SOUTH DAKOTA PUBLIC UTILITIES COMMISSION
2024 Highlights
Leadership
Chairperson Kristie Fiegen
Vice Chairman Gary Hanson
Commissioner Chris Nelson
Electric & Natural Gas Rate Changes & Adjustments
Energy Efficiency
Large Load Education Session
National Lineman Appreciation Day
Administrative Items
Siting
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 commission processed several transmission cost recovery tariff requests in 2024 with these results:
- In February, the PUC signed off on Otter Tail Power Co.’s updated TCR rider rate. The updated rate allows for recovery of nearly $2.5 million related to five previously approved projects, one new transmission project, the transmission adjustment from rate case EL18-021, and expenses and revenues associated with regional transmission organization schedules. The revenue requirement represents a decrease of approximately $419,000 compared to the prior period forecasted revenue requirement. The decrease is largely due to the over-collection true-up balance and increased MISO revenues. Otter Tail estimates a residential customer using 1,000 kWh per month will see a monthly bill decrease of approximately $1.56, or approximately 1.54%. See docket EL23-033.
- In March, the PUC approved MidAmerican Energy’s updated TCR rider rate. The updated rates are based on true-ups to the actual over/under recovery in 2023, 2024 forecasted MISO transmission expense and the forecasted over/under recovery from January through March of 2024. The new rate, which went into effect April 1, 2024, resulted in a typical residential customer using 700 kWh per month seeing a $0.56 per month increase in their monthly bill. See docket EL24-005.
- In April, the commission approved Montana-Dakota Utilities Co.’s annual update to its TCR rider. As part of MDU’s rate case approved in August, the company proposed to move five previously approved projects to base rate recovery beginning March 1, 2024, and did not propose to add any new projects to the rider. As a result, a typical residential customer using 853 kWh per month saw a decrease in their bill of $5.00 per month compared with the interim rate that was in effect. Compared to the rate approved last year in docket EL23-005, the proposed rate would translate to an approximate decrease of $15.76 per month. See docket EL24-007.
- In November, the commission approved an updated TCR rider rate for Xcel Energy. The updated rate included costs associated with 31 transmission projects, including six new projects, and MISO Schedule 26 revenues and expenses. The approved $991,151 revenue requirement translates to a monthly bill increase of approximately $0.18 for a typical residential customer using 750 kWh per month. See docket EL24-030.
- In February, the PUC signed off on Otter Tail Power Co.’s updated TCR rider rate. The updated rate allows for recovery of nearly $2.5 million related to five previously approved projects, one new transmission project, the transmission adjustment from rate case EL18-021, and expenses and revenues associated with regional transmission organization schedules. The revenue requirement represents a decrease of approximately $419,000 compared to the prior period forecasted revenue requirement. The decrease is largely due to the over-collection true-up balance and increased MISO revenues. Otter Tail estimates a residential customer using 1,000 kWh per month will see a monthly bill decrease of approximately $1.56, or approximately 1.54%. See docket EL23-033.
- In July, the commission approved an annual update to Xcel Energy’s infrastructure rider rate. The update approved a revised Infrastructure Rider Adjustment Factor of $0.002504 per kWh. The order denied, without prejudice, recovery of payments to the Prairie Island Indian Community from the 2024 infrastructure rider and allowed deferral accounting for the Prairie Island Indian Community payments until a future rate case. As a result of this change, a residential customer using 750 kWh will see a revised infrastructure rider monthly bill impact of $1.88, an increase of $3.26 compared to the previously effective infrastructure rider. See docket EL23-025.
- In December, the commission signed off on an update to Xcel Energy’s 2025 Infrastructure Rider Adjustment Factor. The decision allowed the company to recover the cost of 74 previously approved projects, nine new projects, production tax credits, production tax credit floor calculation, the Sherco 1 Land Sale, and operations and maintenance expenses associated with wind energy investments. As a result of this change, a residential customer using 750 kWh will see a revised infrastructure rider charge of $1.02 per month, a decrease of $0.86 per month compared to the average residential bill impact of the 2024 Infrastructure Rider of $1.88 per month. See docket EL24-029.
