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South Dakota Public Utilities Commission Meeting
December 21, 2021, 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, December 20, 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 November 23 and December 8, 2021 (Staff: Juli Hedrick)

Consumer Reports

1.      Status Report on Consumer Utility Inquiries (Consumer Affairs: Deb Gregg)

Telecommunications

1.      TC21-122        In the Matter of the Approval of an ICC VoIP Amendment to the Interconnection Agreement between Qwest Corporation dba CenturyLink QC and Midcontinent Communications for the State of South Dakota (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

         On November 29, 2021, the Commission received a filing pursuant to 47 U.S.C. § 252 for approval of an ICC VoIP Amendment to the Interconnection Agreement between Qwest Corporation dba CenturyLink QC and Midcontinent Communications.

         TODAY, shall the Commission approve the amendment to the interconnection agreement?

2.      TC21-123        In the Matter of the Approval of a Carrier Partner for Interconnected VoIP Provider Amendment to the Interconnection Agreement between Qwest Corporation dba CenturyLink QC and Midcontinent Communications for the State of South Dakota (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

         On November 29, 2021, the Commission received a filing pursuant to 47 U.S.C. § 252 for approval of a Carrier Partner for Interconnected VoIP Provider Amendment to the Interconnection Agreement between Qwest Corporation dba CenturyLink QC and Midcontinent Communications.

         TODAY, shall the Commission approve the amendment to the interconnection agreement?

3.      TC21-124        In the Matter of the Approval of the Petition for Arbitration of an Interconnection Agreement Between Midcontinent Communications and James Valley Cooperative Telephone Company (Staff Analyst: Brittany Mehlhaff; Staff Attorney: Kristen Edwards)

         On December 6, 2021, Midcontinent Communications filed a Petition for Arbitration of an Interconnection Agreement Between Midcontinent Communications and James Valley Cooperative Telephone Company. Pursuant to SDCL 49-31-44, each telecommunications company that is a party to a docket involving arbitration of an interconnection agreement shall make a deposit not to exceed seventy-five thousand dollars in the telecommunications investigation fund to defray the expenses incident to conducting the hearing or investigation of the company making the deposit.

         TODAY, shall the commission order a filing fee to defray the expenses incident to conducting the hearing or investigation in this docket?

Electric

1.      EL08-031        In the Matter of the Application by Buffalo Ridge II LLC a Subsidiary of Iberdrola Renewables, Inc., for an Energy Conversion Facility Permit for the Construction of the Buffalo Ridge II Wind Farm and Associated Collection Substation and Electric Interconnection System. (Staff Analyst: Darren Kearney; Staff Attorney: Amanda Reiss)

         On October 31, 2008, Buffalo Ridge II LLC a subsidiary of Iberdrola Renewables, Inc., (Buffalo Ridge or Applicant) submitted an application for an Energy Conversion Facility Permit for the Construction of the Buffalo Ridge II Wind Farm and Associated Collection Substation and Electric Interconnection System to be located in Brookings and Deuel counties. The project consists of 105 wind turbines with a total generating capacity of 210 MWs, as well as a 13-mile long 115 kilovolt overhead transmission line. On April 23, 2009, the Commission issued its Final Decision and Order (Permit) authorizing the construction of the Project. Condition 24 of the Permit required Buffalo Ridge to file a Project status report, updated decommissioning plan and financial information for the Applicant in accordance with ARSD 20:10:22:33.01 for the Commission’s review and approval within 90 days following the date 10 years after the project commences operation. Further, Condition 24 also states that at such time the Commission will determine whether the Applicant shall be required to provide a bond, letter of credit, guarantee or other security to assure adequate funding is available for decommissioning. On March 31, 2021, Buffalo Ridge filed a Wind Project Decommissioning Plan for the Buffalo Ridge II Wind Project. On May 5, 2021, Buffalo Ridge filed a Project Status Report. On July 8, 2021, Buffalo Ridge and Commission staff filed a Joint Motion for Approval of Decommissioning Plan and Stipulation of Financial Assurance. At the August 3, 2021, Commission meeting, the Commission requested certain revisions be made to the Joint Motion for Approval of Decommissioning Plan and Stipulation of Financial Assurance. On September 21, 2021, Buffalo Ridge and staff filed an Amended Joint Motion for Approval of Decommissioning Plan and Stipulation of Financial Assurance. On October 1, 2021, the Commission issued an Order Granting Amended Joint Motion for Approval of Decommissioning Plan and Stipulation of Financial Assurance (Financial Assurance Order). On December 2, 2021, Buffalo Ridge II filed a Motion to Approve Bond in accordance with the Financial Assurance Order. 

