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South Dakota Public Utilities Commission Meeting
October 27, 2022, 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, October 26, 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 Meetings Held on September 27 and October 11, 2022 (Deputy Executive Director: Leah Mohr)
Consumer Reports
1. Status Report on Consumer Utility Inquiries (Consumer Affairs: Deb Gregg)
Electric
1. EL18-021 In the Matter of the Application of Otter Tail Power Company for Authority to Increase Its Electric Rates (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen, Eric Paulson, Joseph Rezac; Staff Attorney: Kristen Edwards)
On April 20, 2018, the Commission received an application by Otter Tail Power Company (Otter Tail) for approval to increase rates for electric service in its South Dakota service territory. The Commission issued an Order Granting Joint Motion for Approval of Settlement Stipulation and an Order Approving Settlement Stipulation on March 6, 2019, which resolved all issues except for return on equity. A hearing was held on March 26, 2019, regarding the issue of rate of return on equity. On May 24, 2019, the parties filed the final revenue requirement reflecting the May 14, 2019, Commission decision on rate of return of equity. On May 30, 2019, the Commission issued a Final Decision and Order. On July 9, 2019, the Commission issued an Order Approving Interim Refund Plan; Order Approving Tariff Revisions. On July 22, 2019, Otter Tail filed the final revised tariff pages as approved, effective August 1, 2019. On September 22, 2022, Otter Tail filed a letter regarding tariff revisions to correct parallel language in two tariff sections, 10.02 and 10.03, pertaining to General Service rates. Otter Tail states these changes were contemplated and resolved as part of the rate case, but were not included in the July 22, 2019, tariff compliance filing. The language changes are necessary to align the tariff language to current billing practices, calculating the low load factor based on billing demand instead of metered demand. Two customers were impacted by this change and incorrectly billed. Otter Tail proposes to refund the appropriate amounts to the two customers. Since billing has already been applied according to the desired tariff change, customers will not experience a change in billing going forward.
TODAY, shall the Commission approve the requested tariff changes, the proposed refunds to impacted customers, and the General Service Rate Brochure, effective December 1, 2022?
2. EL22-027 In the Matter of the Joint Request for Approval of an Amended Electric Service Territory Boundary Agreement between Clay-Union Electric, Inc. and the City of Vermillion (Staff Analyst: Darren Kearney; Staff Attorney: Amanda Reiss)
On October 5, 2022, the Commission received a joint request for Approval of an Amended Electric Service Territory Boundary Agreement (Agreement) from Clay-Union Electric, Inc. and the City of Vermillion. The Agreement modifies the electric service territory boundary line of the Bliss Pointe Subdivision using property pins that did not exist at the time the original electric service territory boundary agreement was approved in docket EL14-105. The purpose of the Agreement is to align the electric service territory boundary to platted lot lines.
TODAY, shall the Commission approve the Amended Electric Service Territory Boundary Agreement between Clay-Union Electric, Inc. and the City of Vermillion?
Grain Warehouse
1. GW22-005 In the Matter of the PUC Staff’s Complaint Against Organic Producers of Iowa, Nebraska, and South Dakota (OPINS), North Bend, Nebraska (Grain Warehouse Program Manager: Cody Chambliss; Staff Attorney: Amanda Reiss)
On June 17, 2022, staff filed a Complaint with the Commission against Organic Producers of Iowa, Nebraska, and South Dakota (OPINS) alleging OPINS made purchases of grain for resale without a valid grain buyer license. Staff requested the Commission assess a penalty against OPINS for violations of SDCL 49-45-1. On October 20, 2022, staff filed a letter requesting the Commission issue a scheduling order setting a hearing date and establishing a procedural schedule in this matter.
TODAY, shall the Commission issue a scheduling order setting a hearing date and establishing a procedural schedule? OR how shall the Commission proceed?
2. GW22-007 In the Matter of the Settlement Stipulation with Hefty Seed Company of Baltic, South Dakota (Grain Warehouse Program Manager: Cody Chambliss; Staff Attorney: Amanda Reiss)
On October 13, 2022, staff and Agronomy Science LLC dba Hefty Seed Company (Hefty) filed a Stipulation. In this uncontested matter, Hefty admitted to purchasing grain in South Dakota without a license. Staff and Hefty worked together to come to an agreement as to the appropriate penalty and requests the Commission to approve that agreement as set forth in the Stipulation.
TODAY, shall the Commission adopt the Stipulation and impose a fine of $15,000 against Agronomy Science LLC dba Hefty Seed Company? OR how shall the Commission proceed?
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. Five public input meetings were held between March 22 and March 25, 2022. Party status has been granted to numerous persons (Intervenors). On June 13, 2022, the Commission issued an Order Granting, in part, Motion to Extend Final Decision Deadline; Order Denying Landowners’ Motion to Dismiss and, in the Alternative, Motion for Stay. On October 13, 2022, Applicant filed Applicant’s Supplemental Application. On October 13, 2022, the Commission received a request to withdraw as an intervenor from Daniel Hoey on behalf of Intervenor West Central School District.
TODAY, shall the Commission grant withdrawal of party status to those who have requested to withdraw?
2. HP22-002 In the Matter of the Application of Navigator Heartland Greenway, LLC for a Permit Under The South Dakota Energy Conversion and Transmission Facilities Act to Construct the Heartland Greenway Pipeline in South Dakota (Staff Analysts: Darren Kearney, Jon Thurber; Staff Attorney: Kristen Edwards)
On September 27, 2022, the Commission received an Application for a Permit under the South Dakota Energy Conversion and Transmission Facilities Act to Construct the Heartland Greenway Pipeline in South Dakota (Application) from Navigator Heartland Greenway, LLC, a limited liability company owned by Navigator CO2 Ventures LLC (Navigator or Applicant). Applicant proposes to construct and operate a carbon dioxide (CO2) transmission pipeline (Project). The Project is approximately 1,300 miles of pipelines for the transportation of CO2 from more than 21 ethanol and fertilizer plants across 5 states, including 3 ethanol plants in South Dakota, that will transport captured carbon dioxide for permanent and secure underground sequestration in Illinois and/or to off-take facilities for commercial/industrial use. The Project consists of 111.9 miles of carbon dioxide pipeline in South Dakota that will cross the counties of Brookings, Moody, Minnehaha, Lincoln, and Turner. The Commission has received applications for party status from the South Dakota Telecommunications Association and Brookings County. Party status, if granted, allows a person or entity to actively participate in the proceeding through legal motions, discovery, presentation of evidence, and in-person participation in a formal hearing. The deadline to file for party status is November 28, 2022.
TODAY, shall the Commission grant party status to those who have filed?
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. Commissioners will attend the South Dakota Rural Electric Association’s Member Services Group Meeting on Wednesday, October 26, 2022, at 8:00 a.m. CDT at the Ramkota in Pierre, South Dakota.
2. The next regular commission meeting will be Tuesday, November 8, 2022, at 9:30 a.m. CST in Room 413 at the State Capitol Building, Pierre, South Dakota.
3. The PUC office will be closed Friday, November 11, 2022, in observance of the Veterans Day holiday.
4. Commissioners will attend the 2022 National Association of Regulatory Commissioners’ Annual Meeting, November 13-16, 2022, at the New Orleans Marrriott, New Orleans, Louisiana.
5. Commission meetings are scheduled for November 22 and December 6, 2022.
/s/ Cindy Kemnitz .
Cindy Kemnitz
Finance Manager
puc@state.sd.us
October 20, 2022
