Consumer Assistance | Energy | Telecom | Warehouse | Commission Actions | Miscellaneous

SOUTH DAKOTA PUBLIC UTILITIES COMMISSION
2023 Highlights

Leadership
Chairperson Kristie Fiegen
Vice Chairman Gary Hanson
Commissioner Chris Nelson

Electric & Natural Gas Rate Changes & Adjustments
Energy Efficiency
Siting
Formal Complaint
Telecommunications
Legislation
 Leadership
Regional Transmission Organizations
Public Outreach and Consumer Assistance
 Grain Warehouse
Pipeline Safety

ELECTRIC & NATURAL GAS RATE CHANGES & ADJUSTMENTS

Reviewing electric and natural gas rates from around the state, region and nation offers perspective to evaluate the financial impact of South Dakota ratepayers’ experience compared to residents in other states.

  • The PUC approved an update to Otter Tail Power Co.’s phase-in cost recovery rider in August. The decision allowed the company to recover $1,764,229 annually through two different rate structures: a percent of bill factor and per meter charge. Project costs approved to be recovered were associated with the Astoria Natural Gas Plant,Merricourt and Ashtabula III wind projects (North Dakota), load growth in the Lake Norden area, retirement of the Hoot Lake (Minnesota) Plant, and advanced grid infrastructure projects. For an average residential customer using 1,000 kilowatt hours per month, the percent of bill change will result in a decrease of approximately $2.67 on their monthly bill. The updated per meter rate for that same customer will result in a decrease of approximately $0.62 bringing the total reduction to approximately $3.29 per month compared to current rates. See docket EL23-015.

  • The PUC approved Montana-Dakota Utilities Co.’s annual update to its infrastructure rider in April. The update approved a 2023 Infrastructure Rider revenue requirement of $751,132 associated with previously approved projects. The company did not propose to add any additional projects this year. As a result of the update, a typical residential customer using 853 kilowatt hours per month would see a decrease of $1.05 per month, or $12.60 annually. See docket
    EL23-006.

  • The commission processed several transmission cost recovery tariff requests in 2023 with these results:

    • In February, the commission approved Otter Tail Power Co.’s updated TCR rider rate. The updated rate includes a $2,968,042 revenue requirement associated with an update to the allocation factor used throughout the TCR tracker, one new project, four previously approved projects, and regional transmission expenses and revenues. As a result, an average residential customer using 1,000 kWh per month will see a monthly bill increase of $2.25. See docket EL22-031.

    • In March, MidAmerican Energy Co.’s updated TCR rider rate was approved by the commission. The updated rates are based on true ups to the actual over/under recovery in 2022, 2023 forecasted Midcontinent Independent System Operator transmission expense and the forecasted over/under recovery from January through March of 2023. The new rate, which went into effect March 1, 2023, resulted in a typical residential customer using 700 kWh per month seeing a $0.59 per month decrease in their monthly bill. See docket EL23-003.

    • In April, the PUC approved an updated TCR rider rate for Montana-Dakota Utilities Co. The updated rate included a revenue requirement of $2,342,915 associated with five previously approved projects, MISO and Southwest Power Pool costs net of revenues, revenues associated with a new Rate 45 (high density contracted demand response) customer in North Dakota, projected 2023 MISO Schedule 26A charges and other operations and maintenance return credits. The approval resulted in a rate decrease of $0.00102/kWh. For a typical residential customer using 853 kWh per month, that translates to an $0.87 decrease on their monthly bill, or $10.44 annually. See docket EL23-005.

    • In November, Xcel Energy’s updated TCR rider rate was approved by the commission. The updated rate included costs associated with 24 transmission projects, made up of four new projects and 20 that had been previously approved, and costs associated with MISO’s Schedule 26 expenses. The $456,349 approved revenue requirement translates to approximately a $0.44 monthly bill increase for a typical residential customer using 750 kWh per month. See docket EL23-026.

