommended that the Commission grant intervention to SDTA and Venture Communications. 

     Commissioner Fiegen moved to grant intervention to South Dakota Telecommunications Association and Venture Communications Cooperative.  Motion carried 3-0.

3.     In the Matter of Request for Certification Regarding the Use of Federal Universal Service Support in Dockets TC15-027, TC15-042, TC15-043, TC15-046, TC15-048 and TC15-052.

     TC15-027     In the Matter of the Request of City of Faith for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Adam de Hueck)

Ms. Margo Northrup, Riter, Rogers, Wattier & Northrup, LLP, representing City of Faith, asked that the Commission provide certification to the Federal Communications and to the USAC regarding the proper use of federal universal service support. Mr. Joseph Rezac, staff analyst, recommended that the Commission grant City of Faith's request.

     TC15-042     In the Matter of the Request of RC Technologies for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Adam de Hueck)

Ms. Margo Northrup, Riter, Rogers, Wattier & Northrup, LLP, representing RC Technologies, asked that the Commission provide certification to the Federal Communications Commission and to the USAC regarding the proper use of federal universal service support. Mr. Joseph Rezac, staff analyst, recommended that the Commission grant RC Technologies' request.

     TC15-043     In the Matter of the Request of West River Cooperative Telephone Company for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Adam de Hueck)

Mr. Joseph Rezac, staff analyst, recommended that the Commission grant West River Cooperative Telephone Company's request.

     TC15-046     In the Matter of the Request of Valley Telephone Company for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Adam de Hueck)

Ms. Mary Jo Biegler, Valley Telephone Company, asked that the Commission provide certification to the Federal Communications Commission and to the USAC regarding the proper use of federal universal service support. Mr. Joseph Rezac, staff analyst, recommended that the Commission grant Valley Telephone Company's request.

     TC15-048     In the Matter of the Request of Midstate Communications, Inc. for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Adam de Hueck)

Mr. Ryan Taylor, Cutler & Donahoe LLP, representing Midstate Communications, Inc., asked that the Commission provide certification to the Federal Communications Commission and to the USAC regarding the proper use of federal universal service support. Mr. Joseph Rezac, staff analyst, recommended that the Commission grant Midstate Communications, Inc.'s request.

     TC15-052     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: Adam de Hueck)

Ms. Cheryl Clauson, Kiesling Associates LLP, representing Jefferson Telephone Company, asked that the Commission provide certification to the Federal Communications Commission and to the USAC regarding the proper use of federal universal service support. Mr. Joseph Rezac, staff analyst, recommended that the Commission grant Jefferson Telephone Company's request.

     In dockets TC15-027, TC15-042, TC15-043, TC15-046, TC15-048 and TC15-052, Commissioner Hanson moved to provide a certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the use of Federal Universal Service SupportMotion carried 3-0.

ADDENDUM TO THE
AGENDA OF COMMISSION MEETING 

Telecommunications

1.     TC15-053     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: Adam de Hueck)

Ms. Cheryl Clauson, Kiesling Associates LLP, representing Long Lines Wireless, LLC, asked that the Commission withdraw its application. Mr. Joseph Rezac, staff analyst, recommended that the Commission grant Long Lines Wireless, LLC's withdrawal.

     Commissioner Nelson moved to reconsider its decision in granting the certification and grant the request to withdraw the certification.  Motion carried 3-0.

There being no further business, at the hour of 11:29 a.m. the South Dakota Public Utilities Commission meeting adjourned.

/s/Joy Lashley     .
Joy Lashley
Administrative Assistant
PUC Email
September 15, 2015