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South Dakota Public Utilities Commission Meeting
June 26, 2018, at 9:30 A.M. CDT
Room 413, Capitol Building
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Chairperson Kristie Fiegen called the meeting to order. Present were: Commissioners: Gary Hanson and Chris Nelson; Commission Attorneys: Karen Cremer and Adam de Hueck; Commission Advisor: Staff Attorneys: Amanda Reiss and Kristen Edwards; Staff Analysts: Darren Kearney, Brittany Mehlhaff, Joseph Rezac, Eric Paulson, Patrick Steffensen, and Lorena Reichert; Consumer Affairs Manager: Deb Gregg; and Staff: Katlyn Gustafson.
Present were:
Kara Semmler, May, Adam, Geredes & Thompson LLP, representing NextGen Communications, Inc., Telnyx and Montana Dakota Utilities; Jenna Howell, Shawnie Rechtenbaugh and Arin Diedrich, Department of Public Safety/South Dakota 9-1-1 Coordination Board; Rich Coit, South Dakota Telecommunications Association; Darla Rogers and Margo Northrup, Riter, Rogers, Wattier & Northrup, LLP, representing South Dakota Network, LLC, South Dakota Telecommunications Association and Valley Communications, Inc. dba Valley FiberCom; Randy Houdek, Venture Communications Cooperative, Inc.; Gordon Woods, South Dakota Intrastate Pipeline Co.; Paul Bachand, Moreno, Lee & Bachand, P.C., representing South Dakota Intrastate Pipeline Co.; and Rod Bowar, Kennebec Telephone Co., Inc.
Joining the meeting by telephone were:
Jason Grenier, Otter Tail Power Company; Dave Eide and Tom Burns, Codington-Clark Electric Cooperative, Inc.; Chris Shaw and Ryan Long; Northern States Power Company dba Xcel Energy; Andrew Moratzka, Stoel Rives LLP, representing South Dakota Intrastate Pipeline Company; Lisa Murphy, South Dakota Intrastate Pipeline Company; Tamie Aberle, Garret Senger, Travis Jacobson and Bob Morman, Montana-Dakota Utilities Co.; Andrew Singer and Kim Scovill, NextGen Communications, Inc.; Jason Topp, Qwest Corporation dba CenturyLink QC; Jeff Olson, Red River Rural Telephone Association dba Red River Communications; Marlene Bennett, Consortia Consulting, representing Red River Rural Telephone Association dba Red River Communications; and Pat Mastel, Midcontinent Communications.
(NOTE: For the purpose of continuity, these minutes are not necessarily in chronological order.)
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 65 contacts since the last report was prepared for the June 12, 2018, Commission meeting.
Thirteen contacts involved telecommunication services, 24 contacts were related to electrical services, five contacts were related to natural gas service, one contact was related to gas and electric service, six contacts were related to wireless service, seven contacts were related to the Do Not Call Registry, two contacts were related to the TransCanada/Keystone Pipeline and seven 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 2018: 630 of the 648 have been resolved.
Electric
1. EL18-022 In the Matter of Otter Tail Power Company’s 2017 South Dakota Energy Efficiency Plan Status Report and 2018 Annual Filing to Update the Energy Efficiency Adjustment Rider (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)
Mr. Jason Grenier, Otter Tail Power Company (Otter Tail), asked that the Commission approve Otter Tail’s 2017 Energy Efficiency Plan Status Report, approve the 2017 Financial Incentive of $134,700, approve the proposed Energy Efficiency Adjustment Factor of $0.00155/kWh with an effective date of July 1, 2018. Ms. Amanda Reiss, staff attorney, recommended that the Commission approve Otter Tail’s request.
Commissioner Fiegen moved to approve Otter Tail Power Company’s 2017 Energy Efficiency Plan Status Report, approve 2017 Financial Incentive of $134,700, and approve the proposed Energy Efficiency Adjustment Factor of $0.00155/kWh with an effective date of July 1, 2018. Motion carried 3-0.
