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South Dakota Public Utilities Commission Meeting
March 23, 2010, 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: Commission Attorneys John Smith and Rolayne Wiest; Staff Attorneys Karen Cremer and Kara Semmler; Staff Analysts Bob Knadle, Terri LaBrie Baker Jon Thurber and Dave Jacobson; Consumer Affairs Supervisor Deb Gregg; and Administrative Secretaries Demaris Axthelm and Stephanie Harmon.

Also present were:  Talbot Wieczorek, Gunderson, Palmer, Goodsell and Nelson, representing Alltel Communications Inc. and Margo Northrup, Riter, Rogers, Wattier and Northrup, representing South Dakota Network LLC and South Dakota Telephone Association

Joining the meeting by telephone were:   Vice Chairman Steve Kolbeck; Commissioner Gary Hanson; Staff Analyst Brian Rounds; Interim Pipeline Safety Manager Nathan Solem; Jennifer Moore, Rick Leuthasauser, Chuck Rae, and Diane Munns, representing MidAmerican Energy Company; Rick Ramstad, Crew and Crew, representing the City of Crooks; Meredith Moore, Cutler and Donahoe, representing the City of Garrestson; and George Thomson, representing Qwest Corporation.

Administration

1.         Approval of the Minutes of the Commission Meeting Held on February 9, 2010, February 23, 2010, and the Ad Hoc Commission Meeting Held on March 9, 2010. (Staff: Demaris Axthelm)

          Commissioner Hanson moved to approve the Minutes of the February 9, 2010, February 23, 2010, and the Ad Hoc Commission Meeting Held on March 9, 2010.  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 128 contacts since the last report was prepared for the March 9, 2010, commission meeting.  22 contacts involved telecommunications services; 55 contacts involved electrical services; 10 contacts involved natural gas services; 10 contacts involved cell phone services; 11 contacts were related to the Do Not Call registry, 6 contacts involved the Keystone XL Pipeline, and 14 contacts involved issues not regulated by the Public Utilities Commission. In 2010, 718 of the 773 complaints registered have been resolved. In 2009, 2,536 of the 2,537 complaints registered have been resolved.

         Discussion took place regarding the Black Hills Power Rate Case (EL09-018). Ms. Gregg stated many of the calls received were in regards to public misconception of what the PUC's responsibilities are with regards to the case.

         Chairman Johnson stated that the Telecom Arbitration Dockets (TC07-112, TC07-114, TC07-115 and TC07-116) and GE10-001 would be moved to the end of the Agenda.

Gas & Electric

1.  GE10-001  In the Matter of the Filing by MidAmerican Energy Company for Approval of its Reconciliation for 2009 and its Proposed Energy Efficiency Plan for 2010. (Staff Analysts: Brian Rounds, Tim Binder, Staff Attorney: Karen Cremer)

            Mr. Chuck Rae and Ms. Diane Munns, MidAmerican Energy Company (MidAmerican) provided a background of the filing submitted to the Commission. Mr. Brian Rounds, Staff Analyst, stated Staff had been in discussions with MidAmerican prior to the filing and Staff recommended approval of the 2010 Energy Efficiency Plan and the 2010 Energy Efficiency Cost Recovery Rider as filed and amended.

            Chairman Johnson moved to approve the 2010 Energy Efficiency Plan and the 2010 Energy Efficiency Cost Recovery Rider. Motion passed 3-0.

Pipeline Safety

1.  PS09-005   In the Matter of the Petition of the Commission Pipeline Safety Program Manager for a Declaratory Ruling Regarding Whether the Crook Municipal Utilities Gas Line should be Classified as a Transmission or Distribution Line for Pipeline Safety Purposes (Staff Analysts: Nathan Solem/Stacy Splittstoesser, Staff Attorney: Kara Semmler)

            Ms. Kara Semmler, Staff Attorney, provided a background on the Commission Staff's reason for filing the initial docket. Ms. Semmler stated the parties have been working together to solve the issue and the pipeline is now running properly as a distribution line.

            Vice-Chairman Kolbeck moved to dismiss the petition and close the docket. 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)

            Ms. Meredith Moore, representing the Petitioners, explained why the Motion to Reconsider the Commission's Decision was filed and explained what impact the Commission's decision has on the Petitioners. Mr. Talbot Wieczorek, representing Alltel Communications, Inc. (Alltel), stated there is no new evidence or law for the Commission to consider in order to overturn the decision. Ms. Karen Cremer, Staff Attorney, recommended denying the Motion, as the record contained ample evidence to support the Findings of Fact and Conclusions of Law as determined by the Commission.

