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South Dakota Public Utilities Commission Meeting
July 8, 2008, at 9:30 A.M.
Floyd Matthews Training Center, Joe Foss Building
523 E Capitol Ave
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Chairman Gary Hanson called the meeting to order. Present were: Commissioners Steve Kolbeck and Dusty Johnson; Executive Director Patty Van Gerpen; Deputy Executive Director Heather Forney; Commission Advisor Greg Rislov; Commission Attorneys John Smith and Rolayne Wiest; Staff Attorneys Karen Cremer and Kara Semmler; Staff Analysts Harlan Best, Dave Jacobson, Bob Knadle, Brian Rounds, and Terri LaBrie Baker; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Demaris Axthelm.
Also present were: Margo Northrup, Riter, Rogers, Wattier, & Northrup, LLP, representing South Dakota Association of Telephone Cooperatives; James Groft, James Valley Cooperative Telephone Company; Dave Gerdes, May, Adam, Gerdes and Thompson, representing Midcontinent Communications; and Rod Bowar, Kennebec Telephone Company.
Joining the meeting by telephone were: Kristy McDermott, Long Lines Wireless LLC; Cindy Grosvenor, Consortia Consulting; Talbot Wieczorek, Gunderson, Palmer, Goodsell & Nelson, representing Alltel Communications and Sprint Communications Company L.P.; Mary Sisak, Blooston, Mordkofsky, Dickens, Duffy and Prendergast, representing Brookings Municipal Utilities d/b/a Swiftel Communications; Ron Spangler and Dave Prazak, Otter Tail Power Company; Jim Cremer, Bantz Gosch & Cremer LLC, representing James Valley Cooperative Telephone Company; Meredith Moore, Cutler and Donahoe, representing Alliance Communications Cooperative, Inc., McCook Cooperative Telephone Company, Beresford Municipal Telephone Company, Kennebec Telephone Company, Santel Communications Cooperative, Inc. and West River Cooperative Telephone Company; Colleen Sevold, George Thomson, and Mike Williams, Qwest Corporation; Naomi Turkria and Debra Kutsunis, MidAmerican Energy Company; and Brad Klein, Environmental Law and Policy Center.
Administration
- Approval of the Minutes of the Commission Meeting held on May 6, 2008, and the Ad Hoc meeting held on May 28, 2008. (Staff: Demaris Axthelm)
Commissioner Johnson moved to approve the Commission Minutes of the meeting held on May 6, 2008, and the Ad Hoc Meeting held on May 28, 2008 Motion passed 3-0.
Consumer Reports
- 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 74 contacts since the last report was prepared for the June 24, 2008, Commission meeting. 15 contacts involved telecommunications services; 15 contacts involved electricity issues; 4 contacts involved natural gas issues; 11 contacts involved cellular phone issues; 17 contacts involved the Do Not Call Registry; and 12 contacts involved issues not regulated by the Public Utilities Commission. In 2008, 1,124 of the 1,190 complaints registered have been resolved informally. In 2007, 2,300 of the 2,337 complaints registered have been resolved informally.
Electric
1. EL06-018 In the Matter of the Consideration of the New PURPA Standards (Staff Analyst: Nathan Solem, Staff Attorney: Kara Semmler)
Ms. Kara Semmler stated the PURPA fuel diversity standard, known as "standard 12" and the fossil fuel generating efficiency standards, known as "standard 13" added by the Energy Policy Act of 2005 ("EPAct 2005") would not be in the best interests of the rate payers of South Dakota. Staff stated the surrounding states have not adopted the two standards. Staff recommended the Commission may want to use its existing authority to have utilities identify, in their biennial 10-year plans, how they arrived at the "resource mix" and how they propose to meet forecasted demands.
Commissioner Johnson moved to not adopt PURPA Standard 12, Fuel Diversity, and PURPA Standard 13, Fossil Fuel Generation Efficiency. Motion passed 3-0.
Mr. Ron Spangler stated that Otter Tail Power will no longer install mercury vapor fixtures for new installations. As of January 1, 2008, the Energy Policy of 2005 prohibits mercury vapor lamp ballasts from being manufactured or imported in the United States and Otter Tail will no longer be able to purchase mercury vapor fixtures. Mr. Dave Jacobson recommended the Commission approve the tariff with the proposed effective date of July 1, 2008.
