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South Dakota Public Utilities Commission Meeting
September 12, 2017, 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, September 11, 2017. 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 Meetings Held on August 15 and August 29, 2017 (Staff: Joy Lashley)

Consumer Reports

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

Electric

1.     EL16-037     In the Matter of Commission Staff’s Request to Investigate Northern States Power Company dba Xcel Energy’s Proposed Fuel Clause Rider (Staff Analysts: Jon Thurber, Brittany Mehlhaff; Staff Attorney: Kristen Edwards)

On November 30, 2016, Northern States Power Company dba Xcel Energy (Xcel) filed its monthly fuel clause rider (FCR), to be effective December 1, 2016. On November 30, 2016, Staff filed a Petition to suspend the rider for 180 days to allow adequate time for Staff to evaluate whether certain Purchase Power Agreements requested for cost recovery through the FCR are reasonable and cost effective. On May 8, 2017, Staff filed a Motion and Brief for Order to Show Cause Why Certain Costs Included In Proposed Fuel Clause Rider Should not be Disallowed (Motion). On May 25, 2017, the Commission issued An Order to Show Cause. Xcel and Staff each filed prefiled testimony. On August 22, 2017, the Parties filed a Settlement Stipulation and Joint Motion for Approval of Settlement Stipulation. On August 28, 2017, Staff filed Staff’s Memorandum Supporting Settlement Stipulation. 

     TODAY, shall the Commission grant the Joint Motion for Approval of Settlement Stipulation and adopt the Stipulation without modification, with an FCR effective date of October 1, 2017? AND, shall the Commission require Xcel to file (1) a compliance filing that provides the amount that customers will be refunded associated with the Aurora project proxy pricing back to December 1, 2016; and (2) a docket with a proposal to mitigate the potential FCR rate volatility associated with the unrecovered amount in the balancing account? OR, how shall the Commission proceed?

2.     EL17-029     In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of Tariff Revisions Regarding Changes to Bill Forms and Bill Backs (Staff Analysts: Darren Kearney, Joseph Rezac; Staff Attorney: Amanda Reiss)

On July 27, 2017, Northern States Power Company dba Xcel Energy (Xcel) filed a Petition with the Commission for approval of miscellaneous tariff revisions. Xcel plans to change its call center hours of operation for non-emergencies from 24 hours a day/7 days a week to 7:00 a.m. to 7:00 p.m. Monday through Friday and 9:00 a.m. to 5:00 p.m. Saturday. The change does not affect electric outage and natural gas emergency calls. The purpose of this Petition is to update all tariff sheets that reference the call center’s hours of operation with the proposed hours. Xcel requests the revised tariffs be effective on the date of the Order approving this Petition, or, on the date Xcel implements the change in it non-emergency business hours, whichever is later.

     TODAY, shall the Commission approve the proposed tariff revisions?

3.     EL17-030     In the Matter of the Filing by Northern States Power Company dba Xcel Energy for Approval of Revised Welcome Brochures (Staff Analysts: Darren Kearney, Joseph Rezac; Staff Attorney: Amanda Reiss)

On July 27, 2017, Northern States Power Company dba Xcel Energy (Xcel) filed revised welcome brochures for Commission approval. The welcome brochure is furnished to each new South Dakota customer per ARSD 20:10:16:02. The brochure was redesigned to improve the customer experience while still including the required information outlined within the rule.  

     TODAY, shall the Commission approve the revised welcome brochures?

4.     EL17-035     In the Matter of the Petition of Otter Tail Power Company for Approval of the Environmental Cost Recovery Rider Charge (Staff Analysts: Eric Paulson, Joseph Rezac; Staff Attorney: Amanda Reiss)

On August 31, 2017, the Commission received a petition by Otter Tail Power Company (Otter Tail) for approval of its annual update to the Environmental Cost Recovery (ECR) Rate under Otter Tail’s Environmental Cost Recovery Rider, Rate Schedule 13.08, for the actual and forecasted cost and revenue through the recovery period of November 2017 through October 2018 for Big Stone Plant’s Air Quality Control System and Hoot Lake Plant’s Mercury and Air Toxics Standards. Otter Tail states the rate impact of this request (for both projects) will decrease the ECR Rider Rate from $0.00536 per kWh to $0.00484 per kWh. The bill decrease for a typical residential customer averaging 955 kWh per month will be approximately $0.50 or 0.56 percent.

