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South Dakota Public Utilities Commission Meeting
Tuesday, August 22, 2000; 1:30 P.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 Laska Schoenfelder; Commission Counsel Rolayne Ailts Wiest; Deputy Executive Director Sue Chicos; Staff Attorney Karen Cremer; Utility Analysts Dave Jacobson, Harlan Best, Keith Senger, Heather Forney, Leni Healy and Charlene Lund; Transportation/Warehouse Director Bob Knadle; and Administrative Secretary Amy Kayser.

Also present were Dennis Heinz, Susan Anderson Bachman and Rod Leyendecker, Northwestern Public Service; Sharon Wheeting, Larry Wheeting and Jim Robbennolt, Wheetco; Ronald D. Cody and Darrell D. Cruea, Cody, Cruea & Assoc.; Todd Guerrero, Darlene Mandelke and Bernadeen Bridling, Otter Tail Power Co.; Robert Miller, South Dakota Electric Utility Companies; and Sally Reiman and Caren Assman, Consumers For Quality Telecom Choice.

Joining the meeting by telephone were Jim Smith & Harlan Mammen, Associated Milk Producers, Inc. Pipeline, Inc.; and Colleen Sevold, Qwest.

Administration

1. Approval Of The Minutes Of The Commission Meetings Held On August 9, 2000. (Staff: Mary Giddings.)

Commissioner Schoenfelder moved to approve the minutes of the meeting held on August 9, 2000. Chairman Burg seconded. Motion passed 2-0.

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 inquiries and complaints received since the last Commission meeting.

2. IN THE MATTER OF DISMISSING COMPLAINTS CT00-020 and CT00-078.

CT00-020 IN THE MATTER OF THE COMPLAINT FILED BY ROLLIE JENSEN, SIOUX FALLS, SOUTH DAKOTA, AGAINST MCLEODUSA TELECOMMUNICATIONS SERVICES, INC. REGARDING DELAYED INSTALLATION. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

CT00-078 IN THE MATTER OF THE COMPLAINT FILED BY MARK AND SUE CICHOS, PIERRE, SOUTH DAKOTA, AGAINST QWEST COMMUNICATIONS, INC., WEBNET COM, INC. AND ILD TELESERVICES, INC. REGARDING UNAUTHORIZED SWITCHING OF SERVICES. (Staff Analyst: Leni Healy. Staff Attorney: Karen Cremer.)

Ms. Cremer noted that all the complaints had been settled and recommended dismissing the complaints and closing the dockets.

Commissioner Schoenfelder moved to dismiss the complaints and close the dockets. Chairman Burg seconded. Motion passed 2-0.

3. CE00-001 IN THE MATTER OF THE COMPLAINT FILED BY B. J. PEASE, ET AL., SIMILARLY SITUATED CONSUMERS, ABERDEEN, SOUTH DAKOTA, AGAINST NORTHWESTERN PUBLIC SERVICE COMPANY REGARDING MULTIPLE BILLING ISSUES. (Staff Analyst: Charlene Lund. Staff Attorney: Karen Cremer.)

Chairman Burg moved as follows:

1) NWPS must comply with ARSD 20:10:16:02 and provide rate schedules to new customers and a list of publications if NWPS has customer publications other than its customer handbook.

2) NWPS's handling of late charges is misleading. NWPS should not be allowed to list late fees under the heading "adjustments" on the bill and then list other late fees under the heading "late fees." The customer would have no idea that the "adjustment" is related to late fees. In addition, if NWPS incorrectly charges late fees, it should send out corrected bills, not ask the customer to deduct the late fees.

3) NWPS must furnish Commission rules upon request and its customer information brochure.

4) NWPS must post complaint notices in its offices as required by ARSD 20:10:16:01(1). NWPS should periodically check to make sure the notices are still posted.

5) NWPS must be more diligent about conducting investigations when consumers complain and reporting the results back to consumers as required by ARSD 20:10:17:13.

6) NWPS must report all unresolved complaints to the PUC as required by ARSD 20:10:17:13.

7) NWPS must make sure the customer representatives are not telling customers that NWPS requires a social security number to establish service.

8) NWPS shall not tell customers that the Commission has approved practices that were not in fact approved by the Commission.

9) NWPS shall comply with ARSD 20:10:17:12 and notify a customer that the customer has a right to appeal to the Commission for resolution within ten working days after a disconnection notice.

