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South Dakota Public Utilities Commission Meeting

Tuesday, February 28, 2006, at 1:30 P.M.

State Capitol Building, Room 468

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 February 27, 2006. 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.

NOTE: To listen to the Commission Meeting live please go to the PUC's Web site www.puc.sd.gov and click on the LIVE button on the home page. The Commission meetings are archived on the PUC's Web site under the Commission Actions tab and then click on the LISTEN button on the page.

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 Meetings Held on January 17 and January 31, 2006, and the Ad Hoc Meeting Held on January 27, 2006. (Staff: Tina Douglas.)

Consumer Reports

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

Electricity

1. EL05 022 In the Matter of the Application by Otter Tail Power Company on behalf of Big Stone II Co Owners for an Energy Conversion Facility Permit for the Construction of the Big Stone II Project. (Staff Analysts: Bob Knadle, Martin Bettmann, and Nathan Solem, Staff Attorney: Karen Cremer)

On July 21, 2005, the Commission received an Application for a Construction Permit for an Energy Conversion Facility from Otter Tail Power Company on behalf of the Project co owners; Central Minnesota Municipal Power Agency; Great River Energy; Heartland Consumers Power District; Montana Dakota Utilities Co., a Division of MDU Resources Group, Inc.; Otter Tail Corporation d/b/a Otter Tail Power Company; Southern Minnesota Municipal Power Agency; and Western Minnesota Municipal Power Agency. The proposed Energy Conversion Facility is a nominal 600 MW coal fired electric generating facility and associated facilities, which the Project co owners have named Big Stone II, to be located on an industrial site adjacent to the existing Big Stone Plant unit I in Grant County, South Dakota. The intervention deadline is 60 days after the date the application is filed pursuant to ARSD 20:10:22:40. On August 25, 2005, Clean Water Action filed a Petition to Intervene. The South Dakota Chapter Sierra Club and Union of Concerned Scientists filed Applications for Party Status on September 16, 2005. On September 19, 2005, Applications for Party Status were filed by Mary Jo Stueve, Minnesotans for an Energy Efficient Economy, Izaak Walton League of America - Midwest Office, and the Minnesota Center for Environmental Advocacy. Party Status was granted to all who filed at the September 27, 2005, commission meeting. Staff requests that the Commission authorize, pursuant to SDCL 49-1-8.2, the execution by the Executive Director of a contract for consulting services to the Staff.

TODAY, shall the Commission Authorize the Executive Director to Enter into a Consulting Contract?

2. EL05-028 In the Matter of the Application of Xcel Energy for a Facilities Permit to Build 9.65 Miles of the Buffalo Ridge to Brookings County 115 kV Transmission Line, Two 0.4 Mile Brookings County to White 345 kV Transmission Lines, the Brookings County Substation and to Add Facilities to the White Substation. (Staff Analysts: Martin Bettmann/Bob Knadle, Staff Attorney: Karen Cremer)

On December 2, 2005, Northern States Power Company, a Minnesota Corporation d/b/a Xcel Energy, submitted an application for a Construction Permit to build the following facilities: 1. Two new 0.4 mile 345 kilovolt (kV) transmission lines connecting the Western Area Power Administration White Substation located southeast of White, South Dakota, and a new Xcel Energy Brookings County Substation; 2. A new 345 kV/115kV Brookings County Substation located approximately 0.4 miles east of the White Substation; 3. A new 9.65 mile 115 kV transmission line from the Brookings County Substation to the Minnesota/South Dakota border; and 4. Improvements to the White Substation to accommodate the new 345 kV lines. The application comprises the western portion of the Buffalo Ridge - White transmission project which connects the White Substation to the Buffalo Ridge Substation southeast of Lake Benton, Minnesota. On February 2, 2006, the Brookings County Commission late filed an Application for Party Status.

TODAY, shall the Commission Find There is Good Cause to Grant the Late-Filed Application for Party Status?

3. EL06-001 In the Matter of the Filing by MidAmerican Energy Company for Approval of Tariff Revisions. (Staff Analyst: Keith Senger, Staff Attorney: Sara Greff)

On January 9, 2006, MidAmerican Energy Company filed revisions to its South Dakota Electric Tariff No. 1. These revisions add price codes for two new 1000-watt High Pressure Sodium street lights.

TODAY, shall the Commission Approve the Tariff Revisions?

