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South Dakota Public Utilities Commission Meeting
July 26, 2018, at 1:30 P.M. CDT
Room 413, Capitol Building
Pierre, South Dakota

NOTE: Docket participants who wish to join this meeting by conference call, should contact the Commission at 605-773-3201 by 10:00 a.m. CDT on Thursday, July 26, 2018, to reserve a phone line. Lines are limited and are assigned 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 docket discussion at 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 webcast 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 June 26 and July 10, 2018, and the Ad Hoc Commission Meeting Held on July 10, 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.     EL17-042     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 (Staff Analysts: Jon Thurber, Darren Kearney; Staff Attorneys: Kristen Edwards, Amanda Reiss)

On October 5, 2017, the South Dakota Public Utilities Commission (Commission) received a permit application for an energy conversion facility (Application) from Otter Tail Power Company (Otter Tail). Otter Tail proposes to develop, own, and operate an approximate 250 megawatt simple-cycle natural gas fired energy conversion facility and related components known as the Astoria Station Project (Project). Associated facilities include a short segment (less than 1,000 feet long) of approximately 10-inch diameter natural gas pipeline on Otter Tail property necessary to interconnect to the Northern Border Pipeline and a short segment (preliminarily estimated to be less than one-half mile long) of 345-kilovolt (kV) generation-tie electric transmission line necessary to interconnect to the Big Stone South-Brookings County 345-kV electric transmission line. The energy conversion facility, known as Astoria Station, is proposed to be located in the N 1/2 of Section 22, Township 113N, Range 48W, Scandinavia Township, Deuel County, approximately one and one-half miles northwest of Astoria, South Dakota. The Project is expected to be in service by May 2021. Otter Tail estimates the total construction cost to be $165 million. Otter Tail previously filed its required Notice of Intent to Apply for a Permit for an Energy Conversion Facility in Docket EL17-017. On October 30, 2017, the Commission issued an Order Assessing Filing Fee; Authorizing Executive Director to Enter into Consulting Contracts; Order Granting Local Review Committee’s Request to Hire Consultant. On November 14, 2017, Otter Tail filed a Motion for Judicial Notice and a Motion for Finding of Substantial Compliance with Publication Notice Requirement, or in the Alternative, Extending the Deadline for Publishing Notice of Public Input Hearing. On November 27, 2017, a Public Input Hearing was held in Toronto, South Dakota. On November 28, 2017, the Commission issued an Order Granting Motion for Finding of Substantial Compliance with Publication Notice Requirement; Order Granting Motion for Judicial Notice. On December 28, 2017, the Local Review Committee filed its Final Report. On July 12, 2018, staff and Otter Tail filed a Settlement Stipulation and a Joint Motion for Approval of Settlement Stipulation.

     TODAY, shall the Commission grant the Joint Motion for Approval of Settlement Stipulation? OR, how shall the Commission proceed?

2.     EL17-055     In the Matter of the Application by Crocker Wind Farm, LLC for a Permit of a Wind Energy Facility and a 345 kV Transmission Line in Clark County, South Dakota, for Crocker Wind Farm (Staff Analysts: Darren Kearney, Jon Thurber; Staff Attorneys: Kristen Edwards, Amanda Reiss)

On December 15, 2017, Crocker Wind Farm, LLC (Crocker) filed with the South Dakota Public Utilities Commission (Commission) an Application for an energy facility permit and a 345 kV Transmission Line (Projects) to construct the Crocker Wind Farm, a wind energy facility located on approximately 29,331 acres of privately owned land in Clark County, South Dakota, approximately 8 miles north of Clark, South Dakota. The proposed projects include up to 120 wind turbines, associated access roads, a new collector substation, an operations and maintenance facility, and associated 345 kilovolt (kV) transmission in Clark County, South Dakota. The projects will result in the installation of approximately 5.2 miles of overhead transmission that will be wholly located within the wind farm’s boundary. The transmission line route will run from a substation in Section 30 of Township 119N, Range 58W to the Point-of-Interconnect (POI), which is located approximately 2 miles north of the town of Crocker in Section 9 of Township 119N, Range 58W. Two routing options from the substation in Section 30 are under consideration. At the POI, the power will transfer to the Basin Electric Groton-to-Watertown 345 kV transmission line, part of the Southwest Power Pool, Inc./Western Area Power Administration transmission line portfolio in Clark County, South Dakota. On May 9-11, 2018, an evidentiary hearing was held regarding this matter. On May 29, 2018, Crocker Wind Farm, LLC, staff and the Intervenors filed post-hearing briefs to the Commission. On June 12, 2018, the Commission issued a Final Decision and Order Granting Permit to Construct Facilities (Permit). Condition 37 of the Permit requires Crocker to file an escrow account plan with the Commission for Commission approval at least 60 days prior to construction. On July 16, 2018, Crocker filed the Decommissioning Escrow Account Plan. Crocker plans to commence construction on September 4, 2018. Thus, Crocker seeks relief from the 60 day requirement, requesting it be reduced to 45 days.

     TODAY, shall the Commission grant Crocker’s request to reduce the 60-day filing requirement to 45 days? AND, shall the Commission approve the plan? OR, how shall the Commission proceed?

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 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. The matter was taken up at both the April 20, 2018, and the May 1, 2018, Commission meeting and deferred for additional information.

