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South Dakota Public Utilities Commission Meeting
May 28, 2019, at 1:30 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 10:00 a.m. CDT on Tuesday, May 28, 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 Minutes of the Commission Meeting Held on May 2, 2019, and the Ad Hoc Commission Meeting held on May 9, 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. At its regular meeting on May 14, 2019, the Commission considered the issues heard at the hearing and took action on the issue of rate of return on equity. The Commission directed staff and Otter Tail to jointly file the final revenue requirement prior to the May 28, 2019, commission meeting.
TODAY, shall the Commission approve the final revenue requirement as filed by staff and Otter Tail? OR, how shall the Commission proceed?
2. 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 (Staff Analysts: Eric Paulson, Joseph Rezac; Staff Attorney: Kristen Edwards)
On February 5, 2019, Black Hills Power, Inc. dba Black Hills Energy (BHE) filed for a permit to construct a 0.7-mile 230 kV transmission line and associated facilities (Project) in Pennington County, South Dakota. The Project would include a substation at the location of the former Ben French Power Plant on the northwest side of Rapid City, South Dakota. It will also include a 230 kV transmission line from the substation running southeast approximately 0.2 miles, then east approximately 0.5 miles. The transmission line will be constructed entirely within an existing BHE easement, and the substation will be constructed on property owned by BHE. A public input meeting was held in Rapid City on March 18, 2019. No person sought party status in this docket. BHE responded to all staff data requests. BHE and staff filed a Settlement Stipulation and Joint Motion for Approval of Settlement Stipulation on May 20, 2019.
TODAY, shall the Commission approve the Joint Motion for Approval of Settlement Stipulation? OR, how shall the Commission proceed?
3. 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 (Staff Analysts: Darren Kearney, Jon Thurber, Joseph Rezac; Staff Attorneys: Kristen Edwards, Amanda Reiss)
On February 6, 2019, Triple H Wind Project, LLC (Triple H) filed for a permit to construct Triple H Wind Project (Project), a wind energy facility located on approximately 27,247 acres of land in Hyde County, South Dakota, approximately 3.2 miles southwest of Highmore, South Dakota. The total installed capacity of the Project would not exceed 250.24 MW nameplate capacity. The proposed Project includes up to 92 wind turbine generators, access roads to turbines and associated facilities, underground electrical power collector lines connecting the turbines to the collection substation, and operations and maintenance facility, a Sonic Detection Ranging Unit, and temporary construction areas, including crane paths, public road improvements, a laydown yard, and a concrete batch plant(s) (as needed), and one permanent meteorological tower. The Project would interconnect to the existing Leland Olds to Fort Thompson transmission line via a new 500-foot transmission interconnection line within the Project area. Triple H has entered into an agreement with Walmart and another undisclosed buyer for the electricity generated by the Project. The remaining 52 MW will be sold on a merchant basis. On March 19, 2019, the Commission held a public input hearing in Highmore. No applications for Party Status were received by the Commission. On May 21, 2019, Commission staff (staff) and Triple H filed a Joint Motion for Approval of Settlement Stipulation and a Settlement Stipulation resolving all issues except for the funding for the decommissioning of the Project and the risks associated with ice throw. On May 21, 2019, staff filed its Memorandum in support of the Settlement Stipulation.
TODAY, shall the Commission grant the Joint Motion for Approval of Settlement Stipulation and approve the terms and conditions stipulated therein? OR, how shall the Commission proceed?
4. EL19-018 In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of Its Plan to Provide Proceeds to Customers From a Settlement regarding the Outage at Sherco Unit 3 (Staff Analyst: Brittany Mehlhaff; Staff Attorney: Kristen Edwards)
On April 26, 2019, Northern States Power Company dba Xcel Energy filed for approval of its plan to provide proceeds to customers resulting from a settlement with General Electric Company, General Electric International, Inc., GE Energy Services, Inc., and GE Energy Control Solutions, Inc. in connection with the November 19, 2011, outage at Unit 3 of the Sherburne County Generation Station (Sherco 3). Xcel proposes to credit the settlement proceeds to South Dakota electric customers in the form of a one-time bill credit. Xcel proposes this bill credit be combined with the ninth Department of Energy bill credit already scheduled for implementation in August 2019.
TODAY, shall the commission approve Northern States Power Company’s request to credit the settlement proceeds regarding the outage at Sherco Unit 3 in the form of a one-time bill credit combined with the ninth Department of Energy bill credit already scheduled for implementation in August 2019? OR, how shall the Commission proceed?