  • In June, the commission approved a settlement agreement, offered jointly by PUC staff and Xcel Energy, to grant the company an annual increase in base rates to recover a net revenue deficiency of approximately $3.6 million. The docket’s intervenor concurred with the settlement. When the base rate increase is combined with the 2023 Infrastructure Rider projects, the estimated overall revenue increase is approximately $14.3 million, or an approximate 5.85% increase in retail revenues. Commissioners also voted unanimously to approve Xcel’s interim refund plan. Xcel filed its application to increase revenue for electric service in its South Dakota service territory by approximately $44.1 million, or 17.9%, in June 2022. Due to the large amount of public interest in the docket, the commission held a public input meeting in Sioux Falls in November 2022. Based on the originally requested rate increase, the company estimated that a typical residential electric customer using 750 kWh per month would see an increase of $19.58 in their monthly bill. As a result of negotiations by PUC staff and Xcel Energy and the new rate approved by the commission, the same customer should expect a much lower increase of approximately $4.67 per month. Xcel’s last base rate increase was approved by the PUC in June of 2015. See docket EL22-017.

  • NorthWestern Energy filed an application with the PUC in June, requesting approval to increase rates for electric service to its South Dakota customers by approximately $30.9 million annually or approximately 16.32% based on NorthWestern’s 2022 historic test year. The proposed change, which would affect approximately 64,680 customers, could result in a monthly bill increase of $19.14 for a typical residential customer using 750 kilowatt hours per month. PUC staff continues to process NorthWestern’s application. A final decision from the commission is expected in January of 2024. NorthWestern Energy’s last base rate increase for electric customers was approved by the PUC in October of 2015 and went into effect the following January. See docket EL23-016.

  • In August, the commission received and began processing Montana-Dakota Utilities Co.’s application for approval to increase rates for electric service to customers in its South Dakota service territory by approximately $3.0 million annually. The company stated a typical residential electric customer using 900 kWh per month would see an increase of approximately $20.00 per month or 17.6%. The PUC will make a decision in 2024. MDU’s last electric rate increase was approved by the commission in June of 2016. See docket EL23-020.

  • Montana-Dakota Utilities Co. also filed an application in August to increase rates for its South Dakota natural gas customers. The application requests the commission allow the company to raise rates by approximately $7.4 million annually or 11.2%. The company stated a typical residential natural gas customer using 66.3 dekatherms on an annual basis would see an increase of $8.70 per month or 15.9%. PUC staff continue processing the docket, which may affect approximately 64,600 natural gas customers in MDU’s South Dakota service territory. The commission is expected to make a decision in 2024. MDU’s last natural gas rate increase request was approved in June 2016. See docket
    NG23-014.

  • In March, the commission approved a settlement stipulation for MidAmerican Energy Co. to increase rates for natural gas service to customers in its South Dakota retail service territory. The action came after a nearly year-long analysis of MidAmerican Energy’s original request for approximately $7.037 million in additional annual revenues. For MidAmerican’s South Dakota customers, this request translated to a 23.4% increase in customer base rates, or approximately 6.4% increase in the average customer’s total bill when purchased gas costs are included. Through settlement discussions, the parties settled on a final revenue requirement of $5,946,541. This revenue requirement translates to an average 20.1% increase in base rates, or a 5.4% increase in the average total bill when purchased gas costs are included. The approved settlement also included bill credits that gradually decreased during 2023 as additional capital projects went into service and were added to MidAmerican’s revenue requirement, ensuring that ratepayers did not pay for projects until they were in service. The approval marked MidAmerican’s first base rate increase since June 2015. The company attributed the increase to a major effort in replacing an aging system and expanding infrastructure to serve growth in southeastern South Dakota, as well as inflation. See docket NG22-005.

ENERGY EFFICIENCY

  • The commission approved several updates to energy efficiency and conservation programs. In 2023, the estimated energy savings for all investor-owned utilities was 13,534 megawatt hours of electricity and 6,538 dekatherms of natural gas.

