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South Dakota Public Utilities Commission Meeting
October 16, 2018, at 9:30 A.M. CDT
Room 413, Capitol Building
Pierre, South Dakota

NOTE:  Docket participants who wish to join this meeting by conference call, should contact the Commission at 605-773-3201 by 5:00 p.m. CDT on Monday, October 15, 2018, to reserve a phone line. Lines are limited and assigned 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 docket discussion at 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 website www.puc.sd.gov and click on the LIVE link on the home page. The Commission requests persons who will only be listening to proceedings and not actively appearing in a case listen via the webcast to free phone lines for those who have to appear.  The Commission meetings are archived on the PUC’s website under the Commission Actions tab. Click on “Commission Meeting Archives,” to access the recordings.

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 COMMISSION MEETING

Administration

1.     Approval of the Minutes of the Commission Meeting Held on September 18, 2018, and Ad Hoc Meeting Held on September 21, 2018 (Staff: Joy Lashley)

Consumer Reports

1.     Status Report on Consumer Utility Inquiries and Complaints Received by the Commission (Consumer Affairs: Deb Gregg)

1.     EL18-037     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between City of Hawarden and Southeastern Electric Cooperative, Inc. (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

On September 13, 2018, Commission staff (Staff) filed an Electric Service Territory Boundary Agreement between the City of Hawarden, IA and Southeastern Electric Cooperative, Inc. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission staff asks for approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

     TODAY, shall the Commission approve the proposed electric service territory boundary agreement?

2.     EL18-039     In the Matter of the Application of Flying Cow Wind, LLC for a Facility Permit to Construct a 345 kV Transmission Line and Associated Facilities in Deuel County (Staff Analysts: Darren Kearney, Jon Thurber; Staff Attorney: Amanda Reiss)

On September 27, 2018, the Commission received an Application for a facility permit from Flying Cow Wind, LLC (FCW), a wholly-owned subsidiary of Roaring Fork Wind, LLC, to construct an approximately 10.42 mile 345 kV overhead transmission line, a substation, and associated facilities (Project) in Deuel County, South Dakota. The starting point for the Project is proposed to be located in Government Lot 2 of Section 34 in Township 114N, Range 47W, Norden Township. The ending point will be in the NW ¼ of Section 22, Township 113N, Range 48 West, Scandinavia Township. The Project is expected to be in service by the third quarter of 2020. FCW estimates the total construction cost of the proposed Project to be approximately $19.85 million.

     TODAY, shall the Commission assess a filing fee not to exceed $49,625 with an initial deposit of $8,000? And shall the Commission authorize the executive director to enter into necessary consulting contracts?

3.     EL18-040     In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of its 2019 Infrastructure Rider Project Eligibility and Factor Update (Staff Analyst: Eric Paulson; Staff Attorney: Amanda Reiss)

On October 1, 2018, the Commission received a Petition by Northern States Power Company dba Xcel Energy (Xcel) for approval of its 2019 Infrastructure Rider Project Eligibility and Factor Update. Xcel requests approval of project eligibility for one project included in the Settlement Agreement Exhibit C not already included in the rider, project eligibility for six additional projects consistent with SDCL 49-34A-73 and the Settlement Stipulation in Docket GE17-003, the Infrastructure Rider Tracker Report and true-up for the 2018 revenue requirements, 2019 Infrastructure Rider revenue requirements of $14.6 million, an updated Infrastructure Rider Adjustment Factor of $0.006853, proposed revisions to the Infrastructure Rider tariff sheet, and proposed customer notice. Xcel proposes a January 1, 2019, effective date. Xcel states the average bill impact for a residential customer using 750 kWh per month will be an estimated $5.14, a $1.25 increase over the 2018 rate.

     TODAY, shall the Commission assess a filing fee in the amount of up to $250,000 to account for actual expenses incurred in review of this filing commencing from the filing date?

4.     EL18-041     In the Matter of the Joint Request for Service Rights Exception between NorthWestern Corporation dba NorthWestern Energy and Central Electric Cooperative, Inc. (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

On October 4, 2018, the Commission received a Petition for Approval and a Consent and Agreement for Electric Service between Central Electric Cooperative, Inc. (Central Electric) and NorthWestern Corporation dba NorthWestern Energy (NorthWestern) to allow Central Electric to provide energy supply to two electric wind turbines within the north one-half of Section 17 in Township 103 North, Range 66 West, Aurora County, located in the service territory of NorthWestern. ConEdison Development, owner of the wind turbines, supports the agreement.

