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South Dakota Public Utilities Commission Meeting
Tuesday, December 6, 2005, at 9:30 A.M.
State Capitol Building, Room 468
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; Acting Executive Director Heather Forney; Commission Attorneys John Smith and Rolayne Ailts Wiest; Commission Advisor Greg Rislov; Staff Attorneys Karen Cremer and Sara Greff; Staff Analysts Dave Jacobson, Harlan Best, Bob Knadle, and Keith Senger; Deb Gregg, Consumer Affairs Supervisor; and Administrative Secretary Tina Douglas.
Also present were Margo D. Northrup, Riter, Rogers, Wattier & Brown representing South Dakota Rural Electric Association; Bob Miller, South Dakota Electric Utility Companies; David Gerdes, May, Adam, Gerdes & Thompson, representing Montana-Dakota Utilities Co. and Midcontinent Communications; Pam Bonrud, NorthWestern Energy; and Rich Coit, South Dakota Telecommunications Association.
Joining the meeting by telephone were Suzan Stewart, MidAmerican Energy; James Groft, Northern Valley Communications; Colleen Sevold, Qwest Corporation; Jim Adkins, Swiftel Communications; David LaFuria, Lukas, Nace, Gutierrez & Sachs, Chtd. representing Brookings Municipal Utilities d/b/a Swiftel Communications; and Jeff Decker and Clyde Gross, NorthWestern Energy.
Administration
Approval of the Minutes of the Commission Meeting Held on November 1, 2005, and Ad Hoc Commission Meeting Held on November 23, 2005. (Staff: Tina Douglas.)
Chairman Hanson moved to defer the Minutes of the Commission Meetings. Commissioner Johnson seconded and Commissioner Sahr 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 1674 consumer contacts during 2005. Since the last report was prepared for the November 1, 2005, Commission meeting, 203 of these contacts had been received 45 contacts involved telecommunications services; 59 contacts involved electricity issues; 25 contacts involved natural gas issues; 1 contact involved gas and electric services; 27 contacts involved cellular phone issues, 20 contacts involved do not call issues; and 26 contacts involved issues not regulated by the Public Utilities Commission. In 2004, 2126 of the 2371 complaints registered have been resolved informally and in 2005, 1352 of the 1674 complaints registered have been resolved informally.
Natural Gas
Pam Bonrud, NorthWestern Energy, stated that on October 28, 2005, NorthWestern filed for Commission approval revisions to its natural gas transportation tariffs, including changes to customer balancing, imbalance penalties, cash out provisions, standby service options, general terms and conditions and sample forms. NorthWestern states the proposed revisions will address changes at the federal level concerning industry standard rules and procedures and also address certain current operating conditions. The revisions will also update tariffs to reflect the name change from NorthWestern Public Service Company to NorthWestern Energy. Mr. Dave Jacobson stated that these tariff revisions closely follow MidAmerican's tariff that is already in place with the Commission. Mr. Jacobson recommended approval of the tariff revisions with an effective date of 1/1/06.
Commissioner Johnson moved to approve the tariff revisions with an effective date of January 1, 2006, in Docket NG05-014. Chairman Hanson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Suzan Stewart, MidAmerican Energy Company, stated that the revisions are to the notification period for customers' intent to become transporters under the Monthly Metered Transportation Gas Pilot Project tariff. Currently, the tariff requires the customer's Certified Natural Gas Provider take assignment of the applicable portion of MidAmerican's interstate pipeline capacity attributable to the customer if notice was not given "last year" of intent to become a transporter. The proposed revision specifies a "twelve-month notice" of intent to become a transporter. Mr. Bob Knadle recommended approval of the tariff revisions.
Commissioner Johnson moved to approve the tariff revisions in Docket NG05-015. Chairman Hanson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Telecommunications
Mr. Harlan Best stated that on May 4, 2005, Trans National Communications International, Inc. (TNCI) filed for an application for a certificate of authority to provide resold local exchange service in South Dakota. TNCI proposes to offer resold local exchange telecommunications services within the state of South Dakota through the underlying local exchange provider, Qwest Corporation….TNCI does not presently plan to offer services to residential consumers within the state of South Dakota. On July 13, 2005, TNCI filed a revised application. He also stated that TNCI is currently an IXC carrier with restrictions in the State of South Dakota. Mr. Best recommended approval of Trans National Communications International, Inc.'s Certificate of Authority for local exchange authority subject to rural safeguards.
Chairman Hanson moved to grant Trans National Communications International, Inc.'s Certificate of Authority for local exchange authority, subject to rural safeguards. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Mr. Keith Senger stated that On June 20, 2005, Advanced Tel, Inc. filed an application for a Certificate of Authority to provide interexchange telecommunications service throughout South Dakota. The applicant has requested a waiver of ARSD 20:10:24:02 (8). The applicant has agreed to the restrictions from offering any prepaid services and from collecting customer deposits or advanced payments. Mr. Senger recommended the Commission grant the waiver request and grant Advanced Tel, Inc. interexchange authority subject to the restrictions.
Chairman Hanson moved to grant waiver of ARSD 20:10:24:02 (8) and grant Advanced Tel, Inc. d/b/a ATI's Certificate of Authority with restrictions from offering prepaid calling cards or accepting customer deposits or advance payments. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
Mr. Bob Knadle stated that on July 8, 2005, CommPartners, LLC submitted an application for a Certificate of Authority to provide local exchange and interexchange services in South Dakota. CommPartners, LLC is in the process of building an Internet Protocol-based (IP) communications network for the provision of voice and data services. The network is designed to connect public and private IP networks with the Public Switched Telephone Network. The applicant intends to provide local service in the areas served by Qwest and interexchange services throughout South Dakota. Mr. Knadle recommended approval of CommPartners, LLC's Certificate of Authority with waivers of 20:10:24:02(8) and 20:10:32:03(11) with restrictions from offering any prepaid services and from collecting customer deposits or advanced payments, and subject to rural safeguards. The Commission directed staff to contact CommPartners, LLC to obtain information regarding its 911 calling capabilities under its IP service and compliance with CALEA.
