WYOMING PUBLIC SERVICE COMMISSION. Minutes of Regular Open Meeting. Thursday, May 2, :30 p.m.

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1 WYOMING PUBLIC SERVICE COMMISSION Minutes of Regular Open Meeting Thursday, May 2, :30 p.m. Commissioners: Deputy Chairman William F. Russell Commissioner Kara Brighton O Kelley Pearson, Hickey and Evans, LLP, Local Counsel for Gas Natural, Inc. (GNI) Terri Firestein, Crosstel Tandem, Inc. (by telephone) John Feehan, Crosstel Tandem, Inc. (by telephone) Brad Samuels, Energy West Wyoming (EWW) (by telephone) Jed Henthorne, GNI (by telephone) Christopher Hubbert, Kohrman, Jackson, and Krantz, Securities and Exchange Commission Counsel for GNI (by telephone) Commission Advisory Staff (CAS): Lori Brand, John Burbridge, Luy Luong, Steve Mink, Blair Bales, Tom Wilson, George Ogirima and Chris Petrie. CONSENT AGENDA 1. Docket Nos EA-11 & EA-11 (Record No ). Joint application of Cheyenne Light, Fuel & Power Company and Black Hills Power, Inc. for a Certificate of Public Convenience and Necessity for a Gas-Fired Electric Generating Power Plant and Related Facilities. Commission to consider issuance of an order Nunc Pro Tunc, to change the Issued date and the MADE and ENTERED" date from "January 8, 2012, to the correct date of January 8, Docket Nos TK-13 and TK-13 (Record No ). Contract filing of United Telephone Company of the West d/b/a CenturyLink for authority to enter into an ICC VoIP amendment to its interconnection agreement with Sprint Communications Company, L.P. Commission to consider and act on the application. 3. Docket No TA-13 (Record No ) and TA-13 (Record No ). Notification and request of Sage Telecom, Inc. and Sage Telecom Communications, LLC, for accepting the name changes of Sage Telecom, Inc. to Sage Telecom Communications, LLC. Commission to consider and accept for filing the notice of name changes. Open Meeting Minutes for Thursday, May 2, 2013 Page 1

2 4. Undocketed: Open meeting minutes for review by the Commission for the regular open meetings of March 28, April 2, 9, 16, and 18, 2013, as prepared by Amanda Roberts. Chairman Minier introduced Consent Items 1 through 3. John Burbridge, Commission Counsel, recommended the Commission issue the Order in Item 1, approve the application in Item 2 by Order only, and accept for filing by Letter Order, under Commission Counsel s signature for Item 3, all effective immediately. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. Deputy Chairman Russell moved to approve the minutes in Item 4 as written. Commissioner Brighton seconded the motion and Chairman Minier concurred. REGULAR AGENDA 1. Docket No TA-12 (Record No ). Application of Crosstel Tandem, Inc. for a certificate of public convenience and necessity (CPCN) to provide local telecommunications services in Wyoming. Commission to consider and act on Crosstel Tandem, Inc. s: a. Petition for Confidential Treatment of Exhibit 2 (Petition); and b. Motion to Withdraw CPCN Application. (Motion) Terri Firestein and John Feehan of Crosstel Tandem explained the Motion stating, the business opportunity in Wyoming no longer exists as the client was bought out. There were no further questions or comments. John Burbridge, Commission Counsel, recommended granting the Petition and the Motion by Order only, effective immediately. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. 2. Docket No GP-13 (Record No ). Application of Energy West Wyoming, Inc., a subsidiary of Energy West Incorporated, Inc. for authority to pass on a net wholesale gas cost increase of $ per McF. Commission to consider and act on application. Tom Wilson, CAS, provided a technical memo dated April 29, Brad Samuels, EWW, presented the application, explaining this is the annual gas cost adjustment filing and would be effective May 1, The increase, effective for all customers, is a result of higher commodity markets in recent months. The amortization of the commodity balancing account contributes $0.35 to the increase. The remaining $1.08 reflects the futures markets becoming stronger in upcoming months. The rate is intended to be in effect for the next 12 months. If markets necessitate, EWW will file an out-of-period pass-on application. Samuels explained a correction to the application actually changes the amount to $ but new tariff pages were not submitted. There were no further questions or comments. Lori Brand, Commission Counsel, recommended approval of the application with the amount of $ per McF by Notice and Order for usage on and after May 1, 2013, Order to be effective immediately. Deputy Chairman Open Meeting Minutes for Thursday, May 2, 2013 Page 2

3 Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. 3. Docket No GS-12 (Record No ). Application of Gas Natural, Inc., parent of Energy West Inc., parent of Energy West Wyoming, Inc., for authority to issue Gas Natural common stock in an amount not to exceed $7,605,000 to fund the acquisition of John D. Oil and Gas Marketing, LLC. Commission to consider and act on application. Luy Luong, CAS presented a technical memo dated April 29, O Kelley Pearson, Local Counsel for Gas Natural, provided an overview of the application. Jed Henthorne, Gas Natural, provided an explanation of the fair value test. If approved, Gas Natural would issue approximately 256,000 shares of common stock. Any remaining issuances would be based on earn out provisions of the $4.73 million projection. These issuances are based on actual earnings of John D. Oil and Gas Marketing. There were no further questions or comments. Lori Brand, Commission Counsel, recommended approval of application by Order only, effective immediately. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. Prepared by: Amanda Roberts Next Regular Open Meeting: Tuesday, May 7, ACCEPTED and APPROVED by the Commission on May 21, Open Meeting Minutes for Thursday, May 2, 2013 Page 3

