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South Dakota Public Utilities Commission Meeting
Wednesday, September 22, 2004 at 11:30 A.M.
Cactus Conference Room, PUC Offices
State Capitol Building, Pierre, South Dakota
MINUTES OF THE AD HOC COMMISSION MEETING
Chairman Bob Sahr called the meeting to order. Also present were Commissioner Jim Burg; Executive Director Pamela Bonrud; Commission Attorneys John Smith; Staff Attorneys Rolayne Ailts Wiest and Sara Harens; Staff Analysts Harlan Best and Keith Senger; and Court Reporter Cheri Wittler.
Also present were Darla Rogers, Riter, Rogers, Mayer, Hofer, Wattier & Brown representing Kennebec Telephone Company, Sioux Valley Telephone Company, Armour Independent Telephone Company, Bridgewater-Canistota Independent Telephone Company, Union Telephone Company, Beresford Municipal Telephone Company, McCook Cooperative Telephone, Golden West Telecommunications Coop, Valley Telecommunications Cooperative Association, Inc., Faith Municipal Telephone Company, Midstate Communications, Inc., Western Telephone Company, Interstate Telecommunications Cooperative, Inc., Alliance Communications Cooperative, Inc., RC Communications, Inc., Roberts County Telephone Cooperative Association, Venture Communications Cooperative, Vivian Telephone Company, Kadoka Telephone Company, Splitrock Properties, Inc., West River Cooperative Telephone Company, Stockholm-Strandburg Telephone Company, Tri-County Telcom Inc., and Santel Communications Cooperative, Inc.; and Rich Coit, South Dakota Telecommunications Association.
Joining the meeting by telephone were Vice Chairman Gary Hanson; Mary Lohnes, Midcontinent Communications; Denny Law, Sioux Valley Telephone; Pat Mastel, PrairieWave; Ben Dickens and Mary Sisak, Blooston, Mordkoffky, Jackson, Dickens representing all parties that are represented by Darla Rogers as noted above and Brookings Municipal Utilities; Jerry Heiberger and Ren Preheim, Interstate Telecommunications Cooperative; Joe Schuele, Martin Group; Talbot Wieczorek, Gunderson, Paul, Goodsell & Nelson representing Western Wireless; Doug Eidahl, Vantage Point Solutions; Randy Houdek, Venture Communications Cooperative; Rod Bowar, Kennebec Telephone Company; Steve Oleson, Valley Telephone Communications Cooperative; Jerry Reisenauer, West River Cooperative Telephone Company; Pam Harrington, RC Communications, Inc. and Roberts County Telephone Cooperative Association; and Jim Adkins, City of Brookings Utilities.
Telecommunications
1. In the Matter of Petitions for Suspension or Modification of 47 U.S.C. Section 251(b)(2) of the Communications Act of 1934 as Amended in Dockets TC04-025, TC04-038, TC04-044, TC04-045, TC04-046, TC04-047, TC04-048, TC04-049, TC04-050, TC04-051, TC04-052, TC04-053, TC04-054, TC04-055, TC04-056, TC04-060, TC04-061, TC04-062 and TC04-084
Chairman Sahr moved that in each of the Local Number Portability (LNP) dockets, the Commission grant a suspension, pursuant to SDCL 49-31-80 and 47 U.S.C. '251(f)(2), of the requirements imposed by 47 U.S.C. '251(b)(2), SDCL 49-31-81 and the FCC's implementing rules and orders, on each of the Petitioner rural local exchange carriers to provide intramodal local number portability to requesting wireline carriers until the later of December 31, 2005 or until 6 months after a bona fide request for LNP has been received by the local exchange carrier. Specifically, this motion applies to suspend intramodal LNP obligations for the Petitioners in Docket Numbers TC04-025, TC04-038, TC04-044-056, TC04-060-062 and TC04-084.
With respect to the Dockets in which Midcontinent Communications (Midco) intervened and has not withdrawn, Chairman Sahr further moved:
! In Docket No. TC04-054, Interstate Telecommunications Cooperative, Inc. (ITC) shall continue to provide LNP on an interim basis to Midco in the Webster exchange throughout the suspension period, employing one or more Transitional Number Portability Measures as defined in the Settlement Agreement filed in Docket No. TC03-192 or such other method to which the parties shall agree. ITC shall provide such interim LNP to Midco in the Waubay exchange when Midco has established a direct trunk connection with ITC in the Waubay exchange and an interconnection agreement has become effective between the parties either through mutual agreement or arbitration. ITC and Midco shall also proceed with negotiations in good faith in accordance with their existing interconnection agreement regarding whether an economically reasonable solution that conforms to 47 CFR 52.23(a) can be found for implementing local number portability on a permanent basis in the Webster and Waubay exchanges following December 31, 2005 .
! With respect to Dockets TC04-038, TC04-044, TC04-050, TC04-051, TC04-055 and TC04-060, the remaining dockets in which Midco remains an intervening party, Midco is not presently certified to provide local exchange services within the territory of the Petitioner rural LECs. At such time as Midco applies for a certificate of authority to provide local exchange service in such areas, Midco may also petition the Commission for a lifting of the suspension with respect to interim intramodal number portability and the Commission will consider such request in connection with its action on the application for certificate of authority.
Lastly, Chairman Sahr offered some thoughts on the motion and the action the Commission took earlier with respect to intermodal LNP.
! First, Chairman Sahr wanted to emphasize that a key factor for him in deciding to grant suspensions through December 31, 2005 is the importance placed by both federal and state law and by this Commission on maintaining universal service. This means maintaining critically important, essential service in the high cost, low population density areas served by the rural local exchange carriers in South Dakota. Maintaining this universal service to our rural residents simply takes precedence over competition or any non-essential services such as LNP. Chairman Sahr thought this was reflected in Chairman Powell's letter to NARUC emphasizing that state commissions exercise their authority carefully to protect the small rural LECs.
! A second important factor for Chairman Sahr was the evidence demonstrating the significant uncertainties that still attend LNP implementation. These include the unresolved regulatory issues of responsibility for transport, routing and rating issues and porting interval. Other uncertainties include whether significant demand for LNP will really be demonstrated in rural areas, whether LNP is really a pivotal factor affecting the customer's purchasing decision for an alterative service and the cost issues. It is the Commission hope that a substantial measure of additional clarity will be forthcoming within the next year on these issues.
! Lastly, Chairman Sahr wanted to emphasize that he at least was not basing his decision at this point on a firm conviction that LNP should never be implemented in rural areas of South Dakota. After the Commission has seen what happens at the FCC over the next year and after the Commission had an opportunity to review the experience with LNP in areas where it has been implemented, the Commission will be in a better position to assess whether the benefits of LNP to rural residents are likely to justify the costs to rural telcos and their members and customers. Chairman Sahr stated that is a central reason underlying his support for a suspension of finite duration, at which time the Commission can revisit the issue with hopefully more definitive information available then for the Commission to base a decision on whether the suspensions should be continued for some or all of the Petitioners.
! Chairman Sahr stated that he wanted to reiterate what he said when the Commission voted on intermodal LNP - that it is important for the parties to continue to explore whether reasonable and economically justifiable solutions can be found for LNP implementation at least in some of the more viable rural service areas. Chairman Sahr also stated that further thought should be given to a study panel to address the problem in a structured manner. Chairman Sahr recommended that the Commission consider directing the staff to participate in such a process and he invited the parties to these proceedings to initiate discussions to that end with the Executive Director.
Commissioner Burg seconded and Commissioner Hanson concurred. Motion passed 3-0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