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

Telecommunications

1.     TC18-013     In the Matter of the Petition by the Department of Public Safety/9-1-1 Coordination Board for a Declaratory Ruling Determining Competitive Local Exchange Carrier Processes for Requesting 9-1-1 Traffic Delivery from Rural Local Exchange Carriers (Staff Analysts: Patrick Steffensen, Joseph Rezac; Staff Attorney: Amanda Reiss)

On May 11, 2018, the Commission received a Petition for a Declaratory Ruling from the South Dakota Department of Public Safety, 9-1-1 Coordination Board (Board), to resolve the following issue: Does South Dakota law require bona fide requests as a prerequisite to determining if rural local exchange carrier (RLEC) exemptions do or do not apply when a competitive local exchange carrier (CLEC) is requesting delivery of 9-1-1 traffic from an RLEC, assuming voluntary agreements are not feasible? On May 31, 2018, the South Dakota Telecommunications Association (SDTA) filed a petition to intervene in the docket. On June 1, 2018, NextGen Communications, Inc. (NextGen) filed a petition to intervene in the docket and staff filed a letter regarding a proposed procedural schedule. On June 1, 2018, South Dakota Network, LLC filed comments. At the June 12, 2018, Commission meeting, the Commission granted intervention to NextGen and SDTA. On June 14, 2018, the Board filed a document indicating the Board has no initial comments. On June 18, 2018, staff and SDTA filed initial comments. On June 18, 2018, NextGen filed initial comments and a Motion to Dismiss. On June 28, 2018, the Commission issued an Order Denying Motion to Dismiss and Issuing a Declaratory Ruling Regarding Competitive Local Exchange Carrier Processed for Requesting 9-1-1 Traffic Delivery from Rural Local Exchange Carriers (Order). On June 29, 2018, NextGen filed Objections to the June 28, 2018, Commission Order and requested the Commission adopt NextGen’s proposed amended order. On July 12, 2018, staff filed a letter regarding NextGen’s request. On July 13, 2018, the Board filed a letter and SDTA filed a Response to NextGen’s Objections to the Order.

     TODAY, shall the Commission grant NextGen’s request to Adopt the proposed Amended Order?

2.     In the Matter of Request for Certification Regarding the Use of Federal Universal Service Support in Dockets TC18-037, TC18-042, TC18-044, TC18-048, TC18-049 and TC18-50.
     
     TC18-037     In the Matter of the Request of Beresford Municipal Telephone Company for Certification Regarding Its Use of Federal Universal Service Support (Study Area: 391649) (Staff Analyst: Eric Paulson; Staff Attorney: Amanda Reiss)

On June 28, 2018, the Commission received an application from Beresford Municipal Telephone Company requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company.

     TC18-042     In the Matter of the Request of Venture Communications Cooperative for Certification Regarding Its Use of Federal Universal Service Support (Study Areas: Venture Communications Cooperative 391680 and Western Telephone Co. 391688) (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

On June 29, 2018, the Commission received an application from Venture Communications Cooperative (Company) requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company. On July 13, 2018, the Company responded to staff’s data request.

     TC18-044     In the Matter of the Request of City of Faith Municipal Telephone Company Study Area: 391653 for Certification Regarding its Use of Federal Universal Service Support (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)

On June 29, 2018, the Commission received an application from City of Faith Municipal Telephone Company requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company. On July 13, 2018, the Company responded to staff’s data request.

     TC18-048     In the Matter of the Request of Alliance Communications Cooperative Inc. for Certification Regarding Its Use of Federal Universal Service Support (Study Areas 391405, 391642 and 391657) (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)

On June 29, 2018, the Commission received an application from Alliance Communications Cooperative Inc. requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company.

     TC18-049     In the Matter of the Request of City of Brookings Municipal Telephone for Certification Regarding Its Use of Federal Universal Service Support (Study Area 391650) (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)

On June 29, 2018, the Commission received an application from the City of Brookings Municipal Telephone requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company.

     TC18-050     In the Matter of the Request of Brookings Municipal Utilities dba Swiftel Communications for Certification Regarding Its Use of Federal Universal Service Support (Study Area 399009) (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)

On June 29, 2018, the Commission received an application from Brookings Municipal Utilities dba Swiftel Communications requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company.

     TODAY, shall the Commission provide a certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the use of Federal Universal Service Support in each of the above dockets?

Items for Commission Discussion

Staff received some questions regarding sample forms in the tariff, specifically what sample forms are required to be in the tariff, and whether a link to forms on the company website would be sufficient? The applicable administrative rule provides:

20:10:13:12.  Sample forms used by public utilities to be filed. Sample copies of printed forms that are normally used in connection with customers' services, such as applications for service, regular bills for service, contract forms, delinquency notices, disconnect notices, deposit receipts, and similar forms, shall be considered a part of a utility's tariff schedules. Each form shall be mounted on a regularly numbered tariff schedule sheet showing the name or title of the form. Such forms shall be maintained currently up to date in the same manner as tariff schedules insofar as changes in them affect rates and conditions of service.

Following a discussion with representatives from each utility, staff is comfortable with the concept that the tariff would include copies of the forms and a list of approved forms with a link to the company’s website where the most current forms can be found. The form in the tariff and the current version will be materially the same, however, minor edits, such as grammatical corrections could be made. Staff suggests the companies notify staff via email when changes are made to the forms so staff can review the update on the website and determine that we agree the changes do not require a tariff change. The company would need to file for approval when the change affects rates or conditions of service. Additionally, the most current forms should be filed, at the very least, at the time of a rate case.

Public Comment

Announcements

  1. The PUC will host the Association of Grain Regulatory Officials Annual Conference, July 22-25, 2018, at the Holiday Inn Sioux Falls-City Centre, Sioux Falls, S.D.

  2. The next regular commission meeting will be Tuesday, August 7, 2018, at 9:30 a.m. CDT in Room 413 at the State Capitol Building, Pierre, S.D.

  3. Commission meetings are scheduled for August 22 and September 4, 2018.

/s/Cindy Kemnitz     .
Cindy Kemnitz
Finance Manager
PUC Email
July 19, 2018