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South Dakota Public Utilities Commission Meeting
August 27, 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, August 26, 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 August 13, 2024 (Staff: Janeth Merriman)

Consumer Reports

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

Telecommunications

1.      In the Matter of the Request for Certification Regarding the Use of Federal Universal Service Support in Dockets TC24-022, TC24-028, TC24-029, TC24-031, TC24-032, TC24-036 and TC24-037

           TC24-022      In the Matter of the Request of TrioTel Communications, Inc. for Certification Regarding Its Use of Federal Universal Service Support (Study Areas: McCook 391669 and Tri-County Telecom 391682) (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)

         On June 20, 2024, the Commission received an application from TrioTel Communications, 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. On August 14, 2024, the Company responded to staff’s data

           TC24-028        In the Matter of the Request of City of Faith Municipal Telephone Company for Certification Regarding Its Use of Federal Universal Service Support (Study Area: 391653) (Staff Analyst: Patrick Steffensen; Commission Attorney: Kristen Edwards)

           On June 27, 2024, the Commission received an application from Faith Municipal 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. On July 26, 2024, the Company responded to staff’s data request.

           TC24-029        In the Matter of the Request of RC Technologies for Certification Regarding Its Use of Federal Universal Service Support (Study Area: 391674) (Staff Analyst: Patrick Steffensen; Commission Attorney: Kristen Edwards)

           On June 27, 2024, the Commission received an application from RC Technologies (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. On July 26, 2024, the Company responded to staff’s data request.

           TC24-031        In the Matter of the Request of Valley Telecommunications Cooperative Association, Inc. for Certification Regarding Its Use of Federal Universal Service Support (Study Area: 391685) (Staff Analyst: Brittany Mehlhaff; Staff Attorney: Amanda Reiss)

           On June 27, 2024, the Commission received an application from Valley Telecommunications Cooperative Association, 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.

           TC24-032        In the Matter of the Request of Qwest Corporation dba CenturyLink QC for Certification Regarding Its Use of Federal Universal Service Support (Study Area: 395145) (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)

           On June 28, 2024, the Commission received an application from Qwest Corporation dba CenturyLink QC (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.

           TC24-036        In the Matter of the Request of Clarity Telecom, LLC dba Bluepeak Fiber for Certification Regarding Its Use of Federal Universal Service Support (Study Area: ILEC–391652 and CLEC–399006) (Staff Analyst: Joseph Rezac; Commission Attorney: Kristen Edwards)

           On June 28, 2024, the Commission received an application from Clarity Telecom, LLC dba Bluepeak Fiber (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.

           TC24-037        In the Matter of the Request of Midcontinent Communications for Certification Regarding Its Use of Federal Universal Service Support (Study Area: 399005) (Staff Analyst: Brittany Mehlhaff; Commission Attorney: Kristen Edwards)

           On July 1, 2024, the Commission received an application from Midcontinent Communications (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?

2.      TC24-039        In the Matter of the Application of Barr Tell USA Inc. for a Certificate of Authority to Provide Local Exchange and Interexchange Long Distance Services in the State of South Dakota (Staff Analyst: Brittany Mehlhaff; Staff Attorney: Amanda Reiss)

           On July 17, 2024, the Commission received an application from Barr Tell USA Inc. (Barr Tell) for Certificates of Authority to Provide Local Exchange and Interexchange Telecommunications Services in the State of South Dakota. In its application, Barr Tell seeks certificates to provide local access telecommunications service as well as long distance or interexchange service to business/enterprise customers. On July 9, 2024, the Commission received Barr Tell’s filing fee. On July 24, 2024, the South Dakota Telecommunications Association (SDTA) filed a Petition to Intervene. On July 29, 2024, SDTA and Barr Tell filed a Joint Stipulation. On August 8 and 15, 2024, Barr Tell responded to staff’s data requests. On August 14, 2024, the Commission issued an Order Granting Intervention to SDTA.

           TODAY, shall the Commission grant Barr Tell’s request for a Certificate of Authority to provide local exchange and interexchange telecommunication services in South Dakota? AND shall the Commission grant Barr Tell’s request for a waiver of ARSD 20:10:24:02(9) and ARSD 20:10:32:03(12)?