- The PUC approved Montana-Dakota Utilities Co.’s annual update to its infrastructure rider rate in April. The update allowed for a 2024 Infrastructure Rider revenue requirement of $559,737 associated with previously approved projects. As a result of MDU’s update, a typical residential customer using 853 kWh per month saw a bill increase of approximately $1.03 per month compared with the interim rate that was in effect. Compared to the rate approved last year in docket EL23-006, the proposed rate would translate to an approximate decrease of $1.10 per month. See docket EL24-008.
- In August, the PUC approved an update to Otter Tail Power Co.’s phase-in rider rate with a revised “percent of bill” phase-in rider factor of 10.502%, revised per meter charges, and a total revenue requirement of $3,216,072. The updated rate allows the company to recover costs associated with the Merricourt, Astoria, and Ashtabula III projects, the revenue credit due to the new load growth in Lake Norden, net savings associated with the retirement of Hoot Lake Plant, Advanced Grid Infrastructure projects, and four new wind repowering projects at Langdon, Ashtabula I, Luverne, and Ashtabula III. As a result, a residential customer with one residential meter who uses 1,000 kWh a month will see a monthly bill increase of $4.14. See docket EL24-020.
- Commissioners voted to approve a settlement stipulation allowing Montana-Dakota Utilities Co. to raise natural gas rates in August. Commission staff negotiated with MDU to reach an agreement to increase annual revenues recovered by approximately $5.37 million annually, resulting in an average increase of approximately $4.45 per month for a typical natural gas customer using 5.53 dekatherms per month. The amount approved by the PUC is just over half the $8.70 per month increase requested in MDU’s application, which was filed with the commission in August 2023. MDU serves approximately 64,600 natural gas customers in South Dakota and saw their last base rate increase in June of 2016. See docket NG23-014.
- In August, the commission signed off on a significantly reduced rate increase request for South Dakota electric customers served by Montana-Dakota Utilities Co. The approved rate allowed for an overall revenue increase of $1.29 million annually. As a result, a typical residential electric customer using 900 kWh per month saw an average bill increase of $8.26 per month, less than half the estimated $20.00 per month from the company’s original request. MDU’s last electric rate increase was approved by the commission in June of 2016. See docket EL23-020.
- In January, the commission approved a settlement stipulation, offered jointly by PUC staff and NorthWestern Energy, to allow the company an annual increase in base rates to recover an overall revenue deficiency of $21,520,114, approximately $9.4 million less than the original request. The proposed change, which will affect approximately 64,680 customers, resulted in a monthly bill increase of $13.67 for a typical residential customer using 750 kWh per month. NorthWestern’s last base rate increase was approved by the PUC in November of 2015. See docket EL23-016.
- In December, the PUC approved a reduced rate increase for NorthWestern Energy’s natural gas customers. The company filed an application in June requesting a 9.1% total bill increase. The rate approved, authorizing a total bill increase of 7.0%, was presented in a settlement stipulation offered jointly by NorthWestern Energy and PUC staff. The accepted agreement allowed the utility to raise revenues by just under $4.6 million and represented the company’s first natural gas rate increase in 13 years. As a result of the decision, a typical residential customer using an average of 10 dekatherms per month will see an increase of $6.47 in their monthly bill. See docket NG24-005.
- The commission approved updates to energy efficiency and conservation programs. In 2024, the estimated energy savings for investor-owned utilities with energy efficiency programs were 21,429 megawatt hours of electricity and 562 dekatherms of natural gas.
- The commission approved a revised conservation tracking adjustment rate of $0.014 per dk for Montana- Dakota Utilities Co. in February, which is a decrease of $0.001 per dk from the previous rate. As a result, the estimated annual decrease for a residential customer using 70 dk annually is $0.07. MDU’s conservation program provides incentives to residential customers for using highefficiency heating equipment and programmable thermostats. The natural gas program also offers rebate options for commercial customers. See docket NG24-002.
