South Dakota Public Utilities Commission Meeting
December 6, 2022, at 9:30 A.M. CST
Room 464, 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 5, 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 November 8 and 18, 2022 (Deputy Executive Director: Leah Mohr)
Consumer Reports
1. Status Report on Consumer Utility Inquiries (Consumer Affairs: Deb Gregg)
Electric
1. EL21-018 In the Matter of the Application by North Bend Wind Project, LLC for a Permit to Construct and Operate the North Bend Wind Project in Hyde County and Hughes County, South Dakota (Staff Analysts: Darren Kearney, Jon Thurber; Staff Attorney: Amanda Reiss)
On June 23, 2021, North Bend Wind Project, LLC (North Bend or Project) filed an application for a permit to construct the North Bend Wind Project, a wind energy facility located on approximately 46,931 acres of land in Hyde County and Hughes County, South Dakota, in the townships of Butte, Chapelle, Harrold, Holabird, Pleasant Valley, Pratt, and Webster. The total installed capacity of the Project would not exceed 200 megawatts nameplate capacity. The proposed Project includes up to 71 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 230-kV collection substation, a 230-kV interconnection switching station, an aircraft detection lighting system and one permanent meteorological tower. The Project will interconnect to the Western Area Power Administration’s Fort Thompson-Oahe 230-kV transmission line, which crosses the southern portion of the project area. The Project, at the time of filing this application, has not executed a purchase power agreement. On September 29, 2022, the Commission issued an Order Granting Joint Stipulation and Motion to Adopt Second Revised Procedural Schedule, setting the evidentiary hearing to begin on December 13, 2022. On November 7, 2022, North Bend Filed a Motion to Clarify Hearing Scope. On November 22, 2022, Intervenors Bollwegs filed a Letter Regarding Scope of Hearing.
TODAY, shall the Commission grant North Bend’s Motion to Clarify the Hearing Scope? OR how shall the Commission proceed?
2. EL22-010 In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of Its 2021 Demand Side Management Report and 2023 Proposed Demand Side Management Plan (Staff Analyst: Eric Paulson; Staff Attorney: Kristen Edwards)
On April 29, 2022, the Commission received a Petition from Northern States Power Company dba Xcel Energy (Xcel) requesting approval of the 2021 Demand Side Management (DSM) Status Report and 2023 DSM Plan. Specifically, Xcel requests approval of its 2021 DSM Tracker account, the incentive earned for 2021 program performance, the proposed 2023 DSM Cost Adjustment Factor of $0.000487 per kWh, and the proposed DSM Plan for 2023. On September 28, 2022, Xcel filed an updated Petition and revisions to the proposed 2023 DSM Plan and revised the proposed 2023 DSM Cost Adjustment Factor from $0.000487 per kWh to $0.000479 per kWh. Xcel requests an effective date of January 1, 2023, for the DSM Cost Adjustment Factor.
TODAY, shall the Commission approve Xcel’s 2021 Demand Side Management Status Report and tracker account, the performance incentive earned for 2021, the proposed 2023 Demand Side Management Plan, and the proposed 2023 Demand Side Management Cost Adjustment Factor of $0.000479 per kWh with a January 1, 2023, effective date?
3. EL22-022 In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of Its 2023 Transmission Cost Recovery Eligibility and Rate Adjustment (Staff Analyst: Patrick Steffensen; Staff Attorney: Amanda Reiss)
On September 1, 2022, the Commission received a petition from Northern States Power Company dba Xcel Energy (Xcel) for approval of its 2023 Transmission Cost Recovery (TCR) Rider, TCR rate factor, and tracker account report. For 2023, Xcel proposes recovery of the South Dakota jurisdictional portion of the revenue requirements related to 20 transmission projects located throughout its service territory. Xcel proposes to include 10 new projects for 2023 and proposes to move 20 projects to base rate recovery in Docket EL22-017. Xcel proposes to recover $683,115 associated with the 20 transmission projects for the 2023 calendar year. When combined with the 2022 over-collection balance of $274,327 and MISO RECB credit of $1,258,406, the resulting 2023 revenue requirement is negative $849,618. The total of the transmission investment costs, the MISO RECB credit, and the tracker balance results in an average bill impact of negative $0.29 per month for a typical residential electric customer using 750 kWh per month. This is a decrease of $2.72 per month from the current TCR Rider recovery. Xcel proposes to implement a rate of negative $0.000389 per kWh applied to all energy billed to each customer class beginning January 1 through December 31, 2023. This represents a decrease of $0.003634 from the existing rate of $0.003245 per kWh.