Natural Gas

1. NG06-001 In the Matter of the Filing by MidAmerican Energy Company for Approval of Tariff Revisions (Staff Analyst: Dave Jacobson, Staff Attorney: Karen Cremer)

Application by MidAmerican Energy for approval of tariff revisions which propose to base interruptible sales service gas costs on the daily market price of gas as opposed to monthly average system prices now currently used. MidAmerican will be able to align costs and bill each customer for their specific daily usage. MidAmerican is also proposing transition out existing over/under recovery balances during the upcoming months of March through August.

TODAY, shall the Commission Approve the Tariff Revisions?

Telecommunications

1. TC05-060 In the Matter of the Filing by Midstate Telecom, Inc. for an Extension of an Exemption from Developing Company Specific Cost-Based Switched Access Rates. (Staff Analyst: Keith Senger, Staff Attorney: Karen Cremer)

On April 24, 2001, the Commission granted Midstate Telecom, Inc (Midstate) a Certificate of Authority to provide local exchange services and granted Midstate a one year exemption from establishing company specific cost-based switched access rates. On April 2, 2002, Midstate filed for a three year exemption from filing cost-based switched access rates which was granted on May 16, 2002. On April 27, 2005, Midstate filed for a three year exemption from filing cost-based switched access rates and for approval of its intrastate switched access Tariff No. 1.

TODAY, shall the Commission Approve Midstate Telecom's Exemption from Developing Company Specify Cost-Based Switched Access Rates? AND, Shall the Commission Approve or Deny Midstate Telecom's Intrastate Switched Access Tariff No. 1 and/or Approve an Alternate Rate?

2. TC05-180 In the Matter of the Application of Asia Talk Telecom, Inc. d/b/a HelloCom Inc. for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Bob Knadle, Staff Attorney: Sara Greff)

On October 7, 2005, Asia Talk Telecom, Inc. d/b/a HelloCom Inc. filed an application seeking a Certificate of Authority to provide interexchange services throughout South Dakota on a resale basis. The Applicant intends to offer interexchange services, including 1+ and 101XXXX outbound dialing, 800/888 Toll-Free inbound dialing, directory assistance, data services and postpaid calling card service to primarily residential and small to mid-sized business customers.

TODAY, shall the Commission Grant the Certificate of Authority to Asia Talk Telecom, Inc. d/b/a HelloCom Inc.?

3. In the Matter of the Approval of the Amendments to Agreements in TC06-002, TC06-003, TC06-005, and TC06-006.

TC06-002 In the Matter of the Filing for Approval of an Amendment to a Master Services Agreement Between Qwest Corporation and VCI Company (Staff Attorney: Sara Greff)

On January 11, 2006, the Commission received a filing for the approval of Qwest's Amendment to the Master Services Agreement. Qwest Corporation and VCI Company have executed a commercial agreement related to the provisions of switching and shared transport. The Amendment to 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 (Amendment to 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 Amendment 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 Amendment. . . ."

TC06-003 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement Between Qwest Corporation and VCI Company (Staff Attorney: Sara Greff)

On January 11, 2006, the Commission received a filing for the approval of an Amendment to the Interconnection Agreement between Qwest Corporation and VCI Company. According to the parties, this Amendment deletes sections from the Interconnection Agreement.

TC06-005 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and SBC Long Distance, LLC f/k/a Southwestern Bell Communications Services, Inc. (Staff Attorney: Sara Greff)

On January 17, 2006 the Commission received a filing for the approval of a Triennial Review Order and Triennial Review Remand Order Amendment to an Interconnection Agreement between Qwest Corporation and SBC Long Distance, Inc. f/k/a Southwestern Bell Communications Services. According to the parties, this Amendment deletes, changes, adds or places conditions on certain UNEs.

TC06-006 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and Metropolitan Telecommunications of South Dakota, Inc. (Staff Attorney: Sara Greff)

On January 6, 2006 the Commission received a filing for the approval of a Line Splitting Amendment to the Interconnection Agreement between Qwest Corporation and Metropolitan Telecommunications. According to the parties, this Amendment replaces the existing UNE-P Line Splitting section in its entirety.