- Otter Tail Power Co. continued its energy efficiency plan in 2024. In June, the commission approved the 2023 financial incentive, 2023 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 kWh per month should see a decrease in their monthly bill of $0.24. See docket EL24-017.
- In November, Xcel Energy’s 2025 demand side management plan, 2025 cost adjustment factor, 2023 DSM status report, 2023 DSM tracker account, and the performance incentive earned in 2023 were approved by the commission. The 2025 DSM plan includes changes to the business lighting efficiency program, expanded list of qualifying thermostats for AC Rewards, removal of the Horticulture LED lighting program, and removal of the residential heat pump water heater program. An average residential customer using 750 kWh per month will see a monthly bill decrease of $0.03. See docket EL24-016.
The South Dakota PUC hosted a large electric load education session in November at the State Capitol in Pierre. The session featured discussion among the commission and representatives of investor-owned utilities, cooperative and municipal utility organizations, regional transmission organizations and data centers. Presenters talked about data centers, crypto mining facilities, and other large loads both in and out of South Dakota and insight into the quantity of possible load, firm versus interruptible nature, certainty, and timeframes. They also described the practices and policies that guide the process when receiving a request from a potential large load. The event attracted a full house of interested folks from a wide range of industries as well as a significant online audience tuning into the audio livestream.
NATIONAL LINEMAN APPRECIATION DAY
The commission encouraged South Dakotans to show appreciation for linemen and the work they do to ensure the safe, reliable delivery of electricity year-round on April 18 for National Lineman Appreciation Day.
In March, the commission adopted administrative rules that included repealing a rule for which the law implemented had been repealed; removing citations to statutes that had been repealed; changing the fiscal requirements for grain buyer licensees; removing certain master meter notice and filing requirements; amending a deadline for annual telecommunications filings; updating references to federal regulations for pipeline safety, and updating documentation required of transmission pipeline operators. The Legislature’s Interim Rules Review Committee approved the rules in April. See docket RM23-001.
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, carbon dioxide or hydrogen.
- NEW SITING APPLICATIONS
- In April, Otter Tail Power Co. and Western Minnesota Municipal Power Agency filed an application for a permit to construct a 345-kV transmission facility and associated facilities in Grant County. The proposed Big Stone South to Alexandria Transmission Line Project plans to begin at Otter Tail Power Co.’s existing Big Stone South Substation two miles west of Big Stone City, South Dakota, and connect to a substation near Alexandria, Minnesota. The South Dakota portion of the project will consist of approximately 3.5 miles of transmission line. In May, a public input meeting was held in Big Stone City. Daniel and Tamra Jurgens were granted party status in the docket, but entered into a settlement agreement with the Applicants and withdrew from the docket. PUC staff and the applicants entered into a settlement stipulation agreeing Applicants met the requirements for a permit, with the adoption of 34 proposed conditions. The Commission approved the Settlement Stipulation in January 2025, and granted a permit to construct the transmission facility, incorporating 34 conditions to the permit. See docket EL24-015.
- In June, the PUC received an application from Deuel Harvest Wind Energy South LLC for a permit to construct and operate a wind energy facility with a nameplate capacity 260 megawatts and up to 68 wind turbines, and a permit to construct a transmission facility for a six-mile 345-kilovolt generator tie line in Deuel County. A public input meeting was held in Clear Lake in August. Party status was granted to five intervenors. The commission held an evidentiary hearing on the matter on January 21, 2025. In February 2025, the commission voted to grant permits to construct the proposed wind energy and transmission facilities, with more than 50 conditions. See docket EL24-023.
