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South Dakota Public Utilities Commission Meeting
January 16, 2018, at 1:30 P.M. CST
Matthew Training Center, Foss 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 Friday, January 12, 2018. 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 December 19, 2017, and January 3, 2018, and the Ad Hoc Commission Meeting held on December 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.     EL12-063     In the Matter of the Petition of Otter Tail Power Company for Order Accepting Certification of Permit Issued in Docket EL06-002 to Construct Big Stone Transmission Line and Substations in Grant and Deuel Counties (Staff Analyst: Darren Kearney; Staff Attorney: Kristen Edwards)

On December 19, 2012, the Commission received a petition from Otter Tail Power Company (Otter Tail) requesting the Commission to accept certification that the conditions leading to the issuance of the January 16, 2007, Decision and Order Approving Stipulation and Granting Permit to Construct Transmission Facilities in Docket EL06-002 will continue to be met. On March 19, 2013, Otter Tail filed a Certification that the conditions upon which the Commission granted the facility permit will continue to be met along the route as described in its Petition. On April 2, 2013, a Joint Motion for Approval of Stipulation and a Stipulation were filed with the Commission. On May 10, 2013, the Commission issued an Order Approving the Joint Motion for Approval of Stipulation and Order Granting Certification. On July 29, 2014, Otter Tail filed a Motion to Approve Final Alignment, which was approved by the Commission on August 26, 2014. Pursuant to SDCL 49-41B-36, an indemnity bond was required for construction of the project.  On December 20, 2017, Otter Tail filed a Motion for Release of Bond, stating that construction was complete and roads have been maintained and fixed as necessary.

     TODAY, shall the Commission grant the Motion for Release of Bond and authorize the executive director or commission counsel to execute any necessary release documents to release the bond?

2.     EL13-020     In the Matter of the Application of Northern States Power Company dba Xcel Energy and Otter Tail Power Company for a Permit to Construct the Big Stone South to Brookings County 345 kV Transmission Line (Staff Analyst: Darren Kearney; Staff Attorney: Kristen Edwards)

On June 3, 2013, the Commission received an application from Northern States Power Company d/b/a Xcel Energy and Otter Tail Power Company (Xcel and Otter Tail) for a permit to construct the southern portion of the Big Stone South to Brookings County Substation 345 kV transmission line in Deuel and Brookings counties and make modifications to the existing Brookings County Substation. On February 7, 2014, Applicants filed a Motion for Approval of Settlement Stipulation and a Settlement Stipulation. On February 20, 2014, the Commission issued an Order Granting Motion for Approval of Settlement Stipulation and Granting Permit to Construct Facilities. Pursuant to SDCL 49-41B-36, an indemnity bond was required for construction of the project. On December 20, 2017, Xcel and Otter Tail filed a Motion for Release of Bond, stating that construction was complete and roads have been maintained and fixed as necessary.

     TODAY, shall the Commission grant the Motion for Release of Bond and authorize the Executive Director or commission counsel to execute any necessary release documents to release the bond?

3.     EL17-049     In the Matter of the Joint Request for Service Rights Exception between Sioux Valley Southwestern Electric Cooperative Inc. and Lyon Rural Electric Cooperative Inc. (Staff Analyst: Lorena Reichert; Staff Attorney: Kristen Edwards)

On December 4, 2017, the Commission received a Joint Request for Service Rights Exception between Sioux Valley Southwestern Electric Cooperative Inc. dba Sioux Valley Energy (Sioux Valley) and Lyon Rural Electric Cooperative Inc. (LREC) to allow LREC to provide single phase electric service to a residence in Sioux Valley territory. Under the Service Rights Exception, Sioux Valley shall retain the right of service to any three-phase service that may be developed at the location.

     TODAY, shall the Commission approve the requested service rights exception between Sioux Valley Energy and Lyon Rural Electric Cooperative?

4.    EL17-056      In the Matter of Lookout Solar Park I, LLC’s Petition for Declaratory Ruling Regarding Whether a Permit is Required for an Energy Conversion Facility (Staff Analysts: Darren Kearney, Jon Thurber; Staff Attorneys: Kristen Edwards and Amanda Reiss)

On December 20, 2017, Lookout Solar I, LLC (Lookout Solar) filed a Petition for Declaratory Ruling seeking a determination from the Commission as to whether a permit is required for a 110 MW solar facility to be located on the Pine Ridge Indian Reservation. In addition to the solar facility, Lookout Solar intends to construct an electric transmission line in Custer County, South Dakota. The transmission facility of approximately 11 miles in length would consist of 18 individual cables, each at 34.5 kV. 

