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South Dakota Public Utilities Commission Meeting
November 24, 2009, at 9:30 A.M. CST
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; Commission Advisor Greg Rislov; Commission Attorneys John Smith and Rolayne Wiest; Staff Attorneys Kara Semmler and Karen Cremer; Staff Analysts Terri LaBrie Baker, Tim Binder, Brian Rounds and Dave Jacobson; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretary Demaris Axthelm.

Also present were:  Rich Coit, South Dakota Telecommunications Association; Meredith Moore, Cutler and Donahoe, representing McCook Cooperative Telephone Company, Kennebec Telephone Company, Santel Communications Cooperative, Inc. and West River Cooperative Telephone Company; Talbot Wieczorek, Gunderson, Palmer, Goodsell and Nelson, representing Alltel Communications, Inc.; Rod Bowar, Kennebec Telephone Company; Jim Ackerman, South Dakota Peace and Justice Center; Lee Magnuson, Lynn, Jackson, Shultz and Lebrun, representing Black Hills Power Inc.; and Bryan Roth, McCook Cooperative Telephone Company.

Joining the meeting by telephone were:   Sue Loseke, Nebraska Public Power District; Kyle White, Black Hills Power, Inc.; Tamie Aberle, Montana-Dakota Utilities Co.; Andrew Moratzka, Mackall, Crounse and Moore, representing Black Hills Industrial Interveners; Sam Khoroosi, representing Black Hills Residential Consumers Coalition Interveners; Jim Wilcox, Xcel Energy; and Ryan Taylor, Cutler and Donahoe representing McCook Cooperative Telephone Company.

Administration

  1. Approval of the Minutes of the Commission Meetings held on June 23, 2009; July 14, 2009; August 11, 2009; August 25, 2009; September 8, 2009 and Minutes of the Ad Hoc Commission Meeting held on August 31, 2009. (Staff:  Demaris Axthelm)

             Vice Chairman Kolbeck moved to approve the Commission Minutes of the June 23, 2009; July 14, 2009; August 11, 2009; August 25, 2009; September 8, 2009 and Minutes of the Ad Hoc Commission Meeting Held on August 31, 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. Deb Gregg reported that the Commission received a total of 103 contacts since the last report was prepared for the November 10, 2009, commission meeting. Twenty-two contacts involved telecommunications services; 43 contacts involved electrical services; 7 contacts involved natural gas services; 1 contact involved gas and electric service, 4 contacts involved cell phone services; 1 contact involved the Keystone Pipeline, 15 contacts involved the Do Not Call Registry; 2 contacts were related to the Grain Warehouse Division, and 8 contacts involved issues not regulated by the Public Utilities Commission.  In 2009, 2,259 of the 2,315 complaints registered have been resolved.

Electric

1.      EL09-018          In the Matter of the Application of Black Hills Power, Inc. for Authority to Increase its Electric Rates. (Staff Analysts: Bob Knadle/Dave Jacobson/Terri LaBrie Baker/Jon Thurber/Tim Binder, Staff Attorney: Karen Cremer)

         Mr. Andrew Moratzka representing Black Hills Industrial Intervenors, Mr. Sam Khoroosi representing Black Hills Residential Consumers Coalition Intervenors, and Rapid City Regional Hospital petitioned for intervention. Mr. Lee Magnuson stated that Black Hills Power had no objection to Black Hills Industrial Intervenors and Black Hills Residential Consumers Coalition Intervenors. Mr. Magnuson further stated that Black Hills does have concern about intervenor South Dakota Peace and Justice Center, since they are not a customer of Black Hills Power. Ms. Karen Cremer stated that Staff recommends granting intervention to all intervenors. 

            Commissioner Hanson moved to grant intervention to Black Hills Industrial Intervenors, Rapid City Regional Hospital and Residential Consumers Coalition. Motion passed 3-0.

2.      EL09-017          In the Matter of the Joint Request for an Electric Service Rights Exception between Nebraska Public Power District and Northwest Rural Public Power District. (Staff Analyst: Brian Rounds, Staff Attorney: Kara Semmler)

             Ms. Sue Loseke stated Nebraska Public Power District (NPPD) has retail service area in South Dakota. Rural customer in the service area requested electric service to a new resident. NPPD's closest facility is approximately 300 feet away from this resident. NPPD feels that this is in the best interest of the customer and asked for the Commission approval of the request. Mr. Brian Rounds stated Northwest Rural Public Power does not have facilities in the state as the meter will be on the Nebraska side of the road. Additionally, the customer would save about $14,000 with this exception. Mr. Rounds further stated all parties are in agreement and Staff recommends approval of the joint request for an electric service rights exception.

         Vice Chairman Kolbeck moved to approve the joint request for an electric service rights exception. Motion passed 3-0.

3.      EL09-021        In the Matter of the Joint Request for an Electric Service Territory Boundary Change between Xcel Energy and Southeastern Electric Cooperative, Inc. (Staff Analyst: Dave Jacobson, Staff Attorney: Kara Semmler)

         Mr. Jim Wilcox stated this is a housing development that resides on the territory boundary line. Mr. Wilcox further stated Xcel and Southeastern Electric Cooperative have a mutual agreement and ask that the Commission approve the joint request for an electric service territory boundary change. Mr. Dave Jacobson stated that Staff recommends approval of the joint request.

