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South Dakota Public Utilities Commission Meeting

Tuesday, September 26, 2006, 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 12:00 p.m. on September 25, 2006. Lines are limited and are given out on first come/first serve basis, subject to possible reassignment to accommodate persons who must appear in a proceeding. 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

Consumer Reports

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

Electricity

1. EL06-019 In the Matter of the Application of Black Hills Power, Inc. for Authority to Increase Rates for Electric Service (Staff Analysts: Dave Jacobson, Keith Senger, Bob Knadle, Martin Bettmann, and Nathan Solem; Staff Attorney: Karen Cremer)

Application by Black Hills Power, Inc. (BHP) for approval to increase rates for electric service to customers in its service territory by $9,593,688 annually or approximately 9.5% based on BHP's 2005 test year. The company states the proposed increase for a residential customer would be $5.16 per month based on usage of 600 kWh. The proposed rates may potentially affect approximately 60,434 customers in BHP's service territory. A Petition to Intervene and Notice of Appearance of Merillat Industries, LLC, GCC Dacotah, Inc., and Pope & Talbot, Inc., collectively referred to as the Black Hills Intervenors ("BHI") was filed on July 28, 2006. The Commission granted intervention to BHI at its August 8, 2006, meeting. On August 28, 2006, the City of Gillette, Wyoming filed a Petition to Intervene. BHP filed an Objection to the City of Gillette's Petition to Intervene on August 31, 2006. On September 7, 2006, the City of Gillette filed a Withdrawal of Petition to Intervene. The Commission granted the Request for Withdrawal at its September 12, 2006, commission meeting. On September 14, 2006, Rushmore Forest Products filed a Petition for Intervention.

TODAY, shall the Commission Grant Intervention to Rushmore Forest Products?

2. EL06-020 In the Matter of the Application by Navitas Energy, Inc. for an Energy Conversion Facility Permit for the Construction of the White Wind Farm and Associated Collection Substation and Electric Interconnection System (Staff Analysts: Martin Bettmann/Bob Knadle/Nathan Solem, Staff Attorney: Karen Cremer)

On July 11, 2006, White Wind Farm, LLC, a wholly owned subsidiary of Navitas Energy, Inc., filed an application seeking an Energy Conversion Facility Permit to construct and operate the White Wind Farm. The White Wind Farm is a proposed 200 MW wind energy electricity generating facility and ancillary services located on approximately 93 acres in Sherman Township, southeast of White, South Dakota in Brookings County. The project consists of up to 105 2 MW wind turbine generators, associated electric collector lines, a collection substation and interconnection and upgrades to the WAPA White Substation. On September 8, 2006, Interstate Telecommunications Cooperative, Inc. (ITC) filed an Application for Party Status. The South Dakota Rural Electric Association (SDREA) filed a Petition to Intervene on September 11, 2006. On September 19, 2006, the Local Review Committee filed a request for $2,000 from the Commission in order to hire a consultant to assist in carrying out the review committee's responsibilities.

TODAY, shall the Commission Grant Intervention to ITC and the SDREA? AND, shall the Commission Grant the Local Review Committee's Request for $2,000 in Order to Hire a Consultant?

3. EL06-021 In the Matter of the Filing by NorthWestern Corporation d/b/a NorthWestern Energy for Approval of a Contract with Deviations with Redfield Ethanol Plant. (Staff Analyst: Dave Jacobson, Staff Attorney: Karen Cremer)

Application by NorthWestern Energy for approval of a contract with deviations to serve the Redfield Ethanol Plant. The proposed contract would offer a discount from Rate 34. NorthWestern is proposing to serve Redfield Ethanol Plant pursuant to SDCL49-34A-56 which is being considered by the Commission in Docket EL06-016.

TODAY, shall the Commission Approve the Contract with Deviations? AND, shall the Commission Approve the Tariff Revisions?