Electric

1.      EL24-020        In the Matter of Otter Tail Power Company’s Petition for Approval of Rate Schedule, Section 13.09, Phase-In Rider (Staff Analyst: Patrick Steffensen; Staff Attorney: Logan Schaefbauer)

            On June 3, 2024, the Commission received a petition by Otter Tail Power Company (Otter Tail) for approval of its annual update to its Phase-in Rate Plan Rider. Otter Tail makes this filing pursuant to SDCL 49-34A-73 through 49-34A-78. In this filing, Otter Tail proposes to adjust the Phase-in Rate Plan Rider Rate to reflect the applicable rider revenue requirements for the next recovery period (September 2024 – August 2025), to recover actual and forecasted costs for the Astoria Station Natural Gas Plant project, Merricourt Wind Project, the Ashtabula III Wind Farm Purchase, forecasted net benefits associated with additional load in the Lake Norden area, and net savings associated with Otter Tail’s retirement of its Hoot Lake Plant. The filing also includes updates to Otter Tail’s Advanced Grid Infrastructure per meter charge rider. Otter Tail proposes four new projects in the filing with the Langdon, Ashtabula I, Luverne, and Ashtabula III wind repowering projects. Otter Tail states a typical residential electric customer using an average of 1,000 kWh per month will see an increase of $7.98 per month. A large general service customer using 486 kW and 222,350 kWh per month will see an increase of $1,018.25 per month. Otter Tail proposes an effective date of September 1, 2024. On July 31, 2024, Otter Tail submitted a Supplemental Filing that included project updates to more recent actual costs and updated forecasts and made various corrections, including the capacity factor for the Merricourt Wind Project. With these changes, Otter Tail states a typical residential electric customer using an average of 1,000 kWh per month will see an increase of $4.14 per month from current rates. A large general service customer using 486 kW and 222,350 kWh per month will see an increase of $518.76 per month from current rates.

         TODAY, shall the Commission approve Otter Tail Power Company’s Phase-In Rider Rates and revised tariff sheets with an effective date of September 1, 2024?

2.      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. On July 9, 2024, the Commission issued a Notice of Application; Order for and Notice of Public Input Meeting; Notice of Opportunity to Apply for Party Status. On August 16, 2024, the Commission received an Application for Party Status from Arla Hamann Poindexter as part owner of Hamann Family Farms LLC. Pursuant to ARSD 20:10:22:40, the deadline for persons to file an application for party status is 5:00 p.m. CT, August 27, 2024.

         TODAY, shall the Commission grant Party Status to those who may have filed? Or how shall the Commission proceed?

3.      EL24-026        In the Matter of the Filing by Black Hills Power, Inc. dba Black Hills Energy regarding its Notification of Intent to Apply for a Permit for an Energy Conversion Facility for the Proposed Lange 2 Power Plant Project (Staff Analysts: Darren Kearney, Jon Thurber; Legal Analyst: Jennie Fuerst; Staff Attorneys: Logan Schaefbauer, Amanda Reiss)

         On August 2, 2024, Black Hills Power, Inc. dba Black Hills Energy (Black Hills), filed a Notice of Intent to submit an application for a permit for an energy conversion facility. Black Hills proposes to construct, own and operate an energy conversion facility consisting of three reciprocating internal combustion engines fueled by natural gas only and three dual fuel reciprocating internal combustion engines, an engine hall building, and other associated facilities. Interconnection will be into the existing adjacent Lange substation, which is owned and operated by Black Hills Power. The expected generation is approximately 100 megawatts of power during periods of high energy demand. The energy conversion facility, known as Lange 2 Power Plant, is proposed to be located in the NW ¼ less Lot H1 of Section 22, Township 2N, Range 7E in Pennington County, South Dakota, within the city of Rapid City. SDCL 49-41B-5 requires an applicant for an energy conversion facility permit to file a Notice of Intent six months prior to filing an application for a permit. Therefore, the permit application will be a separate, future docket.

         TODAY, shall the Commission designate the affected area? AND shall the Commission designate a local review committee as described in SDCL 49-41B-6? OR how shall the Commission proceed?

