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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 Thursday, April 19, 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. 

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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 April 3, 2018 (Staff: Joy Lashley)

Consumer Reports

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

Administration

1.     AA18-002      Establishment of the Gross Receipts Tax Levy for Fiscal Year 2019 (Finance Manager: Cindy Kemnitz)

SDCL Chapter 49-1A establishes the South Dakota Public Utilities Commission Gross Receipts Tax Fund (Fund). This Fund is financed by assessing a tax on the annual intrastate gross receipts received by a utility. The Fund is used by the Commission to defray regulatory expenses related to the regulation of telecommunications, electricity, and natural gas. On April 1 of each year, all utilities and telecommunications companies doing business in South Dakota shall file with the Commission, on forms provided by the Commission, the amount of its gross receipts derived from customers within South Dakota during the preceding calendar year pursuant to SDCL 49-1A-4. The report shall be sworn to and verified by an officer of the company. The Commission shall, by order, establish the rate and assess the tax authorized in SDCL 49-1A-3 which, together with any funds remaining from the current fiscal year and the $250 minimum gross receipt tax, will fund the Commission’s budget for the next fiscal year and provide a contingency reserve in an amount not to exceed the prior year’s budget. In accordance with SDCL 49-1A-5, the tax is due and payable on July 15 of each year. On April 3, 2018, staff filed a letter requesting a docket be opened in this matter.

     TODAY, shall the Commission establish the rate and assess the Gross Receipts Tax as authorized in SDCL49-1A-3?

Electric

1.     EL18-010     In the Matter of the Filing by Montana-Dakota Utilities Co., a Division of MDU Resources Group Inc. for Approval of the Annual Update to Its Infrastructure Rider Rate (Staff Analysts: Patrick Steffensen, Lorena Reichert; Staff Attorney: Amanda Reiss)

On March 1, 2018, the Commission received a petition from Montana-Dakota Utilities Co. (MDU) for approval of the annual update to its Infrastructure Rider Rate (IRR), pursuant to the terms of the company’s IRR 56 tariff. MDU is proposing to decrease the tariff rate to $0.00432 per kWh for the rate period covered by this filing. Under the IRR 56 tariff, MDU shall update the Infrastructure Rider annually to be effective each May 1.

     TODAY, shall the Commission approve Montana Dakota Utilities Co.’s request to decrease the Infrastructure Rider Rate tariff to $0.00432 per kWh and approve the associated tariff sheet with an effective date of May 1, 2018?

2.     EL18-011     In the Matter of the Filing by Montana-Dakota Utilities Co., a Division of MDU Resources Group Inc., for Approval of the Annual Update to Its Transmission Cost Recovery Rider Rate (Staff Analysts: Eric Paulson, Joseph Rezac; Staff Attorney: Kristen Edwards)

On March 1, 2018, Montana-Dakota Utilities Co. (MDU) filed for approval of its annual update to its Transmission Cost Recovery (TCR) Rider. MDU’s TCR rate has been adjusted to reflect the projected charges for 2018 assessed to MDU for transmission service provided by the Midcontinent Independent System Operator and Southwest Power Pool, along with projected revenues and/or credits received by MDU for transmission related services. MDU proposes a TCR rate of $0.00545 per kWh effective May 1, 2018. A typical residential customer using 853 kWh would see an increase of $0.91 per month. On March 22, 2018, MDU filed responses to Staff’s data requests.

     TODAY, shall the Commission approve the revised Transmission Cost Recovery rate and revised tariff sheet with an effective date of May 1, 2018?

3     EL18-012     In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of Tariff Revisions to Its Landlord Continuous Service Agreement (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)

On March 2, 2018, the Commission received a tariff revisions filing from NorthWestern Corporation dba NorthWestern Energy (NorthWestern) for the purpose of revising its Landlord Continuous Service Agreement. On March 26 and April 11, 2018, NorthWestern responded to Staff’s data requests.
     
     TODAY, shall the Commission approve NorthWestern Energy’s tariff revisions?

4.     EL18-013     In the Matter of the Filing of Northern States Power Company dba Xcel Energy for Approval of its 2017 Economic Development Activities and 2018 Budget (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

On March 15, 2018, Northern States Power Company dba Xcel Energy (Xcel) filed for approval of its 2017 Economic Development Annual Report and 2018 Economic Development Budget. The filing includes Xcel’s report on the 2017 budgeted and actual economic development expenses and provided documentation of the actual expenses incurred. The filing also includes a proposed economic development budget for 2018. On April 5, 2018, Xcel filed its response to staff’s data request.

     TODAY, shall the Commission approve Xcel Energy’s 2017 Economic Development Report and its 2018 Economic Development Budget?

5.     EL18-015     In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy’s for Approval of Its 2018 Economic Development Plan and 2017 Economic Development Report (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)

On March 23, 2018, the Commission received an application from NorthWestern Corporation dba NorthWestern Energy (NorthWestern) requesting approval of its 2018 Economic Development Proposed Budget and 2017 Economic Development Report. On April 5, 2018, Northwestern responded to Staff’s data request.

     TODAY, shall the Commission approve NorthWestern Energy’s 2018 Economic Development Plan and 2017 Economic Development Report?

6.     EL18-016     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Central Electric Cooperative, Inc. and Southeastern Electric Cooperative, Inc. (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

On March 26, 2018, Commission staff filed an Electric Service Territory Boundary Agreement between Central Electric Cooperative, Inc. and Southeastern Electric Cooperative, Inc. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission staff asks for approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

     TODAY, shall the Commission approve the proposed electric service territory boundary agreement?