- In September, the commission accepted a settlement stipulation brought by PUC staff and East River Electric Power Cooperative, Inc. and granted a permit to construct the WAPA North Bend to Pratt 230kV Transmission Line project. The project will include approximately 500 feet of 230-kilovolt transmission line and associated facilities in Hyde County. The project will connect the North Bend Substation, owned by the Western Area Power Administration, with the Pratt Substation, owned by East River, and will be located on land owned by WAPA or East River, except for the crossing of the public road right-of-way for County Road 649. East River filed its application with the commission on March 22, 2024. A public input hearing was held in Pierre in May. See docket EL24-011.
- In November, the PUC received and began processing SCS Carbon Transport LLC’s application for a permit to construct and operate a carbon dioxide transmission pipeline. The proposed project consists of approximately 2,500 miles of pipelines for the transportation of CO2 from ethanol plants across five states including 15 ethanol plants in South Dakota. Approximately 698 miles of pipeline would be placed in the state, crossing Beadle, Brookings, Brown, Clark, Codington, Davison, Edmunds, Grant, Hamlin, Hand, Hyde, Kingsbury, Lake, Lincoln, McCook, McPherson, Minnehaha, Miner, Sanborn, Spink, Sully, Turner, and Union counties. The commission held public input meetings in Mitchell, Sioux Falls, De Smet, Watertown, Aberdeen and Redfield in January 2025. See docket HP24-001.
- In April, Otter Tail Power Co. and Western Minnesota Municipal Power Agency filed an application for a permit to construct a 345-kV transmission facility and associated facilities in Grant County. The proposed Big Stone South to Alexandria Transmission Line Project plans to begin at Otter Tail Power Co.’s existing Big Stone South Substation two miles west of Big Stone City, South Dakota, and connect to a substation near Alexandria, Minnesota. The South Dakota portion of the project will consist of approximately 3.5 miles of transmission line. In May, a public input meeting was held in Big Stone City. Daniel and Tamra Jurgens were granted party status in the docket, but entered into a settlement agreement with the Applicants and withdrew from the docket. PUC staff and the applicants entered into a settlement stipulation agreeing Applicants met the requirements for a permit, with the adoption of 34 proposed conditions. The Commission approved the Settlement Stipulation in January 2025, and granted a permit to construct the transmission facility, incorporating 34 conditions to the permit. See docket EL24-015.
- POTENTIAL FUTURE SITING PROJECTS
- In June, the commission received a filing from Missouri River Energy Services, acting as an agent for Western Minnesota Municipal Power Agency, with a notice of intent to submit an application for a permit for an energy conversion facility in the near future. WMMPA proposes to construct, own and operate an energy conversion facility consisting of seven or eight reciprocating internal combustion engines, a concrete engine hall building, diesel fuel truck unloading facilities, and other associated facilities. The expected generation is approximately 145 megawatts of power during periods of high energy demand. Associated facilities will include natural gas piping anticipated to be less than 450 feet and a 345-kilovolt generation-tie to connect with the Astoria 345 kV substation. The energy conversion facility, referred to as Toronto Power Plant, is proposed to be located approximately three miles north of Toronto. See docket EL24-021.
- 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 $125 million in High-Cost Support and over $1 million in Lifeline and Link-Up monies to South Dakota companies.
- 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 discuss the PUC’s proposed legislation.
- The PUC developed legislation, Senate Bill 22, to amend language regarding the licensing period for a grain buyer. The legislation, which aimed to create bookkeeping efficiencies for licensees and grain warehouse staff and clarify the timeframe in which Class B grain buyers must pay for grain purchases, was signed by the governor in March.
- Senate Bill 23, the commission’s legislation to amend 49-34-14 by providing a specific exemption from the overcharging statute for electric vehicle charging stations, was passed. This revision allows electric vehicle charging stations in compliance with 49-34A-116 to sell electricity at retail based on the fee structure of their choosing without rate regulation from the PUC.
- The PUC’s legislation, House Bill 1034, eliminated ambiguity in state law by declaring hydrogen is a product that would require a pipeline siting permit.
- The commission shepherded legislation to increase the minimum filing fee for energy facility permit applications from $8,000 to $20,000.
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.
- Commissioners selected Commissioner Kristie Fiegen to serve as PUC chairperson and Commissioner Gary Hanson to serve as vice chairman.