    • The commission approved a revised conservation tracking adjustment rate of $0.015 per dk for Montana- Dakota Utilities Co. in March, which is a decrease of $0.010 per dk from the previously authorized CTA rate. As a result, the estimated annual decrease for a residential customer using 70 dk annually is $0.70. MDU’s conservation program provides incentives to residential customers for using high-efficiency heating equipment and programmable thermostats. The program also offers rebate options for commercial customers. See docket NG23-004.

    • Montana-Dakota Utilities Co. filed an application for approval of its natural gas conservation portfolio plan for 2024 through 2026 and the commission signed off on the plan in December. MDU’s plan proposed to continue its current program offerings, with one minor change to the programmable thermostat program for existing dwellings. In total, MDU’s portfolio will include four programs that benefit residential customers and three programs benefitting commercial customers. See docket NG23-025.

    • Otter Tail Power Co. continued its energy efficiency plan in 2023. In June, the commission approved the 2022 financial incentive, 2022 energy efficiency plan status report and updated the energy efficiency adjustment factor. The company’s residential and commercial programs incentivize customers to use efficient lighting, heat pumps and smart thermostats among other energy-saving measures. As a result of the revised energy efficiency adjustment factor, an average residential customer using 927 kilowatt hours per month should see a decrease in their monthly bill of $0.32. See docket EL23-012.

    • Otter Tail Power Co. also filed a proposal to update and extend its most recent energy efficiency partnership triennial plan for 2024 through 2026. The plan, which was approved by the commission in November, included 10 programs that will continue to incentivize customers with efficient options in heating, cooling and lighting. All the programs are a continuation of the existing programs that have been implemented and will include four programs with direct impacts for residential customers and five with direct benefits for commercial customers. See docket EL23-019.

    • In December, Xcel Energy’s 2024 demand side management plan, 2024 cost adjustment factor, 2022 DSM status report, 2022 DSM tracker account, and the performance incentive earned in 2022 were approved by the commission. The 2024 DSM plan includes slight changes to the business lighting efficiency and residential home lighting programs to align with federal Energy Independence and Security Act backstop legislation. In addition to lighting programs, offerings also include incentives for water heating and enrollment in Xcel’s Saver’s Switch program, among others. All Xcel customers collectively share the cost of the DSM program. An average residential customer using 750 kWh per month will see a monthly bill increase of $0.01. See docket EL23-013.

SITING

The PUC has authority to issue permits for the construction of energy conversion, AC/DC conversion, wind energy, solar energy, and electric transmission facilities as well as certain pipelines, including those designed to transport coal, gas, liquid hydrocarbon products or carbon dioxide.

  • PREVIOUSLY APPROVED SITING PROJECTS

    • In October, the commission approved a motion by Dakota Access Pipeline to release the construction road bond and terminate the appointment of a public liaison officer with the PUC. Both items were conditions of the permit to construct the pipeline granted by the PUC in December 2015. Construction on the pipeline began in May 2016. The pipeline became operational on June 1, 2017. See docket HP14-002.

  • NEW SITING APPLICATIONS

    • In January, the commission accepted a settlement stipulation brought by PUC staff and North Bend Wind Project LLC and granted a construction permit to North Bend Wind Project, a 200-megawatt wind energy facility in Hyde and Hughes counties. The permit contained 45 agreed upon conditions addressing a wide range of issues including land and road restoration, shadow flicker, noise levels, ice detection and ice throw, post-construction grouse lek monitoring and decommissioning. North Bend Wind Project LLC filed its application on June 23, 2021, starting the clock on a statutory nine-month review period that included a public input meeting held in Pierre in August 2021. In November 2021 and February 2022, the company filed requests to extend the deadline for a commission decision, thereby extending the statutory review period. Party status was granted to Judi Bollweg, individually and on behalf of the Tumbleweed Lodge and Bollweg Family LLLP and to Michael Bollweg, individually and on behalf of Bollweg Family LLLP, in September 2021 and was later withdrawn by the parties in January 2023. The North Bend Wind project will include up to 71 wind turbines and will span approximately 46,931 acres of land. Other components of the project will include access roads and associated facilities, underground 34.5-kilovolt electrical collector lines, underground fiber-optic cable, a 34.5-kV to 230-kV collection substation, a 230-kV interconnection switching station, an aircraft detection lighting system and one permanent meteorological tower. See docket EL21-018.