Vice Chairman Kolbeck moved to approve the tariff revision with an effective date of July 1, 2008. Motion passed 3-0.
Telecommunications
1. TC06-180 In the Matter of the Application of Sprint Communications Company L.P. for Authority to Provide Local Exchange Services in Certain Rural Areas Served by Interstate Telecommunications Cooperative, Inc. (Staff Analyst: Harlan Best, Staff Attorney: Kara Semmler)
Talbot Wieczorek, representing Sprint, requested that the Commission extend the deadline to allow for enough time for the Commission to reach a decision. Meredith Moore, representing Interstate Telecommunications Cooperative stated they support the Motion for Delay and requested that the Commission grant the motion. Ms Kara Semmler stated that staff supports the Motion for Delay and recommends that the Commission approve the Motion for Delay.
Vice Chairman Kolbeck moved to grant the Joint Motion for Delay. Motion carried 3-0.
2. TC06-184 In the Matter of the Filing by Long Lines Wireless, LLC for Designation as an Eligible Telecommunications Carrier. (Staff Analyst: Harlan Best, Staff Attorney: Karen Cremer)
Kristy McDermott, representing Long Lines Wireless, LLC, stated that Long Lines Wireless meets the requirements of the state and FCC, will provide equal access and requested the Commission grant the petition for designation as an Eligible Telecommunications Carrier as it will serve the public interest. Mr. Harlan Best stated that staff recommends approval of the petition for designation and requests the Commission provide certification to the FCC and Universal Service Administrative Company. Ms. Rolayne Wiest suggested opening a rulemaking docket to consider new rules regarding ETC designations and revocations.
Chairman Hanson moved to approve Long Lines Wireless, LLC's Petition for Designation as an ETC in the areas as provided in its latest filing of Exhibits A, B and C. In some areas, this designation is subject to the FCC's concurrence with the proposed redefinitions. In addition, he moved that the Commission provide certification to the FCC and USAC as requested by Long Lines in its filing. Motion Passed 3-0
3. In the Matter of the Petition for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement in Dockets TC07-111, TC07-112, TC07-113, TC07-114, TC07-115, and TC07-116
Ms. Meredith Moore, representing Petitioners, requested the Commission adopt the amended scheduling order as filed. Mr. Talbot Wiezcorek, representing Alltel Communications, concurred with Ms. Moore. Karen Cremer stated that staff recommends approval and noted the following changes of the hearing date to July 29 – August 31, 2008, to be held in the Floyd Matthew Training Center in the Joe Foss Building.
Commissioner Johnson moved to approve the Joint Stipulation for Amended Scheduling and Decision Date with the date as recommended by staff and location change to the Floyd Matthew Training Center. Motion Passed 3-0.
4. In the Matter of the Petitions for Suspension or Modification of 47 U.S.C. Section 251(b)(2) of the Communications Act of 1934 as Amended in Dockets TC08-006, TC08-007, TC08-008, TC08-009, TC08-010, TC08-011, TC08-012, TC08-013, TC08-014, TC08-015, TC08-016, TC08-017, TC08-018, TC08-019, TC08-020, TC08-021, TC08-022, TC08-023, TC08-024, TC08-025, TC08-026, and TC08-027.
TC08-018 In the Matter of the Petition of Union Telephone Company for Suspension or Modification of 47 U.S.C. Section 251(b)(2) of the Communications Act of 1934 as Amended. (Staff Analyst: Harlan Best, Staff Attorney: Rolayne Ailts Wiest)
TC08-019 In the Matter of the Petition of Armour Independent Telephone Company for Suspension or Modification of 47 U.S.C. Section 251(b)(2) of the Communications Act of 1934 as Amended. (Staff Analyst: Harlan Best, Staff Attorney: Rolayne Ailts Wiest)
Mr. John Smith, Commission Counsel, stated that petitioners agreed to withdraw their motions and the parties agreed to the modifications of the scheduling order. Margo Northrup stated that South Dakota Telecommunications Association concurs with Mr. Smith and requested the Commission approve the procedural schedule.
