South Dakota Public Utilities Commission Meeting
December 17, 2024, at 9:30 A.M. CST
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. CST on Monday, December 16, 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 December 3, 2024 (Staff: Janeth Merriman)
Consumer Reports
1. Status Report on Consumer Utility Inquiries (Consumer Affairs: Deb Gregg)
Telecommunications
1. TC24-003 In the Matter of the Filing of IM Telecom, LLC dba Infiniti Mobile’s Petition for Designation as an Eligible Telecommunications Carrier in the State of South Dakota for the Limited Purpose of Providing Lifeline Service to Qualifying Customers (Staff Analyst: Brittany Mehlhaff; Staff Attorney: Logan Schaefbauer)
On January 17, 2024, the Commission received IM Telecom, LLC dba Infiniti Mobile’s (Infiniti) Petition for an Eligible Telecommunications Carrier (ETC) Designation. On January 22, 2024, the South Dakota Telecommunications Association (SDTA) filed a Petition to Intervene. On January 31, 2024, Infiniti and SDTA filed a Stipulation in which Infiniti agrees to limit its ETC designation to only South Dakota CenturyLink wire centers and to not extend into any rural service areas served by an SDTA member company. On February 7, 2024, the Commission issued an Order Granting Intervention to SDTA. On April 9, June 13 and October 21, 2024, Infiniti filed responses to staff’s data requests. On November 8, 2024, the Commission issued an Order Granting Request to Defer to the December 3, 2024, Commission meeting. At the December 3, 2024, Commission meeting, the Commission considered the Petition for ETC Designation and voted 2-1 to deny the Petition on the basis of public interest. On December 5, 2024, Commission Counsel filed a letter noting the need to address reconsideration in order to establish a record upon which to base the final decision.
TODAY, shall the Commission reconsider its December 3, 2024, decision? OR how shall the Commission proceed?
Electric
1. EL24-015 In the Matter of the Application by Otter Tail Power Company and Western Minnesota Municipal Power Agency for a Facility Permit for a 345-kV Transmission Facility and Associated Facilities in Grant County, South Dakota (Staff Analysts: Darren Kearney, Jon Thurber; Staff Attorneys: Amanda Reiss, Logan Schaefbauer)
On April 15, 2024, the Commission received a facility permit application (Application) from Otter Tail Power Company (Otter Tail) and Western Minnesota Municipal Power Agency (Western Minnesota), through its agent, Missouri River Energy Services (MRES) (collectively, Applicants). Applicants propose to construct a 345-kilovolt (kV) transmission line and associated facilities including substation upgrades (Project) within South Dakota. The Project, known as the Big Stone South to Alexandria Transmission Line Project, originates at Otter Tail’s existing Big Stone South Substation, located approximately 2 miles west of Big Stone City, South Dakota, in Big Stone Township and connects to a substation near Alexandria, Minnesota. The South Dakota portion of the Project consists of approximately 3.5 miles of transmission line beginning in Section 24, Township 121N, Range 47W, Grant County, South Dakota, extending east and south to the Minnesota border. Applicants anticipate construction to commence in 2027 or 2028 and be completed in either 2030 or 2031. On June 17, 2024, the Commission granted Party status to Daniel and Tamra Jurgens (Jurgens). On December 5, 2024, the Applicants and Jurgens filed a Joint Motion for Approval of Settlement Stipulation. The referenced Settlement Stipulation resolves all the issues between Jurgens and the Applicants in this proceeding.
TODAY, shall the Commission grant the Joint Motion for Approval of Settlement Stipulation? AND shall the Commission grant the Withdrawal of Party Status of Daniel and Tamra Jurgens? OR how shall the Commission proceed?
2. 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 Attorneys: Logan Schaefbauer, Jennie Fuerst)
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. On September 16, 2024, staff sent its first set of data requests. On October 17, 2024, staff sent its second set of data requests.
TODAY, shall the Commission approve the 2025 Infrastructure Rider revenue requirements, 2025 Infrastructure Rider Adjustment factor and revised tariff sheet with an effective date of January 1, 2025?
Gas and Electric
1. GE24-002 In the Matter of the filing by MidAmerican Energy Company for Approval of a Revised Customer Information Welcome Booklet (Staff Analyst: Eric Paulson; Staff Attorneys: Amanda Reiss, Jennie Fuerst)
On November 20, 2024, the Commission received a filing from MidAmerican Energy Company (MidAmerican) for approval of a revised Customer Information Welcome Booklet. Pursuant to ARSD 20:10:16:02, the Customer Information Welcome Booklet shall be submitted to the Commission for approval. MidAmerican is making various revisions to keep the booklet consistent with Iowa and Illinois as well as various verbiage updates and changes to better explain sections and for consistency with numbers. MidAmerican requests an approval date of December 31, 2024.
TODAY, shall the Commission approve the proposed revisions to MidAmerican Energy Company’s Customer Information Welcome Booklet?
