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South Dakota Public Utilities Commission
May 22, 2012, 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 21, 2012. 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.

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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 Ad Hoc Commission Meeting Held on May 2, 2012, and the Commission Meeting Held on May 8, 2012 (Staff: Joy Irving)

Consumer Reports

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

Electric

1.     EL10-014     In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of its 2011 Transmission Cost Recovery Eligibility and Rate Adjustment (Staff Analysts: Brittany Mehlhaff, Ross Pedersen; Staff Attorneys: Ryan Soye, Kara Semmler)

On October 6, 2010, the Commission received a petition from Northern States Power Company dba Xcel Energy for approval of its 2011 transmission cost recovery eligibility and rate adjustment. On May 1, 2012, Xcel Energy filed a letter requesting the Commission to withdraw its Petition and close the docket.

     TODAY, shall the Commission approve the Company's Petition to withdraw its filing and close the docket?

2.     EL11-001     In the Matter of the Petition of Black Hills Power, Inc. to Establish an Environmental Measures Cost Recovery Tariff (Staff Analysts: Jon Thurber, Brittany Mehlhaff, Chris Daugaard; Staff Attorney: Ryan Soye)

On January 25, 2011, the Commission received a petition from Black Hills Power, Inc. (BHP) requesting the Commission to approve its new tariff establishing an Environmental Improvement Adjustment (EIA) pursuant to legislation enacted during the 2007 Legislative Session. SDCL 49-34A-97 through 49-34A-100 authorize the Commission to approve a tariff mechanism for the automatic annual adjustment of charges for a public utility to recover the South Dakota jurisdictional portion of eligible investments in and expenses related to new environmental measures. The statute defines eligible new environmental measures as any environmental improvements required under the Clean Air Act, the Clean Water Act, or any other federal law or rule, or any state law or rule implementing a federal law or rule, or voluntary environmental measures designed to protect the environment. On May 11, 2012, the docket was reopened upon Staff's filing of an Amendment to the Settlement Stipulation, which was originally approved in this docket on May 31, 2011. The amendment asks for Commission approval to modify the filing deadline for one of the annual reports identified in the original Settlement Stipulation.  

     TODAY, shall the Commission approve the Amendment to the Settlement Stipulation?

3.     EL12-023     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Cherry-Todd Electric Cooperative, Inc. and West Central Electric Cooperative, Inc. (Staff Analyst: Ross Pedersen, Staff Attorney: Ryan Soye)

On March 12, 2012, Commission Staff filed an Electric Service Territory Boundary Agreement between Cherry-Todd Electric Cooperative, Inc. and West Central Electric Cooperative, Inc. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission Staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission Staff asks for approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

        TODAY, shall the Commission approve the proposed electric service territory boundary agreement? 

4.     EL12-026     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Rosebud Electric Cooperative, Inc. and West Central Electric Cooperative, Inc. (Staff Analyst: Ross Pedersen; Staff Attorney: Ryan Soye)

On March 30, 2012, Commission Staff filed an Electric Service Territory Boundary Agreement between Rosebud Electric Cooperative, Inc. and West Central Electric Cooperative, Inc. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission Staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission Staff requests approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

     TODAY, shall the Commission approve the proposed electric service territory boundary agreement?

5.     EL12-028     In the Matter of the Filing of Northern States Power Company dba Xcel Energy for Approval of its 2011 Economic Development Activities and 2012 Budget (Staff Analyst: Patrick Steffensen, Staff Attorney: Karen Cremer)

On April 4, 2012, Xcel filed for approval of its 2011 Economic Development Annual Report and 2012 Economic Development Plan. The filing includes Xcel's report on the projected and actual 2011 economic development activities budget and provides documentation of the actual economic development expenses incurred. The filing also provides a revised economic development plan and budget for 2012.

     TODAY, shall the Commission approve the 2011 Economic Development Annual Report and the 2012 Economic Development Plan?

6.     EL12-029     In the Matter of the Application of Black Hills Power, Inc. for Approval of its Environmental Improvement Adjustment (Staff Analysts: Jon Thurber, Brittany Mehlhaff; Staff Attorney: Ryan Soye)

On April 16, 2012, Black Hills Power, Inc. (BHP) filed for Commission approval of its revised Environmental Improvement Adjustment (EIA). This application provides the second year revenue requirement and customer rates for the environmental improvements made to the Wyodak Power Plant approved in EL11-001, along with the project cost true-up and an annual true-up. The Company proposes a June 1, 2012, effective date.        