10) Ms. Pease is required to pay her past due bills or face disconnection. The fact that NWPS, in the past, required personal information in order to process a credit card payment does not relieve Ms. Pease of her obligation to pay for her electricity. There were other payment methods available. In addition, NWPS' failure to send Ms. Pease's bill to the right address does not relieve Ms. Pease of her obligation to pay the bill, especially since NWPS has forgiven all late fees and charges.

Commissioner Schoenfelder seconded. Motion passed 2-0.

Electric

1. EL00-001 IN THE MATTER OF THE FILING BY OTTER TAIL POWER COMPANY FOR APPROVAL OF UPDATED SUMMARY LIST OF CONTRACTS WITH DEVIATIONS. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)

Todd Guerrero, representing Otter Tail Power, indicated Otter Tails failure to timely file the contracts was a serious matter and pledged to do its best not to let this happen again. Mr. Senger recommended approval.

Chairman Burg moved to approve the updated summary list of contracts with deviations and the proposed contracts with deviations for street lighting with various municipalities. Commissioner Schoenfelder seconded. Motion passed 2-0.

Natural Gas

1. NG99-002 IN THE MATTER OF THE APPLICATION OF NORTHWESTERN PUBLIC SERVICE FOR AUTHORITY TO INCREASE RATES FOR NATURAL GAS SERVICE. (Staff Analyst: Dave Jacobson. Staff Attorney: Karen Cremer.)

Ms. Wiest asked for comments as to why the Nekota pipeline should not be regulated as a natural gas intrastate pipeline. After discussion among the Commissioners, Staff and NWPS, action was deferred.

2. NG00-004 IN THE MATTER OF THE APPLICATION OF ASSOCIATED MILK PRODUCERS, INC. PIPELINE, INC. TO CONTINUE INTRASTATE NATURAL GAS TRANSPORTATION RATE AND ELIMINATE REFUND CONDITION. (Staff Analyst: Dave Jacobson. Staff Attorney: Karen Cremer.)

Staff recommended approving continuation of existing rate, eliminating refund condition and explained that waiver of administrative rules requested by AMPIP was not necessary.

Chairman Burg moved to authorize AMPIP to continue to provide service at the rate approved by order dated June 2, 1998, in Docket NG97-015 and remove any refund obligation due to overcollections from the period 6/2/98 through 9/1/00 and thereafter. Commissioner Schoenfelder seconded. Motion passed 2-0.

Telecommunications

1. TC99-096 IN THE MATTER OF THE APPLICATION OF ALLIED COMMUNICATIONS GROUP D/B/A ACG FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

Ms. Forney recommended that the certificate of authority be denied.

Commissioner Schoenfelder moved to deny Allied Communications Group's request for a certificate of authority to offer resold interexchange services, including direct dialed 1+ service, inbound Toll-Free service, and travel card services. Chairman Burg seconded. Motion passed 2-0.

2. TC99-111 IN THE MATTER OF THE APPLICATION OF MVX.COM COMMUNICATIONS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE LOCAL EXCHANGE SERVICES IN SOUTH DAKOTA. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

Ms. Forney recommended that the Commission grant MVX.COM Communications a waiver from ARSD 20:10:32:03(13) and grant a certificate of authority to provide telecommunication services within South Dakota with restrictions from offering prepaid calling cards or from accepting customer deposits or advance payments and subject to rural safeguards.

Chairman Burg moved to grant a waiver from ARSD 20:10:32:03(13) and further moved to grant a certificate of authority to MVX.COM Communications, Inc. with restrictions as noted above. Commissioner Schoenfelder seconded. Motion passed 2-0.

3. TC00-019 IN THE MATTER OF THE APPLICATION OF TOTALAXCESS.COM, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

Ms. Forney recommended that the Commission approve the application of TotalAxcess.Com, Inc. for a certificate of authority to provide telecommunication service in South Dakota with the restrictions from offering prepaid calling cards and from accepting customer deposits and advanced payments.

Commissioner Schoenfelder moved to grant a certificate of authority to TotalAxcess.Com, Inc. with restrictions as noted above. Chairman Burg seconded. Motion passed 2-0.