    • On September 11, during the first day of a scheduled 13-day evidentiary hearing for SCS Carbon Transport LLC’s application for a permit to construct and operate a carbon dioxide transmission pipeline, the commission voted unanimously to grant PUC staff’s motion to deny the company’s application. In its motion, staff argued SCS was no longer requesting preemption of county ordinances (having withdrawn that motion) and the proposed route violated county ordinances in four South Dakota counties. SCS filed its application Feb. 7, 2022. Soon after filing, Commissioner Kristie Fiegen recused herself from the docket due to a familial relationship with a landowner along the proposed pipeline route and Gov. Kristi Noem appointed State Treasurer Josh Haeder to serve as acting commissioner for the docket. The proposed project planned to span five states and include approximately 2,000 miles of pipelines, including 469 miles of pipeline within South Dakota, for the transportation of CO₂ from more than 30 ethanol plants. In March 2022, the PUC held public input meetings in Onida, Sioux Falls, De Smet, Redfield and Aberdeen. The events were collectively attended by more than 1,000 people. The PUC granted party status to 423 intervenors to formally participate in the docket. In May 2022, SCS filed a motion to extend the deadline, which the commission granted in part. SCS filed updated route maps in August 2022 and an updated application in October 2022. In February 2023, the commission granted SCS’s motion to set Nov. 15, 2023, as the definitive date for the final decision and order for the docket. See docket HP22-001.

    • On September 6, the commission voted unanimously to deny Navigator Heartland Greenway, LLC’s application for a permit to construct and operate a carbon dioxide transmission pipeline in South Dakota. The project was proposed to transport CO₂ from more than 21 ethanol and fertilizer plants across five states, including three ethanol plants in South Dakota, for permanent and secure underground sequestration in Illinois and/or to off-take facilities for commercial/industrial use. Navigator’s proposed project included 112.6 miles of carbon dioxide pipeline in South Dakota that would cross Brookings, Moody, Minnehaha, Lincoln and Turner counties. Navigator estimated the total cost of the proposed project in South Dakota to be $154 million. The company filed its application with the PUC on Sept. 27, 2022, starting the clock on the one-year period during which the commission is bound by state law to establish its findings and issue a decision. During that period, the PUC reviewed thousands of pages of filings, read hundreds of written comments and listened to testimony during the evidentiary hearing that spanned 12 days in July and August. The PUC also held public input meetings in Canton, Flandreau and Sioux Falls in November 2022 that drew more than 400 attendees collectively. The commission granted party status to 140 intervenors to formally participate in the docket. Prior to voting on the company’s overall application, the commission addressed the issue of pre-empting county ordinances. Navigator filed a motion to preempt county ordinances in Minnehaha and Moody counties in late June that became the subject of the final two days of the docket’s evidentiary hearing. Commissioners voted unanimously to deny the company’s request finding that the ordinances did not meet the criteria of being unreasonably restrictive. See docket
      HP22-002.

FORMAL COMPLAINTS

  • In August, the commission issued its final decision in Venture Communications Cooperative’s complaint against AT&T Mobility, finding that AT&T Mobility failed to pay for local interconnection facilities ordered by AT&T Mobility in Access Service Requests at the rate set forth in Venture’s price list. The commission further ordered AT&T Mobility to pay all unpaid interconnection charges and late payment charges thereon, pay pre-judgement and post-judgement interest on all unpaid balances and not pay Venture’s costs and expenses. It further found that Venture did not improperly bill AT&T Mobility for DS1 services under its pricing catalog, should not refund the amounts paid by AT&T Mobility, should not pay all pre-judgment and post-judgement interest for all claim amounts and should not pay AT&T Mobility costs and expenses including attorney’s fees. Venture Communications filed its complaint with the PUC in May 2020. A two-day evidentiary hearing was held in April 2023. See docket CT20-001.

