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South Dakota Public Utilities Commission Meeting

Tuesday, November 1, 2005, at 1:30 P.M.

State Capitol Building, Room 412

Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING

Chairman Gary Hanson called the meeting to order. Also present were Vice Chairman Bob Sahr; Commissioner Dustin Johnson; Executive Director Pamela Bonrud; Deputy Executive Director Heather Forney; Commission Attorneys John Smith and Rolayne Ailts Wiest; Commission Advisor Greg Rislov; Staff Attorney Karen Cremer; Staff Analysts Dave Jacobson, Harlan Best, Bob Knadle, Phil Lusk, and Keith Senger; Deb Gregg, Consumer Affairs Supervisor; Administrative Secretary Tina Douglas; and Court Reporter Cheri Wittler.

Also present were Darla Rogers, Riter, Rogers, Wattier & Brown representing LECA and various LECs; Bob Miller, South Dakota Electric Utility Companies; Jim Wilson, MidAmerican Energy; Rod Bowar Kennebec Telephone Company; David Gerdes, May, Adam, Gerdes & Thompson, representing Montana-Dakota Utilities Co. and Midcontinent Communications; Ed Anderson, South Dakota Rural Electric Association; and Rich Coit, South Dakota Telecommunications Association.

Joining the meeting by telephone were Jeff Larson, Larson & Nipe, representing Santel Communications; Doug Eidahl and Larry Thompson, Vantage Point; Talbot Wieczorek, Gunderson, Palmer, Goodsell & Nelson, representing WWC License LLC; Meredith Moore Cutler & Donahoe; John Miller, Sioux Valley Energy ; Jeff Decker and Clyde Gross, NorthWestern Energy; Mary Sisak, Blooston, Mordkofsky, Dickens, Duffy & Prendergast representing Superior Renewable Energy LLC; Melissa Thompson, Qwest Corporation; Jim Adkins, Brookings Municipal Utilities; Lynn Ratanvale and David LaFluer, Lucas, Nace, Gutierrez & Sachs, representing Brookings Municipal Utilities; Mary Lohnes, Midcontinent Communications; Don Ball, Montana-Dakota Utilities Co.; Mark Meierhenry, Danforth, Meierhenry & Meierhenry, representing Superior Renewable Energy LLC; and Linda Walsh, Hunton & Williams LLP, representing Superior Renewable Energy LLC.

Administration

1. Approval of the Minutes of the Commission Meetings Held on September 27, 2005, and October 4, 2005. (Staff: Tina Douglas.)

Commissioner Sahr moved to approve the Minutes of the Commission Meetings held on September 27, 2005, and October 4, 2005. Commissioner Johnson seconded and Chairman Hanson concurred. Motion passed 3-0.

Consumer Reports

1. Status Report on Consumer Utility Inquiries and Complaints Received by the Commission. (Consumer Affairs: Deb Gregg)

Ms. Deb Gregg reported that the Commission had received a total of 1471 consumer contacts during 2005. Since the last report was prepared for the October 4, 2005, Commission meeting 165, of these contacts had been received; 39 contacts involved telecommunications services; 26 contacts involved electricity issues; 29 contacts involved natural gas issues; 32 contacts involved cellular phone issues, and 17 contacts involved do not call issues. In 2004, 2126 of the 2371 complaints registered have been resolved informally and in 2005, 1196 of the 1471 complaints registered have been resolved informally.

Complaints

1. CT05-003 In the Matter of the Complaint filed by Eldon Lindquist on behalf of Pierre Radio Paging & Telephone, Pierre, South Dakota, against Qwest Corporation Regarding a Billing Dispute. (Staff Analysts: Keith Senger/Jim Mehlhaff, Staff Attorney: Sara Greff)

Ms. Deb Gregg stated that Mr. Jim Mehlhaff had spoken to Mr. Eldon Lindquist and Mr. Lindquist is satisfied with the settlement. Both Parties jointly filed with the Commission a Joint Motion to Dismiss and Close the Docket.

