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South Dakota Public Utilities Commission Meeting
September 8, 2009 at 9:30 AM.
Room 413, Capitol Building
Pierre, South Dakota  

MINUTES OF THE COMMISSION MEETING

Chairman Dusty Johnson called the meeting to order.  Present were: Vice Chairman Steve Kolbeck: Commissioner Gary Hanson; Executive Director Patty Van Gerpen; Deputy Executive Director Heather Forney; Commission Advisor Greg Rislov; Commission Attorneys John Smith and Rolayne Wiest; Staff Attorneys Kara Semmler and Karen Cremer; Staff Analysts Terri LaBrie Baker, Jon Thurber, Stacy Splittstoesser, Tim Binder, and Dave Jacobson; and Administrative Secretary Demaris Axthelm.

Also present were:  Darla Rogers, Riter, Rogers, Wattier & Northrup, representing Midstate Communications and Midstate Telecom, Inc.; Brett Koenecke, May, Adam, Gerdes and Thompson, representing Iberdrola Renewables; Bleau LaFave and Sara Dannen, NorthWesten Energy; Gene Lebrun, Lynn, Jackson, Shultz & Lebrun, P.C., representing Basin Electric Power Cooperative, Inc.; Ed Anderson, South Dakota Rural Electric Association; and Rich Coit, South Dakota Telecommunications Association.

Joining the meeting by telephone were:  Jim Cremer, Bantz, Gosch & Cremer, representing James Valley Wireless, LLC and Northern Valley Communications, LLC.; Greg Hart, Long Lines Wireless; Paul Bergman, Jefferson Telephone Company; Kathy Ford, Knology Community Telephone, Inc. and Knology of the Black Hills, LLC.; Dennis Placke and Pam Bonrud, NorthWestern Corporation d/b/a NorthWestern Energy.  

Administration

  1. Approval of the Minutes of the Ad Hoc Commission Meeting Held on May 28, 2009. (Staff:  Demaris Axthelm)

         Commissioner Hanson moved to approve the Ad Hoc Commission Minutes of the May 28, 2009, meeting.  Motion passed 3-0.

Consumer Reports

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

          Ms. Karen Cremer reported that the Commission received a total of 61 contacts since the last report was prepared for the August 25, 2009, Commission meeting. 17 contacts involved telecommunications services; 19 contacts involved electrical services; 4 contacts involved natural gas services; 3 contacts involved cell phone services; 11 contacts involved the Do Not Call Registry; and 7 contacts involved issues not regulated by the Public Utilities Commission.  In 2009, 1,647 of the 1,713 complaints registered have been resolved.

Chairman Johnson stated that the Telecom Item number 4 would be moved to the front of the Agenda.

Electric

1.      EL09-015        In the Matter of the Application by Basin Electric Power Cooperative, Inc. for an Energy Conversion Facility Siting Permit for the Deer Creek Station Project Combined-Cycle Natural Gas Energy Conversion Facility and Associated Infrastructure, Including a Water Supply System and Electric Transmission System. (Staff Analysts: Nathan Solem/Brian Rounds/Stacy Splittstoesser/Tim Binder, Staff Attorney: Karen Cremer)

         Electric item 1 was considered together with Hydrocarbon pipeline item 1.

Hydrocarbon Pipeline

1.      HP09-002        In the Matter of the Application by Basin Electric Power Cooperative, Inc. for an Energy Conversion Facility Siting Permit for a Natural Gas Pipeline to Support the Deer Creek Station Project. (Staff Analysts: Nathan Solem/Brian Rounds/Stacy Splittstoesser/Tim Binder, Staff Attorney: Karen Cremer)

         Mr. Brett Koenecke, representing Iberdrola Renewables (Iberdrola), stated that Iberdrola plans on building the Buffalo Ridge II wind farm in the general vicinity of the Deer Creek Station plant and asked that the Commission grant Iberdrola intervention.  Mr. Gene Lebrun, representing Basin Electric Power Cooperative, Inc. (Basin) stated that Basin has been working with Iberdrola on agreements and hopefully will continue to do so.  Ms. Karen Cremer stated that Staff recommends granting intervention to Iberdrola.

         Commissioner Gary Hanson moved in Dockets EL09-015 and HP09-002 to grant intervention to Iberdrola Renewables .  Motion passed 3-0.

Pipeline Safety

1.      PS09-003        In the Matter of the Filing by NorthWestern Corporation d/b/a NorthWestern Energy for Approval of a Waiver of 49 C.F.R. Section 192.625(a). (Staff Analysts: Nathan Solem/Stacy Splittstoesser, Staff Attorney: Kara Semmler)

             Mr. Bleau LaFave read a statement prepared by Melissa Baruth stating that NorthWestern requests a permanent waiver of 49 C.F.R. 192.625(a) for 450 feet of pipeto be classified as distributionMs. Stacy Splittstoesser stated that subject to the seven recommendations filed, Staff recommends approval of the waiver and forwarding the order to PHMSA for their review and approval.  Ms. Sara Dannen stated that NorthWestern had no objection to the seven Staff recommendations. 

         Chairman Johnson moved to approve the Waiver of 49 C.F.R. 192.625(a) subject to the seven recommendations made by Staff and subject to PHMSA's review and consent.  Motion passed 3-0.

