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South Dakota Public Utilities Commission Meeting
May 2, 2019, at 1:30 P.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 Wednesday, May 1, 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

Administration

1.     Approval of Minutes of the Ad Hoc Commission Meetings held on March 27 and April 23, 2019, and the Commission Meeting Held on April 2, 2019 (Staff: Joy Lashley)

Consumer Reports

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

Administration

1.     AA19-001     In the Matter of Clarification of the Commission’s ETC Certification Process (Staff Analyst: Lorena Reichert; Staff Attorney: Kristen Edwards)

In Docket TC13-027, the Commission waived certain ETC requirements for years 2013, 2014, and 2015, in response to the Federal Communications Commission’s changes in annual reporting requirements. Since 2016, this clarification process has been decided in dockets AA16-002, AA17-001, and AA18-001. In Docket AA18-001, the Commission voted to continue the waivers of ARSD 20:10:32:54 (8) and (9) for 2018, as well as waive the June 1 filing deadline as set forth in ARSD 20:10:32:52 and allow ETCs to file their annual certifications on or before July 2. On March 7, 2019, Commission staff filed a letter opening this docket and requesting clarification as to how the companies should proceed in 2019. On March 29, 2019, South Dakota Telecommunications Association filed comments into the docket.

     TODAY, shall the Commission waive certain Certification requirements as found in ARSD 20:10:32:54 and the filing deadline as found in ARSD 20:10:32:52? OR, how shall the Commission proceed?

Electric

1.     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 (Staff Analysts: Darren Kearney, Jon Thurber, Joseph Rezac; Staff Attorneys: Kristen Edwards, Amanda Reiss)

On February 6, 2019, Triple H Wind Project, LLC (Triple H) filed for a permit to construct Triple H Wind Project (Project), a wind energy facility located on approximately 27,247 acres of land in Hyde County, South Dakota, approximately 3.2 miles southwest of Highmore, South Dakota. The total installed capacity of the Project would not exceed 250.24 MW nameplate capacity. The proposed Project includes up to 92 wind turbine generators, access roads to turbines and associated facilities, underground electrical power collector lines connecting the turbines to the collection substation, and operations and maintenance facility, a Sonic Detection Ranging Unit, and temporary construction areas, including crane paths, public road improvements, a laydown yard, and a concrete batch plant(s) (as needed), and one permanent meteorological tower. The Project would interconnect to the existing Leland Olds to Fort Thompson transmission line via a new 500-ft transmission interconnection line within the Project area. Triple H has entered into an agreement with Walmart and another undisclosed buyer for the electricity generated by the Project. The remaining 52 MW will be sold on a merchant basis. On March 19, 2019, the Commission held a public input hearing in Highmore. On April 9, Commission staff filed a Motion for Adoption of Procedural Schedule. 

     TODAY, shall the Commission grant the Motion for Adoption of Procedural Schedule?

2.     EL19-010     In the Matter of the Filing by Montana-Dakota Utilities Co., a Subsidiary of MDU Resources Group Inc., for Approval of the Annual Update to Its Infrastructure Rider Rate (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)

On March 1, 2019, Montana-Dakota Utilities Co., a Subsidiary of MDU Resources Group Inc., (MDU) filed for approval of its annual update to its Infrastructure Rider Rate (IRR), pursuant to the terms of the company’s IRR 56 tariff. MDU is proposing to increase the tariff rate to $0.00583 per kWh for the rate period covered by this filing. The proposed increase is due in part to inclusion of the Thunder Spirit Wind Expansion.

     TODAY, shall the Commission approve the request to increase the Infrastructure Rider Rate tariff to $0.00583 per kWh and approve the associated tariff sheet with an effective date of May 2, 2019?

3.     EL19-011     In the Matter of the Application of Black Hills Power, Inc. dba Black Hills Energy for Approval of Its 2018 Economic Development Report and 2019 Economic Development Plan (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

On March 1, 2019, the Commission received an application from Black Hills Power, Inc. dba Black Hills Energy (BHE) requesting approval of its 2018 Economic Development Report and its 2019 Economic Development Plan and Budget. In its fling, BHE outlines its economic development memberships and economic development grant program participants and criteria.

     TODAY, shall the Commission approve Black Hills Energy’s 2018 Economic Development Report and its 2019 Economic Development Plan?

