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South Dakota Public Utilities Commission Meeting
December 19, 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, December 18, 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 November 21 and December 5, 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. EL16-021 In the Matter of the Complaint by Consolidated Edison Development, Inc. against NorthWestern Corporation dba NorthWestern Energy for Establishing a Purchase Power Agreement (Staff Analysts: Jon Thurber, Darren Kearney, Joseph Rezac; Staff Attorneys: Amanda Reiss, Kristen Edwards)
On June 23, 2016, Juhl Energy, Inc. (Juhl) filed a complaint seeking resolution of a dispute with NorthWestern Corporation dba NorthWestern Energy (NorthWestern) regarding the proper avoided cost for a long-term electric power purchase agreement. On August 4, 2016, the parties filed a joint request for a procedural schedule. At its regularly scheduled meeting on August 16, 2016, the Commission established a procedural schedule. On October 24, 2016, Juhl submitted a request for confidential treatment of responses to NorthWestern Energy discovery requests 1-29 and 1-31. On February 1, 2017, Consolidated Edison Development, Inc. (ConEd Development) filed a notice of appearance and motion to amend complaint based on ConEd Development’s acquisition of Juhl’s interest in the three wind energy projects (projects) that are the subject of this docket. At its regularly scheduled meeting on February 10, 2017, the Commission granted ConEd Development’s motion to amend its complaint. An evidentiary hearing was held on April 11 through April 12, 2017. ConEd Development’s post hearing brief was submitted on May 17, 2017. Both NorthWestern and staff responded on June 7, 2017. ConEd Development’s reply brief was submitted on June 26, 2017. During regularly scheduled Commission meetings, the parties appeared before the Commission on August 1 and August 15, 2017. On August 10, 2017, a stipulation allowing supplemental evidence was filed by the parties. On August 24, 2017, NorthWestern filed updated avoided cost calculations. On November 30, 2017, ConEd Development filed a motion for entry of order concluding case.
TODAY, shall the Commission grant the motion for entry of order concluding case? OR, how shall the Commission proceed?
2. EL17-019 In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of Its 2016 Demand Side Management Report and 2018 Proposed Demand Side Management Plan (Staff Analysts: Darren Kearney, Lorena Reichert; Staff Attorney: Amanda Reiss)
On April 29, 2017, the Commission received a petition from Northern States Power Company dba Xcel Energy (Xcel) requesting approval of the 2016 demand side management (DSM) status report and 2018 DSM Plan. Specifically, Xcel requests approval of its 2016 DSM Tracker account, the incentive earned for 2016 program performance, the proposed 2018 DSM cost adjustment factor of $0.000515 per kWh, and the proposed DSM plan for 2018. On October 12, 2017, Xcel filed an updated petition and revisions to the proposed 2018 DSM plan. On October 13, 2017, Xcel filed its responses to staff’s data requests and revised the proposed 2018 DSM cost adjustment factor from $0.000515 per kWh to $0.000510 per kWh. Xcel requests an effective date of January 1, 2018, for the DSM cost adjustment factor. The Commission deferred the matter at its December 5, 2017, meeting.
TODAY, shall the Commission approve Xcel Energy’s 2016 DSM status report and tracker account, the performance incentive earned for 2016, the proposed 2018 DSM plan, and the proposed 2018 DSM cost adjustment factor of $0.000510 per kWh with a January 1, 2018, effective date?
3. EL17-032 In the Matter of the Filing by Northern States Power Company dba Xcel Energy for Approval of Tariff Revisions to its Rates for Small Power Production and Cogeneration (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)
August 4, 2017, the Commission received an application from Northern States Power Company dba Xcel Energy (Xcel) for approval of revisions to Xcel’s tariff rate sheets for cogeneration and small power production services, specifically occasional delivery energy service and time of delivery energy service rates, pursuant to docket No F-3365. On October 31, 2017, and November 27, 2017, Xcel responded to staff’s data requests.
TODAY, shall the Commission approve Xcel Energy’s tariff revisions?
4. EL17-039 In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of its 2018 Infrastructure Rider Project Eligibility and Factor Update (Staff Analysts: Eric Paulson, Joseph Rezac; Staff Attorney: Amanda Reiss)
On September 29, 2017, the Commission received a petition from Northern States Power Company dba Xcel Energy (Xcel) for approval of its 2018 infrastructure rider project eligibility, revised adjustment factor, and tracker account report. Xcel requests approval of project eligibility for three additional projects included in the Docket EL14-058 settlement agreement Exhibit C that are not already included in the rider; project eligibility of five additional projects; the infrastructure rider tracker report and true-up for the 2017 revenue requirements of approved project investment and the proposed newly added projects; 2018 infrastructure rider revenue requirements of $11.4 million; an updated infrastructure rider adjustment factor of $0.005367 per kWh; proposed revision to the infrastructure rider tariff sheet; and proposed customer notice. Xcel proposes a January 1, 2018, effective date. Xcel states the average bill impact for a residential customer using 750 kWh per month will be increased to $4.03 per month compared to the current average residential bill impact of $4.00 per month under the current rate. On November 29, 2017, Xcel filed a revised infrastructure filing and attachments reflecting the removal of Black Dog unit 6 and correction of an omission of a project on Attachment 5.
