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South Dakota Public Utilities Commission Meeting
January 22, 2013, at 2:30 p.m. CST
Room 423, Capitol Building
Pierre, South Dakota

MINUTES OF THE AD HOC COMMISSION MEETING

Chairman Gary Hanson called the meeting to Order. Present were Commissioners: Chris Nelson and Kristie Fiegen; Commission Counsel: John Smith; Commission Advisor: Greg Rislov; Staff Attorney: Karen Cremer; and Staff: Sherry Dickerson

Also present were:
Michael Makens, Oak Tree Energy LLC; and Pam Bonrud, NorthWestern Corporation dba NorthWestern Energy

Joining the meeting by telephone were:
Staff Analyst: Brian Rounds; Tim Olson, Bleau LaFave, and Al Brogan, NorthWestern Corporation dba NorthWestern Energy; Yvette LaFrentz, Doney, Crowley, Payne, Bloomquist P.C., representing Oak Tree Energy LLC; Mike Uda, Uda Law Firm, P.C., representing Oak Tree Energy LLC; and Pat Makens, Oak Tree Energy, LLC.

Electric

1.     EL11-006     In the Matter of the Complaint by Oak Tree Energy LLC against NorthWestern Energy for refusing to enter into a Purchase Power Agreement (Staff Analyst: Brian Rounds, Staff Attorney: Karen Cremer)

Commissioner Nelson introduced an Avoided Cost Summary Proposal for consideration by the Commission. A lengthy discussion regarding the Avoided Cost Summary Proposal and how the Commission should rule on Oak Tree’s Complaint can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2013, January, recording located at:
http://puc.sd.gov/commission/media/2013/PUC01222013.mp3

     Commissioner Nelson moved to adopt his Avoided Cost Summary Proposal on a non-levelized basis.

     Commissioner Nelson amended his motion to adopt all of the assumptions and figures as proposed in his Avoided Cost Summary Proposal but to use the levelized cost, so that if operation begins in 2013, the levelized cost would be $53.31 per megawatt hour or if it begins in 2014, the levelized cost would be $55.34 per megawatt hour. Motion carried 2-1. Commissioner Fiegen dissented.

There being no further business, at the hour of 3:10 p.m., the South Dakota Public Utilities Commission meeting adjourned. The next Commission meeting is scheduled for January 30, 2013

/S/Joy Irving
Joy Irving
Administrative Assistant
puc@state.sd.us
January 22, 2013