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South Dakota Public Utilities Commission Meeting
September 10, 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, September 9, 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 on August 27, 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 TC24-027, TC24-032, TC24-034, TC24-035 and TC24-036

           TC24-027      In the Matter of the Request of Midstate Communications, Inc. for Certification Regarding Its Use of Federal Universal Service Support (Study Areas: ILEC-391670 and CLEC-399011) (Staff Analyst: Patrick Steffensen; Commission Attorney: Kristen Edwards)

         On June 26, 2024, the Commission received an application from Midstate 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 July 15, 2024, the Company responded to staff’s data requests.

           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. On August 22, 2024, the Company responded to staff’s data request. This docket was deferred at the August 27, 2024, Commission meeting.

           TC24-034        In the Matter of the Request of Cheyenne River Sioux Tribe Telephone Authority for Certification Regarding Its Use of Federal Universal Service Support (Study Area: 391647) (Staff Analyst: Patrick Steffensen; Staff Attorney: Amanda Reiss)

           On June 28, 2024, the Commission received an application from Cheyenne River Sioux Tribe Telephone Authority (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 requests.

           TC24-035        In the Matter of the Request of Beresford Municipal Telephone Company for Certification Regarding Its Use of Federal Universal Service Support (Study Area: 391649) (Staff Analyst: Joseph Rezac; Commission Attorney: Kristen Edwards)

           On June 28, 2024, the Commission received an application from Beresford 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.

           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. On August 21, 2024, the Company responded to staff’s data request. This docket was deferred at the August 27, 2024, Commission meeting.

           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.      TC24-026        In the Matter of the Filing by Local Exchange Carriers Association for Approval of Revisions to Its Access Services Tariff No. 1 (Staff Analyst: Joseph Rezac; Staff Attorney: Logan Schaefbauer)

           On June 25, 2024, the Local Exchange Carriers Association (LECA) filed revisions to the LECA Tariff No.1. The filed revisions reflect that Issuing Carrier Venture Communication Cooperative will mirror its interstate access rates to the rates found in Section 17 of the John Staurulakis (JSI) FCC Tariff No.1. On August 9, 2024, the LECA responded to staff’s data request.

           TODAY, shall the Commission approve the requested tariff changes effective July 2, 2024?

Electric

1.      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. On August 29, 2024, East River and staff filed a Joint Motion for Approval of Settlement Stipulation, Settlement Stipulation, and East River’s responses to staff’s data requests. Within the Settlement Stipulation, East River and staff agree that East River has met its burden of proof pursuant to SDCL 49-41B-22 and is entitled to a permit to construct the Project as provided in SDCL 49-41B-24, subject to certain terms and conditions.

         TODAY, shall the Commission grant the Joint Motion for Approval of Settlement Stipulation? AND shall the Commission issue a permit to construct the Project? OR how shall the Commission proceed?

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 that consists of two equal spaces of 4,000 square feet each. On June 3, 2024, 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 25, 2024, Black Hills Energy filed responses to staff’s first set of data requests and Rushmore Crossing filed responses to staff’s second set of data requests. 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 June 25, 2024, Black Hills Energy and Rushmore Crossing filed responses to staff’s data requests. On July 3, 2024, the Commission issued an Order Granting Request to Defer this matter to the July 19, 2024, commission meeting. On July 12, 2024, Rushmore Crossing filed revised responses to staff’s second set of data requests. On July 23, 2024, the Commission issued an Order Extending Time for Final Decision Beyond 60 Days. On August 23, 2024, Rushmore Crossing filed revised responses to staff’s second set of data requests and an updated proposal.

         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. 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 21, 2024, the Commission received an Application for Party Status from the Lake Cochrane Improvement Association, Inc. On August 23, 2024, the Commission received an Application for Party Status from Jay Grabow. On August 27, 2024, the Commission received an Application for Party Status from Josh Bekaert. Pursuant to ARSD 20:10:22:40, the deadline for persons to file an application for party status was 5:00 p.m. CDT, August 27, 2024.

