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South Dakota Public Utilities Commission Meeting
January 7, 2014, at 9:30 A.M. CST
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. CST on Monday, January 6, 2014. 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 website www.puc.sd.gov and click on the LIVE link on the home page. The Commission requests 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 website under the Commission Actions tab, Click on "Commission Meeting Archives," to access the recordings.

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 Hearing and Commission Meeting Held on December 17, 2013 (Staff: Joy Lashley)

Consumer Reports

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

Electric

1.     EL13-036     In the Matter of the Application of Black Hills Power, Inc. for Approval of Deferred Accounting for Costs Incurred Due to Winter Storm Atlas Damage and to Transfer the Remaining Plant Balance for the Soon to be Decommissioned Neil Simpson I, Osage, and Ben French Plants to a Regulatory Asset (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen; Staff Attorney: Karen Cremer)
 
On November 15, 2013, the Commission received an Application by Black Hills Power, Inc. (BHP) requesting an accounting order allowing it to 1.) accumulate and defer for potential recovery in base rate proceedings before the Commission its expenses incurred to repair damage and restore service to its customers as a result of Winter Storm Atlas and 2.) transfer the remaining plant balance for the soon to be decommissioned Neil Simpson I, Osage and Ben French plants to a regulatory asset.

     TODAY, shall the Commission allow BHP to use deferred accounting for costs incurred as a result of Winter Storm Atlas and authorize BHP to transfer the remaining plant balance for the soon to be decommissioned Ben French, Osage and Neil Simpson I plants to a regulatory asset? OR how shall the Commission proceed?

2.      EL13-037     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Howard Municipal Electric and Northern States Power Company dba Xcel Energy. (Staff Analyst: David Henry; Staff Attorney: Kristen Edwards)

On November 27, 2013, Commission Staff filed an Electric Service Territory Boundary Agreement between Northern States Power d/b/a Xcel Energy and Dakota Energy 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?

3.      EL13-039     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Central Electric Cooperative, Inc. and Rosebud Electric Cooperative, Inc. (Staff Analyst: David Henry; Staff Attorney: Kristen Edwards)

On December 3, 2013, Commission Staff filed an Electric Service Territory Boundary Agreement between Central Electric Cooperative, Inc. and Rosebud 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.      EL13-040     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Central Electric Cooperative, Inc. and Howard Municipal Electric (Staff Analyst: David Henry; Staff Attorney: Kristen Edwards)

On December 4, 2013, Commission Staff filed an Electric Service Territory Boundary Agreement between Central Electric Cooperative, Inc. and Howard Municipal Electric. 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?

5.      EL13-041     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Central Electric Cooperative, Inc. and Dakota Energy Cooperative, Inc. (Staff Analyst: David Henry; Staff Attorney: Kristen Edwards)

On December 6, 2013, Commission Staff filed an Electric Service Territory Boundary Agreement between Central Electric Cooperative, Inc. and Dakota Energy 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?

Natural Gas

1.     NG12-008     In the Matter of the Application of Montana-Dakota Utilities Co. for Authority to Increase its Natural Gas Rates (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen; Staff Attorney: Kristen Edwards)

On December 21, 2012, the Commission received an application by Montana-Dakota Utilities Co. (MDU) for approval to increase rates for natural gas service to customers in its South Dakota service territory, consisting of the Black Hills and East River service areas, by approximately $1.5 million based on MDU's test year ending June 30, 2012. MDU also proposed to consolidate the Black Hills and East River areas into one rate jurisdiction. On October 24, 2013, Staff filed MDU's and Staff's Joint Motion for Approval of Settlement Stipulation, Settlement Stipulation, and Staff Memorandum Supporting Settlement Stipulation. On November 5, 2013, the Commission issued an Order Granting Joint Motion for Approval of Settlement Stipulation. On November 22, 2013, MDU filed its Refund Plan. On December 9, 2013, the Commission issued an Order Denying Proposed Refund Plan and Approving Alternative Plan. In its Order, the Commission directed MDU to employ the refund methodology approved for Black Hills Power in EL12-061. Following the Order, MDU advised that due to technology constraints, it would be unable to utilize that method. MDU now requests the Commission amend its Order dated December 9, 2013.

     TODAY, shall the Commission amend its December 9, 2013, Order? OR, how shall the Commission proceed?

South Dakota One Call

1.     NorthWestern Energy filed complaints against CenturyLink alleging that CenturyLink did not locate within the time period required by South Dakota law in dockets OC13-010, OC13-015, OC13-016 and OC13-017 

     OC13-010     In the Matter of the Complaint Filed by NorthWestern Energy, Huron, South Dakota, Against CenturyLink, Sioux Falls, South Dakota, for an Incident Occurring on June 27, 2013, in Redfield, South Dakota (Executive Director: Larry Janes; Staff Attorney: Kristen Edwards)

On June 28, 2013, NorthWestern Energy filed a complaint against CenturyLink alleging that CenturyLink did not locate within the time period required by South Dakota law. The One Call Enforcement Panel met on July 30, 2013, and determined that probable cause existed to believe that a violation did occur. The Panel recommended a penalty of $500.00, with $250.00 suspended based upon certain conditions. CenturyLink did not contest the recommendation. On October 10, 2013, the One Call Board issued an Order Adopting Enforcement Panel Recommendation and to Pursue Collection Action if Necessary. CenturyLink failed to satisfy the conditions of the suspended portion of the fine or to make payment of any portion of the fine. In accordance with SDCL § 49-7A-34, a demand letter for payment of the penalty was sent to CenturyLink on December 4, 2013.