4 WYOMING PUBLIC SERVICE COMMISSION Minutes of Regular Open Meeting Tuesday, May 7, :30 p.m. Commissioners: Deputy Chairman William F. Russell Commissioner Kara Brighton Jeff Hohn, High Plains Power (HPP) John Schumacher, White and White, P.C., Local Counsel for HPP Walter Eggers, Holland and Hart, LLP, Local Counsel for Rocky Mountain Pipeline System LLC (RMPS) and Magellan Midstream Partners L.P. (Magellan) Carol Sandvick, Plains All American Pipeline (Plains), RMPS parent company (by telephone) Kolbi Blanchette, Plains (by telephone) Doug May, Magellan (by telephone) Ross Crutchfield, Magellan (by telephone) Roger Miller, Magellan (by telephone) Liz Zerga, Jubin and Zerga, LLC, Local Counsel for Dubois Telephone Exchange (Dubois) Jason Hendricks, Dubois Michael Kenney, Dubois Craig Colton, Self, Customer of Dubois and HPP Office of Consumer Advocate (OCA): Belinda Kolb and Chris Leger. Commission Advisory Staff (CAS): Blair Bales, Perry McCollom, John Burbridge, Shirley McCown Jess Bottom, Chris Petrie, and Art Schmidt. CONSENT AGENDA 1. Docket No TA-13 (Record No ). Notification and request of BellSouth Long Distance, Inc., regarding the cancellation of its Certificate of Public Convenience and Necessity (CPCN) to provide local exchange telecommunications services. Commission to consider and accept for filing the notice of cancellation of CPCN. 2. Docket Nos TA-13 and TA-13 (Record No ). Notification of the indirect transfer of control of Globalcom, Inc. to First Communications, LLC. Commission to consider and accept for filing the notice of indirect transfer of control. Open Meeting Minutes for Tuesday, May 7, 2013 Page 1

5 Chairman Minier introduced Consent Items 1 and 2. John Burbridge, Commission Counsel, recommended the Commission accept for filing the notice of cancellation of the certificate of public convenience and necessity by Letter Order under Commission Counsel s signature for Item 1, and accept for filing the notice of indirect transfer of control by Letter Order under Commission Counsel s signature for Item 2, both effective immediately. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. REGULAR AGENDA 1. Docket No PA-13 (Record No ) Amended Joint Application of Rocky Mountain Pipeline System LLC (RMPS) and Magellan Midstream Partners L.P. (Magellan) for Approval of a Reorganization of a Public Utility Pursuant to W.S and Chapter 2, Section 209 of the Rules of the Wyoming Public Service Commission and for a Certificate of Public Convenience and Necessity (CPCN) Pursuant to W.S Commission to consider and act on: a. the Petition for Confidential Treatment of Exhibits C and E to Amended Joint Application (Petition); and, b. the amended joint application for a reorganization and a CPCN. Jess Bottom, CAS, provided a technical memo dated May 3, Walter Eggers, Local Counsel for RMPS and Magellan, presented the application. Magellan is a new utility for the State of Wyoming which owns and operates approximately 9,600 miles of pipeline in 14 states. Reorganization of the utility will not adversely affect the utility s ability to serve the public. Magellan has shown a good faith intent to operate the pipeline and during the notice period, no comments or protests were received. RMPS and Magellan need Commission approval before closing can occur. There were no further comments or questions. Blair Bales, Commission Counsel, recommended approval of the application by Order only, effective immediately with the condition Magellan provides documentation to the Commission it is registered with the Secretary of State prior to commencing operations. Bales also recommended the Commission grant the Petition. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. 2. Docket No TC-13 (Record No ). Formal complaint of Craig Colton against Dubois Telephone Exchange, Inc. (Dubois), requesting a hearing regarding installation of telephone services to Flying Frog Subdivision. Commission to consider Dubois Motion to Dismiss. Craig Colton will appear in person on his own behalf. Liz Zerga, Local Counsel for Dubois, presented the Motion to Dismiss. Since the date of the complaint s filing, the property in question has been transferred to an entity named Fractured Fairytales, L.L.C. and there are questions as to whether Colton has standing to bring a complaint forward on its behalf. Chairman Minier requested Colton provide a copy of the Articles of Organization for the L.L.C. to the Commission to confirm that he is a member of the L.L.C. After reviewing maps provided by both Dubois and Colton, it was determined Colton has not completed negotiations with the Town of Dubois Open Meeting Minutes for Tuesday, May 7, 2013 Page 2

