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South Dakota Public Utilities Commission Meeting
September 22, 2023, at 10:00 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 Thursday, September 21, 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 Meetings Held on August 29 and September 6, 2023 (Deputy Executive Director: Leah Mohr)
Consumer Reports
1. Status Report on Consumer Utility Inquiries (Consumer Affairs: Deb Gregg)
Telecommunications
1. TC23-038 In the Matter of the Request of Clarity Telecom, LLC dba Bluepeak Fiber for Certification Regarding Its Use of Federal Universal Service Support (Study Area: ILEC–391652 and CLEC–399006) (Staff Analyst: Joseph Rezac; Commission Attorney: Adam de Hueck)
On June 30, 2023, the Commission received an application from Clarity Telecom, LLC dba Bluepeak Fiber (Company) requesting the Commission to issue a certification to the FCC and USAC indicating it is in compliance with 47 U.S.C. Section 254(e) and should receive all federal universal service support determined for distribution to the Company. On August 10, 2023, the Company responded to staff’s data request. This docket was deferred at the August 29 and September 6, 2023, Commission meetings.
TODAY, shall the Commission provide a certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the use of Federal Universal Service Support for Clarity Telecom, LLC?
2. TC23-043 In the Matter of the Filing of TEMPO TELECOM, LLC’s Application for Designation as an Eligible Telecommunications Carrier in the State of South Dakota for the Limited Purpose of Providing Lifeline Service to Qualifying Customers (Staff Analyst: Eric Paulson; Staff Attorney: Amanda Reiss)
On August 23, 2023, TEMPO TELECOM, LLC (TEMPO) filed a Petition for Designation as an Eligible Telecommunications Carrier (ETC) in the State of South Dakota. TEMPO is seeking ETC designation for the limited purpose of providing Lifeline service to qualifying customers. On August 30, 2023, the South Dakota Telecommunications Association filed a Petition to Intervene.
TODAY, shall the Commission grant South Dakota Telecommunications Association’s Petition to Intervene? OR how shall the Commission proceed?
Electric
1. EL23-022 In the Matter of Otter Tail Power Company’s Application for Approval of Administrative Tariff Changes in Rate Schedules 14.02 and 14.03 (Staff Analyst: Patrick Steffensen; Staff Attorney: Amanda Reiss)
On August 23, 2023, the Commission received a filing from Otter Tail Power Company (Otter Tail) for approval of tariff revisions to its rate schedules 14.02 and 14.03. Otter Tail proposes to close the rates that use Real Time Pricing and System Marginal Energy Pricing to new customers. Otter Tail states this change is necessary to allow time to create new methodology for Real Time Pricing and System Marginal Energy Pricing. On September 5, 2023, Otter Tail filed responses to staff data requests and requested an effective date of October 1, 2023.
TODAY, shall the Commission approve the proposed tariff revisions with an effective date of October 1, 2023?
2. EL23-025 In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of Its 2024 Infrastructure Rider Project Eligibility and Factor Update (Staff Analyst: Brittany Mehlhaff; Staff Attorney: Amanda Reiss)
On September 1, 2023, the Commission received a Petition by Northern States Power Company dba Xcel Energy (Xcel) for approval of its 2024 Infrastructure Rider Project Eligibility and Factor Update. Xcel requests approval of the Infrastructure Rider Tracker Report and true-up for the 2023 revenue requirements, 2024 Infrastructure Rider revenue requirements of negative $58,928, an updated Infrastructure Rider Adjustment Factor of negative $0.000026 per kWh, proposed revision to the Infrastructure Rider tariff sheet, and proposed customer notice. Xcel proposes a January 1, 2024, effective date. Xcel states the average bill impact for a residential customer using 750 kWh per month will be an estimated credit of $0.02 per month, an increase of $1.36 compared to the 2023 credit. Xcel proposes to include new projects beginning in 2023 as well as the Sherco Solar I project beginning in 2024.
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? AND shall the Commission give the Executive Director authority to enter into necessary consulting contracts?
