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South Dakota Public Utilities Commission

Thursday, May 28, 1998; 10:00 A.M.
State Capitol Building, Room 412
Pierre, South Dakota

NOTE: If you wish to join this meeting by conference call, please contact the Commission at 605- 773-3201 by 5:00 p.m. on Wednesday, May 27, 1998.

NOTE: Notice is further given to persons with disabilities that this Commission meeting is being held in a physically accessible place. If you have special needs, please notify the Commission and we will make all necessary arrangements.

AGENDA OF THE COMMISSION MEETING

Administration

1. Approval Of The Minutes Of The Commission Meeting Held On May 12, 1998. (Staff: Shirleen Fugitt.)

Consumer Affairs

1. Status Report On Consumer Utility Inquiries And Complaints Recently Received By The Commission. (Consumer Representative: Leni Healy.)

The Commission has received 831 consumer contacts during 1998. 107 contacts have been received since the May 12, 1998, Commission meeting.

TELECOMMUNICATIONS: 97 of the contacts involved telecommunication issues. 42 contacts involved the unauthorized switching of long distance service; 15 contacts involved the unauthorized billing for services; 8 contacts concerned wrong rates; 7 billing issues were addressed; 3 contacts concerned service issue; 3 contacts concerned untimely transfer of service; 2 contacts did not get service when promised; 2 contacts involved sex line calls; 2 contacts concerned disconnections; 2 contacts were classified as "other"; and the remaining contacts involved above ground cable, access fees, deposit, directory listing, excess construction, fees, Lifeline, penalty fees, PIC fees, termination fees, and refusal to disconnect.

ELECTRICITY: 4 of the contacts involved electricity issues. 2 of the contacts concerned disconnections; and the remaining issues were a fallen wire and "other."

NATURAL GAS: 6 contacts involving natural gas were reported. 3 contacts concerned disconnections; and the remaining issues were property damage, price, and unrecorded payment.

A total of 512 complaints have been resolved informally during 1998.

Electric

1. EL98-004 IN THE MATTER OF THE PETITION FOR DECLARATORY RULING FILED BY THE CITY OF PIERRE REGARDING A TRANSMISSION LINE. (Staff Engineer: Martin Bettmann. Staff Attorney: Camron Hoseck.)

On March 19, 1998, the City of Pierre filed a Petition for Declaratory Ruling regarding a transmission line. "The City of Pierre, because of the need for greater reliability has approved a route for a new 115kV transmission line. This line will interconnect Western Area Power Administration's Oahe- Pierre 115kV line with the City's Ash Substation, resulting in a loop system. This system will increase the reliability of the City's power supply by having the ability to "back up" any system outage that may occur." It is the City's assumption, based on the Siting Act, SDCL 49-41B-2.1, that no siting permit will be required for the construction of the line and therefore, requests that the Commission issue a declaratory ruling upholding its assumption. A hearing in this matter was held April 22, 1998.

TODAY, what is the Commission's decision?

Natural Gas

1. NG98-003 IN THE MATTER OF THE COMPLAINT FILED BY DUANE MUXEN, DOLAND, SOUTH DAKOTA, AGAINST PEOPLES NATURAL GAS REGARDING SALES TAX EXEMPTION. (Staff Analyst: Dave Jacobson. Legal Intern: Ethan Meaney.)

On May 5, 1998, the Commission received a complaint from Duane Muxen, Doland, South Dakota, against People's Natural Gas regarding sales tax exemption. The complainant explains that he has filed the certificate of [tax] exemption and has a letter from the Department of Revenue indicating that all requirements were met to qualify for sales tax exemption. The company has indicated that a separate meter is required. The complainant is asking for sales tax exemption.

TODAY, does the Commission find probable cause of an unlawful or unreasonable act, rate, practice or omission to go forward with this complaint and serve it upon the Respondent?

Telecommunications

1. TC97-160 IN THE MATTER OF THE APPLICATION OF STERLING INTERNATIONAL FUNDING, INC. D/B/A RECONEX FOR A CERTIFICATE OF AUTHORITY TO PROVIDE LOCAL EXCHANGE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

On September 24, 1997, Sterling International Funding, Inc. filed for a Certificate of Authority to provide local exchange services in South Dakota. "Petitioner, Sterling International Funding, d/b/a ReconexTM is affiliated with Ameritel Corporation, a residential dial tone service provider which has been operating since 1992. As the leader in the prepaid dial tone industry, Applicant and its affiliate, have provided high quality local exchange service to thousands of customers. Reconex is an alternative telephone company primarily furnishing prepaid local dial tone service to individuals who have had their telephone disconnected, have voluntarily left their local exchange provider, or for money management reasons prefer to address their local calling needs in a prepaid fashion at a set fee, which represents their bottom line cost. Applicant proposes to offer service in the area and exchanges currently being served by the existing incumbent local exchange carrier, U S WEST."

