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South Dakota Public Utilities Commission Meeting
March 26, 2024, at 9:30 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 Monday, March 25, 2024, 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 fo 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 March 12, 2024 (Deputy Executive Director: Leah Mohr)
Consumer Reports
1. Status Report on Consumer Utility Inquiries (Consumer Affairs: Deb Gregg)
Telecommunications
1. TC23-046 In the Matter of the Petition of North American Local, LLC for Approval of Reclassification as a Facilities-Based Eligible Telecommunications Carrier (Staff Analyst: Joseph Rezac; Staff Attorneys: Amanda Reiss, Logan Schaefbauer)
On September 29, 2023, North American Local, LLC (NAL) filed with the Commission a Petition for Reclassification as a Facilities-Based Eligible Telecommunications Carrier (Petition). NAL seeks this reclassification for the purpose of offering lifeline services on a wireless basis in South Dakota. The South Dakota Telecommunications Association (SDTA) has been granted intervention. On January 22, 2024, SDTA filed a Motion to Dismiss and a Motion to Compel Discovery. In the Motion to Dismiss, SDTA requests the Commission dismiss the Petition or in the alternative that the Commission issue an order clarifying that the Petition will be handled as a new request for eligible telecommunications carrier (ETC) designation. In the Motion to Compel Discovery, SDTA seeks to compel to provide documents in response to SDTA’s discovery requests. The Commission issued a Notice of Hearing for these Motions, requiring responsive briefs to be filed by NAL and staff no later than February 26, 2024, requiring SDTA’s reply to be filed by March 7, 2024, and providing notice that a hearing would be held on March 12, 2024. On March 8, 2024, NAL filed a response to the pending Motions. At the March 12 Commission Meeting, this matter was deferred in order to allow SDTA adequate time to reply to NAL’s response. In deferring the hearing on the Motions, the Commission ordered SDTA to file its response on or before March 19, 2024, and that Motions be heard on March 26, 2024.
TODAY, shall the Commission grant SDTA’s Motion to Dismiss? OR shall the Commission issue an order clarifying that this docket shall be treated procedurally as a new request for ETC designation? AND shall the Commission grant SDTA’s Motion to Compel? OR how shall the Commission proceed?
2. TC23-050 In the Matter of the Application of EarthGrid PBC CORPORATION for Certificates of Authority to Provide Local Exchange and Interexchange Telecommunications Services in the State of South Dakota (Staff Analyst: Eric Paulson; Staff Attorneys: Amanda Reiss, Logan Schaefbauer)
On December 1, 2023, the Commission received a filing from EarthGrid PBC CORPORATION (EarthGrid) for a Certificate of Authority to provide local exchange and interexchange telecommunications services in the State of South Dakota. In its application, EarthGrid seeks a Certificate to provide local exchange and interexchange telecommunications services throughout South Dakota excluding the areas served by a rural telephone company. EarthGrid will provide resold and facilities-based non-switched point-to-point local and interexchange telecommunications services to wireless service providers (WSPs), other telecommunications carriers and communications providers, municipalities, tribal communities, and commercial customers. This docket was deferred at the February 20, 2024, Commission meeting. March 14, 2024, EarthGrid filed an amended first data request response to 1-14.
TODAY, shall the Commission grant EarthGrid’s request for a Certificate for Authority to provide local exchange and interexchange telecommunication services in South Dakota? AND shall the Commission grant EarthGrid’s request for a waiver of ARSD 20:10:32:10?
Electric
1. EL09-012 In the Matter of the Petition of MidAmerican Energy Company for Approval of a Fuel Clause Rider Tariff Change (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen, Eric Paulson, Joseph Rezac)
On July 1, 2009, MidAmerican Energy Company (MidAmerican) filed an application requesting approval to allow the costs and results of hedging the cost of fuels used in electric generation for startup or operational stabilization of coal-fired generation and for diesel fuel associated with coal transportation contracts with railroads to be passed through the Electric Energy Cost Adjustment. On August 4, 2009, the Commission issued an Order approving the requested tariff revisions with conditions, including that MidAmerican submit an annual report detailing hedging activities of the prior calendar year. On March 5, 2024, MidAmerican filed a motion to discontinue the annual report requirement. MidAmerican states in its motion that it has not engaged in hedging of oil since 2013, and if it hedges oil in the future, such action would be reported as part of the quarterly Energy Cost Adjustment.
