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South Dakota Public Utilities Commission Meeting


Thursday, October 16, 2003 at 1:30 P.M.
Crossroads Hotel
Huron, 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 October 15, 2003.

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 Meetings Held on August 19, 2003, September 2, and September 16, 2003. (Staff: Tina Douglas.)

Consumer Issues

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

2. In the Matter of Dismissing Dockets CN03-002 and CT03-131

CN03-002 In the Matter of the Complaint filed by Jim Holmes, Sioux Falls, South Dakota, against MidAmerican Energy Regarding Disconnection. (Staff Analyst: Jim Mehlhaff, Staff Attorney: Kelly Frazier)

Complainant states that service at a rental unit owned by the Complainant was disconnected for non-payment as a result of the Respondent failing to notify the Complainant of the past due bill. Complainant seeks to have service to the structure restored at no cost to the Complainant.

CT03-131 In the Matter of the Complaint filed by Debbie and Rich Branaugh, Tyndall, South Dakota, against Fort Randall Telephone Company Regarding Charging Business Rates for Residential Line. (Staff Analyst: Jim Mehlhaff, Staff Attorney: Kelly Frazier)

Complainants represent that the respondent is charging them the business rate for phone service on their residential line. Complainants seek to have the rate charged on their residential line restored to the residential rate and to be reimbursed for the difference they have paid, plus the costs incurred in bringing this complaint forward.

TODAY, if the above matters are resolved shall the Commission dismiss the complaints and close the dockets?

Electric

1. EL03-025 In the Matter of the Filing by Otter Tail Power Company for Approval of Tariff Revisions. (Staff Analyst: Dave Jacobson, Staff Attorney: Kelly Frazier)

Application by Otter Tail Power Company for approval to revise its tariffed Summary List of Contracts with Deviations. The existing contract with the City of Veblen will expire on November 3, 2003. Otter Tail states the new agreement does not contain any deviations from Otter Tail's currently filed tariff and therefore requests that reference to a contract with the City of Veblen be removed from the Summary List of Contracts with Deviations.

TODAY, shall the Commission approve the proposed tariff revisions?

2. EL03-026 In the Matter of the Filing by Otter Tail Power Company for Approval of Tariff Revisions. (Staff Analyst: Dave Jacobson, Staff Attorney: Kelly Frazier)

Application by Otter Tail Power Company for approval to revise its tariffed Summary List of Contracts with Deviations. The existing contract with the City of Clair City will expire on November 1, 2003. Otter Tail states the new agreement does not contain any deviations from Otter Tail's currently filed tariff and therefore requests that reference to a contract with the City of Clair City be removed from the Summary List of Contracts with Deviations.

TODAY, shall the Commission approve the proposed tariff revisions?

Natural Gas

1. NG03-004 In the Matter of the Filing by NorthWestern Energy for Approval of Tariff Revisions. (Staff Analyst: Dave Jacobson, Staff Attorney: Kelly Frazier)

Application by NorthWestern Energy to update its fuel retention percentage for natural gas transportation service. NorthWestern Energy's tariff provides that the fuel retention percentage be adjusted annually with the updated percentage to be effective October 1 of each year.

TODAY, shall the Commission approve the proposed tariff revisions?

2. NG03-005 In the Matter of the Filing by Montana-Dakota Utilities Co., a Division of MDU Resources Group, Inc. for Approval of an Extension of a Contract with Deviation with Merillat Corporation. (Staff Analyst: Dave Jacobson, Staff Attorney: Karen Cremer)

Application of Montana-Dakota Utilities Co. for approval of a contract with Deviations with Merillat Corporation. Merillat Corporation is currently served pursuant to a Contract with Deviations approved by the Commission in Docket NG98-002 which will expire on October 31, 2003. The new contract provides for service to continue to Merillat until October 31, 2004. Tariff revisions reflecting the new contract are included in the filing. Approval with less than 30 days notice was requested by Montana-Dakota.

TODAY, shall the Commission approve the Contract with Deviations and related tariff revisions on less than 30 days notice?

Telecommunications

1. TC02-064 In the Matter of the Establishment of Switched Access Revenue Requirement for Sully Buttes Telephone Cooperative, Inc. (Staff Analyst: Heather Forney, Staff Attorney: Karen Cremer)

On June 18, 2002, Sully Buttes Telephone Cooperative, Inc., filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association.

TODAY, shall the Commission establish a Switched Access Revenue Requirement for Sully Buttes Telephone Cooperative, Inc.?

2. TC02-068 In the Matter of the Establishment of Switched Access Revenue Requirement for McCook Cooperative Telephone Company. (Staff Analyst: Heather Forney, Staff Attorney: Karen Cremer)

On June 19, 2002, McCook Cooperative Telephone Company filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association.