TODAY, shall the Commission grant a Certificate Of Authority to Sterling International Funding, Inc.?

2. TC97-171 IN THE MATTER OF THE APPLICATION OF NEW MEDIA TELECOMMUNICATIONS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

On October 27, 1997, New Media Telecommunications, Inc. filed for a Certificate of Authority to operate as a telecommunications company within the state of South Dakota. "New Media, proposes to provide intrastate long distance service in conjunction with its interstate long distance service." On May 20, 1998, the company requested withdrawal of its application.

TODAY, shall the Commission grant the withdrawal of the application?

3. TC97-196 IN THE MATTER OF THE APPLICATION OF ECLIPSE COMMUNICATIONS CORPORATION FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES, INCLUDING LOCAL EXCHANGE SERVICE, IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

On December 19, 1997, Eclipse Communication Corp. filed for a Certificate of Authority to operate as a telecommunications company within the state of South Dakota. "Eclipse seeks authority to provide a full range of interexchange services, including MTS, toll free 800/888, calling card, debit card and operator-assisted services. Applicant also seeks authority to provide resold and facilities-based local exchange services to consumers on a statewide basis.... Eclipse may also offer local services by utilizing the switching and transport capacity of other existing telecommunications providers pursuant to negotiated or tariffed arrangements. Eclipse proposes to provide service to all exchanges currently served by U S WEST."

TODAY, shall the Commission grant a Certificate Of Authority to Eclipse Communications Corp.?

4. TC97-199 IN THE MATTER OF THE FILING BY RT COMMUNICATIONS, INC. FOR DESIGNATION AS AN ELIGIBLE TELECOMMUNICATIONS CARRIER. (Staff Analyst: Harlan Best. Staff Attorney: Camron Hoseck.)

On December 23, 1997, RT Communications applied for designation as an eligible telecommunications carrier. "RT Communications, Inc. pursuant to 47 U.S.C. 214(e) and 47 C.F.R. 54.201 hereby seeks designation as an eligible telecommunications carrier within the local exchange areas that constitute its service area in South Dakota". A hearing in this matter was held on March 26, 1998, in Pierre, South Dakota.

TODAY, shall the Commission approve the filing by RT Communications, Inc.?

5. TC98-057 IN THE MATTER OF THE APPLICATION OF SMARTSTOP, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Dave Jacobson. Staff Attorney: Karen Cremer.)

On February 23, 1998, SmartStop, Inc. filed for a Certificate of Authority to operate as a telecommunications company within the state of South Dakota. "Applicant seeks...authority to serve, 800 WATS, and 1+ prepaid telecard services COCOT (COPT) and IPP to the general public....Such authority would include twenty-four hour origination and termination intrastate interLATA and intraLATA calls for customers, and to operate as a Travel and Prepaid Card reseller and Independent Payphone Provider (IPP). SmartStop is not applying for authorization to provide Operator services."

TODAY, shall the Commission grant a Certificate of Authority to SmartStop, Inc.?

6. TC98-072 IN THE MATTER OF THE PETITION OF FORT RANDALL TELEPHONE COMPANY FOR APPROVAL OF EXTENSION OF WAIVER OF SWITCHED ACCESS RULES. (Staff Analyst: Harlan Best. Staff Attorney: Camron Hoseck.)

On April 21, 1998, the Commission received a petition by Fort Randall Telephone Company for an extension of the waiver of the switched access rules granted in TC96-125. Fort Randall requests that it be allowed to continue charging a seven cent switched access rate in all seven of its exchanges until the Commission approves a new rate based on a cost study conducted for all of Fort Randall's exchanges using calendar year 1998 data. Fort Randall did not acquire the Tabor, Centerville and Viborg exchanges until June 1, 1997, and it does not have 12 months of actual operations and traffic information for these three exchanges. No parties have filed to intervene.

TODAY, shall the Commission grant the request from Fort Randall Telephone Company?

