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South Dakota Public Utilities Commission Meeting
March 19, 2019, at 1:00 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 5:00 p.m. CDT on Monday, March 18, 2019, 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 Commission Meetings Held on February 15 and March 1, 2019 (Staff: Joy Lashley)

Consumer Reports

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

Electric

1.     EL18-058     In the Matter of the Joint Request for an Electric Service Boundary Change between Northern States Power Company dba Xcel Energy and Southeastern Electric Cooperative, Inc. (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

On December 14, 2018, the Commission received a joint service territory exchange agreement between Northern States Power Company dba Xcel Energy (Xcel) and Southeastern Electric Cooperative, Inc. (Southeastern). The exchange involves Xcel service territory in Section 14 of T103N, R55W in McCook County for service territory and current service rights exceptions of Southeastern in Section 13 of T103N, R55W in McCook County. On February 26, 2019, the companies responded to staff’s data request. Staff filed a letter into the docket on March 11, 2019.
   
     TODAY, shall the Commission approve the service territory boundary change?

2.     EL19-003     In the Matter of the Application by Crowned Ridge Wind, LLC for a Permit of a Wind Energy Facility in Grant and Codington Counties (Staff Analysts: Darren Kearney, Jon Thurber, Eric Paulson; Staff Attorneys: Kristen Edwards, Amanda Reiss)

On January 30, 2019, Crowned Ridge Wind, LLC (Crowned Ridge or Applicant) filed an application for a permit to construct a wind energy conversion facility to be located in Grant County and Codington County, South Dakota (Project). The Project would be situated on approximately 53,186-acres in the townships of Waverly, Rauville, Leola, Germantown, Troy, Stockholm, Twin Brooks, and Mazeppa, South Dakota. The total installed capacity of the Project would not exceed 300 megawatts (MW) of nameplate capacity. The proposed Project includes up to 130 wind turbine generators, access roads to turbines and associated facilities, underground 34.5-kilovolt (kV) electrical collector lines, underground fiber-optic cable, a 34.5-kV to 345-kV collection substation, one permanent meteorological tower, and an operations and maintenance facility. The Project will utilize the Crowned Ridge 34-mile 230-kV generation tie line and a new reactive power compensation substation to transmit the generation from the Project’s collector substation to the Project’s point of interconnection located at the Big Stone South 230-kV Substation, which is owned by Otter Tail Power Company. Applicant has executed a power purchase agreement with Northern States Power Company (NSP) to sell NSP the full output of the Project. The Project is expected to be completed in 2020. Applicant estimates the total cost of the Project to be $400 million. On February 22, 2019, the Commission granted party status to three individuals. On March 1, 2019, the Commission received an application for party status from Melissa Lynch.

     TODAY, shall the Commission grant party status to those who have filed?

3.     EL19-008     In the Matter of the Filing by MidAmerican Energy Company for Approval of Tariff Revisions to Its 2018 Transmission Cost Recovery Reconciliation and 2019 Transmission Cost Recovery Factors (Staff Analyst: Brittany Mehlhaff; Staff Attorney: Kristen Edwards)

On February 15, 2019, the Commission received MidAmerican Energy Company’s (MidAmerican) filing for approval of tariff revisions to its Transmission Cost Recovery (TCR) 2018 Reconciliation and 2019 New Factor Calculation. MidAmerican’s TCR mechanism was established in the company’s most recent rate case, EL14-072. With this filing, MidAmerican is establishing new TCR rates based on true ups to the actual over/under recovery from 2018, 2019 forecasted MISO transmission expense, and the forecast over/under recovery for January through March 2019. MidAmerican requests the new TCR factors have an effective date of April 2, 2019.

     TODAY, shall the Commission approve the revised Transmission Cost Recovery rate factors and revised tariff sheet with an effective date of April 2, 2019?

4.     EL19-009     In the Matter of the Filing by Montana-Dakota Utilities Co., a Subsidiary of MDU Resources Group Inc., for Approval of the Annual Update to Its Transmission Cost Recovery Rider Rate (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

On March 1, 2019, 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 2019 assessed to MDU for transmission service provided by MISO and Southwest Power Pool, along with projected revenues and/or credits received by MDU for transmission related services. In addition, MDU is including the projected 2019 revenue requirements for two transmission projects in its projected 2019 TCR update. MDU proposes a TCR rate of $0.00530 per kWh effective May 1, 2019.

     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?

5.     EL19-010     In the Matter of the Filing by Montana-Dakota Utilities Co., a Subsidiary of MDU Resources Group Inc., for Approval of the Annual Update to Its Infrastructure Rider Rate (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)

On March 1, 2019, the Commission received a petition from Montana-Dakota Utilities Co. (MDU) for approval of the annual update to its Infrastructure Rider Rate, pursuant to the terms of the Company’s Infrastructure Rider Rate 56 tariff. MDU is proposing to increase the tariff rate to $0.00583 per kWh for the rate period covered by this filing. Under the Infrastructure Rider Rate 56 tariff, MDU shall update the Infrastructure Rider annually to be effective each May 1.

     TODAY, shall the Commission assess a filing fee in the amount of up to $250,000 to account for actual expenses incurred in review of this filing commencing from the filing date?

