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South Dakota Public Utilities Commission Meeting
November 15, 2018, at 1:30 P.M. CST
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 5:00 p.m. CST on Wednesday, November 14, 2018, to reserve a phone line. Lines are limited and 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 Meeting Held on October 31, 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.     EL15-020     In the Matter of the Application by Wind Quarry Operations, LLC, for a Wind Energy Facility Permit for the Willow Creek Wind Energy Facility and Associated Facilities (Staff Analysts: Darren Kearney, Jon Thurber; Staff Attorney: Amanda Reiss)

On May 27, 2015, Wind Quarry Operations, LLC, filed with the South Dakota Public Utilities Commission (Commission) an Application for a Wind Energy Facility Permit to construct the Willow Creek Wind Energy Facility (Project), a 103-megawatt nameplate capacity wind energy facility located on approximately 40,000 acres of privately-owned land in Butte County, South Dakota (Project Area), approximately 10 miles northeast of Newell, South Dakota. The proposed Project includes approximately 45 wind turbines, associated access roads, a new collector substation, an operations and maintenance facility, and associated transmission interconnection facilities. The Project would interconnect to the U.S. Department of Energy Western Area Power Administration Maurine to Rapid City 115-kilovolt transmission line, which extends through the Project Area. The Project would generate utility scale electric power for residential, commercial, and industrial consumers. On November 16, 2015, the Commission issued an Order Granting Joint Motion for Approval of Settlement Stipulation and Granting Permit to Construct Facilities. On October 17, 2018, Willow Creek Wind Power LLC, filed a Motion for Approval of Transfer of Permit and Acceptance of Turbine and Layout Changes.

     TODAY, shall the Commission grant Willow Creek Wind Power LLC’s Motion for Approval of Transfer of Permit and Acceptance of Turbine and Layout Changes? OR, how shall the Commission Proceed?

2.     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: Jon Thurber, Darren Kearney; 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. On November 5, 2018, PUC staff and Crowned Ridge 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 and approve the terms and conditions of the Settlement Stipulation? OR, how shall the Commission proceed?

3.     EL18-044     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Black Hills Power, Inc. dba Black Hills Energy and West River Electric Association, Inc. (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

On October 17, 2018, Commission staff filed an Electric Service Territory Boundary Agreement between Black Hills Power, Inc. dba Black Hills Energy and West River Electric Association, 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?

4.     EL18-046     In the Matter of the Application of Dakota Range III, LLC for a Permit of a Wind Energy Facility and a 345-kV Transmission Line in Grant and Roberts Counties (Staff Analysts: Jon Thurber, Darren Kearney; Staff Attorney: Amanda Reiss)

On October 26, 2018, Dakota Range III, LLC filed an application to construct an approximately 8-mile 345-kilovolt interconnection transmission line and an up to 151.2-megawatt wind energy conversion facility (Project). The Project will be in Grant County and Roberts County, South Dakota, with the wind portion in an 18,717-acre area. The transmission line will run from the Project’s substation located in section 13 of Blooming Valley Township, outside the public right of way along 455th Avenue, turning east on Farmington Township’s 159th Street to the Ottertail Power Company switchyard located in section 14 of Mazeppa Township. The Project is expected to be in service by December 31, 2020, with a total of up to 42 wind turbines and associated facilities. Dakota Range estimates the total cost of the proposed Project to be approximately $200 million.   

     TODAY, shall the Commission assess a filing fee not to exceed $300,000 with an initial deposit of $8,000? AND, shall the Commission authorize the executive director to enter into necessary consulting contracts?

5.     EL18-048     In the Matter of the Petition of Otter Tail Power Company for Approval of the Transmission Cost Recovery Rider Rate (Staff Analysts: Joseph Rezac, Patrick Steffensen; Staff Attorney: Kristen Edwards)

On October 31, 2018, Otter Tail Power Company (Otter Tail) filed a petition for approval of its 2019 Transmission Cost Recovery (TCR) Rider. Otter Tail’s TCR rate has been adjusted to reflect the TCR revenue requirements for the next recovery period (March 2019 – February 2020). 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. The update also includes impacts of Otter Tail’s pending rate case (EL18-021), the addition of two new transmission projects, details of the Midcontinent Independent System Operator Return on Equity complaints, and details of Southwest Power Pool, Inc. related expenses.

     TODAY, shall the Commission assess a filing fee in the amount of up to $50,000 to account for actual expenses incurred in review of this filing commencing from the filing date?

Grain Warehouse

1.     GW17-002     In the Matter of the Grain Buyer Bond of H & I Grain of Hetland, Inc. (Grain Warehouse Manager: Cody Chambliss; 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 (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 the April 20, May 1, and July 26, 2018, Commission meetings. On August 9, 2018, the Commission filed a Petition to Appoint South Dakota Public Utilities Commission as Receiver in Kingsbury Circuit Court under docket CIV18-56. A court hearing was held on September 19, 2018, and on September 28, 2018, finding that the Petition seeking appointment as receiver was impermissible under South Dakota law, the Circuit Court dismissed the matter with prejudice. On October 10, 2018, the Commission received from several sellers a Second 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?

