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South Dakota Public Utilities Commission Meeting
November 8, 2016, at 9:30 A.M. CST
Room 413, Capitol Building
Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING

Chairman Chris Nelson called the meeting to order. Present were: Commissioner: Kristie Fiegen; Commission Attorneys: Karen Cremer and Adam de Hueck; Commission Advisor: Greg Rislov; Staff Attorney: Kristen Edwards; Staff Analysts: Joseph Rezac, Eric Paulson, Brittany Mehlhaff, and Lorena Reichert; Consumer Affairs Supervisor: Deb Gregg; Finance Manager: Cindy Kemnitz; and Staff: Katlyn Gustafson.

Also present were:
Brett Koenecke, May, Adam, Gerdes & Thompson LLP, representing Clarity Telecom, LLC dba Vast Broadband; and Bob Mercer, reporter.

Joining the meeting by telephone were:
Commissioner: Gary Hanson; Diane Votino, Bob Jared, Tom Gesell, and Byrce Book, MidAmerican Energy Company; Talbot Wieczorek, Gunderson, Palmer, Nelson & Ashmore, LLP, representing MCC Telephony of the Midwest, Inc. dba Mediacom; Al Brogan, NorthWestern Corporation dba NorthWestern Energy; Mary Sisak, Blooston, Mordkofsky, Dickens, Duffy & Prendergast, LLP, representing Brookings Municipal Telephone dba Swiftel Communications; Dillon Wright, Uda Law Firm P.C., representing Juhl Energy, Inc.; Michelle Owens, Blackfoot Communications, Inc.

Administration

1.     Approval of the minutes of the Commission meeting held on October 26, 2016. (Staff: Tina Douglas)

     Commissioner Fiegen moved to approve the minutes of the Commission meeting held on October 26, 2016. 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 53 contacts since the last report was prepared for the October 26, 2016 Commission meeting. Nine contacts involved telecommunication services, ten contacts involved electrical services, three contacts were related to natural gas services, two contacts were related to gas and electric services, seven contacts were related to wireless service, five contacts were related to the Do Not Call Registry, two contacts were related to the Dakota Access Pipeline and 15 contacts were related to issues not regulated by the PUC. Complaints received in 2014: 1,914 of the 1,916 have been resolved. Complaints received in 2016: 1,233 of the 1,252 have been resolved.

Electric

1.     EL16-021     In the Matter of the Complaint by Juhl Energy, Inc. against NorthWestern Corporation dba NorthWestern Energy for Establishing a Purchase Power Agreement (Staff Analysts: Darren Kearney, Joseph Rezac, Jon Thurber; Staff Attorneys: Kristen Edwards, Amanda Reiss)

Mr. Dillon Wright, representing Juhl Energy, Inc. (Juhl), asked that the Commission grant Juhl’s request for confidential treatment. Mr. Al Brogan, NorthWestern Corporation dba NorthWestern Energy, stated NorthWestern Energy had no objection to Juhl’s request. Ms. Kristen Edwards, staff attorney, also stated staff had no objection.

     Commissioner Fiegen moved to grant Juhl’s Request for Confidential Treatment. Motion carried 3-0.

Natural Gas

1.     NG16-011     In the Matter of the Filing by MidAmerican Energy Company for Approval of Tariff Revisions Regarding the Addition of a Producers of Renewable Gas Transportation Service (Staff Analysts: Brittany Mehlhaff, Joseph Rezac; Staff Attorney: Amanda Reiss)

Ms. Diane Votino, MidAmerican Energy Company (MidAmerican), asked that the Commission approve MidAmerican’s tariff revisions with an effective date of November 9, 2016. Ms. Brittany Mehlhaff, staff analyst, recommended that the Commission approve MidAmerican’s request.

     Commissioner Nelson moved to approve the tariff revisions with an effective date of November 9, 2016.Motion carried 3-0.

Telecommunications

1.     In the Matter of the Failure of Certain Telecommunications Companies to Timely Pay their Gross Receipts Tax (Finance Manager: Cindy Kemnitz)

Ms. Cindy Kemnitz, Finance Manager, stated that Stratus Networks Inc. and The People’s Operator USA LLC had sent in payment. Ms. Kemnitz requested that Stratus Networks Inc. and The People’s Operator USA LLC be removed from the list. Ms. Kemnitz stated that the following companies have failed to timely pay their gross receipts tax as required by SDCL 49-1A:

Long Distance Providers:
Gold Line Telemanagement Inc.
Net One International Inc.

VoIP Providers:
TTUSA Acquisition Inc.

Wireless Providers:
Defense Mobile Corporation
Ztar Mobile Inc.

Ms. Kemnitz requested that the Commission issue an Order to Show Cause to the above companies, for failure to timely pay their gross receipts tax as required by SDCL 49-1A.

     Commissioner Nelson moved to issue an Order to Show Cause as to why the Commission should not fine, and/or suspend or revoke the Certificates of Authority of each of these companies for failure to pay the requisite gross receipts tax.Motion carried 3-0.

2.     TC16-009     In the Matter of the Application of Clarity Telecom, LLC dba Vast Broadband for an Amended Certificate of Authority (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

Mr. Brett Koenecke, May, Adam, Gerdes & Thompson LLP, representing Clarity Telecom, LLC dba Vast Broadband (Clarity), asked that the Commission allow Clarity to withdraw its application. Ms. Mary Sisak, Blooston, Mordkofsky, Dickens, Duffy & Prendergast, LLP, representing Brookings Municipal Telephone dba Swiftel Communications and Mr. Talbot Wieczorek, Gunderson, Palmer, Nelson & Ashmore, LLP, representing MCC Telephony of the Midwest, Inc. dba Mediacom did not object to Clarity’s request. Ms. Kristen Edwards, staff attorney, recommended that the Commission dismiss and close the docket.

     Commissioner Hanson moved to allow Clarity to withdraw its Application and that the docket be dismissed and closed. Motion carried 3-0.

3.     TC16-053     In the Matter of the Application of Blackfoot Communications, Inc. for a Certificate of Authority to Provide Local Exchange and Interexchange Long Distance Services in South Dakota (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

Ms. Michelle Owens, Blackfoot Communications, Inc. (Blackfoot), asked that the Commission approve Blackfoot for a Certificate of Authority to Provide Local Exchange and Interexchange Long Distance Services in South Dakota. Ms. Lorena Reichert, staff analyst, recommended that the Commission grant approval to Blackfoot with the conditions that, for retail purposes, Blackfoot 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 that the applicant be subject to rural safeguards.

     Commissioner Fiegen moved to grant Blackfoot’s request for a Certificate of Authority to Provide Local Exchange and Interexchange Long Distance Services in South Dakota subject to the conditions recommended by staff. Motion carried 3-0.

There being no further business, at the hour of 9:44 a.m. the South Dakota Public Utilities Commission meeting adjourned.

 

/s/Joy Lashley        .
Joy Lashley
Administrative Assistant
PUC Email
November 8, 2016