Commissioner Sahr moved to dismiss the complaint and close Docket CT05-003. Commissioner Johnson seconded and Chairman Hanson concurred. Motion passed 3-0.

Electric

1. EL05-024 In The Matter of the Joint Request for an Electric Service Rights Exception Between Sioux Valley-Southwestern Electric Cooperative, Inc. d/b/a Sioux Valley Energy and the City of Madison. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

Mr. Bob Knadle stated that on September 29, 2005, Sioux Valley-Southwestern Electric Cooperative, Inc. d/b/a Sioux Valley Energy (SVE) and the City of Madison filed with the Commission for approval of a "Joint Request for Electric Service Territory Exception." The agreement between the City of Madison and SVE would permit the City of Madison to provide service to a new home for Paul and Lora Ersland in the SE1/4 of Section 31, Township 107 North, Range 52 West in SVE's service area. Paul and Lora Ersland had no objections to the approval of the agreement. Mr. Knadle recommended approval of the service rights exception.

Chairman Hanson moved to approve the service rights exception between Sioux Valley-Southwestern Electric Cooperative, Inc. d/b/a Sioux Valley Energy and the City of Madison in Docket EL05-024. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.

2. EL05-025 In The Matter of the Joint Request for an Electric Service Rights Exception Between Otter Tail Power Company and Whetstone Valley Electric Cooperative. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

Mr. Bob Knadle stated that on October 6, 2005, Whetstone Valley Electric Cooperative (Whetstone) and Otter Tail Power Company (OTP) filed with the Commission for approval of a request for a service rights exception. The agreement between Whetstone and OTP would permit Whetstone to provide service to two rail switches for Western Consolidated Cooperative in its grain handling operation in the SE1/4 of Section 7, Township 120 North, Range 49, West in OTP's service area. Western Consolidated Cooperative had no objections to the approval of the agreement. Mr. Knadle recommended approval of the service rights exception.

Chairman Hanson moved to approve the service rights exception between Otter Tail Power Company and Whetstone Valley Electric Cooperative in Docket EL05-025. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.

Natural Gas

1. NG05-011 In the Matter of the Filing by NorthWestern Corporation d/b/a NorthWestern Energy for Approval of a Refund Plan. (Staff Analyst: Dave Jacobson, Staff Attorney: Sara Greff)

Jeff Decker, NorthWestern Corporation, stated that NorthWestern is requesting that the Commission approve a refund plan for a $958,629.26 refund received from Northern Natural Gas Company. NorthWestern proposes to credit the Company's Adjustment Clause demand true-up in the sum of $879,025.41 and the Company's Adjustment Clause commodity true-up in the sum of $79,603.85. Mr. Dave Jacobson stated that by using these Adjustment Clause true-up mechanisms, the refund dollars will be returned to customers, with interest payable by the Company, over the next 12-month period through the normal purchased gas adjustment monthly filings process. Mr. Jacobson recommended approval of the Refund Plan effective November 1, 2005, with the condition that NorthWestern Energy pay interest on the refund amount received by NorthWestern Energy from the date received from Northern Natural Gas as described in the informational Supplement filed in the Docket.

Chairman Hanson moved to approve the Refund Plan with the effective date of November 1, 2005, and that NorthWestern Corporation pay interest on the refund amount received by NorthWestern Energy from the date received from Northern Natural Gas as described in the informational Supplement filed in the Docket. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.

