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South Dakota Public Utilities Commission Meeting
February 22, 2018, at 1:30 P.M. CST
Matthew Training Center, Foss Building, 523 E. Capitol Avenue
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 Wednesday, February 21, 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 Meeting Held on February 8, 2018 (Staff: Joy Lashley)

Consumer Reports

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

Electric

1.     EL17-048     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 (OTP) filed a petition for approval of its 2018 Transmission Cost Recovery (TCR) Rider. 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. OTP’s petition proposed a March 1, 2018, effective date. On January 29, 2018, OTP filed a Supplemental Filing with revised Attachments 1 through 25.

     TODAY, shall the Commission approve Otter Tail Power Company’s TCR rate factor and revised tariff sheet with an effective date of March 1, 2018?

2.     EL18-002     In the Matter of the Filing by Otter Tail Power Company for Approval of Tariff Revisions to its Rates for Small Power Production and Cogeneration (Staff Analyst: Eric Paulson; Staff Attorney: Amanda Reiss)

On January 19, 2018, the Commission received a filing from Otter Tail Power Company (OTP). This filing proposes updates to OTP’s Small Power Producer Riders, Sections 12.01, 12.02 and 12.03 in OTP’s tariff book. In the listed sections, OTP proposes to update the energy and capacity payments as well as the renewable energy credit values. These payments are made to qualifying facilities within the OTP service area. OTP requests an effective date of March 1, 2018.

     TODAY, shall the Commission approve the proposed revisions to Otter Tail Power Company’s rates for Small Power Production and Cogeneration for Qualifying Facilities?

Gas & Electric

1.     GE18-001     In the Matter of the Application of MDU Resources Group, Inc. for Authorization for Reorganization of Company Structure (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen; Staff Attorneys: Kristen Edwards, Amanda Reiss)

On January 31, 2018, MDU Resources Group, Inc. (MDU) filed an Application for Reorganization of Company Structure (Application). In its Application, MDU seeks authorization to implement a plan of merger reorganization through which Montana-Dakota Utilities Co. will merge into and become a wholly-owned subsidiary of a newly formed holding company. The subsidiary will operate as the public utility and will be named Montana-Dakota Utilities Co. The holding company will be named MDU Resources Group, Inc. The holding company will be the parent company and will be publicly traded. The reorganization will be accomplished through a merger. No costs associated with the transaction will be paid by ratepayers.

     TODAY, shall the Commission authorize the MDU Resources Group’s merger reorganization? OR, how shall the Commission proceed?

Natural Gas

1.     NG17-009     In the Matter of the Application of South Dakota Intrastate Pipeline Company for Authority to Increase its Natural Gas Rates (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen, Eric Paulson; Staff Attorneys: Kristen Edwards, Amanda Reiss)

On June 1, 2017, South Dakota Intrastate Pipeline Company (SDIP) filed with the Commission a Letter of Transmittal requesting authority to increase its natural gas rates. On June 22, 2017, Montana-Dakota Utilities Co. filed a Petition to Intervene. The Commission issued an Order Granting Intervention on July 6, 2017. On June 29, 2017, SDIP filed a confidential application for authority to increase its natural gas rates. At the October 11, 2017, Commission Meeting, the Commission adopted a partial procedural schedule. An evidentiary hearing is set for June 13-15, 2018. Other deadlines for testimony and discovery have also been established. On February 15, 2018, Ring-neck Energy (Ring-neck) requested late intervention.

     TODAY, shall the Commission grant late intervention to any parties that may have filed?  AND, shall the Commission order necessary changes to the names of the parties listed in the procedural schedule in order to include such parties in those deadlines?

2.     NG18-001     In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of a Contract with Deviations with NuGen Energy, LLC (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen, Eric Paulson; Staff Attorney: Amanda Reiss)

On January 29, 2018, NorthWestern Corporation dba NorthWestern Energy (NorthWestern) filed for approval of a contract with deviations with NuGen Energy, LLC (NuGen Energy). NuGen Energy has reached the expiration date of its initial contract. NorthWestern desires to provide this customer with continuing natural gas service and has negotiated a new contract with deviations. NorthWestern states the new rate will allow NorthWestern to maintain NuGen Energy as a customer, which will benefit not only NuGen Energy but also NorthWestern and its natural gas customers, through recovery of administrative and general costs and common costs from this customer. NorthWestern requests an effective date for the tariff revisions of March 1, 2018.
    
     TODAY, shall the Commission approve NorthWestern Energy’s contract with deviations with NuGen Energy, LLC and the associated tariff revisions with an effective date of March 1, 2018?

