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South Dakota Public Utilities Commission Meeting
Tuesday, April 17, 2001; 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 Pam Nelson; Executive Director Debra Elofson; Commission Advisor Greg Rislov; Commission Counsel Rolayne Wiest; Staff Attorney Karen Cremer; Utility Analysts Charlene Lund, Dave Jacobson, Harlan Best, Heather Forney, Keith Senger, Leni Healy, Mary Healy, and Michele Farris; Assistant Executive Director Sue Cichos; and Administrative Secretary Mary Giddings.
Also present were Al Krug and Jim Wilcox, Xcel Energy; Bob Miller, SD Electric Utility Companies; Dave Gerdes, World Com and PowerNetGlobal Communications, Inc.; Darla Pollman Rogers and Mark Benton, Midstate Telecom, Inc.; and Don Lee, Martin Group/ Midstate Telecom, Inc.
Joining the meeting by telephone were Colleen Sevold and Tom Welk, Qwest Corporation; Darrell Gomarko, TELEC Consulting; Mary Lohnes, Midcontinent Communications; Marv Sorenson and Suzan Stewart, MidAmerican Energy Company; Stewart Wevik, Black Hills Power and Light; Dave Semerad, West River Electric; and David Prazak, Bruce Gerhardson and John Fabre, Otter Tail Power Co.
Administration
1. Approval Of The Minutes Of The Commission Meetings Held On March 2 and 6, 2001. (Staff: Mary Giddings.)
Commissioner Nelson moved to approve the minutes of the Commission meetings held on March 2 and 6, 2001. 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. Leni Healy presented an update on inquiries and complaints received since March 22, 2001, followed by a brief discussion of winter energy bills.
2. IN THE MATTER OF DISMISSING COMPLAINT DOCKETS CT01-003, CT01-004, CT01- 005, CT01-006, CT01-007, CT01-009, and CT01-011.
Ms. Cremer noted that there were no further comments on these dockets.
Chairman Burg moved to dismiss the complaints and close the dockets on CT01-003, CT01- 004, CT01-005, CT01-006, CT01-007, CT01-009 and CT01-011. Commissioner Nelson seconded. Motion passed 2-0.
Ms. Leni Healy stated that a cross claim had been filed and requested that action be deferred. Dave Gerdes, representing PowerNet Global Communications, argued that the motion to dismiss should be denied.
Chairman Burg moved to deny Broadwing's motion to dismiss. Commissioner Nelson seconded. Motion passed 2-0.
Electric
Jim Wilcox and Al Krug, representing Northern States Power Company (now Xcel Energy), explained the request for an extension of the test period for an additional 12 months and answered questions from the Commissioners and Staff. Ms. Forney recommended that the extension be granted subject to reports being submitted every six months instead of every two years.
Commissioner Nelson moved to grant the extension of the test period for an additional 12 months with reports due every six months. Chairman Burg seconded. Motion passed 2-0.
Mr. Jacobson explained the status of Xcel's proposal. Jim Wilcox, representing Xcel Energy, stated that Xcel intended to honor the commitment in the memorandum of understanding within the next few weeks. No action taken.
Jim Wilcox, representing Xcel Energy, Inc, explained the petition. Mr. Jacobson further explained the petition and recommended that the Commissioners provide the statements to the SEC.
Chairman Burg moved to provide the statements to the Securities and Exchange Commission. Commissioner Nelson seconded. Motion passed 2-0.
4. EL01-004 IN THE MATTER OF THE FILING BY WEST RIVER ELECTRIC ASSOCIATION, INC. FOR APPROVAL OF AN ELECTRIC SERVICE TERRITORY AGREEMENT WITH BLACK HILLS POWER & LIGHT COMPANY. (Staff Analyst: Michele Farris. Staff Attorney: Karen Cremer.)
Dave Semerad, representing West River Electric Association, explained the service territory agreement. Stewart Wevik, representing Black Hills Power and Light Company, explained that "frozen customers" refers to customers living in one provider's territory but being served by another. Ms. Farris commented that service has already been changed, the customers are happy with the arrangements and recommended that the agreement be approved.
Chairman Burg moved to approve the service territory agreement. Commissioner Nelson seconded. Motion passed 2-0.
Bruce Gerhardson and Dave Prazak, representing Otter Tail Power Co. (OTP), explained the voluntary renewable energy tariff and responded to questions from the Commissioners and Staff. Mr. Senger recommended that the tariff be approved commenting that this is a voluntary program and OTP is assuming risk of all profits and losses.
Chairman Burg moved to approve the voluntary renewable energy rider. Commissioner Nelson seconded. Motion passed 2-0.
Gas/Electric
Marv Sorenson, representing MidAmerican Energy Company, explained the tariff revisions. Mr. Senger recommended that they be approved with an effective date of May 1, 2001.
Commissioner Nelson moved to approve the tariff revisions with an effective date of May 1, 2001. Chairman Burg seconded. Motion passed 2-0.
Telecommunications
Ms. Forney recommended that the FairPoint Communications Solutions Corp. certificate of authority application be approved with restrictions from offering prepaid calling cards, accepting customer deposits or advance payments and subject to rural safeguards.
