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South Dakota Public Utilities Commission Meeting

Tuesday, November 1, 2005, at 1:30 P.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 October 31, 2005. The lines are limited and are given out on first come/first serve basis. Ultimately, if you wish to participate in the Commission Meeting and a line is not available you may have to appear in person.

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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 COMMISSION MEETING

Administration

1. Approval of the Minutes of the Commission Meeting Held on September 27, 2005 and October 4, 2005. (Staff: Tina Douglas.)

Consumer Reports

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

Complaints

1. CT05-003 In the Matter of the Complaint filed by Eldon Lindquist on behalf of Pierre Radio Paging & Telephone, Pierre, South Dakota, against Qwest Corporation Regarding a Billing Dispute. (Staff Analysts: Keith Senger/Jim Mehlhaff, Staff Attorney: Sara Greff)

On April 14, 2005, Eldon Lindquist, representing Pierre Radio Paging & Telephone, filed a formal complaint against Qwest Corporation. Complainant claims that he has been seeking reimbursement for payments that according to an FCC decision were unlawfully collected from his company by the respondent. Complainant seeks to have the Public Utilities Commission help him resolve this matter by determining if the respondent made reasonable attempts to resolve this matter and reviewing the overcharges and helping to determine a fair settlement.

TODAY, shall the Commission Dismiss the Complaint and Close the Docket?

Electric

1. EL05-024 In The Matter of the Joint Request for an Electric Service Rights Exception Between Sioux Valley-Southwestern Electric Cooperative, Inc. d/b/a Sioux Valley Energy and the City of Madison. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

On September 29, 2005, Sioux Valley-Southwestern Electric Cooperative, Inc. d/b/a Sioux Valley Energy (SVE) and the City of Madison filed for Commission approval a "Joint Request for Electric Service Territory Exception." The agreement between the City of Madison and SVE would permit the City of Madison to provide service to a new home for Paul and Lora Ersland in the Southeast quarter of Section 31, Township 107 North, Range 52 West in SVE's service area. Paul and Lora Ersland have no objections to approval of the agreement.

TODAY, shall the Commission Grant the Joint Request for an Electric Service Rights Exception?

2. EL05-025 In The Matter of the Joint Request for an Electric Service Rights Exception Between Otter Tail Power Company and Whetstone Valley Electric Cooperative. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

On October 6, 2005, Whetstone Valley Electric Cooperative (Whetstone) and Otter Tail Power Company (OTP) filed for Commission approval a request for a Service Rights Exception. The agreement between Whetstone and OTP would permit Whetstone to provide service to two rail switches for Western Consolidated Cooperative in its grain handling operation in the SE1/4 of Section 7, Township 120 North, Range 49, West in OTP's service area. Western Consolidated Cooperative has no objections to approval of the agreement.

TODAY, shall the Commission Grant the Joint Request for an Electric Service Rights Exception?

Natural Gas

1. NG05-011 In the Matter of the Filing by NorthWestern Corporation d/b/a NorthWestern Energy for Approval of a Refund Plan. (Staff Analyst: Dave Jacobson, Staff Attorney: Sara Greff)

NorthWestern Corporation=s gas tariff requires that for any refund in excess of $500,000, the company must submit a refund plan for review and approval by the Commission. In this filing, NorthWestern is requesting Commission approval of a refund plan for a $958,629.26 refund received from Northern Natural Gas Company. NorthWestern proposes to credit the Company's Adjustment Clause demand true-up in the sum of $879,025.41 and the Company's Adjustment Clause commodity true-up in the sum of $79,603.85. The filing states that by using these Adjustment Clause true-up mechanisms, the refund dollars will be returned to customers, with interest payable by the Company, over the next 12-month period through the normal purchased gas adjustment monthly filings process.

TODAY, shall the Commission Approve the Refund Plan?

Telecommunications

1. TC04-213 In the Matter of the Filing by Brookings Municipal Utilities d/b/a Swiftel Communications for Designation as an Eligible Telecommunications Carrier. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

On October 28, 2004, Brookings Municipal Utilities d/b/a Swiftel Communications (Brookings) filed a Petition for Designation as an Eligible Telecommunications Carrier (ETC) for wireless personal communications service (PCS) operations in South Dakota. Brookings is authorized by the Federal Communications Commission (FCC) as a wireless PCS carrier in the partitioned area of the Minneapolis-St. Paul Metropolitan Trading Area (MTA), MTA012, which encompasses Brookings, Lake, Lincoln, McCook, Minnehaha, Moody, Turner, Clark, Codington, Deuel, Grant, Hamlin, and Roberts counties; in the Sioux Falls Basic Trading Area (BTA), BTA422; in the Watertown BTA 464; in the partitioned area of the Des Moines-Quad Cities, Iowa MTA032 which encompasses Bon Homme, Clay, Union, and Yankton counties; and in the Sioux City, Iowa BTA421. Brookings requests that it be designated as an ETC in portions of its FCC authorized service area. For the local exchange carrier wire centers that are only partially covered by Brookings' authorized service area, Brookings requests that the Commission designate as an ETC the portion of the wire center where Brookings is authorized to provide service. For wire centers which overlap into South Dakota, Brookings requests that the Commission designate Brookings in the portion of those wire centers that are within South Dakota. Interstate Telecommunications Cooperative and Sioux Valley Telephone filed Petitions for Intervention on November 18, 2004. The South Dakota Telecommunications Association filed a Petition to Intervene on November 19, 2004. Intervention was granted to all parties at the November 30, 2004, Commission Meeting.

