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South Dakota Public Utilities Commission Meeting
Tuesday, February 28, 2006, at 1:30 P.M.
State Capitol Building, Room 468
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Chairman Bob Sahr called the meeting to order. Also present were Vice Chairman Dustin Johnson; Commissioner Gary Hanson; Executive Director Patty Van Gerpen; Commission Attorneys Rolayne Ailts Wiest and John Smith; Commission Advisor Greg Rislov; Staff Attorneys Karen Cremer and Sara Greff; Staff Analysts Dave Jacobson, Martin Bettmann, Harlan Best, Bob Knadle, Phil Lusk, Leah Mohr, Nathan Solem and Keith Senger; Deb Gregg, Consumer Affairs Supervisor; and Administrative Secretary Tina Douglas.
Also present were Darla Rogers, Riter, Rogers, Wattier & Brown representing Midstate Telecom, Inc.; and Rich Coit, South Dakota Telecommunications Association.
Joining the meeting by telephone were Tom Gefell, Dave Bloomquist, and Melanie Acord, MidAmerican Energy Company; Beth Goodpaster, Minnesota Center Environmental Advocacy; Bob Hill, Brookings County Commission; Erin Jordahl-Redlin, Clean Water Action; Doug Eidahl, Vantage Point; Mark Stacy, QSI Consulting; Dr. Mike Madden; Christopher Madsen, Boyce, Greenfield, Pashby & Welk, representing Otter Tail Power Company; Jim Wilcox, Xcel Energy; and Jerry Heiberger, Interstate Telecommunications Cooperative Inc.
Administration
1. Approval of the Minutes of the Commission Meetings Held on January 17 and January 31, 2006, and the Ad Hoc Meeting Held on January 27, 2006. (Staff: Tina Douglas.)
Commissioner Hanson moved to approve the minutes of Commission Meetings Held on January 17 and January 31, 2006, and the Ad Hoc Meeting Held on January 27, 2006. Commissioner Johnson seconded and Chairman 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 346 consumer contacts during 2006. Since the last report was prepared for the January 31, 2006, Commission meeting, 249 of these contacts had been received; 54 contacts involved telecommunications services; 40 contacts involved electricity issues; 47 contacts involved natural gas issues; 1 contact involved gas and electric services; 35 contacts involved cellular phone issues; 31 contacts involved do not call issues; and 41 contacts involved issues not regulated by the Public Utilities Commission. In 2006, 244 of the 346 complaints registered have been resolved informally. In 2005, 1,654 of the 1,885 complaints registered have been resolved informally.
Electricity
Ms. Karen Cremer suggested that we defer the first question regarding the consultant contact until the end of the meeting so Dr. Madden can join the meeting via telephone. Ms. Cremer also stated that on February 16, 2006, Clean Water Action filed a letter requesting withdrawal of its intervention in Docket EL05-022 because it does not have legal representation. Ms. Cremer further stated that if the Commission grants Clean Water Action its withdrawal request that Clean Water Action will stay on the interested parties' mailing list. Ms. Cremer recommended granting Clean Water Action's withdrawal request of its intervention in EL05-022.
Chairman Sahr moved to accept Clean Water Action's request for withdrawal of intervention in Docket EL05-022. Commissioner Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0.
Bob Hill, Brookings County Commission stated that on February 2, 2006, the Brookings County Commission late filed an Application for Party Status. This was just an oversight on its part and it is respectfully asking the Commission to grant the intervention. Ms. Karen Cremer recommended granting Brookings County Commission intervention as no party would be prejudiced by granting the request.
Commissioner Johnson moved to grant Brookings County Commission intervention in EL05-028. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Dave Bloomquist, MidAmerican Energy Company stated that MidAmerican Energy Company filed revisions to its South Dakota Electric Tariff No. 1. These revisions add price codes for two new 1000-watt High Pressure Sodium street lights. Mr. Keith Senger stated that MidAmerican Energy Company has added several new price codes in the last few years and these codes are justified. Mr. Senger recommended approving the tariff revisions.