6 and, therefore, the necessary easement has not been secured.. The tariffs provide Dubois has the right to determine what type of service will be provided once an access easement is obtained. It is clear that fiber service will require underground placement, and Colton acknowledged that he could not contest a gap in the necessary underground easements if the northern access route were used. There were no further comments or questions. Deputy Chairman Russell moved to grant Motion to Dismiss without prejudice. Commissioner Brighton seconded the motion and Chairman Minier concurred. 3. Docket No CC-13 (Record No ). Complaint of Craig Colton against High Plains Power (HPP), requesting a hearing regarding installation of electric services to Flying Frog Subdivision (FFS). Commission to consider HPP s Motion for a More Definite Statement (Motion). John Schumacher, Local Counsel for HPP, presented the Motion for a More Definite Statement to clarify the Complaint filed by Colton. HPP indicated there are adequate resources available to bring power to the subdivision, but without proper easements, nothing can be done. The Federal Aviation Administration requirements will determine whether power can be provided via overhead transmission. With the understanding that Colton is required to acquire an adequate utility easement to FFS, and thereafter HPP would be able to provide electrical service to FFS at Colton s expense, Colton and HPP agreed the matter could be dismissed. There were no further questions or comments. Chairman Minier moved to dismiss without prejudice. Deputy Chairman Russell seconded the motion and Commissioner Brighton concurred. Prepared by: Amanda Roberts Next Regular Open Meeting: Thursday, May 9, ACCEPTED and APPROVED by the Commission on May 21, Open Meeting Minutes for Tuesday, May 7, 2013 Page 3

7 WYOMING PUBLIC SERVICE COMMISSION Minutes of Regular Open Meeting Thursday, May 9, :30 p.m. Commissioners: Deputy Chairman William F. Russell Commissioner Kara Brighton Dave Mosier, Rocky Mountain Power (RMP) Yvonne Hogle, Senior Counsel for RMP (by telephone) Steve McDougal, RMP (by telephone) Stacey Kusters, RMP (by telephone) Greg Duvall, RMP (by telephone) Brian Dickman, RMP (by telephone) Joelle Steward, RMP (by telephone) Mike Zimmerman, RMP (by telephone) Robert Pomeroy, Wyoming Industrial Energy Consumers (WIEC) (by telephone) Thor Nelson, WIEC (by telephone) Office of Consumer Advocate (OCA): Chris Leger. Commission Advisory Staff (CAS): Blair Bales, John Burbridge, Steve Mink, Laura Yetter, Lori Brand, Chris Petrie and Marci Norby CONSENT AGENDA 1. Docket No CS-13 (Record No ). Application of Niobrara Electric Association, Inc. for authority to refinance approximately $1.25 million of outstanding RUS debt from CoBank. Commission to consider issuing an Order Continuing Disposition of the Application for an additional 15 days for good cause shown. 2. Undocketed: Open meeting minutes for review by the Commission for the regular open meetings of April 25, 2013, as prepared by Angie Elliot and April 30, 2013, as prepared by Amanda Roberts. Chairman Minier introduced Item 1. Lori Brand, Commission Counsel, recommended the Commission issue an Order granting the continuation pursuant to W.S , effective immediately. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. Deputy Chairman Russell moved to approve the minutes in Item 2 as written. Commissioner Brighton seconded the motion and Chairman Minier concurred. Open Meeting Minutes for Thursday, May 9, 2013 Page 1

8 REGULAR AGENDA 1. Docket No EA-13 (Record No ). Application of Rocky Mountain Power (RMP) to increase rates by $6.0 million to recover deferred net power costs pursuant to Tariff Schedule 95, Energy Cost Adjustment Mechanism (ECAM), and to increase rates by $15.4 million pursuant to Tariff Schedule 93, Renewable Energy Credits and Sulfur Dioxide (REC/SO2) Revenue Adjustment Mechanism. Commission to consider implementation of requested rates on an interim basis. Laura Yetter and Don Biedermann, CAS, provided a technical memo dated May 6, Davie Mosier, RMP, presented the application and provided an overview of the ECAM and the REC/SO2 adjustments. The 2013 ECAM is comprised of prior period adjustments; Commission ordered items, applied interest, and the 70/30 sharing mechanism leaving an amount owed to RMP of $18.1 million for an increase of 0.93%. Pursuant to the settlement in the 2011 general rate case and the 2012 ECAM case, RMP proposes a rate of $18.1 million spread over three years or a rate increase of $6 million. The REC/SO2, with 2012 actual sales and 2013 forecasting, results in a balance owed to RMP of $140,000, or an increase of 2.38%. In total, the rate increase is 3.30%. Mosier explained the ECAM adjustments should be lower in future years as base power costs have been moved closer to net power costs. There were no further questions or comments. John Burbridge, Commission Counsel, recommended granting the request to implement the requested rate increases on an interim basis by Order only, effective for all usage on and after May 13, 2013, with the Order to be effective immediately. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. Prepared by: Amanda Roberts Next Regular Open Meeting: Tuesday, May 21, ACCEPTED and APPROVED by the Commission on June 25, Open Meeting Minutes for Thursday, May 9, 2013 Page 2

