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South Dakota Public Utilities Commission Meeting
Tuesday, June 13, 2002; 1:30 P.M.
State Capitol Building, Room 412
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Chairman Burg called the meeting to order. Present were Commissioner Pam Nelson; Commissioner Bob Sahr; Executive Director Deb Elofson; Deputy Executive Director Sue Cichos; Commission Advisor Greg Rislov; Commission Counsels Rolayne Ailts Wiest and John J. Smith; Staff Attorneys Karen Cremer and Kelly Frazier; Staff Analysts Dave Jacobson, Harlan Best, Heather Forney, Keith Senger, Mary Healy and Michele Farris; Transportation/Warehouse Director Bob Knadle; Transportation Administrator/Warehouse Inspector Tom Graham; and Administrative Secretary Mary Giddings.
Also present were Jim Wilcox, Al Krug, Kent Larson, and Ron Elsner, Xcel Energy; Dave Gerdes, MCIWorldCom and Midcontinent Communications; Larry Toll and Todd Lundy, Qwest Corporation; Judy Bitner and Susan Travis, MCIWorldCom; Gene Lebrun, Touch America; Bob Miller, SD Electric Utility Companies; and Cheri McComsey Wittler, court reporter.
Joining the meeting by telephone were Cindy Grosvenor, Wendell Aanerud and Charlie Ogden, TELEC Consulting; Suzan Stewart, Karen Huisenga and Marv Sorensen, MidAmerican Energy Company; Linn Evans, Black Hills FiberCom; Kyle White and Mark Thies, Black Hills Power, Inc.; Gary Witt, AT&T; Colleen Sevold, Jeff Carmon and Tammy Wilka, Qwest Corporation; Mary Lohnes, Midcontinent Communications; Buster Griffing, QSI Consulting; and Charlene Lund, complainant.
Administration
1. Approval Of The Minutes Of The Commission Meeting Held On May 30, 2002. (Staff: Mary Giddings.)
Chairman Burg moved to approve the minutes of the May 30, 2002, Commission meeting. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Consumer Issues
1. Status Report On Consumer Utility Inquiries And Complaints Recently Received By The Commission. (Consumer Affairs: Mary Healy.)
Ms. Healy presented an update on the inquiries and complaints received since the last Commission meeting.
Karen Huisenga, representing MidAmerican Energy Company, explained the motion to dismiss. Mr. Frazier recommended that the motion to dismiss be denied. Chairman Burg recommended that action be deferred.
Commissioner Nelson moved to deny MidAmerican's motion to dismiss. Commissioner Sahr seconded and Chairman Burg concurred. Motion passed 3-0.
Dave Gerdes, representing MCIWorldCom, stated that a corporation must be represented by an attorney. Mr. Frazier and Mr. Smith agreed that is what the statute stipulates. Commissioner Sahr recommended that SDCASAA request that a lawyer volunteer to represent it. The Commissioner's stated that they had to abide by the statute. Ms. Lund argued that this was treating nonprofit organizations and individuals differently.
Chairman Burg moved to order SDCASAA to obtain counsel to represent self before the Commission at the contested case hearing. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Electric
Jim Wilcox and Al Krug, representing Northern States Power Company d/b/a Xcel Energy (Xcel) explained the request for the Commission to renew its Customer Buyback Program. This renewal would allow Xcel to purchase energy from its large customers that curtail their load. The buyback was used three times by John Morrell. The request this year lowers the minimum reduction from 1000 to 500 KW. Mr. Senger recommended that the buyback program run from June 13, 2002, to December 31, 2003, with continued use restrictions and subject to reporting requirements.
Commissioner Nelson moved to approve the Buyback Program, effective June 13, 2002, to December 31, 2003, with the minimum reduction lowered to 500 KW with continued use restrictions and subject to reporting requirements. Commissioner Sahr seconded and Chairman Burg concurred. Motion passed 3-0.
Kyle White, representing Black Hills Power, Inc., explained the mortgage bond request and answered Commission questions. Mr. Jacobson recommended that the Commission approve the issuance of the mortgage bonds.
Chairman Burg moved to approve the issuance of up to $75,000,000 of mortgage bonds. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Natural Gas
Marv Sorenson, representing MidAmerican Energy Company, explained the tariff revisions. Mr. Jacobson noted that customers had been interrupted six times in the last five years. Commissioner Nelson questioned if perhaps this was discriminatory pricing since MidAmerican is proposing to limit interruptible rates to existing customers and may in the future file to eliminate the interruptible purchased gas adjustment.
Chairman Burg moved to approve the tariff with a two-year limit. Motion died for lack of a second.
Commissioner Nelson moved to deny the tariff. Motion died for lack of a second.
Commissioner Sahr moved to approve the tariff with a two-year limit. Chairman Burg seconded. Commissioner Nelson dissented. Motion passed 2-1.
Telecommunications
Gary Witt, representing AT&T, explained the motion to reopen proceedings to allow admission of additional evidence relating to certain unfiled, secret agreements between Qwest and some new entrants. Ms. Wiest recommended that the motion to reopen proceedings be denied because the proceedings are open and noted that Qwest had just filed its response to Commission questions concerning unfiled interconnection agreements. Todd Lundy, representing Qwest, argued that Qwest has met the filing requirements. Linn Evans, representing Black Hills FiberCom, requested a 10-day extension of the briefing schedule in order to review Qwest's recent filing. Dave Gerdes. representing Midcontinent Communications, agreed with the request for a 10-day extension. Ms. Wiest recommended that the briefing deadline for the interveners and Staff be extended until July 1, 2002. Gene Lebrun, representing Touch America, explained the petition to intervene and motion to reopen issues. Ms. Wiest recommended that the petition to intervene be denied as untimely.
Commissioner Nelson moved to deny AT&T's motion to reopen proceedings. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Commissioner Sahr moved to extend the briefing schedule to July 1, 2002. Chairman Burg seconded and Commissioner Nelson concurred. Motion passed 3-0.
Chairman Burg moved to deny Touch America's petition to intervene. Commissioner Sahr seconded and Commissioner Nelson concurred. Motion passed 3-0.
Mr. Frazier recommended that the amendment to the interconnection agreement between Midwest Wireless Communications, L.L.C. and Switch 2000 L.L.C. and Qwest Corporation be approved.
Commissioner Nelson moved to approve the April 12, 2002, amendment to the interconnection agreement between Midwest Wireless Communications, L.L.C. and Switch 2000 L.L.C. and Qwest Corporation. Commissioner Sahr seconded and Chairman Burg concurred. Motion passed 3-0.
Ms. Forney recommended that Telenational Communications, Inc.'s application for a certificate of authority be approved with an effective date of June 15, 2002.
Chairman Burg moved to grant a certificate of authority to Telenational Communications, Inc. with an effective date of June 15, 2002. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Mr. Best stated that SDTA had withdrawn its petition to intervene and he then recommended that the proposed filing be approved.
Chairman Burg moved to approve the May 14, 2002, filing. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Mr. Best recommended that the proposed filing be approved and noted that SDTA had withdrawn its petition to intervene.
Chairman Burg moved to approve the May 14, 2002, filing. Commissioner Nelson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Administration
1. IN THE MATTER OF THE CONTRACT WITH QSI CONSULTING. (Executive Director: Debra Elofson.)
Dr. Griffing explained the contract amendment. Ms. Elofson recommended that the contract amendment be approved.
Commissioner Nelson moved to approve the $6,000.00 contract amendment. Chairman Burg seconded and Commissioner Sahr concurred. Motion passed 3-0.
Meeting adjourned.
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Mary R. Giddings
Administrative Secretary