TODAY, shall the Commission establish a Switched Access Revenue Requirement for McCook Cooperative Telephone Company?

3. TC02-074 In the Matter of the Establishment of Switched Access Revenue Requirement for Valley Telecommunications Cooperative Association. (Staff Analyst: Heather Forney, Staff Attorney: Karen Cremer)

On June 20, 2002, Valley Telecommunications Cooperative Association, Herried, South Dakota, filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association.

TODAY, shall the Commission establish a Switched Access Revenue Requirement for Valley Telecommunications Cooperative Association?

4. TC02-076 In the Matter of the Establishment of Switched Access Revenue Requirement for Brookings Municipal Telephone Company. (Staff Analyst: Heather Forney, Staff Attorney: Karen Cremer)

On June 26, 2002, the City of Brookings Municipal Telephone Department filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association.

TODAY, shall the Commission establish a Switched Access Revenue Requirement for Brookings Municipal Telephone Company?

5. TC02-078 In the Matter of the Establishment of Switched Access Revenue Requirement for Bridgewater-Canistota Independent Telephone Company. (Staff Analyst: Heather Forney, Staff Attorney: Karen Cremer)

On June 27, 2002, the Bridgewater-Canistota Telephone Company filed a switched access cost study developing a revenue requirement and minutes of use that are included in the revenue requirement and minutes of use used to determine the switched access rates for the Local Exchange Carrier Association.

TODAY, shall the Commission establish a Switched Access Revenue Requirement for Bridgewater-Canistota Independent Telephone Company?

6. TC02-086 In the Matter of the Establishment of Switched Access Rates for Fort Randall Telephone Company and Mt. Rushmore Telephone Company. (Staff Analyst: Heather Forney, Staff Attorney: Karen Cremer)

On July 1, 2002, the Fort Randall Telephone Company and Mount Rushmore Telephone Company filed a switched access cost study developing switched access rates that will be used by each company.

TODAY, shall the Commission establish a Switched Access Rate for Fort Randall Telephone Company and Mount Rushmore Telephone Company?

7. TC02-091 In the Matter of the Establishment of Switched Access Rates for South Dakota Network, LLC. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

On July 1, 2002, South Dakota Network, LLC (SDN) filed a switched access separations study, pursuant to the rules of the Commission. Revised pages to the SDN Tariff were filed to implement the change in revenue requirement.

TODAY, shall the Commission establish a Switched Access Rate for South Dakota Network, LLC?

8. TC03-094 In the Matter of the Application of BAK Communications, LLC for a Certificate of Authority to Provide Local Exchange Services in South Dakota. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)

BAK Communications, LLC has filed an application for a Certificate of Authority to provide competitive local exchange services to residential customers in South Dakota using a combination of the resale platform and the unbundled network elements provided by the incumbent local exchange carriers.

TODAY, shall the Commission approve the Certificate of Authority for Bak Communications, LLC?

9. TC03-155 In the Matter of the Application of 1-800-RECONEX, Inc. d/b/a USTel for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Keith Senger, Staff Attorney: Kelly Frazier)

1-800-RECONEX, Inc. d/b/a USTel is seeking a Certificate of Authority to provide interexchange telecommunications services in South Dakota. The Applicant is a non-facilities based provider who will provision services through both resale and UNE-P.

TODAY, shall the Commission grant the Certificate of Authority to provide interexchange services and shall the Commission amend local exchange authority for 1-800-RECONEX, Inc., d/b/a USTel?

10. TC03-159 In the Matter of the Application of Telrite Corporation for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Keith Senger, Staff Attorney: Kelly Frazier)

Telrite Corporation is seeking a Certificate of Authority to provide interexchange telecommunications services in South Dakota. The Applicant will provide its interexchange services on a resale basis utilizing the underlying facilities of Qwest, and/or Global Crossing.

TODAY, shall the Commission approve the Certificate of Authority for Telrite Corporation?

11. TC03-169 In the Matter of the Application of R2C Communications, Inc. for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Keith Senger, Staff Attorney: Kelly Frazier)

R2C Communications, Inc. is seeking a Certificate of Authority to provide interexchange telecommunications services in South Dakota. The Applicant will provide resold interexchange services including direct and dial around, toll free inbound, directory assistance, data, travel card and prepaid calling card services.

TODAY, shall the Commission approve the Certificate of Authority for R2C Communications, Inc.?