4. EL06-024 In the Matter of the Request for an Electric Service Territory Boundary Change between Black Hills Power, Inc. and Black Hills Electric Cooperative, Inc. (Staff Analyst: Nathan Solem, Staff Attorney: Kara Van Bockern)

On August 30, 2006, Black Hills Power Inc. and Black Hills Electric Cooperative filed a joint request to change a service territory boundary line in Section 19, Township 4N, Range 3E, Black Hills Meridian in Lawrence County. The existing territory line bisects a small development and this filing eliminates duplication of service within the development. The request would result in the transfer of six future customers from the development from BHEC to BHP which BHP has agreed to offset in another area with a similar territory exception agreement with BHEC by 2011.

TODAY, shall the Commission Approve the Request for an Electric Service Territory Boundary Change?

Natural Gas

1. NG06-007 In the Matter of the Filing by NorthWestern Energy for Approval of Tariff Revisions (Staff Analyst: Bob Knadle, Staff Attorney: Kara Van Bockern)

On September 1, 2006, Northwestern Energy filed an application seeking approval of revisions to the fuel retention percentage in the gas transportation tariff. The proposed revisions would increase the fuel retention percentage.

TODAY, shall the Commission Approve the Tariff Revisions?

2. NG06-008 In the Matter of the Application of South Dakota Intrastate Pipeline Company to Increase its Transportation Charges (Staff Analysts: Keith Senger/Nathan Solem, Staff Attorney: Karen Cremer)

On September 5, 2006, South Dakota Intrastate Pipeline filed a petition seeking an amendment to its rate schedule to provide for an increase in its transportation charge to its only customer, Montana-Dakota Utilities Company. The petition is due to increased federal pipeline safety program costs and increases in other federal pipeline program costs beyond the control of SDIPC. SDIPC proposes to make the change in its rate effective as of October 15, 2006. On September 12, 2006, Montana-Dakota Utilities Co. filed a Petition for Intervention.

TODAY, shall the Commission Grant Intervention to Montana Dakota Utilities? AND, shall the Commission Assess a Filing Fee for Actual Expenses Not to Exceed $100,000 with an Initial Deposit of $1,000? AND, shall the Commission Suspend the Imposition of the Tariff for 90 days Beyond October 5, 2006?

Telecommunications

1. TC05-157 In the Matter of the Application of Vanco Direct USA, LLC for a Certificate of Authority to Provide Interexchange Telecommunications Services and Local Exchange Services in South Dakota. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

On August 12, 2005, the Commission received an application from Vanco Direct USA, LLC for a Certificate of Authority to provide local exchange and interexchange telecommunication services in South Dakota. The applicant intends to offer resold interexchange and local exchange services on a resale basis, including resale of private line data services. The applicant will initially offer only resold private line services to business customers and other providers. The applicant intends to provide service in the local exchange calling areas of Qwest Corporation.

TODAY, shall the Commission Grant the Certificate of Authority to Vanco Direct USA, LLC?

2. TC06-046 In the Matter of the Application of MCC Telephony of the Midwest, Inc., d/b/a Mediacom for a Certificate of Authority to Provide Interexchange Telecommunications Services and Local Exchange Services in South Dakota. (Staff Analyst: Phil Lusk, Staff Attorney: Kara Van Bockern)

On May 12, 2006, MCC Telephony of the Midwest, Inc., d/b/a Mediacom ("MCC") filed an application seeking a combined Certificate of Authority to provide competitive facilities-based and resold basic local exchange and intrastate interexchange services, including non-switched, switched local services and special access services to customers in the state of South Dakota. MCC also seeks full authority to provide telecommunication services such as private line services to residential and business customers throughout the state. MCC proposes to provide the services through a combination of its own facilities and on a resale basis. On June 1, 2006, Brookings Municipal Utilities d/b/a Swiftel Communications (Swiftel), filed a Petition to Intervene. The Commission granted intervention to Swiftel at its June 13, 2006, meeting.

TODAY, shall the Commission Grant a Certificate of Authority to MCC Telephony of the Midwest, Inc. d/b/a Mediacom?

