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South Dakota Public Utilities Commission Meeting
July 19, 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 Thursday, July 18, 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 July 2, 2024 (Staff: Janeth Merriman)
Consumer Reports
1. Status Report on Consumer Utility Inquiries (Consumer Affairs: Deb Gregg)
Telecommunications
1. TC24-011 In the Matter of the Application of Ubiquity South Dakota, LLC for Certificates of Authority to Provide Local Exchange and Interexchange Telecommunications Services in the State of South Dakota (Staff Analyst: Patrick Steffensen; Staff Attorney: Logan Schaefbauer)
On April 26, 2024, the Commission received Ubiquity South Dakota, LLC’s (Ubiquity) Application for Certificates of Authority to provide local exchange and interexchange telecommunications services in South Dakota. Ubiquity proposes to offer wholesale services to internet service providers who will in turn provide service to end users. Ubiquity does not seek to provide retail voice telecommunications services nor switched access services. On May 3, 2024, the Commission received Ubiquity’s filing fee. On May 6, 2024, the Commission received South Dakota Telecommunications Association’s (SDTA) Petition to Intervene and Certificate of Service. On May 8, 2024, the Commission received Ubiquity’s Interexchange Carrier Application and Letter regarding Notice of Availability of Application. On June 3, 2024, SDTA and Ubiquity filed a Joint Stipulation. On June 3, 2024, Ubiquity filed responses to staff’s first set of data requests. On June 5, 2024, the Commission issued an Order Granting Intervention to SDTA. On June 28, 2024, Ubiquity filed Supplemental Information to staff’s first set of data requests.
TODAY, shall the Commission grant Ubiquity’s request for Certificates of Authority to provide local exchange and interexchange telecommunications services in South Dakota? AND shall the Commission grant Ubiquity’s requests for waivers of ARSD 20:10:32:10 and 20:10:32:15?
2. In the Matter of the Request for Certification Regarding the Use of Federal Universal Service Support in Dockets TC24-017, TC24-020, TC24-023 and TC24-024
TC24-017 In the Matter of the Request of Fort Randall Telephone Company for Certification Regarding Its Use of Federal Universal Service Support (Study Area: 391660) (Staff Analyst: Joseph Rezac; Staff Attorney: Logan Schaefbauer)
On June 14, 2024, the Commission received an application from Fort Randall Telephone Company (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.
TC24-020 In the Matter of the Request of City of Brookings Municipal Telephone for Certification Regarding Its Use of Federal Universal Service Support (Study Area: 391650) (Staff Analyst: Joseph Rezac; Staff Attorney: Logan Schaefbauer)
On June 18, 2024, the Commission received an application from Brookings Municipal Telephone (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.
TC24-023 In the Matter of the Request of Alliance Communications Cooperative Inc. for Certification Regarding Its Use of Federal Universal Service Support (Study Areas: 391405, 391642, 391657 and 399024) (Staff Analyst: Joseph Rezac; Commission Attorney: Kristen Edwards)
On June 20, 2024, the Commission received an application from Alliance Communications Cooperative Inc. (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.
TC24-024 In the Matter of the Request of West River Telecommunications Cooperative for Certification Regarding its Use of Federal Universal Service Support (Study Area: Mobridge – 391671) (Staff Analyst: Patrick Steffensen; Staff Attorney: Amanda Reiss)
On June 24, 2024, the Commission received an application from West River Telecommunications Cooperative, Mobridge, (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.
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 in each of the above dockets?
Electric
1. 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. On March 28, 2024, the Commission issued an Order Approving Tariff Revisions and Updated Customer information Brochure. The tariffs were approved with an effective date of June 1, 2024. On April 30, 2024, Otter Tail filed a letter requesting to suspend the launch date for the bill redesign and the tariff updates approved on March 28, 2024. Otter Tail stated that some items were identified for correction during the final stages of testing and the programming to accomplish these items will take longer than previously expected. On May 10, 2024, the Commission issued an Order Approving Request to Suspend Bill Redesign and Tariff Updates. On June 28, 2024, Otter Tail filed an amendment to update the sample bills and proposed a new effective date for the bill redesign of September 1, 2024. Otter Tail requests approval of the bill redesign, updated customer information brochure and associated tariff revisions by August 1, 2024, with an effective date of September 1, 2024.
TODAY, shall the Commission approve Otter Tail’s bill redesign, updated customer information brochure and tariff revisions, with an effective date of September 1, 2024?
2. EL24-019 In the Matter of the Request by Rushmore Crossing Associates, LLC for a Variance from the Individual Metering Requirement in ARSD 20:10:26:03(1) for the Rushmore Crossing Shopping Center in Rapid City (Staff Analyst: Eric Paulson; Staff Attorney: Logan Schaefbauer)
On May 30, 2024, the Commission received a request by Rushmore Crossing Associates, LLC (Rushmore Crossing) for a Variance from the Individual Metering Requirement in ARSD 20:10:26:03(1) for the Rushmore Crossing Shopping Center in Rapid City. Pursuant to ARSD 20:10:26:05, Rushmore Crossing requests a variance in order to master meter a multiple occupancy building which consists of two equal spaces of 4,000 square feet each. On June 3, 2024, Commission staff sent a Notice to Black Hills Energy pursuant to ARSD 20:10:26:06. On June 14, 2024, Rushmore Crossing filed responses to staff’s first set of data requests. On June 18, 2024, Commission staff sent data requests to Black Hills Energy and Rushmore Crossing. Pursuant to ARSD 20:10:26:06, the deadline to request a hearing was June 18, 2024. No hearing has been requested by any party. On July 3, 2024, the Commission issued an Order Granting Request to Defer this matter to the July 19, 2024, Commission meeting.
