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South Dakota Public Utilities Commission Meeting
May 18, 2010, at 9:30 A.M. CDT
Room 413, Capitol Building
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. CDT on Monday May 17, 2010.  Lines are limited and are given out 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 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 Web site www.puc.sd.gov and click on the LIVE link on the home page. The Commission requests that persons who will only be listening to proceedings and not actively appearing in a case listen via the web cast to free phone lines for those who have to appear.  The Commission meetings are archived on the PUC's Web site under the Commission Actions tab and then click on the LISTEN link on the page.

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 the Minutes of the Commission Meeting Held on April 20, 2010. (Staff: Demaris Axthelm)

Consumer Reports

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

Consumer Complaint

1.      CE10-001        In the Matter of the Complaint Filed by Convenient Loan, Sioux Falls, South Dakota, Against Xcel Energy Regarding a Billing Dispute. (Staff Attorney: Kara Semmler)

         On May 6, 2010, a company calling itself Convenient Loans of 119 S. Main Ave in Sioux Falls filed a formal complaint against Xcel Energy. On May 10, 2010, Staff filed a letter stating that the complaint does not comply with filing requirements and requests the Commission handle the complaint according to ARSD 20:10:01:08.01. Staff recommends the complaint be administratively dismissed if a corrected complaint is not filed by close of business, May 28, 2010.

         TODAY, shall the Commission find the complaint incomplete and require it to be corrected and refiled?

Electric

1.      EL09-015        In the Matter of the Application by Basin Electric Power Cooperative, Inc. for an Energy Conversion Facility Siting Permit for the Deer Creek Station Project Combined-Cycle Natural Gas Energy Conversion Facility and Associated Infrastructure, Including a Water Supply System and Electric Transmission System. (Staff Analysts: Nathan Solem, Brian Rounds, Tim Binder, Staff Attorney: Karen Cremer)

         On July 28, 2009, Basin Electric Power Cooperative filed an application for an energy conversion facility permit for the Deer Creek Station project located 12 miles northeast of Brookings, South Dakota. The project consists of a 300 net megawatt combined-cycle natural gas conversion facility and associated 1.25-mile water pipeline and 0.75-mile electric transmission line. Construction of this $393 million project is anticipated to begin in July 2010 with startup in June 2012. The project will help serve the increased generation demand for electric power in the eastern portion of Basin Electric's service area. An associated siting application for a 13.2-mile natural gas pipeline for the project has been filed separately. At its August 11, 2009, meeting, the Commission assessed a filing fee not to exceed $396,500 with an initial deposit of $8,000. Due to scheduling and notice complications, Basin filed a Motion for Extension of Notice, Public Hearing Timeframe and Application for Party Status on August 21, 2009. Basin further requested to hold the public hearing on September 30, 2009. The Commission granted the motion at its August 25, 2009, meeting. On August 31, 2009, Iberdrola Renewables filed a Petition for Intervention. Intervention was granted to Iberdrola Renewables at the September 8, 2009, commission meeting. The Brookings County Commission (Brookings) filed an Application for Party Status on September 30, 2009. On October 13, 2009, Jongeling Consulting submitted a combined Consulting Services Proposal in EL09-015 and HP09-002. At its regularly scheduled meeting of October 20, 2009, the Commission granted Party Status to Brookings and granted intervention. The Commission also approved the request to hire a consultant for $10,500. On February 5, 2010, a draft environmental impact statement was received from the U. S. Department of Energy. On April 5, 2010, Basin Electric submitted their water permit obtained by the South Dakota Department of Natural Resources. On May 5, 2010, Basin submitted the Notice for Requirements of Transmission Line Construction. On May 10, 2010, Basin and Staff filed a Joint Motion for Approval of Stipulation and the Stipulation.

         TODAY, shall the Commission approve the Joint Motion for Approval of Stipulation?

