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South Dakota Public Utilities Commission Meeting
November 21, 2023, at 9:30 A.M. CST
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. CST on Monday, November 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 November 7, 2023 (Deputy Executive Director: Leah Mohr)
Consumer Reports
1. Status Report on Consumer Utility Inquiries (Consumer Affairs: Deb Gregg)
Electric
1. 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 approve the updated transmission cost recovery rate factor and updated tariff sheet with an effective date of January 1, 2024?
2. EL23-030 In the Matter of the Filing by Montana-Dakota Utilities Co. for Approval of Tariff Revisions to Its Rates for Rate 95 and Rate 96 (Staff Analyst: Brittany Mehlhaff; Staff Attorneys: Amanda Reiss, Logan Schaefbauer)
On October 12, 2023, Montana-Dakota Utilities Co. (MDU) filed for approval of revisions to its Rate 95 (occasional power purchase non-time differentiated) and Rate 96 (short-term power purchase) tariff sheets. This filing updates the energy and capacity payments based on current data. MDU states it currently has one customer taking service under Rate 95 and the annual change in revenue due to this filing will be minimal. MDU requests a January 1, 2024, effective date. On November 6, 2023, MDU responded to staff’s data request.
TODAY, shall the Commission approve Montana-Dakota Utilities Co.’s tariff revisions with an effective date of January 1, 2024?
3. EL23-033 In the Matter of the Petition of Otter Tail Power Company for Approval of the Transmission Cost Recovery Rider Rate (Staff Analyst: Brittany Mehlhaff; Staff Attorneys: Logan Schaefbauer and Amanda Reiss)
On November 1, 2023, the Commission received Otter Tail Power Company’s (Otter Tail) petition for approval of its annual update to its Transmission Cost Recovery Rider (TCR) rate. Otter Tail’s petition updates its TCR rates to collect revenue requirements over the 12-month recovery period of March 2024 through February 2025. This update includes actual investment costs, expenses, and revenues associated with existing projects and approved recovery items through September 2023, updated forecast information for the remainder of the current recovery period which ends February 29, 2024, and forecasted information for the proposed recovery period ending February 28, 2025. Otter Tail requests the inclusion of one new project and updates to two existing projects in this annual update. Otter Tail also updates the D2 allocation factor to include all load changes in compliance with the docket EL21-031 order. Otter Tail states that residential customers using 1,000 kWh per month will see a bill decrease of approximately $1.56. Otter Tail proposes a rate implementation date of March 1, 2024.
TODAY, shall the Commission assess a filing fee in the amount of up to $50,000.00 to account for actual expenses incurred in review of this filing commencing from the filing date?
Gas & Electric
1. GE23-002 In the Matter of the Application of NorthWestern Energy Public Service Corporation for Approval of an Order Authorizing It to Issue Up to $350 Million of Securities (Staff Analyst: Patrick Steffensen; Staff Attorneys: Amanda Reiss, Logan Schaefbauer)
On October 30, 2023, NorthWestern Energy Public Service Corporation (NorthWestern) filed with the Commission an application requesting approval pursuant to SDCL 49-34A-29, to issue $350 million in securities, effective January 1, 2024. The Petition states NorthWestern seeks authority to issue, as NorthWestern determines necessary, over a period of approximately two years, starting on January 1, 2024, secured debt securities, not to exceed $150 million and unsecured debt securities, not to exceed $200 million by methods approved by the Federal Energy Regulatory Commission. NorthWestern states it intends to issue securities for the purpose of supporting its state-regulated capital expenditures and acquisitions of state-regulated assets, the refunding and repayment of its outstanding obligations, and for other general corporate purposes. The request stems from a corporate restructuring approved in Docket GE22-002. On November 13, 2023, NorthWestern filed a letter requesting a waiver from the 30-day review requirement as provided in SDCL 49-34A-31.
TODAY, shall the Commission approve NorthWestern Energy Public Service Corporation’s request for a waiver from the 30-day review requirement as provided in SDCL 49-34A-31? OR how shall the Commission proceed?
Natural Gas
1. NG23-023 In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of Northern Natural Gas Interim Rate Refund Method (Staff Analyst: Patrick Steffensen; Staff Attorneys: Amanda Reiss and Logan Schaefbauer)
On October 19, 2023, the Commission received a filing from NorthWestern Corporation dba NorthWestern Energy (NorthWestern). This filing proposes to return customer funds that NorthWestern has received from the Northern Natural Gas (NNG) interim rate refund. The total refund amount due to the NNG refund is $1,215,928.54 and when partially offset by September billing and after interest is credited, the net refund is $965,844.39. NorthWestern will credit the refund to customers’ purchased gas adjustment (PGA) for all PGA customers. Rate 84 customers’ demand is charged outside of the PGA and will therefore be refunded based on their demand. NorthWestern seeks approval with an effective date of December 2, 2023.
TODAY, shall the Commission approve the proposed refund method effective December 2, 2023?
2. NG23-024 In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of its Refund Plan regarding Its Recovery of Manufactured Gas Plant Site Remediation Costs (Staff Analyst: Joseph Rezac; Staff Attorneys: Amanda Reiss, Logan Schaefbauer)
On October 19, 2023, the Commission received a filing from NorthWestern Corporation dba NorthWestern Energy (NorthWestern) for approval of its refund plan regarding its recovery of the manufactured gas plant (MGP) site remediation costs. The purpose of this filing is to update the refund mechanism established in docket NG16-010 where NorthWestern credited customers an over-collection related to MGP remediation allowed in docket NG11-003. The credit rate was subsequently adjusted annually, most recently in docket NG22-009. With two months remaining in the current refund plan, the over-recovered balance is $295,468. NorthWestern has refunded approximately $1.8 million in the first 10 months of the current plan, however, actual remediation costs are lower than the amount recovered through the tracker. NorthWestern proposes to continue the refund plan for an additional 12 months at higher credit rates than are currently in effect. NorthWestern proposes a December 1, 2023, effective date for the new credit rates.
TODAY, shall the Commission approve NorthWestern Energy’s refund plan regarding its recovery of manufactured gas plant site remediation costs with an effective date of December 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. The PUC office will be closed November 23-24, 2023, in observance of the Thanksgiving holiday.
2. The next regular commission meeting will be Wednesday, December 6, 2023, at 1:30 p.m. CST in Room 413 at the State Capitol Building, Pierre, South Dakota.
3. Commissioners and staff will attend the South Dakota Telecommunications Association/Public Utilities Commission Forum on December 12-13, 2023, at the Clubhouse Hotel and Suites, Sioux Falls, South Dakota.
4. Commission meetings are scheduled for December 19, 2023, and January 9, 2024.
/s/ Cindy Kemnitz .
Cindy Kemnitz
Finance Manager
puc@state.sd.us
November 14, 2023