TODAY, shall the Commission Designate Brookings Municipal Utilities d/b/a Swiftel Communications as an Eligible Telecommunications Carrier?

2. TC05-112 In the Matter of the Application of Navigator Telecommunications, LLC for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

On July 29, 2005, Navigator Telecommunications, LLC filed an application seeking a Certificate of Authority to provide interexchange services throughout South Dakota on a resale basis. The Applicant intends to offer MTS, travel services and Toll-Free services to residential and business customers.

TODAY, shall the Commission Grant a Certificate of Authority to Navigator Telecommunications, LLC?

3. TC05-161 In the Matter of the Application of Midcontinent Communications for Approval to Expand its Certificate of Authority to Provide Local Exchange Service in the Wolsey Exchange of the Service Territory of Santel Communications Cooperative. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

On August 26, 2005, Midcontinent Communications (Midcontinent) filed an application to amend its certificate of authority to provide local exchange service and long distance services in the Wolsey exchange of Santel Communications Cooperative, Inc. (Santel), a rural telecommunications carrier. In the Wolsey exchange Midcontinent will use Santel resold services for residential telephone services. In addition to providing local exchange services for commercial and residential customers, Midcontinent also will provide intrastate interexchange services for commercial and residential customers and interstate interexchange services for commercial and residential customers. Midcontinent has requested interconnection pursuant to 47 U.S.C. Section 251(f)(1)(A) with Santel, requests confidential treatment of its financial information, and requests a waiver from providing services to the entire Santel service area to provide local exchange service in the Wolsey exchange of Santel. The South Dakota Telecommunications Association (SDTA) filed a Petition to Intervene on September 16, 2005. Intervention was granted to SDTA at the September 27, 2005, Commission Meeting. On October 6, 2005, Santel Communications Cooperative, Inc. filed a Petition for Intervention.

TODAY, shall the Commission Grant Intervention to Santel Communications Cooperative, Inc.?

4. In the Matter of the Approval of Agreements in Dockets TC05-170, TC05-171, TC05-172, TC05-176 and TC05-179

TC05-170 In the Matter of the Filing for Approval of an InterMTA Factor Agreement between Alliance Communications Cooperative, Inc. and Wireless Alliance, LLC. (Staff Attorney: Sara Greff)

On September 9, 2005 the Commission received a filing for the approval of an InterMTA Factor Agreement between Alliance Communications Cooperative and Wireless Alliance, LLC. According to the parties, Wireless Alliance, LLC has chosen to opt into the "Reciprocal Interconnection, Transport and Termination Agreement" between Alliance Communications Cooperative and WWC License, LLC which was approved by the Commission on December 17, 2004.

TC05-171 In the Matter of the Filing for Approval of an InterMTA Factor Agreement between Alliance Communications Cooperative, Inc. and Rural Cellular Corporation. (Staff Attorney: Sara Greff)

On September 9, 2005 the Commission received a filing for the approval of an InterMTA Factor Agreement between Alliance Communications Cooperative and Rural Cellular Corporation. According to the parties, Rural Cellular Corporation has chosen to opt into the "Reciprocal Interconnection, Transport and Termination Agreement" between Alliance Communications Cooperative and WWC License, LLC which was approved by the Commission on December 17, 2004.

TC05-172 In the Matter of the Filing for Approval of an Interim Period Agreement Between Qwest Corporation and XO Communications Services, Inc. (Staff Attorney: Sara Greff)

On September 12, 2005 the Commission received a filing for the approval of an Interim Period Agreement Amendment between Qwest Corporation and XO Communications Services, Inc. According to the parties, this Amendment revises the already existing Interim Period Agreement, which sets forth the process and procedures in place to address issues raised by XO's reorganization.