Telecommunications

1. TC04-213 In the Matter of the Filing by Brookings Municipal Utilities d/b/a Swiftel Communications for Designation as an Eligible Telecommunications Carrier. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

Mr. David LaFluer stated that Brookings Municipal Utilities d/b/a Swiftel Communications' (Swiftel) Petition for Designation as an Eligible Telecommunications Carrier (ETC) is the same type of ETC status that was approved for WWC Wireless, LLC, recently by this Commission. Mr. Rich Coit, SDTA, stated that the decision in this matter should be made at a later date after the proposed service area definition is decided by the FCC which will be by November 14, 2005. Swiftel requests that it be designated as an ETC in portions of its FCC authorized service area. For the local exchange carrier wire centers that are only partially covered by Swiftel's authorized service area, Swiftel also requests that the Commission designate it as an ETC for the portion of the wire centers where Swiftel is authorized to provide service. For wire centers located in another state which overlap into South Dakota, Swiftel requests that the Commission designate Swiftel in the portion of those wire centers that are within South Dakota. Ms. Rolayne Wiest stated that the Commission needs more questions answered regarding the proposed service areas and agreed with Mr. Coit that the Commission should wait until the November 14, 2005, FCC decision deadline passes. Ms. Wiest will send a letter to Swiftel regarding the issues that the Commission still need answers to.

Chairman Hanson moved to defer this docket until December 6, 2005, Commission Meeting. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.

2. TC05-112 In the Matter of the Application of Navigator Telecommunications, LLC for a Certificate of Authority to Provide Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

Mr. Bob Knadle stated that on July 29, 2005, Navigator Telecommunications, LLC filed an application seeking a Certificate of Authority to provide interexchange services throughout South Dakota on a resale basis. The Applicant intends to offer MTS, travel services and Toll-Free services to residential and business customers. Mr. Knadle recommended approving Navigator Telecommunications, LLC's Certificate of Authority with restrictions on deposits, advance payments, and pre-paid calling cards.

Commissioner Johnson moved to grant Navigator Telecommunications LLC's Certificate of Authority with restrictions from offering prepaid calling cards or accepting customer deposits or advance payments. Commissioner Sahr seconded and Chairman Hanson concurred. Motion passed 3-0.

3. TC05-161 In the Matter of the Application of Midcontinent Communications for Approval to Expand its Certificate of Authority to Provide Local Exchange Service in the Wolsey Exchange of the Service Territory of Santel Communications Cooperative. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

Jeff Larson, Santel Communications Cooperative, Inc., stated the Petition for Intervention was filed late because Santel thought it had already filed for intervention in this docket. Mr. Dave Gerdes, Midcontinent Communications stated that it had no objection to the intervention.

Commissioner Sahr moved to grant intervention to Santel Communications Cooperative in Docket TC05-061. Chairman Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0.

4. In the Matter of the Approval of Agreements in Dockets TC05-170, TC05-171, TC05-172, TC05-176 and TC05-179

TC05-170 In the Matter of the Filing for Approval of an InterMTA Factor Agreement between Alliance Communications Cooperative, Inc. and Wireless Alliance, LLC. (Staff Attorney: Sara Greff)

TC05-171 In the Matter of the Filing for Approval of an InterMTA Factor Agreement between Alliance Communications Cooperative, Inc. and Rural Cellular Corporation. (Staff Attorney: Sara Greff)

TC05-172 In the Matter of the Filing for Approval of an Interim Period Agreement Between Qwest Corporation and XO Communications Services, Inc. (Staff Attorney: Sara Greff)

TC05-176 In the Matter of the Filing for Approval of a Master Services Agreement between Qwest Corporation and Budget Phone, Inc. (Staff Attorney: Sara Greff)

TC05-179 In the Matter of the Filing for Approval of an Adoption Agreement between Rural Cellular Corporation and Santel Communications Cooperative, Inc. (Staff Attorney: Sara Greff)

Ms. Karen Cremer stated that the Agreements have been properly filed, have been properly executed and do not appear to contain discriminatory provisions, no comments were filed, and recommended approval of the Agreements.

Commissioner Sahr moved to approve the Agreements in TC05-170, TC05-171, TC05-172, TC05-176 and TC05-179. Commissioner Johnson seconded and Chairman Hanson concurred. Motion passed 3-0.