     TODAY, shall the Commission approve the requested service rights exception between Central Electric and NorthWestern?

Gas & Electric

1.     GE17-003     In the Matter of Staff’s Request to Investigate the Effects of the Tax Cuts and Jobs Act on South Dakota Utilities (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen; Staff Attorneys: Kristen Edwards, Amanda Reiss)

On December 21, 2017, the Commission received a filing from Commission staff (Staff) requesting a docket be opened to investigate the Tax Cuts and Jobs Act on South Dakota utilities. Staff also filed a Motion Requesting Order Requiring Comments and Securing Tax Effects for Customers as of January 1, 2018 (Motion). In the Motion, staff requested the Commission investigate the effect the Tax Cuts and Jobs Act (Act) will have on South Dakota utilities and requested the Commission issue an order requiring utilities to submit comments on the effect the Act will have on each utility. Additionally, staff requested the Commission issue an order that any adjustment to rates due to the Act will be effective on January 1, 2018. On December 29, 2017, the Commission issued an Order Requiring Comments; Order Requiring Rates in Effect January 1, 2018, are Subject to Refund; Order Granting Intervention. On February 1, 2018, Montana-Dakota Utilities Co., a Division of MDU Resources Group (Montana-Dakota) submitted initial comments in the Docket. On September 28, 2018, staff and Montana-Dakota filed a Joint Motion for Approval of Settlement Stipulation and Settlement Stipulation. On October 5, 2018, staff filed its Memorandum Supporting Settlement Stipulation.

        TODAY, shall the Commission grant the Joint Motion for Approval of Settlement Stipulation and approve the terms and conditions stipulated therein? OR, how shall the Commission proceed?

Grain Warehouse

1.     GW18-002     In the Matter of the Stipulation and Settlement Agreement Between McIntosh-Watauga Equity and PUC Staff (Grain Warehouse Manager: Cody Chambliss; Staff Attorneys: Amanda Reiss; Kristen Edwards)

On September 17, 2018, staff filed a Motion for Approval of Settlement Agreement. In the Stipulation and Settlement Agreement, both Commission staff (Staff) and McIntosh-Watauga Equity (Company) agree that the Company did not timely renew its grain buyer and grain warehouse licenses and subsequently took in sixty loads of grain without the required licenses. Staff and the Company have agreed to a $2,000 fine.

     TODAY, shall the Commission approve the Settlement Agreement? OR, how shall the Commission proceed? 

Telecommunications

1.     TC18-057     In the Matter of the Application of Crown Castle Fiber LLC for a Certificate of Authority to Provide Local Exchange and Interexchange Long Distance Services in South Dakota (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)

On September 10, 2018, the Commission received an application from Crown Castle Fiber, LLC for a Certificate of Authority to Provide Local Exchange and Interexchange Long Distance Services in South Dakota. On September 28, 2018, the South Dakota Telecommunications Association (SDTA) filed a Petition to Intervene in the Docket. On October 9, 2018, Crown Castle Fiber responded to staff’s data request. 

     TODAY, shall the Commission grant SDTA’s Petition to Intervene in the Docket?

Items for Commission Discussion

Public Comment

Individuals who wish to make public comments to the commission may do so in person during this time. All who offer public comment are requested to sign in at the commission meeting. Time limits for comments may be determined at the discretion of the chairperson.

Announcements

  1. The meeting with Xcel Energy that was scheduled for October 16, 2018, has been canceled.

  2. Commissioners and staff will meet with representatives of Montana-Dakota Utilities Co. on Friday, October 26, 2018, at 9:00 a.m. CDT in Room 413 at the State Capitol, Pierre, South Dakota. The agenda is to discuss a company informational update.

  3. The next regular commission meeting will be Wednesday, October 31, 2018, at 1:30 p.m. CDT in Room 413 at the State Capitol Building, Pierre, South Dakota.

  4. Commission meetings are scheduled for November 15 and 27, 2018.

/s/Cindy Kemnitz     .
Cindy Kemnitz
Finance Manager
PUC Email
October 10, 2018