TODAY, shall the Commission approve the updated Transmission Cost Recovery rate factor and updated tariff sheet with an effective date of January 1, 2023?
4. EL22-026 In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of Its 2023 Infrastructure Rider Project Eligibility and Factor Update (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen; Staff Attorney: Kristen Edwards)
On September 30, 2022, the Commission received a Petition by Northern States Power Company dba Xcel Energy (Xcel) for approval of its 2023 Infrastructure Rider Project Eligibility and Factor Update. Xcel requests approval of the Infrastructure Rider Tracker Report and true-up for the 2022 revenue requirements, 2023 Infrastructure Rider revenue requirements of negative $2.3 million, an updated Infrastructure Rider Adjustment Factor of negative $0.001037 per kWh, proposed revision to the Infrastructure Rider tariff sheet, and proposed customer notice. Xcel proposes a January 1, 2023, effective date. Xcel notes that it recently filed an electric rate case in which it proposed to move all projects currently being recovered through the Infrastructure Rider that were forecasted to be in-service prior to December 31, 2022, from the Infrastructure Rider into base rates, resulting in the proposed negative revenue requirement and rate factor for 2023. Xcel states the average bill impact for a residential customer using 750 kWh per month will be an estimated credit of $0.78 per month, a decrease of $10.80 over the 2022 rate. Xcel’s proposed Infrastructure Rider rate would refund an estimated $2,262,749 in revenue requirements for 2023.
TODAY, shall the Commission approve the revised Infrastructure Rider Adjustment factor and revised tariff sheet with an effective date of January 1, 2023?
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. On November 21, 2022, staff filed a Letter Regarding Agreement and Requesting Suspension of Procedural Schedule because staff and OPINS had reached a settlement agreement. Staff and OPINS anticipate filing a Settlement Stipulation and Agreement and a Joint Motion to Approve the Settlement Stipulation and Agreement by December 5, 2022.
TODAY, shall the Commission grant the Joint Motion and approve the Settlement Stipulation and Agreement? OR how shall the Commission proceed?
Hydrocarbon and Carbon Dioxide Pipeline Dockets
1. 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 five states, including three 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. On November 21 and 22, 2022, the Commission held public input meetings in Canton, Flandreau, and Sioux Falls. Party status has been granted to the South Dakota Telecommunications Association and Brookings County. Party status, if granted, allows a directly interested 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 was November 28, 2022. Applications for party status received by the Commission can be viewed on the Commission’s website at https://puc.sd.gov/Dockets/HydrocarbonPipeline/2022/HP22-002partystatus.aspx.
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
Announcements
1. Commissioners and staff will meet with representatives of the South Dakota Electric Utility Companies on Wednesday, December 7, 2022, at 12:00 p.m. CST at the South Dakota Retailers Association Conference Room, 320 E. Capitol Avenue, Pierre, South Dakota. The agenda is to discuss company activities.
2. An evidentiary hearing for docket EL21-018 - In the Matter of the Application by North Bend Wind Project, LLC for a Permit to Construct and Operate the North Bend Wind Project in Hyde County and Hughes County, South Dakota will be held December 13-14, 2022, beginning at 9:00 a.m. CST, December 14, in Room 414 at the State Capitol Building, Pierre, South Dakota.
3. The next regular commission meeting will be Tuesday, December 20, 2022, at 9:30 a.m. CST in Room 413 at the State Capitol Building, Pierre, South Dakota.
4. Commissioners and staff will meet with representatives of NorthWestern Energy on Tuesday, December 20, 2022, at 1:30 p.m. CST in Room 413 at the State Capitol Building, Pierre, South Dakota. NorthWestern Energy will provide an update on company operational and financial activities.
5. The PUC office will be closed Friday, December 23 and Monday, December 26, 2022, in observance of the Christmas holiday.
6. The PUC office will be closed Monday, January 2, 2023, in observance of the New Year holiday.
7.   Commission meetings are scheduled for January 5 and 17, 2023.
/s/ Cindy Kemnitz .
Cindy Kemnitz
Finance Manager
puc@state.sd.us
November 29, 2022