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

4. TC06-004 In the Matter of the Filing by Brookings Municipal Utilities d/b/a Swiftel Communications for Approval of its Revised Service Territory as a Result of Annexation. (Staff Analysts: Harlan Best and Martin Bettmann, Staff Attorney: Sara Greff)

As a result of an annexation to the City of Brookings, the Commission received a filing from the City of Brookings Telephone d/b/a Swiftel Communications (Swiftel) for approval to include property annexed in its exclusive franchise territory. The service territory change includes the South 1/2 of the Northeast 1/4 Section 1, T109N, R50W excluding the platted areas thereof, the East 300 feet and the North 30 feet, East 1,832 feet, West 2,165 feet in the County of Brookings, South Dakota. The City of Brookings has also annexed the following property which will be retained by Interstate Telecommunications Cooperative, Inc.; Lot 1, Clark Addition and Outlot A excluding the North 444 feet thereof, all in the Southwest 1/4 of Section 10, T110N, R49W; Outlot B in the Northwest 1/4 of the Southwest 1/4 of Section 20, T110N, R49W; and Outlot B and E in the Southwest 1/4 of the Southwest 1/4 of Section 20, T110N, R49W all in the County of Brookings, South Dakota.

Swiftel is making the request pursuant to SDCL 49-31-21 and upon previous South Dakota Public Utilities Commission (Commission) action in Docket #F-3555 and in the resulting decision by the Commission on January 2, 1987. Swiftel has also requested that the Commission waive rules ARSD 20:10:32:03(1-7); (9-21); and (23).

TODAY, shall the Commission Approve the Revised Service Territory as a Result of Annexation?

5. TC06-009 In the Matter of the Application of Broadband Dynamics, L.L.C. for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analysts: Keith Senger and Nathan Solem, Staff Attorney: Karen Cremer)

On February 2, 2006, Broadband Dynamics, L.L.C filed an application seeking a Certificate of Authority to resell interexchange services including 1+ and 101XXXXX outbound dialing, 800/888 Toll-Free inbound dialing, directory assistance, data services and postpaid calling card services throughout South Dakota.

TODAY, shall the Commission Waive ARSD 20:10:32:03(1 – 7), (9 – 12), and (23), and Grant the Certificate of Authority to Broadband Dynamics, L.L.C.?

6. TC06-014 In The Matter Of The Petition Of Northern Valley Communications, LLC For Waiver Of NeuStar, Inc.'s Denial Of Number Block Request In The Aberdeen Rate Center. (Staff Analysts: Keith Senger and Nathan Solem, Staff Attorney: Karen Cremer)

In February 15, 2006, Northern Valley Communications, LLC (NVC) filed a request with the Commission to waive the NeuStar Pooling Administrator's denial of its request for numbering resources in the Aberdeen rate center. The Pooling Administrator denied NVC's request because the company does not meet the 75% utilization and the months-to-exhaust requirements in the Aberdeen rate center. NVC is requesting a waiver of these requirements so it could receive three sequential number blocks in the Aberdeen rate center to satisfy a customer's request.

TODAY, shall the Commission Grant the Waiver Request?

7. TC05-223 In the Matter of the Application of SSTELECOM, Inc. for a Certificate of Authority to Provide Local Exchange Services in South Dakota. (Staff Analyst: Harlan Best, Staff Attorney: Sara Greff)

On December 23, 2005, SSTelecom, Inc. filed an application for a Certificate of Authority to provide local exchange services in the Milbank Exchange of Qwest Corporation (Qwest). SSTelecom initially intends to provide service by overbuilding the Milbank exchange of Qwest. SSTelecom will construct and use its own facilities and may collocate or lease additional facilities as necessary to provide service to residential and business customers. SSTelecom is requesting an exemption from developing company specific cost-based access rates, ARSD 20:10:27:11. SSTelecom requests that its switched access rates be determined in accordance with ARSD 20:10:27:12 for a period of three years.

TODAY, shall the Commission Grant a Certificate of Authority to SSTelecom, Inc.?

Announcements

1. The next regularly scheduled Commission meeting will be held March 14, 2006, at 1:30 p.m. in Room 468, at Pierre, South Dakota.

2. Commission meetings are scheduled for March 14 and April 11, 2006.

3. A public meeting will be held in Docket EL06-002 on Thursday, March 2, 2006, at the Revillo City Auditorium, beginning at 7:00 p.m.

4. A hearing in Docket CT05-001 will be held March 8 - 10, 2006, in Room 412, State Capitol Building, Pierre. The hearing will begin at 8:30 a.m. on Wednesday, March 8, 2006.

5. Staff and Commissioners will be attending the Qwest Regional Oversight Committee meetings in Scottsdale, AZ, March 28 – 29, 2006.

______________________
Heather K. Forney

Deputy Executive Director

heather.forney@state.sd.us

February 21, 2006