Commissioner Sahr moved to defer this docket. Chairman Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0.
Mr. David Gerdes, Midcontinent Communications, stated that Midcontinent Communications (Midcontinent) has fulfilled all its requirements so the Commission can grant its application to amend its certificate of authority to provide local exchange service and long distance services in the Wolsey exchange of Santel Communications Cooperative, Inc. (Santel), a rural telecommunications carrier. Mr. Jeff Larson, Santel, stated that Santel does not object. Mr. Gerdes further stated that Midcontinent is asking for a waiver for confidential treatment of ARSD 20:10:32:03(11), and also of ARSD 20:10:32:15 pursuant to ARSD 20:10:32:18. Mr. Harlan Best recommended that the Commission grant the waivers and amend Midcontinent Communications' Certificate of Authority.
Chairman Hanson moved to amend Midcontinent Communications' Certificate of Authority to provide local exchange service in the rural exchange area of Wolsey, South Dakota. Further, Chairman Hanson moved to grant Midcontinent a waiver pursuant to ARSD 20:10:32:18 of any requirement under the Commission's rules that Midcontinent Communications be required to serve Santel's entire study area; and also moved that the geographic area within which Midcontinent Communications shall be authorized to provide local exchange service and shall have the obligations imposed thereon by the laws of South Dakota and the Commission's rules shall be the area included on Exhibit A to Midcontinent Communications' Application, which includes the town of Wolsey but excludes the area of Santel's Wolsey exchange outside of the town of Wolsey. Chairman Hanson further moved to include recommendations by staff regarding confidentiality treatment. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
5. In the Matter of the Approval of Amendments to Agreements in Dockets TC05-181, TC05-182, TC05-183, TC05-187 and TC05-188
Ms. Sara Greff 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.
Chairman Hanson moved to approve the Amendments to the Agreements in TC05-181, TC05-182, TC05-183, TC05-187 and TC05-188. Commissioner Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
Mr. Keith Senger stated that OrbitCom is a Competitive LEC who was certificated June of 2002. In October of 2002, OrbitCom was granted by the Commission waivers of ARSD 20:10:27:07 and ARSD 20:10:27:12 and a three year exemption from filing a Company-Specific Cost Based Intrastate Switched Access Rate and. In that filing OrbitCom adopted the ILEC Qwest rate.
On November 15, 2005, OrbitCom filed a petition in accordance with ARSD 20:10:27:11 requesting to continue the waiver previously received. It is asking to use Qwest ILEC rate and to continue waivers of ARSD 20:10:27:07 and ARSD 20:10:27:12. OrbitCom justifies its request in that ARSD 20:10:27:12 would require it to use the "Average Schedule Rate" which is computed as the average rate of all companies serving fewer than 100,000 access lines. The Qwest rate is approximately half that of the Average Schedule Rate. Furthermore OrbitCom states that in the interstate jurisdiction, the FCC generally prohibits switched access rates higher than those charged by the ILEC. In fact the FCC in the Seventh Report and Order and Further Notice of Proposed Rulemaking, FCC 01-146 (as codified in 47 CFR 61.26) requires the CLEC to use the ILEC rate or the FCC adopted "benchmark" rate. Absent a SD benchmark rate OrbitCom wishes to adopt the ILEC Qwest rate. In previous dockets such as this, Commission staff has recommended and the Commission has granted such an exemption for a three year period. However, Staff believes that limiting this exemption to a three year period for companies who are adopting the ILEC rate may be a meaningless restriction and create administrative burden for both the CLEC and the Commission. Therefore, Mr. Senger recommended the Commission grant OrbitCom's waiver of ARSD 20:10:27:07 and 20:10:27:12 and allow OrbitCom to adopt the Qwest intrastate switched access rate with no time restrictions. We are also recommending that the Commission allow OrbitCom to file adjustments to its intrastate switched access rate so long as those adjustments either mirror Qwest's rate or are lower.
Commissioner Sahr moved to approve an extension of its exemption from establishing company-specific cost-based switched access rates so long as OrbitCom's intrastate switched access rate is equal to or less than that of the ILEC Qwest intrastate switched access rate or until the Commission shall otherwise order. Commissioner Johnson seconded and Chairman Hanson concurred. Motion passed 3-0.
Electricity
Mr. David Gerdes, Montana-Dakota Utilities and Brad Moody, Superior Renewable Energy LLC both stated that they are very close to a settlement and would like the Commission to defer this docket until the next scheduled Commission meeting.
Chairman Hanson moved to defer this docket. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
ADDENDUM
Telecommunications
Mr. David LaFuria, Brookings Municipal Utilities d/b/a Swiftel Communications, (Brookings) stated on December 2, 2005, Brookings submitted a response to the Commission regarding the questions that the Commission had. Mr. Rich Coit, SDTA, stated that Elkton has 583 customers in South Dakota and 19 in Minnesota, Gary has 437 customers in South Dakota and 77 in Minnesota, Astoria has 112 customers in South Dakota and 1 in Minnesota, and West Hendricks has 112 customers in South Dakota and 44 in Minnesota. He questioned the granting of ETC status for service areas that will not be completely served by Brookings. Brookings does not have certification in Minnesota. Ms. Rolayne Wiest had additional questions regarding Brookings' requested service area and its first year build out plan, and recommended deferral.
Chairman Hanson moved to defer this docket. Commissioner Johnson seconded and Commissioner Sahr concurred. Motion passed 3-0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