TC05-176 In the Matter of the Filing for Approval of a Master Services Agreement between Qwest Corporation and Budget Phone, Inc. (Staff Attorney: Sara Greff)

On September 22, 2005, the Commission received a filing for the approval of Qwest's Master Services Agreement. Qwest Corporation and Budget Phone, Inc have executed a commercial agreement related to the provisions of switching and shared transport. The Master Services Agreement is being filed in compliance with the Commission's Order dated October 29, 2004 in Docket TC04-144. In its cover letter Qwest stated that, "Qwest has disputed and will continue to dispute, that the (Master Services) Agreement and similar commercial arrangements between Qwest and CLECs are ICAs that must by filed with the Commission for approval pursuant to Section 252 of the Act. Notwithstanding this position, and without waiving any of its rights or arguments on these issues, Qwest is filing the Agreement as set forth above. Qwest is making the filing solely to avoid further controversy or disputes with the Commission regarding the appropriate legal status of the Agreement. . . ."

TC05-179 In the Matter of the Filing for Approval of an Adoption Agreement between Rural Cellular Corporation and Santel Communications Cooperative, Inc. (Staff Attorney: Sara Greff)

On October 3, 2005, the Commission received a filing for approval of the adoption of a Reciprocal Interconnection, Transport and Termination Agreement between Santel Communications Cooperative and Rural Cellular Corporation. According to the parties, Rural Cellular Corporation has decided to opt into the "Reciprocal Interconnection, Transport and Termination Agreement" between Santel Communications Cooperative, Inc. and WWC License LLC.

TODAY, shall the Commission Approve the Agreements?

5. In the Matter of the Filing for Approval of Amendments to Agreements in Dockets TC05-174 and TC05-178

TC05-174 In the Matter of the Filing for Approval of an Amendment to the Interim Period Agreement Between Qwest Corporation and XO Communications Services, Inc. (Staff Attorney: Sara Greff)

On September 12, 2005 the Commission received a filing for the approval of an Interim Period Agreement Amendment between Qwest Corporation and XO Communications Services, Inc. According to the parties, this Amendment revises the already existing Interim Period Agreement, which sets forth the process and procedures in place to address issues raised by XO's reorganization.

TC05-178 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and DIECA Communications, Inc. d/b/a Covad Communications Company. (Staff Attorney: Sara Greff)

On September 23, 2005, the Commission received a filing for the approval of a Line Splitting Amendment to an Interconnection Agreement between Qwest Corporation and DIECA Communications, Inc. d/b/a Covad Communications Company. According to the parties, the Agreement adds terms and conditions to the Line Splitting Agreement between Qwest and DIECA Communications, Inc. d/b/a Covad Communications.

TODAY, shall the Commission Approve the Amendments to the Agreements?

6. TC05-173 In the Matter of the Petition of Fiber Ring Revenue-Pooling Association for Approval of Amended Revenue-Pooling Arrangement Documents (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

On September 12, 2005, the Fiber Ring Revenue-Pooling Association (FRRPA) filed a Petition to amend and update the original FRRPA filing (TC00-084) and to seek Commission approval of the amended SONET Ring Provider Agreements, Ring User Local Exchange Company Agreements, and amended FRRPA Administrative Rules and Bylaws. The original Agreements between the Local Exchange Companies (LEC) will expire at the end of 2005. FRRPA LEC participants and South Dakota Network, LLC have negotiated and executed new contracts that become effective January 1, 2006.

TODAY, shall the Commission Approve the Amended Revenue-Pooling Arrangement Documents?

7. In the Matter of the Filing for Approval of Terms and Conditions for Interconnection, Unbundled Network Elements, Ancillary Services and Resale of Telecommunications Services in Dockets TC05-175 and TC05-177

TC05-175 In the Matter of the Filing for Approval of Terms and Conditions for Interconnection, Unbundled Network Elements, Ancillary Services and Resale of Telecommunications Services between Qwest Corporation and Budget Phone, Inc. (Staff Attorney: Sara Greff)

On September 22, 2005, the Commission received a filing for the approval of a Wireline Interconnection Agreement between Qwest Corporation and Budget Phone, Inc. According to the parties, the Agreement sets forth the terms, conditions and pricing under which Qwest will provide Budget Phone, Inc. network Interconnection.

TC05-177 In the Matter of the Filing for Approval of an Agreement for Terms and Conditions for Interconnection, Unbundled Network Elements, Ancillary Services and Resale of Telecommunications Services between Qwest Corporation and DIECA Communications, Inc. d/b/a Covad Communications Company. (Staff Attorney: Sara Greff)

On September 23, 2005, the Commission received a filing for the approval of an Agreement for Terms and Conditions for Interconnection, Unbundled Network Elements, Ancillary Services and Resale of Telecommunications Services between Qwest Corporation and DIECA Communications, Inc. d/b/a Covad Communications Company. According to the parties, the Agreement sets forth the terms, conditions and pricing under which Qwest will provide DIECA Communications, Inc. d/b/a Covad Communications network Interconnection.

TODAY, shall the Commission Approve the Agreements?