Chairman Sahr moved to approve the tariff revisions in EL06-001. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Natural Gas
Melanie Acord, MidAmerican Energy Company stated that MidAmerican Energy is asking for approval of tariff revisions which propose to base interruptible sales service gas costs on the daily market price of gas as opposed to monthly average system prices now currently used. MidAmerican will be able to align costs and bill each customer for their specific daily usage. MidAmerican is also proposing to transition out existing over/under recovery balances during the upcoming months of March through August. MidAmerican Energy Company has talked to 28 of the 29 customers regarding these changes. Mr. Dave Jacobson recommended approval of the tariff revisions with the condition that MidAmerican provide a report to the Commission every six months comparing PGA recoveries and volumes of consumption for interruptible customers under daily pricing to the methodology previously used.
Chairman Sahr moved to approve the tariff revisions in NG06-001 with the condition that MidAmerican provide a report to the Commission every six months comparing PGA recoveries and volumes of consumption for interruptible customers under daily pricing to the methodology previously used. Commissioner Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0.
Telecommunications
Darla Rogers representing Midstate Telecom, Inc (Midstate) stated that it is very close to a settlement agreement with staff and asked that this docket be deferred.
Chairman Sahr moved to defer docket TC05-060. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Bob Knadle stated that on October 7, 2005, Asia Talk Telecom, Inc. d/b/a HelloCom Inc. (HelloCom, Inc.) filed an application seeking a Certificate of Authority to provide interexchange services throughout South Dakota on a resale basis. The company has requested a waiver from ARSD 20:10:24:02(8) as it relates to filing a current cash flow statement and has agreed not to offer any prepaid services (including prepaid calling cards) and not to accept or require any deposits or advanced payments without prior approval of the Commission. Mr. Knadle recommended the Commission approve HelloCom, Inc.'s Certificate of Authority, with restrictions, and grant the waiver.
Commissioner Hanson moved to grant the waiver of ARSD 20:10:24:02(8) and grant HelloCom Inc.'s Certificate of Authority with restrictions from offering prepaid calling cards or accepting customer deposits or advance payments without prior approval of the Commission. Chairman Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
3. In the Matter of the Approval of the Amendments to Agreements in TC06-002, TC06-003, TC06-005, and TC06-006.
Ms. Sara Greff stated that all the companies have active Certificates of Authority. 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 Sahr moved to approve the Amendments to the Agreements in TC06-002, TC06-003, TC06-005, and TC06-006. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Martin Bettmann stated that as a result of an annexation to the City of Brookings, the Commission received a filing from the City of Brookings Telephone d/b/a Swiftel Communications (Swiftel) for approval to include property annexed in its exclusive franchise territory. The service territory change includes the South 1/2 of the Northeast 1/4 Section 1, T109N, R50W excluding the platted areas thereof, the East 300 feet and the North 30 feet, East 1,832 feet, West 2,165 feet in the County of Brookings, South Dakota. The City of Brookings has also annexed the following property which will be retained by Interstate Telecommunications Cooperative, Inc.: Lot 1, Clark Addition and Outlot A excluding the North 444 feet thereof, all in the Southwest 1/4 of Section 10, T110N, R49W; Outlot B in the Northwest 1/4 of the Southwest 1/4 of Section 20, T110N, R49W; and Outlot B and E in the Southwest 1/4 of the Southwest 1/4 of Section 20, T110N, R49W all in the County of Brookings, South Dakota. Swiftel has also requested that the Commission waive rules ARSD 20:10:32:03(1-7); (9-21); and (23).
Chairman Sahr moved to grant the waivers of ARSD 20:10:32:03 subparagraphs 1-7, 9-21 and 23 and to grant amending Brookings Municipal Utilities d/b/a Swiftel Communications and Interstate Telecommunications Cooperative's Certificates of Authority and also grant the boundary change between Brookings Municipal Utilities d/b/a Swiftel Communications and Interstate Telecommunications Cooperative. Commissioner Hanson seconded and Commissioner Johnson concurred. Motion passed 3-0.
Mr. Nathan Solem stated that on February 2, 2006, Broadband Dynamics, L.L.C. filed an application seeking a Certificate of Authority to resell interexchange services including 1+ and 101XXXXX outbound dialing, 800/888 Toll-Free inbound dialing, directory assistance, data services and postpaid calling card services throughout South Dakota. The company has requested waivers from 20:10:24:02(8) which requires the filing of current financial statements by the applicant and has agreed not to offer any prepaid services (including prepaid calling cards) and not to accept or require any deposits or advanced payments without prior approval of the Commission. Mr. Solem recommended the Commission approve Broadband Dynamics, L.L.C.'s Certificate of Authority, with restrictions, and grant the waiver.