- 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 spent time with Brandon residents and students from Tea, Parker, Sioux Falls Roosevelt and Freeman as well as legislative interns and pages, discussing the PUC, leadership, ethics and careers in government. Commissioner Fiegen kept various utility industry groups up to date about topics like electric reliability, the Southwest Power Pool regional transmission organization, broadband and general PUC happenings. These events included the Rushmore Electric Power Cooperative annual meeting, North Central Electric Association Executive Symposium and Santel Communications Cooperative’s Annual Meeting. She moderated natural gas panel discussions at the National Association of Regulatory Utility Commissioners’ Winter Policy Summit and the Mid-America Regulatory Conference annual meeting. Educational site visits at grain elevators, power plants, a coal mine, coal and natural gas research facilities, and a Bakken oil field rounded out a very busy year for Fiegen.
- Commissioner Hanson, a member of the National Association of Regulatory Utility Commissioners’ Committee on Electricity, led a discussion among utility CEOs at the NARUC Summer Policy Summit. The panelists answered questions about how they balance new resource investments and grid modernization while ensuring reliability and reasonable rates.
- Commissioner Nelson shared his expertise as a speaker, panelist and moderator at symposia hosted by the National Association of Regulatory Utility Commissioners, Center for Public Utilities, South Dakota Association of Towns and Townships, Pierre Rotary Club, South Dakota ABATE, South Dakota Association of Cooperatives, State Federation of Labor, South Dakota Rural Electric Association, South Dakota Corn Growers, South Dakota Corn Utilization Council and other South Dakota agriculture groups. Topics encompassed legislation, wind energy, carbon capture, grain warehouse issues, economics of telecommunications, broadband funding and deployment, universal service fund reform, and PUC processes, including siting and permitting. He connected with residents from Brandon and Mitchell as well as students from James Valley Christian, offering insight about the PUC’s role and responsibilities. Nelson offered comments about the importance of renewable natural gas at NorthWestern Energy’s RNG Valve Turning Ceremony near Brookings.
- Commissioner Fiegen regularly shared her passion for public service and dedication to education by engaging with students of all ages throughout the year. She spent time with Brandon residents and students from Tea, Parker, Sioux Falls Roosevelt and Freeman as well as legislative interns and pages, discussing the PUC, leadership, ethics and careers in government. Commissioner Fiegen kept various utility industry groups up to date about topics like electric reliability, the Southwest Power Pool regional transmission organization, broadband and general PUC happenings. These events included the Rushmore Electric Power Cooperative annual meeting, North Central Electric Association Executive Symposium and Santel Communications Cooperative’s Annual Meeting. She moderated natural gas panel discussions at the National Association of Regulatory Utility Commissioners’ Winter Policy Summit and the Mid-America Regulatory Conference annual meeting. Educational site visits at grain elevators, power plants, a coal mine, coal and natural gas research facilities, and a Bakken oil field rounded out a very busy year for Fiegen.
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 (FERC) for the purpose of promoting economic efficiency, reliability, and nondiscriminatory 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. Regional Transmission Organizations (RTOs) and Independent System Operators (ISOs) also operate competitive wholesale electricity markets, where electricity generators bid their supply into the market and the lowest-cost bids are dispatched first. The maps provide a look at the regional transmission organizations and markets that affect South Dakota and the utility companies that participate in each.
RTOs and ISOs 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, MISO, and CAISO WEIM 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. The following table demonstrates the PUC’s involvement in the RTO stakeholder process.
Within the RTO and ISO 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 as well as forecasted load growth (e.g., new data centers). Intermittent resources are generating resources that depend on the weather 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. Commissioners advocate for a cost-effective, orderly transition of the electric industry at RTO and ISO workgroup meetings, where regional transmission expansion plans, transmission cost allocation, 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 2,750 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 with the “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 718,230.
- Performed 482 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.
- PUC staff completed 151 days of pipeline safety inspections.
