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South Dakota Public Utilities Commission Meeting
July 15, 2025, 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, July 14, 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 July 1, 2025 (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 TC25-010, TC25-012, TC25-013, TC25-015 and TC25-018
TC25-010 In the Matter of the Request of Kennebec Telephone Co., Inc. for Certification Regarding its Use of Federal Universal Service Support (Study Area 391668) (Staff Attorney: Jennie Fuerst)
On June 12, 2025, the Commission received an application from Kennebec Telephone Co., 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 June 23, 2025, the Company responded to staff’s data request.
TC25-012 In the Matter of the Request of Santel Communications Cooperative Inc. for Certification Regarding Its Use of Federal Universal Service Support (Study Area: 391676) (Staff Analyst: Patrick Steffensen)
On June 12, 2025, the Commission received an application from Santel 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. On June 26, 2025, the Company responded to staff’s data requests.
TC25-013 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 Attorney: Jennie Fuerst)
On June 16, 2025, the Commission received an application from TrioTel Communications, Inc. (Company) requesting the Commission 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 June 24, 2025, the Company responded to staff’s data request.
TC25-015 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)
On June 23, 2025, 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.
TC25-018 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 Attorney: Jennie Fuerst)
On June 25, 2025, 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.
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. EL25-024 In the Matter of the Application of Northern States Power Company dba Xcel Energy for Authority to Increase its Electric Rates (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen, Eric Paulson, Joseph Rezac; Staff Attorney: Logan Schaefbauer)
On June 30, 2025, the Commission received an application by Northern States Power Company dba Xcel Energy (Xcel) for authority to increase rates for electric service in South Dakota. With its Application, Xcel requests a net annual incremental increase in revenues of $43.6 million, or approximately 15%. Additionally, the costs of certain projects that are currently recovered through the Infrastructure Rider and the Transmission Cost Recovery Rider will be rolled into base rates, resulting in a gross overall base rate increase of $63.4 million. Xcel states a typical residential electric customer using 756 kWh per month would see an average monthly bill increase of about $20.56 or 18.66%. The proposed changes may affect approximately 107,000 electricity customers in South Dakota. Xcel proposes an effective date of January 1, 2026, consistent with the moratorium currently in effect pursuant to the settlement stipulation approved by the Commission in docket EL22-017.
TODAY, shall the Commission assess a filing fee for actual expenses not to exceed $500,000? AND shall the Commission give the Executive Director authority to enter into necessary consulting contracts?
2. EL25-017 In the Matter of Otter Tail Power Company’s Petition for Approval of a Thermal Technology Market Energy Rate Section 14.16 (Staff Analyst: Brittany Mehlhaff; Staff Attorney: Amanda Reiss)
On April 22, 2025, Otter Tail Power Company (Otter Tail) filed a Petition for Approval of a Thermal Technology Market Energy Rate Section 14.16. Otter Tail’s proposed voluntary Thermal Market Energy Pricing (TMEP) rider is available only to customers who meet specific operational and technological criteria. Generally, the customer must be a large (at least 25 MW), low-load factor (less than 50%), new greenfield thermal storage facility with its non-firm load tied to and limited by the output of a specific wind or solar generation, and be registered as a MISO load modifying resource, among other requirements set out in the tariff. Otter Tail proposes an August 1, 2025, effective date. On July 3, 2025, Otter Tail filed amended attachments A, B, and D. This filing includes proposed changes to the TMEP rider, Energy Efficiency Partnership (EEP) rider, and the applicability matrix, to reflect an exemption from the EEP Rider for TMEP customers for energy consumed above the baseline demand.
TODAY, shall the Commission approve Otter Tail Power Company’s proposed tariff revisions, including the amendments filed on July 3, 2025, to be effective August 1, 2025?