4.     EL19-013     In the Matter of the Filing of Northern States Power Company dba Xcel Energy for Approval of its 2018 Economic Development Activities and 2019 Budget (Staff Analyst: Patrick Steffensen; Staff Attorney: Amanda Reiss)

On March 19, 2019, Northern States Power Company dba Xcel Energy (Xcel) filed for approval of its 2018 Economic Development Annual Report and 2019 Economic Development Budget. The filing includes Xcel’s report on the 2018 budgeted and actual economic development expenses and provided documentation of the actual expenses incurred. The filing also includes a proposed economic development budget for 2019.

     TODAY, shall the Commission approve Xcel Energy’s 2018 Economic Development Report and its 2019 Economic Development Budget?

5.     EL19-014     In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of Revisions to Its Sample Forms and Associated Tariff Revisions (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)

On March 26, 2019, the Commission received a filing from NorthWestern Corporation dba NorthWestern Energy (NorthWestern) for approval of revisions to its Sample Forms and associated tariff sheets. NorthWestern seeks to modernize and remove unnecessary forms currently in NorthWestern’s tariff that will reduce the administrative burden of both NorthWestern and the Commission.

     TODAY, shall the Commission approve the proposed tariff revisions with an effective date of May 2, 2019?

6.     EL19-015     In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of Its 2019 Economic Development Plan and 2018 Economic Development Report (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

On March 29, 2019, the Commission received an application from NorthWestern Corporation dba NorthWestern Energy (NorthWestern) requesting approval of its 2018 Economic Development Report and 2019 Economic Development Proposed Budget. On April 12, 2019, Northwestern responded to staff’s data request.

     TODAY, shall the Commission approve NorthWestern Energy’s 2018 Economic Development Report and 2019 Economic Development Plan?

7.     EL19-016     In the Matter of the Application by Crowned Ridge Wind II, LLC for a Permit of a Wind Energy Facility in Deuel, Grant and Codington Counties (Staff Analysts: Darren Kearney, Jon Thurber, Eric Paulson; Staff Attorneys: Amanda Reiss, Kristen Edwards,)

     On April 1, 2019, the South Dakota Public Utilities Commission (Commission) received an Application for a Wind Energy Facility Permit (Application) from Crowned Ridge Wind II, LLC (Crowned Ridge Wind or Applicant), a subsidiary of NextEra Energy Resources, LLC. Crowned Ridge Wind proposes to construct a wind energy facility to be located in Codington, Deuel and Grant Counties, South Dakota (Project). The Project would be situated within an approximately 60,996-acre project area, located east of the City of Watertown (Project Area). The Project Area is in Waverly, Kranzburg, Troy, Rome, Goodwin, and Havana Townships. The total installed capacity of the Project would be approximately 300.6 megawatts of nameplate capacity. The proposed Project includes up to 132 wind turbine generators, access roads to turbines and associated facilities, underground 34.5 kV electrical collector lines, underground fiber-optic cable, a 34.5-kV to 230-kV collection substation, up to two permanent meteorological towers, and an operations and maintenance facility. The Project would interconnect to the electric grid at the Big Stone South 230-kV Substation using the Crowned Ridge II’s 5-mile 230-kV transmission line that was approved in Docket EL18-018 and the Crowned Ridge 34-mile generation tie line that was approved in Docket EL17-050. The Project is expected to be completed in 2020. Applicant has executed a purchase and sale agreement with Northern States Power Company (NSP) to sell NSP the Project upon commercial operation. Applicant estimates the total construction cost to be $425 million. On April 9, 2019, attorney A.J. Swanson filed an application for party status for individuals Garry Ehlebracht, Steven Greber, Mary Greber, Richard Rall, Amy Rall and Laretta Kranz. On April 15, 2019, Mr. Swanson filed a Petition to Commission Staff Concerning Applicant’s Burden of Proof (Petition). On April 16, 2019, Commission staff (staff) filed a Motion to Dismiss Petition of Ehlebracht, Et Al. Concerning Applicant’s Burden of Proof (Motion).

     TODAY, shall the Commission assess a filing fee not to exceed $412,500 with an initial deposit of $8,000? AND, shall the Commission authorize the executive director to enter into necessary consulting contracts? AND, shall the Commission grant party status to those how have filed? AND, how shall the Commission rule on the Petition and Motion?

