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South Dakota Public Utilities Commission Meeting


Tuesday, December 2, 2003 at 9:30 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 December 1, 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 Meeting Held on November 4, 2003. (Staff: Tina Douglas.)

Consumer Issues

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

2. CE03-003 In the Matter of the Complaint filed by John Reints, Rapid City, South Dakota, against Black Hills Power Regarding its Flat Monthly Charge. (Staff Analyst: Jim Mehlhaff, Staff Attorney: Kelly Frazier)

On October 21, 2003, the Commission received a complaint filed by John Reints, Rapid City, South Dakota, against Black Hills Power Regarding its Flat Monthly Charge. The Complainant is requesting that the Commission prevent Black Hills Power from charging its minimum flat monthly fee for service. On October 23, 2003, the Commission received a "Petition To Amend Complaint To Add Punitive Damages". On November 3, 2003, Black Hills Power filed a Motion To Deny Complainant's Motion To Add Punitive Damages. Staff scheduled Complaint's Motion To Add Punitive Damages for consideration at the November 4, 2003 meeting and sent Complainant notice per a copy of the agenda. Complainant did not appear at the November 4, 2003, meeting. The Commission voted unanimously to deny Complainant's October 23, 2003, Motion To Add Punitive Damages. The Commission did not hear Black Hills Power's Motion To Dismiss at the November 4, 2003, meeting. On November 18, 2003, the complainant filed a third motion, requesting that the Commission reconsider its decision to deny his Motion To Add Punitive Damages on the basis that he had not received adequate notice.

TODAY, shall the Commission reconsider its decision to deny Complainant's Motion To Add Punitive Damages? AND, shall the Commission grant Black Hills Power's October 29, 2003, Motion To Dismiss?

2. CN03-003 In the Matter of the Complaint filed by John Reints, Rapid City, South Dakota, against Montana-Dakota Utilities Co. Regarding its Flat Monthly Charge. (Staff Analyst: Jim Mehlhaff, Staff Attorney: Kelly Frazier)

On October 29, 2003, the Commission received a complaint filed by John Reints, Rapid City, South Dakota, against Montana-Dakota Utilities Co. Regarding its Flat Monthly Charge. The Complainant is requesting that the Commission prevent Montana Dakota-Utilities Co. from charging its minimum flat monthly fee for service. On November 5, 2003, Montana-Dakota Utilities filed a Motion To Dismiss. On November 13, 2003, Complainant filed a Complainant's Response To Respondent's Motion To Dismiss and Complainant's Petition To Amend Complaint.

TODAY, shall the Commission grant MDU's Motion To Dismiss? AND, the Commission grant Complainant's Petition To Amend Complaint to include costs and attorney's fees?

Electric

1. EL03-027 In the Matter of the Filing by Xcel Energy for Approval of its 2002 Economic Development Annual Report and 2003 Economic Development Plan. (Staff Analyst: Steve Wegman, Staff Attorney: Kelly Frazier)

On October 6, 2003, the Commission received a filing from Xcel Energy in accordance with Docket EL91-004 requesting: (1) approval of its 2002 economic development report; and (2) approval of its 2003 economic development budget.

TODAY, shall the Commission approve Xcel Energy's 2002 economic development report and it's 2003 economic development budget?

2. EL03-028 In the Matter of the Joint Request for an Electric Service Territory Boundary Change between e Electric Cooperative, Inc. and Black Hills Power. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)

On November 3, 2003, e Electric Cooperative, Inc. ( e) and Black Hills Power (BHP) submitted a joint request for Commission approval to exchange electric service territory. The exchange includes the following service territory: Lots 2, 3, 4, 5, 6, and 7, located in Spruce Mountain Estates No. 2, all of which are located in Section 24 of Township 6 North, Range 4 East, Black Hills Meridian, Lawrence County, South Dakota, would be transferred from BHP territory to e territory; and Lots 1, 6, and 5, located in Spruce Mountain Ranches, all of which are located in Section 18 of Township 6 North, Range 5 East, Black Hills Meridian, Meade County, South Dakota, would be transferred from e territory to BHP territory.

TODAY, shall the Commission approve the Joint Request for an Electric Service Territory Boundary Change between e Electric Cooperative, Inc. and Black Hills Power?