9 WYOMING PUBLIC SERVICE COMMISSION Minutes of Regular Open Meeting Tuesday, May 21, :30 p.m. Commissioners: Deputy Chairman William F. Russell Commissioner Kara Brighton Liz Zerga, Local Counsel for Range, Silver Star, and AllWest Communications Walter Eggers, Holland and Hart, LLP, Local Counsel for Cablevision and Bresnan Ken Ceaglske, Niobrara Electric Association, Inc. (by telephone) Commission Advisory Staff (CAS): Blair Bales, John Burbridge, Lori Brand, Art Schmidt, Tom Wilson and Chris Petrie. CONSENT AGENDA 1. Docket No TT-13 (Record No ). Bresnan Broadband of Wyoming, LLC s, Petition for Confidential Treatment of Portions of 2012 Annual Report (Petition). Commission to consider and act on Petition. 2. Docket Nos TA-13, TA-13, TA-13 and TA-13 (Record No ). Notification of the Transfer of Control of AmercaTel Corporation to Matrix Telecom, Inc. Commission to consider acceptance for filing of the notice of transfer of control. 3. Docket Nos TK-13 and TK-13 (Record No ). Contract filing of Qwest Corporation d/b/a CenturyLink QC for authority to enter into an amendment to its Service Performance Interconnection Agreement with dishnet Wireline, L.L.C. f/k/a Liberty-Bell Telecom, LLC. Commission to consider and act on amendment. 4. Docket Nos PA-13 and PA-13 (Record No ). Application of Black Hills Wyoming, LLC and Black Hills Power, Inc., for a certificate of public convenience and necessity and request for waivers. Commission to consider and act on Amended Motion for Admission Pro Hac Vice of Douglas Law and Thorvald A. Nelson. 5. Docket No EA-13 (Record No ). Application of Rocky Mountain Power to increase rates by $6.0 Million to recover deferred net power costs pursuant to tariff schedule 95 energy cost adjustment mechanism and to increase rates by $15.4 Million pursuant to tariff schedule 93, Renewable Energy Credits and Sulfur Open Meeting Minutes for Tuesday, May 21, 2013 Page 1

10 Dioxide revenue adjustment mechanism. Commission to consider and act on Motions for Admission Pro Hac Vice of Robert M. Pomeroy, Jr., Michelle Brandt King and Thorvald A. Nelson. 6. Docket Nos TT-13 and TT-13 (Record No ). Notification of the Indirect Transfer of Control of dishnet Wireline, LLC, to dishnet Holding, LLC. Commission to consider and accept for filing notice of indirect transfer of control. 7. Docket No XO-10 (Record No ). Determination of telephone number prefixes primarily for cellular telephone service. Commission to determine which three digit prefixes are associated primarily with wireless service and consider authorizing report of same to national Do Not Call list. 8. Undocketed: Open meeting minutes for review by the Commission for the regular open meetings of May 2 and 7, 2013, as prepared by Amanda Roberts. Chairman Minier introduced the Consent Items. Blair Bales, Commission Counsel, recommended the Commission grant the Petitions and Motions for Items 1, 4, and 5 by Letter Order signed by Commission Counsel, Orders effective immediately. Bales recommended the Commission accept for filing the notices of the transfers of control for Items 2 and 6 by Letter Order signed by Commission Counsel, Orders effective immediately. Bales recommended the Commission approve the amendment in Item 3 by Order only, effective immediately. Bales recommended the Commission find the staffs report in Item 7 as correct and the report be submitted to the administrator of the Do Not Call list. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. Deputy Chairman Russell moved to approve the minutes in Item 8 as written. Commissioner Brighton seconded the motion and Chairman Minier concurred. REGULAR AGENDA 1. Docket No CS-13 (Record No ). Application of Niobrara Electric Association, Inc. (NEA) for authority to refinance approximately $1.25 million of outstanding RUS debt from CoBank. Commission to consider and act on application. Tom Wilson, CAS, provided a technical memo dated May 16, Ken Ceaglske, NEA, presented the application and explained the refinancing lowers the interest rate on current debt. NEA will submit a copy of the loan agreement once executed. There were no further questions or comments. Lori Brand, Commission Counsel, recommended approval of the application by Order only, effective immediately. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. 2. Docket No XO-11 (Record No ). Proposed adoption of Chapter I, Section 104 of the Commission s Procedural Rules and Special Regulations regarding updated filing procedures of applications, petitions, formal complaints, motions, and other communications. Commission to consider issuing an Order Open Meeting Minutes for Tuesday, May 21, 2013 Page 2

11 Closing Proposed Rulemaking. Lori Brand, Commission Counsel, explained the history of the docket and rulemaking process. There were no further questions or comments. Brand recommended the Commission issue an Order to withdraw the proposed changes to Chapter I, Section 104, and close the docket. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. 3. Docket No XO-13 (Record No ). Proposed adoption of Chapter V, Sections 513 and 514 of the Commission s Procedural Rules and Special Regulations regarding Eligible Telecommunications Carrier Designation and Annual Reporting and Certification. Commission to consider issuing an Order Initiating Rulemaking. Lori Brand, Commission Counsel, provided the history of the docket and rulemaking process. There were no further questions or comments. Brand recommended Commission issue an Order initiating the formal process for rulemaking for Chapter 5, Sections 513 and 514. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. 4. Docket No XO-13 (Record No ). Tariffs to Reduce Access Rates of Local Telecommunications Companies pursuant to Federal Communications Commission (FCC) Report and Order FCC in Commission to consider and act on issuance of Order establishing procedures for filings related to telecommunications companies compliance with Report and Order requirement to file revised access tariffs. Blair Bales, Commission Counsel, provided an overview of the FCC Order regarding the filing of tariffs to reduce the intrastate access rates to be at parity with interstate access rates. The tariffs will have an effective date of July 1, Liz Zerga, Local Counsel for Range, Silver Star and All West, explained this issue is complex, not all companies will be affected this year and therefore, will not need to file tariffs. Zerga requested that Order reflect this situation. There were no further questions or comments. Bales recommend the Commission issue an Order establishing procedures for filing in compliance with the FFC Report and Order to revise intrastate access tariffs as directed. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. Prepared by: Amanda Roberts Next Regular Open Meeting: Thursday, May 23, ACCEPTED and APPROVED by the Commission on June 25, Open Meeting Minutes for Tuesday, May 21, 2013 Page 3