3.     NG18-002     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: Amanda Reiss)

On January 31, 2018, 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 $0.029 per dk to be effective March 1, 2018. The proposed CTA rate is an increase of $0.002 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 Tracking Adjustment of $0.029 per dk and the associated Conservation Program Tracking Mechanism Rate 90 tariff sheet, with an effective date of March 1, 2018?

4.     NG18-003     In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of a Contract with Deviations with Great Plains Ethanol, LLC (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen, Eric Paulson; Staff Attorney: Amanda Reiss)

On February 5, 2018, NorthWestern Corporation dba NorthWestern Energy (NorthWestern) filed for approval of a contract with deviations with Great Plains Ethanol, LLC (Great Plains Ethanol). Great Plains Ethanol has reached the expiration date of its initial contract. NorthWestern desires to provide this customer with continuing natural gas service and has negotiated a new contract with deviations. NorthWestern states the new rate will allow NorthWestern to maintain Great Plains Ethanol as a customer, which will benefit not only Great Plains Ethanol but also NorthWestern and its natural gas customers, through recovery of administrative and general costs and common costs from this customer. NorthWestern also proposes to remove Millennium Ethanol, LLC from the list of contracts with deviations, as that contract has expired. NorthWestern requests approval on less than thirty days’ notice with an effective date for the tariff revisions of March 1, 2018.

     TODAY, shall the Commission approve NorthWestern Energy’s contract with deviations with Great Plains Ethanol, LLC and the associated tariff revisions, on less than 30 days’ notice, with an effective date of March 1, 2018?

Telecommunications

1.     TC18-001      In the Matter of the Filing by Peerless Network of South Dakota, LLC for Approval of its Switched Access Services Tariff No. 1 (Staff Analyst: Eric Paulson; Staff Attorney: Amanda Reiss)

 On January 16, 2018, the Commission received an application from Peerless Network of South Dakota, LLC (Peerless) requesting approval of its initial Switched Access Services Tariff No. 1. On January 31, February 8, and February 12, 2018, Peerless filed revisions to the tariff addressing concerns from Staff. Peerless requests an effective date of March 2, 2018.

     TODAY, shall the Commission approve Peerless Network of South Dakota, LLC’s Switched Access Services Tariff No. 1?

2.     TC18-003     In the Matter of the Approval of a Wireline Interconnection Agreement between Qwest Corporation dba CenturyLink QC and Matrix Telecom, LLC dba Excel Telecommunications (fka Comtel) (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

On January 26, 2018, the Commission received a filing pursuant to 47 U.S.C. § 252 for approval of the Wireline Interconnection Agreement between Qwest Corporation dba CenturyLink QC and Matrix Telecom, LLC dba Excel Telecommunications (fka Comtel).

     TODAY, shall the Commission approve the interconnection agreement?

3.     TC18-004     In the Matter of the Approval of a Wireline Interconnection Agreement between Qwest Corporation dba CenturyLink QC and Matrix Telecom, LLC dba Matrix Business Technologies dba Trinsic Communications (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

On January 26, 2018, the Commission received a filing pursuant to 47 U.S.C. § 252 for approval of the Wireline Interconnection Agreement between Qwest Corporation dba CenturyLink QC and Matrix Telecom, LLC dba Matrix Business Technologies dba Trinsic Communications.

     TODAY, shall the Commission approve the interconnection agreement?

Items for Commission Discussion

Announcements

  1. The PUC offices will be closed Monday, February 19, 2018, in observance of Presidents Day.

  2. PUC Commissioners will attend the South Dakota State Federation of Labor Legislative Conference on Thursday, February 22, 2018, at 3:45 p.m. CST at the Ramkota Conference Center, Pierre, S.D.

  3. The next regularly scheduled commission meeting will be Friday, March 2, 2018, at 9:30 a.m. CST in Room 413 at the State Capitol Building, Pierre, S.D.

  4. PUC commissioners and staff will meet with consumers at the Sioux Empire Home Show, February 23-25, 2018, at the Sioux Falls Convention Center & Arena, Sioux Falls, S.D.

  5. PUC commissioners and staff will meet with consumers at the Black Hills Home Show, March 9-11, 2018, at the Rushmore Plaza Civic Center, Rapid City, S.D.

  6. Commission meetings are scheduled for March 20 and April 3, 2018.

/s/Leah Mohr     .
Leah Mohr
Deputy Executive Director
PUC Email
February 15, 2018