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October 24, 2023, at 1:00 P.M. CDT
Room 413 Room 414, 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, October 24, 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 October 10, 2023 (Deputy Executive Director: Leah Mohr)

Consumer Reports

1.      Status Report on Consumer Utility Inquiries (Consumer Affairs: Deb Gregg)

Grain Warehouse

1.      GW23-001      In the Matter of PUC Staff’s Complaint Against Banghart Properties, LLC, Gettysburg, South Dakota (Grain Warehouse Program Manager: Cody Chambliss; Staff Attorney: Amanda Reiss)

         On January 30, 2023, staff filed a Complaint against Banghart Properties, LLC, Gettysburg, South Dakota (Banghart), alleging Banghart operated as a grain buyer without a license in both license years, 2022 and 2023, among other allegations. On February 17, 2023, Banghart filed an Answer to the Complaint. On April 4, 2023, Banghart filed a Motion for Expedited Order Granting Class A Grain Buyer License. On April 5, 2023, staff filed a letter of denial of the Grain Buyer/Grain Warehouse Application. On April 17, 2023, the Commission issued an Order for and Notice of Evidentiary Hearing on Less than 10 Days’ Notice. On April 27, 2023, the Commission held an evidentiary hearing on this matter. On May 9, 2023, the Commission found good cause for staff to deny Banghart’s Class A grain buyer license. On May 22, 2023, staff filed a letter to Banghart and a letter to the Commission stating on May 11, 2023, staff received an application from Banghart for a Class B grain buyer license, and that based on the Commission’s May 9, 2023, oral decision, any further action on this matter should be at the Commission level. On May 23, 2023, the Commission issued an Order Granting Motion to Reopen the Record and Allow Additional Testimony; Order Denying Class A License; Order Setting Post-Hearing Procedural Schedule. On May 26, 2023, Banghart submitted a written request for a hearing for approval of a Class B Grain Buyer License. On July 7, 2023, the Commission issued an Order Resolving Staff’s Complaint; Order Granting Class B License; Notice of Entry and requiring Banghart submit quarterly financials and submit improved forms and contracts that are clear and precise for Commission review and acceptance. Banghart will file the required documents no later than October 18, 2023.

         TODAY, shall the Commission accept Banghart’s improved forms and contracts? OR how shall the Commission proceed?

Hydrocarbon and Carbon Dioxide Pipeline

1.      HP14-002        In the Matter of the Application of Dakota Access, LLC for an Energy Facility Permit to Construct the Dakota Access Pipeline (Staff Analysts: Darren Kearney, Jon Thurber; Staff Attorney: Kristen Edwards)

         On December 15, 2014, the South Dakota Public Utilities Commission (Commission) received an energy facility permit application (Application) from Dakota Access, LLC (Dakota Access) pursuant to SDCL 49-41B-4 to construct the South Dakota portion of the Dakota Access Pipeline (Pipeline). The Pipeline begins in North Dakota and terminates in Patoka, Illinois, traversing 13 counties in South Dakota. The route enters South Dakota in Campbell County at the North Dakota/South Dakota border and extends in a southeasterly direction, exiting the state at the South Dakota/Iowa border in Lincoln County. The length of the Pipeline through South Dakota is approximately 272 miles. On December 14, 2015, the Commission issued its Final Decision and Order (Permit) granting the permit, subject to conditions. Pursuant to the Conditions of the Permit, Dakota Access obtained a road bond and appointed a public liaison officer. Construction on the Pipeline began on May 16, 2016, and the Pipeline became operational on June 1, 2017. On August 7, 2023, Dakota Access filed a Motion to Release Construction Bond and Terminate Appointment of Public Liaison Officer.

         TODAY, shall the Commission release Dakota Access’ road bond? AND shall the Commission grant removal of the Public Liaison Officer?

Natural Gas

1.      NG23-016       In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of a Contract with Deviations with Global Biogas LLC (Staff Analyst: Brittany Mehlhaff; Staff Attorney: Amanda Reiss)

         On August 28, 2023, NorthWestern Corporation dba NorthWestern Energy (NorthWestern) filed for approval of a contract with deviations with Global Biogas LLC (Customer). The Customer desires to have natural gas service extended to its location to activate the RNG production process. These distribution lines will branch off the pipeline to be installed pursuant to the previously approved RNG Transportation Service Agreement. NorthWestern states that based on the cost of the project, it requires security for the capital investment cost and annual take-or-pay volumes to support the project recovery over a four-year period. The project costs and tariff delivery charges will be recovered through tariff rate 87. An annual review will be conducted to determine if the volume requirement is met. NorthWestern requests approval with an effective date for the tariff revisions of November 1, 2023.

         TODAY, shall the Commission approve NorthWestern Energy’s contract with deviations with Global Biogas LLC and the associated tariff revisions with an effective date of November 1, 2023?

2.      NG23-018       In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of a Contract with Deviations with Hammink Biogas LLC (Staff Analyst: Eric Paulson; Staff Attorney: Amanda Reiss)

         On September 1, 2023, NorthWestern Corporation dba NorthWestern Energy (NorthWestern) filed for approval of a contract with deviations with Hammink Biogas LLC (Customer). The Customer desires to have natural gas service extended to its location to activate the RNG production process. NorthWestern states that based on the cost of the project, it requires security for the capital investment cost, annual take-or-pay volumes, and a volumetric surcharge in order to protect its legacy customers. The contract includes recovery of the project costs over a 15-year period. The project costs and tariff delivery charges will be recovered through tariff rate 87 plus a volumetric charge. An annual review will be conducted to determine if the volume requirement is met. The developer of the Hammink Biogas LLC and Northern Sky Biogas LLC projects requested that costs for the two projects be split equally between the facilities. NorthWestern requests approval with an effective date for the tariff revisions of November 1, 2023.