  • In October, the PUC dismissed, with prejudice, a formal complaint against Crowned Ridge Wind LLC regarding project sound level compliance after complainants, Amber Christenson, Linda Lindgren and Timothy Lindgren, failed to appear at the October 11 evidentiary hearing in the South Dakota State Capitol. Based on the absence of the complainants, the company made a motion to dismiss the complaint stating that the complaining party bore the full burden of proof and had failed to meet that burden. The commission unanimously granted the dismissal. The complaint, filed in September 2022, alleged that Crowned Ridge failed to comply with conditions of the permit issued by the PUC and alleged deficiencies in sound testing previously conducted by the company. See docket CE22-001.

TELECOMMUNICATIONS

  • Twenty-six telecommunications carriers were deemed eligible to collectively receive millions of dollars in high-cost support from the federal Universal Service Fund for maintaining, upgrading and building out their voice and broadband networks in South Dakota. Each year, the commission must certify to the Federal Communications Commission that these carriers, designated as Eligible Telecommunications Carriers, are using funds for the provision, maintenance and upgrading of facilities and services for which support is intended. Dollars invested reflect the strengthening and expansion of telecommunications infrastructure to enhance system reliability and enable more service options to more customers, particularly in rural areas. The Universal Service Administrative Co. distributed over $122 million in High-Cost Support and Lifeline and Link-Up monies to South Dakota companies.

  • Commissioner Nelson, Commissioner Fiegen and Commission Attorney Kristen Edwards met with Federal Communications Commission members and staff in October in Washington, D.C., for ex parte discussions regarding the FCC’s WC Docket No. 22-277. The docket, filed with the FCC in July 2022, is Midcontinent Communications’ petition that the FCC issue a declaratory ruling affirming that a telecommunications carrier authorized to provide any telecommunications service in a state may seek interconnection with any other telecommunications carrier under section 251(a) of the Communications Act for the purpose of providing wholesale interconnection services for the exchange of local traffic, without the need to obtain additional authority from a state regulator, including a certificate of authority to provide local exchange service. Midcontinent asserts that the PUC’s ruling in PUC docket TC21-124, that Midcontinent is not entitled to interconnection with a rural incumbent telephone company to provide wholesale interconnection services until Midcontinent obtains a certificate of authority to provide local exchange service in the exchange where Midcontinent is seeking to provide the services, is inconsistent with section 251(a) and FCC precedent. The PUC filed comments about the matter with the FCC in 2022. In September, the PUC submitted written ex parte communication to the federal agency and followed up with personal visits to emphasize to the FCC its position of fairness and authority.

LEGISLATION

  • The annual PUC Briefing for Legislators in January provided an opportunity for Commissioners Fiegen, Hanson and Nelson to share current information with lawmakers about PUC hot topics such as telecommunications, broadband, siting, energy regulation, regional transmission organizations, and grain warehouses. It also gave commissioners a chance to brief legislators on legislation the PUC had proposed during legislative session.

  • Occasionally, the commission finds that current South Dakota laws are in need of modification or clarification and makes efforts to update legislation. The legislature approved House Bill 1005, the PUC’s legislation to update the pipeline safety chapter to properly cite current federal regulations regarding pipeline safety inspections.

  • Senate Bill 11, the PUC’s legislation to update certain application fees for actions related to energy transactions in utility chargeback dockets, was passed. The update increased the investigative/chargeback fee for general rate case dockets. Two contributing factors were pointed out as the impetus for the needed changes: chargeback dockets are complex and litigious cases that consume more staff time and costs related to retaining independent expert witnesses and consultants are rising.

LEADERSHIP

Commissioners hold a number of leadership roles with national and regional organizations. They also engage with South Dakota consumers, students, industry professionals and community leaders during many public gatherings each year.

