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South Dakota Public Utilities Commission Meeting
Tuesday, July 13, 1999; 10:30 A.M.
State Capitol Building, Room 412
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, Deputy Executive Director Sue Cichos, General Counsel Mike Myers, Commission Advisor Greg Rislov, Staff Attorneys Karen Cremer and Camron Hoseck, Utility Analysts Dave Jacobson, Michele Farris, and Keith Senger, Legal Intern Jeff Koerselman, and Administrative Secretary Shirleen Fugitt.

Also present were Rich Coit, SDITC; Dave Gerdes, MCI; and Mr. and Mrs. Bestgen, complainants from Whitewood, South Dakota.

Joining the meeting by phone were Bill Haas, McLeod USA; Rusty Molstad and Warren Lotsberg, Northwestern Public Service; Dave Seville, Martin & Associates; Alex Duarte, Colleen Sevold and Tom Welk, U S WEST; Mary Lohnes, Midco Communications; Mike Kumm, Watertown Municipal Utilities; Norma Eachen, Codington-Clark Electric Cooperative; Don Jiracek, GSA, Inc.; and Bart Banks, an attorney from Rapid City, South Dakota.

Administration

1. Approval Of The Minutes Of The Commission Meetings Held On June 22 and June 24, 1999. (Staff: Shirleen Fugitt.)

Commissioner Nelson moved to approve the minutes of June 22 and June 24, 1999. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

Consumer Issues

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

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

2. TC98-132 IN THE MATTER OF THE COMPLAINT FILED BY WILSON ENTERPRISES, INC., HILL CITY, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING UPDATING LINES. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Ms. Healy reported several unsuccessful attempts to contact Mr. Wilson. Colleen Sevold reported that U S WEST has completed the necessary work needed to satisfy this complaint. Mr. Hoseck recommended the complaint be dismissed and the docket be closed.

Chairman Burg moved to dismiss the complaint and close the docket. Commissioner Schoenfelder seconded and Commissioner Nelson concurred. Motion passed 3-0.

3. TC98-196 IN THE MATTER OF THE COMPLAINT FILED BY DON JIRACEK ON BEHALF OF GSA, INC., RAPID CITY, SOUTH DAKOTA, AGAINST MCLEOD USA, REGARDING INADEQUATE SERVICE. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Bill Haas explained the motion to strike any reference to Exhibit A and Exhibit A itself. Mr. Myers recommended granting the Motion to Strike. The Commission will issue an order in this matter at the next Commission meeting.

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

4. CT99-003 IN THE MATTER OF THE COMPLAINT FILED BY CONSTANCE JOHNSON, SIOUX FALLS, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING DISPUTED BILLING. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Mr. Hoseck recommended dismissing the complaint and closing the docket.

Commissioner Nelson moved to dismiss the complaint and close the docket. Commissioner Schoenfelder seconded and Chairman Burg concurred. Motion passed 3-0.

5. CT99-007 IN THE MATTER OF THE COMPLAINT FILED BY PHILIP AND DARLENE BESTGEN, WHITEWOOD, SOUTH DAKOTA, AGAINST U S WEST COMMUNICATIONS, INC. REGARDING LACK OF EASEMENT FOR FACILITY PROPERTY. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Philip Bestgen appeared before the Commission to explain his complaint against U S WEST. Tom Welk representing U S WEST stated that he feels the Commission has no jurisdiction as this is a breach of contract matter. Following discussion, Mr. Hoseck recommended finding probable cause since it did raise a question of whether U S WEST had committed an unlawful or unreasonable act, rate, practice, or ommission.

Commissioner Nelson moved to find probable cause. The motion died for lack of a second.

Chairman Burg moved to find no probable cause. Commissioner Schoenfelder seconded. Commissioner Nelson dissented. Motion passed 2-1.

U S WEST will award $1,000 to Mr. and Mrs. Bestgen.

6. CT99-008 IN THE MATTER OF THE COMPLAINT FILED BY BRADY AND TIFFINY CRAMER, SIOUX FALLS, SOUTH DAKOTA, AGAINST MCI WORLDCOM REGARDING UNAUTHORIZED SWITCHING OF LONG DISTANCE SERVICE. (Consumer Representative: Leni Healy. Staff Attorney: Camron Hoseck.)

