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South Dakota Public Utilities Commission Meeting
Wednesday, July 1, 1998; 1:30 P.M.
State Capitol Building, Room 412
Pierre, South Dakota
NOTE: If you wish to join this meeting by conference call, please contact the Commission at 605-773-3201 by 5:00 p.m. on June 30, 1998.
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.
Natural Gas
On May 7, 1998, Montana-Dakota Utilities Co. filed for approval of a contract with deviation with Merillat Corporation. The proposed agreement provides for the sale of a maximum daily delivery quantity of 2,800 dk of firm natural gas to Merillat. The filing states that Merillat is a large volume, high load factor customer, and it is in the best interest of the other customers for MDU to enter into an agreement which will satisfy Merillat's request for firm sales gas service at a competitive price and serve to avoid a bypass of MDU's distribution facilities. The existing firm customers will continue to benefit under this negotiated contract through Merillat's contribution toward transmission pipeline demand costs and distribution cost recovery, which would not exist if Merillat were to bypass MDU's distribution system. Upon Commission approval, the gas commodity charge of $1.83 plus distribution losses will be retroactively applied to gas delivered to Merillat on and after April 1, 1998 and continue through October 31, 1998. The proposed agreement has been signed by the customer and will not have an adverse impact on existing customers.
TODAY, shall the Commission approve the contract with deviation?
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Sue Cichos
Business Manager
June 30, 1998