3. EL03-029 In the Matter of the Filing by MidAmerican Energy Company for Approval of Tariff Revisions. (Staff Analyst: Dave Jacobson, Staff Attorney: Kelly Frazier)

Application by MidAmerican Energy for approval of tariff revisions reflecting redesign of the stub portion of both the regular bill and disconnect notice. The revisions are intended to clean up the appearance of the stub and allow for easier identification of written customer notations.

TODAY, shall the Commission approve the Tariff Revisions?

Natural Gas

1. NG03-006 In the Matter of the Filing by MidAmerican Energy Company for Approval of Tariff Revisions. (Staff Analyst: Dave Jacobson, Staff Attorney: Kelly Frazier)

Application by MidAmerican Energy for approval of tariff revisions reflecting redesign of the stub portion of both the regular bill and disconnect notice. The revisions are intended to clean up the appearance of the stub and allow for easier identification of written customer notations.

TODAY, shall the Commission approve the Tariff Revisions?

Telecommunications

1. TC01-159 In the Matter of the Application of TDI Communications, Inc. for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Attorney: Kelly Frazier)

TDI Communications, Inc. (TDI) is seeking a Certificate of Authority to provide interexchange telecommunications services throughout South Dakota. TDI proposes to acquire and resell various voice and data communications services offered by IXCs, and to package and provide these services for the specialized functions and needs of its customers. On December 12, 2001, the Commission voted unanimously to grant TDI a Certificate of Authority subject to the condition that the company maintain a continuous $25,000 bond. On November 14, 2003, the Commission received notice from the bonding company that it was cancelling the bond of TDI. Staff noticed the company of the cancellation of the bond and has not yet received a new bond.

TODAY, shall the Commission amend the Certificate of Authority of TDI to include pre-paid restrictions, effective December 13, 2003, if the company has not submitted a new bond?

2. TC01-165 In the Matter of the Analysis into Qwest Corporation's Compliance with Section 271(c) of the Telecommunications Act of 1996. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer.)

On October 25, 2001, Qwest Corporation filed with the Commission a Petition For Commission Recommendation That The Federal Communications Commission Grant Qwest Corporation Entry Into The In-Region InterLATA Market Under Section 271 Of The Telecommunications Act Of 1996. On January 15, 2003, Qwest Communications International, Inc. filed with the Federal Communications Commission (FCC) a multi-state application on behalf of itself and its subsidiaries, Qwest Corporation, Qwest LD Corporation, and Qwest Communications Corporation pursuant to Section 271 of the Communication Act of 1934, as amended, for authority to provide in-region interLATA service in New Mexico, Oregon, and South Dakota. The South Dakota Public Utilities Commission (SDPUC) issued an Order Regarding Compliance Filings and Recommendation to the FCC on February 4, 2003. The FCC released its Memorandum Opinion and Order on April 15, 2003, granting Qwest's multistate 271 application to provide in-region, interLATA services in New Mexico, Oregon, and South Dakota effective April 25, 2003. Qwest's Performance Assurance Plan (PAP) for South Dakota was filed on March 3, 2003, in Exhibit K to the Statement of Generally Available Terms and Conditions, in compliance with prior SDPUC orders. A ' July 1, 2003, meeting the Commission voted unanimously to enter into a Memorandum of Understanding with Qwest with regards to the QPAP payments. On October 31, 2003, Qwest submitted OP-5(A) for inclusion in the QPAP.

TODAY, shall the Commission approve the modifications to the QPAP? AND, how shall the Commission proceed with the six month review pursuant to section 16 of the QPAP?

3. TC03-068 In the Matter of the Application of Midcontinent Communications, Inc. for Approval to Expand its Certificate of Authority to Provide Local Exchange Service in the Service Territory of Interstate Telecommunications Cooperative, Inc. (Staff Analyst: Harlan Best Staff Attorney: Karen Cremer)

On April 17, 2003, Midcontinent Communications filed an application to amend its certificate of authority to provide local exchange service in the Webster exchange of Interstate Telecommunications Cooperative, Inc. (ITC), a rural telecommunications carrier. In the Webster exchange Midcontinent Communications will use a combination of ITC resold services and the hybrid fiber coax of its cable plant to provide primary transport for residential telephone service. Midcontinent Communications will also provide intrastate and interstate interexchange services for commercial and residential customers. Midcontinent Communications has requested interconnection pursuant to 47 U.S.C. Section 251(f)(1)(A) with ITC, requests confidential treatment of its financial information, and requests a waiver from providing service to the entire ITC service area to provide local exchange service in the Webster exchange of ITC. Interstate Telecommunications Cooperative, Inc. filed a letter to intervene on April 29, 2003. Intervention was granted at the regularly scheduled May 6, 2003, Commission meeting. A Stipulation Regarding Application for Rural Certification was filed on behalf of Midcontinent Communications and Interstate Telecommunications Cooperative, Inc. on November 12, 2003.

