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South Dakota Public Utilities Commission Meeting
June 11, 2019, at 9:30 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, June 10, 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

Consumer Reports

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

Electric

1.     EL18-038     In the Matter of the Complaint of Energy of Utah, LLC and Fall River Solar, LLC Against Black Hills Power Inc. dba Black Hills Energy for Determination of Avoided Cost (Staff Analysts: Jon Thurber, Darren Kearney, Brittany Mehlhaff; Staff Attorney: Kristen Edwards)

On September 14, 2018, Energy of Utah and Fall River Solar, LLC (Fall River) filed a Complaint against Black Hills Power Inc. dba Black Hills Energy (BHE) for determination of avoided cost pursuant to the Public Utility Regulatory Policy Act of 1978 (PURPA). The Complaint relates to a planned 80-megawatt solar facility Fall River is developing in Fall River County, South Dakota. BHE filed an answer on October 4, 2018. On December 19, 2018, staff filed a Motion for Procedural Schedule. On April 9, 2019, the parties submitted a stipulated procedural schedule which was amended on April 25, 2019. On May 7, 2019, BHE filed direct testimony and exhibits. On May 30, 2019, Fall River filed a Motion for Order Compelling Responses to Discovery Requests. On May 31, 2019, the Commission issued an Order for and Notice of Motion Hearing on Less Than 10 Days’ Notice.

     TODAY, shall the Commission grant the Motion for Order Compelling Responses to Discovery Requests? OR, how shall the Commission proceed?

2.     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 Analysts: Joseph Rezac, Patrick Steffensen; Staff Attorney: Amanda Reiss)

On March 1, 2019, Montana-Dakota Utilities Co., a Subsidiary of MDU Resources Group Inc., (MDU) filed for approval of its annual update to its Infrastructure Rider Rate, pursuant to the terms of the company’s Infrastructure Rider Rate 56 tariff. MDU proposed to increase the tariff rate to $0.00583 per kWh for the rate period covered by this filing. The proposed increase was due in part to inclusion of the Thunder Spirit Wind Expansion. On May 7, 2019, the Commission issued an Order Approving Infrastructure Rider Rate. On May 22, 2019, MDU filed for approval of its revision to its Infrastructure Rider Rate 56 tariff. MDU is proposing to increase the tariff rate to $0.00719 per kWh for the remainder of the rate period, effective July 1, 2019, through April 30, 2020, to include recovery of the Bowdle Substation project, as suggested by the Commission at its May 14, 2019, meeting.

     TODAY, shall the Commission approve the request to increase the Infrastructure Rider Rate tariff to $0.00719 per kWh and approve the associated tariff sheet with an effective date of July 1, 2019?

3.     EL19-017     In the Matter of the Joint Request for Service Rights Exception between NorthWestern Corporation dba NorthWestern Energy and Dakota Energy Cooperative Inc. (Staff Analyst: Lorena Reichert; Staff Attorney: Kristen Edwards)

On April 25, 2019, the Commission received a Petition for Approval and a Consent and Agreement for Electric Service between NorthWestern Corporation dba NorthWestern Energy (Northwestern) and Dakota Energy Cooperative Inc. (Dakota Energy) to allow Dakota Energy to provide single-phase electric service to a property within the Southwest Quarter of the Southeast Quarter of Section 26 in Township 111 North, Range 62 West, 5th P.M., Beadle County, located in NorthWestern’s territory. NorthWestern responded to staff’s data request on May 29, 2019.

     TODAY, shall the Commission approve the requested service rights exception between NorthWestern Energy and Dakota Energy?

4.     EL19-020     In the Matter of Otter Tail Power Company’s 2018 South Dakota Energy Efficiency Plan Status Report and 2019 Annual Filing to Update the Energy Efficiency Adjustment Rider (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)

On May 1, 2019, Otter Tail Power Company (Otter Tail) filed its 2018 Energy Efficiency Plan Status Report and 2019 Annual Filing to update the Energy Efficiency Adjustment Rider. Specifically, Otter Tail requests that the Commission approve its 2018 Status Report, the 2018 financial incentive of $134,700, and the proposed Energy Efficiency Adjustment Factor of $0.00164/kWh with an effective date of July 1, 2019.
     
