South Dakota Public Utilities Commission Meeting
June 10, 2010, at 1:00 P.M. CDT
Room 414, Capitol Building, Pierre, South Dakota AND
Room 155, Technology Center, Mitchell Technical Institute, 1800 E. Spruce St.,
Mitchell, South Dakota
NOTE: If you wish to join this meeting by conference call, please contact the Commission at 605-773-3201 by 5:00 p.m. CDT on Wednesday June 9, 2010. Lines are limited and are given out on a first come, first served basis, subject to possible reassignment to accommodate persons who must appear in a proceeding. Ultimately, if you wish to participate in the Commission Meeting and a line is not available you may have to appear in person.
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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 AD HOC
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)
On September 30, 2009, Black Hills Power, Inc. (BHP) filed an application for approval to increase rates for electric service to customers in its South Dakota service territory. BHP states that it proposes to increase rates by approximately $32 million annually or approximately 26.6% based on BHP's test year ending June 30, 2009. The company states that a typical residential electric customer using 600 kWh per month would see a net increase of $17.99 per month. The proposed rates may potentially affect approximately 64,100 customers in BHP's service territory. At its October 20, 2009, meeting, the Commission suspended the imposition of the tariff for 180 days beyond September 30, 2009, and assessed a filing fee for actual expenses not to exceed $100,000. On November 5, 2009, the Commission received a Petition to Intervene from Countertops, Inc., d/b/a Dakota Panel South Dakota, GCC Dacotah, Inc., Rushmore Forest Products, Inc., Sanford Underground Laboratory and Spearfish Forest Products, Inc. (collectively, Black Hills Industrial Intervenors). On November 19, 2009, the Commission received a Petition to Intervene from Lilias Jarding, Bobbie Handley, Carla Kock, and the South Dakota Peace and Justice Center (collectively Residential Consumers Coalition). On November 20, 2009, the Commission received a Petition to Intervene and join with Black Hills Industrial Intervenors from Rapid City Regional Hospital, Inc. (Regional Hospital). At its November 24, 2009, meeting the Commission granted intervention to all petitioning parties. On December 21, 2009, Chesapeake Regulatory Consultants, Inc. submitted a Report and Consulting Services Proposal. At its January 5, 2010, meeting the Commission authorized its Executive Director to hire and enter into contracts with consultants. On January 12, 2010, Slater Consulting submitted a Proposal for the South Dakota PUC Staff to evaluate the 2007 Black Hills Integrated Resource Plan. On January 14, 2010, Commission Staff requested an additional $25,000 for expenses related to the review of an integrated resource plan. At its regularly scheduled meeting of January 19, 2010, the Commission considered this matter and approved the additional $25,000 filing fee assessment. On February 4, 2010, the Commission issued its Order for Continuance of Procedural Schedule and Hearing. On March 1, 2010, BHP submitted a request for authority pursuant to SDCL 49-34A-17 to implement an interim rate increase on April 1, 2010, until the Commission makes its final determination in this matter. In lieu of implementing its proposed rates as SDCL 49-34A-17 would allow without Commission approval, BHP requested authorization to implement an interim rate that would reduce revenue recovery on an annualized basis from approximately $32 million to approximately $24 million and would reduce the percentage increase in rates during the interim period from 26.6% to approximately 20%. At its March 9, 2010 Commission meeting the interim rate was approved. On May 14, 2010, a Joint Motion for Approval of Settlement Stipulation and Settlement Stipulation were filed by Commission Staff and BHP. On May 19, 2010, a Brief in Opposition to Joint Motion for Approval of Settlement Stipulation was filed by the Residential Consumer Coalition. On May 25, 2010, Chairman Johnson filed a letter requesting an Ad Hoc Commission meeting on May 27, 2010, to consider procedural matters. On May 25, 2010, BHP filed a Brief in Reply to Opposition to Joint Motion for Approval of Settlement Stipulation, filed on behalf of the three residential intervenors in this docket and the South Dakota Peace and Justice Center. On May 26, 2010, Staff filed a letter as a response to the Residential Consumers Coalition's Brief in Opposition to Joint Motion for Approval of Settlement Stipulation and· BHP Brief in Reply to Opposition to Joint Motion for Approval of Settlement Stipulation. On May 28th, a Joint Motion for Approval of Settlement Stipulation and Confidential Settlement Agreement were filed by BHP and Black Hills Industrial Intervenors. At its regularly scheduled meeting on June 1, 2010, the Commission considered the issues raised in Chairman Johnson's letter. The Commission voted unanimously that the issue to be determined at the hearing commencing on June 28, 2010, shall be whether the rates, terms and conditions set forth in the Settlement Stipulation are just and reasonable in accordance with the standards set forth in SDCL 49-34A-8. On June 1, 2010, Chesapeake Regulatory Consultants, Inc. filed a request to amend their maximum contract amount. In anticipation of the June 28-July 16, 2010, hearing, staff requests the Commission to authorize the Executive Director to amend the contracts with Chesapeake Regulatory Consultants, Inc. in the amount of $90,228 and Slater Consulting in the amount of $25,453.
TODAY, shall the Commission approve the consultant contract amendment with Chesapeake Regulatory Consultants, Inc. in the amount of $90,228? AND, shall the Commission approve the consultant contract amendment with Slater Consulting in the amount of $25,453? AND, shall the Commission grant the Joint Motion of BHP and Black Hills Industrial Intervenors? Or, how shall the Commission proceed?
Items for Commission Discussion
/S/ Cindy Kemnitz .
June 3, 2010