7. TC98-073 IN THE MATTER OF THE PETITION OF VIVIAN TELEPHONE COMPANY FOR APPROVAL OF EXTENSION OF WAIVER OF SWITCHED ACCESS RULES. (Staff Analyst: Harlan Best. Staff Attorney: Camron Hoseck.)

On April 21, 1998, the Commission received a petition by Vivian Telephone Company for an extension of the waiver of the switched access rules granted in TC96-125. Vivian requests that it be allowed to continue charging a seven cent switched access rate in the eight exchanges it purchased from U S WEST Communications until the Commission approves a new rate based on a cost study using calendar year 1998 data. This request has no effect on the switched access rate being charged in the Vivian exchanges purchased from GTE. Vivian did not acquire the Lesterville, Gregory, Witten and Clearfield exchanges until June 1, 1997, and it does not have 12 months of actual operations and traffic information for these four exchanges. No companies have filed to intervene.

TODAY, shall the Commission grant the request by Vivian Telephone Company?

8. TC98-075 IN THE MATTER OF THE FILING BY U S WEST COMMUNICATIONS, INC., FOR APPROVAL OF INTERCONNECTION AGREEMENT BETWEEN COMMCHOICE, LLC AND U S WEST COMMUNICATIONS, INC. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

On April 23, 1998, U S WEST Communications, Inc. filed for approval by the Commission the negotiated Interconnection Agreement between U S WEST Communications, Inc. and COMMCHOICE, LLC. No parties have commented.

TODAY, shall the Commission approve the agreement?

9. TC98-078 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR INTRASTATE TELEPHONE COMPANY, INC. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

On April 27, 1998, Intrastate Telephone Company filed its Switched Access Revenue Requirement. Intrastate Telephone Company filed a switched access cost study developing a revenue requirement that is included in the revenue requirement used to determine the switched access rates for the Local Exchange Carrier Association (LECA). Intrastate Telephone Company joined LECA on March 3, 1998. No companies have filed to intervene.

TODAY, shall the Commission assess a filing fee for actual costs not to exceed $100,000?

10. TC98-079 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR STATELINE TELECOMMUNICATIONS, INC. (Staff Analyst: Bob Knadle. Staff Attorney: Karen Cremer.)

On April 27, 1998, Stateline Telecommunications, Inc. filed its Switched Access Revenue Requirement. Stateline Telecommunications, Inc. filed a switched access cost study developing a revenue requirement that is included in the revenue requirement used to determine the switched access rates for the Local Exchange Carrier Association (LECA). Stateline Telecommunications, Inc. joined LECA on April 17, 1998. No parties have filed to intervene.

TODAY, shall the Commission assess a filing fee for actual costs not to exceed $100,000?

11. TC98-080 IN THE MATTER OF THE COMPLAINT FILED BY DON HERTZ, CUSTER, SOUTH DAKOTA, AGAINST AT&T COMMUNICATIONS OF THE MIDWEST, INC. REGARDING LONG DISTANCE TELEPHONE RATES. (Consumer Representative: Leni Healy. Staff Attorney: Karen Cremer.)

On April 23, 1998, the Commission received a complaint from Don Hertz, Custer, South Dakota, against AT&T of the Midwest, Inc. regarding long distance telephone rates. To get Mr. Hertz back as a long distance customer AT&T promised a per minute rate of 10 cents and a $50.00 check. The January bill from AT&T was not at the promised 10 cents per minute. AT&T informed Mr. Hertz to contact the "Resolution Office". Mr. Hertz has never heard from it. The February billing from AT&T was still not at the promised 10 cent per minute rate. Mr. Hertz is now with another carrier. Mr. Hertz requests that the Commission "require AT&T to charge me the 10 cents a minute that they told me I would be paying if I switched back to AT&T...." This item was heard and voted on at the May 12, 1998, meeting.

TODAY, shall the Commission reconsider its decision? If the Commission does reconsider, does the Commission find probable cause of an unlawful or unreasonable act, rate, practice or omission to go forward with this complaint and serve it upon Respondent?

12. TC98-081 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR BRIDGEWATER-CANISTOTA INDEPENDENT TELEPHONE COMPANY. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

On April 29, 1998, Bridgewater-Canistota Independent Telephone Company filed its Switched Access Revenue Requirement. Bridgewater-Canistota Independent Telephone Company filed a switched access cost study developing a revenue requirement that is included in the revenue requirement used to determine the switched access rates for the Local Exchange Carrier Association (LECA). Bridgewater-Canistota Independent Telephone Company joined LECA on April 7, 1998. No parties have filed to intervene.