5. In the Matter of the Filing for Approval of Amendments to Agreements in Dockets TC05-174 and TC05-178

TC05-174 In the Matter of the Filing for Approval of an Amendment to the Interim Period Agreement Between Qwest Corporation and XO Communications Services, Inc. (Staff Attorney: Sara Greff)

TC05-178 In the Matter of the Filing for Approval of an Amendment to an Interconnection Agreement between Qwest Corporation and DIECA Communications, Inc. d/b/a Covad Communications Company. (Staff Attorney: Sara Greff)

Ms. Karen Cremer stated that the Amendments to the Agreements have been properly filed, have been properly executed and do not appear to contain discriminatory provisions, no comments were filed, and recommended approval of the Amendments to the Agreements.

Commissioner Sahr moved to approve the Amendments to the Agreements in TC05-174 and TC05-178. Commissioner Johnson seconded and Chairman Hanson concurred. Motion passed 3-0.

6. TC05-173 In the Matter of the Petition of Fiber Ring Revenue-Pooling Association for Approval of Amended Revenue-Pooling Arrangement Documents (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)

Darla Rogers, Representing LECA, stated that on September 12, 2005, the Fiber Ring Revenue-Pooling Association (FRRPA) filed a Petition to amend and update the original FRRPA filing (TC00-084) and to seek Commission approval of the amended SONET Ring Provider Agreements, Ring User Local Exchange Company Agreements, and amended FRRPA Administrative Rules and Bylaws. The original Agreements between the Local Exchange Companies (LEC) will expire at the end of 2005. FRRPA LEC participants and South Dakota Network, LLC have negotiated and executed new contracts that become effective January 1, 2006. Larry Thompson, Vantage Point Solutions stated that there have been increases and these increases were passed along in the new contracts that have been signed and will go into effect January 1, 2006.

Chairman Hanson moved to approve the Amended Revenue-Pooling Arrangement Documents. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.

7. In the Matter of the Filing for Approval of Terms and Conditions for Interconnection, Unbundled Network Elements, Ancillary Services and Resale of Telecommunications Services in Dockets TC05-175 and TC05-177

TC05-175 In the Matter of the Filing for Approval of Terms and Conditions for Interconnection, Unbundled Network Elements, Ancillary Services and Resale of Telecommunications Services between Qwest Corporation and Budget Phone, Inc. (Staff Attorney: Sara Greff)

TC05-177 In the Matter of the Filing for Approval of an Agreement for Terms and Conditions for Interconnection, Unbundled Network Elements, Ancillary Services and Resale of Telecommunications Services between Qwest Corporation and DIECA Communications, Inc. d/b/a Covad Communications Company. (Staff Attorney: Sara Greff)

Ms. Karen Cremer stated that the Agreements have been properly filed, have been properly executed and do not appear to contain discriminatory provisions, no comments were filed, and recommended approval of the Agreements.

Commissioner Sahr moved to approve the Agreements in TC05-175 and TC05-177. Commissioner Johnson seconded and Chairman Hanson concurred. Motion passed 3-0.

8. In the Matter of the Failure of Certain Telecommunications Companies to Timely File the Gross Receipts Tax (Deputy Executive Director: Heather K. Forney)

Ms. Forney stated that the following companies have failed to timely file their gross receipts tax as required by SDCL 49-1A:

Wireless Companies that have not filed:

Booker Communications

Mobile Communications Corp of America

New-Cell, Inc

Local Exchange Providers that have not filed:

Vitcom Corporation

Operator Service Providers that have filed, but not paid:

T-NETIX Telecommunications Services, Inc.

Long Distance Providers that have not filed or paid:

ECI Communications, Inc.

ezTel Network Services, LLC

Global Communications Consulting Corp.

Miko Telephone Communications, Inc.

North American Telephone Network LLC

Optical Telephone Corporation

PromiseVision Technology, Inc.

Radiant Telecom, Inc.