     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?

5.     EL17-036     In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of its 2018 Transmission Cost Recovery Eligibility and Rate Adjustment (Staff Analysts: Patrick Steffensen, Lorena Reichert; Staff Attorney: Kristen Edwards)

On September 1, 2017, the Commission received a petition from Northern States Power Company dba Xcel Energy (Xcel) for approval of its 2018 Transmission Cost Recovery (TCR) Rider, TCR rate factor, and tracker account report. For 2018, Xcel proposes recovery of the South Dakota jurisdictional portion of the revenue requirements related to 15 transmission projects located throughout its service territory. Xcel does not propose to include any new projects for 2018. Xcel proposes to recover $6.72 million associated with these projects for the 2018 calendar year. Included in the $6.72 million figure is the 2017 over-collection balance of $609,328. The total of the transmission investment costs and the tracker balance results in an average bill impact of $2.38 per month for a typical residential electric customer using 750 kWh per month. This is a decrease of $0.34 per month from the current TCR Rider recovery. Xcel proposes to implement a rate of $0.003175 per kWh applied to all energy billed to each customer class beginning January 1, 2018, through December 31, 2018. This represents a decrease of $0.000452 from the existing rate of $0.003627 per kWh.

     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?

Natural Gas

1.     NG17-010      In the Matter of the Application by Montana-Dakota Utilities Co. for Approval of its Revised Transportation Service Rates 81 and 82 and Gas Transportation Agreement (Staff Analyst: Eric Paulson; Staff Attorney: Amanda Reiss)

On June 7, 2017, the Commission received an application from Montana-Dakota Utilities Co. (MDU) for approval of its revised Transportation Service Rates 81 and 82 and Gas Transportation Agreement. MDU proposes the revisions to remove duplication of provisions in the Tariff and Agreement, simplify the balancing provision, and update the Tariff to reflect current practices and procedures of MDU. On June 27, 2017, the Company responded to Staff’s data request.

     TODAY, shall the Commission approve the Revised Transportation Service Rates 81 and 82 and Gas Transportation Agreement?

2.     NG17-011      In the Matter of the Filing by MidAmerican Energy Company for Approval of Tariff Revisions regarding Farm Tap Service (Staff Analysts: Brittany Mehlhaff, Mary Zanter, Patrick Steffensen; Staff Attorneys: Kristen Edwards, Amanda Reiss)

On July 24, 2017, MidAmerican Energy Company (MidAmerican) filed a letter requesting a docket be opened to consider a proposal that would allow MidAmerican to provide services to a number of farm tap customers connected to an interstate pipeline owned and operated by Northern Natural Gas Company (Northern), as a result of discussions between MidAmerican and Commission Staff (Staff). On August 23, 2017, the Commission issued an Order Approving Tariff Revisions on Less than 30 Days’ Notice. On August 31, 2017, MidAmerican filed a letter updating the Commission on the process MidAmerican is taking to implement the proposal approved by the Commission. In this letter, MidAmerican stated that customers will sign a contract identifying responsibility for payment for the customer share of the safety checks as well as any repairs that may be necessary on the customer-owned facilities performed by MidAmerican. MidAmerican intends to file this contract for Commission approval in advance of the September 12, 2017, Commission meeting.  

     TODAY, shall the Commission approve the contract identifying responsibility for payment for the customer share of the safety checks as well as any repairs that may be necessary on the customer-owned facilities performed by MidAmerican? OR, how shall the Commission proceed?

Telecommunications

1.     In the Matter of Request for Certification Regarding the Use of Federal Universal Service Support in Dockets TC17-033, TC17-038, TC17-048, TC17-049, TC17-052 and TC17-054
     
     TC17-033     In the Matter of the Request of Qwest Corporation dba CenturyLink QC Study Area: 395145 for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

On June 27, 2017, the Commission received an application from Qwest Corporation dba CenturyLink QC requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company. On July 27, 2017, the Company responded to Staff’s data request. On August 25, 2017, CenturyLink filed responses to Commissioner Nelson’s questions from the August 15, 2017, Commission Meeting.