TODAY, shall the Commission assess a filing fee for actual costs not to exceed $100,000?

13. TC98-082 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR KENNEBEC TELEPHONE COMPANY. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

On April 29, 1998, Kennebec Telephone Company filed its Switched Access Revenue Requirement. Kennebec Telephone Company filed a switched access cost study developing a revenue requirement that is included in the revenue requirement used to determine the switched access rates for the Local Exchange Carrier Association. No parties have filed to intervene.

TODAY, shall the Commission assess a filing fee for actual costs not to exceed $100,000?

14. TC98-083 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR WESTERN TELEPHONE COMPANY. (Staff Analyst: Bob Knadle. Staff Attorney: Karen Cremer.)

On April 29, 1998, Western Telephone Company filed its Switched Access Revenue Requirement. Western Telephone Company filed a switched access cost study developing a revenue requirement that is included in the revenue requirement used to determine the switched access rates for the Local Exchange Carrier Association. No parties have filed to intervene.

TODAY, shall the Commission assess a filing fee for actual costs not to exceed $100,000?

15. TC98-084 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR VALLEY TELECOM COOPERATIVE ASSOCIATION AND VALLEY CABLE & SATELLITE COMMUNICATIONS. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

On April 30, 1998, Valley Telecom Cooperative Association and Valley Cable & Satellite Communications filed its Switched Access Revenue Requirement. Valley Telecom Cooperative Association and Valley Cable & Satellite Communications filed a switched access cost study developing a revenue requirement that is included in the revenue requirement used to determine the switched access rates for the Local Exchange Carrier Association (LECA). Valley Cable & Satellite Communications joined LECA on March 25, 1998. No parties have filed to intervene.

TODAY, shall the Commission assess a filing fee for actual costs not to exceed $100,000?

16. TC98-085 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR MIDSTATE TELEPHONE COMPANY AND HEARTLAND COMMUNICATIONS, INC. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

On April 30, 1998, Midstate Telephone Company and Heartland Communications, Inc. filed its Switched Access Revenue Requirement. Midstate Telephone Company and Heartland Communications, Inc. filed a switched access cost study developing a revenue requirement that is included in the revenue requirement used to determine the switched access rates for the Local Exchange Carrier Association (LECA). Heartland Communications, Inc. joined LECA on March 23, 1998. No parties have filed to intervene.

TODAY, shall the Commission assess a filing fee for actual costs not to exceed $100,000?

17. TC98-086 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR SANBORN TELEPHONE COOPERATIVE AND SANCOM, INC. (Staff Analyst: Bob Knadle. Staff Attorney: Karen Cremer.)

On April 30, 1998, Sanborn Telephone Cooperative and SANCOM, Inc. filed its Switched Access Revenue Requirement. Sanborn Telephone Cooperative and SANCOM, Inc. filed a switched access cost study developing a revenue requirement that is included in the revenue requirement used to determine the switched access rates for the Local Exchange Carrier Association (LECA). SANCOM, Inc. joined LECA on February 26, 1998. No parties have filed to intervene.

TODAY, shall the Commission assess a filing fee for actual costs not to exceed $100,000?

18. TC98-087 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR VENTURE COMMUNICATIONS, INC. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

On April 30, 1998, Venture Communications, Inc. filed its Switched Access Revenue Requirement. Venture Communications, Inc. filed a switched access cost study developing a revenue requirement that is included in the revenue requirement used to determine the switched access rates for the Local Exchange Carrier Association (LECA). Venture Communications, Inc. joined LECA on April 17, 1998. No parties have filed to intervene.

TODAY, shall the Commission assess a filing fee for actual costs not to exceed $100,000?

19. TC98-088 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR HANSON COMMUNICATIONS, INC. D/B/A MCCOOK TELECOM. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

On April 30, 1998, Hanson Communications, Inc. d/b/a McCook Telecom. filed its Switched Access Revenue Requirement. Hanson Communications, Inc. d/b/a McCook Telecom filed a switched access cost study developing a revenue requirement that is included in the revenue requirement used to determine the switched access rates for the Local Exchange Carrier Association (LECA). Hanson Communications, Inc. d/b/a McCook Telecom joined LECA on February 23, 1998. No parties have filed to intervene.