      OC13-015     In the Matter of the Complaint Filed by NorthWestern Energy, Huron, South Dakota, Against CenturyLink, Sioux Falls, South Dakota for an Incident Occurring on July 17, 2013, at 1210 S. Ohlman St., Mitchell, S.D. (Executive Director: Larry Janes; Staff Attorney: Kristen Edwards)

On July 23, 2013, NorthWestern Energy filed a complaint against CenturyLink alleging that CenturyLink did not locate within the time period required by South Dakota law. CenturyLink responded to the complaint, admitting that locate request was not satisfied on time. The One Call Enforcement Panel met on August 29, 2013, and determined that probable cause existed to believe that a violation did occur. The Panel recommended a penalty of $2,000.00, with $1,000.00 suspended based upon certain conditions. CenturyLink did not contest the recommendation. On October 10, 2013, the One Call Board issued an Order Adopting Enforcement Panel Recommendation and to Pursue Collection Action if Necessary. CenturyLink failed to satisfy the conditions of the suspended portion of the fine or to make payment of any portion of the fine. In accordance with SDCL § 49-7A-34, a demand letter for payment of the penalty was sent to CenturyLink on December 4, 2013.

      OC13-016     In the Matter of the Complaint Filed by NorthWestern Energy, Huron, South Dakota, Against CenturyLink, Sioux Falls, South Dakota for an Incident Occurring on July 17, 2013, at 1123 S. Anderson St., Mitchell, S.D., for Locate Ticket 131960200 (Executive Director: Larry Janes; Staff Attorney: Kristen Edwards)

On July 23, 2013, NorthWestern Energy filed a complaint against CenturyLink alleging that CenturyLink did not locate within the time period required by South Dakota law. CenturyLink responded to the complaint, admitting that locate request was not satisfied on time. The One Call Enforcement Panel met on August 29, 2013, and determined that probable cause existed to believe that a violation did occur. The Panel recommended a penalty of $2,000.00, with $1,000.00 suspended based upon certain conditions. CenturyLink did not contest the recommendation. On October 10, 2013, the One Call Board issued an Order Adopting Enforcement Panel Recommendation and to Pursue Collection Action if Necessary. CenturyLink failed to satisfy the conditions of the suspended portion of the fine or to make payment of any portion of the fine. In accordance with SDCL § 49-7A-34, a demand letter for payment of the penalty was sent to CenturyLink on December 4, 2013.

      OC13-017     In the Matter of the Complaint Filed by NorthWestern Energy, Huron, South Dakota, Against CenturyLink, Sioux Falls, South Dakota for an Incident Occurring on July 17, 2013, at 1125 S. Anderson St., Mitchell, S.D., for Locate Ticket 131960205 (Executive Director: Larry Janes; Staff Attorney: Kristen Edwards)

On July 23, 2013, NorthWestern Energy filed a complaint against CenturyLink alleging that CenturyLink did not locate within the time period required by South Dakota law. CenturyLink responded to the complaint, admitting that locate request was not satisfied on time. The One Call Enforcement Panel met on August 29, 2013, and determined that probable cause existed to believe that a violation did occur. The Panel recommended a penalty of $2,000.00, with $1,000.00 suspended based upon certain conditions. CenturyLink did not contest the recommendation. On October 10, 2013, the One Call Board issued an Order Adopting Enforcement Panel Recommendation and to Pursue Collection Action if Necessary. CenturyLink failed to satisfy the conditions of the suspended portion of the fine or to make payment of any portion of the fine. In accordance with SDCL § 49-7A-34, a demand letter for payment of the penalty was sent to CenturyLink on December 4, 2013.

     TODAY, shall the Commission bring an action in the name of the State of South Dakota pursuant to SDCL 49-7A-28 for collection of the penalties in each of the above dockets? OR, how shall the Commission proceed?

Telecommunications

1.      TC13-136     In the Matter of the Approval of a Wireline Adoption Interconnection Agreement between Qwest Corporation dba CenturyLink QC and Onvoy, Inc. (Staff Attorney: Kristen Edwards)

On November 27, 2013, the Commission received a filing pursuant to 47 USC § 252 for approval of a Wireline Adoption Agreement between Qwest Corporation dba CenturyLink QC and Onvoy, Inc.

     TODAY, shall the Commission approve the adoption of the interconnection agreement?  

Leadership

1.     Election of a Chairperson and Vice Chairperson of the Commission (General Counsel: John Smith)

South Dakota Codified Law 49-1-8 states in part that, "The members of the Commission shall elect a chairperson by majority vote and prescribe his duties." SDCL 49-1-12 requires that, "Every vote and official action of the Public Utilities Commission shall be entered of record and its proceedings shall be public upon the request of either party or any person interested." SDCL 1-25-1 requires that all official meetings of Commission be open to the public. Accordingly, the determination of the Commission's leadership structure shall be made at this public meeting.

     TODAY, how shall the Commission provide for its Executive Leadership?

Items for Commission Discussion

Announcements

  1. The PUC offices will be closed Wednesday, January 1, 2014, in observance of the New Year's Day holiday.

  2. Commissioners will attend the Mid-America Regulatory Commissioners Retreat, January 9-11, 2014, at the InterContinental Hotel, Austin, Texas.

  3. Commissioners and staff will attend the South Dakota Ag Expo, January 15-16, 2014, at the Sioux Falls Convention Center, Sioux Falls, S.D.

  4. The PUC offices will be closed Monday, January 20, 2014, in observance of the Martin Luther King, Jr. Day holiday.

  5. Commissioners and staff will meet with representatives of NorthWestern Energy on Wednesday, January 22, 2014, at 9:30 a.m. CST     In the Floyd Matthew Training Center/Foss Building in Pierre, S.D. The agenda is to discuss the company's finance department overview, wholesale operations, South Dakota operations and customer care.

/S/Cindy Kemnitz
Cindy Kemnitz
Finance Manager
puc@state.sd.us
December 31, 2013