3. TC06-097 In the Matter of the Filing by Great Plains Communications, Inc. for a Waiver of ARSD Sections 20:10:32:52, 20:10:32:53 and 20:10:32:54. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

On July 25, 2006, Great Plains Communications, Inc. (Great Plains) filed a request for a 30-day extension of the August 1 due date for filing the Annual ETC Certification and a Petition For Waiver of ARSD Sections 20:10:32:52 to 20:10:32:54, inclusive. Great Plains's study area is comprised primarily of a geographic area contained within the state of Nebraska, but also includes small portions of rural territory in South Dakota. Great Plains's service area in South Dakota consists of North Cody, North Crookston, North Gordon, and North Kilgore. Great Plains asserts that for companies that have a very small portion of their overall study area in South Dakota, the requirement of certifying the use of federal Universal Service Fund monies per the requirements of the above referenced rules are "unduly burdensome and unnecessary" for the Commission to certify that Great Plains is using the federal high cost support for the uses it is intended. Because its study area is largely contained within the state of Nebraska and because it will comply with the Nebraska Public Service Commission requirements for ETC certification, Great Plains requests that it be allowed to file a copy of its Nebraska ETC certification with the SDPUC; and that the SDPUC accept such filing as sufficient to make the determination as to include Great Plains on the list of certified carriers it provides to the FCC on or before October 1 of each year. The extension request was granted at the August 23, 2006, commission meeting.

TODAY, shall the Commission Grant the Waiver of ARSD Sections 20:10:32:52 to 20:10:32:54? AND, 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 Each of the Above Dockets?

4. In the Matter of the Request for Certification Regarding its Use of Federal Universal Service Support in Dockets TC06-131, TC06-132, TC06-133, TC06-140, TC06-142, TC06-143, TC06-153, TC06-154, TC06-155, and TC06-160

TC06-131 In the Matter of the Request of Brookings Municipal Telephone d/b/a Swiftel Communications for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Harlan Best/Nathan Solem, Staff Attorney: Karen Cremer)

On August 1, 2006, Brookings Municipal Telephone d/b/a Swiftel Communications (Swiftel) provided information constituting Swiftel's plan for the use of its federal universal service support and to otherwise verify that Swiftel 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.

TC06-132 In the Matter of the Filing by Northeast Nebraska Telephone Company for a Waiver of ARSD Sections 20:10:32:52, 20:10:32:53 and 20:10:32:54. (Staff Analysts: Harlan Best/Nathan Solem, Staff Attorney: Karen Cremer)

On August 1, 2006, Northeast Nebraska Telephone Company (Northeast) filed a Petition for a Waiver of ARSD sections 20:10:32:52 - 20:10:32:54, inclusive. The Petition states that Northeast's study area consists primarily of a geographic area contained within the state of Nebraska; that Northeast's service area in South Dakota consists of the North Bristow exchange, which is the rural portion of an exchange where the larger portion of the exchange and the central office is located in Nebraska; that Northeast has no wire centers in South Dakota; and that for companies such as Northeast who have a very small portion of their overall study area in South Dakota, the requirement of certifying the use of universal service fund monies in accordance with the requirements of the newly-adopted ARSD sections 20:10:32:52 - 20:10:32:54 is unduly burdensome and unnecessary for the Commission to certify that Northeast is using federal high cost support for its intended purposes. Because its study area is largely contained within the state of Nebraska and because it will comply with the Nebraska Public Service Commission requirements for ETC certification, Northeast requests that it be allowed to file a copy of its Nebraska ETC certification with the Commission; and that the Commission accept such filing as sufficient to make the determination to include Northeast on the list of certified carriers it provides to the FCC and USAC on or before October 1 of each year. The waiver request was granted at the September 12, 2006, commission meeting.

