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PUBLIC UTILITIES COMMISSION MEETING
November 18, 1997; 10:00 A.M.
State Capitol Building, Room 464
Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING

Chairman Jim Burg called the meeting to order.  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 Division Director Greg Rislov, Telecommunications Analysts Harlan Best and Charlie Bolle, Utility Analysts Bob Knadle, Dave Jacobson and Tammi Stangohr, Engineer Martin Bettmann, Consumer Representative Leni Healy, Business Manager Sue Cichos, and Administrative Secretary Shirleen Fugitt.

Also present were Robert Marmet, DTG; Dave Gerdes representing MCI and NSP; Loren Hiatt, AT&T; Tom Simmons and Mary Lohnes, Midco Communications; Colleen Sevold and Jon Lehner, U S WEST; Bob Riter and Dave Pfeifle, TAG; Bob Mercer, Rapid City Journal; and Rich Coit, SDITC. 

Joining the meeting by phone were Kevin Kouba, OtterTail Power; Bill Haas, McLeodUSA; Greg Von Wald, Tel Serv; Don Low, Sprint; Karen Huizenga, MidAmerican Energy; Jim Wilcox, NSP; and Bonnie Murray, complainant from Sioux Falls.   

Administration

1.         Approval Of The Minutes Of The Commission Meetings Held On October 22, 1997, two meetings on October 28, 1997, and November 7, 1997.  (Staff: Shirleen Fugitt.)

Commissioner Schoenfelder moved to approve the minutes of the meetings listed above.  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.           EL97-008        IN THE MATTER OF THE COMPLAINT FILED BY JOHN BYRE, SIOUX FALLS, SD, AGAINST NORTHERN STATES POWER COMPANY REGARDING A BILL.  (Staff Analyst:  Steve Wegman.  Staff Attorney:  Camron Hoseck.) 

Commissioner Nelson moved that the Commission find that Mr. Byre is responsible for the costs of moving the cable in the amount of $653.53 because the construction of the building necessitated the moving of the cable.  Commissioner Schoenfelder seconded and Chairman Burg concurred.  Motion passed 3-0.

2.            EL97-013 IN THE MATTER OF THE COMPLAINT FILED BY ARNOLD MURRAY CONSTRUCTION, SIOUX FALLS, SD, AGAINST NORTHERN STATES POWER COMPANY REGARDING TRANSFERRING UNPAID BALANCES TO ITS ACCOUNT.  (Consumer Representative:  Leni Healy.  Staff Attorney:  Camron Hoseck.)

Commissioner Schoenfelder moved that the Commission find that NSP's transfer of final bills is reasonable.  Chairman Burg seconded.  Commissioner Nelson dissented.  Motion passed 2-1.

3.            EL97-021        IN THE MATTER OF THE FILING BY LAKE REGION ELECTRIC ASSOCIATION, INC. FOR APPROVAL OF ASSIGNMENT OF ELECTRIC SERVICE FROM OTTER TAIL POWER COMPANY TO LAKE REGION ELECTRIC ASSOCIATION, INC.  (Staff Analyst:  Martin Bettmann.  Staff Attorney:  Karen Cremer.)

Kevin Kouba, OtterTail Power, explained the filing.  Mr. Bettmann recommended approval.

Chairman Burg moved to approve the assignment of electric service territory.  Commissioner Nelson seconded and Commissioner Schoenfelder concurred.  Motion passed 3-0.

Natural Gas

1.             NG97-009       IN THE MATTER OF THE COMPLAINT FILED BY BRUCE ITTERMAN, HARRISBURG, SD, AGAINST MIDAMERICAN ENERGY COMPANY REGARDING A GAS BILL.  (Consumer Representative:  Leni Healy.  Staff Attorney:  Karen Cremer.)

Chairman Burg moved to find Bruce Itterman not responsible for the charges.  Commissioner Nelson seconded and Commissioner Schoenfelder concurred.  Motion passed 3-0.

2.          NG97-012       IN THE MATTER OF THE COMPLAINT FILED BY ARNOLD MURRAY CONSTRUCTION, SIOUX FALLS, SD, AGAINST MIDAMERICAN ENERGY COMPANY REGARDING TRANSFERRING UNPAID BALANCES TO ITS ACCOUNT.  (Consumer Representative:  Leni Healy.  Staff Attorney:  Camron Hoseck.)

Commissioner Schoenfelder moved that the Commission find that MidAmerican may transfer bills involving the same name and same class of service.  Commissioner Schoenfelder further moved that MidAmerican's failure to itemize the transfers and identify the transfers by account numbers on the bill when the transfers are added is an unreasonable practice.  And finally, Commissioner Schoenfelder further moved that MidAmerican's failure to itemize late charges on the bills when the late charges are actually incurred or transferred is also an unreasonable practice.  Chairman Burg seconded.  Commissioner Nelson dissented.  Motion passed 2-1.