         TODAY, shall the Commission approve the Motion to Approve Bond?

2.      EL21-028        In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of Its 2022 Infrastructure Rider Project Eligibility and Factor Update (Staff Analysts: Patrick Steffensen, Eric Paulson; Staff Attorney: Kristen Edwards)

         On October 1, 2021, the Commission received a Petition by Northern States Power Company dba Xcel Energy (Xcel) for approval of its 2022 Infrastructure Rider Project Eligibility and Factor Update. Xcel requests approval of project eligibility of two additional wind projects consistent with SDCL 49-34A-73 and the Settlement Stipulation in Docket GE17-003, operation and maintenance expenses associated with wind investments, the Infrastructure Rider Tracker Report and true-up for the 2021 revenue requirements, 2022 Infrastructure Rider revenue requirements of $30.0 million, an updated Infrastructure Rider Adjustment Factor of $0.013865 per kWh, proposed revision to the Infrastructure Rider tariff sheet, and proposed customer notice. Xcel proposes a January 1, 2022, effective date. On December 10, 2021, Xcel filed an updated Petition. In the updated Petition Xcel updates the revenue requirement to $28.9 million, the rate to $0.013361, and states the average bill impact for a residential customer using 750 kWh per month will be an estimated $10.02, a $1.10 increase over the 2021 impact.

         TODAY, shall the Commission approve the proposed projects as eligible for recovery and approve the Infrastructure Rider Adjustment factor of $0.013361 per kWh and revised tariff sheet with an effective date of January 1, 2022?

3.      EL21-032        In the Matter of Otter Tail Power Company’s Petition for Approval of Real Time Pricing Rider Tariff (Staff Analyst: Patrick Steffensen; Staff Attorney: Kristen Edwards)

         On November 19, 2021, Otter Tail Power Company (Otter Tail) filed a Petition for approval of tariff revisions to its Real Time Pricing Rider. In its Petition, Otter Tail states that the changes will provide clarification of its service conditions and requirements. On December 7, 2021, Valley Queen Cheese Factory, Inc. (Valley Queen) filed a Petition for Intervention.

         TODAY, shall the Commission grant Valley Queen’s Petition for Intervention?

4.      EL21-034        In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of Tariff Revisions regarding Additional Customer Signature Options (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)

         On November 22, 2021, the Commission received a filing from Northern States Power Company dba Xcel Energy for approval of tariff modifications intended to enhance the customer experience by enabling additional signature and document execution options including online “click-and-agree” and digital signatures on customer forms.

         TODAY, shall the Commission approve the proposed tariff revisions?

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 requested 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. 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 Montana Dakota Utilities Company, NorthWestern Energy, and MidAmerican Energy Company’s (MidAmerican) Customers. On December 9, 2021, MidAmerican filed a letter requesting to modify its Purchased Gas Cost Adjustment rate mitigation plan to extend the recovery period through April 2022. MidAmerican was not able to collect expected costs due to the increasing market price of natural gas coupled with less volumes due to warmer weather. The requested modification will allow MidAmerican to recover the remaining gas costs without causing additional undue burden on its customers.    

         TODAY, shall the Commission approve MidAmerican Energy Company’s requested modification to its Purchased Gas Cost Adjustment rate mitigation plan? OR how shall the Commission proceed?

Grain Warehouse

1.      GW21-006      In the Matter of the PUC Staff’s Complaint Against West Plains, LLC For Violations of SDCL 49-45-1 (Grain Warehouse Program Manager: Cody Chambliss; Staff Attorney: Kristen Edwards)

         On November 29, 2021, staff filed a Complaint Against West Plains, LLC alleging West Plains purchased 123 loads of grain without a grain buyer license. On December 9, 2021, staff and West Plains filed a Settlement agreeing to and requesting approval of a $12,000 fine to resolve all issues in this docket.