            Vice-Chairman Kolbeck moved to defer action on the docket until the next Commission meeting. Motion passed 3-0.

2.  TC08-135   In the Matter of the Complaint filed by Orbitcom, Inc. Against Verizon Business Network Services, Inc. Regarding Unpaid Access Charges. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Karen Cremer)

            Mr. John Smith, Commission Counsel, stated he received a phone call from the attorney for Orbitcom, Ms. Meredith Moore, on March 22, 2010, informing the Commission that an agreement has been reached between the parties. Ms. Moore stated that the agreement is not finalized, but would be soon, and therefore asked the Commission to defer the docket.

            Chairman Johnson moved to defer the docket. Motion passed 3-0.

3.  TC08-143   In the Matter of Ztar Mobile, Inc.'s Failure to Submit a Report and Pay the Gross Receipts Tax. (Staff Attorney: Karen Cremer)

            Ms. Karen Cremer, Staff Attorney, provided a background on the filing and stated that documentation received by the Commission showed that Ztar Mobile, Inc. does not do business in South Dakota and has not ever done business in South Dakota. Ms. Cremer asked the docket be dismissed and closed.

            Commissioner Hanson moved to dismiss and close the docket. Motion passed 3-0

4.  TC10-002   In the Matter of the Filing by Digital Telecommunication Inc. for Approval of its Switched Access Services Tariff No. 1 (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Kara Semmler)

            Ms. Terri LaBrie Baker, Staff Analyst, stated Staff has no objections to the request to withdraw the filing.

            Vice-Chairman Kolbeck moved to grant the withdrawal of the filing and close the docket. Motion passed 3-0.

5.  TC10-016   In the Matter of the Filing for Approval of an Interconnection Agreement Between Qwest Corporation and Enventis Telecom, Inc. (Staff Attorney: Kara Semmler)

            Ms. Kara Semmler stated the agreement was properly filed, properly executed and does not appear to contain discriminatory provisions. No comments were filed and Ms. Semmler recommended approval of the agreement.

            Chairman Johnson moved to approve the Interconnection Agreement between Qwest Corporation and Enventis Telecom, Inc. Motion passed 3-0.

6.  TC10-017   In the Matter of the Application of Neutral Tandem-South Dakota, LLC for a Certificate of Authority to Provide Facilities-Based and Resold Local Exchange and Interexchange Telecommunications Services in South Dakota. (Staff Analyst: Tim Binder, Staff Attorney: Kara Semmler)

            Ms. Margo Northrup, representing South Dakota Telecommunications Association (SDTA) and South Dakota Networks, LLC (SDN), stated SDTA submitted an intervention petition because Neutral Tandem South Dakota, LLC (Neutral Tandem) is asking to provide statewide services in South Dakota, including rural areas and also asked for a waiver of the rural safeguards. SDN submitted an intervention petition because Neutral Tandem, if approved, will be in direct competition with SDN in the services provided. Ms. Semmler stated she has been in contact with Neutral Tandem and it has no objection. Ms. Semmler also asked the Commission to defer action on granting the certificate of authority to Neutral Tandem.

            Commissioner Hanson moved to grant intervention to SDTA and SDN. Motion passed 3-0.

            Chairman Johnson moved to defer granting the certificate of authority for Neutral Tandem-South Dakota, LLC. Motion passed 3-0.

7.  TC10-018   In the Matter of an Interconnection Agreement Between Golden West Telecommunications Cooperative, Inc. and Native American Telecom, LLC. (Staff Attorney: Kara Semmler)

            Ms. Northrup, representing Golden West Telecommunication Cooperative, Inc. (Golden West), stated Native American Telecom, Inc. (Native American) does not have a Certificate of Authority through the Public Utilities Commission, but both parties have agreed that the Commission does have jurisdiction to decide any disputes that may arise through this agreement. Ms. Semmler stated the agreement was properly filed, properly executed and does not appear to contain discriminatory provisions. No comments were filed and Ms. Semmler recommended approval of the agreement.

         Chairman Johnson moved to approve the Interconnection Agreement between Golden West and Native American. Motion passed 3-0.

There being no further business, at the hour of 11:15 a.m., the South Dakota Public Utilities Commission Meeting adjourned. The next Commission meeting is scheduled for April 6, 2010.

/S/Stephanie Harmon       
Stephanie Harmon
Administrative Secretary
April 20, 2010