Hydrocarbon and Carbon Dioxide Pipeline
1. HP24-001 In the Matter of the Application by SCS Carbon Transport LLC for a Permit to Construct a Carbon Dioxide Transmission Pipeline (Staff Analysts: Darren Kearney, Jon Thurber; Staff Attorneys: Kristen Edwards, Logan Schaefbauer)
On November 19, 2024, the Commission received an Application for a Permit to Construct a Carbon Dioxide Transmission Pipeline (Application) from SCS Carbon Transport LLC (Summit or Applicant), a limited liability company owned by Summit Carbon Solutions, LLC. Applicant proposes to construct and operate a carbon dioxide (CO2) transmission pipeline (Project). The Project, which has been named the Midwest Carbon Express pipeline, is approximately 2,500 miles of pipelines for the transportation of CO2 from ethanol plants across five states, including 15 in South Dakota, to underground injection wells in North Dakota. The main line of the proposed route enters South Dakota in Lincoln County at the Iowa/South Dakota border and extends in a northwesterly direction, exiting the state at the South Dakota/North Dakota border in McPherson County. Major components and associated facilities planned in South Dakota are expected to include pump stations, main line valves, launcher-receiver sites, and approximately 16 total miles of temporary and permanent access roads as part of the Project. In addition to the main line and other components, the proposed Project includes lateral and trunk lines connecting ethanol plants throughout the eastern part of South Dakota to the main line. The Project also includes approximately two miles of transmission pipeline originating at the POET Bioprocessing plant near Hudson, South Dakota and exiting the state into Iowa in northeast Union County, before ultimately connecting with Summit’s pipeline facilities in Iowa. The total proposed length of pipelines through South Dakota is approximately 698 miles and will cross the counties of Beadle, Brookings, Brown, Clark, Codington, Davison, Edmunds, Grant, Hamlin, Hand, Hyde, Kingsbury, Lake, Lincoln, McCook, McPherson, Minnehaha, Miner, Sanborn, Spink, Sully, Turner, and Union. The proposed pump stations are planned to be located in Beadle, Edmunds, Lake, Minnehaha, McPherson, and Spink counties. Applicant estimates the total cost of the proposed Project in South Dakota to be $1,351,563,747. Pursuant to SDCL 49-41B-12, Summit remitted the minimum filing fee at the time of filing. The maximum fee calculated pursuant to statute is $875,782. Applications for Party Status must be filed by January 24, 2025. Applications for Party Status that have been filed in this docket can be viewed at https://puc.sd.gov/Dockets/HydrocarbonPipeline/2024/HP24-001.aspx.
TODAY, shall the Commission assess a filing fee not to exceed $875,782? AND shall the Commission authorize the executive director to enter into necessary consulting contracts? AND shall the Commission grant party status to those who have filed thus far? OR how shall the Commission proceed?
Natural Gas
1. NG24-012 In the Matter of the Filing by NorthWestern Energy Public Service Corporation dba NorthWestern Energy for Approval of Amendment No. 1 to Transportation Service Agreement with Dakota Ethanol, L.L.C. (Staff Analyst: Joseph Rezac; Staff Attorneys: Amanda Reiss, Jennie Fuerst)
On December 3, 2024, NorthWestern Energy Public Service Corporation dba NorthWestern Energy (NorthWestern) filed for approval of Amendment No. 1 to the transportation service agreement with Dakota Ethanol, LLC. Currently NorthWestern provides transportation service to Dakota Ethanol pursuant to a Transportation Service Agreement dated March 30, 2018, approved in docket NG18-010. NorthWestern delivers natural gas purchased by Dakota Ethanol from a town border station delivery point on the Northern Natural Gas Company (NNG) pipeline to Dakota Ethanol’s ethanol facility near Wentworth, South Dakota. Dakota Ethanol has asked to meet its balancing obligation pursuant to an End-User Allocation Agreement among NNG, NorthWestern, and Dakota Ethanol. This proposed amendment will accommodate Dakota Ethanol’s desire to balance directly with NNG.
TODAY, shall the Commission approve NorthWestern Energy’s Amendment No. 1 and restated contract with deviations with Dakota Ethanol, LLC, and the associated tariff revisions with an effective date of January 1, 2025, on less than 30 days’ notice?
2. NG24-005 In the Matter of the Application of NorthWestern Energy Public Service Corporation dba NorthWestern Energy for Authority to Increase Rates for Natural Gas Utility Service in South Dakota (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen, Joseph Rezac, Eric Paulson; Staff Attorneys: Amanda Reiss, Logan Schaefbauer)
On June 21, 2024, the Commission received an application by NorthWestern Energy Public Service Corporation dba NorthWestern Energy (NorthWestern) for approval to increase rates for natural gas service to customers in its South Dakota service area by approximately $6 million annually or approximately 9.10% based on NorthWestern’s 2023 historic test year. NorthWestern states a typical residential customer using 100 therms of gas per month would see an increase of $8.38 or 7.92% per month. The proposed changes may affect approximately 49,800 customers. On December 4, 2024, NorthWestern and staff filed a Joint Motion for Approval of Settlement Stipulation and a Settlement Stipulation, and staff filed a Staff Memorandum Supporting Settlement Stipulation.
TODAY, shall the Commission grant the Joint Motion for Approval of Settlement Stipulation and approve the rates, tariff sheets, terms and conditions stipulated therein? 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 and staff will meet with representatives of NorthWestern Energy on Tuesday, December 17, 2024, at 1:30 p.m. CST in Room 413 at the State Capitol Building, Pierre, South Dakota. The agenda is to discuss an update of NorthWestern Energy’s operations, finance and customer service activities.
2. The PUC office will be closed Wednesday, December 23-25, 2024, in observance of the Christmas holiday.
3. The next regular commission meeting will be Tuesday, December 31, 2024, at 9:30 a.m. CST in Room 413 at the State Capitol Building, Pierre, South Dakota.
4. The PUC office will be closed Wednesday, January 1, 2025, in observance of New Year’s Day.
5. Commission meetings are scheduled for January 14 and 28, 2025.
6. Public input meetings for docket HP24-001 – In the Matter of the Application by SCS Carbon Transport LLC for a Permit to Construct a Carbon Dioxide Transmission Pipeline will be held:
/s/ Cindy Kemnitz .
Cindy Kemnitz
Finance Manager
puc@state.sd.us
December 10, 2024