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South Dakota Public Utilities Commission Meeting
December 11, 2018, at 8:30 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, December 10, 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 Meetings Held on November 15, 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. EL14-106 In the Matter of the Application of NorthWestern Corporation dba NorthWestern Energy for Authority to Increase its Electric Rates (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen, Eric Paulson, Joseph Rezac; Staff Attorney: Amanda Reiss)
On December 19, 2014, the Commission received an application by NorthWestern Corporation dba NorthWestern Energy (NorthWestern) for approval to increase rates for electric service to customers in its South Dakota service territory by approximately $26.5 million annually or approximately 20.24% based on its test year ending September 30, 2014. On October 16, 2015, a Revised Settlement Stipulation, Joint Motion for Approval of Revised Settlement Stipulation, and staff Memorandum were filed. On November 4, 2015, the Commission issued an Order Granting Joint Motion for Approval of Revised Settlement Stipulation and Order Approving Interim Refund Plan. On September 10, 2018, an Amendment to Revised Settlement Stipulation and Joint Motion for Approval of Amendment to Revised Settlement Stipulation were filed. On September 26, 2018, the Commission issued an Order Granting Joint Motion for Approval of Amendment to Revised Settlement Stipulation. The Stipulation requires NorthWestern to make certain adjustments on or before January 1, 2019. On November 20, 2018, NorthWestern filed a letter requesting the Commission’s permission to deviate from the specific terms of the Stipulation. Complying with the specific terms of the Stipulation would result in an increase in the amount collected from customers and therefore NorthWestern requests to maintain the existing base rates for its customers and not make the required adjustments to base rates or the one-time refund of operations and maintenance (O & M) expenses.
TODAY, shall the Commission grant NorthWestern’s request to deviate from the terms of the Stipulation and not make the Stipulation’s required adjustments to base rates and the one-time refund of O & M expenses, thereby maintaining the existing base rates? OR, how shall the Commission proceed?
2. 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?
3. EL18-023 In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of Its 2017 Demand Side Management Report and 2019 Proposed Demand Side Management Plan (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)
On May 1, 2018, the Commission received a Petition from Northern States Power Company dba Xcel Energy (Xcel) requesting approval of the 2017 Demand Side Management (DSM) Status Report and 2019 DSM Plan. Specifically, Xcel requests approval of its 2017 DSM Tracker account, the incentive earned for 2017 program performance, the proposed 2019 DSM Cost Adjustment Factor of $0.000486 per kWh, and the proposed DSM Plan for 2019. On October 12, 2018, Xcel filed an updated Petition and revisions to the proposed 2018 DSM Plan and revised the proposed 2019 DSM Cost Adjustment Factor from $0.000486 per kWh to $0.000464 per kWh. Xcel requests an effective date of January 1, 2019, for the DSM Cost Adjustment Factor.
TODAY, shall the Commission approve Xcel’s 2017 DSM Status Report and tracker account, the performance incentive earned for 2017, the proposed 2019 DSM Plan, and the proposed 2019 DSM Cost Adjustment Factor of $0.000464 per kWh with a January 1, 2019, effective date?
4. EL18-036 In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of Its 2019 Transmission Cost Recovery Eligibility and Rate Adjustment (Staff Analyst: Patrick Steffensen; Staff Attorney: Kristen Edwards)
On August 31, 2018, the Commission received a petition from Northern States Power Company dba Xcel Energy (Xcel) for approval of its 2019 Transmission Cost Recovery (TCR) Rider, TCR rate factor, and tracker account report. For 2019, Xcel proposes recovery of the South Dakota jurisdictional portion of the revenue requirements related to 15 transmission projects located throughout its service territory. Xcel proposes to include one new project for 2019. Xcel proposes to recover $6.5 million associated with these projects for the 2019 calendar year. Included in the $6.5 million figure is the 2018 over-collection balance of $876,711. The total of the transmission investment costs and the tracker balance results in an average bill impact of $2.28 per month for a typical residential electric customer using 750 kWh per month. This is a decrease of $0.07 per month from the current TCR Rider recovery. Xcel proposes to implement a rate of $0.003037 per kWh applied to all energy billed to each customer class beginning January 1 through December 31, 2019. This represents a decrease of $0.000094 from the existing rate of $0.003131 per kWh. On November 30, 2018, Xcel filed responses to staff’s data requests.
