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South Dakota Public Utilities Commission Meeting
February 26, 2016, 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 Thursday, February 25, 2016. 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 Commission Meeting Held on February 12, 2016 (Staff: Joy Lashley)

Consumer Reports

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

Electric

1.     EL10-016     In the Matter of the Application of Great River Energy and Northern States Power Company dba Xcel Energy for a Permit to Construct a 10.6 Mile, 345 kV Transmission Line (CapX2020) in Brookings County Near White, South Dakota (Staff Attorney: Karen Cremer)

On November 23, 2010, the Commission received an application from Great River Energy and Northern States Power Company dba Xcel Energy (Applicant) for a permit to construct a 10.6 mile, 345 kV transmission line in Brookings County near White, South Dakota. On January 10, 2011, the Brookings County Commission filed an Application for Party Status. On January 28, 2011, the Commission granted party status to Brookings County. On June 17, 2011, the Commission issued an Order Granting Joint Motion for Approval of Settlement Stipulation and Granting Permit to Construct Facilities (Order) authorizing the construction of the Project subject to the terms and conditions set forth in the Settlement Stipulation which included the requirement that Applicant furnish an indemnity bond in the amount of $500,000 pursuant to SDCL 49-41B-38 to secure the restoration and repair of damage to roads and other public infrastructure. On June 6, 2013, Applicant filed the bond. On February 5, 2016, Applicant filed a letter requesting that the indemnity bond for the project be released. On February 12, 2016, the Commission deferred this matter. On February 18, 2016, GRE stated it would be filing a written release from the South Dakota Department of Transportation prior to the February 26, 2016, meeting.

TODAY, shall the Commission grant the request for release of construction bond and authorize the executive director or commission counsel to execute any necessary release documents to release Travelers Casualty and Surety Company of America Bond No. 105816545?

2.     EL15-040     In the Matter of the Request by Aberdeen Housing Authority for a Variance to the Separate Metering Requirement in ARSD 20:10:26:03(4) for a 40 Unit Multi-Family Housing Structure in Aberdeen, South Dakota (Staff Analyst: Darren Kearney; Staff Attorney: Adam de Hueck)

On October 1, 2015, Aberdeen Housing Authority filed a request for a variance of the individual metering requirement contained in ARSD 20:10:26. Aberdeen Housing Authority plans to build a 40-unit multi-family housing structure designed to provide affordable senior housing to the community of Aberdeen. Under the lease structure on this project, the landlord is going to pay all utilities. Therefore, Aberdeen Housing Authority is requesting to master meter the building for electrical and gas services. The Commission deferred action on this docket at its November 12, 2015, meeting. On November 19, 2015, Aberdeen Housing Authority filed a letter requesting a continuance of the docket in order to finalize its application for a master metering variance. The Commission approved the continuance on November 24, 2015. On February 3, 2016, Aberdeen Housing Authority filed its responses to Staff’s data requests.

TODAY, shall the Commission grant the Master Metering Variance request to Aberdeen Housing Authority?

3.     EL15-041     In the Matter of the Request by SF Housing Ministry, LLC for a Variance to the Separate Metering Requirement in ARSD 20:10:26:03(4) for a 39 Unit Multi-Family Housing Structure in Sioux Falls, South Dakota (Staff Analyst: Darren Kearney; Staff Attorney: Adam de Hueck)

On October 1, 2015, SF Housing Ministry, LLC filed a request for a variance of the individual metering requirement contained in ARSD 20:10:26. SF Housing Ministry plans to build a 39-unit multi-family housing structure designed to provide affordable housing to the community of Sioux Falls. Under the lease structure on this project, the landlord is going to pay all utilities. Therefore, SF Housing Ministry is requesting to master meter the building for electrical and gas services. The Commission deferred action on this docket at its November 12, 2015, meeting. On November 19, 2015, SF Housing Ministry, LLC filed a letter requesting a continuance of the docket in order to finalize its application for a master metering variance. The Commission pproved the continuance on November 24, 2015. On February 3, 2016, SF Housing Ministry, LLC filed its responses to Staff’s data requests.

TODAY, shall the Commission grant the Master Metering Variance request to SF Housing Ministry, LLC?

4.     EL15-049     In the Matter of the Application of Black Hills Power, Inc. for Approval of Tariff Revisions to its Line Extension Policy and Secondary Service Voltage Options (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen; Staff Attorney: Adam de Hueck)

On December 4, 2015, the Commission received an application from Black Hills Power, Inc. (BHP) to revise Section 5 (Rules and Regulations) of its South Dakota electric tariff to reflect changes to the line extension policy and secondary voltage options. BHP requests the tariff revisions become effective on March 1, 2016. On January 27, 2016, and February 2, 2016, BHP responded to Staff’s data requests.

TODAY, shall the Commission approve Black Hills Power, Inc.’s tariff revisions with an effective date of March 1, 2016?

5.     EL16-004     In the Matter of the Filing by MidAmerican Energy Company for Approval of Tariff Revisions to its Transmission Cost Recovery 2015 Reconciliation and New Factor Calculation (Staff Analysts: Eric Paulson, Lorena Reichert, Joseph Rezac; Staff Attorney: Kristen Edwards)

On February 12, 2016, the Commission received MidAmerican Energy Company’s (MEC) filing for approval of tariff revisions to its Transmission Cost Recovery 2015 Reconciliation and New Factor Calculation. MEC’s Transmission Cost Recovery mechanism was established in the company’s most recent rate case EL14-072. With this filing, MEC is establishing new TCR rates based on true ups to any over/under recovery from 2015, and for forecast over/under recovery for 2016. The new TCR factors are to be effective with the first April 2016 bill groups through the final March 2017 bill groups.