Commissioner Johnson moved to approve the modifications to the procedural schedule as agreed to by the parties. Motion Passed 3-0.
5. TC08-088 In the Matter of the Filing by Citizens Telecommunications Company of Minnesota, LLC for a Waiver of ARSD 20:10:32:56. (Staff Analysts: Harlan Best/Terri LaBrie Baker, Staff Attorney: Karen E. Cremer)
Ms. Karen Cremer stated that Citizens Telecommunications Company of Minnesota, LLC is requesting a permanent waiver of ARSD 20:10:32:56. Staff recommended the Commission grant ETC certification and require the company to request the waiver annually.
Commissioner Johnson moved to grant a one year waiver of ARSD Section 20:10:32:56, finding that compliance is unduly burdensome and unnecessary. The Commission also voted to approve Citizens' request for certification regarding the use of federal universal service support. The Commission found Citizens is eligible to receive federal support as it states it will only use the support for the provision, maintenance and upgrading of facilities and services for which the support is intended. Motion passed 3-0.
Administration
1. Collaborative Review of Qwest Performance Assurance Plan (Staff Analysts: Harlan Best/Terri LaBrie Baker)
Mr. Harlan Best stated that staff is requesting authorization and funding to join the Qwest Performance Assurance Plan (QPAP) review. Payment for the review would come from Tier 2 payments paid to the Commission by Qwest. Staff stated that Liberty Consulting would be contracted to conduct the detailed review and analysis of both the QPAP and the performance indicator descriptions. Mr. Mike Williams stated that Qwest QPAP review will be conducted in 14 states and could cost 14 million dollars and therefore, Qwest opposes the collaborative review.
Vice Chairman Kolbeck moved to authorize staff to fully participate in Qwest Performance Assurance Plan collaborative review and to allow staff to contract with Liberty Consulting up to a maximum $50,000 with the condition that if additional funding is required Staff must appear before the Commission. Motion passed 3-0.
Telecommunications
6. In the Matter of the Request for Certification Regarding the Use of Federal Universal Service Support in Dockets TC08-063, TC08-067, TC08-071, TC08- 072, TC08-073, TC08-075, TC08-076, TC08-077, TC08-078, TC08-079, TC08-080, TC08-081, TC08-082, TC08-083, TC08-084, TC08- 090, and TC08-093
TC08-083 In the Matter of the Request of Golden West Telecommunications Cooperative, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analyst: Harlan Best/Terri LaBrie Baker, Staff Attorney: Karen E. Cremer)
Mr. Harlan Best stated that staff recommends the Commission provide a letter of certification for the above reference dockets to the FCC and USAC as requested.
Chairman Hanson moved to approve the above referenced dockets to have the Commission provide a letter of certification to the Federal Communications Commission and to the Universal Service Administrative Company regarding the plan for the use of federal universal services support as proposed. Motion passed 3-0.
Commissioner Johnson moved to go into closed session to ask questions regarding confidential information in the above referenced docket. Motion passed 3-0.
Mr. Harlan Best stated that staff recommends the Commission provide a letter of certification to the FCC and USAC as requested.
Commissioner Johnson moved that the Commission provide a letter of certification to the Federal Communications Commission and to the Universal Service Administrative Company regarding the plan for the use of federal universal services support for James Valley Cooperative Telephone Company. Motion Passed 3-0
Chairman Hanson moved to go into closed session to ask questions regarding confidential information in the above referenced docket. Motion passed 3-0.
Mr. Harlan Best stated that staff recommends the Commission provide a letter of certification to the FCC and USAC as requested.
Chairman Hanson moved that the Commission provide a letter of certification to the Federal Communications Commission and to the Universal Service Administrative Company regarding the plan for the use of federal universal services support for Midstate Communications, Inc. Motion Passed 3-0.
Vice Chairman Kolbeck moved to defer Knology Community Telephone, Inc.'s request for certification. Motion passed 3-0.
There being no further business, at the hour of 12:30 pm the South Dakota Public Utilities Commission Meeting adjourned. The next Commission meeting is July 29, 2008.
/S/ Demaris Axthelm__
Demaris Axthelm
Administrative Secretary
November 12, 2008