TODAY, shall the Commission approve the TCR rate factor and updated tariff sheet with an effective date of January 1, 2019?
5. EL18-040 In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of its 2019 Infrastructure Rider Project Eligibility and Factor Update (Staff Analyst: Eric Paulson; Staff Attorney: Amanda Reiss)
On October 1, 2018, the Commission received a Petition by Northern States Power Company dba Xcel Energy (Xcel) for approval of its 2019 Infrastructure Rider Project Eligibility and Factor Update. Xcel requests approval of project eligibility for one project included in the Settlement Agreement Exhibit C not already included in the rider, project eligibility for six additional projects consistent with SDCL 49-34A-73 and the Settlement Stipulation in Docket GE17-003, the Infrastructure Rider Tracker Report and true-up for the 2018 revenue requirements, 2019 Infrastructure Rider revenue requirements of $14.6 million, an updated Infrastructure Rider Adjustment Factor of $0.006853, proposed revisions to the Infrastructure Rider tariff sheet, and proposed customer notice. Xcel proposes a January 1, 2019, effective date. Xcel states the average bill impact for a residential customer using 750 kWh per month will be an estimated $5.14, a $1.25 increase, or 1.37%, over the 2018 rate.
TODAY, shall the Commission approve the proposed projects as eligible for recovery and approve the infrastructure rider adjustment factor of $0.006853 per kWh and revised tariff sheet with an effective date of January 1, 2019?
6. EL18-049 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 Butte Electric Cooperative, Inc. (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)
On November 15, 2018, Commission staff filed an Electric Service Territory Boundary Agreement between Black Hills Power, Inc. dba Black Hills Energy and Butte 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. EL18-053 In the Matter of the Application of Deuel Harvest Wind Energy LLC for a Permit of a Wind Energy Facility and a 345-kV Transmission Line in Deuel County (Staff Analysts: Darren Kearney, Jon Thurber; Staff Attorneys: Kristen Edwards, Amanda Reiss)
On November 30, 2018, Deuel Harvest Wind Energy LLC filed an application to construct the Deuel Harvest North Wind Farm and 345 kV transmission line (Project), a wind energy facility located on approximately 48,730 acres of land in Deuel County, South Dakota, in the townships of Portland, Lowe, Altamont, Glenwood, and Herrick, South Dakota. The total installed capacity of the Project would not exceed 310.1 MW nameplate capacity. The proposed project includes up to 112 wind turbine generators, access roads to turbines and associated facilities, underground electrical power collector lines connecting the turbines to the collection substation, an operation and maintenance facility, and temporary construction areas, including crane paths, public road improvements, a laydown yard, and a concrete batch plant(s) (as needed), and four permanent meteorological towers. The Project would interconnect to the regional electric grid along the Big Stone to Brookings transmission line via a new substation located in Glenwood Township. The Project will result in the installation of approximately 150-feet of overhead transmission line. A public input hearing will be held on January 24, 2019, in Clear Lake, S.D. According to the Application, Applicant is actively marketing the sale of electricity from the Project to third parties.
TODAY, shall the Commission assess a filing fee not to exceed $400,000 with an initial deposit of $8,000? And, shall the Commission authorize the executive director to enter into necessary consulting contracts?
One Call
1. OC17-019 In the Matter of the Complaint Filed by Watertown Municipal Utilities, Watertown, SD, Against Cable Specialists Inc., Sioux Falls, SD for an Incident Occurring on August 24, 2017, at 502 E Kemp Ave, Watertown, S.D. (One Call Executive Director: Larry Janes; Staff Attorney: Amanda Reiss)
On August 25, 2017, Watertown Municipal Utilities, filed a complaint against Cable Specialists for One Call violations. The One Call Enforcement Panel met on September 28, 2017, and determined a violation occurred. The Panel recommended a $1,000 penalty with $900 suspended under specified circumstances for the August 24, 2017, violation. Neither party objected to the recommendation and on November 27, 2017, the South Dakota One Call Board issued an Order adopting the Enforcement Panel Recommendation to pursue any rights it has under the law regarding collection. The Public Utilities Commission has not received payment in this matter. The Board sent a demand letter for payment of the unsuspended amount of $1,000 on September 20, 2018. No response or payment was received.