12 WYOMING PUBLIC SERVICE COMMISSION Minutes of Regular Open Meeting Thursday, May 23, :30 p.m. Commissioners: Deputy Chairman William F. Russell Commissioner Kara Brighton Ronnie Lopez, Hirst and Applegate, LLP, Local Counsel for Wyoming Gas Company (Wyoming Gas) Cash Freeman. Hirst and Applegate, LLP, Local Counsel for Wyoming Gas Gordan Neumann, Wyoming Gas (by telephone) Janeen Capshaw, Wyoming Gas (by telephone) Mark Stege, Black Hills Power, Inc. (BHP) and Cheyenne Light Fuel and Power Co.(CLFP) Mark Lux, BHP and CLFP Wendy Moser, BHP and CLFP Sharon Fain, BHP and CLFP John Sundahl, Local Counsel for BHP and CLFP Rita Mulkern, Montana Dakota Utilities Co. (MDU) (by telephone) Commission Advisory Staff (CAS): John Burbridge, Lori Brand, Steve Mink, David Piroutek, Michelle Bohanan, Laura Yetter, Marci Norby and Chris Petrie. REGULAR AGENDA 1. Docket No GP-13 (Record No ). Application of Montana-Dakota Utilities Co. (MDU) for authority to pass on a wholesale gas cost increase of $0.195 per decatherm for residential, firm general service and an increase of $0.182 per decatherm for seasonal firm customers. Commission to consider and act on application, Petition for Confidential Treatment of Exhibit 3a, and Petition for Expedited Treatment. Brittney Brinkmeier, CAS, provided a technical memo dated May 20, Rita Mulkern, MDU Regulatory Affairs Manager, presented the application stating the increase is due to reduced storage and increased commodity costs. MDU is requesting rates of $4.97 per decatherm as of June 1, There were no further questions or comments. Steve Mink, Commission Counsel, recommended approval of the application and the granting of both petitions by Notice and Order, effective immediately. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded and Chairman Minier concurred. 2. Docket No GA-12 (Record No ). Amended application of Wyoming Gas Company to establish Wobbe Indices for the delivery points within its service territory. Commission to consider and act on application. Michelle Bohanan and Open Meeting Minutes for Thursday, May 23, 2013 Page 1

13 David Piroutek, CAS, provided a technical memo dated May 21, Ronnie Lopez, Local Counsel for Wyoming Gas, presented the amended application explaining that current spot samples are within the 6% variation of the proposed Wobbe indices. The Commission expressed concern regarding the safety of Wyoming Gas customers who may not have appliances adjusted to handle BTUs higher than 1100, specifically in Basin, Manderson and Grass Creek. Chairman Minier questioned whether Wyoming Gas was confident the equipment being used operates between BTUs. Gordon Neumann, Wyoming Gas Engineering Manager, stated appliances should be designed for that BTU range and he was not concerned someone may be using an appliance that is not within that range. Wyoming Gas has never adjusted appliances for a customer. Neumann stated on average most people replace water heaters every seven and furnaces every 20 years but that they have no way of knowing if this has been done in all homes. Janeen Capshaw, Wyoming Gas Vice-President, stated Wyoming Gas has no obligation to ensure customer s appliances are safe in their homes. John Burbridge asked Capshaw if Wyoming Gas is familiar with Commission Rule 414 which states: Change in Service. In case any substantial change is made by the utility in the composition of the gas, the pressure, or other service conditions which would affect the efficiency of operation or adjustment of appliances, the existing appliances of customers in the district affected shall be inspected and shall be readjusted if practicable by the utility for the new conditions without charge. Capshaw stated Rule 414 mandates inspections and adjustments if practicable and Wyoming Gas does not feel it is practicable because company technicians are not appliance people and they would have to hire a plumber to do the checking. There were no further questions or comments. John Burbridge, Commission Counsel, recommended approval of proposed Wobbe Indices in the amended application by Order only, effective immediately with the following conditions: A. Billing insert shall be sent to all customers in Basin and Manderson and residential customers in Grass Creek providing an option to have appliances checked and adjusted. B. Commission staff has opportunity to review billing insert prior to sending. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded and Chairman Minier concurred. 3. Docket No EA-13 (Record No ). Application of Black Hills Power, Inc. s Energy Facilities Plans (EFPs) dated June 25, 2010, and June 29, Commission to consider acceptance of EFPs for filing. 4. Docket No EA-13 (Record No ). Filing of Black Hills Power, Inc. Integrated Resource Plan (IRP) for 2011 through Commission to consider acceptance of IRP for filing. Open Meeting Minutes for Thursday, May 23, 2013 Page 2

14 5. Docket No EA-13 (Record No ). Filing of Cheyenne, Light, Fuel and Power s (CLFP) Integrated Resource Plan (IRP) for 2011 through Commission to consider acceptance of IRP for filing. Regular Agenda Items 3 through 5 were considered together. Wendy Moser, Vice President, Regulatory Services and Resource Planning for Black Hills Corporation, representing BHP and CLFP, presented the Energy Facilities Plans and the Integrated Resource Plans explaining they were filed to fulfill the Commission s requirements from a previous Order. Deputy Chairman Russell requested additional explanation regarding demand controllers as well as renewable energy standards. Chairman Miner asked about the shelf life of the plans to which Chris Kilpatrick, Director of Resource Planning and Rates for BHP and CLFP, stated there isn t a set schedule but it was between one to five years. There were no further questions or comments. Lori Brand, Commission Counsel, recommended the Energy Facilities Plans and the Integrated Resource Plans for each company be accepted for filing by Letter Orders, signed by Commission Counsel. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded, and Chairman Minier concurred. Prepared by: Amanda Roberts Next Regular Open Meeting: Thursday, May 30, ACCEPTED and APPROVED by the Commission on July, Open Meeting Minutes for Thursday, May 23, 2013 Page 3