Tiffiny Kramer explained her complaint against MCI for unauthorized switching. Dave Gerdes representing MCI addressed the complaint. Ms. Healy recommended finding probable cause.

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

Electric

1. EL99-008 IN THE MATTER OF THE FILING BY THE CITY OF WATERTOWN, SOUTH DAKOTA, FOR APPROVAL TO MODIFY ASSIGNED SERVICE AREA BETWEEN CODINGTON CLARK ELECTRIC COOPERATIVE AND THE CITY OF WATERTOWN, SOUTH DAKOTA. (Staff Analyst: Michele Farris. Staff Attorney: Camron Hoseck.)

Mike Kumm, Watertown Municipal Utilities explained the filing. Ms. Farris recommended approval.

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

Gas/Electric

1. GE99-004 IN THE MATTER OF THE FILING BY NORTHWESTERN PUBLIC SERVICE FOR APPROVAL OF REVISED CUSTOMER INFORMATION HANDBOOK. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

Rusty Molstad, Northwestern Public Service, explained the filing. Ms. Farris presented further explanation and recommended approval. Action was deferred.

Telecommunications

1. TC99-028 IN THE MATTER OF THE APPLICATION OF NOR COMMUNICATIONS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Michele Farris. Staff Attorney: Camron Hoseck.)

Ms. Farris explained the application and recommended approval with restrictions on advance payments, deposits and prepaid calling cards and a waiver of ARSD 20:10:24:02(8).

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

2. TC99-038 IN THE MATTER OF THE APPLICATION OF FON DIGITAL NETWORK, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Bob Knadle. Staff Attorney: Karen Cremer.)

Ms. Cremer explained the application and recommended approval with a waiver of SDCL 20:10:24:02(8) and subject to receipt of a $25,000 bond.

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

3. TC99-045 IN THE MATTER OF THE APPLICATION OF DSLNET COMMUNICATIONS, LLC FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES, INCLUDING LOCAL EXCHANGE SERVICES, IN SOUTH DAKOTA. (Staff Analyst: Bob Knadle. Staff Attorney: Karen Cremer.)

Ms. Cremer explained the application, stated that DSLnet had furnished a $25,000 bond, and recommended approval subject to rural safeguards.

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

The following 21 items were consolidated and acted upon with one motion.

4. TC99-049 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR EAST PLAINS TELECOM, INC. (Staff Analysts: Harlan Best/Keith Senger. Staff Attorney: Karen Cremer.)

5. TC99-050 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR VIVIAN TELEPHONE COMPANY D.B.A GOLDEN WEST COMMUNICATIONS, INC. (Staff Analysts: Harlan Best/Keith Senger. Staff Attorney: Karen Cremer.)

8. TC99-054 IN THE MATTER OF THE FILING BY FORT RANDALL TELEPHONE COMPANY AND MOUNT RUSHMORE TELEPHONE COMPANY TO ESTABLISH SWITCHED ACCESS RATES. (Staff Analysts: Harlan Best/Keith Senger. Staff Attorney: Karen Cremer.)

10. TC99-058 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR INTERSTATE TELECOMMUNICATIONS COOPERATIVE, INC. (Staff Analysts: Harlan Best/Keith Senger. Staff Attorney: Karen Cremer.)

11. TC99-063 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR SPLITROCK TELECOM COOPERATIVE, INC. (Staff Analysts: Harlan Best/Keith Senger. Staff Attorney: Karen Cremer.)

12. TC99-064 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR MIDSTATE TELEPHONE COMPANY AND HEARTLAND COMMUNICATIONS, INC. (Staff Analysts: Harlan Best/Keith Senger. Staff Attorney: Karen Cremer.)

13. TC99-065 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR VALLEY TELECOMMUNICATIONS COOPERATIVE ASSOCIATION AND VALLEY CABLE & SATELLITE COMMUNICATIONS. (Staff Analysts: Harlan Best/Keith Senger. Staff Attorney: Karen Cremer.)

14. TC99-066 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR SULLY ES TELEPHONE COOPERATIVE, INC. AND VENTURE COMMUNICATIONS, INC. (Staff Analysts: Harlan Best/Keith Senger. Staff Attorney: Karen Cremer.)

15. TC99-067 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR THE LOCAL EXCHANGE CARRIERS ASSOCIATION. (Staff Analysts: Harlan Best/Keith Senger. Staff Attorney: Karen Cremer.)