  • SOUTH DAKOTA PUC

    • Commissioners selected Commissioner Kristie Fiegen to serve as PUC chairperson and Commissioner Gary Hanson to serve as vice chairman.

    • Commissioner Chris Nelson took the oath of office in January to begin his third term on the commission. Nelson will serve in the elected post until 2029.

  • PUBLIC ENGAGEMENT

    • Commissioner Fiegen regularly shared her passion for public service and dedication to education by engaging with students of all ages throughout the year. She made multiple visits to Sioux Falls’ Jefferson High School, meeting with students from the Project Based Learning Academy and Jobs for America’s Graduates program to discuss renewable energy, the national electric grid, and careers in government. She spent time in the Capitol with Chamberlain Middle School students, legislative interns and pages as well as JAG students from throughout the state offering a glimpse of government in action. Encouraging STEM careers and leadership was the theme when Fiegen met with students from Pierre’s Georgia Morse Middle School and Tri-Valley High School. Fiegen encouraged interest and understanding of government as a leader of the Citizenship Forum at South Dakota Girls State and as a speaker at South Dakota State University’s LeadState program. She also connected with middle and high school students at her alma mater in Parker.

    • Commissioner Fiegen kept various utility industry groups up to date about topics like broadband, electric reliability, the Southwest Power Pool regional transmission organization and general PUC happenings. These groups and events included the Black Hills Electric Cooperative annual meeting, South Dakota Rural Electric Association managers, South Dakota Telecommunications annual and board meetings, and the Mid-America Regulatory Conference commissioners’ education forum. Fiegen was also a featured speaker at the South Dakota Stockgrowers Association and South Dakota Federation of Labor annual meetings.

    • Commissioner Hanson moderated a panel regarding siting critical infrastructure for an audience of utility companies and utility regulator colleagues at the annual meeting of the Mid-America Regulatory Conference.

    • Commissioner Nelson shared his expertise as a speaker, panelist and moderator at events hosted by the National Association of Regulatory Utility Commissioners, Center for Public Utilities, South Dakota Telecommunications Association, South Dakota Municipal League, Osher Lifelong Learning Institute, South Dakota Association of Towns and Townships, and South Dakota agriculture groups. Topics included telecommunications, broadband funding and technology, universal service fund, and PUC processes. He connected with Brandon residents and legislative interns as well as students at Boys State and from Newell, Chamberlain and Pierre, offering insight about public service.

  • SOUTHWEST POWER POOL

    • Commissioner Kristie Fiegen was appointed chairperson of the Southwest Power Pool’s Resource and Energy Assurance Leadership team. REAL is tasked with assessing SPP’s current resource adequacy construct and anticipated challenges resulting from resource mix changes, extreme weather impacts, increased demand and evolving consumer behaviors. The group provides guidance, prioritization, and policy recommendations to increase assurance that energy can be continuously and cost-effectively provided within the SPP balancing authority area and will address applicable recommendations from the Future Grid Strategy Advisory Group and initiatives identified in the SPP resource adequacy roadmap.

REGIONAL TRANSMISSION ORGANIZATIONS

In the United States, a regional transmission organization is an electric power transmission system operator that coordinates, controls and monitors a multi-state electric grid. These non-profit corporations were voluntarily created, following a December 20, 1999, order by the Federal Energy Regulatory Commission for the purpose of promoting economic efficiency, reliability, and non-discriminatory practices while reducing government oversight. The transfer of electricity among states is considered interstate commerce and electric grids spanning multiple states are therefore regulated by FERC. RTOs also operate competitive wholesale electricity markets, where electricity generators bid their supply into the market and the lowest-cost bids are dispatched first.

RTOs use a stakeholder process for decision making and policy setting, and state public utilities commissions have a crucial seat at the stakeholder table. The PUC actively participates in the SPP and MISO stakeholder processes to advocate on behalf of South Dakotans and the state’s electric utilities as issues arise. This participation is time consuming, with commissioners and staff devoting many hours of their day to work on RTO issues.