6.     EL19-012     In the Matter of the Application by Sweetland Wind Farm, LLC for Facility Permits for a Wind Energy Facility and a 230-kV Transmission Facility in Hand County, South Dakota for the Sweetland Wind Farm Project (Staff Analysts: Darren Kearney, Jon Thurber, Eric Paulson; Staff Attorney: Kristen Edwards)

On March 6, 2019, Sweetland Wind Farm, LLC (Applicant) filed an application for facility permits to construct Sweetland Wind Farm, a wind energy facility located on approximately 20,979 acres of land in Hand County, South Dakota, in the townships of Pearl, Hulbert, and Rose Hill, South Dakota, and a 230-kV transmission line (Project). The total installed capacity of the Project would be approximately 200 MW nameplate capacity. The proposed Project includes up to 71 wind turbine generators, access roads to turbines and associated facilities, underground electrical power collector lines connecting the turbines to the Project substation, an operations and maintenance facility, and temporary construction areas, including crane paths, pull sites, access roads, 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 Western Area Power Administration’s existing Fort Thompson to Huron transmission line via a new switchyard located in Rose Hill Township. The Project will result in the installation of approximately 7 miles of 230-kV overhead transmission line. The Applicant does not currently have a purchase agreement for the Project, but is currently in discussions with interested parties. A public input meeting to take public comments regarding the Project will be held on April 25, 2019, at 5:30 PM CDT at the Miller Community Center in Miller, South Dakota. 

     TODAY, shall the Commission assess a filing fee not to exceed $320,000 with an initial deposit of $8,000? AND, shall the Commission authorize the executive director to enter into necessary consulting contracts?

Telecommunications

1.     TC19-002     In the Matter of the Application of Vesta Solutions, Inc. for a Certificate of Authority to Provide Local Exchange and Interexchange Long Distance Services in South Dakota (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

On February 7, 2019, Vesta Solutions, Inc. (Vesta) filed an application for a Certificate of Authority to provide local exchange services and interexchange long distance services throughout South Dakota. Specifically, Vesta seeks to provide IP-based 9-1-1 call routing, database services and management, and network services to promote the advancement and migration of public safety answering point (PSAP) networks to the NG9-1-1 architecture. On February 28, 2019, the South Dakota Telecommunications Association filed a Petition to Intervene.

     TODAY, shall the Commission grant intervention to any party that may have filed?

2.     TC19-003     In the Matter of the Application of NGA 911, LLC for a Certificate of Authority to Provide Local Exchange and Interexchange Long Distance Services in South Dakota (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

On February 14, 2019, NGA 911, LLC (NGA 911) filed an application for a Certificate of Authority to provide local exchange services and interexchange long distance services throughout South Dakota. Specifically, NGA 911 seeks certificates to provide local exchange and interexchange telecommunications services in order to provide emergency call routing, transport, and related functionalities to state and municipal governmental agencies to support public safety answering points (PSAPs). On March 7, 2019, the South Dakota Telecommunications Association filed a Petition to Intervene.

     TODAY, shall the Commission grant intervention to any party that may have filed?

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 chairman.

Announcements

  1. A public input hearing for docket EL19-006 - In the Matter of the Application of Black Hills Power Inc. dba Black Hills Energy for a Facility Permit to Construct a 230 kV Transmission Line and Associated Facilities in Pennington County will be held Monday, March 18, 2019, at 5:30 p.m. MDT in the Washington Room, Ramkota Hotel and Conference Center, Rapid City, South Dakota.

  2. A show cause hearing for docket GW19-001 - In the Matter of Green Leaf Commodities, LLC’s Failure to Timely Respond Pursuant to SDCL 49-45-26 will be held Tuesday, March 19, 2019, at 11:00 a.m. CST in Room 413 at the State Capitol Building, Pierre, South Dakota.

  3. A public input hearing for docket EL19-007 - In the Matter of the Application by Triple H Wind Project, LLC for a Permit of a Wind Energy Facility in Hyde County, South Dakota will be held Tuesday, March 19, 2019, at 5:30 p.m. CDT in the Hyde County Memorial Auditorium, 125 Second Street SW, Highmore, South Dakota.

  4. A public input hearing for docket EL19-003 – In the Matter of the Application by Crowned Ridge Wind, LLC for a Permit of a Wind Energy Facility in Grant and Codington Counties will be held Wednesday, March 20, 2019, at 5:30 p.m. in the Wavery South Shore School Gymnasium, 319 Mary Place, Waverly, South Dakota.

  5. An evidentiary hearing for docket EL18-021 - In the Matter of the Application of Otter Tail Power Company for Authority to Increase Its Electric Rates is scheduled to begin at 9:30 a.m. CDT, Tuesday, March 26, and continue through Thursday, March 28, 2019, in Room 413 at the State Capitol Building, Pierre, South Dakota.

  6. PUC commissioners and staff will meet with consumers at the Black Hills Home Show, March 29-31, 2019, at the Rushmore Plaza Civic Center, Rapid City, South Dakota.

  7. The next regular commission meeting will be Tuesday, April 2, 2019, at 9:30 a.m. CDT in Room 413 at the State Capitol Building, Pierre, South Dakota.

  8. Commissioners will attend the Center for Public Utilities’ Current Issues Forum, April 7-10, 2019, at the Eldorado Hotel, Santa Fe, New Mexico.

  9. Commission meetings are scheduled for April 12 and May 2, 2019.

/s/Cindy Kemnitz                      .
Cindy Kemnitz
Finance Manager
PUC Email
March 12, 2019