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PUBLIC UTILITIES COMMISSION MEETING
October 28, 1997; 10:00 A.M.
State Capitol Building, Room 412
Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING

Chairman Jim Burg called the meeting to order at 10:00 a.m. Present were Commissioner Pam Nelson, Commissioner Laska Schoenfelder, Executive Director Bill Bullard, General Counsel Rolayne Ailts Wiest, Staff Attorneys Karen Cremer and Camron Hoseck, Fixed Utilities Director Greg Rislov, Telecommunications Analysts Harlan Best and Charlie Bolle, Utility Analysts Bob Knadle, Dave Jacobson and Tammi Stangohr, Consumer Representative Leni Healy, Business Manager Sue Cichos and Administrative Secretary Shirleen Fugitt.

Also present were Jim Wilson, MidAmerican Energy and Rich Coit, SDITC.

Joining the meeting by phone were Mary Lohnes and Tom Simmons, Midco Communications; Jon Lehner, Colleen Sevold and Tom Welk, U S WEST Communications; Kathleen Marmet, Dakota Telecommunications Group; Suzan Stewart, Marv Sorenson, Jean Calligan and Karen Huizenga, MidAmerican Energy; Mary Tribby, Loren Hiatt and Maria Arias-Chapleau, AT&T; Tom Hitchcock, Northwestern Public Service; Darrell Seeman, complainant in NG97-017; and Steve Wegman, PUC Staff.

Telecommunications

1. TC96-184 - IN THE MATTER OF THE PETITION FOR ARBITRATION ON BEHALF OF AT&T COMMUNICATIONS OF THE MIDWEST INC. WITH U S WEST COMMUNICATIONS, INC. (General Counsel: Rolayne Wiest.)

Mary Tribby, AT&T, and Tom Welk representing U S WEST addressed the issue with regard to the unresolved issues in their interconnection agreement. Parties agreed that no action needed to be taken at this time and that they would conduct further negotiations in response to the 8th Circuit Order dated October 14, 1997. Ms. Wiest recommended the Commission wait for the parties to negotiate before making a decision in this matter.

Chairman Burg moved to grant Administrative Notice of the 8th Circuit Court Order dated October 14, 1997. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

7. IN THE MATTER OF SETTING PERMANENT PRICES, TERMS, AND CONDITIONS FOR INTERCONNECTION WITH U S WEST COMMUNICATIONS, INC. (General Counsel: Rolayne Wiest.)

There were no objections by the parties to opening a docket in this matter.

Commissioner Schoenfelder moved to open a docket to set permanent prices, terms, and conditions for interconnection with U S WEST. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

Administration

1. Approval Of The Minutes Of The Commission Meeting Held On October 9, 1997. (Staff: Shirleen Fugitt.)

Commissioner Schoenfelder moved to approve the minutes of the October 9, 1997, Commission meeting. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

Consumer Affairs

1. Status Report On Consumer Utility Inquiries And Complaints Recently Received By The Commission. (Consumer Representative: Leni Healy.)

Ms. Healy presented an update on consumer inquiries and complaints received since the last Commission meeting.

Electricity

1. EL97-014 - IN THE MATTER OF THE FILING BY NORTHWESTERN PUBLIC SERVICE COMPANY FOR TARIFF REVISIONS. (Staff Analyst: Steve Wegman. Staff Attorney: Camron Hoseck.)

Tom Hitchcock, NWPS, addressed the filing. Mr. Wegman addressed the changes made in the proposed tariff and recommended approval. Mr. Knadle requested that the company file an annual report that depicts the following:

1. The current extended service agreement for each customer.

2. The previous 12 months' usage and margin from the date of the extended service agreement for each customer.

3. A comparison of the margin that would have been received under the applicable tariff without the discount and the margin with the discount for each customer for the reporting period.

4. The usage for each customer for the reporting period.

Commissioner Schoenfelder moved to approve the filing and Mr. Knadle's recommendations listed above. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

Natural Gas

1. NG97-006 - IN THE MATTER OF THE COMPLAINT FILED BY ADAM HEADRICK, SIOUX FALLS, SD, AGAINST MIDAMERICAN ENERGY COMPANY REGARDING A BILL. (Consumer Representative: Leni Healy. Staff Attorney: Karen Cremer.)

Chairman Burg moved to find in favor of MidAmerican Energy and to dismiss the complaint and close the docket. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

2. NG97-016 - IN THE MATTER OF THE FILING BY MIDAMERICAN ENERGY COMPANY FOR REVISIONS TO ITS GAS SALES AND GAS TRANSPORTATION TARIFFS. (Staff Analyst: Dave Jacobson. Staff Attorney: Camron Hoseck.)