Commissioner Nelson moved to grant a certificate of authority to Fairpoint Communications Solutions Corp. with the restrictions as noted above and subject to rural safeguards. Chairman Burg seconded. Motion passed 2-0.
Ms. Cremer recommended that the resale interconnection agreement be denied as Flatel, Inc. does not have a certificate of authority.
Chairman Burg moved to deny the interconnection agreement. Commissioner Nelson seconded. Motion passed 2-0.
Mr. Senger recommended that the certificate of authority application be approved with the waiver of ARSD 20:10:24:02(8) and restrictions from offering prepaid calling cards, accepting advance payments and customer deposits.
Commissioner Nelson moved to grant a certificate of authority to SNiP Link, LLC with the waiver and restrictions as noted above. Chairman Burg seconded. Motion passed 2-0.
Mr. Best recommended that the filing withdrawal be approved.
Chairman Burg moved to approve the withdrawal of the filing. Commissioner Nelson seconded. Motion passed 2-0.
5. TC01-007 and Addendum 2. TC01-007
IN THE MATTER OF THE APPLICATION OF MIDSTATE TELECOM, INC. FOR A CERTIFICATE OF AUTHORITY TO PROVIDE LOCAL EXCHANGE SERVICES IN SOUTH DAKOTA. (Staff Analyst: Keith Senger. Staff Attorney: Karen Cremer.)
Darla Pollman Rogers, representing Midstate Telecom, Inc., explained the application. Mr.
Senger recommended that the application be approved with a waiver from ARSD 20:10:32:03(11) and (14); subject to a continuous $25,000 surety bond; subject to rural safeguards; exemption from filing company-specific cost-based switched access rates for one year; and be allowed to use the average rate of the cost companies with less than 100,000 lines.
Chairman Burg moved to grant a certificate of authority to Midstate Telecom, Inc. with the waiver and bond as noted above; subject to rural safeguards; with the exemption from filing company-specific cost-based switched access rates for one year; and allowed to use the average rate of the cost companies with less than 100,000 lines. Commissioner Nelson seconded. Motion passed 2-0.
Tom Welk, representing Qwest, explained the amendments to the interconnection agreements. Ms. Cremer, on behalf of Mr. Frazier, recommended that the amendments be approved.
Chairman Burg moved to approve the amendments to the interconnection agreements. Commissioner Nelson seconded. Motion passed 2-0.
Darrell Gomarko, representing TELEC Consulting, explained the filing with rates effective May 1, 2001.
Commissioner Nelson moved to approve the proposed tariff rates with an effective date of May 1, 2001. Chairman Burg seconded. Motion passed 2-0.
Ms. Cremer, on behalf of Mr. Frazier, recommended that the waiver amendment to the interconnections agreement be approved.
Chairman Burg moved to approve the waiver amendment to the interconnection agreement. Commissioner Nelson seconded. Motion passed 2-0.
Rich Coit, representing SDITC, explained the petition to intervene. Ms. Farris noted that Continental First Star Communications Company has not responded to Staff's information requests.
Chairman Burg moved to grant SDITC's petition for intervention. Commissioner Nelson seconded. Motion passed 2-0.
Tom Welk, representing Qwest, stated that Qwest had sent a letter to withdraw the petition to intervene. The Commission recognized Qwest's letter to withdraw the petition to intervene. No action was needed.
Ms. Cremer, on behalf of Mr. Frazier, recommended that the amendment to the interconnection agreement be approved.
Commissioner Nelson moved to approve the amendment to the interconnection agreement. Chairman Burg seconded. Motion passed 2-0.
Ms. Forney explained the certificate of authority request to provide interexchange telecommunication services in South Dakota with an effective date of May 18, 2001.
Chairman Burg moved to grant a certificate of authority with an effective date of May 18, 2001. Commissioner Nelson seconded. Motion passed 2-0.
Colleen Sevold, representing Qwest, explained the tariff revisions. Mr. Senger recommended that the tariff revisions be approved.
Commissioner Nelson moved to approve the tariff revisions. Chairman Burg seconded. Motion passed 2-0.
Natural Gas
1. IN THE MATTER OF COMMISSION INVOLVEMENT IN WILLISTON BASIN INTERSTATE PIPELINE'S CURRENT RATE CASE RP00-107 BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION. (Staff Analyst: Dave Jacobson.)
Mr. Jacobson explained the Commission's participation in WBI's current rate proceedings.
Chairman Burg moved to go forward with the Commission's participation in the analysis of WBI's current rate proceeding by providing funding for consultants. Commissioner Nelson seconded. Motion passed 2-0.
Addendum
Telecommunications
Mr. Jacobson recommended that the certification of authority be granted with a waiver of ARSD 20:10:24:02(8).
Chairman Burg moved to grant a certificate of authority to Access One, Inc. with the waiver as noted above. Commissioner Nelson seconded. Motion passed 2-0.
Meeting adjourned.
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Mary R. Giddings
Administrative Secretary
