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South Dakota Public Utilities Commission Meeting
April 14, 2022, 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 5:00 p.m. CDT on Wednesday, April 13, 2022, 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 Meeting Held on March 29, 2022 (Staff: Janeth Merriman)
Consumer Reports
1. Status Report on Consumer Utility Inquiries (Consumer Affairs: Deb Gregg)
Administration
1. AA22-001 Establishment of the Gross Receipts Tax Levy for Fiscal Year 2023 (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 March 18, 2022, 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?
Telecommunications
1. TC22-007 In the Matter of SDTA’s Petition for Waiver of Filing Deadline for the Commission’s Annual USF Certification Process (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)
On March 17, 2022, the Commission received a Petition for Waiver of ARSD 20:10:32:52 Filing Deadline (Petition) from the South Dakota Telecommunications Association (SDTA). In its Petition, SDTA requests that the Commission waive the June 1 deadline for recertification filings by Eligible Telecommunications Carriers (ETC) and require ETCs to file their 2023 certification petitions on or before July 1, 2022.
TODAY, shall the Commission waive the filing deadline as found in ARSD 20:10:32:52? OR how shall the Commission proceed?
Electric
1. EL09-028 In the Matter of the Application by PrairieWinds SD1, Inc., a subsidiary of Basin Electric Power Cooperative, for a Wind Energy Facility Permit for the PrairieWinds SD1 Wind Farm and Associated Facilities (Staff Analysts: Jon Thurber, Darren Kearney; Staff Attorney: Amanda Reiss)
On December 30, 2009, PrairieWinds SD1, Inc., a wholly owned subsidiary of Basin Electric Power Cooperative (Basin), submitted an application for a Wind Energy Facility Permit for the Construction of the PrairieWinds SD1 Wind Farm and Associated Facilities near Crow Lake, South Dakota (Project). The Project consists of 108 wind turbines for a total nameplate capacity of 162 MW, associated access roads, underground collector lines, a collector substation, an O&M building, and approximately 13 miles of 230 kV transmission line. On July 14, 2010, the Commission issued an Order Approving Joint Motion for Approval of Stipulation (Permit) authorizing the construction of the Project. On November 1, 2021, the Commission issued an Order Granting Join Motion for Approval of Decommissioning Plan and Stipulation of Financial Assurance (Stipulation). Within 90 days of the Commission order approving the Stipulation, Basin was required to file with the Commission a surety bond, for Commission review and approval, in the amount of $15,112,233 to cover the Project’s decommissioning obligation. On January 31, 2022, Basin filed a Motion to Approve Bond and Motion for Release of Road and Public Infrastructure Restoration Bond.
TODAY, shall the Commission grant Basin’s Motion to Approve Bond? AND shall the Commission Grant Basin’s Motion for Release of Road and Public Infrastructure Restoration Bond?
2. EL22-008 In the Matter of the Filing of Northern States Power Company dba Xcel Energy for Approval of Its 2021 Economic Development Activities and 2022 Budget (Staff Analyst: Brittany Mehlhaff; Staff Attorney: Kristen Edwards)
On March 8, 2022, Northern States Power Company dba Xcel Energy (Xcel) filed for approval of its 2021 Economic Development Annual Report and 2022 Economic Development Budget. The filing includes Xcel’s report on the 2021 budgeted and actual economic development expenses and provides documentation of the actual expenses incurred. The filing also details a proposed economic development budget for 2022.
TODAY, shall the Commission approve Xcel Energy’s 2021 Economic Development Report and its 2022 Economic Development Budget?
Grain Warehouse
1. GW22-004 In the Matter of the PUC Staff’s Complaint Against Crossroads Cooperative (Grain Warehouse Manager: Cody Chambliss; Staff Attorney: Amanda Reiss)
On March 8, 2022, staff filed a Complaint against Crossroads Cooperative, Sidney, Nebraska, for violations of SDCL 49-45-1 and 49-45-26. In its complaint, staff alleged Crossroads Cooperative made numerous purchases of grain for resale between July of 2020, and March 8, 2022, a period in which Crossroads Cooperative did not hold a valid grain buyer license or grain buyer bond. Additionally, Crossroads failed to provide information requested by staff in accordance with SDCL 49-45-26. Staff has engaged in discussions with Crossroads Cooperative regarding this complaint and on April 1, 2022, filed a Settlement Agreement for Commission consideration.
