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South Dakota Public Utilities Commission Meeting
March 1, 2019, at 9:30 A.M. CST
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. CST on Thursday, February 28, 2019, 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

Consumer Reports

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

Electric

1.     EL18-021     In the Matter of the Application of Otter Tail Power Company for Authority to Increase Its Electric Rates (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen, Eric Paulson, Joseph Rezac, Lorena Reichert; Staff Attorney: Kristen Edwards)

On April 20, 2018, the Commission received an application by Otter Tail Power Company (Otter Tail) for approval to increase rates for electric service in its South Dakota service territory. Otter Tail proposed a two-step increase to base rates, with the first step increasing revenues by a net $3,358,547 annually or 10.10 percent based on Otter Tail’s 2017 test year. Otter Tail states a typical residential customer will see an increase of $11.29 per month under the rate design proposed by the company. The second step proposed is an additional $629,107, or 1.72 percent increase to revenues, effective January 1, 2020. Otter Tail states a typical residential customer will see an additional increase of $1.75 per month as a result of the step increase. On May 16, 2018, the Commission issued an Order Suspending Operation of Proposed Rates; Order Assessing Filing Fee; Order Authorizing Consulting Contracts. The proposed rates may potentially affect approximately 11,700 customers in Otter Tail’s South Dakota service territory. June 1, 2018, was noticed as the intervention deadline. On June 28, 2018, Valley Queen Cheese Factory, Inc. filed a Petition to Intervene which was granted by the Commission on July 16, 2018. On October 18, 2018, Otter Tail implemented interim rates pursuant to 49-34A-17. On November 1, 2018, Otter Tail filed supplemental direct testimony and an errata filing. On February 5, 2019, Otter Tail and Commission staff (staff) filed a Stipulation for Procedural Schedule. On February 7, 2019, the Commission issued a Scheduling Order. On February 19, 2019, staff and Otter Tail filed a Joint Motion for Approval of Settlement Stipulation and Settlement Stipulation resolving all issues except for return on equity. On February 21, 2019, staff filed its Memorandum. 

     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?

2.     EL18-051     In the Matter of the Joint Request for an Electric Service Boundary Change between Clay Union Electric Corporation and City of Vermillion (Staff Analyst: Lorena Reichert; Staff Attorney: Kristen Edwards)

On November 29, 2018, the Commission received a memorandum of understanding between Clay Union Electric Corporation and the City of Vermillion regarding a non-annexation boundary change to the agreement from EL14-015. On February 13, 2019, the companies filed the accompanying legal description and maps.

     TODAY, shall the Commission approve the service territory boundary change?

3.     EL18-053     In the Matter of the Application of Deuel Harvest Wind Energy LLC for a Permit of a Wind Energy Facility and a 345-kV Transmission Line in Deuel County (Staff Analysts: Darren Kearney, Jon Thurber; Staff Attorneys: Kristen Edwards, Amanda Reiss)

On November 30, 2018, Deuel Harvest Wind Energy LLC (Applicant) filed an application to construct the Deuel Harvest North Wind Farm and 345 kV transmission line (Project), a wind energy facility located on approximately 48,730 acres of land in Deuel County, South Dakota, in the townships of Portland, Lowe, Altamont, Glenwood, and Herrick, South Dakota. The total installed capacity of the Project would not exceed 310.1 MW nameplate capacity. The proposed project includes up to 112 wind turbine generators, access roads to turbines and associated facilities, underground electrical power collector lines connecting the turbines to the collection substation, an operation and maintenance facility, and temporary construction areas, including crane paths, public road improvements, a laydown yard, and a concrete batch plant(s) (as needed), and four permanent meteorological towers. The Project would interconnect to the regional electric grid along the Big Stone to Brookings transmission line via a new substation located in Glenwood Township. The Project will result in the installation of approximately 150-feet of overhead transmission line. A public input hearing was held on January 24, 2019, in Clear Lake, South Dakota. According to the application, Applicant is actively marketing the sale of electricity from the Project to third parties. Several persons were granted party status in this proceeding on February 5, 2019. 

     TODAY, shall the Commission grant withdrawal of party status to those who have filed to withdraw their party status?

4.     EL18-060     In the Matter of the Filing by Black Hills Power, Inc. dba Black Hills Energy for Approval of a Renewable Ready Service Tariff and Tariff Revisions to Its Energy Cost Adjustment (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen; Staff Attorney: Kristen Edwards)

On December 17, 2018, Black Hills Power, Inc. dba Black Hills Energy (BHP) filed an application to implement a new renewable ready service tariff and associated revisions to its energy cost adjustment tariff. The new tariff would serve commercial retail customers with an aggregate usage of 300,000 kWh or more per year and governmental accounts desiring renewable energy. BHP states this application is made in response to requests and interest expressed by large customers within the BHP service area. BHP states the tariff is designed to provide renewable energy to BHP customers with minimal impact to non-subscribing customers. BHP requests an effective date of July 1, 2019. January 4, 2019, was noticed as the intervention deadline. On February 11, 2019, Walmart, Inc. filed a Petition to Intervene.

     TODAY, shall the Commission grant intervention to any parties that may have filed? 

5.     EL19-005     In the Matter of the Filing by Otter Tail Power Company for Approval of Tariff Revisions to its Rates for Small Power Production and Cogeneration (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)

On February 1, 2019, the Commission received a filing from Otter Tail Power Company (Otter Tail). This filing proposes updates to Otter Tail’s Small Power Producer Riders, Sections 12.01, 12.02 and 12.03 in Otter Tails’s tariff book. In the listed sections, Otter Tail proposes to update the energy and capacity payments as well as the renewable energy credit values. These payments are made to qualifying facilities within the Otter Tail service area. Otter Tail requests an effective date of April 1, 2019.

