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South Dakota Public Utilities Commission Meeting
November 21, 2017, 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, November 20, 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 Ad Hoc Commission Meeting Held on October 25, 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. 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. On November 3, 2017, Xcel filed an updated 2018 TCR Rider, TCR rate factor, and tracker account report.
TODAY, shall the Commission approve the TCR rate factor and updated tariff sheet with an effective date of January 1, 2018?
2. EL17-045 In the Matter of the Application of Black Hills Power, Inc. dba Black Hills Energy for Approval of a Revision to the Energy Efficiency Solutions Adjustment Rates (Staff Analysts: Darren Kearney, Joseph Rezac; Staff Attorney: Amanda Reiss)
On October 16, 2017, Black Hills Power, Inc. dba Black Hills Energy (BHP) filed for approval of a revision to its Energy Efficiency Solutions Adjustment (EESA) Rates. On October 30, and November 13, 2017, BHP filed responses to Staff’s data requests. BHP requests approval to reduce its EESA rates effective December 1, 2017. Specifically, BHP proposes to reduce the residential service EESA rate of $0.0007/kWh to $0.0003/kWh and the commercial and industrial services EESA rate of $0.0013/kWh to $0.0012/kWh. BHP also filed its Energy Efficiency Plan Status Report for Program Year 2016 and Balancing Account for Program Year 2016.
TODAY, shall the Commission approve the Energy Efficiency Solutions Program Status Report for Program Year 2016? AND, shall the Commission approve the balancing account for Program Year 2016, including the performance incentive recovery? AND, shall the Commission approve the Energy Efficiency Solutions Adjustment rates of $0.0003/kWh for residential service and $0.0012/kWh for commercial and industrial services, effective December 1, 2017, and associated tariff sheets? OR, how shall the Commission proceed?
3. EL17-048 In the Matter of the Petition of Otter Tail Power Company for Approval of the Transmission Cost Recovery Rider Rate (Staff Analysts: Brittany Mehlhaff, Lorena Reichert; Staff Attorney: Amanda Reiss)
On November 1, 2017, Otter Tail Power Company (Otter Tail) filed a petition for approval of its 2018 Transmission Cost Recovery (TCR) Rider. Otter Tail’s TCR rate has been adjusted to reflect the TCR revenue requirements for the next recovery period (March 2018 – February 2019). The update includes the tracker balance estimated for the end of the current recovery period so that no over- or under-recovery of TCR costs occurs. The update also includes details of the Midcontinent Independent System Operator Return on Equity complaints.
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. NG17-014 In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of a Contract with Deviations (Staff Analysts: Patrick Steffensen, Eric Paulson; Staff Attorney: Amanda Reiss)
On October 12, 2017, the Commission received a filing from NorthWestern Energy Corporation dba NorthWestern Energy (NorthWestern) for approval of a Contract with Deviations with Ag Processing Inc. (AGP) and removal of an expired contract with AMPI - Freeman. AGP will be a new customer on NorthWestern’s natural gas system. The purpose of this filing is to provide a contracted lower rate for AGP who has the option to bypass the NorthWestern system and direct connect with the transmission pipeline as well as to remove an expired contract that is currently listed in the tariff. NorthWestern proposes a December 1, 2017, effective date for the revised tariff sheet. On October 30, 2017, NorthWestern filed a revised tariff sheet.
TODAY, shall the Commission approve the Contract with Deviations and the associated tariff revisions with an effective date of December 1, 2017?
2. NG17-015 In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of its Refund Plan regarding its Recovery of Manufactured Gas Plant Site Remediation Costs (Staff Analysts: Brittany Mehlhaff, Eric Paulson; Staff Attorney: Amanda Reiss)
On October 31, 2017, the Commission received a petition by NorthWestern Energy Corporation dba NorthWestern Energy (NorthWestern) for approval of its refund plan regarding its recovery of the manufactured gas plant (MGP) site remediation costs. The purpose of this filing is to update the refund mechanism established in NG16-010 where NorthWestern credited customers an over-collection related to MGP remediation allowed in docket NG11-003. Through the first 10 months of the tracker established in NG16-010, NorthWestern has refunded approximately $4.0 million with a balance of approximately $2.1 million remaining in the tracker to be refunded. NorthWestern notes that actual remediation costs have come in lower than the amount recovered through the tracker. NorthWestern proposes to continue the refund plan for an additional 12 months at lower credit rates than are currently in effect. The Company proposes a December 1, 2017, effective date for the new credit rates.