2.      EL10-003        In the Matter of the Request of Xcel Energy to Take Action Prohibiting the Operation of Aggregators of Retail Customers in South Dakota. (Staff Analyst: Dave Jacobson, Brian Rounds, Staff Attorney: Kara Semmler)

         On March 29, 2010, Xcel requested the Commission open a docket and take action preventing Aggregators of Retail Customers (ARCs) from beginning operations on June 1, 2010. In the filing, Xcel also referenced comments submitted to the Commission in a March 1, 2010, letter as supporting evidence. On April 16, 2010, MidAmerican Energy Company (MidAmerican) submitted a Petition to Intervene.

         TODAY, shall the Commission grant intervention AND shall the Commission prohibit ARCs from operating in South Dakota? Or how shall the Commission proceed?

3.      EL10-004           In the Matter of the Filing by NorthWestern Corporation, d/b/a NorthWestern Energy for Approval of a Contract With Deviations. (Staff Analyst: Dave Jacobson, Staff Attorney: Karen Cremer )

         On April 20, 2010, the Commission received an application by NorthWestern Corporation, d/b/a NorthWestern Energy (NorthWestern) for approval of a Contract with Deviation to construct an electric line to serve the Burlington Northern Railroad. This project is to provide electrical service to a new switch heater located at NAPA Junction, Yankton County, South Dakota. There is a very minimal load associated with this heater. NorthWestern will install, or arrange for the installation of, approximately 890 feet of overhead line.

         TODAY, shall the Commission approve the Contract with Deviation and associated tariff revisions?

Hydrocarbon Pipeline

1.      HP09-002        In the Matter of the Application by Basin Electric Power Cooperative, Inc. for an Energy Conversion Facility Siting Permit for a Natural Gas Pipeline to Support the Deer Creek Station Project. (Staff Analysts: Nathan Solem, Brian Rounds, Tim Binder, Staff Attorney: Karen Cremer)

         On July 28, 2009, Basin Electric Power Cooperative, Inc. (Basin) filed a siting permit application with the Public Utilities Commission (Commission) for the Deer Creek energy conversion facility (EL09-015) and a natural gas pipeline to support the Deer Creek facility. Basin is proposing to construct, own, and operate a natural gas pipeline to support a proposed 300-megawatt combined-cycle natural gas energy conversion facility called the Deer Creek Station. The proposed 13.2 mile pipeline route will traverse about 18 sections of land located in Brookings and Deuel counties. The proposed pipeline diameter is 10.75 inches with an operating pressure ranging between 475 - 1,435 pounds per square inch gauge (psig). Construction is proposed to begin in July 2010 with start up in June 2012. On July 30, 2009, the Commission electronically transmitted notice of the filing and the intervention deadline of September 28, 2009, to interested individuals and entities. On August 11, 2009, at its regularly scheduled meeting, the Commission, pursuant to SDCL 49-41 B-12, unanimously voted to assess Basin a filing fee not to exceed $30,000, with an initial deposit of $8,000, the minimum fee allowed by law as requested by the Deputy Executive Director. On August 21, 2009, the Commission received a Motion for Extension of Notice, Public Hearing Time Frame and Application for Party Status from Basin. Commission Staff requested a waiver of SDCL 49-41 B-15 and 49-41 B-16. At its regularly scheduled meeting of August 25, 2009, the Commission voted unanimously to grant the Motion for Extension of Notice, Public Hearing Time Frame and Application for Party Status and to grant a waiver of SDCL 49-41 B-15 and 49-41 B-16. On August 31, 2009, the Commission received a Petition for Intervention from Iberdrola Renewables (Iberdrola). At its regularly scheduled meeting of September 8, 2009, the Commission granted intervention to Iberdrola. On September 30, 2009, the Commission received an Application for Party Status from the Brookings County Commission (Brookings). At its regularly scheduled meeting of October 20, 2009, the Commission granted intervention to Brookings. On January 19, 2010, Basin submitted an addendum to their siting application. On February 5, 2010, a draft environmental impact statement was received from the U. S. Department of Energy. On April 5, 2010, Basin Electric submitted their Special Exception Permit to construct the underground natural gas pipeline from Deuel County Zoning. On May 5, 2010, Basin submitted the Notice for Requirements of Transmission Line Construction. On May 10, 2010, Basin and Staff filed a Joint Motion for Approval of Stipulation and the Stipulation.