         Chairman Johnson moved to approve the joint request for an electric service territory boundary change between Xcel Energy and Southeastern Electric Cooperative.  Motion passed 3-0.

4.      EL09-023        In the Matter of the Filing by Montana-Dakota Utilities Co. for Approval of Tariff Revisions. (Staff Analyst: Dave Jacobson, Staff Attorney: Karen Cremer)

         Ms. Tamie Aberle stated this is a tariff clean-up to remove deviations of the on and off peak hours related to congressional Daylight Savings Time changes. Mr. Dave Jacobson agreed with Ms. Aberle and recommended that the Commission approve the tariff revisions.

         Commissioner Hanson moved to approve the tariff revisions. Motion passed 3-0.

Natural Gas

1.        NG09-009      In the Matter of the Filing by Montana-Dakota Utilities Co. for Approval of a Contract with Deviations with Countertops, Inc. (Staff Analyst: Dave Jacobson, Staff Attorney: Karen Cremer)

              Ms. Tamie Aberle asked that the Commission approve a contract with deviation between Montana-Dakota Utilities Co. (MDU) and Countertops, Inc and associated tariff revisions beginning on December 1, 2009. Ms Aberle stated that Countertops, Inc. is conducting business in the former Merillat facility, which was also served under a contract with deviation. Countertops will continue to operate the facility as a large-volume, high-load factor customer, and MDU stated that it is in the best interest of the other customers for MDU to offer this discounted agreement which will satisfy Countertops' request for firm sales gas service at a competitive price that allows MDU to continue to provide natural gas service to this facility. Mr. Dave Jacobson agreed with Ms. Aberle in that the former contract with deviations was with the former Merillat facility location and that the circumstances that allowed Merillat facility contract with deviations still exists as a scaled down version of what the Merilat facility was. Mr. Jacobson recommended that the Commission approve the contract with deviations and associated tariff revisions with effective date of December 1, 2009.

              Vice Chairman Kolbeck moved to approve the contract with deviations and associated tariff revisions with a December 1, 2009 effective date.  Motion passed 3-0.

Telecommunications

1.      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 TC07-112,  TC07-114, TC07-115, and TC07-116  

         TC07-112         In the Matter of the Petition of McCook Cooperative Telephone Company for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

         TC07-114         In the Matter of the Petition of Kennebec Telephone Company for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

         TC07-115         In the Matter of the Petition of Santel Communications Cooperative, Inc. for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

         TC07-116         In the Matter of the Petition of West River Cooperative Telephone Company for Arbitration Pursuant to the Telecommunications Act of 1996 to Resolve Issues Relating to an Interconnection Agreement with Alltel Communications, Inc. (Staff Analyst: Bob Knadle, Staff Attorney: Karen Cremer)

         It was agreed upon by parties to take Alltel's Motion to reconsider and to hear oral arguments together. Ms. Meredith Moore provided a background on the issues before the Commission. Ms. Meredith Moore asked the Commission to adopt the rates proposed by the Petitioners. Mr. Talbot Wicezorek stated the numbers given by Mr. Ecklund can no longer be valid. Mr. Ecklund changed the forecasts of the Petitioner to meet the requests of the Commission.  Mr. Talbot Wicezorek read parts of the previous Findings of Fact and Conclusions of Law and stated the testimony of the Petitioner has not changed over the last year. Mr. Talbot Wicezorek asked the Commission to not grant Alltel's Motion to Reconsider.

         Commissioner Hanson moved to take no action at this time and take the discussion items under advisement. Motion passed 3-0.

2.      TC09-091           In the Matter of the Application of McCook Cooperative Telephone Company for an Amended Certificate of Authority. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Karen Cremer)

            McCook Cooperative, represented by Mr. Ryan Taylor requested an amended certificate of authority.  Mr. Taylor explained to the Commission the plan of reorganization: (i) Emery will merge with and into Tri-County; (ii) Tri-County will merge with and into Hanson; and (iii) Hanson will merge with and into McCook. Mr. Taylor further explained that following the merger of McCook and Hanson, with an effective date of January 1, 2010, McCook will reorganize and change its legal name to TrioTel Communications, Inc. Ms. Terri LaBrie Baker stated that Staff recommends granting an amended certificate of authority to McCook to include the exchanges of Emery and Clayton. 

         Chairman Johnson moved to grant an amended certificate of authority to McCook Cooperative Telephone Company. Motion passed 3-0.

3.      TC09-097           In the Matter of the Filing by Sprint Communications Company L.P. for Approval of Revisions to its Access Service Tariff. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Kara Semmler)

         Ms. Terri LaBrie Baker stated that Sprint has proposed to introduce 8YY toll free transit traffic service and other toll free changes.  Ms. LaBrie Baker stated that Staff has reviewed the filing and recommends granting the tariff revisions with an effective date of November 19, 2009.

         Commissioner Hanson moved to approve the access service tariff changes with an effective date of November 19, 2009.  Motion passed 3-0.

There being no further business, at the hour of 11:20 a.m., the South Dakota Public Utilities Commission Meeting adjourned. The next Commission meeting is scheduled for December 8, 2009.

/S/Demaris Axthelm       
Demaris Axthelm
Administrative Secretary
March 9, 2010