3. EL23-026 In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of Its 2024 Transmission Cost Recovery Eligibility and Rate Adjustment (Staff Analyst: Patrick Steffensen; Staff Attorney: Amanda Reiss)
On September 1, 2023, the Commission received a petition from Northern States Power Company dba Xcel Energy (Xcel) for approval of its 2024 Transmission Cost Recovery (TCR) Rider, TCR rate factor, and tracker account report. For 2024, Xcel proposes recovery of the South Dakota jurisdictional portion of the revenue requirements related to 24 transmission projects located throughout its service territory. Xcel proposes to include four new projects for 2024. Xcel proposes to recover $1,149,733 associated with the 24 transmission projects for the 2024 calendar year. When combined with the 2023 under-collection balance of $441,363 and Midcontinent Independent System Operator Regional Expansion Criteria and Benefits (MISO RECB) credit of $1,134,747, the resulting 2024 revenue requirement is $456,349. The total of the transmission investment costs, the MISO RECB credit, and the tracker balance results in an average bill impact of $0.15 per month for a typical residential electric customer using 750 kWh per month. This is an increase of $0.44 per month from the current TCR Rider recovery. Xcel proposes to implement a rate of $0.000205 per kWh applied to all energy billed to each customer class beginning January 1 through December 31, 2024. This represents an increase of $0.000594 from the existing rate of negative $0.000389 per kWh.
TODAY, shall the Commission assess a filing fee in the amount of up to $50,000 to account for actual expenses incurred in review of this filing commencing from the filing date?
Natural Gas
1. NG23-015 In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of a Contract with Deviations with Valley Queen Cheese Factory, Inc. (Staff Analyst: Patrick Steffensen; Staff Attorney: Amanda Reiss)
On August 18, 2023, NorthWestern Corporation dba NorthWestern Energy (NorthWestern) filed for approval of a contract with deviations with Valley Queen Cheese Factory, Inc. (Customer). The Customer currently receives firm transportation service pursuant to an Amended and Restated Transportation Service Agreement and is expanding its operation and requested additional capacity. The Customer elected to receive that additional capacity via interruptible transportation service, and NorthWestern will upgrade its distribution facilities to mitigate interruption to Customer. NorthWestern states that based on the cost of the project, it requires security for the capital investment cost and a surcharge rate in order to protect its legacy customers. The agreement is 15 years with interruptible transportation service capacity of 131,250 MMBtu for years 1-3 and 175,000 MMBtu for years 4-15, and the Customer must transport its 415,094 MMBtu base use prior to receiving credit towards the interruptible transportation service. An annual review will be conducted to determine if the volume requirement is met. NorthWestern requests an effective date for the tariff revisions of October 1, 2023. On September 14, 2023, NorthWestern filed responses to staff data requests.
TODAY, shall the Commission approve NorthWestern Energy’s contract with deviations with Valley Queen Cheese Factory, Inc., and the associated tariff revisions with an effective date of October 1, 2023?
2. NG23-017 In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of Its Gas Transportation Tariff Revisions Regarding Fuel Retention Percentage (Staff Analyst: Eric Paulson; Staff Attorney: Amanda Reiss)
On August 29, 2023, the Commission received a filing from NorthWestern Corporation dba NorthWestern Energy (NorthWestern). This filing proposes to update Sheet No. 6.2 in Section No. 5 of NorthWestern’s filed natural gas tariff. NorthWestern’s tariff provides that the Fuel Retention Percentage is to be updated annually and be effective October 1 each year. NorthWestern also proposes to update the fuel rate for customers with an average daily therm usage greater than 30,000. NorthWestern states that customers who fit this high usage criterion are primarily direct connect customers whose gas system is not subject to the normal losses in a distribution system. NorthWestern seeks an effective date of October 1, 2023.
TODAY, shall the Commission approve the proposed tariff revisions effective October 1, 2023?
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 Central Electric Cooperative Annual Meeting at 5:30 p.m. CDT on Tuesday, September 19, 2023, at the Corn Palace, Mitchell, South Dakota.
2. The PUC office will be closed Monday, October 9, 2023, in observance of the Native American Day holiday.
3. The next regular commission meeting will be Tuesday, October 10, 2023, at 1:30 p.m. CDT in Room 413 at the State Capitol Building, Pierre, South Dakota.
4. Commission meetings are scheduled for October 24 and November 7, 2023.
/s/ Cindy Kemnitz .
Cindy Kemnitz
Finance Manager
puc@state.sd.us
September 15, 2023