         TODAY, shall the Commission approve NorthWestern Energy’s contract with deviations with Hammink Biogas LLC and the associated tariff revisions with an effective date of November 1, 2023?

3.      NG23-019       In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of a Contract with Deviations with Northern Sky Biogas LLC (Staff Analyst: Eric Paulson; Staff Attorneys: Amanda Reiss, Logan Schaefbauer)

         On September 18, 2023, NorthWestern Corporation dba NorthWestern Energy (NorthWestern) filed for approval of a contract with deviations with Northern Sky Biogas LLC (Customer). The Customer desires to have natural gas service extended to its location to activate the RNG production process. NorthWestern states that based on the cost of the project, it requires security for the capital investment cost, annual take-or-pay volumes, and a volumetric surcharge in order to protect its legacy customers. The contract includes recovery of the project costs over a 15-year period. The project costs and tariff delivery charges will be recovered through tariff rate 87 plus a volumetric charge. An annual review will be conducted to determine if the volume requirement is met. The developer of the Hammink Biogas LLC and Northern Sky Biogas LLC projects requested that costs for the two projects be split equally between the facilities. NorthWestern requests approval with an effective date for the tariff revisions of November 1, 2023.

         TODAY, shall the Commission approve NorthWestern Energy’s contract with deviations with Northern Sky Biogas LLC and the associated tariff revisions with an effective date of November 1, 2023?

4.      NG23-020       In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of a Contract with Deviations with Brightmark Full Circle RNG LLC (Staff Analyst: Eric Paulson; Staff Attorneys: Amanda Reiss, Logan Schaefbauer)

         On September 20, 2023, NorthWestern Corporation dba NorthWestern Energy (NorthWestern) filed for approval of a contract with deviations with Brightmark Full Circle RNG LLC (Customer). The Customer desires to have natural gas service extended to its location to activate the RNG production process. NorthWestern states that based on the cost of the project, it requires security for the capital investment cost, annual take-or-pay volumes, and a volumetric surcharge in order to protect its legacy customers. The contract includes recovery of the project costs over a 15-year period. The project costs and tariff delivery charges will be recovered through tariff rate 87 plus a volumetric charge. An annual review will be conducted to determine if the volume requirement is met. NorthWestern requests approval with an effective date for the tariff revisions of November 1, 2023.

         TODAY, shall the Commission approve NorthWestern Energy’s contract with deviations with Brightmark Full Circle RNG LLC and the associated tariff revisions with an effective date of November 1, 2023?

5.      NG23-021       In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of a Contract with Deviations with Valero Renewable Fuels Company, LLC (Staff Analyst: Eric Paulson; Staff Attorneys: Amanda Reiss, Logan Schaefbauer)

         On September 21, 2023, NorthWestern Corporation dba NorthWestern Energy (NorthWestern) filed for approval of a contract with deviations with Valero Renewable Fuels Company, LLC (Customer). The Customer currently has a contract with deviations for natural gas transportation service that expires on October 31, 2023. NorthWestern desires to provide this Customer with continuing natural gas service after the current five-year agreement expires. This new rate will allow NorthWestern to maintain this Customer and will benefit NorthWestern and its natural gas customers through recovery of administrative, general and common costs from this Customer. NorthWestern requests approval with an effective date for the tariff revisions of November 1, 2023.

         TODAY, shall the Commission approve NorthWestern Energy’s contract with deviations with Valero Renewable Fuels Company, LLC and the associated tariff revisions with an effective date of November 1, 2023?

6.      NG23-022       In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of a Contract with Deviations with South Dakota Soybean Processors, LLC (Staff Analyst: Eric Paulson; Staff Attorneys: Amanda Reiss, Logan Schaefbauer)

         On September 22, 2023, NorthWestern Corporation dba NorthWestern Energy (NorthWestern) filed for approval of a contract with deviations with South Dakota Soybean Processors, LLC (Customer). The Customer currently has a contract with deviations for natural gas transportation service that expires on October 31, 2023. NorthWestern desires to provide this Customer with continuing natural gas service after the current 10-year agreement expires. This new rate will allow NorthWestern to maintain this Customer and will benefit NorthWestern and its natural gas customers through recovery of administrative, general and common costs from this Customer. NorthWestern designed the rate for the renewal term of the Agreement to compete with the economics of a potential bypass, given the Customer’s plant is located within one mile of a Northern Natural Gas (NNG) transportation pipeline. NorthWestern requests approval with an effective date for the tariff revisions of November 1, 2023.

         TODAY, shall the Commission approve NorthWestern Energy’s contract with deviations with South Dakota Soybean Processors, LLC and the associated tariff revisions with an effective date of November 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 and staff will attend meetings with members and staff of the Federal Communications Commission in Washington, D.C. on October 23-24, 2023. Any communications will be made public pursuant to 47 CFR § 1.1206.

2.   The next regular commission meeting will be Tuesday, November 7, 2023, 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 10, 2023, in observance of the Veterans Day holiday.

4.   Commissioners and staff will attend the 2023 National Association of Regulatory Commissioners’ Annual Meeting and Education Conference, November 12-15, 2023, at the La Quinta Resort and Club, La Quinta, California.

5.   Commission meetings are scheduled for November 21 and December 6, 2023.

 

  /s/ Cindy Kemnitz                 .
Cindy Kemnitz
Finance Manager
puc@state.sd.us
October 17, 2023