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South Dakota Public Utilities Commission Meeting
April 29, 2021, 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 Wednesday, April 28, 2021, 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 the Commission Meetings Held on April 1 and 13, 2021, and the Ad Hoc Meeting held on April 7, 2021 (Staff: Macy Jo Murren)
Consumer Reports
1. Status Report on Consumer Utility Inquiries (Consumer Affairs: Deb Gregg)
Telecommunications
1. TC21-003 In the Matter of the Application by Valley Telecommunications Cooperative Association, Inc. for Expanded Designation as an Eligible Telecommunications Carrier in the State of South Dakota (Staff Analyst: Brittany Mehlhaff; Staff Attorney: Amanda Reiss)
On January 29, 2021, the Commission received an application from Valley Communications, Inc. dba Valley FiberCom (Valley FiberCom) for designation as an Eligible Telecommunications Carrier in the State of South Dakota in all census blocks where it has been awarded Rural Digital Opportunity Fund (RDOF) Phase 1 support. On March 15, 2021, Valley FiberCom responded to staff’s data request. On March 30, 2021, Valley Telecommunications Cooperative Association, Inc. (Valley) filed an Amended Application for Expanded Designation as an Eligible Telecommunications Carrier. The Amended Application updates the Application from Valley’s CLEC subsidiary Valley Communications, Inc. dba Valley FiberCom to its ILEC Valley Telecommunications Cooperative Association, Inc. Valley has been awarded RDOF support for 266 census blocks in South Dakota.
TODAY, shall the Commission approve Valley Telecommunications Cooperative Association, Inc.’s application for expanded designation as an Eligible Telecommunications Carrier for the RDOF census blocks as listed in Exhibit A of the Application? AND, shall the Commission grant Valley’s request to waive the two-year plan requirement found in ARSD 20:10:32:43.02?
2. TC21-008 In the Matter of the Application of LTS Telecommunications Services (USA) Inc. for a Certificate of Authority to Provide Interexchange Service in South Dakota (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)
On February 16, 2021, LTS Telecommunications Service (USA) Inc. (LTS), filed an application for a Certificate of Authority to provide interexchange services in South Dakota. LTS seeks authority to provide switchless, full facilities based interexchange service. On March 26, 2021, LTS responded to staff’s data request.
TODAY, shall the Commission grant LTS Telecommunications Services (USA) Inc.’s request for a Certificate of Authority to Provide Interexchange Long Distance Services in South Dakota?
3. TC21-012 In the Matter of the Unbundling and Resale Requirements Amendment to the Interconnection Agreement between Qwest Corporation dba CenturyLink QC and CenturyLink Communications LLC (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)
On March 31, 2021, the Commission received a filing pursuant to 47 U.S.C. § 252 for approval of the FCC Modernizing Unbundling and Resale Requirements Amendment to the Interconnection Agreement between Qwest Corporation dba CenturyLink QC and CenturyLink Communications LLC.
TODAY, shall the Commission approve the amendment to the interconnection agreement?
4. TC21-013 In the Matter of the Unbundling and Resale Requirements Amendment to the Interconnection Agreement between Qwest Corporation dba CenturyLink QC and Level 3 Communications LLC (Staff Analyst: Eric Paulson; Staff Attorney: Amanda Reiss)
On March 31, 2021, the Commission received a filing pursuant to 47 U.S.C. § 252 for approval of the FCC Modernizing Unbundling and Resale Requirements Amendment to the Interconnection Agreement between Qwest Corporation dba CenturyLink QC and Level 3 Communications LLC.
TODAY, shall the Commission approve the amendment to the interconnection agreement?
