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South Dakota Public Utilities Commission Meeting
April 23, 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, April 22, 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 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 April 11, 2024 (Deputy Executive Director: Leah Mohr)
Consumer Reports
1. Status Report on Consumer Utility Inquiries (Consumer Affairs: Deb Gregg)
Administration
1. AA24-001 Establishment of the Gross Receipts Tax Levy for Fiscal Year 2025 (Finance Manager: Cindy Kemnitz, Staff Attorney: Amanda Reiss)
SDCL Chapter 49-1A establishes the South Dakota Public Utilities Commission Gross Receipts Tax Fund (Fund). This Fund is financed by assessing a tax on the annual intrastate gross receipts received by a utility. The Fund is used by the Commission to defray regulatory expenses related to the regulation of telecommunications, electricity, and natural gas. On April 1 of each year, all utilities and telecommunications companies doing business in South Dakota shall file with the Commission, on forms provided by the Commission, the amount of its gross receipts derived from customers within South Dakota during the preceding calendar year pursuant to SDCL 49-1A-4. The report shall be sworn to and verified by an officer of the company. The Commission shall, by order, establish the rate and assess the tax authorized in SDCL 49-1A-3 which, together with any funds remaining from the current fiscal year and the $250 minimum gross receipt tax, will fund the Commission’s budget for the next fiscal year and provide a contingency reserve in an amount not to exceed the prior year’s budget. In accordance with SDCL 49-1A-5, the tax is due and payable on July 15 of each year. On April 12, 2024, staff filed a letter requesting a docket be opened in this matter.
TODAY, shall the Commission establish the rate and assess the Gross Receipts Tax as authorized in SDCL 49-1A-3?
Telecommunications
1. TC24-002 In the Matter of the Petition of Assurance Wireless USA, L.P. for Designation as an Eligible Telecommunications Carrier for the Purpose of Offering Lifeline Service to Qualifying Customers (Staff Analyst: Eric Paulson; Staff Attorney: Logan Schaefbauer)
On January 12, 2024, the Commission received Assurance Wireless USA, L.P.’s (Assurance) Petition for Designation as an Eligible Telecommunications Carrier for the Purpose of Offering Lifeline Service to Qualifying Customers. Assurance requests the service area to correspond to its wireless coverage service area in South Dakota, including as it may change going forward, exclusive of Tribal lands. On February 7, 2024, the South Dakota Telecommunications Association’s (SDTA) Petition to Intervene was granted. On February 22, 2024, the Commission approved the procedural schedule. On April 5, 2024, SDTA filed comments. On April 15, 2024, the parties filed a Joint Motion to Defer Consideration.
TODAY, shall the Commission grant the Joint Motion to Defer Consideration? OR how shall the Commission proceed?
Electric
1. EL24-007 In the Matter of the Filing by Montana-Dakota Utilities Co., a Subsidiary of MDU Resources Group Inc., for Approval of the Annual Update to Its Transmission Cost Recovery Rider Rate (Staff Analyst: Patrick Steffensen; Staff Attorney: Logan Schaefbauer)
On March 1, 2024, Montana-Dakota Utilities Co. (MDU) filed for approval of its annual update to its Transmission Cost Recovery (TCR) Rider. MDU states the proposed tariff change is necessary to reflect the projected 2024 charges assessed to MDU for transmission-related services provided by the Midcontinent Independent System Operator and Southwest Power Pool, along with the projected revenues and/or credits received by MDU for transmission-related services, including transmission revenues from a large customer taking service under MDU’s Rate 45 tariff. MDU proposes a TCR Rider rate of negative $0.00216 per kWh to be effective May 1, 2024, which is a decrease of $0.00586 per kWh from current interim rates and a decrease of $0.01848 from the rate authorized in the last TCR filing.
TODAY, shall the Commission approve the revised Transmission Cost Recovery Rider rate and revised tariff sheet with an effective date of May 1, 2024?
