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South Dakota Public Utilities Commission Meeting
November 27, 2018, at 9:30 A.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 Monday, November 26, 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
Consumer Reports
1. Status Report on Consumer Utility Inquiries and Complaints Received by the Commission (Consumer Affairs: Deb Gregg)
Electric
1. EL16-020 In the Matter of the Filing by Otter Tail Power Company Regarding its Proposed South Dakota Energy Efficiency Plan for 2017-2019 (Staff Analyst: Darren Kearney; Staff Attorney: Amanda Reiss)
On April 29, 2016, the Commission received a filing from Otter Tail Power Company (Otter Tail) requesting approval of its proposed South Dakota Energy Efficiency Plan for 2017–2019 (2017–19 SD EEP). In the 2017–19 SD EEP, Otter Tail planned to continue, with modifications, its current portfolio of cost-effective energy efficiency projects in South Dakota. On November 28, 2016, the Commission issued an order approving Otter Tail’s 2017-19 EEP and budgets subject to certain PUC Staff recommendations. On September 21, 2018, Otter Tail filed a budget increase request for Commission approval. Specifically, Otter Tail requests to increase the EEP budget from $449,000 to $699,000 or a $250,000 annual increase for three years, beginning in 2019 through 2021, to allow Otter Tail to spread out the payment of eligible rebates to a single large industrial customer as well as allow for up to an additional $110,000 in funds to be available for other customers over three years. Further, Otter Tail proposes to cap the amount of rebates the single large industrial customer is eligible to receive at $250,000 each year.
TODAY, shall the Commission approve an annual budget increase of $250,000 for Otter Tail’s Energy Efficiency Plan in years 2019 through 2021? AND, shall the Commission approve the rebate amount cap of $250,000 per year in years 2019 through 2021 for the single large industrial customer? 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. Crocker previously submitted its escrow plan and received approval subject to final approval of the escrow agreement between Crocker and the financial institution serving as the escrow agent. Crocker filed the escrow agreement between Crocker and Minnwest Bank on November 19, 2018.
TODAY, shall the Commission approve Crocker’s escrow agreement? OR, how shall the Commission proceed?
3. EL18-043 In the Matter of the Application of Black Hills Power, Inc. dba Black Hills Energy for Approval of a Revision to the Energy Efficiency Solutions Adjustment (EESA) Rates (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)
On October 15, 2018, Black Hills Power, Inc. dba Black Hills Energy (BHP) filed for approval of a revision to its Energy Efficiency Solutions Adjustment (EESA) Rates. On November 15, 2018, BHP filed responses to staff’s data requests. BHP requests approval to revise its EESA rates effective December 1, 2018. Specifically, BHP proposes to increase the residential service EESA rate of $0.0003/kWh to $0.0005/kWh and decrease the commercial and industrial services EESA rate of $0.0012/kWh to $0.0010/kWh. BHP also filed its Energy Efficiency Plan Status Report for Program Year 2017 and Balancing Account for Program Year 2017.
TODAY, shall the Commission approve the Energy Efficiency Solutions Program Status Report for Program Year 2017? AND, shall the Commission approve the balancing account for Program Year 2017, including the performance incentive recovery? AND, shall the Commission approve the Energy Efficiency Solutions Adjustment rates of $0.0005/kWh for residential service and $0.0010/kWh for commercial and industrial services, effective December 1, 2018, and associated tariff sheets? OR, how shall the Commission proceed?
4. EL18-047 In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Dakota Energy Cooperative, Inc. and Miller Municipal Electric (Staff Analyst: Darren Kearney; Staff Attorney: Amanda Reiss)
On October 29, 2018, Commission staff (staff) filed an Electric Service Territory Boundary Agreement between Dakota Energy Cooperative, Inc. and Miller Municipal Electric. 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, staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. 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?
Natural Gas
1. NG18-015 In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of its Refund Plan regarding Its Recovery of Manufactured Gas Plant Site Remediation Costs (Staff Analyst: Eric Paulson; Staff Attorney: Amanda Reiss)
On October 30, 2018, the Commission received a petition by NorthWestern Energy Corporation dba NorthWestern Energy (NorthWestern) for approval of its refund plan regarding its recovery of the manufactured gas plant (MGP) site remediation costs. The purpose of this filing is to update the refund mechanism established in NG16-010 where NorthWestern credited customers an over-collection related to MGP remediation allowed in docket NG11-003. Through the tracker established in NG16-010 and first 10 months of the tracker established in NG17-015, NorthWestern has refunded approximately $6.1 million to customers with a balance of approximately $1.3 million remaining in the tracker to be refunded. NorthWestern notes that actual remediation costs have come in lower than the amount recovered through the tracker. NorthWestern proposes to continue the refund plan for an additional 12 months at higher credit rates than are currently in effect. NorthWestern proposes a December 1, 2018, effective date for the new credit rates.
