South Dakota Public Utilities Commission Meeting
January 14, 2025, at 9:30 A.M. CST
Matthew Training Center, Foss 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, January 13, 2025, 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 17, 2024 (Staff: Janeth Merriman)
Consumer Reports
1. Status Report on Consumer Utility Inquiries (Consumer Affairs: Deb Gregg)
Telecommunications
1. TC24-041 In the Matter of the Joint Application of Celerity Networks LLC and Gallatin Wireless Internet LLC for Authority to Complete the Transfer of the Certificate of Authority to Provide Competitive Local Exchange Telecommunications Services of Celerity Networks LLC to Gallatin Wireless Internet LLC (Staff Analyst: Patrick Steffensen; Staff Attorneys: Logan Schaefbauer, Jennie Fuerst)
On November 7, 2024, the Commission received Celerity Network LLC (Celerity) and Gallatin Wireless Internet LLC’s (Gallatin) Joint Application to transfer Celerity’s Certificate of Authority to provide competitive local exchange telecommunications services to Gallatin. Gallatin intends to provide gigabit broadband service to residential and enterprise customers in South Dakota that will enable voice, data, internet access, video streaming, and other advanced communications services. To the extent Gallatin provides voice services, such services will be provided predominately via VoIP. Gallatin does not intend to offer switched voice or switched access services in South Dakota at this time. On December 2, 2024, Gallatin filed a letter stating it agreed to be subject to and comply with all the terms and conditions of the Order Granting Joint Stipulation and Order granting Certificate of Authority to Celerity in Docket TC21-125. On December 2, 2024, Gallatin filed responses to staff’s first set of data requests. On December 18, 2024, Gallatin filed responses to staff’s second set of data requests.
TODAY, shall the Commission grant Celerity and Gallatin’s joint request to transfer Celerity’s Certificate of Authority to provide competitive local exchange telecommunications services to Gallatin? AND shall the Commission grant Gallatin’s request for a waiver of ARSD 20:10:32:10?
Electric
1. 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; Staff Attorneys: Logan Schaefbauer, Amanda Reiss, Jennie Fuerst)
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. With the initial filing, Black Hills proposed 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. With the initial filing, the expected generation was 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. On August 29, 2024, the Commission issued an Order Designating Affected Area and Designating Local Review Committee. On December 20, 2024, Black Hills filed a Motion to Withdraw the Notice of Intent and for dismissal without prejudice. According to the Motion to Withdraw, due to an engineering change, the Lange 2 Power Plant is now designed for and capable of generating a maximum of 99.6 megawatts of electricity. SDCL Chapter 49-41B requires a permit from the Commission for energy conversion facilities designed for or capable of generation of one hundred megawatts or more of electricity.
TODAY, shall the Commission grant the Motion to Withdraw and dismiss the docket without prejudice? OR how shall the Commission proceed?
2. EL24-035 In the Matter of the Joint Request for Approval of an Electric Service Territory Exchange Agreement between West River Electric Association, Inc. and Black Hills Power, Inc. dba Black Hills Energy (Staff Analyst: Brittany Mehlhaff; Staff Attorneys: Amanda Reiss; Jennie Fuerst)
On November 22, 2024, the Commission received a Joint Request for Approval of an Electric Service Territory Exchange Agreement between West River Electric Association, Inc. (West River Electric) and Black Hills Power, Inc. dba Black Hills Energy (Black Hills). The Joint Request asks the Commission to approve an agreement to exchange territory in Sections 4 and 22 of Township 2 North, Range 7 East, in Meade County and Pennington County, South Dakota, respectively. There are currently two customers of Black Hills that will be in the new territory for West River Electric. Those 2 customers will be grandfathered in and continue to be served by Black Hills. On December 20, 2024, Black Hills filed a Revised Exhibit A – Legal Description. On January 2, 2025, Black Hills and West River Electric filed responses to staff’s first data request.
TODAY, shall the Commission approve the Joint Request for Approval of an Electric Service Territory Exchange Agreement between West River Electric Association, Inc. and Black Hills Power, Inc. dba Black Hills Energy?
3. EL24-036 In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of a Credit Mechanism for Payments from the Fourth Extended Department of Energy Settlement (Staff Analyst: Patrick Steffensen; Staff Attorneys: Amanda Reiss, Jennie Fuerst)
On November 27, 2024, Northern States Power Company dba Xcel Energy (Xcel) filed for approval of a credit mechanism for funds received pursuant to the fourth extended Settlement with the United States Department of Energy (DOE) for DOE’s partial breach of its contract to take spent nuclear fuel. The gross amount currently available for credit is approximately $10.6 million on a total company basis, or $605,967 on a South Dakota jurisdictional basis. Due to frequent extension requests rising from refunds in other jurisdictions, staff and Xcel agreed that current and future one-time bill credits be refunded within 180 days. On December 12, 2024, Xcel filed responses to staff’s first data request.
TODAY, shall the Commission approve Xcel’s request and the continuation of the one-time bill credit mechanism paid within 180 days of Xcel’s receipt of payment? OR how shall the Commission proceed?
4. EL24-037 In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between City of Fort Pierre and West Central Electric Cooperative, Inc. (Staff Analyst: Eric Paulson; Staff Attorney: Logan Schaefbauer)
On December 4, 2024, the Commission received a petition from West Central Electric Cooperative, Inc. (West Central), and the City of Fort Pierre (City) requesting the Commission approve a service rights exception. The service rights exception will allow West Central to provide service to the Legion baseball complex site in the City’s service territory for a minimum of 10 years. The proposed baseball complex site is located in northwest Fort Pierre in Stanley County, South Dakota.
