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South Dakota Public Utilities Commission Meeting
May 14, 2019, at 8:00 A.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, May 13, 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
Docket EL18-053 will be discussed at 10:00 a.m.
Administration
1. Approval of Minutes of the Ad Hoc Meeting held on April 10, 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. EL18-021 In the Matter of the Application of Otter Tail Power Company for Authority to Increase Its Electric Rates (Staff Analysts: Brittany Mehlhaff, Eric Paulson, Joseph Rezac, Lorena Reichert; Staff Attorney: Kristen Edwards)
On April 20, 2018, the Commission received an application by Otter Tail Power Company (Otter Tail) for approval to increase rates for electric service in its South Dakota service territory by a net $3,358,547 annually or 10.10 percent based on Otter Tail’s 2017 test year, with an additional $629,107, or 1.72 percent increase to revenues, effective January 1, 2020. The proposed rates may potentially affect approximately 11,700 customers in Otter Tail’s South Dakota service territory. On May 16, 2018, the Commission issued an Order Suspending Operation of Proposed Rates; Order Assessing Filing Fee and an Order Authorizing Consulting Contracts. June 1, 2018, was noticed as the intervention deadline. On June 28, 2018, Valley Queen Cheese Factory, Inc. filed a Petition to Intervene, which was granted by the Commission on July 16, 2018. On October 18, 2018, Otter Tail implemented interim rates pursuant to 49-34A-17. On November 1, 2018, Otter Tail filed supplemental direct testimony and an errata filing. On February 5, 2019, Otter Tail and Commission staff (staff) filed a Stipulation for Procedural Schedule. On February 7, 2019, the Commission issued a Scheduling Order. On February 15, 2019, staff and Otter Tail filed a Joint Motion for Approval of Settlement Stipulation and Settlement Stipulation resolving all issues except for return on equity. The Commission issued an Order Granting Joint Motion for Approval of Settlement Stipulation and an Order Approving Settlement Stipulation on March 6, 2019. On March 7, 2019, the Commission issued an Order for and Notice of Evidentiary Hearing, setting the matter of rate of return on equity for hearing on March 26, 2019, through March 28, 2019. On March 15, 2019, the parties filed a Second Stipulation for Procedural Schedule. On March 18, 2019, the Commission issued an Amended Scheduling Order. The hearing was held as scheduled on March 26, 2019. On March 29, 2019, the parties filed a Third Stipulation for Procedural Schedule. On April 2, 2019, the Commission issued a Second Amended Scheduling Order, with oral argument scheduled for May 14, 2019.
TODAY, how shall the Commission rule on the issue of the appropriate rate of return on equity in order to produce just and reasonable rates? 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. On November 21, 2018, the Commission issued an order approving the settlement stipulation and granting a permit to construct the transmission facility. On March 29, 2019, Crowned Ridge filed a Motion for Approval and Acceptance of Circuit Change. The permit granted by the Commission contemplated a double-circuit transmission line and after further study Crowned Ridge now plans to proceed with a single-circuit transmission line.
TODAY, shall the Commission grant the Motion for Approval and Acceptance of Circuit Change? OR, how shall the Commission proceed?
3. EL18-026 In the Matter of the Application by Prevailing Wind Park, LLC for a Permit of a Wind Energy Facility in Bon Homme County, Charles Mix County and Hutchinson County, South Dakota, for the Prevailing Wind Park Project (Staff Analysts: Darren Kearney, Jon Thurber; Staff Attorney: Kristen Edwards)
On May 30, 2018, Prevailing Wind Park, LLC (Applicant) filed an application to construct the Prevailing Wind Park Project (Project), a wind energy facility located on approximately 50,364 acres of land in Bon Homme, Charles Mix and Hutchinson counties, South Dakota, between the towns of Avon, Tripp, and Wagner, South Dakota. The total installed capacity of the Project would not exceed 219.6 MW nameplate capacity. The proposed Project includes up to 61 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 at Western Area Power Administration’s existing Utica Junction Substation, located approximately 27 miles east of the Project. The Commission issued a Final Decision and Order Granting Permit to Construct Facilities (Permit) on November 28, 2018. On April 25, 2019, the Applicant filed a letter providing notice to the Commission of starting construction early. Condition 29 of the Permit required certain filings 30 days prior to commencing construction. The filings were made by Applicant on March 29, 2019, with the intent of starting construction on or after April 28, 2019. However, the Applicant conducted certain stormwater protection and grading work on April 22, 2019, six days early.
