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South Dakota Public Utilities Commission Meeting
June 20, 2023, 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 10:00 a.m. CDT on Tuesday, June 20, 2023, 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 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 June 6, 2023 (Deputy Executive Director: Leah Mohr)
Consumer Reports
1. Status Report on Consumer Utility Inquiries (Consumer Affairs: Deb Gregg)
Telecommunications
1. TC23-008 In the Matter of the Filing of Qwest Corporation dba CenturyLink QC for Approval of Revisions to Its Access Service Tariff (Staff Analyst: Patrick Steffensen; Staff Attorney: Amanda Reiss)
On May 19, 2023, the Commission received a filing by Qwest Corporation dba CenturyLink QC for approval of revisions to its Access Service Tariff. This filing proposes the third step in implementing the 8YY Access Service reductions mandated in the Federal Communications Commission’s October 9, 2020, Report and Order in WC Docket No. 18-156, FCC Release No. 20-143. CenturyLink QC requests an effective date of July 1, 2023.
TODAY, shall the Commission approve the requested tariff changes?
2. TC23-009 In the Matter of the Approval of the Wireless Mid-Span Meet POI Amendment to the Interconnection Agreement between Qwest Corporation dba CenturyLink QC and James Valley Wireless, LLC (Staff Analyst: Patrick Steffensen; Staff Attorney: Amanda Reiss)
On May 19, 2023, the Commission received a filing pursuant to 47 U.S.C. § 252 for approval of a Wireless Mid-Span Meet POI Amendment to the Interconnection Agreement between Qwest Corporation dba CenturyLink QC and James Valley Wireless, LLC.
TODAY, shall the Commission approve the amendment to the interconnection agreement?
Electric
1. EL23-015 In the Matter of Otter Tail Power Company’s Petition for Approval of Rate Schedule, Section 13.09, Phase-In Rider (Staff Analyst: Brittany Mehlhaff; Staff Attorney: Kristen Edwards)
On June 1, 2023, the Commission received a petition by Otter Tail Power Company (Otter Tail) for approval of its annual update to its Phase-in Rate Plan Rider. Otter Tail makes this filing pursuant to SDCL 49-34A-73 through 49-34A-78. In this filing, Otter Tail proposes to adjust the Phase-in Rate Plan Rider Rate to reflect the applicable rider revenue requirements for the next recovery period (September 2023 – August 2024), to recover actual and forecasted costs for the Astoria Station Natural Gas Plant project, Merricourt Wind Project, the Ashtabula III Wind Farm Purchase, forecasted net benefits associated with additional load in the Lake Norden area, and net savings associated with Otter Tail’s retirement of its Hoot Lake Plant. The filing also includes updates to Otter Tail’s Advanced Grid Infrastructure per meter charge rider. No new projects are included in this filing. Otter Tail states a typical residential electric customer using an average of 1,000 kWh per month will see a decrease of $0.74 per month. A Large General Service customer using 486 kW and 222,350 kWh per month will see a decrease of $33.15. Otter Tail proposes an effective date of September 1, 2023.
TODAY, shall the Commission assess a filing fee in the amount of up to $250,000 to account for actual expenses incurred in review of this filing commencing from the filing date?
Hydrocarbon and Carbon Dioxide Pipeline
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 numerous individuals and entities. On June 9, 2023, the Commission issued an Order for and Notice of Evidentiary Hearing, noticing the evidentiary hearing in this proceeding to take place on July 25 through August 3, 2023, with the exception of July 28. The evidentiary hearing may carry over into additional days as necessary. On June 13, 2023, staff filed a Motion for Time Certain for Witness Testimony, requesting the Commission establish a specific date during the evidentiary hearing for certain staff witnesses to testify due to the need to make travel arrangements and due to a scheduling conflict.
TODAY, shall the Commission grant staff’s Motion for Time Certain for Witness Testimony?
Natural Gas
1. NG23-008 In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of a Contract with Deviations with Schneck Farms Inc. (Staff Analyst: Eric Paulson; Staff Attorney: Amanda Reiss)
On March 2, 2023, NorthWestern Corporation dba NorthWestern Energy (NorthWestern) filed for approval of a contract with deviations with Schneck Farms, Inc. (Customer). The Customer desires to have natural gas service extended to its location to use for grain drying requirements. NorthWestern states that based on the cost of the project, it requires security for the capital investment cost and a monthly 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 86 plus a fixed monthly charge. An annual review will be conducted to determine if the volume requirement is met.
TODAY, shall the Commission approve NorthWestern Energy’s contract with deviations with Shneck Farms Inc. and the associated tariff revisions with an effective date of June 21, 2023?
2. NG23-011 In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of a Contract with Deviations with Clark 2 RNG LLC (Staff Analyst: Eric Paulson; Staff Attorney: Amanda Reiss)
On May 17, 2023, NorthWestern Corporation dba NorthWestern Energy (NorthWestern) filed for approval of a contract with deviations with Clark 2 RNG LLC (Customer). Customer intends to deliver renewable natural gas (RNG) produced from their facility to NorthWestern for the purpose of transport. Customer desires to have NorthWestern install a natural gas pipeline that is approximately 6.1 miles in length. This pipeline will be used to transport renewable natural gas from the dairy farm where it is produced to an interconnection point near Bryant, South Dakota. NorthWestern states that based on the cost of the project, it requires a 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 Customer 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.
TODAY, shall the Commission approve NorthWestern Energy’s contract with deviations with Clark 2 RNG LLC and the associated tariff revisions with an effective date of June 21, 2023?
Pipeline Safety
1. PS23-001 In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of a Partial Waiver from South Dakota Administrative Rule 20:10:37:18(1) (Pipeline Safety Program Manager: Mary Zanter; Staff Attorney: Kristen Edwards)
On June 6, 2023, NorthWestern Corporation dba NorthWestern Energy (NorthWestern) filed for a partial waiver of ARSD 20:10:37:18(1) for three renewable natural gas projects involving gas from dairy farms. Specifically, NorthWestern seeks a waiver of the requirement to provide notice to the Commission’s Pipeline Safety Program no later than 60 days prior to commencement of construction of a new transmission line. Staff submitted a letter to the docket supporting the request in this unique circumstance.
TODAY, shall the Commission grant NorthWestern’s request for a partial waiver of ARSD 20:10:37:18(1)?
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 Monday, June 19, 2023, in observance of Juneteenth.
2. An evidentiary hearing for docket GW23-001 - In the Matter of PUC Staff’s Complaint Against Banghart Properties, LLC, Gettysburg, South Dakota, will be held Wednesday, June 21, 2023, beginning at 9:00 a.m. CDT, in Room 413 at the State Capitol Building, Pierre, South Dakota.
3. The PUC office will be closed Tuesday, July 4, 2023, in observance of Independence Day.
4. The next regular commission meeting will be Tuesday, July 11, 2023, at 9:00 a.m. CDT in Room 413 at the State Capitol Building, Pierre, South Dakota.
5. Commission meetings are scheduled for July 28 and August 15, 2023.
6. An evidentiary hearing for docket 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 will be held beginning at 9:00 a.m. CST, July 25, 2023, at the Casey Tibbs South Dakota Rodeo Center, 210 Verendrye Drive, Fort Pierre, South Dakota.
/s/ Cindy Kemnitz .
Cindy Kemnitz
Finance Manager
puc@state.sd.us
June 13, 2023