15 WYOMING PUBLIC SERVICE COMMISSION Minutes of Regular Open Meeting Thursday, May 30, :30 p.m. Commissioners: Deputy Chairman William F. Russell Commissioner Kara Brighton Dave Mosier, Rocky Mountain Power (RMP) Jeff Bumgarner, RMP Esther Grezendanner, RMP Daniel Solander, RMP (by telephone) Jane France, Sundahl, Powers, Kapp and Martin, Local Counsel for Cheyenne Light Fuel and Power Co. (CLFP) Erin Wentz, CLFP (by telephone) Jill Reiter, CLFP (by telephone) Curtis Mock, Powder River Energy Corporation (PRECorp) (by telephone) Mike Easley, PRECorp (by telephone) Glen Rogers, PRECorp (by telephone) Austin Summers, Questar Gas Company (Questar) (by telephone) Barrie McKay, Questar (by telephone) Jenniffer Nelson Clark, Questar Corporate Counsel (by telephone) Kelly Mendenhall, Questar (by telephone) Jerrad Hammer, SourceGas Tyler Culbertson, SourceGas Stephanie Morr, SourceGas Eric Nelsen, SourceGas Deputy General Counsel, Regulatory Law Crystal McDonough, Strata Networks (Strata) Bert Potts, Strata Greg Sopkin, Counsel for Strata Bruce Asay, Associated Legal Group, LLC, Local Counsel for Union Telephone Company (Union) Chris Reno, Union Commission Advisory Staff (CAS): Blair Bales, Lori Brand, John Burbridge, Marci Norby, Luy Luong, David Piroutek, Steve Mink, Laura Yetter, Jess Bottom, Tom Wilson, Michelle Bohanan and Chris Petrie CONSENT AGENDA 1. Docket No TI-09 (Record No ). Investigation, upon the Commission s own motion, regarding issues stemming from Qwest Corporation's final audit report on its handling of federal universal service funds (FUSF). Commission to consider reopening the record to request data on total FUSF credits given to customers in Open Meeting Minutes for Thursday, May 30, 2013 Page 1

16 2. Docket No: RA-12 (Record No ). Application of Uintah Basin Electronic Telecommunications, Inc. d/b/a Strata Networks (Strata). Commission to consider and act on Strata s Motion for Admission Pro Hac Vice of Gregory E. Sopkin (Motion). 3. Docket No TK-13; TK-13 (Record No ). Contract Filing of Qwest Corporation d/b/a/ CenturyLink QC of its Amendment Number Two the Local Services Platform (CLSP) Agreement with DishNet Wireline, L.L.C. f/k/a Liberty-Bell Telecom, L.L.C. Commission to consider and act on filing. 4. Docket Nos TK-13 and RK-13 (Record No ). Contract filing of Qwest Corporation d/b/a CenturyLink QC for authority to enter into an ICC amendment No. 1 to its Interconnection Agreement with Verizon Wireless. Commission to consider and act on contract filing. 5. Docket Nos TK-13 and TK-13 (Record No ). Contract filing of Qwest Corporation d/b/a CenturyLink QC for authority to enter into an unbundled network elements, ancillary services and resale of telecommunications services Interconnection Agreement with New Horizons Communications Corporations. Commission to consider and act on contract filing. Chairman Minier introduced the Consent Items. Blair Bales, Commission Counsel, recommended the Commission re-open the record in Item 1 with a Letter Order, signed by Commission Counsel, effective immediately. Bales recommended the Commission grant the Motion for Item 2 by Order only, effective immediately. Bales recommended the Commission issue a letter to the appropriate parties signed by Commission Counsel for Item 3. Bales recommended the Commission approve the applications in Items 4 and 5 by Order only, effective immediately. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. REGULAR AGENDA 1. Docket No GP-13 (Record No ). Application of Cheyenne Light, Fuel and Power Company (CLFP) for authority to pass on a wholesale gas cost increase of $ per dekatherm for firm and interruptible rate classes beginning June 1, Commission to consider and act on application and Petition for Confidential Treatment of Attachment A to Exhibit 5 and Schedules E, F, G, H, I, J, and K. Jess Bottom, CAS, provided a technical memo dated May 22, Jill Reiter, CLFP Rate Analyst, presented the application and Petition, explaining the increase is due to an increase in the projected and deferred gas costs. There were no further questions or comments. Lori Brand, Commission Counsel, recommended approval of the application by Notice and Order, effective for usage on and after June 1, 2013, and recommended the granting of the Petitions by Notice and Order, all effective immediately. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. 2. Docket No ET-13 (Record No ). Application of Rocky Mountain Power (RMP) for authority to adjust the Category 2 Rate Surcharge in Tariff Schedule 191, Customer Efficiency Service Charge. Commission to consider and act on application. Luy Luong, CAS, provided a technical memo dated May 23, Dave Mosier, RMP s Wyoming Regulatory Affairs Manager, presented the application explaining the history behind the under recovery in the Category 2, Small Commercial account. The requested increase will not bring account into balance in the near term but will reduce the amount by approximately half by the end of 2013 at which time the account will be reassessed to determine if rates will need to be changed to bring the account into balance by the end of RMP requests a rate surcharge increase from 0.9% to 2.2%, effective June 1, Customers will see a 1.3% increase in their overall bill. Mr. Mosier further explained the Category 2 account was under collected due to higher customer activity and participation and growth in demand side management (DSM) projects Open Meeting Minutes for Thursday, May 30, 2013 Page 2