12. TC03-176 In the Matter of the Filing for Approval of an Interconnection Agreement between Midcontinent Communications and Northern Valley Communications, LLC. (Staff Attorney: Kelly Frazier)

On September 9, 2003, the Commission received a Filing for Approval of an Interconnection Agreement between Midcontinent Communications and Northern Valley Communications, LLC. According to the parties, the Agreement is a negotiated agreement which sets forth the terms, conditions and prices under which the Parties agree to provide interconnection and traffic exchange pursuant to Section 251 of the 1996 Telecommunications Act. Any party wishing to comment on the agreement may do so by filing written comments with the Commission and the parties to the agreement no later than September 29, 2003. Parties to the agreement may file written responses to the comments no later than twenty days after the service of the initial comments.

TODAY, shall the Commission approve the proposed Agreement?

13. TC03-178 In the Matter of the Implementation of the Federal Communications Commission's Triennial Review Order--90 Day Proceeding. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

On September 17, 2003, the Commission opened a docket regarding the Federal Communications Commission's Triennial Review Order. In its Triennial Review Order, the FCC found that, on a national level, "requesting carriers are not impaired without access to unbundled local circuit switching when serving DS1 enterprise customers." However, the FCC went on to find that "special circumstances may create impairment without access to unbundled local circuit switching to serve enterprise customers in particular markets." Based on this finding, the FCC stated that it would allow state commissions "90 days to petition the [FCC] to re he national finding in individual markets based on specific operational evidence regarding loop, collocation, and transport provisioning and specific economic evidence including the actual deployment of competitive switches and competitors' costs in serving enterprise customers." The Commission sought written comments on how to proceed with this 90 day proceeding. The Commission received comments from Qwest Corporation, AT&T Communications of the Midwest, Inc., Midcontinent Communications, and the South Dakota Telecommunications Association. No company indicated that it intended to challenge the presumption and no company requested that the Commission hold proceedings in the event no one challenged the presumption. Based on these comments, the Commission set a deadline of October 14, 2003, for any person or entity to file a petition with the Commission which seeks to re he FCC's finding of non-impairment.

TODAY, how shall the Commission proceed?

14. TC03-179 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and Sprint Communications Company L.P. (Staff Attorney: Kelly Frazier)

On September 18, 2003, the Commission received a filing for approval of an Amendment to an Interconnection Agreement between Qwest Corporation and Sprint Communications Company L.P. According to the parties, the Agreement is amended by adding terms and conditions for UNE-P Line Splitting as set forth in Attachment 1 and Exhibit A, attached to the Amendment. The original Agreement was approved by the Commission effective November 13, 2001, in Docket TC01-151. Any party wishing to comment on the agreement may do so by filing written comments with the Commission and the parties to the agreement no later than October 8, 2003. Parties to the agreement may file written responses to the comments no later than twenty days after the service of the initial comments.

TODAY, how shall the Commission approve the proposed Amendment?

15. TC03-181 In the Matter of the Implementation of the Federal Communications Commission's Triennial Review Order Regarding Unbundling Obligations. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

On August 21, 2003, the Federal Communications Commission (FCC) released its Triennial Review Order. Memorandum Opinion and Order, Review of the Section 251 Unbundling Obligations of Incumbent Local Exchange Carriers, CC Docket Nos. 01-338, 96-98, 98-147. In its Triennial Review Order, the FCC directed the state commissions to make certain determinations regarding the unbundling obligations of incumbent local exchange carriers. The FCC required the state commissions to make these determinations within nine months from the effective date of the Order. On September 29, 2003, the Commission opened a docket requesting that any person or entity that intends to present evidence challenging the FCC's findings of impairment regarding access to loops, dedicated transport, or local circuit switching for mass market customers shall file a notice of such intent on or before October 10, 2003. The notice shall identify each network element that the person or entity intends to challenge regarding the FCC's findings of impairment. In addition, the Commission requested written comments regarding recommendations on how the Commission should proceed. These comments are also due on or before October 10, 2003.

TODAY, how shall the Commission proceed?

16. TC03-183 In the Matter of the Request of Farmers Mutual Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

On October 1, 2003, Farmers Mutual Telephone Company (Farmers Mutual) provided information constituting Farmers Mutual's plan for the use of its federal universal service support and to otherwise verify that Farmers Mutual will use all federal universal service support received in a manner that is consistent with the federal universal service provisions of 47 U.S.C. Section 254.

TODAY, shall the Commission provide a certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the plan for the use of federal universal services support as proposed in the above docket?

Announcements

1. The next regularly scheduled Commission meeting will be held November 4, 2003, at 9:30 a.m., in Room 413, at Pierre, South Dakota.

2. The PUC offices will be closed November 11, 2003, for Veterans' Day.

3. Commission meetings are scheduled for December 2, 2003 and December 16, 2003.

4. Hearings for CT03-006 and CT03-007 are scheduled for October 24, 2003, in Sioux Falls.

_____________________
Heather K. Forney
Deputy Executive Director
heather.forney@state.sd.us
October 10, 2003