TODAY, shall the Commission approve NorthWestern’s refund plan regarding its recovery of Manufactured Gas Plant Site remediation costs with an effective date of December 1, 2018?
Pipeline Safety
1. PS18-001 In the Matter of Staff’s Request for Release to Liberty Mutual Insurance Company a Segment of Pipe Involved in a February 6, 2018, Incident (Pipeline Safety Program Manager: Mary Zanter, Pipeline Safety Inspector: Boice Hillmer; Staff Attorney: Kristen Edwards)
On September 7, 2018, Commission staff (staff) filed a letter requesting a section of pipe involved in a February 6, 2018, incident in Aberdeen, South Dakota, be released for destructive testing. SDCL 49-34B-26 provides that Commission approval must be obtained prior to the destruction of pipe involved in an incident. NorthWestern Corporation dba NorthWestern Energy (NorthWestern) is the operator of the pipeline. Liberty Mutual Insurance Company (Liberty) desired to have the section of pipe involved in the incident subjected to destructive testing by its expert. Staff has completed its incident investigation. This item was previously before the Commission at its September 18, 2018, meeting and was deferred. Since that time, NorthWestern and Liberty have come to an agreement on the method and procedure for testing the pipe.
TODAY, shall the Commission grant approval to release the pipe for destructive testing? OR, how shall the Commission proceed?
Telecommunications
1. TC18-058 In the Matter of the Application of Midcontinent Communications for an Amended Certificate of Authority to Provide Local Exchange Service in Defined Census Blocks Within Rural Areas in Moody, Davison, Minnehaha, Hanson, Beadle, Kingsbury and Codington Counties and for a Waiver of ARSD 20:10:32:15 (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)
On October 22, 2018, the Commission received an application by Midcontinent Communications for an Amended Certificate of Authority to Provide Local Exchange Service in Defined Census Blocks Within Rural Areas in Moody, Davison, Minnehaha, Hanson, Beadle, Kingsbury and Codington Counties and for a Waiver of ARSD 20:10:32:15. On November 9, 2018, the South Dakota Telecommunications Association (SDTA) filed a Petition to Intervene and Venture Communications Cooperative, Santel Communications Cooperative and Interstate Telecommunications Cooperative, Inc. filed a Joint Petition to Intervene in the Docket.
TODAY, shall the Commission grant intervention to any party that may have filed?
2. TC18-059 In the Matter of the Petition of RC Technologies for Resolution of Disputed Railroad Crossing Application (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)
On November 2, 2018, RC Technologies filed a Petition for Resolution of Disputed Railroad Crossing Application pursuant to SDCL 49-16A. The crossing in dispute involves Sunflour Railroad, Inc. (Sunflour). Pursuant to statute, RC Technologies alleges to have sent a crossing application to Sunflour and, asserting that application is now in dispute, seeks Commission resolution of the application. SDCL 49-16A-100.7 provides for a resolution within 60 days and requires costs be assessed to the parties.
TODAY, shall the Commission require costs be assessed to RC Technologies and Sunflour Railroad, Inc. to account for actual expenses incurred in the processing of this docket? 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
- The PUC office will be closed November 22-23, 2018, in observance of the Thanksgiving holiday.
- Commissioners and staff will meet with representatives of the South Dakota Electric Utility Companies on Tuesday, December 4, 2018, at 2:30 p.m. CST at the Capitol Lake Visitor Center, Pierre, South Dakota. The agenda is to discuss company activities.
- Commissioners and staff will meet with representatives of NorthWestern Energy on Monday, December 10, 2018, at 2:00 p.m. CST in Room 413 at the State Capitol, Pierre, South Dakota. The agenda is to discuss an update of NorthWestern Energy’s operations, finance and customer service activities.
- The next regular commission meeting will be Tuesday, December 11, 2018, at 9:30 a.m. CST in Room 413 at the State Capitol Building, Pierre, South Dakota.
- Commissioners and staff will attend the South Dakota Telecommunications Association/Public Utilities Commission Biannual Forum on December 13-14, 2018, at the Holiday Inn City Center, Sioux Falls, South Dakota.
- A public input hearing for docket EL18-045 – In the Matter of the Application of Flying Cow Wind, LLC for a Facility Permit to Construct a 345 kV Transmission Line and Associated Facilities in Deuel County will be held Tuesday, December 18, 2018, at 5:30 p.m. CST in the Deubrook Elementary School Gymnasium, 695 Palisades Avenue, Toronto, South Dakota.
- A public input hearing for docket 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 will be held Wednesday, December 19, 2018, at 6:00 p.m. CST in the Summit School Gymnasium, 400 Sherman Avenue, Summit, South Dakota.
- Commission meetings are scheduled for December 28, 2018, and January 8, 2019.
/s/Cindy Kemnitz .
Cindy Kemnitz
Finance Manager
PUC Email
November 8, 2018