16. TC99-068 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR STATELINE TELECOMMUNICATIONS, INC. (Staff Analysts: Harlan Best/Keith Senger. Staff Attorney: Karen Cremer.)

17. TC99-069 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR BROOKINGS MUNICIPAL TELEPHONE COMPANY. (Staff Analysts: Harlan Best/Keith Senger. Staff Attorney: Karen Cremer.)

18. TC99-070 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR MCCOOK COOPERATIVE TELEPHONE COMPANY. (Staff Analysts: Harlan Best/Keith Senger. Staff Attorney: Karen Cremer.)

19. TC99-071 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR SANBORN TELEPHONE COOPERATIVE AND SANCOM, INC. (Staff Analysts: Harlan Best/Keith Senger. Staff Attorney: Karen Cremer.)

20. TC99-072 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR GOLDEN WEST TELECOMMUNICATIONS COOPERATIVE, INC. (Staff Analysts: Harlan Best/Keith Senger. Staff Attorney: Karen Cremer.)

21. TC99-073 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS RATES FOR U S WEST COMMUNICATIONS, INC. (Staff Analysts: Harlan Best/Keith Senger. Staff Attorney: Karen Cremer.)

22. TC99-074 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR CHEYENNE RIVER SIOUX TRIBE TELEPHONE AUTHORITY. (Staff Analysts: Harlan Best/Keith Senger. Staff Attorney: Karen Cremer.)

23. TC99-075 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR MOBRIDGE TELECOMMUNICATIONS COMPANY. (Staff Analysts: Harlan Best/Keith Senger. Staff Attorney: Karen Cremer.)

24. TC99-078 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR TRI-COUNTY TELCOM, INC. (Staff Analysts: Harlan Best/Keith Senger. Staff Attorney: Karen Cremer.)

25. TC99-079 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR ROBERTS COUNTY TELEPHONE COOPERATIVE ASSOCIATION AND RC COMMUNICATIONS, INC. (Staff Analysts: Harlan Best/Keith Senger. Staff Attorney: Karen Cremer.)

26. TC99-080 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR SIOUX VALLEY TELEPHONE COMPANY. (Staff Analysts: Harlan Best/Keith Senger. Staff Attorney: Karen Cremer.)

27. TC99-081 IN THE MATTER OF THE ESTABLISHMENT OF SWITCHED ACCESS REVENUE REQUIREMENT FOR DTG COMMUNITY TELEPHONE. (Staff Analysts: Harlan Best/Keith Senger. Staff Attorney: Karen Cremer.)

Ms. Cremer recommended a filing fee for actual costs not to exceed $100,000 be assessed for each of the 21 items listed above.

Commissioner Schoenfelder moved to assess a filing fee not to exceed $100,000 for each of the 21 items listed above. Commissioner Nelson seconded and Chairman Burg concurred. Motion passed 3-0.

6. TC99-051 IN THE MATTER OF THE APPLICATION OF NET-TEL CORPORATION D/B/A NET-TEL COMMUNICATIONS CORPORATION (FL) FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Dave Jacobson. Staff Attorney: Camron Hoseck.)

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

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

7. TC99-052 IN THE MATTER OF THE APPLICATION OF COLUMBIA TELECOMMUNICATIONS, INC. D.B.A. AXESSA FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Bob Knadle. Staff Attorney: Karen Cremer.)

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

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

9. TC99-057 IN THE MATTER OF THE FILING BY U S WEST COMMUNICATIONS, INC. FOR APPROVAL OF AGREEMENT FOR LOCAL WIRELINE NETWORK INTERCONNECTION AND SERVICE RESALE BETWEEN MCLEODUSA COMMUNICATIONS SERVICES, INC. AND U S WEST COMMUNICATIONS, INC. (Staff Analyst: Harlan Best. Staff Attorney: Camron Hoseck.)

Alex Duarte, U S WEST, and Bill Haas, McLeod USA, addressed the filing.

Chairman Burg moved to approve adoption of the agreement by McLeodUSA under 252(i) of the Telecommunications Act. Commissioner Nelson seconded. Commissioner Schoenfelder dissented noting that she feels the agreement is incomplete. Motion passed 2-1.

The meeting was adjourned.

_________________________________
Shirleen Fugitt
Administrative Secretary