TODAY, shall the Commission Approve MidAmerican Energy Company’s request to discontinue its annual hedging report?
2. EL17-050 In the Matter of the Application of Crowned Ridge Wind, LLC for a Facility Permit to Construct a 230 kV Transmission Line and Associated Facilities from Codington County to the Big Stone South Substation (Staff Analysts: Jon Thurber, Darren Kearney; Staff Attorneys: Kristen Edwards, Amanda Reiss)
On December 5, 2017, the Commission received a facility permit application from Crowned Ridge Wind, LLC (Crowned Ridge). Crowned Ridge proposed to construct a new reactive power compensation substation and an approximately 34-mile 230-kilovolt generation tie line that connects two 300-megawatt wind projects (Crowned Ridge Wind and Crowned Ridge Wind II) to the Big Stone South substation owned by Otter Tail Power Company. Together the new reactive power compensation substation and 34-mile generation tie line are the project. The planned Crowned Ridge Wind facilities were permitted separately and are not included as a part of the project. The generation tie line is located in Codington and Grant counties, South Dakota, while the new reactive compensation substation will be located in Grant County. On November 21, 2018, the Commission issued an order approving the settlement stipulation and granting a permit to construct the transmission facility. Crowned Ridge filed a License and/or Permit Continuous Bond, Bond No. 9307918, on June 18, 2019, in accordance with Condition 11(h) of the Permit. The Project began commercial operations on December 30, 2019. On November 29, 2023, Crowned Ridge filed a Motion to Release Bond that requests an order from the Commission releasing Bond No. 9307918.
TODAY, shall the Commission grant the Motion to Release Bond?
3. EL23-021 In the Matter of Approval of Otter Tail Power Company’s Petition for Approval of a Bill Redesign and Modifications to General Rules and Regulations, Rate Schedule Section 1.05 (Staff Analyst: Brittany Mehlhaff; Staff Attorney: Amanda Reiss)
On August 18, 2023, the Commission received a filing from Otter Tail Power Company (Otter Tail) for approval of a bill redesign and modifications to its rate schedule section 1.05. Otter Tail requests approval of the following by December 1, 2023: proposed standard and commercial electric service statements, customer disconnection notice, tariff changes necessary to implement the proposed changes, and a manual bill exception for manually billed customers. Otter Tail also requests an extension of time to submit the compliance filing in this matter to March 1, 2024. Otter Tail anticipates implementation of the new billing statement design and the associated tariff revisions on May 1, 2024. On October 3 and 6, 2023, Otter Tail filed amended sample forms and tariff pages. On October 31, 2023, Otter Tail filed a letter requesting the Commission approve the bill redesign by December 1, 2023, but delay approval of the tariff revisions. Otter Tail’s letter specifically requested Commission approval of the following by December 1, 2023: proposed standard and commercial electric service statements, proposed customer disconnection notice, and a manual bill exception for manually billed customers. On February 29, 2024, Otter Tail submitted a supplemental filing requesting approval of tariff revisions and an updated customer information brochure.
TODAY, shall the Commission approve Otter Tail’s tariff revisions with an effective date of May 1, 2024? AND shall the Commission approve Otter Tail’s updated customer information brochure?