TODAY, shall the Commission approve the requested service rights exception between West Central Electric Cooperative, Inc. and the City of Fort Pierre?
5. EL24-038 In the Matter of Otter Tail Power Company’s Petition for Approval of Rate Schedule, Section 13.09, Phase-In Rider (Staff Analysts: Brittany Mehlhaff, Eric Paulson; Staff Attorneys: Logan Schaefbauer, Jennie Fuerst)
On December 20, 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 2025 – August 2026). In addition to the previously approved projects and adjustments, Otter Tail requests approval to include two new solar facilities, Solway Solar and Abercrombie Solar. Otter Tail continues to propose a per meter rate structure for the Advanced Grid Infrastructure projects and a percent of bill rate structure for all other projects and adjustments in this rider. Otter Tail states a typical residential electric customer using an average of 1,000 kWh per month will see a bill decrease of $0.68 per month. A large general service customer using 486 kW and 222,350 kWh per month will see a bill decrease of $81.40 per month. Otter Tail proposes an effective date of September 1, 2025.
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?
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 to underground injection wells in North Dakota. The South Dakota portion of the Project, is approximately 698 miles, crossing 23 counties. 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. 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. 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/HP24-001PartyStatus.aspx.
TODAY, shall the Commission grant party status to those who have filed on or before January 9, 2025? OR how shall the Commission proceed?
Leadership
1. Election of a Chairperson and Vice Chairperson of the Commission (Commission Attorney: Kristen Edwards)
South Dakota Codified Law 49-1-8 provides the members of the Commission shall elect a chairperson by majority vote. Pursuant to SDCL 1-25-1 and 49-1-12, this vote must be taken at a public meeting. Commissioner Kristie Fiegen was selected as Chairperson and Commissioner Gary Hanson as Vice Chair at the January 5, 2023, commission meeting.
TODAY, shall the Commission elect a Chairperson and Vice Chairperson?
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 Mid-America Regulatory Commissioners Summit, January 9-11, 2025, at The Fordson Hotel, Oklahoma City, Oklahoma.
2. A show cause hearing for the following dockets will be held Tuesday, January 14, 2025, at 9:00 a.m. CST in the Floyd Matthew Training Center in the Foss Building, 523 E. Capitol Avenue, Pierre, South Dakota.
- TC24-042 - In the Matter of Approved Contact, LLC’s Failure to Timely Pay the Gross Receipts Tax
- TC24-043 - In the Matter of COMTECH21, LLC’s Failure to Timely Pay the Gross Receipts Tax
- TC24-044 - In the Matter of Rocket Mobile, LLC’s Failure to Timely Pay the Gross Receipts Tax
- TC24-045 - In the Matter of Sarver Corporation’s Failure to Timely Pay the Gross Receipts Tax
- TC24-046 - In the Matter of Square Mobile Inc.’s Failure to Timely Pay the Gross Receipts Tax
- TC24-047 - In the Matter of WeIncentivize LLC dba Chosen Wireless’ Failure to Timely Pay the Gross Receipts Tax
3. 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:
- Wednesday, January 15, 2025, at 10:00 a.m., CST, at the Mitchell High School Performing Arts Center, 821 N. Capital St., Mitchell, South Dakota.
- Wednesday, January 15, 2025, at 5:00 p.m., CST, at the HUB Auditorium, Southeast Technical College, 2001 N. Career Ave., Sioux Falls, South Dakota.
- Thursday, January 16, 2025, at 11:30 a.m., CST, at De Smet Event Center Theater, 705 Wilder Lane, De Smet, South Dakota.
- Thursday, January 16, 2025, at 6:00 p.m., CST, at the Kampeska Hall, Ramkota Hotel & Watertown Event Center, 1901 Ninth Ave. SW, Watertown, South Dakota.
- Friday, January 17, 2025, at 10:30 a.m., CST, at the Dakota Room, The Dakota Event Center, 720 Lamont St., Aberdeen, South Dakota.
- Friday, January 17, 2025, at 6:00 p.m., CST, at Redfield School Auditorium, 111 E. Sixth Ave., Redfield, South Dakota.
4. The PUC office will be closed Monday, January 20, 2025, in observance of Martin Luther King, Jr. Day.
5. An evidentiary hearing 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 January 21-24, 2025, beginning at 9:30 a.m. CST on Tuesday, January 21, in the Floyd Matthew Training Center in the Foss Building, 523 E. Capitol Avenue, Pierre, South Dakota.
6. The PUC will host a Briefing for Legislators on Monday, January 27, 2025, at 4:00 p.m. CST in Room 414 at the State Capitol Building, Pierre, South Dakota. The agenda is to discuss current issues related to telecommunications, energy regulation and grain warehouses.
7. The PUC will host an Open House for Legislators on Tuesday, January 28, 2025, 7:30-11:00 a.m. CST in the PUC office, first floor of the State Capitol Building, Pierre, South Dakota.
8. The next regular commission meeting will be Tuesday, January 28, 2025, at 1:30 p.m. CST in the Floyd Matthew Training Center in the Foss Building, 523 E. Capitol Avenue, Pierre, South Dakota.
9. Commission meetings are scheduled for February 11 and 28, 2025.
/s/ Cindy Kemnitz .
Cindy Kemnitz
Finance Manager
puc@state.sd.us
January 7, 2025