Administration
1. AA21-002 Establishment of the Gross Receipts Tax Levy for Fiscal Year 2022 (Finance Manager: Cindy Kemnitz, Staff Attorney: Kristen Edwards)
SDCL Chapter 49-1A establishes the South Dakota Public Utilities Commission Gross Receipts Tax Fund (Fund). This Fund is financed by assessing a tax on the annual intrastate gross receipts received by a utility. The Fund is used by the Commission to defray regulatory expenses related to the regulation of telecommunications, electricity, and natural gas. On April 1 of each year, all utilities and telecommunications companies doing business in South Dakota shall file with the Commission, on forms provided by the Commission, the amount of its gross receipts derived from customers within South Dakota during the preceding calendar year pursuant to SDCL 49-1A-4. The report shall be sworn to and verified by an officer of the company. The Commission shall, by order, establish the rate and assess the tax authorized in SDCL 49-1A-3 which, together with any funds remaining from the current fiscal year and the $250 minimum gross receipt tax, will fund the Commission’s budget for the next fiscal year and provide a contingency reserve in an amount not to exceed the prior year’s budget. In accordance with SDCL 49-1A-5, the tax is due and payable on July 15 of each year. On April 19, 2021, staff filed a letter requesting a docket be opened in this matter.
TODAY, shall the Commission establish the rate and assess the Gross Receipts Tax as authorized in SDCL 49-1A-3?
Electric
1. EL21-007 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: Brittany Mehlhaff, Patrick Steffensen; Staff Attorney: Kristen Edwards)
On February 26, 2021, 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 proposes an Infrastructure Rider rate of $0.00684 per kWh for the rate period covered by this filing, which is a decrease of $0.00157 per kWh from that currently authorized. Under the Infrastructure Rider Rate 56 tariff, MDU shall update the Infrastructure Rider annually to be effective each May 1. On March 11, 2021, MDU filed a letter regarding the Lewis & Clark regulatory asset recovery and on April 16, 2021, MDU filed a revised Infrastructure Rider rate and revised tariff sheet.
TODAY, shall the Commission approve the revised Infrastructure Rider rate and revised tariff sheet with an effective date of May 1, 2021?
2. EL21-009 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 Analysts: Brittany Mehlhaff, Patrick Steffensen; Staff Attorney: Kristen Edwards)
On March 1, 2021, Montana-Dakota Utilities Co. (MDU) filed for approval of its annual update to its Transmission Cost Recovery (TCR) Rider. MDU states the proposed tariff change is necessary to reflect the projected 2021 charges assessed to MDU for transmission-related services provided by the Midcontinent Independent System Operator and Southwest Power Pool along with the projected revenues and/or credits received by MDU for transmission-related services. In addition, MDU is including the projected 2021 revenue requirements for two transmission projects approved in EL20-010 and one new transmission project in its projected 2021 TCR update. MDU proposes a TCR Rider rate of $0.00694 per kWh to be effective May 1, 2021, which is an increase of $0.00181 per kWh from that currently authorized.
TODAY, shall the Commission approve the revised Transmission Cost Recovery Rider rate and revised tariff sheet with an effective date of May 1, 2021?
3. EL21-011 In the Matter of the Application of Black Hills Power, Inc., dba Black Hills Energy to Amend its Cogeneration and Small Power Production Service Tariff (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen; Staff Attorney: Kristen Edwards)
On March 19, 2021, the Commission received an application from Black Hills Power, Inc., dba Black Hills Energy (Black Hills) requesting approval to amend its existing Cogeneration and Small Power Production Service Tariff to become its QF Service Tariff. Black Hills states this amendment will put in place conditions of service for customers installing behind-the-meter generation that are fair for all Black Hills customers. Black Hills proposes the revised rates and terms of service be effective for qualifying generation facilities placed into operation on or after June 1, 2021, and that existing customers with qualifying facilities be exempt from the terms of the amended QF Service Tariff until May 31, 2041.
TODAY, shall the Commission grant intervention to any person who may have filed?
