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South Dakota Public Utilities Commission Meeting
October 20, 2009, at 9:30 A.M.
Room 413, Capitol Building
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 19, 2009. Lines are limited and are given out on a first come, first served 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.
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 link on the home page. The Commission requests that persons who will only be listening to proceedings and not actively appearing in a case listen via the web cast to free phone lines for those who have to appear. The Commission meetings are archived on the PUC's Web site under the Commission Actions tab and then click on the LISTEN link 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
Consumer Reports
1. Status Report on Consumer Utility Inquiries and Complaints Received by the Commission. (Consumer Affairs: Deb Gregg)
Complaint
On September 29, 2009, Eunice Caldwell filed a complaint against Email Discount Network. Ms. Caldwell alleges she was billed for services she did not order. The charges were added to her monthly phone bill. On October 9, 2009, Email Discount Network filed a Motion to Dismiss.
TODAY, shall the Commission Grant the Motion to Dismiss and Close the Docket?
Natural Gas
On March 2, 2009, Montana-Dakota Utilities Co. (Montana-Dakota), a Division of MDU Resources Group, Inc., filed an application for Commission approval to remove the experimental qualifier associated with its Gas Conservation Program. The Company is proposing to continue the application of Rate 90 and expand its natural gas portfolio to include four additional gas conservation programs and remove the experimental nature of the current tariff through the implementation of a biennial review of the Company's portfolio of programs to be filed by June 1 of every other year. In a supplemental filing dated April 1, 2009, MDU requested approval of an updated Conservation Tracking Adjustment effective May 1, 2009, and the extension of previously authorized Conservation Programs set to expire on April 30, 2009, to allow additional time for Commission Staff review. At its April 21, 2009, meeting, the Commission approved the tariff revisions and extended the Conservation Programs through September 30, 2009. On September 16, 2009, MDU filed revised tariff sheets and a Request for Extension of Time and Continuation of Conservation Programs set to expire on September 30, 2009. At its September 22, 2009, meeting, the Commission approved the tariff revisions and extended the Conservation Programs through October 31, 2009. On October 8, 2009, MDU filed a revised conservation program.
TODAY, shall the Commission Approve the Proposed Revised Program?
Electric
On June 30, 2009, Northern States Power Company (NSP) filed an application for approval to increase rates for electric service to customers in its service territory by approximately $18.6 million annually or approximately 12.7% based on NSP's 2008 test year. Of this increase in base rates, approximately $2.9 million is currently being collected through NSP's Transmission Cost Recovery Rider and Environmental Cost Recovery Rider, which NSP is proposing to subsequently recover in base rates. Consequently, the annual increase in overall retail rates is approximately $15.7 million or approximately 10.65%. The company states a typical residential electric customer using 750 kWh per month would see a net increase of 12.4 percent, or $8.55 per month. The proposed rates may potentially affect approximately 81,000 customers in NSP's service territory. At its July 14, 2009, meeting, the Commission suspended the imposition of the tariff for 90 days beyond July 30, 2009, and assessed a filing fee for actual expenses not to exceed $100,000.
TODAY, shall the Commission Suspend the Imposition of the Tariff for an Additional 60 days beyond October 28, 2009?
On July 28, 2009, Basin Electric Power Cooperative filed an application for an energy conversion facility permit for the Deer Creek Station project located 12 miles northeast of Brookings, South Dakota. The project consists of a 300 net megawatt combined-cycle natural gas conversion facility and associated 1.25-mile water pipeline and 0.75-mile electric transmission line. Construction of this $393 million project is anticipated to begin in July 2010 with startup in June 2012. The project will help serve the increased generation demand for electric power in the eastern portion of Basin Electric's service area. An associated siting application for a 13.2-mile natural gas pipeline for the project has been filed separately. At its August 11, 2009, meeting, the Commission assessed a filing fee not to exceed $396,500 with an initial deposit of $8,000. Due to scheduling and notice complications, Basin filed a Motion for Extension of Notice, Public Hearing Timeframe and Application for Party Status on August 21, 2009. Basin further requested to hold the public hearing on September 30, 2009. The Commission granted the motion at its August 25, 2009, meeting. On August 31, 2009, Iberdrola Renewables filed a Petition for Intervention. Intervention was granted to Iberdrola Renewables at the September 8, 2009, commission meeting. The Brookings County Commission filed an Application for Party Status on September 30, 2009. On October 13, 2009, Jongeling Consulting submitted a combined Consulting Services Proposal in EL09-015 and HP09-002.