TODAY, shall the Commission approve the proposed projects as eligible for recovery and approve the infrastructure rider adjustment factor of $0.005181 per kWh and revised tariff sheet with an effective date of January 1, 2018?
5. EL17-040 In the Matter of the Filing of MidAmerican Energy Company for Determination of its Energy Cost Adjustment Factor as Applied to Repowered Wind Facilities (Staff Analyst: Patrick Steffensen; Staff Attorney: Amanda Reiss)
On September 29, 2017, the Commission received MidAmerican Energy Company’s (MidAmerican) filing for determination of its energy cost adjustment factor as applied to repowered wind facilities. MidAmerican is currently in the process of repowering up to 706 existing wind turbines, which will qualify for new production tax credits (PTCs) under guidance from the IRS. With this filing, MidAmerican requests a ruling identifying that the new PTCs will not be subject to the provisions of MidAmerican’s Energy cost adjustment tariff. On November 8, 2017, MidAmerican responded to staff’s data requests.
TODAY, shall the Commission determine the new production tax credits are not subject to the provisions of MidAmerican Energy Company’s energy cost adjustment tariff?
6. EL17-046 In the Matter of the Filing by Montana-Dakota Utilities Co. for Approval of Tariff Revisions to its Rates for Rate 95, Rate 96 and Rate 97 (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)
On October 19, 2017, Montana-Dakota Utilities Co. (MDU) filed for approval of tariff revisions for rate 95 (occasional power purchase non-time differentiated) and Rate 96 (short-term power purchase). This filing updates the energy and capacity payments. MDU states it currently has only one customer taking service under these rates and the annual change in revenue due to this filing will be minimal. A January 1, 2018, effective date is requested. On November 21, 2017, MDU filed its responses to staff’s data request.
TODAY, shall the Commission approve Montana-Dakota Utilities Co.’s tariff revisions with an effective date of January 1, 2018?
7. EL17-050 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 (Staff Analysts: Darren Kearney, Jon Thurber; Staff Attorneys: Kristen Edwards, Amanda Reiss)
On December 5, 2017, the South Dakota Public Utilities Commission (Commission) received a facility permit application from Crowned Ridge Wind, LLC (Crowned Ridge). Crowned Ridge proposes to construct a new reactive power compensation substation and an approximately 34-mile 230-kilovolt generation tie line that will connect two 300 megawatt wind projects (Crowned Ridge Wind and Crowned Ridge Wind II) to the Big Stone South substation owned by Otter Tail Power Company. Together the new reactive power compensation substation and 34-mile generation tie line are the project. The planned Crowned Ridge Wind facilities will be permitted separately and are not included as a part of the project. The generation tie line will be located in Codington and Grant counties, South Dakota, while the new reactive compensation substation will be located in Grant County. The project is expected to be in service by December 31, 2019. Crowned Ridge estimates the total construction cost to be approximately $30 million for a single circuit transmission line plus approximately $8.5 million for the associated substation, or $40 million for a double circuit transmission line plus approximately $8 million for the associated substation.
TODAY, shall the Commission assess a filing fee not to exceed $120,000 with an initial deposit of $8,000? And shall the Commission authorize the Executive Director to enter into necessary consulting contracts?
Gas and Electric
1. GE17-002 In the Matter of the Filing by MidAmerican Energy Company for the Approval of Energy Efficiency Plan for 2018-2022 (Staff Analysts: Darren Kearney, Lorena Reichert; Staff Attorney: Amanda Reiss)
On July 31, 2017, the Commission received an application from MidAmerican Energy Company (MidAmerican) requesting approval of its 2018-2022 energy efficiency plan. The currently effective energy efficiency plan was approved by the Commission in Docket GE12-005 and expires at the end of 2017. On November 13, 2017, MidAmerican responded to staff’s data request.
TODAY, shall the Commission approve MidAmerican Energy Company’s 2018-2022 energy efficiency plan?