2. EL18-025 In the Matter of the Joint Request for Service Rights Exception between Codington-Clark Electric Cooperative, Inc., and H-D Electric Cooperative, Inc. (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)
Mr. Tom Burns, Codington-Clark Electric Cooperative, Inc. (Codington-Clark), asked that the Commission approve the requested service rights exception between Codington-Clark and H-D Electric Cooperative, Inc. Ms. Amanda Reiss, staff attorney, recommended that the Commission approve the request.
Commissioner Hanson moved to approve the requested service rights exception between Codington-Clark Electric Cooperative and H-D Electric Cooperative. Motion carried 3-0.
3. EL18-027 In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of Deferred Accounting for Certain Biomass Transaction Costs (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen; Staff Attorney: Kristen Edwards)
Mr. Ryan Long, Northern States Power Company dba Xcel Energy (Xcel), asked that the Commission allow Xcel to use deferred accounting and establish regulatory assets for costs incurred as a result of the termination of the two biomass and one biogas power purchase agreements. Ms. Brittany Mehlhaff, staff analyst, recommended that the Commission approve Xcel’s request.
Commissioner Nelson moved to allow Xcel Energy to use deferred accounting and establish regulatory assets for costs incurred as a result of the termination of the two biomass and one biogas power purchase agreements. Motion carried 3-0.
4. EL18-028 In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Extension of Test Period (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen; Staff Attorney: Kristen Edwards)
Mr. Ryan Long, Northern States Power Company dba Xcel Energy (Xcel) asked that the Commission approve the Petition for Extension of a Test Period. Ms. Brittany Mehlhaff, staff analyst, recommended that the Commission approve Xcel’s request.
Commissioner Nelson moved to approve the Petition for Extension of a Test Period. Motion carried 3-0.
Hydrocarbon Pipelines
1. HP09-001 In the Matter of the Application by TransCanada Keystone Pipeline, LP for a Permit under the South Dakota Energy Conversion and Transmission Facility Act to Construct the Keystone XL Project. (Staff Attorney: Kristen Edwards)
Mr. William Taylor, Taylor Law Firm, representing TransCanada Keystone Pipeline, LP, (Keystone), asked that the Commission approve the bond. Ms. Kristen Edwards, staff attorney, recommended that the Commission approve Keystone’s request.
Commissioner Hanson moved to issue an order approving the bond. Motion carried 3-0.
Natural Gas
1. NG17-009 In the Matter of the Application of South Dakota Intrastate Pipeline Company for Authority to Increase its Natural Gas Rates (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen, Eric Paulson; Staff Attorneys: Kristen Edwards, Amanda Reiss)
A lengthy discussion took place for docket NG17-009. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2018, June 26, 2018, recording located at: http://puc.sd.gov/commission/media/2018/puc06262018.mp3.
Commissioner Nelson moved to grant the Joint Motion for Approval of Settlement Stipulation and approve the rates, tariff sheets, terms and conditions stipulated therein. Motion carried 3-0.
Telecommunications
1. TC17-073 In the Matter of Telnyx's Failure to Timely Pay the Gross Receipts Tax (Finance Manager: Cindy Kemnitz; Staff Attorney: Kristen Edwards)
A lengthy discussion took place for docket TC17-073. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2018, June 26, 2018, recording located at: http://puc.sd.gov/commission/media/2018/puc06262018.mp3 .
Commissioner Fiegen moved to grant the joint motion to dismiss and close the docket with the joint stipulation.
Commissioner Nelson moved to amend the motion by removing any reference to the stipulation. Motion failed 1-2. Commissioners Fiegen and Hanson dissenting.
Main motion carried 3-0.
2. TC18-012 In the Matter of the Application of Intermedia Voice Services, Inc. for a Certificate of Authority to Provide Local Exchange and Interexchange Long Distance Services in South Dakota (Staff Analyst: Eric Paulson; Staff Attorney: Amanda Reiss)
Commissioner Fiegen deferred the docket.
3. TC18-013 In the Matter of the Petition by the Department of Public Safety/9-1-1 Coordination Board for a Declaratory Ruling Determining Competitive Local Exchange Carrier Processes for Requesting 9-1-1 Traffic Delivery from Rural Local Exchange Carriers (Staff Analysts: Patrick Steffensen, Joseph Rezac; Staff Attorney: Amanda Reiss)
A lengthy discussion took place for docket TC18-013. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2018, June 26, 2018, recording located at: http://puc.sd.gov/commission/media/2018/puc06262018.mp3 .
