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South Dakota Public Utilities Commission Meeting
December 8, 2015, at 9:30 A.M. CST
Room 414, Capitol Building
Pierre, South Dakota

MINUTES OF THE COMMISSION MEETING

Chairman Chris Nelson called the meeting to order. Present were: Commissioners: Kristie Fiegen and Gary Hanson; Commission Counsel: Rolayne Wiest and Karen Cremer; Commission Advisor: Greg Rislov; Staff Attorneys: Kristen Edwards and Adam de Hueck; Staff Analysts: Brian Rounds, Brittany Mehlhaff, Eric Paulson, Joseph Rezac, and Lorena Reichert; Consumer Affairs Manager: Deb Gregg; and Staff: Katlyn Gustafson.

Also present were:
Mr. Rich Coit, South Dakota Telecommunications Association; Pat Mastel and Dan Nelson, Midcontinent Communications; Don Martinez, Black Hills Power, Inc.

Joining the meeting by telephone were:
Staff Analyst: Darren Kearney; Carey Roesel, Technologies Management, Inc., representing Native American Telecom, LLC; Diane Noll, Naomi Czachura, and Jennifer Moore, MidAmerican Energy Company; Roger Cutshaw, H-D Electric Cooperative, Inc.; Jim Wilcox, Eric Pauli, Jessie Peterson, Shawn White, Howard Hoffman, Josh Fields, and Deb Paulson, Northern States Power Company dba Xcel Energy; Vince Jones, Woods, Fuller, Shultz and Smith, representing RMB Associates, LLC; Joel Dykstra and Aaron Kompelien, RMB Associates, LLC; Lee Magnuson, Lindquist & Vennum, LLP, representing Black Hills Power, Inc.; Andrew Cottrell, Applied Energy Group Inc, representing Black Hills Power, Inc.; Mike Dangel, Charles Mix Electric Cooperative, Inc.; Ronald Gogolin, NorthWestern Energy; and Steve Jurek and Lee DeLange, Black Hills Power, Inc.

Administration

1.      Approval of the minutes of the Commission meetings held on November 12, and November 24, 2015 and the Ad Hoc Commission Meeting on November 30, 2015 (Staff: Joy Lashley)

      Commissioner Hanson moved to approve the minutes of the Commission meetings held on November 12, and November 24, 2015, and defer the Ad Hoc Commission meeting minutes on November 30, 2015.  Motion carried 3-0.

2.     Update of deferral action of Lycamobile USA Inc. from November 24, 2015, Commission Meeting. (Staff Attorney: Kristen Edwards)

        Ms. Kristen Edwards, staff attorney, stated that Lycamobile USA Inc. paid its Gross Receipts Tax and penalty and no further action needs to be taken.

Consumer Reports

1.     Status Report on Consumer Utility Inquiries and Complaints Received by the Commission (Consumer Affairs: Deb Gregg)

The Commission received a total of 58 contacts since the last report was prepared for the November 24, 2015 Commission meeting.

9 contacts involved telecommunication services, 14 contacts involved electrical services, 3 contacts were related to natural gas service, 3 contacts were related to wireless service, 10 contacts were related to the Do Not Call Registry, 10 contacts were related to the Dakota Access Pipeline, 1 contact was related to wind energy and 8 contacts were related to issues not regulated by the PUC.

1,914 of the 1,916 complaints received in 2014 have been resolved.

1,908 of the 1,922 complaints received in 2015 have been resolved.

Electric

1.     EL15-015     In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of Its 2014 Demand Side Management Report and 2016 Proposed Demand Side Management Plan (Staff Analyst: Darren Kearney; Staff Attorneys: Karen Cremer, Adam de Hueck)

A lengthy discussion took place regarding docket EL15-015. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2015, December 8, 2015, recording located at: http://puc.sd.gov/commission/media/2015/puc12082015.mp3.

     Commissioner Fiegen moved to approve the Company's 2014 DSM Status Report and tracker account, the performance incentive earned for 2014, the DSM program changes for 2016, and the DSM Cost Adjustment Factor of $0.000448 per kWh with a January 1, 2016, effective date.  Motion carried 3-0.

2.     EL15-031     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Charles Mix Electric Cooperative, Inc. and NorthWestern Corporation dba NorthWestern Energy (Staff Analyst: Brian Rounds; Staff Attorney: Adam de Hueck)

Mr. Brian Rounds, staff analyst, recommended that the Commission approve the proposed electric service territory boundary agreement between Charles Mix Electric Cooperative, Inc. and NorthWestern Energy.

     Commissioner Nelson moved to approve the proposed electric service territory boundary agreement. Motion carried 3-0.

3.     EL15-032     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between H-D Electric Cooperative, Inc. and Otter Tail Power Company (Staff Analyst: Brian Rounds; Staff Attorney: Adam de Hueck)

Mr. Brian Rounds, staff analyst, recommended that the Commission approve the proposed electric service territory boundary agreement between H-D Electric Cooperative, Inc. and Otter Tail Power Company.