Gas and 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, Otter Tail Power Company (OTP) filed initial comments and on July 16, 2018, OTP filed additional comments. On February 15, 2019, staff and OTP entered into a Settlement Stipulation in OTP’s rate case docket, EL18-021, which among other things, resolved any outstanding issues regarding Docket GE17-003. The EL18-021 Settlement Stipulation provided that the parties agreed to enter a Stipulation requesting the Commission close Docket GE17-003 with respect to OTP. On March 29, 2019, the parties filed a Stipulation and Joint Request.

     TODAY, shall the Commission grant the Joint Request to adopt the settlement of the Tax Cuts and Jobs Act approved by the Commission in Docket EL18-021 and to close Docket GE17-003 with respect to Otter Tail Power?     

2.     GE19-001     In the Matter of the Filing by MidAmerican Energy Company for Approval of a Revised Customer Information Welcome Booklet (Staff Analyst: Eric Paulson; Staff Attorney: Amanda Reiss)

On March 14, 2019, the Commission received a Filing from MidAmerican Energy Company (MidAmerican) for approval of its revised Customer Information Welcome Booklet. Pursuant to ARSD 20:10:16:02, the Customer Information Welcome Booklet shall be submitted to the Commission for approval. On March 29, 2019, MidAmerican responded to Commission staff’s data requests. On April 2, 2019, MidAmerican filed a revised Customer Information Welcome Booklet. MidAmerican requests an effective date of May 1, 2019.

     TODAY, shall the Commission approve the proposed revisions to MidAmerican’s Customer Information Welcome Booklet?

Natural Gas

1.     NG19-003     In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of Its 2019 Economic Development Plan and 2018 Economic Development Report (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

On March 29, 2019, the Commission received an application from NorthWestern Corporation dba NorthWestern Energy (NorthWestern) requesting approval of its 2018 Economic Development Report and 2019 Economic Development Proposed Budget. On April 12, 2019, Northwestern responded to staff’s data request.

     TODAY, shall the Commission approve NorthWestern Energy’s 2018 Economic Development Report and 2019 Economic Development Plan?

Pipeline Safety

1.     PS19-001     Public Utilities Commission Staff’s Request for Adoption of PHMSA’s Exercise of Enforcement Discretion (Pipeline Safety Program Manager: Mary Zanter, Pipeline Safety Inspector: Boice Hillmer; Staff Attorney: Kristen Edwards)

On March 26, 2019, the Pipeline and Hazardous Materials Safety Administration (PHMSA) issued an exercise of enforcement discretion regarding farm tap inspections. On March 28, 2019, staff filed a letter requesting the Public Utilities Commission exercise the same discretion at the state level.

     TODAY, shall the Commission make a ruling accepting the exercise of enforcement discretion regarding farm tap inspections under 49 CFR 192.740? OR, how shall the Commission proceed?

Telecommunications

1.     TC19-002     In the Matter of the Application of Vesta Solutions, Inc. for a Certificate of Authority to Provide Local Exchange and Interexchange Long Distance Services in South Dakota (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

On February 7, 2019, Vesta Solutions, Inc. (Vesta) filed an application for a Certificate of Authority to provide local exchange services and interexchange long distance services throughout South Dakota. Specifically, Vesta seeks to provide IP-based 9-1-1 call routing, database services and management, and network services to promote the advancement and migration of public safety answering point (PSAP) networks to the NG9-1-1 architecture. On February 28, 2019, the South Dakota Telecommunications Association (SDTA) filed a Petition to Intervene. At the March 19, 2019, Commission Meeting, SDTA was granted intervention. On March 7, 2019, Vesta responded to Commission staff’s data requests. Vesta requests that the Commission waive ARSD 20:10:32:03(11) and ARSD 20:10:32:10(1-7). Vesta also requested a waiver of ARSD 20:10:32:03(15), ARSD 20:10:24:02(17) and ARSD 20:10:32:03(24), if necessary. On March 27, 2019, SDTA and Vesta filed a Joint Stipulation.

     TODAY, shall the Commission grant any waivers requested by Vesta Solutions, Inc.? AND, shall the Commission approve the Joint Stipulation? AND, shall the Commission grant a Certificate of Authority to Vesta? OR, how shall the Commission proceed?