     TODAY, shall the Commission approve Otter Tail’s 2018 Energy Efficiency Plan Status Report? AND, shall the Commission approve the 2018 financial incentive of $134,700? AND, shall the Commission approve the proposed Energy Efficiency Adjustment Factor of $0.00164/kWh with an effective date of July 1, 2019?

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. The matter was deferred at the May 28, 2019, Commission meeting. Commission staff filed a letter, an unsigned agreement, a revised legal description, and maps into the docket on May 30, 2019.

     TODAY, shall the Commission approve the proposed electric service territory boundary agreement?

6.     EL19-023     In the Matter of the Joint Request for Service Rights Exception between Southeastern Electric Cooperative, Inc. and Sioux Valley-Southwestern Cooperative, Inc. dba Sioux Valley Energy (Staff Analyst: Lorena Reichert; Staff Attorney: Kristen Edwards)

On May 2, 2019, the Commission received a Petition for Approval and a Consent and Agreement for Electric Service between Southeastern Electric Cooperative, Inc. (Southeastern) and Sioux Valley-Southwestern Cooperative, Inc. dba Sioux Valley Energy (Sioux Valley) to allow Sioux Valley to provide residential/farm electric service to a property within Section 8 in Township 100 North, Range 52 West, Turner County, located in Southeastern’s territory.

     TODAY, shall the Commission approve the requested service rights exception between Southeastern and Sioux Valley?

7.     EL19-025     In the Matter of Otter Tail Power Company’s Petition for Approval of Phase-In Rider Rate (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen; Staff Attorney: Kristen Edwards)

On May 31, 2019, the Commission received a petition by Otter Tail Power Company (Otter Tail) pursuant to SDCL 49-34A-73 for authority to implement a phase-in rate increase for its South Dakota customers to recover actual and forecasted costs for its Astoria Station and Merricourt Wind projects and forecasted net benefits associated with additional load in the Lake Norden, South Dakota, area. Astoria Station is a natural gas-fired power plant that will be constructed near Astoria, South Dakota, that will provide 245 MW of generation to Otter Tail. The Merricourt Wind project consists of 75 wind turbines approximately 15 miles south of Edgeley, North Dakota, in McIntosh and Dickey counties, that will provide 150 MW of generation to Otter Tail. Otter Tail states a typical residential electric customer using an average of 1,000 kWh per month would see an increase of $2.40 per month resulting from this filing. Otter Tail proposes a “percent of bill” Phase-In rate of 3.942 percent of base rates, effective September 1, 2019.

     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? AND, shall the Commission give the executive director authority to enter into necessary consulting contracts?

Telecommunications

1.     TC19-005     In the Matter of the Application of LTE Wireless 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 March 1, 2019, the Commission received an Application from LTE Wireless Inc. (LTE Wireless) for a certificate of authority to provide local exchange and interexchange long distance services in South Dakota. On April 23, 2019, LTE Wireless responded to Commission staff’s first data request. On May 29, 2019, the company supplemented their data responses. On June 3, 2019, the company filed a letter requesting to withdraw the Application.

     TODAY, shall the Commission grant LTE Wireless’ 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. On May 29, 2019, Boomerang Wireless LLC filed a Petition to Intervene.

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

3.     TC19-011     In the Matter of the Request of Valley Telephone Company for Certification Regarding Its Use of Federal Universal Service Support (Study Area 361495) (Staff Analyst: Lorena Reichert; Commission Attorney: Karen Cremer)

On May 1, 2019, the Commission received a request from Valley Telephone Company for a waiver of the South Dakota Public Utilities Commission’s filing requirements under ARSD 20:10:32:56. Valley Telephone Company currently has 171 voice subscribers in the West Browns Valley exchange and believes the ETC certification process in South Dakota to be unduly burdensome and unnecessary for its 171 customers.

     TODAY, shall the Commission grant the waiver? AND, if granted, shall the Commission provide a certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the use of Federal Universal Service Support? 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 chairman.

Announcements

  1. 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, South Dakota.

  2. The next regular commission meeting will be Tuesday, June 25, 2019, at 9:30 a.m. CDT in Room 413 at the State Capitol Building, Pierre, South Dakota.

  3. Commission meetings are scheduled for July 9 and 25, 2019

/s/Cindy Kemnitz          .
Cindy Kemnitz
Finance Manager
PUC Email
June 4, 2019