         TODAY, shall the Commission approve the Joint Motion for Approval of Stipulation?

Telecommunications

1.      TC10-015           In the Matter of the Filing by IntelePeer, Inc. for Approval of its Switched Access Services Tariff No. 1. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Kara Semmler)

         IntelePeer, Inc. filed on January 27, 2010, for approval of its Switched Access Service Tariff No. 1.

         TODAY, shall the Commission approve the Switched Access Tariff No. 1?

2.      TC10-021           In the Matter of the Filing for Approval of an Amendment of an Interconnection Agreement Between Qwest Corporation and AT&T Communications of the Midwest, Inc. (Staff Attorney:  Kara Semmler)

On March 12, 2010, the Commission received a filing for approval of an Amendment to an Interconnection Agreement between Qwest Corporation and AT&T Communications of the Midwest, Inc.

            TODAY, shall the Commission approve the Amendment to the Interconnection Agreement?

3.      TC10-024           In the Matter of the Filing by Qwest Corporation for Approval of Its Request to Consolidate the Spearfish, Lead, Deadwood, and Whitewood Rate Centers. (Staff Analyst: Terri LaBrie Baker, Staff Attorney: Karen Cremer)

         On April 26, 2010, Qwest filed for approval to combine rate centers within a single local calling area. Consolidating the rate centers of Spearfish, Lead, Deadwood, and Whitewood into one rate center will provide customers within a larger area the opportunity to move and retain their wireline telephone number. Qwest expects a rate center consolidation would help conserve telephone numbers and provide important customer benefit.

         TODAY, shall the Commission grant intervention to any parties that have filed? AND shall the Commission approve the consolidation of the Spearfish, Lead, Deadwood and Whitewood rate centers into one rate center?

Items for Commission Discussion

Announcements

1.   Commissioners and staff will attend an informational meeting with representatives of Xcel Energy on May 18, 2010, at 1:00 p.m., CDT, in Room 413 at the State Capitol Building, Pierre, S.D.

2.   Commissioners and staff will attend a meeting with telecommunications company representatives to discuss universal service fund reform on May 19, 2010, at 9:00 a.m., CDT, in Room 414 at the State Capitol Building, Pierre, S.D.

3.   A hearing in Docket TC08-031 will be held May 25-26, 2010, in Room 414 of the State Capitol Building, Pierre, S.D. The hearing will begin at 9:00 a.m., CDT, May 25.

4.   The next regularly scheduled commission meeting will be held June 1, 2010, at 10:00 a.m., CDT, in Room 413 at the State Capitol Building, Pierre, S.D.

5.   A hearing in Docket TC10-017 will be held June 2, 2010, beginning at 9:00 a.m., CDT, in Room 414 of the State Capitol Building, Pierre, S.D.

6.   Commissioners and staff will attend the annual meeting of the Mid-America Regulatory Conference, June 6-9, 2010, in Kansas City, Mo.

7.   Commission meetings are scheduled for June 15 and July 6, 2010.

8.   A hearing in Docket EL09-018 will be held June 28 – July 16, 2010, in Room 414 of the State Capitol Building, Pierre, S.D. The hearing will begin at 9:00 a.m., CDT, June 28.

9.   Commissioners and staff will attend the annual summer committee meetings of the National Association of Regulatory Utility Commissioners, July 18-21, 2010, in Sacramento, Calif.

/S/ Cindy Kemnitz                  .
Cindy Kemnitz
Finance Manager
puc@state.sd.us
May 12, 2010