4. TC00-071 IN THE MATTER OF THE APPLICATION OF INTEGRA TELECOM OF SOUTH DAKOTA, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES, INCLUDING LOCAL EXCHANGE SERVICES, IN SOUTH DAKOTA. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)

Ms. Forney recommended that the Commission grant Integra Telecom of South Dakota, Inc. waivers from ARSD 20:10:24:02(8) and 20:10:32:03(11) and also recommended granting the certificate of authority with a continuing $25,000.00 bond requirement and subject to rural safeguards.

Chairman Burg moved to grant Integra Telecom of South Dakota, Inc. waivers from ARSD 20:10:24:02(8) and 20:10:32:03(11) and further moved to grant the certificate of authority with a continuing $25,000.00 bond requirement and subject to rural safeguards. Commissioner Schoenfelder seconded. Motion passed 2-0.

5. TC00-079 IN THE MATTER OF THE APPLICATION OF WORLDWIDE FIBER NETWORKS, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Heather Forney. Staff Attorney: Karen Cremer.)

Ms. Forney recommended that the Commission grant the waiver from filing the financial statements and also recommended approval of Worldwide Fiber's interexchange certificate of authority with restrictions from offering prepaid calling cards or from accepting customer deposits or advance payments.

Commissioner Schoenfelder moved to grant a waiver from filing the financial statements and further moved to grant a certificate of authority to Worldwide Fiber Networks, Inc. with restrictions as noted above. Chairman Burg seconded. Motion passed 2-0.

6. TC00-090 IN THE MATTER OF THE APPLICATION OF KDD AMERICA, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Karen E. Cremer.)

Mr. Senger recommended that the Commission grant KDD America Inc. a certificate of authority to provide interexchange telecommunication services in South Dakota with restrictions from offering prepaid calling cards and from accepting customer deposits and advanced payments.

Commissioner Schoenfelder moved to grant a certificate of authority to KDD America, Inc. with restrictions as noted above. Chairman Burg seconded. Motion passed 2-0.

7. TC00-100 IN THE MATTER OF THE APPLICATION OF EVULKAN, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Karen E. Cremer.)

Mr. Senger recommended that the Commission grant eVulkan, Inc. a waiver from ARSD 20:10:24:02(08) and grant a certificate of authority to provide interexchange telecommunication services of South Dakota with restrictions from offering prepaid calling cards and from accepting customer deposits and advanced payments.

Commissioner Schoenfelder moved to grant a waiver from ARSD 20:10:24:02(08) and further moved to grant a certificate of authority to eVulkan, Inc. with restrictions as noted above. Chairman Burg seconded. Motion passed 2-0.

8. TC00-115 IN THE MATTER OF THE APPLICATION OF UTILITY.COM, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE TELECOMMUNICATIONS SERVICES IN SOUTH DAKOTA. (Staff Analyst: Heather Forney.)

Ms. Forney recommended that the Commission grant Utility.Com, Inc. an interexchange certificate of authority with the bond requirements. She noted that since the application was received on July 24, the COA cannot be issued until September 24, due to the 60-day rule.

Commissioner Schoenfelder moved to grant a certificate of authority with the bond requirements to Utility.COM, Inc. effective as of September 24, 2000. Chairman Burg seconded. Motion passed 2-0.

ADDENDUM

Transportation/Warehouse

1. GD00-001 IN THE MATTER OF THE APPLICATION OF WHEETCO, INC. FOR A GRAIN DEALER LICENSE AND SETTING THE AMOUNT OF APPLICANT'S BOND. (Transportation/Warehouse Director: Bob Knadle. Staff Attorney: Karen Cremer.)

Mr. Wheeting explained why additional time was needed to secure financing.

Chairman Burg moved to grant the extension of time. Motion died for lack of a second.

Telecommunications

1. TC00-058 IN THE MATTER OF THE FILING FOR APPROVAL OF AN INTERCONNECTION AGREEMENT BETWEEN U S WEST COMMUNICATIONS, INC. AND INTEGRA TELECOM OF SOUTH DAKOTA, INC. (Staff Attorney: Karen Cremer.)

Chairman Burg moved to approve the interconnection agreement between Integra Telecom of South Dakota, Inc. and U S West Communications, Inc. (now Qwest). Commissioner Schoenfelder seconded. Motion passed 2-0.

Meeting adjourned.

______________________________
Amy J. Kayser

Administrative Secretary