8. 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:

Wireless Companies that have not filed:

Booker Communications

Mobile Communications Corp of America

New-Cell, Inc

Local Exchange Providers that have not filed:

Vitcom Corporation

Operator Service Providers that have filed, but not paid:

T-NETIX Telecommunications Services, Inc.

Long Distance Providers that have not filed or paid:

ECI Communications, Inc.

ezTel Network Services, LLC

Global Communications Consulting Corp.

Miko Telephone Communications, Inc.

North American Telephone Network LLC

Optical Telephone Corporation

PromiseVision Technology, Inc.

Radiant Telecom, Inc.

Transcommunications, Inc.

Univance Telecommunications, Inc.

 

Long Distance Providers that have filed, but not paid:

Alliance Group Services, Inc. d/b/a U.S. Republic Communications, Inc.

Better World Telecom, Inc.

D.D.D. Calling, Inc.

Dial Thru, Inc. f/k/a RDST, Inc.

Inmark, Inc. d/b/a Preferred Billing

R2C Communications, Inc.

TeleCents Communications, Inc.

Telefyne Incorporated

Total Call International, Inc.

Touch 1 Communications, Inc.

United American Technology, Inc.

W2COM International, LLC

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?

Electricity

1. EL04-016 In the Matter of the Filing by Superior Renewable Energy LLC et al. against Montana-Dakota Utilities Co. Regarding the Java Wind Project. (Staff Analysts: Bob Knadle and Keith Senger, Staff Attorneys: Karen Cremer and Sara Greff)

On May 12, 2004, Superior Renewable Energy LLC (Superior) and its wholly owned subsidiary, Java LLC, filed a complaint requesting the Commission to settle a dispute regarding the long term purchase price of electricity generated from a Qualified Facility pursuant to the Public Utility Regulatory Policy Act of 1978. The Commission granted intervention to MDU on June 8, 2004. The Commission granted intervention to MidAmerican, NorthWestern, and Black Hills at its June 22, 2004, meeting. The Commission granted intervention to Xcel on August 17, 2004. By its Second Amended Order for and Notice of Procedural Schedule and Hearing dated January 5, 2005, the hearing in this matter was scheduled to begin on March 21, 2005. On March 21, 2005, the Commission issued an order continuing the hearing until the further notice from the Commission. The parties subsequently notified the Commission that they had failed to reach a settlement and requested the hearing be rescheduled. The Commission noticed the hearing for August 2, 2005. On July 21, 2005, Superior filed a Motion for Continuance, which the Commission granted on July 28, 2005. On August 18, 2005, the Commission issued a Second Order for and Notice of Hearing Following Continuance, setting the matter for hearing on November 2, 2005. On September 16, 2005, MDU filed a Deferral Motion requesting a continuance of the matter until FERC has released its decision in Alliant Energy Corporate Services, Inc. On September 27, 2005, Superior filed a Response to Deferral Motion and Request for Affirmative Relief requesting that the Commission deny MDU's Deferral Motion and grant affirmative relief in the form of an order finding that MDU has an existing obligation and/or contract pending approval under PURPA and thus is subject to PURPA's mandatory purchase obligation and an order to show cause why MDU is not in violation of its PURPA obligations. On October 3, 2005, Staff filed a Response to MDU's Deferral Motion and MDU filed a Reply to Superior's Comments on the Deferral Motion and Request for Affirmative Relief. Superior filed a Motion for Reconsideration on October 7, 2005. On October 12, 2005, MDU filed a Reply to the Superior Motion for Reconsideration.

TODAY, shall the Commission Grant the Motion for Reconsideration? AND, shall the Commission Issue an Order Finding that MDU has an Existing Obligation and/or Contract Pending Approval under PURPA and thus is Subject to PURPA's Mandatory Purchase Obligations? AND shall the Commission Issue an Order to Show Cause to MDU?

Announcements

1. The next regularly scheduled Commission meeting will be held December 6, 2005, at 9:30 a.m. in Room 468, at Pierre, South Dakota.

2. Commission meetings are scheduled for December 20, 2005, and January 17, 2006.

3. A hearing in docket CT05-001 will be held November 7 - 9, 2005, in Room 412, State Capitol Building, Pierre. The hearing will begin at 10:00 a.m. on Monday, November 7, 2005.

4. Commissioners and Staff will be attending the National Association of Regulatory Commissioners meeting November 13 – 16, 2005.

5. A hearing in docket TC05-137 will be held December 6 – 8, 2005, in Room 468, State Capitol Building, Pierre. The hearing will begin at 1:30 p.m. on Tuesday, December 6, 2005.

6. A hearing in docket EL04-016 will be held December 13 – 16, 2005, in Room 412, State Capitol Building, Pierre. The hearing will begin at 9:00 a.m. on Tuesday, December 13, 2005.

____________________
Heather K. Forney

Deputy Executive Director

heather.forney@state.sd.us

October 25, 2005