Natural Gas
1. 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 October 30, 2017, the Commission issued an order approving tariff revisions. The tariff revisions approved by the Commission include a requirement for initial safety inspections of the customer-owned farm tap facilities prior to commencing service with MidAmerican. In the event the customer-owned service line does not comply with the safety requirements outlined in the tariff, the service line must be repaired or replaced before the customer may begin taking service. MidAmerican has remained in contact with staff during this transition period. A number of customers have not responded to MidAmerican’s communications and as such MidAmerican does not know the customers’ intentions for transitioning to MidAmerican service and safety inspections have not been completed. In addition, some customers that have failed the safety inspection process have not responded to MidAmerican on how they would like to proceed and therefore the service lines have not been repaired. Customers whose facilities have not been inspected or have not repaired necessary service lines will not meet the requirements of MidAmerican’s tariff to begin service January 1, 2018. NorthWestern Corporation dba NorthWestern Energy will cease to provide services after December 31, 2017, upon the expiration of its contract with Northern. As the owner and operator of the transmission pipeline, Northern has indicated it will shut off customer valves soon after January 1, 2018. At this time, the parties have not reached a solution to avoid customer gas service being turned off in January 2018. After a discussion at the December 5, 2017, Commission meeting, staff agreed to do further research on the applicability of master metering and winter disconnection rules. Staff intends to file additional information in the docket prior to the Commission meeting.
TODAY, how shall the Commission proceed?
2. NG17-016 In the Matter of the Filing by Montana-Dakota Utilities Co. for Approval of Its South Dakota Natural Gas Conservation Portfolio Plan for 2018-2020 (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)
On November 9, 2017, Montana-Dakota Utilities Co. (MDU) filed for Commission approval of its South Dakota natural gas conservation programs for calendar years 2018-2020. The proposed portfolio is a continuation of the current portfolio with revisions to its programmable thermostat offerings. MDU requests approval by January 1, 2018.
TODAY, shall the Commission approve Montana-Dakota Utilities Co.’s proposed portfolio of natural gas conservation programs for calendar years 2018-2020?
Telecommunications
1. TC17-065 In the Matter of the Application of Peerless Network of South Dakota, LLC for a Certificate of Authority to Provide Local Exchange and Interexchange Long Distance Services in South Dakota (Staff Analyst: Eric Paulson; Staff Attorney: Amanda Reiss)
On October 31, 2017, the Commission received a filing from Peerless Network of South Dakota, LLC (Peerless) for a certificate of authority to provide local exchange and interexchange long distance services in South Dakota. Peerless intends to provide local exchange services in the non-rural areas of CenturyLink’s areas and interchange service on a statewide basis. On November 13, 2017, Peerless responded to staff’s data request.
TODAY, shall the Commission grant Peerless Network of South Dakota, LLC’s request for a certificate of authority to provide local exchange and interexchange long distance services in South Dakota?
2. TC17-066 In the Matter of the Application of BlueBird Communications SD LLC for a Certificate of Authority to Provide Local Exchange Services in South Dakota (Staff Analyst: Patrick Steffensen; Staff Attorney: Amanda Reiss)
On November 2, 2017, the Commission received a filing from BlueBird Communications SD LLC (BlueBird) for a certificate of authority to provide facilities based local telecommunications services, including wholesale telecommunications services to other carriers and retail telecommunications services, serving both residential and business customers within the CenturyLink footprint in South Dakota using a combination of its own facilities and those of the incumbent provider. On November 17 and December 1, 2017, BlueBird responded to staff’s data requests.
TODAY, shall the Commission grant BlueBird Communications SD LLC’s request for a certificate of authority to provide local exchange services in South Dakota?
Items for Commission Discussion
Announcements
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Commissioners and staff will meet with representatives of the South Dakota Electric Utility Companies on Tuesday, December 19, 2017, at noon CST at the Associated General Contractors conference room, 300 E. Capitol Ave., Pierre, S.D. The agenda is to discuss company activities.
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Commissioners and staff will meet with representatives of NorthWestern Energy on Tuesday, December 19, 2017, at 3:00 p.m. CST in Room 413 at the State Capitol, Pierre, S.D. The agenda is to discuss an update of NorthWestern Energy’s operations, finance and customer service activities.
- The PUC office will be closed December 25-26, 2017, in observance of the Christmas holiday.
- The PUC office will be closed Monday, January 1, 2018, in observance of the New Year’s holiday.
- The next regularly scheduled commission meeting will be Wednesday, January 3, 2018, at 9:30 a.m. CST in Room 413 at the State Capitol Building, Pierre, S.D.
/s/Cindy Kemnitz .
Cindy Kemnitz
Finance Manager
PUC Email
December 12, 2017