         TODAY, shall the Commission grant Party Status to the Lake Cochrane Improvement Association, Inc., Jay Grabow, and Josh Bekaert? OR how shall the Commission proceed?

4.      EL24-029        In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of Its 2025 Infrastructure Rider Project Eligibility and Factor Update (Staff Analyst: Eric Paulson; Staff Legal Analyst: Jennie Fuerst; Staff Attorney: Logan Schaefbauer)

           On August 30, 2024, the Commission received a Petition by Northern States Power Company dba Xcel Energy (Xcel) for approval of its 2025 Infrastructure Rider Project Eligibility and Factor Update. Xcel requests approval of the Infrastructure Rider Tracker Report and true-up for the 2024 revenue requirements, including Production Tax Credits (PTC) and the PTC tracker mechanism, 2025 Infrastructure Rider revenue requirements of $3,036,215, an updated Infrastructure Rider Factor of $0.001366 per kWh, an updated Infrastructure Rider tariff sheet, and proposed customer notice. Xcel proposes a January 1, 2025, effective date. Xcel proposes the rate of $0.001366 per kWh applied to all energy billed to each customer class during calendar year 2025. Xcel estimates a bill impact of $1.02 per month for a residential electric customer using 750 kWh per month, a decrease of $0.86 compared to the current rate. Xcel proposes to include five new projects as well as the gains on sale for the Sherco Land Sale.

           TODAY, shall the Commission assess a filing fee in the amount of up to $250,000 to account for actual expenses incurred in review of this filing commencing from the filing date? AND shall the Commission give the Executive Director authority to enter into necessary consulting contracts?

5.      EL24-030       In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of Its 2025 Transmission Cost Recovery Eligibility and Rate Adjustment (Staff Analyst: Eric Paulson; Staff Legal Analyst: Jennie Fuerst; Staff Attorney: Logan Schaefbauer)

           On August 30, 2024, the Commission received a petition from Northern States Power Company dba Xcel Energy (Xcel) for approval of its 2025 Transmission Cost Recovery (TCR) Rider, TCR rate factor, and tracker account report. For 2025, Xcel proposes recovery of the South Dakota jurisdictional portion of the revenue requirements related to 31 transmission projects located throughout its service territory. Xcel proposes to include six new projects for 2025. Xcel proposes to recover $1,843,549 associated with the 31 transmission projects for the 2024 calendar year. When combined with the 2024 under-collection credit balance of $43,045 and Midcontinent Independent System Operator Regional Expansion Criteria and Benefits (MISO RECB) credit of $809,380, the resulting 2025 revenue requirement is $991,151. The total of the transmission investment costs, the MISO RECB credit, and the tracker balance results in an average bill impact of $0.33 per month for a typical residential electric customer using 750 kWh per month. This is an increase of $0.18 per month from the current TCR Rider recovery. Xcel proposes to implement a rate of $0.000441 per kWh applied to all energy billed to each customer class beginning January 1 through December 31, 2025. This represents an increase of $0.000236 from the existing rate of $0.000205 per kWh.

           TODAY, shall the Commission assess a filing fee in the amount of up to $50,000 to account for actual expenses incurred in review of this filing commencing from the filing date?

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 Central Electric Cooperative Annual Meeting beginning at 5:30 p.m. on Tuesday, September 10, 2024, at the Corn Palace, Mitchell, South Dakota.

2.   The next regular commission meeting will be Tuesday, September 24, 2024, at 9:30 a.m. CDT in Room 413 at the State Capitol Building, Pierre, South Dakota.

3.   Commission meetings are scheduled for October 8 and 22, 2024.

 

  /s/ Cindy Kemnitz                 .
Cindy Kemnitz
Finance Manager
puc@state.sd.us
September 4, 2024