2.     TC19-003     In the Matter of the Application of NGA 911, LLC for a Certificate of Authority to Provide Local Exchange and Interexchange Long Distance Services in South Dakota (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

On February 14, 2019, NGA 911, LLC (NGA 911) filed an application for a Certificate of Authority to provide local exchange services and interexchange long distance services throughout South Dakota. Specifically, NGA 911 seeks certificates to provide local exchange and interexchange telecommunications services in order to provide emergency call routing, transport, and related functionalities to state and municipal governmental agencies to support public safety answering points (PSAPs). On March 7, 2019, the South Dakota Telecommunications Association (SDTA) filed a Petition to Intervene. At the March 19, 2019, Commission Meeting, SDTA was granted intervention. On March 18, 2019, NGA 911 responded to Commission staff’s data requests. NGA 911 requests that the Commission waive ARSD 20:10:32:03(11) and ARSD 20:10:32:10(1-7). The company requests a waiver of ARSD 20:10:24:02(9) and ARSD 20:10:32:03(12) only to the extent that a cash flow statement is required. The company also requested a waiver of ARSD 20:10:32:15, if necessary. On March 27, 2019, SDTA and NGA 911 filed a Joint Stipulation.

     TODAY, shall the Commission grant any waivers requested by NGA 911, LLC? AND, shall the Commission approve the Joint Stipulation? AND, shall the Commission grant a Certificate of Authority to NGA 911? OR, how shall the Commission proceed?

3.     TC19-004     In the Matter of the Application of Communications Venture Corporation dba INdigital for a Certificate of Authority to Provide Local Exchange and Interexchange Long Distance Services in South Dakota (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

On February 27, 2019, Communications Venture Corporation dba INdigital (INdigital) filed an application for a Certificate of Authority to provide local exchange services throughout South Dakota. Specifically, INdigital seeks a certificate to provide local exchange telecommunications services in order to provide transitional Enhanced 911 and Next Generation 911 services to State, local, and/or any governmental or quasi-governmental agencies involved in administering and delivering emergency services using the universal 911 dialing code. These Next Gen Core services include IP based 911 call routing, database services, and database management. On March 13, 2019, the South Dakota Telecommunications Association (SDTA) filed a Petition to Intervene. At the April 2, 2019, Commission Meeting, SDTA was granted intervention. On March 26, 2019, INdigital filed a supplement to the application to also request approval to provide interexchange long distance services in South Dakota. On March 26, 2019, and March 27, 2019, INdigital responded to staff’s data requests. INdigital requests that the Commission waive ARSD 20:10:32:03(11) and ARSD 20:10:32:10(3). The company also requested a waiver of ARSD 20:10:32:15, if necessary. On April 10, 2019, SDTA and INdigital filed a Joint Stipulation.

     TODAY, shall the Commission grant any waivers requested by INdigital? AND, shall the Commission approve the Joint Stipulation? AND, shall the Commission grant a Certificate of Authority to INdigital? OR, how shall the Commission proceed?

4.     TC19-006     In the Matter of the Filing by Qwest Corporation dba CenturyLink QC for Approval of Revisions to Its Access Service Tariff (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)

On April 1, 2019, the Commission received a filing from Qwest Corporation dba CenturyLink QC (CenturyLink) for approval of revisions to its Access Service Tariff. These revisions seek to update and standardize the Refusal and Discontinuance of Service language by eliminating the use of Certified U.S. Mail when providing 30 days written notice. CenturyLink requests the proposed change become effective May 1, 2019.

     TODAY, shall the Commission approve the proposed tariff revisions with an effective date of May 1, 2019?

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. The next regular commission meeting will be Tuesday, May 14, 2019, at 8:00 a.m. CDT in Room 413 at the State Capitol Building, Pierre, South Dakota.

  2. A public input hearing for docket EL19-016 - In the Matter of the Application of Crowned Ridge Wind II, LLC for a Permit of a Wind Energy Facility in Deuel, Grant and Codington Counties will be held Wednesday, May 22, 2019, at 5:30 p.m. CDT in the Whitewood Room at the Watertown Event Center, 1901 Ninth Avenue NW, Watertown, South Dakota.

  3. Commission meetings are scheduled for May 28 and June 11, 2019.

/s/Cindy Kemnitz             .
Cindy Kemnitz
Finance Manager
PUC Email
April 25, 2019