TODAY, shall the Commission approve the Settlement Agreement and assess a penalty in the amount of $28,000 for violations of SDCL 49-45-1 and 49-45-26? OR how shall the Commission proceed?
Natural Gas
1. NG22-002 In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of a Contract with Deviations with Redfield Energy, LLC (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)
On March 23, 2022, NorthWestern Corporation dba NorthWestern Energy (NorthWestern) filed for approval of a contract with deviations with Redfield Energy, LLC (Redfield Energy or Customer). Redfield Energy has reached the expiration of their current contract with deviations. 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 with an effective date for the tariff revisions of May 1, 2022.
TODAY, shall the Commission approve NorthWestern Energy’s contract with deviations with Redfield Energy, LLC and the associated tariff revisions with an effective date of May 1, 2022?
2. NG22-003 In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of a Contract with Deviations with Ben Crick (Staff Analyst: Brittany Mehlhaff; Staff Attorney: Kristen Edwards)
On March 28, 2022, NorthWestern Corporation dba NorthWestern Energy (NorthWestern) filed for approval of a contract with deviations with Ben Crick. Ben Crick desires to have natural gas service extended to his location for grain drying requirements. NorthWestern states that based on the cost of the project, it requires security for the capital investment cost and an annual surcharge in order to protect its legacy customers. The contract includes recovery of the project costs over a 10-year period. The project costs and tariff delivery charges will be recovered through tariff rate 85 plus a fixed annual charge. An annual review will be conducted to determine if the volume requirement is met. On March 31, 2022, NorthWestern filed a revised tariff page.
TODAY, shall the Commission approve NorthWestern Energy’s contract with deviations with Ben Crick and the associated tariff revisions with an effective date of May 1, 2022?
Hydrocarbon and Carbon Dioxide Pipeline
1. HP22-001 In the Matter of the Application by SCS Carbon Transport LLC for a Permit to Construct a Carbon Dioxide Transmission Pipeline (Staff Analysts: Darren Kearney, Jon Thurber; Staff Attorney: Kristen Edwards)
On February 7, 2022, the Commission received an Application for a Permit to Construct a Carbon Dioxide Transmission Pipeline (Application) from SCS Carbon Transport LLC (Applicant). Applicant proposes to construct and operate a carbon dioxide (CO2) transmission pipeline (Project). The Project is approximately 2,000 miles of pipelines for the transportation of CO2 from more than 30 ethanol plants across five states, including seven ethanol plants in South Dakota, to underground injection control facilities in North Dakota. The proposed route of the main line enters South Dakota in Lincoln County at the Iowa/South Dakota border and extends in a northwesterly direction, exiting the state at the South Dakota/North Dakota border in McPherson County. In addition to the main line, the proposed Project includes lateral and trunk lines connecting ethanol plants to the main line. The proposed length of pipelines through South Dakota would be approximately 469 miles and would cross the counties of Beadle, Brown, Clark, Codington, Edmunds, Hamlin, Hand, Hyde, Kingsbury, Lake, Lincoln, McCook, McPherson, Minnehaha, Miner, Spink, Sully, and Turner. Five public input meetings were held between March 22 and March 25, 2022. Pursuant to ARSD 20:10:22:40, the deadline for persons to file an application for party status is April 8, 2022. There is no deadline to submit public comments to the Commission. The Applications for Party Status received by the Commission can be viewed at: https://puc.sd.gov/Dockets/HydrocarbonPipeline/2022/HP22-001partystatus.aspx.
TODAY, shall the Commission grant Party Status to those who have filed? 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 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 April 15 and 18, 2022, in observance of Easter.
2. The next regular commission meeting will be Thursday, April 28, 2022, at 9:30 a.m. CDT in Room 413 at the State Capitol Building, Pierre, South Dakota.
3. Commission meetings are scheduled for May 10 and 24, 2022.
/s/ Cindy Kemnitz .
Cindy Kemnitz
Finance Manager
puc@state.sd.us
April 7, 2022