5. EL19-021 In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Southeastern Electric Cooperative, Inc. and Northern States Power Company dba Xcel Energy (Staff Analyst: Lorena Reichert; Staff Attorney: Kristen Edwards)
On May 1, 2019, Commission staff filed an Electric Service Territory Boundary legal description and maps for the boundary between Southeastern Electric Cooperative, Inc. and Northern States Power Company dba Xcel Energy. 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. Staff filed a revised legal description on May 13, 2019. Staff anticipates that the companies will sign an electric service territory boundary agreement prior to the commission meeting.
TODAY, shall the Commission approve the proposed electric service territory boundary agreement? OR, how shall the Commission proceed?
Gas and Electric
1. GE19-002 In the Matter of the Filing by MidAmerican Energy Company for the Approval of Its Reconciliation and Annual Report for 2018 and 2018 Reconciliation for the Energy Efficiency Cost Recovery Factor (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)
On April 12, 2019, the Commission received a filing from MidAmerican Energy Company (MidAmerican) that included the company’s 2018 Energy Efficiency Plan Annual Report and reconciliation of the company’s Energy Efficiency Plan cost recoveries for the 2018 calendar year. Further, MidAmerican requested approval of its 2019 Energy Efficiency Cost Recovery Factors that account for the 2018 reconciliation amounts, the 2018 performance incentive, and the 2019 Energy Efficiency Plan budget approved by the Commission in docket GE17-002. MidAmerican requested an effective date of May 31, 2019, for the Energy Efficiency Cost Recovery Factors and accompanying tariff sheets. On April 29, 2019, MidAmerican responded to staff’s data requests.
TODAY, shall the Commission approve the 2018 reconciliation amounts and the 2018 performance incentive? AND, shall the Commission approve the changes to the Energy Efficiency Cost Recovery Factors and tariff sheets, with an effective date of May 31, 2019?
Natural Gas
1. NG19-004 In the Matter of the Filing by MidAmerican Energy Company for Approval of Its 2018 Economic Development Activities and 2019 Proposed Budget (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)
On May 1, 2019, MidAmerican Energy Company (MidAmerican) filed its 2018 Economic Development Activities and Proposed 2019 Budget for Commission approval. The filing included MidAmerican’s report on 2018 economic development activities, actual expenses for 2018, and the planned budget for 2019. On May 15, 2018, MidAmerican responded to staff’s data request.
TODAY, shall the Commission approve MidAmerican Energy Company’s 2018 Economic Development Activities and 2019 Proposed Budget?
Telecommunications
1. TC19-007 In the Matter of the Application of Teliax, 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 April 8, 2019, the Commission received an Application from Teliax, Inc. (Teliax) for a certificate of authority to provide local exchange and interexchange long distance services in South Dakota. On April 26, 2019, Teliax responded to Commission staff’s (staff) data request 1-6. On May 16, 2019, the company filed a letter requesting to withdraw the Application.
TODAY, shall the Commission grant Teliax’s request to withdraw its Application without prejudice and close the docket?
2. TC19-009 In the Matter of the Petition of North American Local, LLC for Designation as an Eligible Telecommunications Carrier in the State of South Dakota (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)
On April 24, 2019, the Commission received a Petition for Designation as an Eligible Telecommunications Carrier from North American Local, LLC for the purpose of offering Lifeline services on a wireless basis in the State of South Dakota. On May 10, 2019, the South Dakota Telecommunications Association and Cheyenne River Sioux Tribe Telephone Authority filed Petitions to Intervene.
TODAY, shall the Commission grant intervention to any parties that may have filed?
3. TC19-010 In the Matter of the Request of Farmers Mutual Telephone Company for Certification Regarding Its Use of Federal Universal Service Support (Study Area 361389) (Staff Analyst: Joseph Rezac; Commission Attorney: Adam de Hueck)
On May 1, 2019, the Commission received a request from Farmers Mutual Telephone Company for a waiver of the South Dakota Public Utilities Commission’s filing requirements under ARSD 20:10:32:56. Farmers Mutual Telephone Company currently has 14 voice subscribers in the West Marietta exchange and believes the ETC certification process in South Dakota to be unduly burdensome and unnecessary for its 14 customers.
TODAY, shall the Commission grant the waiver and provide a certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the use of Federal Universal Service Support?
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, June 11, 2019, at 9:30 a.m. CDT in Room 413 at the State Capitol Building, Pierre, South Dakota.
- An evidentiary hearing in 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 is scheduled to begin at 1:00 p.m. CDT Tuesday, June 11, and continue through Friday, June 14, 2019, in Room 413 at the State Capitol Building, Pierre, S.D.
- Commission meetings are scheduled for June 25 and July 9, 2019.
/s/Cindy Kemnitz .
Cindy Kemnitz
Finance Manager
PUC Email
May 21, 2019