TODAY, shall the Commission Grant Party Status to Any Parties that May have Filed, AND, shall the Commission Grant the Local Review Committee's Request for $10,500 in Order to Hire a Consultant?
On September 30, 2009, Black Hills Power, Inc. (BHP) filed an application for approval to increase rates for electric service to customers in its South Dakota service territory. BHP states that it proposes to increase rates by approximately $32 million annually or approximately 26.6% based on BHP's test year ending June 30, 2009. The company states a typical residential electric customer using 600 kWh per month would see a net increase of $17.99 per month. The proposed rates may potentially affect approximately 64,100 customers in BHP's service territory.
TODAY, shall the Commission suspend the imposition of the tariff for 180 days beyond September 30, 2009? AND, shall the Commission assess a filing fee for actual expenses not to exceed $100,000?
Hydrocarbon Pipeline
On July 28, 2009, Basin Electric Power Cooperative, Inc. (Basin) filed a siting permit application for the Deer Creek energy conversion facility (EL09-015) and a natural gas pipeline to support the Deer Creek facility. Basin is proposing to construct, own, and operate a natural gas pipeline to support a proposed 300-megawatt combined-cycle natural gas energy conversion facility called the Deer Creek Station. The proposed 13.2-mile pipeline route will traverse about 18 sections of land located in Brookings and Deuel counties. The proposed pipeline diameter is 10.75 inches with an operating pressure ranging between 475 – 1,435 pounds per square inch gauge (psig). Construction is proposed to begin in July 2010 with start up in June 2012. At its August 11, 2009, meeting, the Commission assessed a filing fee not to exceed $30,000 with an initial deposit of $8,000. Due to scheduling and notice complications, Basin filed a Motion for Extension of Notice, Public Hearing Timeframe and Application for Party Status on August 21, 2009. Basin further requests to hold the public hearing on September 30, 2009. The Commission granted the motion at its August 25, 2009, meeting. On August 31, 2009, Iberdrola Renewables filed a Petition for Intervention. Intervention was granted to Iberdrola Renewables at the September 8, 2009, commission meeting. The Brookings County Commission filed an Application for Party Status on September 30, 2009. On October 13, 2009, Jongeling Consulting submitted a combined Consulting Services Proposal in HP09-002 and EL09-015.
TODAY, shall the Commission Grant Party Status to Any Parties that May have Filed, AND, shall the Commission Grant the Local Review Committee's Request for $10,500 in Order to Hire a Consultant?
Pipeline Safety
On April 20, 2009, the Commission Pipeline Safety Program Manager filed a request for a declaratory ruling as to whether the PUC siting statute, SDCL 49-41B-2.1, allows a pipe design and thus its MAOP to exceed 20% SMYS if it is operated under 20% SMYS. The Pipeline Safety Program Manager requests a Commission decision regarding whether a pipeline is permitted to maintain MAOP in excess of 20% SMYS when to increase pipeline pressure above 20% SMYS would violate SDCL 49-41B-2.1. Montana-Dakota Utilities filed a Petition for Intervention on May 5, 2009. NorthWestern Energy Corporation d/b/a NorthWestern Energy filed a Petition for Intervention on May 8, 2009. Interventions were granted at the May 19, 2009, commission meeting. At its June 9, 2009, meeting, the Commission granted party status to Commission Staff, extended the deadline for an additional 60 days, and ordered the parties to develop a procedural schedule. On August 4, 2009, the parties requested an additional 90 day extension. At its August 11, 2009, meeting, the Commission granted a 90 day extension. On October 13, 2009, Staff filed a request for an additional extension.
TODAY, shall the Commission Grant the Requested Extension?
Telecommunications
On September 26, 2007, PrairieWave filed a complaint against Reduced Rate Long Distance, LLC. PrairieWave alleges that Reduced Rate made misrepresentations to PrairieWave's customers concerning its relationship with PrairieWave in order to convince customers to change their long distance carriers over to Reduced Rate. PrairieWave requests that the Commission issue an Order to Show Cause as to why Reduced Rate's certificate of authority should not be suspended or revoked and order Reduced Rate to pay statutory damages to affected customers, notify all recent Reduced Rate customers of possible misrepresentations and cease and desist from such conduct in the future. Reduced Rate Long Distance, LLC filed an answer and defenses to the Complaint on January 7, 2008. On October 5, 2009, Knology of the Black Hills, LLC and Knology of the Plains, Inc. filed a Motion to Dismiss the Complaint against Reduced Rate Long Distance, LLC.
TODAY, shall the Commission Grant the Motion to Dismiss?