    TODAY, how shall the Commission rule on the Petition for Declaratory Ruling? OR, how shall the Commission proceed? 

Natural Gas

1.     NG17-018    In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of an Amendment to a Contract with Deviations with Novita Aurora, LLC (Staff Analyst: Brittany Mehlhaff; Staff Attorney: Amanda Reiss)

On December 15, 2017, NorthWestern Corporation dba NorthWestern Energy (NorthWestern) filed for approval of an amendment to a contract with deviations with Novita Aurora, LLC (Novita). In Docket NG16-003, the Commission approved the contract with deviations with Novita. NorthWestern installed a natural gas line to serve Novita in 2016 in accordance with the requirements of the agreement. Based on the estimated cost of the project, NorthWestern required both security for the anticipated capital investment and take or pay volumes in order to protect its legacy customers. Actual project costs were much lower than the original projection and Novita also overestimated the annual usage of the processing facility. NorthWestern desires to adequately secure recovery of its investment without causing undue burden upon Novita. Therefore, NorthWestern and Novita have agreed to reduce the annual take or pay volumes to more closely match the needed recovery of the reduced capital investment and clarify Novita’s actual usage of natural gas. NorthWestern states that upon amending the original volume requirement, Novita is treated fairly and existing NorthWestern customers remain unharmed.

     TODAY, shall the Commission approve the amendment to the contract with deviations and associated tariff revision with an effective date of January 16, 2018?   

Items for Commission Discussion

Announcements

  1. Commissioners will attend the Mid-America Regulatory Commissioners Retreat, January 11-13, 2018, at the Intercontinental Stephen F. Austin Hotel, Austin, Texas.

  2. The PUC offices will be closed Monday, January 15, 2018, in observance of Martin Luther King, Jr. Day.

  3. A show cause hearing for the following dockets will be held Tuesday, January 16, 2018, at 1:00 p.m. CST in the Floyd Matthew Training Center in the Foss Building, 523 E. Capitol Ave., Pierre, S.D.
    • TC17-069 - In the Matter of Business Discount Plan Inc.’s Failure to Timely Pay the Gross Receipts Tax
    • TC17-070 - In the Matter of CSDVRS LLC’s Failure to Timely Pay the Gross Receipts Tax
    • TC17-071 - In the Matter of iNetworks Group Inc.’s Failure to Timely Pay the Gross Receipts Tax
    • TC17-072 - In the Matter of NECC Telecom Inc.’s Failure to Timely Pay the Gross Receipts Tax
    • TC17-073 - In the Matter of Telnyx’s Failure to Timely Pay the Gross Receipts Tax
    • TC17-074 - In the Matter of Patriot Mobile LLC’s Failure to Timely Pay the Gross Receipts Tax
    • TC17-075 - In the Matter of Tempo Telecom LLC’s Failure to Timely Pay the Gross Receipts Tax .

  4. The PUC will host a Briefing for Legislators on Thursday, January 18, 2018, at 4:00 p.m. CST in Room 414 at the State Capitol Building, Pierre, S.D. The agenda is to discuss current issues related farm taps for natural gas service, renewable energy development, Keystone Pipeline, telecommunications, grain warehouses, pipeline safety and energy regulation.

  5. A public input hearing for docket 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, will be held Monday, January 22, 2018, at 5:30 p.m. CST in the Milbank High School Cafeteria, 1001 E. Park Avenue, Milbank, S.D.

  6. The PUC will host an Open House for Legislators on Thursday, January 25, 2018, 7:30-11:00 a.m. CST in the PUC office, first floor of the State Capitol Building, Pierre, S.D.

  7. The next regularly scheduled commission meeting will be Thursday, January 25, 2018, at 2:00 p.m. CST in Room 413 at the State Capitol Building, Pierre, S.D.

  8. Commission meetings are scheduled for February 8 and 22, 2018.

/s/Cindy Kemnitz     .
Cindy Kemnitz
Finance Manager
PUC Email
January 9, 2018