Suzan Stewart, MidAmerican Energy Company, addressed the filing. Mr. Jacobson recommended approval with Staff 's changes that have been agreed to by the company.

Commissioner Schoenfelder moved to approve the filing with Staff's recommended changes. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

3. NG97-017 - IN THE MATTER OF THE COMPLAINT FILED BY DARRELL SEEMAN, SIOUX FALLS, SD, AGAINST MIDAMERICAN ENERGY COMPANY REGARDING TRANSFERRING UNPAID BALANCES TO HIS ACCOUNT. (Consumer Representative: Leni Healy. Staff Attorney: Karen Cremer.)

Mr. Darrell Seeman explained his complaint against MidAmerican Energy regarding transferring unpaid balances to his account. Karen Huizenga, MidAmerican Energy, addressed the complaint. Ms. Wiest recommended finding probable cause.

Chairman Burg moved to find probable cause. Commissioner Nelson seconded and Commissioner Schoenfelder concurred. Motion passed 3-0.

4. NG97-018 - IN THE MATTER OF THE COMPLAINT FILED BY SUSAN COBB AND VANESSA COBB, SIOUX FALLS, SD, AGAINST MIDAMERICAN ENERGY COMPANY REGARDING A PAYMENT PLAN. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Mr. Hoseck recommended finding probable cause.

Commissioner Nelson moved to find probable cause. Commissioner Schoenfelder seconded.

Chairman Burg recommended deferral of action in this complaint. Commissioner Nelson withdrew her motion to find probable cause and Commissioner Schoenfelder withdrew her second. Action was deferred.

2. TC97-031 - IN THE MATTER OF THE APPLICATION OF RSL COM U.S.A., INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

Ms. Stangohr explained the application and recommended approval with restrictions on prepaid calling cards, advance payments and deposits.

Commissioner Nelson moved to grant a Certificate of Authority with restrictions on prepaid calling cards, advance payments and deposits. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

3. TC97-143 - IN THE MATTER OF THE FILING BY U S WEST COMMUNICATIONS, INC. FOR APPROVAL TO OFFER A PROMOTION TO ITS TOLL CUSTOMERS. (Staff Analyst: Dave Jacobson. Staff Attorney: Camron Hoseck.)

Colleen Sevold, U S WEST, explained the filing.

Commissioner Schoenfelder moved to allow AT&T and Dakota Telecommunications Group to withdraw their requests for intervention. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.

Mr. Jacobson presented further explanation of the filing and recommended approval.

Commissioner Nelson moved to deny the application. The motion died for lack of a second. Commissioner Schoenfelder moved to approve the application. Chairman Burg seconded. Commissioner Nelson dissented. Motion passed 2-1.

4. TC97-148 - IN THE MATTER OF THE APPLICATION OF INTELNET SERVICES OF NORTH AMERICA, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Karen Cremer.)

Ms. Stangohr explained the application and recommended approval with restrictions on prepaid calling cards, advance payments and deposits.

Commissioner Nelson moved to approve the application with the restrictions mentioned above. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

5. TC97-153 - IN THE MATTER OF THE APPLICATION OF ACSA LOCAL SWITCHED SERVICES, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Tammi Stangohr. Staff Attorney: Camron Hoseck.)

Ms. Stangohr explained the application and recommended approval.

Commissioner Schoenfelder moved to approve the application. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

6. TC97-166 - IN THE MATTER OF THE FILING BY U S WEST COMMUNICATIONS, INC., FOR APPROVAL OF REVISIONS TO ITS EXCHANGE AND NETWORK SERVICES TARIFF. (Staff Analyst: Dave Jacobson. Staff Attorney: Camron Hoseck.)

Colleen Sevold, U S WEST, explained the filing. Mr. Jacobson recommended approval.

Chairman Burg moved to approve the filing. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

8. IN THE MATTER OF THE FAILURE OF CERTAIN TELECOMMUNICATIONS COMPANIES TO TIMELY FILE GROSS RECEIPTS TAX. (Business Manager: Sue Cichos.)

Ms. Cichos recommended issuing show cause orders to all companies listed on the agenda with the exception of Econophone, Inc., Reliance Telephone Systems, Inc., and Telecare, Inc., which have paid the gross receipts tax since the agenda was distributed.

Commissioner Schoenfelder moved to issue show cause orders to all companies listed on the agenda with the exception of Econophone, Inc., Reliance Telephone Systems, Inc., and Telecare, Inc. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

The meeting was adjourned.

________________________________
Shirleen Fugitt
Administrative Secretary