Commissioner Hanson moved to deny NextGen’s Motion to Dismiss. Motion carried 3-0.
Commissioner Hanson moved that the Commission declare that when a competitive local exchange carrier is requesting delivery of 9-1-1 traffic from a rural exchange carrier it must submit a bonified request for interconnection as contemplated state and federal law and file a copy of the request with the Commission. Motion carried 3-0.
4. TC18-014 In the Matter of the Application of SQF, LLC for a Certificate of Authority to Provide Local Exchange in South Dakota 4 (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)
Mr. Eric Paulson, staff analyst, recommended that the Commission approve SQF, LLC’s (SQF) request for a certificate of authority for local exchange service in the non-rural areas of South Dakota with the restrictions that SQF not offer any prepaid services, including prepaid calling cards, and does not accept or require any deposits or advance payments, for retail purposes, without prior approval of the Commission and that SQF be subject to rural safeguards. Mr. Paulson also recommended that the Commission grant the waiver of ARSD 20:10:32:10.
Commissioner Nelson moved to grant SQF, LLC’s request for a certificate of authority to provide local exchange services in South Dakota and grant the waiver and approve staff’s stipulation.Motion carried 3-0.
5. TC18-015 In the Matter of the Approval of a Wireline Interconnection Agreement between Qwest Corporation dba CenturyLink QC and Peerless Network of South Dakota, LLC (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)
Mr. Jason Topp, Qwest Corporation dba CenturyLink QC, asked that the Commission approve the interconnection agreement between Qwest Corporation dba CenturyLink QC and Peerless Network of South Dakota, LLC. Ms. Kristen Edwards, staff analyst, recommended that the approve the request.
6. TC18-016 In the Matter of the Approval of a Third-Party Transit Provider Amendment to the Interconnection Agreement between Qwest Corporation dba CenturyLink QC and Peerless Network of South Dakota, LLC (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)
7. TC18-017 In the Matter of the Approval of a Carrier Partner for Interconnected VoIP Provider Amendment to the Interconnection Agreement between Qwest Corporation dba CenturyLink QC and Peerless Network of South Dakota, LLC (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)
Commissioner Nelson moved to approve the interconnection agreement in docket TC18-015 and defer dockets TC18-016 and TC18-017. Motion carried 3-0.
8. TC18-019 In the Matter of the Request of Red River Rural Telephone Association dba Red River Communications for Certification Regarding its Use of Federal Universal Service Support (Study Area: 381631) (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)
Ms. Marlene Bennett, Consortia Consulting, representing Red River Rural Telephone Association dba Red River Communications (Company), asked that the Commission grant the waiver and provide a certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the use of Federal Universal Service Support. Ms. Amanda Reiss, staff attorney, recommended that the Commission grant the Company’s request.
Commissioner Nelson moved to grant the waiver and provide a certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the use of Federal Universal Service Support and that the waiver be granted for a five year period. Motion carried 3-0.
9. TC18-022 In the Matter of the Application of Valley Communications, Inc. dba Valley FiberCom for a Certificate of Authority to Provide Local Exchange and Interexchange Long Distance Services in South Dakota (Staff Analyst: Eric Paulson; Staff Attorney: Amanda Reiss)
Mr. Pat Mastel, Midcontinent Communications (Midco), asked that the Commission grant Midco’s intervention to the docket. Ms. Margo Northrup, Riter, Rogers, Wattier & Northrup, LLP, representing Valley Communications, Inc. dba Valley FiberCom (Valley), stated Valley did not object to Midco’s request. Ms. Amanda Reiss, staff attorney, recommended that the Commission approve intervention.
Commissioner Fiegen moved to grant Midcontinent Communication’s Petition to Intervene. Motion carried 3-0.
There being no further business, at the hour of 11:13 a.m., the South Dakota Public Utilities Commission meeting adjourned.
/s/Joy Lashley .
Joy Lashley
Administrative Assistant
PUC Email
June 26, 2018