Chairman Sahr moved to grant the waiver of ARSD 20:10:24:02(8) and grant Broadband Dynamics, L.L.C.'s Certificate of Authority with restrictions from offering prepaid calling cards or accepting customer deposits or advance payments without prior approval of the Commission. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Mr. Doug Eidahl representing Northern Valley Communications, LLC (NVC) stated that NVC filed a request with the Commission to waive the NeuStar Pooling Administrator's denial of its request for numbering resources in the Aberdeen rate center. The Pooling Administrator denied NVC's request because the company does not meet the 75% utilization and the months-to-exhaust requirements in the Aberdeen rate center. NVC is requesting a waiver of these requirements so it could receive three sequential number blocks in the Aberdeen rate center to satisfy a customer's request. Mr. Keith Senger stated that NVC's customer who is requesting these blocks was a Qwest customer and now is a NVC customer, so NVC did not have these blocks available. NVC is indicating that it will need 3,000 numbers in the next 2-3 years. Mr. Senger suggested that NVC give the block of numbers to the customer in 1,000 block increments and if they do not use all three blocks in 3 years to return the unused blocks. Mr. Senger recommended that the waiver be granted.
Commissioner Johnson moved to grant Waiver of the FCC's MTE Threshold Requirements with the condition that the numbers be issued to NVC's customer one block at a time and that 90% of each block be used before the next block is issued and that any unused blocks revert back to the pool after four years. Commissioner Hanson seconded and Chairman Sahr concurred. Motion passed 3-0.
Doug Eidahl representing SSTelecom, Inc. stated that SSTelecom, Inc. is a subsidiary of Strandburg-Stockholm Telephone who is a subsidiary of Interstate Telecommunications Cooperative Inc.. Mr. Harlan Best stated that on December 23, 2005, SSTelecom, Inc. filed an application for a Certificate of Authority to provide local exchange services in the Qwest Exchanges. SSTelecom initially intends to provide service by overbuilding the Milbank exchange of Qwest. SSTelecom will construct and use its own facilities and may collocate or lease additional facilities as necessary to provide service to residential and business customers. SSTelecom is requesting an exemption from developing company specific cost-based access rates, ARSD 20:10:27:11. SSTelecom requests that its switched access rates be determined in accordance with ARSD 20:10:27:12 for a period of three years and at this time the company is asking for deferral of this exemption. Mr. Best also stated that SSTelecom will have a customer service office in Milbank and will also have an 800 number for after hours and on weekends. It will file a tariff and any revisions with the Commission before offering any services. Mr. Best recommended the Commission approve the Certificate of Authority granting a certificate of authority, subject to a continuous $25,000 surety bond, and subject to rural safeguards. Mr. Best further recommended that information filed pursuant to ARSD 20:10:32:03(11) be granted for confidential status.
Commissioner Hanson moved to grant SSTelecom, Inc.'s Certificate of Authority, subject to rural safeguards, and subject to a continuous $25,000 surety bond and also moved to grant confidential treatment to information filed pursuant to subparagraph (11) of ARSD 20:10:32:03. Chairman Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
Commissioner Hanson moved to grant SSTelecom, Inc.'s request for deferral of ARSD 20:10:27:11which requests that its switched access rates be determined in accordance with ARSD 20:10:27:12 for a period of three years. Chairman Sahr seconded and Commissioner Johnson concurred. Motion passed 3-0.
ADDENDUM
Electricity
Ms. Karen Cremer stated that Staff is requesting that the Commission authorize, pursuant to SDCL 49-1-8.2, the execution by the Executive Director of a contract for consulting services. The two consultants will be QSI Consulting, Inc. and Madden Consulting. Both consultants have done this type of work before and are very familiar with this type of docket.
Chairman Sahr moved to authorize the Executive Director to enter into Consulting Contracts with QSI Consulting Inc. and Madden Consulting in Docket EL05-022. Commissioner Johnson seconded and Commissioner Hanson concurred. Motion passed 3-0.
Meeting adjourned.
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Tina Douglas
Administrative Secretary