     TODAY, shall the Commission approve the proposed revisions to Otter Tail Power Company’s rates for Small Power Production and Cogeneration for Qualifying Facilities?

6.     EL19-008     In the Matter of the Filing by MidAmerican Energy Company for Approval of Tariff Revisions to Its 2018 Transmission Cost Recovery Reconciliation and 2019 Transmission Cost Recovery Factors (Staff Analyst: Brittany Mehlhaff; Staff Attorney: Kristen Edwards)

On February 15, 2019, the Commission received MidAmerican Energy Company’s (MidAmerican) filing for approval of tariff revisions to its Transmission Cost Recovery (TCR) 2018 Reconciliation and 2019 New Factor Calculation. MidAmerican’s TCR mechanism was established in the company’s most recent rate case, EL14-072. With this filing, MidAmerican is establishing new TCR rates based on true ups to the actual over/under recovery from 2018, 2019 forecasted MISO transmission expense, and the forecast over/under recovery for January through March of 2019. MidAmerican requests the new TCR factors have an effective date of April 2, 2019.

     TODAY, shall the Commission assess a filing fee in the amount of up to $50,000 to account for actual expenses incurred in review of this filing commencing from the filing date?

Grain

1.     GW19-001     In the Matter of Green Leaf Commodities, LLC’s Failure to Timely Respond Pursuant to SDCL 49-45-26 (Grain Warehouse Manager: Cody Chambliss; Staff Attorneys: Kristen Edwards, Amanda Reiss)

On February 15, 2019, Commission staff (staff) filed for a Motion for an Order to Show Cause (Motion) pursuant to SDCL 49-45-26 and 20:10:12. In its Motion, staff asserts that multiple data requests were made, and no response received from Green Leaf Commodities LLC (Green Leaf) or its owner and registered agent Kent Anderson. Staff further asserted it has received complaints from producers and other South Dakota licensed grain buyers. The Motion requests that the Commission issue an Order to Show Cause with respect to Green Leaf ordering that Green Leaf appear before the Commission and show cause as to why it should not be found in violation of the requirement to respond to requests for information.

     TODAY, shall the Commission issue an Order to Show Cause?

Natural Gas

1.     NG19-002     In the Matter of the Filing by Montana-Dakota Utilities Co. for Approval of its Revised Conservation Tracking Adjustment (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

On January 31, 2019, the Commission received an application by Montana-Dakota Utilities Co. (MDU) for approval of a revised Conservation Tracking Adjustment (CTA), pursuant to the terms of the company’s Conservation Program Tracking Mechanism Rate 90 tariff. The company proposed a CTA rate, applicable to service under Rates 60, 70 and 72, of $0.022 per dk to be effective March 1, 2019, and MDU is requesting approval with less than 30 days notice. The proposed CTA rate is a decrease of $0.007 per dk from the currently authorized CTA rate.

     TODAY, shall the Commission grant Montana-Dakota Utilities Co.’s request for approval of the revised Conservation Tracking Adjustment of $0.022 per dk and the associated Conservation Program Tracking Mechanism Rate 90 tariff sheet, with an effective date of March 1, 2019, on less than 30 days notice?

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 chairman.

Announcements

  1. PUC commissioners and staff will meet with consumers at the Sioux Empire Home Show, February 22-24, 2019, at the Sioux Falls Convention Center & Arena, Sioux Falls, South Dakota.

  2. A public input hearing for docket EL19-006 – In the Matter of the Application of Black Hills Power Inc. dba Black Hills Energy for a Facility Permit to Construct a 230 kV Transmission Line and Associated Facilities in Pennington County will be held Monday, March 18, 2019, at 5:30 p.m. MDT in the Washington Room, Ramkota Hotel and Conference Center, 2111 N. LaCrosse Street, Rapid City, South Dakota.

  3. The next regular commission meeting will be Tuesday, March 19, 2019, at 1:00 p.m. CDT in Room 413 at the State Capitol Building, Pierre, South Dakota.

  4. A public input hearing for docket EL19-007 – In the Matter of the Application by Triple H Wind Project, LLC for a Permit of a Wind Energy Facility in Hyde County, South Dakota will be held Tuesday, March 19, 2019, at 5:30 p.m. CDT in the Hyde County Memorial Auditorium, 125 Second Street SW, Highmore, South Dakota.

  5. A public input hearing for docket EL19-003 – In the Matter of the Application by Crowned Ridge Wind, LLC for a Permit of a Wind Energy Facility in Grant and Codington Counties will be held Wednesday, March 20, 2019, at 5:30 p.m. in the Waverly-South Shore School Gymnasium, 319 Mary Place, Waverly, South Dakota.

  6. An evidentiary hearing for EL18-021 – In the Matter of the Application of Otter Tail Power Company for Authority to Increase Its Electric Rates will be held March 26-28, 2019, in Room 413 at the State Capitol Building, Pierre, South Dakota.

  7. PUC commissioners and staff will meet with consumers at the Black Hills Home Show, March 29-31, 2019, at the Rushmore Plaza Civic Center, Rapid City, South Dakota.

  8. Commission meetings are scheduled for April 2 and 15, 2019.


/s/Cindy Kemnitz                            .
Cindy Kemnitz
Finance Manager
PUC Email
February 22, 2019