TODAY, shall the Commission grant Midcontinent Communications' petition to amend its certificate of authority to provide local exchange service in the rural exchange area of Webster, South Dakota? AND, shall the Commission grant Midcontinent Communications a waiver of ARSD 20:10:32:15?

4. TC03-168 In the Matter of the Application of IDT America, Corp. for a Certificate of Authority to Provide Local Exchange Services in South Dakota. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)

On August 25, 2003, IDT America, Corp filed an application for a Certificate of Authority to provide local telecommunications services in South Dakota. IDT America intends to provide facilities-based and resold local exchange telecommunications services statewide, except in those areas deemed rural and those areas of the state that are not open to competition.

TODAY, shall the Commission approve the Certificate of Authority for IDT America, Corp.?

5. 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. On October 21, 2003, the Commission issued an Order for and Notice of Deadline for Filing Petitions to Intervene; Order for and Notice of Hearing Dates; Order for Detailed Statement; and Order Requesting Comments. A regularly scheduled November 4, 2003, meeting, the Commission granted intervention to Qwest, AT&T, MCI, SDTA, Midcontinent, and McLeodUSA; granted the Joint Motion for Adoption of Batch Hot Cut Forum; issued a Protective Order; determined that the Commission will issue bench discovery requests; and ordered, that any interested person may file comments on the issues listed above on or before November 12, 2003. PrairieWave Communications, Inc., Midstate Telecom, Inc., and Northern Valley Communications, LLC all filed Petitions for Intervention on November 7, 2003. Black Hills FiberCom filed for late intervention on November 10, 2003.

TODAY, shall the Commission approve the late-filed petitions to intervene? AND, how shall the Commission proceed?

6. TC03-185 In the Matter of the Application of WDT World Discount Telecommunications Co. for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Michele Farris, Staff Attorney: Karen Cremer)

On October 15, 2003, WDT World Discount Telecommunications Co. (WDT) filed an application for a Certificate of Authority to provide telecommunications service in South Dakota. WDT intends to provide resold interexchange service, including 1+ and 101XXXX outbound dialing, 800/888 Toll-Free inbound dialing, directory assistance, data services and travel card services throughout South Dakota.

TODAY, shall the Commission approve the Certificate of Authority for WDT World Discount Telecommunications Co.?

7. TC03-186 In the Matter of the Filing for Approval of a Reciprocal Compensation Agreement between Cellco Partnership d/b/a Verizon Wireless and Black Hills FiberCom, L.L.C. (Staff Attorney: Kelly Frazier)

On October 14, 2003, the Commission received a filing of a Reciprocal Compensation Agreement between Cellco Partnership d/b/a Verizon Wireless (Verizon) and Black Hills FiberCom, L.L.C. (BHFC). According to the parties, the Agreement is made in order to put in place an arrangement for the mutual exchange of and reciprocal compensation for local telecommunications traffic in accord with the Telecommunications Act of 1996 which will supersede any previous arrangements between the parties.

TODAY, shall the Commission approve the Reciprocal Compensation Agreement?

8. TC03-188 In the Matter of the Application of Granite Telecommunications, LLC for a Certificate of Authority to Provide Interexchange Telecommunications Services and Local Exchange Services in South Dakota. (Staff Analyst: Keith Senger, Staff Attorney: Karen Cremer)

On October 17, 2003, Granite Telecommunications, LLC filed an application seeking a Certificate of Authority to provide interexchange services throughout South Dakota and local exchange services in the service area currently served by Qwest Communications Corporation. The Applicant intends to provide all forms of local exchange services including, but not limited to, basic local service and CLASS services. The applicant intends to provide switched and dedicated One Plus, Toll-Free and travel card interexchange services.

TODAY, shall the Commission grant the Certificate of Authority to Granite Telecommunications, LLC?

9. TC03-189 In the Matter of the Filing for Approval of a Reciprocal Transport and Termination Agreement between Brookings Municipal Utilities d/b/a Swiftel Communications and Midcontinent Communications. (Kelly Frazier)

On October 20, 2003, the Commission received for approval a filing of a Reciprocal Transportation and Termination Agreement between Midcontinent Communications (Midcontinent) and Swiftel Communications (Swiftel). According to the filing, the parties wish to put in place an arrangement for the mutual exchange and reciprocal compensation of telecommunications traffic in accordance with the 1996 Telecommunications Act which is intended to supersede any previous arrangements between the parties relating to such traffic.