Northern Valley Communications, LLC (NVC) requests that its operation be designated as eligible to receive all available support from the Federal Universal Service Fund (USF) including, but not limited to, support for rural, insular and high-cost areas and low-income customers. NVC requests that it be designated as an ETC in the Aberdeen and Redfield exchanges of Qwest. On October, 6, 2009, NVC submitted a supplemental filing.
TODAY, shall the Commission Designate Northern Valley Communications, LLC as an Eligible Telecommunications Carrier?
James Valley Wireless, LLC (JVW) requests that its operation be designated as eligible to receive all available support from the Federal Universal Service Fund (USF) including, but not limited to, support for rural, insular and high-cost areas and low-income customers. JVW requests that it be designated as an ETC in the Aberdeen exchange of Qwest. On October, 6, 2009, JVW submitted a supplemental filing.
TODAY, shall the Commission Designate James Valley Wireless, LLC as an Eligible Telecommunications Carrier?
On August 11, 2009, WideVoice Communications, Inc. filed an application for a certificate of authority to enter the South Dakota market as a provider of local and interexchange service, as well as switched access service, long distance resale, advanced services and high speed digital service. WideVoice specifically requests authority to operate as a provider of facilities-based and resale local exchange telecommunications services in eligible interconnection areas in South Dakota, Qwest's incumbent local exchange areas, as well as authority to offer interexchange interLATA and intraLATA services statewide. On August 27, 2009, the South Dakota Telecommunications Association filed a Petition to Intervene. Midstate Communications and Midstate Telecom Inc. filed a Petition to Intervene on August 28, 2009. The Commission granted intervention to SDTA and Midstate at its September 8, 2009, meeting.
TODAY, shall the Commission Grant a Certificate of Authority to WideVoice Communications, Inc.?
On August 28, 2009, the Commission received a filing for approval of a Resale Agreement between Qwest Corporation and iNetworks Group, Inc.
TODAY, shall the Commission Approve the Agreement?
On September 18, 2009, Greenfly Networks Inc. dba Clearfly Communications (Clearfly) filed an application for a certificate of authority to provide telecommunication services throughout the State of South Dakota and local exchange services in a to-be-determined select number of ILEC wire centers in South Dakota. Clearfly intends to provide facilities-based and resold services. On September 21, 2009, Clearfly filed a revised application.
TODAY, shall the Commission Grant a Certificate of Authority to Greenfly Networks Inc?
On September 21, 2009, Lattice Incorporated filed an application for a certificate of authority to provide Interexchange and alternative operator services in South Dakota. Lattice proposed to offer automated operator-assisted collect and prepaid calling services to inmates and other incarcerated persons in confinement facilities within the State of South Dakota. On October 2, 2009, Lattice filed a letter and stated that the company will not offer prepaid service, collect deposits or advance payments.
TODAY, shall the Commission Grant a Certificate of Authority to Lattice Incorporated?
Announcements
- The next regularly scheduled Commission meeting will be held November 10, 2009, at 9:30 a.m. in Room 413, State Capitol Building, Pierre, SD.
- Commission meetings are scheduled for November 24, 2009, and December 8, 2009.
- Commissioners will be meeting with representatives of MN Wireless on October 21, 2009, at 10:30 a.m. in the Cactus Conference Room at the PUC Office, Pierre, SD, to discuss MN Wireless company updates.
- A hearing in docket TC08-135 will be held on October 22, 2009, at 9:00 a.m. in Room 413, State Capitol Building, Pierre, SD.
- Commissioners will be meeting with representatives of Qwest on October 30, 2009, at 2:00 p.m. at the Qwest office, 125 South Dakota Ave., Sioux Falls, SD, to discuss Qwest company updates.
- An evidentiary hearing in docket HP09-001 will be held November 2 – 6, 2009, in Room 414, State Capitol Building, Pierre, SD, beginning at 9:00 a.m. on November 2; and at 8:30 a.m. on all other days.
- A public input hearing in docket HP09-001 will be held on November 3, 2009, at 7:00 p.m in Room 414 of the State Capitol Building, Pierre, SD.
- The Public Utilities Commission offices will be closed Tuesday, November 11, 2009, in observance of Veterans Day.
- Commissioners and Staff will be attending the NARUC fall meetings in Chicago, IL, November 16 – 19, 2009.
- The Public Utilities Commission offices will be closed Thursday, November 26, 2009, in observance of Thanksgiving.
- The Public Utilities Commission offices will be closed Friday, December 25, 2009, in observance of Christmas.
/S/ Leah Mohr .
Leah Mohr
Deputy Executive Director
puc@state.sd.us
October 13, 2009