TODAY, shall the Commission approve NorthWestern’s Refund Plan regarding its Recovery of Manufactured Gas Plant Site Remediation Costs with an effective date of December 1, 2017?
Telecommunications
1. In the Matter of the Failure of Certain Telecommunications Companies to Timely Pay their Gross Receipts Tax (Finance Manager: Cindy Kemnitz)
The following companies have failed to timely pay their gross receipts tax as required by SDCL 49-1A:
Long Distance Providers:
Business Discount Plan Inc.
CSDVRS LLC
iNetworks Group Inc.
NECC Telecom Inc.
VoIP Provider:
Telnyx
Wireless Providers:
Patriot Mobile LLC
Tempo Telecom LLC
TODAY, shall the Commission issue an Order to Show Cause as to why the Commission should not fine, and/or suspend or revoke the Certificates of Authority of each of these companies for failure to pay the requisite gross receipts tax?
2. TC17-063 In the Matter of the Petition for a Declaratory Ruling by Department of Public Safety/911 Coordination Board regarding Determining Responsibility for Rural Carrier Interconnection to the Next Generation 9-1-1 System (Staff Analysts: Joseph Rezac, Patrick Steffensen; Staff Attorneys: Kristen Edwards, Amanda Reiss)
On October 27, 2017, the Commission received a Petition for a Declaratory Ruling from the South Dakota Department of Public Safety, 911 Coordination Board, to resolve the following issue: Whether it is NextGen Communications, Inc. (NextGen) or the rural carriers comprising South Dakota Telecommunications Association (SDTA) that has the responsibility to transport 911 traffic between the rural carriers’ service areas and NextGen’s centralized points of interconnection. On October 30, 2017, NextGen and SDTA each filed petitions to intervene in the docket. On November 7, 2017, the Commission granted intervention to NextGen and SDTA. On November 9, 2017, South Dakota Network, LLC (SDN) filed a petition to intervene in the docket.
TODAY, shall the Commission grant intervention to any parties that may have filed?
3. TC17-064 In the Matter of the Approval of a Wireline Interconnection Agreement between Midcontinent Communications, Inc. and Valley Communications Cooperative Association, Inc. (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)
On October 30, 2017, the Commission received a filing pursuant to 47 U.S.C. § 252, for approval of an Interconnection Agreement between Midcontinent Communications, Inc. and Valley Communications Cooperative Association, Inc. for the State of South Dakota.
TODAY, shall the Commission approve the Interconnection Agreement?
Items for Commission Discussion
In order to qualify the Sweetland Wind Farm for the full federal Production Tax Credit (PTC), Sweetland Wind Farm, LLC (Sweetland) contracted with a third party to excavate three planned turbine foundation sites and to construct approximately 2,300 linear feet of 14-foot-wide access road between the three excavations. At the time of undertaking the PTC-qualification work, Sweetland representatives stated they were not aware that an energy facility permit from the South Dakota Public Utilities Commission (Commission) was required before conducting such work. Sweetland representatives met with PUC staff after learning of the oversight and requested an opportunity to inform the Commission of the situation. Sweetland appeared before the Commission on November 7, 2017.
Announcements
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The PUC office will be closed November 23-24, 2017, in observance of the Thanksgiving holiday.
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A public input hearing for docket EL17-042 - In the Matter of the Application of Otter Tail Power Company for an Energy Conversion Facility Permit for the Construction of a Combustion Turbine Generator and Associated Infrastructure Including a Natural Gas Pipeline and Electric Transmission Line near Astoria, South Dakota, will be held Monday, November 27, 2017, at 6:30 p.m. CST in the Deubrook Elementary School Gymnasium, Toronto, S.D.
- The next regularly scheduled commission meeting will be Tuesday, December 5, 2017, at 9:30 a.m. CST in Room 413 at the State Capitol Building, Pierre, S.D.
- A public input hearing for docket EL17-047 - In the Matter of the Application of Crowned Ridge Wind, LLC for a Facility Permit to Construct a 230-kV Transmission Line and Associated Facilities from Codington County to the Big Stone South Substation, will be held Wednesday, December 13, 2017, at 6:30 p.m. CST in the Milbank High School Theater, Milbank, S.D. 11/21/17 update: This public input hearing has been cancelled.
- Commission meetings are scheduled for December 19, 2017, and January 3, 2018.
/s/Cindy Kemnitz .
Cindy Kemnitz
Finance Manager
PUC Email
November 14, 2017