Within the RTO stakeholder workgroups, maintaining reliability of the electric grid and regional transmission planning are critical issues. Driving this work is the transition of the electric generating resource mix from existing dispatchable resources to new intermittent resources. Intermittent resources are generating resources that depend on the weather in order to produce energy (e.g., wind and solar) or may be energy limited (e.g., storage), whereas dispatchable resources can produce energy when called upon by the system operator to do so.

As more and more intermittent resources are added to the grid each year, it is the PUC’s view that the electric industry needs to be thoughtful about investment in new transmission and the retirement of dispatchable resources to ensure the appropriate types of resources are on the grid to maintain reliability and affordability. Commissioners advocate for a cost-effective, orderly transition of the electric industry at RTO workgroup meetings, where regional transmission expansion plans, cost allocation of new transmission, resource accreditation, wholesale market reforms, and bulk power system reliability needs are a few of the hot topics.

PUBLIC OUTREACH AND CONSUMER ASSISTANCE

  • The PUC visited with more than 3,800 consumers about the purpose and services of the PUC at spring home shows in Sioux Falls and Rapid City and at the South Dakota State Fair.

  • The commission continued educating consumers about scam calls through their ongoing “Don’t Know? Don’t Answer!” informational campaign. The campaign informs consumers about scam calls, the tricks scam callers use to gain access to sensitive information or resources and provides tips on how to report scams and protect against their tactics.

  • Increased the total amount of South Dakota telephone numbers on the Do Not Call registry to 712,219.

GRAIN WAREHOUSE

  • Performed 470 inspections

  • The commission continued the “Ask an Inspector” promotional campaign at the South Dakota State Fair. The campaign encourages producers to contact the PUC’s grain warehouse staff with any questions about South Dakota’s grain industry and to report any concerns about the practices or financial solvency of grain businesses operating in South Dakota.

  • In July 2023, the commission resolved a complaint brought by PUC staff in January against Banghart Properties LLC that, among other allegations, alleged Banghart had operated as a grain buyer without a license. Banghart was denied a Class A grain buyer license in early April and the commission held an evidentiary hearing regarding the complaint that month. In early May, the commission found good cause for staff to deny Banghart’s Class A license for FY23. In June, the commission held a second hearing to consider a new application by Banghart for a FY24 Class B grain buyer license while also determining if the company had operated as a grain buyer without a license or violated state law by failing to pay a producer within 30 days. Following the second hearing, the commission resolved the docket, finding that the company did not purchase grain without a license, did fail to comply with state law that requires payment to a producer within 30 days, and granted Banghart’s FY24 Class B grain buyer license application with conditions. See docket GW23-001.

  • PUC staff wrapped up a docket addressing concerns related to the licensing and financial status of Roslyn Elevator. Roslyn’s grain buyer license was suspended in February 2022 after it was determined the company had fallen out of compliance with financial licensing requirements. The company’s change in financial status was largely attributed to the high number of voluntary credit and deferred payment contracts on its books and a modification to the company’s revolving credit agreement note by its bank. Between mid-February and late-June 2022, company representatives worked closely with PUC staff to improve Roslyn’s financial position. During this time, staff determined moving forward with revocation proceedings could pose hardship to producers in the area and would not serve the interest of producers or the public. As a result, the commission followed staff’s recommendation to waive the financial licensing requirement and granted Roslyn a grain buyer license, subject to conditions, on July 1, 2022. On June 26, 2023, Roslyn Elevator notified the commission that due to the retirement of the elevator’s owners and planned liquidation of company assets, it would not seek renewal of either its grain buyer or warehouse licenses for the 2023-2024 license year. All but two producers, whose voluntary credit sales with Roslyn were not subject to bond claims, were paid in full. See docket GW22-002.

PIPELINE SAFETY

  • PUC staff completed 144.75 days of pipeline safety inspections.

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