2.     GW18-003     In the Matter of the PUC Staff’s Request to Release Hartford Farmers Elevator’s Grain Warehouse and Grain Buyers Bonds (Grain Warehouse Manager: Cody Chambliss; Staff Attorneys: Kristen Edwards, Amanda Reiss)

Effective October 1, 2018, Hartford Farmers Elevator (Hartford) merged with Colton Farmers Elevator to form Valley Central Coop. Hartford currently has a bond effective July 1, 2018, for the 2018-2019 licensing year. Valley Central Coop has a bond effective as of October 1, 2018, for the remainder of the 2018-2019 licensing year. On November 5, 2018, Commission staff filed a letter requesting the Commission release Hartford’s grain warehouse and grain buyer bonds for the period of October 1, 2018, through the remainder of the licensing year. Any bond-eligible transactions on and after October 1, 2018, are covered by Valley Central Coop’s bond.

     TODAY, shall the Commission release the grain warehouse and grain buyer bonds of Hartford Farmers Elevator? OR, how shall the Commission proceed?

3.     GW18-004     In the Matter of the PUC Staff’s Request to Release Carthage Farmers Elevator, Inc.’s Grain Warehouse and Grain Buyers Bonds (Grain Warehouse Manager: Cody Chambliss; Staff Attorneys: Kristen Edwards, Amanda Reiss)

Effective November 1, 2018, Carthage Farmers Elevator (Carthage) was purchased by Prairie Ag Partners. Carthage currently has a bond effective July 1, 2018, for the 2018-2019 licensing year. Prairie Ag Partners has a bond rider for Carthage effective as of September 1, 2018, for the remainder of the 2018-2019 licensing year. On November 5, 2018, Commission staff filed a letter requesting the Commission release Carthage’s grain warehouse and grain buyer bonds for the period of November 1, 2018, through the remainder of the licensing year. Any bond-eligible transactions on and after November 1, 2018, are covered by Prairie Ag Partners’ bond.

     TODAY, shall the Commission release the grain warehouse and grain buyer bonds of Carthage Farmers Elevator? OR, how shall the Commission proceed?

4.     GW18-005     In the Matter of the PUC Staff’s Request to Release Colton Farmers Elevator’s Grain Buyers Bond (Grain Warehouse Manager: Cody Chambliss; Staff Attorneys: Kristen Edwards, Amanda Reiss)

Effective October 1, 2018, Colton Farmers Elevator (Colton) merged with Hartford Farmers Elevator to form Valley Central Coop. Colton currently has a bond effective June 30, 2018, for the 2018-2019 licensing year. Valley Central Coop has a bond effective as of October 1, 2018, for the remainder of the 2018-2019 licensing year. On November 7, 2018, Commission staff filed a letter requesting the Commission release Colton’s grain buyer bond for the period of October 1, 2018, through the remainder of the licensing year. Any bond-eligible transactions on and after October 1, 2018, are covered by Valley Central Coop’s bond. Colton’s grain warehouse bond was through the USDA.

     TODAY, shall the Commission release the grain buyer bond of Colton Farmers Elevator? OR, how shall the Commission proceed?

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. 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 that included 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. In addition to the new customers MidAmerican obtained through this docket, MidAmerican had 13 existing farm tap customers, of which one customer has since retired service. On September 28, 2018, MidAmerican submitted a letter and a plan to perform safety inspections on the existing farm tap customers’ facilities. No additional safety inspections will be required for three existing farm tap customers as MidAmerican owns and operates the downstream piping. For the remaining nine existing farm tap customers whose facilities need to be inspected, MidAmerican proposes to recover $1,000 of inspection costs through the Purchased Gas Adjustment and not charge these existing customers a transition fee. The existing farm tap customers will be responsible for the cost of any repairs to the customer-owned facilities.

     TODAY, shall the Commission approve MidAmerican’s inspection plan for existing farm tap customers? OR, how shall the Commission proceed?

Items for Commission Discussion

Public Comment

Individuals who wish to make public comments to the commission may do so in person during this time. All who offer public comment are requested to sign in at the commission meeting. Time limits for comments may be determined at the discretion of the chairperson.

Announcements

  1. Commissioners will attend the Critical Consumer Issues Forum’s Annual Kickoff Forum on Saturday, November 10, 2018, at 2:00 p.m. EST at the Loews Royal Pacific Orlando, Orlando, Florida.

  2. Commissioners will attend the National Association of Regulatory Utility Commissioner’s Annual Meeting and Education Conference, November 11-14, 2018, at the Loews Royal Pacific Orlando, Orlando, Florida.

  3. The PUC office will be closed Monday, November 12, 2018, in observance of the Veterans Day holiday.

  4. The PUC office will be closed November 22-23, 2018, in observance of the Thanksgiving holiday.

  5. An ad hoc commission meeting is scheduled for Tuesday, November 20, 2018, at 1:30 p.m. CST in Room 413 at the State Capitol Building, Pierre, South Dakota.

  6. The next regular commission meeting will be Tuesday, November 27, 2018, at 9:30 a.m. CST in Room 413 at the State Capitol Building, Pierre, South Dakota.

  7. Commissioners and staff will meet with representatives of the South Dakota Electric Utility Companies on Tuesday, December 4, 2018, at 2:30 p.m. at the Capitol Lake Visitor Center, Pierre, South Dakota. The agenda is to discuss company activities.

  8. A commission meeting is scheduled for December 11, 2018.

/s/Cindy Kemnitz     .
Cindy Kemnitz
Finance Manager
PUC Email
November 8, 2018