3. EL25-015 In the Matter of Otter Tail Power Company’s Petition for Approval of an Electric Service Agreement for Big Stone South Energy Storage Project, LLC and Associated Tariff Revisions (Staff Analyst: Eric Paulson; Staff Attorney: Logan Schaefbauer)
On April 22, 2025, Otter Tail Power Company (Otter Tail) filed for approval of an Electric Service Agreement with deviations (ESA) with Big Stone South Energy Storage Project, LLC (BSESP). BSESP will be a large load at a new location with an estimated partially controllable demand of 155,000 kW when operating at full capacity. BSESP plans to run a thermal storage facility. BSESP will use electricity to heat blocks of carbon, which store heat, which in turn will be used to heat water to create steam. BSESP will then pipe the steam to nearby bio-fuels company, POET Biorefining – Big Stone, LLC (POET) for use in its industrial processes. Otter Tail plans to serve BSESP via new distribution assets including two new transformers and two new sections of underground cable that will connect BSESP and POET through Otter Tail’s Big Stone South Substation. Otter Tail has entered into an ESA with BSESP, conditioned upon Commission approval, with a 20-year term and protections for other customers and the Company, where the customer would take service of its firm load via the Large General Service Tariff Section 10.04, and its non-firm load via the Company’s new Thermal Market Energy Pricing Rider. Key deviations of the proposed ESA have been filed as confidential. On May 29 and June 17, 2025, Otter Tail responded to staff’s data requests.
TODAY, shall the Commission approve Otter Tail’s Electric Service Agreement with deviations with Big Stone Energy Storage Project, LLC and the associated tariff revisions with an effective date of August 1, 2025?
4. EL25-016 In the Matter of Otter Tail Power Company’s Petition for Approval of an Electric Service Agreement for POET Biorefining – Big Stone, LLC and Associated Tariff Revisions (Staff Analyst: Eric Paulson; Staff Attorney: Logan Schaefbauer)
On April 22, 2025, Otter Tail Power Company (Otter Tail) filed for approval of an Electric Service Agreement (ESA) with deviations with POET Biorefining – Big Stone, LLC (POET). Currently, POET takes its electric service from Otter Tail via the Large General Service Tariff section 10.04 and will continue to do so under the new ESA. Recently, POET has partnered with Big Stone Energy Storage Project, LLC (BSESP) to provide steam for POET to use in its industrial processes. With this new steam service, POET is working to qualify for federal tax credits under Internal Revenue Code § 45Z that will help POET to remain competitive in the biorefining industry and lower its Carbon Intensity score, which is used for pricing in Low Carbon Fuel Standard markets. All terms, conditions, and deviations of the proposed ESA have been filed as confidential. On May 29, 2025, Otter Tail responded to staff’s data requests.
TODAY, shall the Commission approve Otter Tail’s Electric Service Agreement with deviations with POET Biorefining – Big Stone, LLC and the associated tariff revisions with an effective date of August 1, 2025?
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 proposed 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 requested approval to include two new solar facilities, Solway Solar and Abercrombie Solar. Otter Tail proposed an effective date of September 1, 2025. On May 14, 2025, the Commission issued an Order Approving Phase-In Rider Factors, with an effective date of September 1, 2025. On July 3, 2025, Otter Tail filed a letter regarding tariff changes necessary to incorporate revisions proposed in docket EL25-017.
TODAY, shall the Commission approve Otter Tail Power Company’s revised tariff sheets as filed on July 3, 2025?
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 hearing for docket RM25-001 - In the Matter of the Adoption of Administrative Rules, will be held Tuesday, July 15, 2025, beginning at 1:30 p.m. CDT, in Room 413 at the State Capitol Building, Pierre, South Dakota. Participants who wish to join this hearing by conference call should contact the Commission at 605-773-3201 by 10:00 a.m. CDT on Tuesday, June 15, 2025, to reserve a phone line.
2. Commissioners will attend the National Association of Regulatory Utility Commissioners’ Summer Policy Summit July 27-30, 2025, at the OMNI, Boston, Massachusetts.
3. The next regular commission meeting will be Friday, August 1, 2025, at 9:30 a.m. CDT in Room 413 at the State Capitol Building, Pierre, South Dakota.
4. Commission meetings are scheduled for August 14 and 26, 2025.
/s/ Cindy Kemnitz .
Cindy Kemnitz
Finance Manager
puc@state.sd.us
July 8, 2025