3.          NG97-019       IN THE MATTER OF THE FILING BY MONTANA-DAKOTA UTILITIES CO., A DIVISION OF MDU RESOURCES GROUP, INC. FOR APPROVAL OF A CONTRACT WITH DEVIATION WITH MERILLAT CORP.  (Staff Analyst:   Greg Rislov.  Staff Attorney:  Camron Hoseck.)

Mr. Wegman requested deferral.  Action was deferred.

Telecommunications

1.        TC96-107        IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR U S WEST COMMUNICATIONS, INC.  (Staff Analyst:  Harlan Best.  Staff Attorney:  Karen Cremer.)

Commissioner Schoenfelder moved that the fair and reasonable prices which U S WEST may charge for switched access service in South Dakota shall be as follows, on the following dates:        

June 13, 1997            .0364 cents
December 1, 1997     .0414 cents
June 1, 1998              .0465 cents
December 1, 1998     .0515 cents
June 1, 1999              .0565 cents
December 1, 1999     .0609 cents

As a second part of this motion, Commissioner Schoenfelder moved that U S WEST refund or credit to its switched access customers the difference between the .064 cent rate it imposed and billed pursuant to SDCL 49-31-12.4(5) and the prices which are being determined today and that U S WEST pay interest on those amounts at the staff recommended rate of return of 9.62%.  Chairman Burg seconded and Commissioner Nelson concurred.  Motion passed 3-0.

2.             TC97-054        IN THE MATTER OF THE FILING BY THE LOCAL EXCHANGE CARRIERS ASSOCIATION FOR SWITCHED ACCESS TARIFF REVISIONS.  (Staff Analyst:  Harlan Best.  Staff Attorney:  Karen Cremer.)

Rich Coit, SDITC, explained the filing and requested approval of the rates.  Mr. Best recommended approval of the tariff sheets as filed.  Loren Hiatt noted that even though AT&T  has intervened, they are not requesting a hearing in this matter. 

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

3.           TC97-145        IN THE MATTER OF THE APPLICATION OF VOCALL COMMUNICATIONS CORP. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA.  (Staff Analyst:  Dave Jacobson.  Staff Attorney:  Camron Hoseck.)

Mr. Jacobson recommended approval.

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

4.             TC97-149        IN THE MATTER OF THE FILING BY SPRINT COMMUNICATIONS COMPANY, L.P. FOR APPROVAL OF NEGOTIATED TERMS OF AGREEMENT FOR INTERCONNECTION, RESALE, AND UNBUNDLED ELEMENTS BETWEEN SPRINT COMMUNICATIONS COMPANY, L.P. AND U S WEST COMMUNICATIONS, INC.  (Staff Attorney:  Camron Hoseck.)

Don Low, Sprint, explained the agreement.  Ms. Wiest recommended approval of the agreement subject to the condition that the agreement be revised to state that the agreement shall be construed in accordance with the laws of the state of South Dakota and that the parties file any amendments to the agreement within 90 days of the date of the Order.    

Commissioner Schoenfelder moved to approve the agreement with the conditions explained  above.  Commissioner Nelson seconded and Chairman Burg concurred.  Motion passed 3-0.

5.              TC97-151        IN THE MATTER OF THE APPLICATION OF GLD, GROUP LONG DISTANCE, INC. FOR AN AMENDED CERTIFICATE OF AUTHORITY TO PROVIDE LOCAL EXCHANGE SERVICE IN SOUTH DAKOTA.  (Staff Analyst:  Tammi Stangohr.  Staff Attorney:  Camron Hoseck.)

Ms. Stangohr explained the application and recommended approval subject to rural safeguards, a waiver of 20:10:24:02(8) and (12) and with restrictions on deposits, advance payments and prepaid calling cards. 

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

6.          TC97-157        IN THE MATTER OF THE FILING BY U S WEST COMMUNICATIONS, INC., FOR 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 presented further explanation and recommended approval.

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

7.          TC97-161        IN THE MATTER OF THE APPLICATION OF SBR, 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 with restrictions on prepaid calling cards, advance payments and deposits.

Chairman Burg moved to approve the application with restrictions on prepaid calling cards, advance payments and deposits.  Commissioner Nelson seconded and Commissioner Schoenfelder concurred.  Motion passed 3-0.

8.           TC97-162        IN THE MATTER OF THE FILING BY U S WEST COMMUNICATIONS, INC., FOR REVISIONS TO ITS EXCHANGE AND NETWORK SERVICES CATALOG.  (Staff Analyst:  Tammi Stangohr.  Staff Attorney:  Karen Cremer.)