2. EL24-008 In the Matter of the Filing by Montana-Dakota Utilities Co., a Subsidiary of MDU Resources Group Inc., for Approval of the Annual Update to Its Infrastructure Rider Rate (Staff Analyst: Patrick Steffensen; Staff Attorney: Logan Schaefbauer)
On March 1, 2024, the Commission received a petition from Montana-Dakota Utilities Co. (MDU) for approval of its annual update to its Infrastructure Rider (IR) Rate, pursuant to the terms of the MDU’s IR Rate 56 tariff. MDU proposes an IR rate of $0.00394 per kWh for the rate period covered by this filing, which is an increase of $0.00121 per kWh from current interim rates and a decrease of $0.00129 from the rate authorized in the last IR filing. The IR Rate 56 tariff requires MDU to update the IR annually with updates effective May 1 of each year.
TODAY, shall the Commission approve the revised Infrastructure Rider rate and revised tariff sheet with an effective date of May 1, 2024?
3. EL24-011 In the Matter of the Application by East River Electric Power Cooperative, Inc. for a Permit to Construct a WAPA North Bend to Pratt 230kV Transmission Line (Staff Analysts: Darren Kearney, Jon Thurber; Staff Attorneys: Amanda Reiss, Logan Schaefbauer)
On March 22, 2024, the Commission received a facility permit application (Application) from East River Electric Power Cooperative, Inc. (East River). East River proposes to construct approximately 500 feet of 230-kilovolt (kV) transmission line and associated facilities (Project) located in Sections 15 and 16 of T110N, R73W, Hyde County, South Dakota. The Project will connect the North Bend Substation owned by the Western Area Power Administration (WAPA) with the Pratt Substation owned by East River. The Project will be located on land owned by WAPA or East River, with the exception of the crossing of the public road right-of-way for County Road 649. On April 9, 2024, East River filed an amended Application. East River estimates the total construction cost of the proposed Project to be $6,516,000. SDCL 49-41B-12 provides for a filing fee to be assessed to cover the Commission’s actual cost of investigating, reviewing, processing, and serving notice of the Application. The maximum fee chargeable, as calculated pursuant to statute, is $16,290. However, according to said statute, the minimum total fee chargeable may not be less than $8,000.
TODAY, shall the Commission assess a filing fee not to exceed $16,290 with an initial deposit of $8,000? OR shall the Commission assess a filing fee not to exceed $16,290 to be deposited with the Commission, with any unused portion above $8,000 subject to refund?
4. EL24-014 In the Matter of the Application of Black Hills Power, Inc. dba Black Hills Energy for Approval to Amend Its Energy Cost Adjustment Tariff to Include Costs and Benefits Related to WEIS Participation (Staff Analyst: Patrick Steffensen; Staff Attorney: Logan Schaefbauer)
On April 8, 2024, the Commission received an application from Black Hills Power, Inc. dba Black Hills Energy (BHE) requesting approval to amend its existing Energy Cost Adjustment (ECA) tariff to include 1) revenue from market energy sales related to the participation in Southwest Power Pool (SPP) Western Energy Imbalance Service (WEIS) market and 2) WEIS administrative costs. BHE currently includes all WEIS market energy purchase costs in FERC Account 555, which is currently authorized in its tariff. BHE requests an effective date of May 1, 2024, in order to include an approximate $1.58 million net benefit in its next ECA filing on May 10, 2024.
TODAY, shall the Commission approve Black Hills Power, Inc. dba Black Hills Energy’s tariff revisions with an effective date of May 1, 2024, on less than 30 days’ notice?
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 next regular commission meeting will be Wednesday, May 8, 2024, at 1:30 p.m. CDT in Room 413 at the State Capitol Building, Pierre, South Dakota.
2. A public input meeting for docket EL24-011 - In the Matter of the Application by East River Electric Power Cooperative, Inc. for a Permit to Construct a WAPA North Bend to Pratt 230kV Transmission Line will be held Wednesday, May 8, 2024, beginning at 5:30 p.m. CDT in Room 413 at the State Capitol Building, Pierre, South Dakota.
3. Commission meetings are scheduled for May 21 and June 4, 2024.
/s/ Cindy Kemnitz .
Cindy Kemnitz
Finance Manager
puc@state.sd.us
April 16, 2024