TODAY, shall the Commission assess a filing fee in the amount of up to $50,000 to account for actual expenses incurred in review of this filing commencing from the filing date?       

6.     EL16-005     In the Matter of the Application of Black Hills Power, Inc. dba Black Hills Energy for Approval of 2016 Transmission Facility Adjustment (Staff Analysts: Eric Paulson, Joseph Rezac; Staff Attorney: Kristen Edwards)

On February 16, 2016, Black Hills Power, Inc. dba Black Hills Energy (BHE) filed an Application for Approval of its 2016 Transmission Facilities Adjustment (TFA). BHE seeks approval of the annual true-up of the actual amounts collected in the second year of the TFA, as approved in Docket EL15-007, and the forecasted recovery of revenue requirements associated with the third year of the TFA. BHE proposes TFA rates effective June 1, 2016, through May 31, 2017. Approximately 68,000 South Dakota customers will be affected by the TFA rate change. The bill increase for a typical residential customer averaging 650 kWh per month will be approximately 0.02%.

TODAY, shall the Commission assess a filing fee in the amount of up to $50,000 to account for actual expenses incurred in review of this filing commencing from the filing date?       

7.     EL16-006     In the Matter of the Application of Black Hills Power, Inc. dba Black Hills Energy for Approval of its 2016 Environmental Improvement Adjustment (Staff Analysts: Brittany Mehlhaff, Lorena Reichert; Staff Attorney: Kristen Edwards)

On February 16, 2015, Black Hills Power, Inc. dba Black Hills Energy (BHE) filed an Application for Approval of its 2016 Environmental Improvement Adjustment (EIA). BHE is proposing to include costs related to the Neil Simpson II ESP Upgrade Project, the Gillette Energy Complex Compressed Air System Upgrade Project, and the Amended Silicates Silo Projects. The Company proposes a June 1, 2016, effective date. Approximately 68,000 South Dakota retail customers are affected by the EIA rate change. The annual net increase in the cost of service as proposed by BHE is approximately $117,000. The average bill impact for a typical residential electric customer using 650 kWh is approximately 0.05%.

TODAY, shall the Commission assess a filing fee up to the amount of $50,000 to account for actual expenses incurred in review of this filing commencing from the filing date?

Natural Gas

1.     NG16-001     In the Matter of the Filing by Montana-Dakota Utilities Co. for Approval of its Revised Conservation Tracking Adjustment (Staff Analyst: Joseph Rezac; Staff Attorney: Adam de Hueck)

On January 28, 2016, the Commission received an application by Montana-Dakota Utilities Co. for approval of a revised Conservation Tracking Adjustment (CTA), pursuant to the terms of the Company’s Conservation Program Tracking Mechanism Rate 90 tariff. The company proposed a CTA rate, applicable to service under Rates 60, 70 and 72 of $0.024 per dk to be effective March 1, 2016. The proposed CTA rate is a decrease of $0.004 per dk from the currently authorized CTA rate.

TODAY, shall the Commission grant Montana-Dakota Utilities Co.’s request for approval of the Revised Conservation Program Tracking Mechanism Rate 90 Tariff effective March 1, 2016?

Telecommunications

1.     TC16-001     In the Matter of the Petition of IM Telecom, LLC dba Infiniti Mobile for Designation as an Eligible Telecommunications Carrier and Waiver (Staff Analyst: Lorena Reichert; Staff Attorney: Adam de Hueck)

On January 19, 2016, the Commission received an Application for Designation as an Eligible Telecommunications Carrier from IM Telecom, LLC dba Infiniti Mobile throughout the State of South Dakota. Infiniti Mobile seeks ETC designation solely to provide Lifeline service to qualifying South Dakota households; it will not seek access to funds from the federal Universal Service Fund for the purpose of providing service to high-cost areas. Infiniti Mobile requests a waiver of ARSD 20:10:32:43.02 and ARSD 20:10:32:54(1-2). On February 5, 2016, the South Dakota Telecommunications Association (SDTA) filed a Petition to Intervene. On February 10, 2016, IM Telecom filed an amendment to its application in regard to service areas. On February 16, 2016, the SDTA filed a letter requesting withdrawal of its petition to intervene.

TODAY, shall the Commission grant SDTA’s request to withdraw its petition to intervene?

Items for Commission Discussion

Announcements

  1. PUC commissioners and staff will meet with consumers at the Sioux Empire Home Show, March 4-6, 2016, at the Sioux Falls Convention Center & Arena, Sioux Falls, S.D.

  2. PUC commissioners and staff will meet with consumers at the Black Hills Home Builders Association Home Show, March 11-13, 2016, at the Rushmore Plaza Civic Center, Rapid City, S.D.

  3. The next regularly scheduled commission meeting will be Tuesday, March 15, 2016, at 1:00 p.m. CDT in Room 413 at the State Capitol, Pierre, S.D.

  4. Commission meetings are scheduled for March 30 and April 11, 2016

 

/s/Cindy Kemnitz     
Cindy Kemnitz
Finance Manager
PUC Email
February 19, 2016