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South Dakota Public Utilities Commission Meeting
January 7, 2020, at 9:30 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, January 6, 2020, 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 (Consumer Affairs: Deb Gregg)
Electric
1. EL17-006 In the Matter of the Application of Black Hills Power, Inc. dba Black Hills Energy for Approval of 2017 Transmission Facility Adjustment (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen, Jon Thurber; Staff Attorney: Kristen Edwards)
On February 15, 2017, Black Hills Power, Inc. dba Black Hills Energy (BHE) filed an Application for Approval of its 2017 Transmission Facilities Adjustment. On June 9, 2017, BHE and Commission staff (staff) filed a Settlement Stipulation and Joint Motion for Approval of Settlement Stipulation. The Commission issued an Order Granting Joint Motion for Approval of Settlement Stipulation on June 20, 2017. On May 1, 2018, BHE and staff filed an Amendment to Settlement Stipulation and Joint Motion for Approval of Amendment to Settlement Stipulation. The Commission issued an Order Granting Joint Motion for Approval of Amendment to Settlement Stipulation on May 16, 2018. On December 31, 2019, BHE and staff filed a Second Amendment to Settlement Stipulation and Joint Motion for Approval of Second Amendment to Settlement Stipulation. Staff also filed a Memorandum Supporting Second Amendment to Settlement Stipulation on December 31, 2019.
TODAY, shall the Commission grant the Joint Motion for Approval of Second Amendment to Settlement Stipulation and approve the terms and conditions stipulated therein?
2. EL17-008 In the Matter of the Application of Black Hills Power, Inc. dba Black Hills Energy for Approval of Its 2017 Environmental Improvement Adjustment (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen, Jon Thurber; Staff Attorney: Kristen Edwards)
On February 15, 2017, Black Hills Power, Inc. dba Black Hills Energy (BHE) filed an Application for Approval of its 2017 Environmental Improvement Adjustment. On June 9, 2017, BHE and Commission staff (staff) filed a Settlement Stipulation and Joint Motion for Approval of Settlement Stipulation. The Commission issued an Order Granting Joint Motion for Approval of Settlement Stipulation on June 20, 2017. On May 1, 2018, BHE and staff filed an Amendment to Settlement Stipulation and Joint Motion for Approval of Amendment to Settlement Stipulation. The Commission issued an Order Granting Joint Motion for Approval of Amendment to Settlement Stipulation on May 16, 2018. On December 31, 2019, BHE and staff filed a Second Amendment to Settlement Stipulation and Joint Motion for Approval of Second Amendment to Settlement Stipulation. Staff also filed a Memorandum Supporting Second Amendment to Settlement Stipulation on December 31, 2019.
TODAY, shall the Commission grant the Joint Motion for Approval of Second Amendment to Settlement Stipulation and approve the terms and conditions stipulated therein?
3. 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 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 July 26, 2019, the Commission issued a Final Decision and Order Granting Permit to Construct Facility; Notice of Entry (Permit). Pursuant to Condition 2 of the Permit, Applicant must follow all commitments made by Applicant in response to data requests. In response to a staff data request, Applicant committed to utilizing low noise trailing edge (LNTE) blades. On December 13, 2019, Crowned Ridge filed a Request for Limited and Temporary Waiver, requesting, due to weather, Crowned Ridge be granted a temporary waiver of Condition 2(3) as it relates to the requirement to install LNTE on all turbine blades. Through curtailment of turbines, Crowned Ridge states it will nonetheless comply with sound permit limits. Crowned Ridge stated in its Request that it plans to have the LNTE blades installed on all turbines in late spring or early summer of 2020. On December 16, 2019, Intervenors filed a Notice of Insufficient Notice for Action and Request to Postpone Crowned Ridge Wind, LLC’s Request for Limited and Temporary Waiver to Condition 2. On December 20, 2019, at its regularly scheduled meeting, the Commission deferred this matter to a December 30, 2019, Ad Hoc Meeting. On December 30, 2019, at its Ad Hoc Meeting, the Commission deferred this matter to the January 7, 2020, Commission Meeting.
TODAY, shall the Commission grant Applicant’s Request for Limited and Temporary Waiver? OR, how shall the Commission proceed?
4. EL19-040 In the Matter of the Petition of Montana-Dakota Utilities Co., a Subsidiary of MDU Resources Group Inc., for Approval of Deferred Accounting Treatment for Retiring of the Lewis & Clark 1, Heskett 1 and Heskett 2 Coal-Fired Generators (Staff Analyst: Eric Paulson; Staff Attorney: Amanda Reiss)
On November 1, 2019, Montana-Dakota Utilities Co. (MDU) filed for approval of Deferred Accounting Treatment for costs related to the retirement of the Lewis & Clark 1, Heskett 1 and Heskett 2 Coal-Fired Generators until its next rate case. On November 8, 2019, MDU filed an amended application for Deferred Accounting. MDU expects that the total cost to be deferred to the next rate case will be approximately $4.8 million at the South Dakota level. This anticipated total deferred cost consists of $4.0 million in accelerated depreciation, $(0.3) million in excess deferred taxes, $0.8 million in decommissioning cost, and $0.3 million in employee retention costs.