17 than anticipated when the rate was first effective. Jeff Bumgarner, RMP Director of DSM, explained the breakdown of the costs by category stating much of the costs are paid to third party engineers. He stated RMP could make program changes to slow activity, however, in 2012 every dollar spent resulted in a return of $3.46 to customers. There were no further questions or comments. Lori Brand, Commission Counsel, recommended approval of the application by Order only, effective immediately. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. 3. Docket No CT-12 (Record No ). Amended application of Powder River Energy Corporation (PRECorp) for authority to revise its rules and regulations regarding line extensions. Commission to consider and act on the application. Jess Bottom, CAS, provided a technical memo dated May 23, Curtis Mock, PRECorp Manager of Finance and Planning, presented the amended application explaining PRECorp has encountered situations where members subject to a different line cost sharing method are in a position to share costs. The tariffs in effect do not provide a remedy for these conflicts. The proposed revisions and additions to the tariffs contained in this filing are intended to do so. There were no further comments or questions. Steve Mink, Commission Counsel, recommend approval of the amended application by Notice and Order only, effective immediately. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. 4. Docket No GP-13 (Record No ). Application of Questar Gas Company (QGC) for authority to pass on a wholesale gas cost increase of $ per dekatherm for all firm retail rate classes. Commission to consider and act on application. Laura Yetter, CAS, provided a technical memo dated May 24, Austin Summers, Questar Supervisor of Regulatory Affairs, presented the application explaining the increase is due to projected gas costs and the proposal to implement a small commodity increase. Summers explained corrections to Exhibit 1.10 regarding the gas supply information. The corrections do not change rates and are only informative. There were no further comments or questions. Lori Brand, Commission Counsel, recommended approval of application by Notice and Order, effective for usage on and after June 1, 2013, with the Order effective immediately. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. 5. Docket No GA-12 (Record No ). Application of Questar Gas Company (QGC) for approval to update Wobbe indices for the company s Wyoming receipt points and establish receipt points for Lyman, the Rock Springs airport, Kemmerer/Diamondville, and Sweetwater County. Commission to consider and act on application. Michelle Bohanan and Dave Piroutek, CAS, provided a technical memo dated May 2, Kelly Mendenhall, Questar Director of Regulatory Affairs, presented the application explaining Questar has 12 receipt points and some do not have established Wobbe indices. All variances are within the 6% standard. The areas without a current established Wobbe index have been managed at the current levels since 2002, and no appliance setting issues are anticipated. Mendenhall represented Questar would still report actual Wobbe values. There were no further comments or questions. Steve Mink, Commission Counsel, recommend approval of the application by Order only, effective immediately. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. 6. Docket No GA-13 (Record No ). Application of SourceGas Distribution, LLC for an increase in the distribution charge of $ per therm for small general service customers and an increase in the distribution charge of $ per therm for medium general service customers. Commission to consider and act on application. Michelle Bohanan, CAS, provided at technical memo dated May 23, Jerrad Hammer, SourceGas Manager of Regulatory Affairs, presented the application which is the second annual filing for the distribution charge (DUPCA). He stated SourceGas proposes to change the rider for medium general service customers and proposes a credit Open Meeting Minutes for Thursday, May 30, 2013 Page 3