TODAY, shall the Commission grant the request by Rushmore Crossing for a variance from the individual metering requirement of ARSD 20:10:26:03(1)? OR how shall the Commission proceed?
3. EL24-023 In the Matter of the Application by Deuel Harvest Wind Energy South LLC for Energy Facility Permits of a Wind Energy Facility and a 345-kV Transmission Facility in Deuel County, South Dakota, for the South Deuel Wind Project (Staff Analysts: Jon Thurber, Darren Kearney; Staff Attorneys: Amanda Reiss, Logan Schaefbauer)
On June 28, 2024, the Commission received an Application for Energy Facility Permits (Application) from Deuel Harvest Wind Energy South LLC (Deuel Harvest or Applicant), an affiliate of Invenergy LLC. Deuel Harvest proposes to construct a wind energy facility and a 345 kilovolt (kV) transmission line (Gen-Tie Line) to be located in Deuel County, South Dakota, known as the South Deuel Wind Project (Project). The Project would be situated within an approximately 34,339-acre project area, in the townships of Blom, Brandt, Clear Lake, Norden, and Scandinavia. The total installed capacity of the Project would not exceed 260 megawatts (MW) of nameplate capacity and deliver up to 250 MW to the point of interconnection. The proposed Project includes up to 68 wind turbines, electrical collection and supervisory control and data acquisition systems, a 34.5 kV to 345 kV collector substation, an approximately 6-mile long 345 kV generator transmission tie line, improvements to enable the interconnection of the Project into the existing 345 kV Astoria interconnection switchyard, an operations and maintenance facility, up to two aircraft detection lighting system towers; access roads, and up to three meteorological towers. The Project will also include temporary construction areas: crane paths, public road improvements, a general construction laydown yard, staging areas, and a concrete batch plant, as needed. The Gen-Tie Line will transmit electricity approximately 6 miles from the collector substation to the point of interconnection at the existing Astoria 345 kV interconnection switchyard owned by Otter Tail Power Company. The Project, which has an estimated construction cost of $621 million, is expected to be in commercial operation in December 2026. 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 $510,500. 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 $510,500 and set an initial deposit? AND shall the Commission grant the Executive Director authority to enter into necessary consulting contracts? OR how shall the Commission proceed?
Natural Gas
1. NG24-006 In the Matter of the Filing by Montana-Dakota Utilities Co., a Subsidiary of MDU Resources Group Inc., for Approval of Its Authority to Discontinue North Deadwood Expansion Area Surcharge Rate 75 (Staff Analyst: Patrick Steffensen; Staff Attorney: Logan Schaefbauer)
On June 28, 2024, the Commission received a filing by Montana-Dakota Utilities Co. (MDU) for approval to discontinue the North Deadwood Expansion Area Surcharge Rate 75. MDU states in the filing the development where Rate 75 is applicable has encountered issues hindering its ability to move forward that will not be resolved in the foreseeable future. MDU will refund customers dollars collected through the Rate 75 tariff within 90 days of a Commission Order discontinuing Rate 75 and submit a compliance filing to the Commission summarizing the refund.
TODAY, shall the Commission grant Montana-Dakota Utilities Co.’s request to discontinue the North Deadwood Expansion Area Surcharge Rate 75 and approve the associated tariff sheets, with an effective date of August 1, 2024?
Grain Warehouse
1. GW24-001 In the Matter of PUC Staff’s Complaint Against Yield10 Bioscience, Inc. of Woburn, MA (Grain Warehouse Manager: Cody Chambliss; Staff Attorneys: Amanda Reiss, Logan Schaefbauer)
April 4, 2024, Commission staff submitted a Complaint against Yield10 Bioscience, Inc. of Woburn, MA (Yield10). In the Complaint, staff alleges that Yield10 failed to notify the Commission of its non-compliance with the financial standards required by South Dakota law in violation of SDCL 49-45-25, and that Yield10 has withheld requested materials from inspectors in violation of SDCL 49-45-26. Each alleged violation carries a maximum penalty of $1,000 for each day a company is in violation, up to $20,000. Therefore, Yield10 could be subject to a maximum fine of $40,000. By Commission Order, an answer deadline of April 24, 2024, was established in this matter. Yield10 failed to file an answer to the Complaint. On July 3, 2024, the Commission issued an Order for and Notice of Evidentiary Hearing, scheduling this matter to come before the Commission for an evidentiary hearing at its regularly scheduled meeting on July 19, 2024.
TODAY, shall the Commission find Yield10 to have violated provisions of SDCL 49-45-25 as alleged in Staff’s Complaint? AND shall the Commission find Yield10 to have violated provisions of SDCL 49-45-26 as alleged in Staff’s Complaint? If so, shall the Commission issue a civil penalty for the violations? 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. Commissioners will attend the National Association of Regulatory Utility Commissioners’ Summer Policy Summit July 14-17, 2024, at the Palm Beach County Convention Center, West Palm Beach, Florida.
2. Commissioners will attend the National Association of Pipeline Safety Representatives Central Region meeting on Tuesday, July 23, 2024, at the Holiday Inn City Centre in Sioux Falls, South Dakota.
3. The next regular commission meeting will be Tuesday, July 30, 2024, at 9:30 a.m. CDT in Room 413 at the State Capitol Building, Pierre, South Dakota.
4. Commissioners and staff will meet with representatives of Black Hills Energy on Tuesday, July 30, 2024, at 2:00 p.m. CDT in Room 413 at the State Capitol Building, Pierre, South Dakota. The agenda is a general business update from Black Hills Energy.
5. Commission meetings are scheduled for August 13 and 27, 2024.
/s/ Cindy Kemnitz .
Cindy Kemnitz
Finance Manager
puc@state.sd.us
July 12, 2024
