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South Dakota Public Utilities Commission Meeting

Thursday, October 5, 2006, at 2:00 P.M.

Lewis & Clark Rural Water Board Room

401 E. 8th Street

Sioux Falls, South Dakota

NOTE: If you wish to join this meeting by conference call, please contact the Commission at 605-773-3201 by 1:30 p.m. on October 5, 2006. The lines are limited and are given out on first come/first serve basis. Ultimately, if you wish to participate in the Commission Meeting and a line is not available you may have to appear in person.

NOTE: To listen to the Commission Meeting live please go to the PUC's Web site www.puc.sd.gov and click on the LIVE button on the home page. The Commission meetings are archived on the PUC's Web site under the Commission Actions tab and then click on the LISTEN button on the page.

NOTE: Notice is further given to persons with disabilities that this Commission meeting is being held in a physically accessible place. If you have special needs, please notify the Commission and we will make all necessary arrangements.

AGENDA OF THE AD HOC COMMISSION MEETING

Electricity

1. EL06-016 In the Matter of the Petition for Electrical Service by Redfield Energy, LLC to have NorthWestern Corporation d/b/a NorthWestern Energy Assigned as its Electric Provider in the Service Area of Northern Electric Cooperative, Inc. (Staff Analysts: Dave Jacobson/Nathan Solem, Staff Attorney: Karen Cremer)

Petition filed by Redfield Energy, LLC to be provided electric service by NorthWestern Energy outside of NorthWestern Energy's established service territory pursuant to SDCL 49-34A-56. The petition states that Redfield Energy believes NorthWestern can furnish electric service to meet the customer's needs consistent with the factors of SDCL49-34A-56 and that the customer has a strong preference to be served by NorthWestern Energy. The customer's facility is to be located in the existing territory of Northern Electric Cooperative, Inc. On June 13, 2006, Northern Electric Cooperative filed a Petition for Intervention. Intervention was granted to Northern Electric at the July 11, 2006, commission meeting. The parties have entered into a settlement agreement.

TODAY, shall the Commission Approve the Joint Request for an Electric Service Rights Exception?

2. EL06-021 In the Matter of the Filing by NorthWestern Corporation d/b/a NorthWestern Energy for Approval of a Contract with Deviations with Redfield Ethanol Plant. (Staff Analyst: Dave Jacobson, Staff Attorney: Karen Cremer)

Application by NorthWestern Energy for approval of a contract with deviations to serve the Redfield Ethanol Plant. The proposed contract would offer a discount from Rate 34. NorthWestern is proposing to serve Redfield Ethanol Plant pursuant to SDCL49-34A-56 which is being considered by the Commission in Docket EL06-016.

TODAY, shall the Commission Approve the Contract with Deviations? AND, shall the Commission Approve the Tariff Revisions?

Administration

1. In the Matter of FERC Docket EC06-127-000 (General Counsel: John Smith)

On April 25, 2006, NorthWestern Corporation d/b/a NorthWestern Energy (NorthWestern) announced that it had entered into an Agreement and Plan of Merger with Babcock & Brown Infrastructure Limited, an Australian public company, and certain of its subsidiaries (BBIL) pursuant to which BBIL would acquire ownership of NorthWestern. On June 7, 2006, NorthWestern and its subsidiaries and BBIL (Applicants) filed with the Federal Energy Regulatory Commission (FERC) an Application for Authorization under Section 203 of the Federal Power Act and Request for Expedited Consideration, FERC Docket EC06-127-000. On June 28, 2006, the Commission filed a Notice of Intervention and Request for Full 60 Day Time Period for Filing of Protest in FERC Docket EC06-127-000. On July 13, 2006, Applicants filed a Joint Answer and Supplement in which they responded to the concerns raised by the Commission in its filing. On August 14, 2006, Applicants and the Commission filed a Joint Motion to Facilitate Settlement Discussions by Permitting a Conditional, Limited Extension of Time for File a Protest in FERC Docket EC06-127-000. Since that time, Commission Staff have been engaged in settlement discussions with Applicants, and Applicants and Staff have prepared a Settlement Agreement for consideration by the Commission that would resolve the issues between the Commission and Applicants in FERC Docket EC06-127-000.

 

TODAY, Shall the Commission Approve the Proposed Settlement Agreement Between Applicants and the Commission Involving FERC Docket EC06-127-000? AND, Shall the Commission Authorize the Executive Director and the General Counsel to Execute the Settlement Agreement on Behalf of the Commission?

______________________

Heather K. Forney

Deputy Executive Director

heather.forney@state.sd.us

October 4, 2006