         TODAY, shall the Commission adopt the Settlement and impose a fine of $12,000 against West Plains, LLC? OR how shall the Commission proceed?

Natural Gas

1.      NG21-010       In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of a Contract with Deviations with Brightmark Mill Valley RNG LLC (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)

         On November 17, 2021, NorthWestern Corporation dba NorthWestern Energy (NorthWestern) filed for approval of a contract with deviations with Brightmark Mill Valley RNG LLC (Brightmark). Brightmark desires to have NorthWestern install a natural gas pipeline that is approximately 3 miles in length. This pipeline will be used to transport renewable natural gas from the dairy farm it is being produced at, to an interconnection point roughly 1 mile south of Milbank, South Dakota. NorthWestern states that based on the cost of the project, it requires fixed monthly charge, take or pay volumes, and a security for the capital investment cost in order to protect its legacy customers. NorthWestern has also included natural gas quality standards Brightmark must achieve to have gas transported in the pipeline. The contract includes recovery of the pipeline project costs over a 15-year period and project costs will be recovered through a fixed monthly charge. An annual review will be conducted to determine if volumes have met the required take or pay amount. All volume charges will be billed at the tariff rate 87. On December 2, 2021, NorthWestern filed an Amended Agreement.

         TODAY, shall the Commission approve NorthWestern Energy’s contract with deviations with Brightmark Mill Valley RNG, LLC and the associated tariff revisions with an effective date of December 21, 2021?

2.      NG21-011       In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of a Contract with Deviations with POET Biorefining - Mitchell, LLC (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)

         On December 13, 2021, NorthWestern Corporation dba NorthWestern Energy (NorthWestern) filed for approval of a contract with deviations with POET Biorefining - Mitchell, LLC (POET Biorefining or Customer). POET Biorefining has reached the expiration of the 5-year extension to their contract. NorthWestern desires to provide this customer with continuing natural gas service and has negotiated a new contract with deviations. This new rate will allow NorthWestern to maintain this Customer and will benefit NorthWestern and its natural gas customers through recovery of administration and general costs and common costs from this Customer. NorthWestern requests approval on less than thirty days’ notice with an effective date for the tariff revisions of January 1, 2022.

         TODAY, shall the Commission approve NorthWestern Energy’s contract with deviations with POET Biorefining - Mitchell, LLC and the associated tariff revisions with an effective date of January 1, 2022, on less than 30 days’ notice?

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 PUC office will be closed Friday, December 24, 2021, in observance of the Christmas holiday.

2.   The PUC office will be closed Friday, December 31, 2021, in observance of the New Year holiday.

3.   A show cause hearing for the following dockets will be held Tuesday, January 4, 2022, at 9:00 a.m. CST in Room 413 at the State Capitol Building, Pierre, South Dakota.

  • TC21-119 - In the Matter of DataBytes Inc.'s Failure to Timely Pay the Gross Receipts Tax
  • TC21-120 - In the Matter of T C Telephone LLC dba Horizon Cellular's Failure to Timely Pay the Gross Receipts Tax
  • TC21-121 - In the Matter of Wing Tel, Inc.'s Failure to Timely Pay the Gross Receipts Tax

4.   The next regular commission meeting will be Tuesday, January 4, 2022, at 9:30 a.m. CST in Room 413 at the State Capitol Building, Pierre, South Dakota.

5.   The PUC office will be closed Monday, January 17, 2022, in observance of Martin Luther King, Jr. Day.

6.   The PUC will host a Briefing for Legislators on Tuesday, January 18, 2022, at 4:00 p.m. CST in Room 413 at the State Capitol Building, Pierre, South Dakota. The agenda is to discuss current issues related to telecommunications, energy regulation and grain warehouses

7.   Commission meetings are scheduled for January 18 and February 1, 2022.

 

/s/ Cindy Kemnitz                 .
Cindy Kemnitz
Finance Manager
puc@state.sd.us
December 14, 2021