        TODAY, shall the Commission approve the 2012 Environmental Improvement Adjustment?

7.     EL12-030     In the Matter of the Application of Black Hills Power, Inc. for Approval of its Electric Cost Adjustment (Staff Analyst: David Jacobson; Staff Attorney: Ryan Soye)

On April 16, 2012, Black Hills Power, Inc. (Black Hills Power) filed for Commission approval of its Electric Cost Adjustment (ECA) to its electric rates. This Application sets forth the changes that Black Hills Power proposes to its ECA rates to be effective June 1, 2012. Black Hills Power requests that this rate adjustment be approved without the requirement of posting a bond or other security.

     TODAY, shall the Commission approve the 2012 Electric Cost Adjustment?

8.     EL12-031     In the Matter of the Filing by Otter Tail Power Company for Approval of Tariff Revisions (Staff Analyst: Matthew Tysdal; Staff Attorney: Ryan Soye)

On April 17, 2012, Otter Tail Power Company (Otter Tail) submitted for Commission approval a revised Section 16.00, Sheet No. 3 of its Tariff Book. The municipal service agreements, currently listed as contracts with deviations, between Otter Tail and the Town of New Effington and the City of Oldham will expire in May. The new agreements for municipal services bring rates within Otter Tail's current tariff on file with the Commission.

     TODAY, shall the Commission approve Otter Tail's request for tariff revisions?

9.     EL12-032     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Moreau-Grand Electric Cooperative, Inc. and Montana-Dakota Utilities Co. (Staff Analyst: Ross Pedersen; Staff Attorney: Ryan Soye)

On April 24, 2012, Commission Staff filed an Electric Service Territory Boundary Agreement between Moreau-Grand Electric Cooperative, Inc. and Montana-Dakota Utilities Co. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission Staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission Staff requests approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

     TODAY, shall the Commission approve the proposed electric service territory boundary agreement?

10.     EL12-033     In the Matter of the Request for a Declaratory Ruling by Dream Design International, Inc. regarding the Application of ARSD § 20:10:26:04(2) to a Residential Complex Intended to House School of Mines Students (Staff Analyst: Matthew Tysdal; Staff Attorney: Ryan Soye)

On April 25, 2012, the Commission received a filing by Dream Designs, Inc. requesting determination of an exception to the individual metering requirements under ARSD § 20:10:26. Dream Designs, Inc. is in the process of constructing a 34-unit residential complex intended to house students of the South Dakota School of Mines and Technology and requests approval to provide master metering in order to allow the students to make one payment for all services and utilities. 

     TODAY, shall the Commission find that Dream Designs, Inc. has correctly interpreted the Administrative Rules of South Dakota applicable to master metering requirements? OR, how shall the Commission proceed?

11.     EL12-035     In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of its 2011-2012 Transmission Cost Recovery Eligibility and Rate Adjustment (Staff Analysts: Brittany Mehlhaff, Ross Pedersen; Staff Attorneys: Ryan Soye, Kara Semmler) 

On April 30, 2012, the Commission received a petition from Northern States Power Company dba Xcel Energy (Xcel) for approval of its 2011-2012 transmission cost recovery (TCR) project eligibility and rate adjustment. This petition is intended to replace the Company's petition filed in Docket EL10-014. Xcel is resubmitting its TCR petition as a 2011-2012 consolidated filing because of cost allocation issues pertaining to regional transmission projects.

     TODAY, shall the Commission assess a filing fee in the amount of $50,000 to account for actual expenses incurred in review of this filing commencing from the filing date? AND, shall the Commission suspend implementation of rates according to ARSD 20:10:13:24? AND, shall the Commission give the Executive Director authority to enter into necessary consulting contracts?

Natural Gas

1.     NG12-003     In the Matter of The Evangelical Lutheran Good Samaritan Society's Notice to the Commission and Request for Determination of an Exception to Individual Metering Requirements under ARSD § 20:10:26:04(6) for a planned 44-unit Residential Complex (Staff Analyst: Dave Jacobson, Staff Attorney: Ryan Soye)

On May 11, 2012, the Commission received a filing from The Evangelical Lutheran Good Samaritan Society (ELGSS) notifying the Commission of its plans to construct a forty-four (44) unit project and to incorporate a master metered gas and electric system. The housing project has been selected to receive a conditional reservation of housing tax credits by the South Dakota Housing Development Authority (SDHDA) and will serve as a low-income housing project for persons of sixty-two (62) years of age, or older. The project will be located in downtown Sioux Falls at the intersection of North Main Avenue and West Third Street.