TODAY, shall the Commission approve the Reciprocal Transport and Termination Agreement?

10. TC03-191 In the Matter of the Filing by WWC Holding Co., Inc. d/b/a CellularOne for Designation as an Eligible Telecommunications Carrier in Other Rural Areas. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

On November 5, 2003, WWC Holding Co., Inc., d/b/a CellularOne (Western Wireless) filed a petition to be designated as an eligible telecommunications carrier (ETC) for purposes of qualifying to obtain federal universal service support in the study areas of certain rural telephone companies. This petition seeks an order immediately designating Western Wireless as an ETC in the study areas of the following rural telephone companies: Golden West Telephone Cooperative Inc., James Valley Cooperative Telephone Company, Splitrock Properties Inc., Sully Buttes Telephone Cooperative Inc., Tri-County Telecom Inc., Vivian Telephone Co., West River Telecommunications Coop (Mobridge) - SD, and West River Telecommunications Cooperative - SD. On November 21, 2003, James Valley Coop Telephone, SDTA, Golden West Telecommunications Cooperative, Alliance Communications Cooperative, Inc.and Splitrock Properties, Inc., Vivian Telephone Company, Venture Communications Cooperative, Tri-County Telecom, Inc., and West River Telecommunications Cooperative (Hazen, ND) filed for intervention.

TODAY, shall the Commission grant intervention to any parties that have filed?

11. IN THE MATTER OF THE FAILURE OF CERTAIN TELECOMMUNICATIONS COMPANIES TO TIMELY FILE THE GROSS RECEIPTS TAX. (Deputy Executive Director: Heather K. Forney)

The following companies have failed to timely file their gross receipts tax as required by SDCL 49-1A:

ACSI Local Switched Services, Inc. d/b/a e.spire
All-Star Acquisition Corporation
Atlas Communications, Ltd.
Big Planet, Inc.
Cheyenne River Sioux Tribe Telephone Authority
Comtel Network, LLC
Corporate Calling Services, Inc. (aka U.S. Long Distance Inc.)
Eastern Telecommunications Inc.
Essex Communications, Inc. d/b/a eLEC Communications
ezTel Network Services, LLC
Fort Randall Telephone Company
GLD, Group Long Distance, Inc.
Glyphics Communications, Inc.
Intelecall Communications, Inc.
Intercontinental Communications Group, Inc. d/b/a Fusion Telecom / Trucker Phone
LD Exchange.com, Inc.
Long Distance Billing Services, Inc.
Maxcess, Inc.
Mt. Rushmore Telephone Company
Natel, LLC
Norstar Communications, Inc. d/b/a Business Savings Plan
NorthWestern Services Group, Inc. d/b/a NorthWestern Communications Solutions
PrairieWave Community Telephone, Inc.
QAI, Inc. d/b/a Long Distance Billing
QuantumShift Communications, Inc
S&S Communications/Alterna Cell
Sonix4U, Inc.
Special Accounts Billing Group, Inc.
Teleconnect Company
TON Services, Inc.
TransNet Connect, Inc.
UKI Communications, Inc.
United Communications HUB, Inc.
Vitcom Corporation
Western CLEC Corporation d/b/a Business Services by Cellular One

TODAY, shall the Commission issue an Order To Show Cause as to why the Commission should not fine, or suspend or revoke the Certificates Of Authority of each of these companies for failure to pay the requisite gross receipts tax?

Announcements

1. A hearing in NG02-011 is scheduled for 1:30 p.m. in Room 412, at Pierre, South Dakota.

2. The next regularly scheduled Commission meeting will be held December 16, 2003, at 9:30 a.m., in Room 412, at Pierre, South Dakota.

3. The PUC offices will be closed November 28, 2003, for the Thanksgiving Holiday.

4. Commissioners and Staff will be attending the SDTA/PUC Forum in Sioux Falls December 8 and 9, 2003.

5. The PUC offices will be closed December 25, 2003 for Christmas.

6. Commission meetings are scheduled for January 6 and 20, 2004.

_____________________
Heather K. Forney
Deputy Executive Director
heather.forney@state.sd.us
November 25, 2003