TODAY, shall the Commission assess a filing fee for actual costs not to exceed $100,000?

20. TC98-089 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR SPLITROCK PROPERTIES, INC. (Staff Analyst: Bob Knadle. Staff Attorney: Karen Cremer.)

On April 30, 1998, Splitrock Properties, Inc. filed its Switched Access Revenue Requirement. Splitrock Properties, Inc. filed a switched access cost study developing a revenue requirement that is included in the revenue requirement used to determine the switched access rates for the Local Exchange Carrier Association (LECA). Splitrock Properties, Inc. joined LECA on March 26, 1998. No parties have filed to intervene.

TODAY, shall the Commission assess a filing fee for actual costs not to exceed $100,000?

21. TC98-090 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR THE LOCAL EXCHANGE CARRIER ASSOCIATION (LECA). (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

On April 30, 1998, The Local Exchange Carrier Association (LECA) filed its Switched Access Rates. On behalf of its member companies, LECA submitted revised tariff pages implementing the cost study revenue requirement that was filed by each member company. No parties have filed to intervene.

TODAY, shall the Commission assess a filing fee for actual costs not to exceed $100,000?

22. TC98-091 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR JAMES VALLEY COOPERATIVE TELEPHONE COMPANY AND ACCENT COMMUNICATIONS, INC. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

On April 30, 1998, James Valley Cooperative Telephone Company and Accent Communications, Inc. filed its Switched Access Revenue Requirement. James Valley Cooperative

Telephone Company and Accent Communications, Inc. filed a switched access cost study developing a revenue requirement that is included in the revenue requirement used to determine the switched access rates for the Local Exchange Carrier Association (LECA). Accent Communications,

Inc. joined LECA on March 10, 1998. No parties have filed to intervene.

TODAY, shall the Commission assess a filing fee for actual costs not to exceed $100,000?

23. TC98-092 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR STOCKHOLM-STRANDBURG TELEPHONE CO. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

On April 30, 1998, Stockholm-Strandburg Telephone Co. filed its Switched Access Revenue Requirement. Stockholm-Strandburg Telephone Co. filed a switched access cost study developing a revenue requirement that is included in the revenue requirement used to determine the switched access rates for the Local Exchange Carrier Association. No parties have filed to intervene.

TODAY, shall the Commission assess a filing fee for actual costs not to exceed $100,000?

24. TC98-093 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR ROBERTS COUNTY TELEPHONE COOPERATIVE ASSOCIATION AND RC COMMUNICATIONS, INC. (Staff Analyst: Bob Knadle. Staff Attorney: Karen Cremer.)

On April 30, 1998, Roberts County Telephone Cooperative Association and RC Communications, Inc. filed its Switched Access Revenue Requirement. Roberts County Telephone Cooperative Association and RC Communications, Inc. filed a switched access cost study developing a revenue requirement that is included in the revenue requirement used to determine the switched access rates for the Local Exchange Carrier Association (LECA). RC Communications, Inc. joined LECA on April 14, 1998. No parties have filed to intervene.

TODAY, shall the Commission assess a filing fee for actual costs not to exceed $100,000?

25. TC98-094 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR MOBRIDGE TELECOMMUNICATIONS COMPANY. (Staff Analyst: Harlan Best. Staff Attorney: Karen Cremer.)

On May 1, 1998, Mobridge Telecommunications Company filed its Switched Access Revenue Requirement. Mobridge Telecommunications Company filed a switched access cost study developing a revenue requirement that is included in the revenue requirement used to determine the switched access rates for the Local Exchange Carrier Association (LECA). Mobridge Telecommunications Company requests that the Commission allow the use of GVNW's cost study model as opposed to the Commission model for revenue requirement and rate development. No parties have filed to intervene.

TODAY, shall the Commission grant a waiver to use GVNW's cost study and assess a filing fee for actual costs not to exceed $100,000?

Announcements

  1. The Commission office will be closed on Monday, May 25, 1998, in observance of Memorial Day.
  2. Commissioners and Staff will be attending the MARC Conference June 21-24, 1998, in Overland Park, Kansas.
  3. The next regularly scheduled Commission meeting will be held Thursday, June 11, 1998, at 10:00 a.m. in Room 412 of the State Capitol Building.

______________________
Sue Cichos
Business Manager
May 21, 1998