     TODAY, shall the Commission determine that the proposed construction project qualifies for an exception to individual metering requirements? OR, how shall the Commission proceed?

Telecommunications

1.     TC12-025     In the Matter of the Application of Televergence Solutions, Inc. for a Certificate of Authority to Provide Interexchange Long Distance Services in South Dakota (Staff Analyst: Patrick Steffensen, Staff Attorney: Kara Semmler)

On February 21, 2012, the Commission received an application from Televergence Solutions, Inc. for a Certificate of Authority to provide statewide resold Interexchange Service in South Dakota. The company also requests a waiver from the cash flow statement pursuant to ARSD 20:10:24:02(9).

     TODAY, shall the Commission grant the Certificate of Authority to Televergence Solutions, Inc.?

2.     TC12-031     In the Matter of the Filing by Onvoy, Inc. dba Onvoy Voice Services for Approval of its Access Services Tariff No. 1 (Staff Analyst: Patrick Steffensen, Staff Attorney: Kara Semmler)

On March 28, 2012, the Commission received a filing from Onvoy, Inc. dba Onvoy Voice Services (Onvoy) for approval of its Intrastate Access Tariff No. 1. This tariff contains the descriptions, regulations, and rates applicable to the furnishing of intrastate switched access services offered by Onvoy to Customers located within the State of South Dakota.

     TODAY, shall the Commission approve Onvoy's Access Services Tariff?

Continuation of Commission Meeting: Docket EL11-019 will be heard at 1:00 p.m. CDT in Room 413 of the Capitol Building

1.     EL11-019     In the Matter of the Application of Northern States Power Company dba Xcel Energy for Authority to Increase its Electric Rates (Staff Analysts: Jon Thurber, Dave Jacobson, Brittany Mehlhaff, Brian Rounds, Matthew Tysdal; Staff Attorney: Karen Cremer)

On June 30, 2011, the Commission received an application by Northern States Power Company dba Xcel Energy (Xcel) for approval to increase rates for electric service to customers in its South Dakota service territory by approximately $14.6 million annually or approximately 9.28% based on Xcel's 2010 test year. In addition, Xcel is proposing to recover approximately $1 million of ongoing investments in its Monticello nuclear generating plant through a Nuclear Cost Recovery Rider to go into effect with the final rates. The Company states a typical residential electric customer using 750 kWh per month would see an increase of 9.48%, or $6.93 per month. The proposed rates may potentially affect approximately 84,000 customers in Xcel's South Dakota service territory. On May 8, 2012, the Commission received a Joint Motion for Approval of Settlement Stipulation.

     TODAY, shall the Commission grant the Joint Motion for Approval of Settlement Stipulation and approve the terms and conditions stipulated therein? OR how shall the Commission proceed?

Items for Commission Discussion

Announcements

  1. An ad hoc commission meeting will be held Thursday, May 17, 2012, at 9:30 a.m. CDT, in Room 413 at the State Capitol Building, Pierre, S.D.

  2. The PUC offices will be closed Monday, May 28, 2012, in observance of Memorial Day.

  3. Commissioners will attend the Black Hills Electric Cooperative annual meeting Friday, June 1, 2012, at 5 p.m. MDT, at the Mueller Center, Hot Springs, S.D.

  4. The next regularly scheduled commission meeting will be held Tuesday, June 5, 2012, at 9:30 a.m. CDT, in Room 413 at the State Capitol Building, Pierre, S.D.

  5. Commissioners will attend the Sioux Valley Energy annual meeting Tuesday, June 5, 2012, at 6:30 p.m. CDT, at the Swiftel Center, Brookings. S.D.

  6. Commissioners will attend a Utility Shareholders of South Dakota meeting at Noon CDT, Tuesday, June 12, 2012, at the Ramkota Hotel, Aberdeen, S.D.

  7. A hearing in Docket EL11-019 will be held beginning Wednesday, June 13, 2012, at 1 p.m. CDT, and continuing on Thursday, June 14, 2012, at 8 a.m., in Room 413 at the State Capitol Building, Pierre, S.D.

  8. Commission meetings are scheduled for June 19 and July 3, 2012.

/S/ Cindy Kemnitz
Cindy Kemnitz
Finance Manager
puc@state.sd.us
May 16, 2012