     TC17-038     In the Matter of the Request of Fort Randall Telephone Company and Mount Rushmore Telephone Study Area: 391660 for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

     On June 29, 2017, the Commission received an application from Fort Randall Telephone Company and Mount Rushmore Telephone requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company. On August 14, 2017, the Company responded to Staff’s data request.
     
     TC17-048     In the Matter of the Request of City of Brookings Municipal Telephone Study Area: 391650 for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

On June 30, 2017, the Commission received an application from the City of Brookings Municipal Telephone requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company. On August 23, 2017, the Company responded to Staff’s data request.

     TC17-049     In the Matter of the Request of Brookings Municipal Telephone dba Swiftel Communications Study Area: 399009 for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

On June 30, 2017, the Commission received an application from Brookings Municipal Telephone dba Swiftel Communications requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company. On August 23, 2017, the Company responded to Staff’s data request.

     TC17-052     In the Matter of the Request of Venture Communications Cooperative Study Area: Venture Communication Cooperative–391680 and Western Telephone Co.–391688 for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

On June 30, 2017, the Commission received an application from Venture Communications Cooperative and Western Telephone Company requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company. On August 18, 2017, the Company responded to Staff’s data request.

     TC17-054     In the Matter of the Request of Jefferson Telephone Company Study Area: 391666 for Certification Regarding Its Use of Federal Universal Service Support (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)

On July 5, 2017, the Commission received an application from Jefferson Telephone Company requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company. On August 31, 2017, the Company responded to Staff’s data request.

     TODAY, shall the Commission provide a certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the use of Federal Universal Service Support in each of the above dockets?   

2.     TC17-044     In the Matter of the Request of Clarity Telecom, LLC dba Vast Broadband Study Area: ILEC–391652 and CLEC–399006 for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Lorena Reichert; Staff Attorney: Kristen Edwards)

On June 30, 2017, the Commission received an application from Clarity Telecom, LLC dba Vast Broadband requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company. On August 11, 2017, the Company responded to Staff’s data requests. The Commission deferred the matter at the August 29 meeting.

      TODAY, shall the Commission provide a certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the use of Federal Universal Service Support for Clarity Telecom, LLC? OR, how shall the Commission proceed?

3.     TC17-061     In the Matter of the Application of City of Brookings Municipal Telephone dba Swiftel Communications for an Amended Certificate of Authority (Staff Analyst: Lorena Reichert; Staff Attorney: Kristen Edwards)

On August 11, 2017, City of Brookings Municipal Telephone dba Swiftel Communications (Swiftel) filed an application for an Amended Certificate of Authority for local exchange service pursuant to SDCL 49-31-69. Pursuant to two resolutions by the Mayor of the City of Brookings that annexed new areas into the city, Swiftel requests to add new telephone service territory currently held by Interstate Telecommunications Cooperative (ITC). ITC does not object to Swiftel’s request. Swiftel also requests the Commission waive ARSD 20:10:32:03 (1-8); (10-22); and (24).

     TODAY, shall the Commission approve the request for waiver? AND shall the Commission approve the request for an Amended Certificate of Authority? 

Items for Commission Discussion

Announcements

  1. Commissioners and staff will meet with representatives of the Midcontinent Independent System Operator on Tuesday, September 12, 2017, at 1:30 p.m. CDT in Room 413 at the State Capitol Building, Pierre, S.D. The agenda is to discuss cost allocation, cost allocation reform and energy storage.

  2. A public input hearing for Docket EL17-028 - In the Matter of the Application by Crocker Wind Farm, LLC for a Permit of a Wind Energy Facility and a 345 kV Transmission Line in Clark County, South Dakota, for Crocker Wind Farm will be held Wednesday, September 13, 2017, at 6:30 p.m. CDT in the Clark Elementary School Gymnasium, 200 Second Avenue NW, Clark, S.D.

  3. Commissioners will attend the Sioux Valley Energy Take Action Forum on Thursday, September 14, 2017, at 5:30 p.m. CDT at the Holiday Inn Express Convention Center, Brandon, S.D.

  4. The next regularly scheduled commission meeting will be Tuesday, September 26, 2017, at 9:30 a.m. CDT in Room 414 at the State Capitol Building, Pierre, S.D.

  5. Commission meetings are scheduled for October 11 and 24, 2017.

/s/Cindy Kemnitz     .
Cindy Kemnitz
Finance Manager
PUC Email
September 6, 2017