TC06-133 In the Matter of the Filing by Three River Telco for a Waiver of ARSD Sections 20:10:32:52, 20:10:32:53 and 20:10:32:54. (Staff Analysts: Harlan Best/Nathan Solem, Staff Attorney: Karen Cremer)

On August 1, 2006, Three River Telco (Three River) filed a Petition for Waiver of ARSD sections 20:10:32:52, 20:10:32:53 and 20:10:32:54. The Petition states that Three River's study area consists primarily of a geographic area contained within the state of Nebraska; that Three River's service area in South Dakota consists of the North Naper exchange, which is the rural portion of an exchange where the larger portion of the exchange and the central office is located in Nebraska; that Three River has no wire centers in South Dakota; and that for companies such as Three River who have a very small portion of their overall study area in South Dakota, the requirement of certifying the use of universal service fund monies in accordance with the requirements of the newly-adopted ARSD sections 20:10:32:52 - 20:10:32:54 is unduly burdensome and unnecessary for the Commission to certify that Three River is using federal high cost support for its intended purposes. Because its study area is largely contained within the state of Nebraska and because it will comply with the Nebraska Public Service Commission requirements for ETC certification, Three River requests that it be allowed to file a copy of its Nebraska ETC certification with the Commission; and that the Commission accept such filings as sufficient to make the determination as to include Three River on the list of certified carriers it provides to the FCC and USAC on or before October 1 of each year. The waiver request was granted at the September 12, 2006, commission meeting.

TC06-140 In the Matter of the Request of Midcontinent Communications for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Harlan Best/Nathan Solem, Staff Attorney: Karen Cremer)

On August 8, 2006, Midcontinent Communications (Midcontinent) provided information constituting Midcontinent's plan for the use of its federal universal service support and to otherwise verify that Midcontinent 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.

TC06-142 In the Matter of the Request of Heartland Telecommunications Company of Iowa d/b/a HickoryTech for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Harlan Best/Nathan Solem, Staff Attorney: Karen Cremer)

On August 9, 2006, Heartland Telecommunications of Iowa d/b/a HickoryTech (HickoryTech) provided information constituting HickoryTech's plan for the use of its federal universal service support and to otherwise verify that HickoryTech 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. HickoryTech also seeks a waiver of ARSD 20:10:32:53 as it pertains to the deadline of August 1, 2006. The waiver request was granted at the September 12, 2006, commission meeting.

TC06-143 In the Matter of the Request of Farmers Mutual Telephone Company for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Harlan Best/Nathan Solem, Staff Attorney: Karen Cremer)

On August 11, 2006, 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.

TC06-153 In the Matter of the Request of Dickey Rural Telephone Cooperative for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Harlan Best/Nathan Solem, Staff Attorney: Karen Cremer)

On August 31, 2006, Dickey Rural Telephone Cooperative (Dickey Rural) provided information constituting Dickey Rural's plan for the use of its federal universal service support and to otherwise verify that Dickey Rural 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.

TC06-154 In the Matter of the Request of Dickey Rural Communications, Inc. for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Harlan Best/Nathan Solem, Staff Attorney: Karen Cremer)

On August 31, 2006, Dickey Rural Communications, Inc. (Dickey Rural) provided information constituting Dickey Rural's plan for the use of its federal universal service support and to otherwise verify that Dickey Rural 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.

TC06-155 In the Matter of the Request of RT Communications, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Harlan Best/Nathan Solem, Staff Attorney: Karen Cremer)

On September 5, 2006, RT Communications, Inc. provided information constituting RT's plan for the use of its federal universal service support and to otherwise verify that RT 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.

TC06-160 In the Matter of the Request of Red River Rural Telephone Association for Certification Regarding its Use of Federal Universal Service Support (Staff Analysts: Harlan Best/Nathan Solem, Staff Attorney: Karen Cremer)

On September 18, 2006, Red River Rural Telephone Association (Red River) provided information constituting Red River's plan for the use of its federal universal service support and to otherwise verify that Red River 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 Each of the Above Dockets?

Announcements

1. The next regularly scheduled Commission meeting will be held October 19, 2006, at 9:30 a.m. CT (8:30 a.m. MT) at the Rapid City Holiday Inn, Rapid City, SD.

2. Commission meetings are scheduled for October 31 and November 14, 2006.

3. A hearing in Docket CE06-003 will be held September 27, 2006, in Brookings - SDSU - Union Center - Lewis and Clark Room #262. The hearing will begin at 9:30 a.m.

_____________________
Heather K. Forney

Deputy Executive Director

heather.forney@state.sd.us

September 19, 2006