4. EL24-002 In the Matter of the Filing by Otter Tail Power Company for Approval of Tariff Revisions to Its Rates for Small Power Production and Cogeneration (Staff Analyst: Patrick Steffensen; Staff Attorney: Amanda Reiss)
On January 31, 2024, the Commission received a filing from Otter Tail Power Company (Otter Tail) for approval of tariff revisions to its Small Power Producer Riders, Sections 12.01, 12.02 and 12.03. Otter Tail proposes to update the energy payments, customer charge, wind renewable energy credit, and solar renewable energy credit. These rates are for small qualifying facilities within the Otter Tail service area. Otter Tail requests an effective date of April 1, 2024.
TODAY, shall the Commission approve the proposed revisions to Otter Tail’s rates for Small Power Production and Cogeneration for Qualifying Facilities and revised tariff sheets with an effective date of April 1, 2024?
5. EL24-005 In the Matter of MidAmerican Energy Company’s Application for Approval of Its 2023 Reconciliation and 2024 Transmission Cost Recovery Factors (Staff Analyst: Joseph Rezac; Staff Attorney: Logan Schaefbauer)
On February 15, 2024, the Commission received MidAmerican Energy Company’s (MidAmerican) filing for approval of tariff revisions regarding its Transmission Cost Recovery (TCR) 2023 Reconciliation and 2024 New Factor Calculation. MidAmerican’s TCR mechanism was established in the company’s most recent rate case, EL14-072. With this filing, MidAmerican is establishing new TCR rates based on true ups to the actual over/under recovery from 2023, 2024 forecasted Midcontinent Independent System Operator transmission expense and the forecast over/under recovery for January through March of 2024. MidAmerican requests the new TCR factors have an effective date of April 1, 2024.
TODAY, shall the Commission approve the revised Transmission Cost Recovery rate factors and revised tariff sheet with an effective date of April 1, 2024?
Hydrocarbon and Carbon Dioxide Pipeline Dockets
1. HP07-001 In the Matter of the Application by TransCanada Keystone Pipeline LP for a Permit Under the South Dakota Energy Conversion and Transmission Facilities Act to Construct the Keystone Pipeline Project. (Staff Analysts: Darren Kearney and Jon Thurber; Staff Attorney: Kristen Edwards)
On April 25, 2008, the Commission issued its Final Decision and Order; Notice of Entry (Permit) in this docket in which it issued to TransCanada Keystone Pipeline, LP, (Keystone) a permit to construct the Keystone Pipeline Project subject to 57 Conditions. On February 6, 2024, Keystone filed a Motion for Approval Under § 49-41-B-29 (Motion). In its Motion, Keystone states that Keystone’s parent company, TC Energy plans to spin off its Liquid Pipelines business, and the new Liquid Pipelines business will be called South Bow Corporation (South Bow). If the spin off transaction is completed, the permit holder and operator will remain Keystone. However, Keystone’s parent company will change from TC Energy to South Bow. Keystone, therefore, requests an order approving of the change in its corporate ownership. Keystone requests the order be conditioned upon the ownership transaction being completed, which requires a vote of the shareholders.
TODAY, shall the Commission approve the Motion for Approval Under SDCL § 49-41B-29? OR how shall the Commission proceed?
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 Friday, March 29 and Monday, April 1, 2024, in observance of Easter.
2. PUC Commissioners will attend the Clay-Union Electric Annual Meeting, Tuesday, April 2, 2024, 313121 SD-19, Vermillion, South Dakota.
3. The next regular commission meeting will be Thursday, April 11, 2024, at 9:30 a.m. CDT in Room 413 at the State Capitol Building, Pierre, South Dakota.
4. Commissioners and staff will hold a regional transmission discussion on Thursday, April 11, 2024, at 2:30 p.m. CDT in the Commission’s Conference Room in the State Capitol Building, Pierre, South Dakota.
5. Commissioners will attend the Center for Public Utilities’ Current Issues Forum, April 14-17, 2024, at the Eldorado Hotel, Santa Fe, New Mexico.
6. Commission meetings are scheduled for April 23 and May 8, 2024.
/s/ Cindy Kemnitz .
Cindy Kemnitz
Finance Manager
puc@state.sd.us
March 20, 2024