TODAY, how shall the Commission proceed?
4. 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)
Docket will be discussed at 10:00 a.m.
On November 30, 2018, the South Dakota Public Utilities Commission (Commission) received an Application for Facility Permits (Application) from Deuel Harvest Wind Energy LLC (Deuel Harvest or Applicant), an affiliate of Invenergy LLC. Deuel Harvest proposes to construct a wind energy facility and a 345-kilovolt (kV) transmission line with an associated 345-kV interconnection substation to be located in Deuel County, South Dakota, known as the Deuel Harvest North Wind Farm (Project). The Project would be situated within an approximately 48,730-acre project area, in the townships of Portland, Lowe, Altamont, Glenwood, and Herrick (Project Area). The total installed capacity of the Project would not exceed 310.1 megawatts (MW) of nameplate capacity. The proposed Project includes up to 112 wind turbine generators, access roads to turbines and associated facilities, underground 34.5-kV electrical collector lines, underground fiber-optic cable, a 34.5-kV to 345-kV collection substation, up to four permanent meteorological towers, a 345-kV interconnection substation, an approximately 150-foot long 345-kV transmission line connecting the Project substation and the Interconnection substation, and an operations and maintenance facility. The Project would interconnect to the regional electric grid along the Big Stone to Brookings 345-kV transmission line via a new 345-kV Interconnection Substation located in Glenwood Township and be able to deliver 300 MW of electricity. Deuel Harvest is negotiating a Generator Interconnection Agreement with Otter Tail Power Company and Midcontinent Independent System Operator, Inc. The Project is expected to be completed in 2020. Applicant estimates the total construction cost to be $400 million. An evidentiary hearing was held April 15-18, 2019. At the commencement of the evidentiary hearing, it was announced that a stipulation had been reached, rendering the permit for the 345 kV transmission line no longer necessary.
TODAY, shall the Commission grant, deny, or grant with conditions, a permit for the construction of a wind energy facility to Deuel Harvest Wind Energy LLC pursuant to SDCL 49-41B-25? OR, how shall the Commission proceed?
5. 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. On April 1, 2019, MDU filed responses to staff’s first data request. On May 6, 2019, MDU filed responses to staff’s second data request and filed versions of Attachment A and Attachment C that excluded the Bowdle Substation Project, as requested by staff. On May 6, 2019, MDU submitted Revised Attachment A and Revised Attachment C to reflect a correction to the Bowdle Substation Project allocation to South Dakota, as was discussed in response to Data Request 1.
TODAY, shall the Commission approve the revised Transmission Cost Recovery Rate and revised tariff sheet? OR, how shall the Commission proceed?
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 was held on April 25, 2019, in Miller, South Dakota. On May 2, 2019, staff filed a Motion for Adoption for Procedural Schedule.
TODAY, shall the Commission grant party status to any person who may have filed? AND, shall the Commission establish a procedural schedule?