TODAY, shall the Commission bring an action in the name of the State of South Dakota pursuant to SDCL 49-7A-28 for the collection of the penalty?
2. OC18-001 In the Matter of the Complaint Filed by Magellan Midstream Partners, L.P., Tulsa, OK Against White River Construction, Chadron, Nebraska, for an Incident Occurring on Dec 14, 2017, at 24275 S Hwy 79, Hermosa, S.D. (One Call Executive Director: Larry Janes; Staff Attorney: Amanda Reiss)
On January 12, 2018, Magellan Midstream Partners, L.P., filed a complaint against White River Construction for One Call violations. The One Call Enforcement Panel met on February 16, 2018, and determined a violation occurred. The Panel recommended a $1,000 penalty with $500 suspended under specified circumstances for the December 14, 2017, violation. Neither party objected to the recommendation and on May 31, 2018, the South Dakota One Call Board issued an Order adopting the Enforcement Panel Recommendation to pursue any rights it has under the law regarding collection. The Public Utilities Commission has not received payment in this matter. The Board sent a demand letter for payment of the unsuspended amount of $1,000 on October 8, 2018. No response or payment was received.
TODAY, shall the Commission bring an action in the name of the State of South Dakota pursuant to SDCL 49-7A-28 for the collection of the penalty?
Telecommunications
1. TC18-057 In the Matter of the Application of Crown Castle Fiber LLC for a Certificate of Authority to Provide Local Exchange and Interexchange Long Distance Services in South Dakota (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)
On September 10, 2018, the Commission received an application from Crown Castle Fiber, LLC (Crown Castle) for a Certificate of Authority to Provide Local Exchange and Interexchange Long Distance Services in South Dakota. On September 28, 2018, the South Dakota Telecommunications Association (SDTA) filed a Petition to Intervene in the docket. On October 9, 2018, Crown Castle responded to staff’s data request. On October 23, 2018, the Commission issued an order granting Intervention to SDTA. On December 4, 2018, SDTA and Crowned Castle filed a Joint Stipulation.
TODAY, shall the Commission grant Crown Castle’s request for a Certificate for Authority to provide local exchange and interexchange long distance services in South Dakota? AND, shall the Commission grant STDA and Crown Castle’s request to include the terms and conditions as set forth in the Joint Stipulation? AND, shall the Commission grant Crown Castle’s request for a waiver of ARSD 20:10:32:10? OR, how shall the Commission proceed?
2. In the Matter of the Failure of Native American Telecom LLC – Pine Ridge to Timely Pay their Gross Receipts Tax for Calendar Year 2017 (Finance Manager: Cindy Kemnitz)
Native American Telecom LLC – Pine Ridge has failed to timely pay their gross receipts tax as required by SDCL 49-1A for calendar year 2017.
TODAY, shall the Commission issue an Order to Show Cause as to why the Commission should not fine Native American Telecom LLC – Pine Ridge for failure to pay the requisite gross receipts tax?
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
- 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.
- An evidentiary hearing for TC18-059 - In the Matter of the Petition of RC Technologies for Resolution of Disputed Railroad Crossing Application is scheduled for 11:00 a.m. CST, Tuesday, December 11, 2018, in Room 413 at the State Capitol Building, Pierre, S.D.
- 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.
- The PUC office will be closed December 24-25, 2018, in observance of the Christmas holiday.
- The next regular commission meeting will be Friday, December 28, 2018, at 9:30 a.m. CST in Room 413 at the State Capitol Building, Pierre, S.D.
- The PUC office will be closed December 31, 2018, and January 1, 2019, in observance of the New Year holiday.
- Commission meetings are scheduled for January 8 and 18, 2019.
/s/Cindy Kemnitz .
Cindy Kemnitz
Finance Manager
PUC Email
December 5, 2018