Colleen Sevold, U S WEST, explained the filing.  Ms. Stangohr recommended approval with fully competitive status.

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

Addendum

Electricity

1.              EL97-019        IN THE MATTER OF THE FILING BY MONTANA-DAKOTA UTILITIES CO., A DIVISION OF MDU RESOURCES GROUP, INC. FOR APPROVAL OF REVISIONS TO ITS OCCASIONAL POWER PURCHASE NON-TIME DIFFERENTIATED RATE 95, SHORT-TERM POWER PURCHASE TIME DIFFERENTIATED RATE 96 AND LONG-TERM POWER PURCHASE TIME DIFFERENTIATED RATE 97.  (Staff Analyst:  Bob Knadle.  Staff Attorney:  Karen Cremer.) 

Mr. Knadle explained the filing and recommended approval.

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

Telecommunications

1.        TC96-054        IN THE MATTER OF THE APPLICATION OF MCLEODUSA TELECOMMUNICATIONS SERVICES, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES, INCLUDING LOCAL EXCHANGE SERVICES, IN SOUTH DAKOTA.  (Staff Analyst:  Tammi Stangohr.  Staff Attorney:  Karen Cremer.)

Bill Haas, McLeodUSA, explained the filing.  Ms. Stangohr recommended approval of the amended Certificate of Authority.

Commissioner Nelson moved to approve the amended Certificate of Authority.  Commissioner Schoenfelder seconded and Commissioner Nelson concurred.  Motion passed 3-0.

2.        TC97-059        IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR WEST RIVER COOPERATIVE TELEPHONE COMPANY.  (Staff Analyst:  Harlan Best.  Staff Attorney:  Karen Cremer.)

Chairman Burg moved to grant intervention withdrawal to U S WEST.  Commissioner Nelson seconded and Commissioner Schoenfelder concurred.  Motion passed 3-0.

3.           TC97-060        IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR SOUTH DAKOTA NETWORK, INC.  (Staff Analyst:  Harlan Best.  Staff Attorney:  Karen Cremer.)

Commissioner Nelson moved to grant intervention withdrawal to U S WEST.  Chairman Burg seconded and Commissioner Schoenfelder concurred.  Motion passed 3-0.

4.          TC97-061        IN THE MATTER OF THE FILING BY THE LOCAL EXCHANGE CARRIERS ASSOCIATION FOR SWITCHED ACCESS TARIFF REVISIONS.  (Staff Analyst:  Harlan Best.  Staff Attorney:  Karen Cremer.)

Commissioner Nelson moved to grant intervention withdrawal to U S WEST.  Commissioner Schoenfelder seconded and Chairman Burg concurred.  Motion passed 3-0.

5.              TC97-063        IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR VALLEY TELECOMMUNICATIONS COOP. ASSN.  (Staff Analyst:  Tammi Stangohr.  Staff Attorney:  Karen Cremer.)

Commissioner Schoenfelder moved to grant intervention withdrawal to U S WEST.  Chairman Burg seconded and Commissioner Nelson concurred.  Motion passed 3-0.

6.         TC97-064        IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR MIDSTATE TELEPHONE COMPANY.  (Staff Analyst:  Bob Knadle.  Staff Attorney:  Karen Cremer.)

Chairman Burg moved to grant intervention withdrawal to U S WEST.  Commissioner Schoenfelder seconded and Commissioner Nelson concurred.  Motion passed 3-0.    

7.            TC97-065        IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR MCCOOK COOPERATIVE TELEPHONE COMPANY.  (Staff Analyst:  Harlan Best.  Staff Attorney:  Karen Cremer.)

Commissioner Schoenfelder moved to grant intervention withdrawal to U S WEST.  Commissioner Nelson seconded and Chairman Burg concurred.  Motion passed 3-0.

8.       TC97-118        IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR WEST RIVER TELECOMMUNICATIONS COOPERATIVE.  (Staff Analyst:  Harlan Best.  Staff Attorney:  Karen Cremer.)

Commissioner Schoenfelder moved to grant intervention withdrawal to U S WEST.  Commissioner Nelson seconded and Chairman Burg concurred.  Motion passed 3-0.

9.       TC97-165        IN THE MATTER OF THE FILING BY U S WEST COMMUNICATIONS, INC., FOR APPROVAL OF AGREEMENT FOR SERVICE RESALE BETWEEN MIDCO COMMUNICATIONS, INC. AND U S WEST COMMUNICATIONS, INC.  (Staff Attorney:  Camron Hoseck.)

Tom Simmons, Midco Communications, explained the filing. 

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

The meeting was adjourned.

 

_____________________________
Shirleen Fugitt
Administrative Secretary