18 to small general service customers. The rate increase for medium general service customers is intended to collect a shortfall of approximately $120,000. The credit to small general service customers is to refund approximately a $90,000 over-collection. SourceGas reported that they will be within about $10,000 dollars of the target at the end of the year. Hammer noted the current tariffs do not contain the concept of a balancing account. He stated SourceGas is willing to propose a new tariff to implement a balancing account. Eric Nelsen, SourceGas Deputy General Counsel, Regulatory Law, stated any residual balance would be part of discussion regarding a new balancing account tariff. John Burbridge, Commission Counsel, suggested SourceGas meet with Commission staff no later than June 21, 2013, to develop a mechanism to track and true up any excess or deficient revenue remaining at the end of each DUPCA collection period. This would establish a balancing account for both small and medium general service customers. SourceGas would submit the proposal by July 12, 2013, and staff would review and comment by July 26, This would allow ample time to file an application in August. Hammer stated the proposal is reasonable. There were no further questions or comments. John Burbridge, Commission Counsel, recommended approval of the application effective for usage on and after June 1, 2013, as well as adopting the schedule for the filing of amended tariffs no later than August 9, 2013, by Order only, effective immediately. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. 7. Docket No GA-13 (Record No ). Application of SourceGas Distribution LLC to revise the Fuel and Lost and Unaccounted For (FL&U) gas percentages in the Casper, Gillette and Torrington Divisions. Commission to consider and act on application. Jess Bottom, CAS, provided a technical memo dated May 22, Jerrad Hammer, SourceGas Manager of Regulatory Affairs, presented the application which is the annual filing to adjust FL&U for gas percentages. SourceGas proposes a Casper division mainline fuel rate of 0.526%, a FL&U for the Choice program and transmission customers of 2.684%, and for the complete Gillette division, a FL&U rate of 0.577%, with rates effective June 1, Lori Brand, Commission Counsel, recommended approval of the application by Order only, effective for usage on and after June 1, 2013, with the Order effective immediately. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. 8. Docket No GT-13 (Record No ). Application of SourceGas Distribution LLC for authority to exclude the pass-on rate [regulated rate] option from the annual fuel and lost and unaccounted for (FL&U) adjustment in the Gillette and Torrington divisions. Commission to consider and act on application. Jess Bottom and Michelle Bohanan, CAS, provided a technical memo dated May 9, Jerrad Hammer, SourceGas Manager of Regulatory Affairs, presented the application explaining the adjustments from previous pass on filings have been excluded and SourceGas would like to exclude them in the future. The pass on for FL&U cost in 2012 was charged and without an adjustment to the tariff it cannot be recovered. He stated SourceGas requests a waiver so adjustments may be made in 2013 without re-opening the 2012 books. The adjustment will net to zero. There were no further questions or comments. Steve Mink, Commission Counsel, recommended approval of application and waiver of SourceGas tariff by Order only, effective immediately. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. 9. Docket No GP-13 (Record No ). Application of SourceGas Distribution LLC (Torrington Division) for an increase in rates of $ per therm in its transportation rate adjustment (TRA) rate component to be effective June 1, Commission to consider and act on application. Tom Wilson, CAS, provided a technical memo dated May 24, Jerrad Hammer, SourceGas Manager of Regulatory Affairs, presented the application explaining it is the regular annual filing for the contract costs assigned to SourceGas Torrington division. SourceGas proposes a TRA base rate of $.0323 per therm and an adjustment to the surcharge component of the TRA rate of $.0060 per therm for a total TRA rate of $.0383 per therm. There were no further comments or questions. Blair Bales, Commission Counsel, recommended approval of the application by Notice and Order, effective for Open Meeting Minutes for Thursday, May 30, 2013 Page 4

19 usage on and after June 1, 2013, with the Order effective immediately. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. 10. Docket No GP-13 (Record No ). Application of SourceGas Distribution, LLC (Casper Division), for authority to pass on through its commodity balancing account an increase of $ per therm to its pass-on rate [Regulated Rate] customers. Commission to consider and act on application and Petition for Confidential Treatment of Exhibit D and Exhibit E (Petition). Luy Luong, CAS, provided a technical memo dated May 1, Jerrad Hammer, SourceGas Manager of Regulatory Affairs, presented the application and Petitions explaining the increase is due to an adjustment to the working gas storage gas component of the tariff and commodity costs. Hammer also requested the Petition be approved. There were no further questions or comments. John Burbridge, Commission Counsel, recommended approval of the application by Notice and Order effective for usage on and after June 1, 2013, and recommended granting the Petition with the Order effective immediately. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. 11. Docket No GP-13 (Record No ). Application of SourceGas Distribution LLC (Gillette Division), for authority to pass-on through its Commodity Balancing Account an increase of $ per therm to its pass-on rate (regulated rate) option customers. Commission to consider and act on application and Petition for Confidential Treatment of Exhibits D and E (Petition). Jess Bottom, CAS, provided a technical memo dated May1, Jerrad Hammer, SourceGas Manager of Regulatory Affairs, presented the application and Petition explaining the increase is a combination of an increase in commodity costs offset by a decrease in gas storage costs. Hammer also requested the Petition be approved. There were no further questions or comments. Steve Mink, Commission Counsel, recommended approval of the application and Petition by Notice and Order, effective for usage on and after June 1, 2013, with the Order effective immediately. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. 12. Docket No GP-13 (Record No ). Application of SourceGas Distribution LLC (Torrington Division) for authority to pass on through its Commodity Balancing Account an increase of $ per therm to its pass-on rate [regulated rate] customers. Commission to consider and act on application and Petition for Confidential Treatment of Exhibits D and E (Petition). Tom Wilson, CAS, provided a technical memo dated May 1, Jerrad Hammer, SourceGas Manager of Regulatory Affairs, of SourceGas presented the application and Petition explaining the increase is a net rate comprised of an increase in commodity costs and a credit to refund an over collection in the balancing account. Hammer also requested the Petition be approved. There were no further questions or comments. Lori Brand, Commission Counsel, recommended approval of the application and Petition by Notice and Order, effective for usage on and after June 1, 2013, with the Order effective immediately. Deputy Chairman Russell moved to act as recommended, Commissioner Brighton seconded the motion and Chairman Minier concurred. 13. Docket No: RA-12 (Record No ). Application of Uintah Basin Electronic Telecommunications, Inc. d/b/a Strata Networks (Strata). Commission to consider and act on: a. Union Telephone Company s (Union) Motion of Union Telephone Company for Hearing (Motion); b. Strata s Response to Union s Motion (Response), and c. Strata s application and Petition for Confidential Treatment of Exhibit D (Petition). Tom Wilson, CAS, provided a technical memo dated May 22, Bruce Asay, local counsel for Union, presented Union s Motion for a hearing. Mr. Asay argued that, because Union is the sole eligible Open Meeting Minutes for Thursday, May 30, 2013 Page 5