     Commissioner Hanson moved to approve the proposed electric service territory boundary agreement.  Motion carried 3-0.

4.     EL15-036     In the Matter of the Application of Black Hills Power, Inc. for Approval of Tariff Revisions Related to its Cost of Service Gas Agreement with Black Hills Utility Holdings, Inc. (Staff Analysts: Brittany Mehlhaff, Eric Paulson; Staff Attorney: Adam de Hueck)

Mr. Adam de Hueck, staff attorney, recommended that the Commission grant Constellation NewEnergy-Gas Division, LLC's request  to withdraw its Petition to Intervene.

     Commissioner Fiegen moved to grant the withdrawal of the intervention of Constellation NewEnergy-Gas Division, LLC.  Motion carried 3-0.

5.     EL15-038     In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of its 2016 Infrastructure Rider Project Eligibility and Factor Update (Staff Analysts: Brittany Mehlhaff, Joseph Rezac; Staff Attorney: Adam de Hueck)

A lengthy discussion took place regarding docket EL15-038. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2015, December 8, 2015, recording located at: http://puc.sd.gov/commission/media/2015/puc12082015.mp3.

     Commissioner Fiegen moved to approve the Infrastructure Rider Adjustment Factor of $0.004806 per kWh and revised tariff sheet with an effective date of January 1, 2016.  Motion carried 3-0.

6.     EL15-044     In the Matter of the Application of Black Hills Power, Inc. for Approval of Energy Efficiency Programs, Tariffs, and Cost Recovery Mechanism (Staff Analysts: Darren Kearney, Joe Rezac; Staff Attorney: Adam de Hueck)

A lengthy discussion took place regarding docket EL15-044. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2015, December 8, 2015, recording located at: http://puc.sd.gov/commission/media/2015/puc12082015.mp3.

     Commissioner Hanson moved to approve the Energy Efficiency Solutions Plan status reports, the proposed changes to the currently effective Energy Efficiency Solutions Plan, and the new Energy Efficiency Solutions Adjustment rates of $0.0004/kWh for residential services and $0.0009/kWh for commercial and industrial services including staff's recommendations. 

     Commissioner Nelson moved to amend the motion to remove all dealer incentive payments.  Amendment carried 3-0.

     Motion as amended carried 3-0.

7.     EL15-047     In the Matter of the Filing by MidAmerican Energy Company for Approval of Tariff Revisions to its Energy Cost Adjustment Factor Tariff (Staff Analyst: Brittany Mehlhaff; Staff Attorney: Kristen Edwards)

Ms. Naomi Czachura, MidAmerican Energy Company (MidAmerican), asked that the Commission approve its tariff revisions effective December 23, 2015. Ms. Brittany Mehlhaff, staff analyst, recommended that the Commission approve MidAmerican's request.

     Commissioner Fiegen moved to approve the tariff revision with an effective date of December 23, 2015.Motion carried 3-0.

Gas and Electric

1.     GE15-003     In the Matter of the Request by RMB Associates, LLC for a Variance to the Separate Metering Requirement in 20:10:26:03(1) for Graystone Heights Apartments - a 331 Unit Apartment in Sioux Falls, South Dakota (Staff Analyst: Joseph Rezac; Staff Attorney: Adam de Hueck)

A lengthy discussion took place regarding docket GE15-003. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2015, December 8, 2015, recording located at: http://puc.sd.gov/commission/media/2015/puc12082015.mp3.

     Commissioner Nelson moved that pursuit to ARSD 20:10:26:04(6) that a Master Metering Variance is not necessary because the project contains a central water heating system.

     Commission Fiegen made a substitute motion to grant the Master Metering Variance request to RMB Associates, LLC.  Motion carried 3-0.

Telecommunication

1.     TC15-059     In the Matter of the Filing by Native American Telecom, LLC for Approval of Revisions to its Access Service Tariff No. 2 (Staff Analyst: Lorena Reichert; Staff Attorney: Adam de Hueck)

Mr. Carey Roesel, Technologies Management, Inc., representing Native American Telecom, LLC (NAT), asked that the Commission approve NAT's revisions to its Access Services Tariff No. 2.

     Commissioner Nelson moved to approve Native American Telecom, LLC's Revisions to its Access Service Tariff No. 2. Motion carried 3-0.

2.     TC15-063     In the Matter of the Application of Midcontinent Communications for an Amended Certificate of Authority and for a Waiver of ARSD 20:10:32:15 (Staff Analyst: Lorena Reichert; Staff Attorney: Kristen Edwards)

A lengthy discussion took place regarding docket EL15-044. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2015, December 8, 2015, recording located at: http://puc.sd.gov/commission/media/2015/puc12082015.mp3.

     Commissioner Nelson deferred this docket.

There being no further business, at the hour of 11:08 a.m. the South Dakota Public Utilities Commission meeting adjourned.

/s/Joy Lashley     .
Joy Lashley
Administrative Assistant
PUC Email
December 8, 2015