TODAY, shall the Commission approve Montana-Dakota Utilities Co.’s request for Deferred Accounting Treatment for costs related to the retirement of the Lewis & Clark 1, Heskett 1 and Heskett 2 Coal-Fired Generators until Company’s next rate case?
5. EL19-041 In the Matter of the Filing by Montana-Dakota Utilities Co. for Approval of Tariff Revisions to Its Rates for Rate 95 and Rate 96 (Staff Analyst: Eric Paulson; Staff Attorney: Amanda Reiss)
On November 15, 2019, Montana-Dakota Utilities Co. (MDU) filed for approval of tariff revisions for Rate 95 (occasional power purchase non-time differentiated) and Rate 96 (short-term power purchase). This filing updates the energy and capacity payments based on current data. MDU states it currently has only one customer taking service under these rates and the annual change in revenue due to this filing will be minimal. On December 13, 2019, MDU filed its response to staff’s data request.
TODAY, shall the Commission approve Montana-Dakota Utilities Co.’s tariff revisions with an effective date of January 7, 2020?
6. EL19-042 In the Matter of the Joint Request for Service Rights Exception between NorthWestern Corporation dba NorthWestern Energy and Central Electric Cooperative, Inc. (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)
On December 12, 2019, the Commission received a Petition for Approval and a Consent and Agreement for Electric Service between NorthWestern Corporation dba NorthWestern Energy (Northwestern) and Central Electric Cooperative Inc. (Central) to allow Central to provide single-phase electric service not to exceed 50 KVA to a property within the West ½ of the Northeast ¼ of Section 9, Township 101 North, Range 60 West of the 5th P.M., Davison County, located in NorthWestern’s territory.
TODAY, shall the Commission approve the requested service rights exception between NorthWestern Energy and Central Electric Cooperative Inc.?
Natural Gas
1. NG19-011 In the Matter of the Petition of South Dakota Intrastate Pipeline Company for a Waiver of Loss and Unaccounted Calculation for 2020 (Staff Analysts: Patrick Steffensen, Eric Paulson; Staff Attorneys: Kristen Edwards, Amanda Reiss)
On December 3, 2019, the Commission received a Petition for a Waiver of Loss and Unaccounted Calculation for 2020 from South Dakota Intrastate Pipeline Company (SDIP). SDIP makes such request for a waiver in order for SDIP to accurately calculate its Loss and Unaccounted Adjustment Percentage. On December 9, 2019, Montana-Dakota Utilities Co. filed a Petition to Intervene. On December 12, 2019, Ring-Neck Energy & Feed, LLC dba Ring-Neck Energy, LLC filed a Petition to Intervene. On December 31, 2019, the Commission issued an Order Granting Intervention. The parties are expected to file a Joint Motion for Approval of Settlement Stipulation, Settlement Stipulation, and revised tariff page by January 3, 2020.
TODAY, shall the Commission grant the Joint Motion for Approval of Settlement Stipulation and approve the rates, revised tariff sheets, terms and conditions stipulated therein? 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 commission.
Announcements
1. Commissioners will attend the South Dakota Association of Towns and Townships Board of Directors Luncheon on Tuesday, January 7, 2020, at 11:30 a.m. CST at the RedRossa Italian Grille, Pierre, South Dakota.
2. Commissioners will attend the Mid-America Regulatory Commissioners meeting, January 9-11, 2020, at the Intercontinental Stephen F. Austin Hotel, Austin, Texas.
3. The PUC office will be closed Monday, January 20, 2020, in observance of Martin Luther King, Jr. Day.
4. The next regular commission meeting will be Tuesday, January 21, 2020, at 1:30 p.m. CST in the Floyd Matthew Training Center in the Foss Building, 523 E. Capitol Ave., Pierre, South Dakota.
5. The PUC will host a Briefing for Legislators on Wednesday, January 22, 2020, at 4:00 p.m. CST in Room 414 at the State Capitol Building, Pierre, South Dakota. The agenda is to discuss current issues related to renewable energy development, telecommunications, grain warehouses, pipeline safety and energy regulation.
6. The PUC will host an Open House for Legislators on Thursday, January 23, 2020, 7:30-11:00 a.m. CST in the PUC office, first floor of the State Capitol Building, Pierre, South Dakota.
7. Commissioners and staff will meet with representatives of NorthWestern Energy on Thursday, January 30, 2020, at 9:00 a.m. CST in the Capitol Lake Visitor Center, Pierre, South Dakota. The agenda is to discuss an update of NorthWestern Energy’s operations, finance and customer service activities.
8. Commission meetings are scheduled for February 3 and 18, 2020.
/s/Cindy Kemnitz .
Cindy Kemnitz
Finance Manager
PUC Email
December 31, 2019