7. EL19-016 In the Matter of the Application by Crowned Ridge Wind II, LLC for a Permit of a Wind Energy Facility in Deuel, Grant and Codington Counties (Staff Analysts: Darren Kearney, Jon Thurber, Eric Paulson; Staff Attorneys: Amanda Reiss, Kristen Edwards)
On April 1, 2019, the South Dakota Public Utilities Commission (Commission) received an Application for a Wind Energy Facility Permit (Application) from Crowned Ridge Wind II, LLC (Crowned Ridge Wind or Applicant), a subsidiary of NextEra Energy Resources, LLC. Crowned Ridge Wind proposes to construct a wind energy facility to be located in Codington, Deuel and Grant Counties, South Dakota (Project). The Project would be situated within an approximately 60,996-acre project area, located east of the City of Watertown (Project Area). The Project Area is in Waverly, Kranzburg, Troy, Rome, Goodwin, and Havana Townships. The total installed capacity of the Project would be approximately 300.6 megawatts of nameplate capacity. The proposed Project includes up to 132 wind turbine generators, access roads to turbines and associated facilities, underground 34.5 kV electrical collector lines, underground fiber-optic cable, a 34.5-kV to 230-kV collection substation, up to two permanent meteorological towers, and an operations and maintenance facility. The Project would interconnect to the electric grid at the Big Stone South 230-kV Substation using the Crowned Ridge II’s 5-mile 230-kV transmission line that was approved in Docket EL18-018 and the Crowned Ridge 34-mile generation tie line that was approved in Docket EL17-050. The Project is expected to be completed in 2020. Applicant has executed a purchase and sale agreement with Northern States Power Company (NSP) to sell NSP the Project upon commercial operation. Applicant estimates the total construction cost to be $425 million. Party status has been granted to individuals Garry Ehlebracht, Steven Greber, Mary Greber, Richard Rall, Amy Rall and Laretta Kranz. Citing a notice issue, on May 7, 2019, Applicant filed a Request for Consent to Withdraw Application.
TODAY, shall the Commission grant Crowned Ridge Wind II, LLC’s request to withdraw the application without prejudice? OR, how shall the Commission proceed?
Gas and Electric
1. GE17-003 In the Matter of Staff’s Request to Investigate the Effects of the Tax Cuts and Jobs Act on South Dakota Utilities (Staff Analyst: Brittany Mehlhaff; Staff Attorneys: Kristen Edwards, Amanda Reiss)
On December 21, 2017, the Commission received a filing from Commission staff (staff) requesting a docket be opened to investigate the Tax Cuts and Jobs Act on South Dakota utilities. Staff also filed a Motion Requesting Order Requiring Comments and Securing Tax Effects for Customers as of January 1, 2018 (Motion). In the Motion, staff requested the Commission investigate the effect the Tax Cuts and Jobs Act (Act) will have on South Dakota utilities and requested the Commission issue an order requiring utilities to submit comments on the effect the Act will have on each utility. Additionally, staff requested the Commission issue an order that any adjustment to rates due to the Act will be effective on January 1, 2018. On December 29, 2017, the Commission issued an Order Requiring Comments; Order Requiring Rates in Effect January 1, 2018, are Subject to Refund; Order Granting Intervention. On February 1, 2018, MidAmerican Energy Company (MidAmerican) submitted initial comments in the Docket. On May 2, 2019, staff and MidAmerican filed a Joint Motion for Approval of Settlement Stipulation and Settlement Stipulation. On May 3, 2019, staff filed its Memorandum Supporting Settlement Stipulation.
TODAY, shall the Commission grant the Joint Motion for Approval of Settlement Stipulation and approve the rates, tariff sheets, terms and conditions stipulated therein? OR, how shall the Commission proceed?
Telecommunications
1. TC19-008 In the Matter of the Approval of a Cageless Collocation Bay Procurement Amendment to the Interconnection Agreement between Qwest Corporation dba CenturyLink QC and Level 3 Communications, LLC (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)
On April 23, 2019, the Commission received a filing pursuant to 47 U.S.C. § 252 for approval of an Amendment to the Interconnection Agreement between Qwest Corporation dba CenturyLink QC (CenturyLink) and Level 3 Communications, LLC (Level 3). This filing contains the Cageless Collocation Bay Procurement and Exhibit A Update Amendment to the Interconnection Agreement between Level 3 and CenturyLink.
TODAY, shall the Commission Approve the Amendment to the Interconnection Agreement?
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
- The PUC office will be closed Monday, May 27, 2019, in observance of Memorial Day.
- The next regular commission meeting will be Tuesday, May 28, 2019, at 1:30 p.m. CDT in Room 413 at the State Capitol Building, Pierre, South Dakota.
- Commission meetings are scheduled for June 11 and 25, 2019.
/s/Cindy Kemnitz .
Cindy Kemnitz
Finance Manager
PUC Email
May 8, 2019