Transcommunications, Inc.

Univance Telecommunications, Inc.

Long Distance Providers that have filed, but not paid:

Alliance Group Services, Inc. d/b/a U.S. Republic Communications, Inc.

Better World Telecom, Inc.

D.D.D. Calling, Inc.

Dial Thru, Inc. f/k/a RDST, Inc.

Inmark, Inc. d/b/a Preferred Billing

R2C Communications, Inc.

TeleCents Communications, Inc.

Telefyne Incorporated

Total Call International, Inc.

Touch 1 Communications, Inc.

United American Technology, Inc.

W2COM International, LLC

Ms. Forney also stated that Univance Telecommunications, Inc. is in bankruptcy so staff is not seeking an Order to Show Cause. Ms. Forney recommended the Commission issue an Order to Show Cause as to why the Commission should not fine, or suspend or revoke the Certificates of Authority of each of these companies for failure to pay the requisite Gross Receipts Tax.

Chairman Hanson moved to Issue an Order to Show Cause on each of the companies listed above except Univance Telecommunications, Inc. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.

Electricity

1. EL04-016 In the Matter of the Filing by Superior Renewable Energy LLC et al. against Montana-Dakota Utilities Co. Regarding the Java Wind Project. (Staff Analysts: Bob Knadle and Keith Senger, Staff Attorneys: Karen Cremer and Sara Greff)

See Transcript which is on file at the Public Utilities Commission Office.

Chairman Hanson moved that the Commission grant Superior's Motion to Reconsider on the grounds that FERC has dismissed the QF purchase obligation suspension petition of Alliant Energy Corporate Services and the Commission has jurisdiction to hear and decide Superior's Complaint. He further moved that this matter be scheduled and noticed for hearing on December 13 through the 16, 2005, and the parties confer immediately following this hearing to resolve any prehearing scheduling issues. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.

Chairman Hanson stated on the second question he would move that the Commission deny without prejudice Superior's request for a ruling on the issue of whether there is an existing obligation pending before the Commission and that we rule on this issue in our final decision after hearing the evidence. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.

Chairman Hanson stated that on the third question he would move that the Commission deny Superior's request that the Commission issue an Order to Show Cause against Montana-Dakota Utilities Co. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.

ADDENDUM

Natural Gas

1. NG05-013 In the Matter of the Filing by Montana-Dakota Utilities Co., a Division of MDU Resources Group, Inc. for Approval of an Amendment to a Contract with Deviation with Merillat Corporation. (Staff Analyst: Dave Jacobson, Staff Attorney: Karen Cremer)

Mr. Dave Jacobson stated that the existing contract with Merillat Corporation expired on October 31, 2005. The proposed amendment provides for service to continue to Merillat for a one year period ending October 31, 2006, under the terms of the original contract. MDU has requested approval with less than 30 days notice. Mr. Jacobson recommended approving the contract with less than 30 days notice.

Commissioner Sahr moved to approve the amendment to the contract with deviations with less than 30 days notice. Commissioner Johnson seconded and Chairman Hanson concurred. Motion passed 3-0.

ADDENDUM

Telecommunications

1. TC05-137 In the Matter of the Joint Petition for Extension of Suspension Date and the Date to File Further Suspension Request. (Staff Analyst: Harlan Best, Staff Attorney: Rolayne Ailts Wiest)

Transcript of  November 1, 2005, 1:30 p.m. Commission Meeting (TC05-137)

Chairman Hanson moved that the Commission go into executive session. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.

Chairman Hanson moved that the Commission return from executive session. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.

Chairman Hanson moved that the Commission grant Petitioner's Motion to Limit the Scope of Issues to the issues raised by the Joint Petition. Namely, whether the existing suspensions should be extended based upon the pendency of the FCC's proceeding in CC Docket No 95-116, and if so, what the length of the new suspensions should be. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.

Meeting adjourned.

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Tina Douglas

Administrative Secretary