Rulemaking

1.      RM08-002       In the Matter of the Adoption of Rules Regarding PURPA Interconnection. (Staff Analyst: Nathan Solem/Brian Rounds, Staff Attorney: Kara Semmler; Commission Attorney: Rolayne Ailts Wiest)

         Ms. Kara Semmler stated that Staff has no objections to the system impact study agreement forms.

         Chairman Johnson moved to approve the systems impact study agreement forms.  Motion passed 3-0.

2.      RM09-001       In the Matter of the Adoption of Rules Regarding Pipeline Safety.  (Staff Analysts: Nathan Solem/Stacy Splittstoesser, Staff Attorney: Kara Semmler)

         Ms. Rolayne Wiest recommended that the Commission adopt the changes made by Staff at the hearing and adopt the changes made by LRC with the exception of ARSD 20:10:37:10.

         Commissioner Hanson moved to adopt the pipeline safety rules and to include the recommendations made by Staff and LRC with the exception of ARSD 20:10:37:10.  Motion passed 3-0.

Telecommunications

1.      TC09-023        In the Matter of the Filing by Northern Valley Communications, L.L.C. for Designation as an Eligible Telecommunications Carrier. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Karen Cremer)

2.      TC09-024        In the Matter of the Filing by James Valley Wireless, LLC for Designation as an Eligible Telecommunications Carrier. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Karen Cremer)

         Mr. Jim Cremer explained to the Commission the differences between Northern Valley Communications, LLC and James Valley Wireless, LLC in their service offerings and organizational structure and stated that the primary reason for seeking eligible telecommunications carrier designation is to be able to offer lifeline and link up subsidies to customers.  Ms. Terri LaBrie Baker stated that Northern Valley Communications, LLC and James Valley Wireless, LLC have filed according to the administrative rules and there were no interveners, and Staff therefore recommends granting ETC status to both companies. Ms. Rolayne Wiest suggested supplementing the record to include a description of how the companies intend to serve the entire Qwest service area, explain the relationship between Northern Valley Communications, LLC and James Valley Wireless, LLC and explain the directory assistance provider.

         Chairman Johnson stated that no action would be taken in Dockets TC09-023 and TC09-024.

3.      In the Matter of the Request for Certification Regarding the Use of Federal Universal Service Support in Dockets TC09-069, TC09-070, and TC09-077

         TC09-069        In the Matter of the Request of Knology Community Telephone, Inc. for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)

         TC09-070        In the Matter of the Request of Knology of the Black Hills, LLC for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)

            Ms. Kathy Ford stated that Knology of the Black Hills, LLC and Knology Community Telephone Inc. filed an updated two year plan and have responded to all follow-up questions that were asked by Staff. Mr. Jon Thurber stated that with the October 1, 2009, deadline approaching, Staff brings this docket before the Commission so any additional requests can be addressed before the next Commission Meeting.    

         Chairman Johnson moved to provide a certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the plan for the use of federal universal service support as proposed in Dockets TC09-069 and TC09-070.  Motion passed 3-0.

         TC09-077        In the Matter of the Request of Long Lines Wireless, LLC for Certification Regarding its Use of Federal Universal Service Support. (Staff Analysts: Terri LaBrie Baker/Jon Thurber, Staff Attorney: Karen Cremer)

         Mr. Greg Hart briefed the Commission on the history and status of Long Lines Wireless, LLC (Long Lines).  Mr. Hart further explained the network build out in 2006 and that the company was granted ETC status last August so this ETC certification for 2010 is the additional certification for the Company.  Ms. Terri LaBrie Baker stated that Long Lines has filed according to the Commission's rules, and Staff recommends that the Commission provide a letter of certification to the Federal Communications Commission and to the Universal Service Administration Company. 

         Chairman Johnson moved to provide a certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the plan for the use of federal universal service support as proposed in Docket TC09-077.  Motion passed 3-0. 

4.      TC09-083        In the Matter of the Application of WideVoice Communications, Inc. for a Certificate of Authority to Provide Interexchange Telecommunications Services and Local Exchange Services in South Dakota. (Staff Analyst: Dave Jacobson, Staff Attorney: Kara Semmler)

         Ms. Darla Rogers stated that Midstate Telecom, Inc. and Midstate Communications (Midstate) filed a petition to intervene based upon two primary purposes. First is that the application is not clear on where WideVoice Communications intends to offer services. Second is that contacts between Widevoice and Midstate indicate that Widevoice intends to establish a point of interconectino in Fort Thompson, which is not a Qwest area.  Ms. Rogers asked the Commission to grant intervention based upon the filing and the contacts that Midstate has had with WideVoice.  Mr. Rich Coit stated that South Dakota Telecommunications Association (SDTA) filed a Petition to Intervene based upon not understanding the extent of the area that will be affected and the type of services that they are planning to offer.  Ms. Kara Semmler stated that Staff agrees that clarification work is needed and does not object to the parties intervention.. 

         Vice Chairman Kolbeck moved to grant Intervention to South Dakota Telecommunications Association, Midstate Communications and Midstate Telecom, Inc. Motion passed 3-0.

There being no further business, at the hour of 10:37 a.m., the South Dakota Public Utilities Commission Meeting adjourned. The next Commission meeting is scheduled for September 22, 2009.

 

/S/Demaris Axthelm        
Demaris Axthelm
Administrative Secretary
November 24, 2009