4.      EL24-027        In the Matter of the Petition by Leola Data Center LLC to have Montana-Dakota Utilities Co., a Subsidiary of MDU Resources Group Inc., Assigned as its Electric Provider in the Service Area of FEM Electric Association Inc. (Staff Analyst: Patrick Steffensen; Legal Analyst: Jennie Fuerst; Staff Attorneys: Logan Schaefbauer, Amanda Reiss)

           On August 5, 2024, Leola Data Center, LLC (Leola) filed a Petition for Electric Service to have Montana-Dakota Utilities Co., Assigned as its Electric Provider in the Service Area of FEM Electric Association Inc. (Petition). The Petition asks the Commission for an order pursuant to SDCL 49-34A-56 that allows Leola to take electric service from Montana-Dakota Utilities Co, a Subsidiary of MDU Resources Group Inc. (Montana-Dakota), for its proposed Data Center to be located adjacent to, Montana-Dakota’s Leola substation at 11641 358th Avenue, Leola, South Dakota. The Location is currently within the assigned service area of FEM Electric Association Inc. (FEM). Under SDCL 49-34A-56, new customers at new locations that develop after March 21, 1975, and who require electric service with a contracted minimum demand of two thousand kilowatts or more are not obligated to take electric service from the electric utility having the assigned service area where the customer is located if the Commission so determines after consideration of certain factors set forth in statute. On August 19, 2024, Montana-Dakota filed a Petition to Intervene.

           TODAY, shall the Commission grant intervention to any party who may have filed?

Natural Gas

1.      NG24-007       In the Matter of the Filing by NorthWestern Energy Public Service Corporation dba NorthWestern Energy for Approval of an Amended and Restated Contract with Deviations with L.G. Everist, Incorporated (Staff Analyst: Patrick Steffensen; Staff Attorney: Logan Schaefbauer)

           On July 11, 2024, NorthWestern Energy Public Service Corporation dba NorthWestern Energy (NorthWestern) filed for approval of an amended and restated contract with deviations with L.G. Everist, Incorporated (Customer). The parties propose to amend and restate the existing contract with deviations of L.G. Everist, Incorporated’s subsidiary, Ace Ready Mix Inc., that was approved in docket NG22-010 in order to add another subsidiary, Myrl and Roy’s Paving, Inc., to the contract. The Customer in the agreement has been updated to the parent corporation, L.G. Everist, Incorporated, and the annual combined obligation of 53,500 MMBtu for both subsidiaries replaces the 3,500 MMBtu in the original agreement. Customer desires to have NorthWestern install additional natural gas pipeline that is approximately 0.18 miles in length to serve Myrl and Roy’s Paving, Inc. NorthWestern states the contract with deviations still requires a fixed surcharge rate, annual take-or-pay volumes, and a security for the capital investment cost to protect its legacy customers. The contract includes recovery of the pipeline project costs over a 15-year period. An annual review will be conducted to determine if volumes have met the required take or pay amount. NorthWestern requests an effective date of September 1, 2024, for the associated tariff revisions.

           TODAY, shall the Commission approve NorthWestern Energy’s amended and restated contract with deviations with L.G. Everist, Incorporated and the associated tariff revisions with an effective date of September 1, 2024?

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.   A public input meeting for docket 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 will be held Thursday, August 22, 2024, beginning at 5:30 p.m. CDT in the Clear Lake Community Center, 218 Third Ave. S., Clear Lake, South Dakota.

2.   Commissioners and staff will meet with representatives of Otter Tail Power Company on Tuesday, August 27, 2024, at 1:30 p.m. CDT in Room 413 at the State Capitol Building, Pierre, South Dakota. The agenda is a general business update from the company.

3.   Commissioners and staff will meet with consumers in the PUC booth in the Expo Building at the South Dakota State Fair August 28 – September 2, 2024, in Huron, South Dakota.

4.   The PUC office will be closed Monday, September 2, 2024, in observance of Labor Day.

5.   The next regular commission meeting will be Tuesday, September 10, 2024, at 9:30 a.m. CDT in Room 413 at the State Capitol Building, Pierre, South Dakota.

6.   Commission meetings are scheduled for September 24 and October 8, 2024.

 

  /s/ Cindy Kemnitz                 .
Cindy Kemnitz
Finance Manager
puc@state.sd.us
August 20, 2024