Gas and Electric
1. GE21-001 In the Matter of Staff’s Request Regarding the February 2021 Cold Weather Event and Its Impact on Utility Fuel Clause Adjustments and Purchased Gas Adjustments (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen, Eric Paulson, Joseph Rezac; Staff Attorneys: Amanda Reiss and Kristen Edwards)
On February 17, 2021, Commission staff filed a Petition for Temporary Waiver of Fuel Clause Adjustment and Purchased Gas Adjustment Tariff Provisions to Mitigate Rate Impacts. Staff requests the Commission issue an Order authorizing staff to work with South Dakota electric and natural gas investor-owned utilities to make the necessary modifications to the fuel clause adjustment and/or purchased gas adjustment tariffs to mitigate the rate impact associated with the natural gas costs from the February 2021 cold weather event. Staff also requests the Commission provide a temporary waiver of the tariff language that might be contradictory to the modifications implemented regarding this specific weather event. On February 25, 2021, the Commission issued an Order Granting Temporary Waiver of Tariff Provisions on Less Than 30 Days’ Notice to Mitigate Rate Impacts for MDU, NorthWestern, and MidAmerican Customers. The Order specifically approved the plans as explained in staff’s memorandum and discussed at the ad hoc commission meeting on February 23, 2021 and specified that any additional modifications shall require future Commission approval. On March 31, 2021, MDU filed a letter requesting a variance to its Purchased Gas Cost Adjustment to allow an alternative computation of the surcharge amount and the timing of implementation. The requested variance will allow MDU to recover the gas costs over a 17-month period beginning May 1, 2021. MDU proposes a staggered rate recovery, in which summer rates differ from winter rates, for firm customers and a flat rate recovery method for interruptible customers.
TODAY, shall the Commission approve Montana-Dakota Utilities Company’s requested variance to its Purchased Gas Cost Adjustment Rate 88 tariff beginning May 1, 2021? OR, how shall the Commission proceed?
2. GE21-002 In the Matter of the Filing by MidAmerican Energy Company for Approval of a Revised Customer Information Welcome Booklet (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)
On March 17, 2021, the Commission received a filing from MidAmerican Energy Company (MidAmerican) for approval of a revised Customer Information Welcome Booklet. Pursuant to ARSD 20:10:16:02, the Customer Information Welcome Booklet shall be submitted to the Commission for approval. MidAmerican requests an effective date of May 1, 2021.
TODAY, shall the Commission approve the proposed revisions to MidAmerican Energy Company’s Customer Information Welcome Booklet?
Natural Gas
1. NG20-009 In the Matter of the Filing of the South Dakota Intrastate Pipeline Company for Approval of 2021 Loss and Unaccounted Adjustment Percentage (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen, Eric Paulson; Staff Attorney: Amanda Reiss)
On October 21, 2020, the Commission received a Filing for Approval of 2021 Loss and Unaccounted Adjustment Percentage from the South Dakota Intrastate Pipeline Company (SDIP). SDIP is to establish a Loss and Unaccounted Adjustment Percentage on an annual basis to be filed with and approved by the Commission and effective each January 1. On October 29, 2020, Montana-Dakota Utilities Co. filed a Petition to Intervene, and Ring-Neck Energy & Feed, LLC dba Ring-Neck Energy, LLC filed a Petition to Intervene. On November 16, 2020, 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 April 27, 2021.
TODAY, shall the Commission grant the Joint Motion for Approval of Settlement Stipulation and approve the rates, revised tariff sheet, terms and conditions stipulated therein? OR, how shall the Commission proceed?
Pipeline Safety
1. PS21-001 PUC Staff’s Request for Waiver of Certain Code Requirements Identified in PHMSA Amendment 192-128 (Pipeline Safety Program Manager: Mary Zanter; Staff Attorney: Kristen Edwards)
On March 25, 2021, staff filed a letter requesting a waiver of certain code requirements of 49 CFR 191 and 192. The purpose of the waiver is to make South Dakota pipeline safety requirements consistent with Amendment 192-128 issued by the Pipeline and Hazardous Materials Safety Administration, effective March 21, 2021.
TODAY, shall the Commission grant the requested waivers?
Items for Commission Discussion
Public Comment
Individuals who wish to make public comments to the commission may do so during this time. All who offer public comments are requested to sign in at the commission meeting or let the commission know of their wish to speak when they call in to reserve a phone line. Time limits for comments may be determined at the discretion of the commission.
Announcements
1. The next regular commission meeting will be Thursday, May 13, 2021, at 9:30 a.m. CDT in Room 413 at the State Capitol Building, Pierre, South Dakota.
2. Commission meetings are scheduled for May 25 and June 10, 2021.
/s/ Cindy Kemnitz .
Cindy Kemnitz
Finance Manager
puc@state.sd.us
April 22, 2021