7.     EL18-017     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between MidAmerican Energy Company and Union County Electric Cooperative, Inc. (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

On March 28, 2018, Commission staff filed an Electric Service Territory Boundary Agreement between MidAmerican Energy Company and Union County Electric Cooperative, Inc. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission staff requests approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

     TODAY, shall the Commission approve the proposed electric service territory boundary agreement?

8.     EL18-019     In the Matter of the Application of Crowned Ridge Wind II, LLC for a Facility Permit to Construct a 230-kV Transmission Line and Associated Facilities in Codington County (Staff Analysts: Darren Kearney, Jon Thurber; Staff Attorney: Amanda Reiss)

On April 11, 2018, the South Dakota Public Utilities Commission (Commission) received a facility permit application from Crowned Ridge Wind II, LLC (Crowned Ridge II). Crowned Ridge II proposes to construct an approximately 7-mile 230-kilovolt generation tie line and associated substation facilities (Project) that will connect the 300 megawatt Crowned Ridge Wind II facility to the Crowned Ridge Wind facility collector substation. 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 County, South Dakota. The Project is expected to be in service by December 31, 2019. Crowned Ridge II estimates the total construction cost to be approximately $10 million.
      
     TODAY, shall the Commission assess a filing fee not to exceed $25,000 with an initial deposit of $8,000? And shall the Commission authorize the executive director to enter into necessary consulting contracts?

Grain

1.     GW17-002      In the Matter of the Grain Buyer Bond of H & I Grain of Hetland, Inc. (Grain Warehouse Manager: James Mehlhaff; Staff Attorneys: Kristen Edwards, Amanda Reiss)

The Commission revoked H & I Grain of Hetland, Inc.’s (Buyer) license on July 24, 2017, in Docket No. GW17-001. Upon the revocation, Commission staff sent claim forms to all persons that staff determined to have sold grain to Buyer. Included with each claim form was a description of staff’s finding of what was owed to each seller. Upon the expiration of the statutory time for submitting claims to the Commission, staff drafted a recommendation for distribution of the $400,000 grain bond, along with a memorandum supporting staff’s recommendation. Staff filed its recommendation on March 8, 2018. On April 12, 2018, the Commission issued an Order for Distribution of Bond Proceeds. On April 13, 2018, the Commission received from several sellers a Petition to Appoint South Dakota Public Utilities Commission as Receiver.

     TODAY, shall the Commission grant the petition to take receivership? OR, how shall the Commission proceed?

Natural Gas

1.     NG18-005      In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of Tariff Revisions to Its Landlord Continuous Service Agreement (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)

On March 2, 2018, the Commission received a filing for tariff revisions from NorthWestern Corporation dba NorthWestern Energy (NorthWestern) for the purpose of revising its Landlord Continuous Service Agreement. On March 26 and April 11, 2018, NorthWestern responded to Staff’s data requests.
     
     TODAY, shall the Commission approve NorthWestern Energy’s tariff revisions?

2.     NG18-006      In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of Its 2018 Economic Development Plan and 2017 Economic Development Report (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)

On March 23, 2018, the Commission received an application from NorthWestern Corporation dba NorthWestern Energy (NorthWestern) requesting approval of its 2018 Economic Development Proposed Budget and 2017 Economic Development Report. On April 6, 2018, Northwestern responded to Staff’s data request.

     TODAY, shall the Commission approve NorthWestern Energy’s 2018 Economic Development Plan and 2017 Economic Development Report?

3.     NG18-007      In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of a Contract with Deviations with James Valley Ethanol, LLC dba POET Biorefining – Groton (Staff Analysts: Brittany Mehlhaff, Joseph Rezac ; Staff Attorney: Amanda Reiss)

On March 30, 2018, NorthWestern Corporation dba NorthWestern Energy (NorthWestern) filed for approval of a contract with deviations with James Valley Ethanol, LLC dba POET Biorefining - Groton (James Valley Ethanol). James Valley 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 James Valley Ethanol as a customer, which will benefit not only James Valley Ethanol 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 May 1, 2018.
    
     TODAY, shall the Commission approve NorthWestern Energy’s contract with deviations with James Valley Ethanol, LLC and the associated tariff revisions with an effective date of May 1, 2018?

Telecommunications

1.     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: Patrick Steffensen, Joseph Rezac; 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 (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. On November 17, 2017, the Board filed a request for waiver of the sixty day deadline pursuant to ARSD 20:10:01:35 and predicated upon agreement of all parties to a proposed procedural schedule. On November 21, 2017, the Commission granted intervention to SDN. On December 11, 2017, the Board filed initial comments and on December 19, 2017, Commission staff, SDTA and NextGen filed initial comments in the Docket. On January 12, 2018, the Board filed response comments. On January 16, 2018, Commission staff, SDN and SDTA and on January 17, 2018, NextGen filed response comments. On April 16, 2018, NextGen Filed a Motion to Dismiss and Alternative Motion to Continue to Supplement the Petition. 

     TODAY, shall the Commission issue a Declaratory Ruling as requested by the South Dakota Department of Public Safety, 911 Coordination Board? OR shall the Commission Grant NextGen’s Motion to Dismiss? OR shall the Commission grant NextGen’s Alternative Motion to Continue to Supplement the Petition? OR how shall the Commission proceed?

Items for Commission Discussion

Announcements

1. Commissioners will attend the Central Electric Cooperative annual meeting Thursday, April 19, 2018, at 6:30 p.m. CDT, at the Corn Palace, Mitchell, S.D.
   
   
2. The next regular commission meeting will be Tuesday, May 1, 2018, at 9:30 a.m. CDT in Room 413 at the State Capitol Building, Pierre, S.D.
   
   
3. Commission meetings are scheduled for May 15 and 29, 2018.

/s/Cindy Kemnitz           .
Cindy Kemnitz
Finance Manager
PUC Email
April 16, 2018