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South Dakota Public Utilities Commission Meeting
March 30, 2016, at 9:30 A.M. CDT
Room 413, 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; Staff Attorneys: Kristen Edwards and Adam de Hueck; Staff Analysts: Darren Kearney, Patrick Steffensen, Eric Paulson, Joseph Rezac, Brittany Mehlhaff, and Lorena Reichert; Consumer Affairs Supervisor: Deb Gregg; and Staff: Katlyn Gustafson and Joy Lashley.

Also present were:
Rich Coit, South Dakota Telecommunications Association; Brett Koenecke and Kara Semmler, May, Adam, Gerdes and Thompson, LLP, representing Dakota Access, LLC; and Jeff Decker and Reed McKee, NorthWestern Corporation dba NorthWestern Energy.

Joining the meeting by telephone were:
Pipeline Safety Manager: Mary Zanter; Mike Garrey, Humboldt Municipal Gas; Brenda Haviland, Humboldt Gas Board; Heather VanZee, Humboldt Town Board; Jennifer Moore, Diane Noll, Naomi Czachura, Valerie Hanson, Chuck Rea, Tina Yoder, Renee White, and Padmini Raichur, MidAmerican Energy Company; Jason Topp, Qwest Corporation dba CenturyLink QC; Dave Semerad, West River Electric Association, Inc.; Jesse Sorenson, Black Hills Electric Cooperative, Inc.; Bleau LaFave, Pam Bonrud, and Jon Oostra, NorthWestern Corporation dba NorthWestern Energy; and Randy Hayes, Dakota Access, LLC.

Administration

1.     Approval of the Minutes of the Commission Meetings Held on February 26 and March 15, 2016 (Staff: Joy Lashley)

     Commissioner Hanson moved to approve the minutes of the Commission meetings held on February 26 and March 15, 2016. Motion carried 3-0.

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 42 contacts since the last report was prepared for the March 15, 2016, Commission meeting.

Four contacts involved telecommunication services, 14 contacts involved electrical services, five contacts were related to natural gas service, one contact was related to wireless service, five contacts were related to the Do Not Call Registry, and 13 contacts were related to issues not regulated by the PUC.

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

Complaints received in 2016: 300 of the 315 have been resolved.

Electric

1.     EL16-003     In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of a Contract with Deviations (Staff Analyst: Lorena Reichert; Staff Attorney: Kristen Edwards)

A lengthy discussion took place regarding Docket EL16-003. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2016, March 30, 2016, recording located at: http://puc.sd.gov/commission/media/2016/puc03302016.mp3.

     Commissioner Fiegen moved to approve the contract with deviations and associated tariff revisions effective April 1, 2016. Motion carried 2-1. Commissioner Nelson dissented.

2.     EL16-004     In the Matter of the Filing by MidAmerican Energy Company for Approval of Tariff Revisions to its Transmission Cost Recovery 2015 Reconciliation and New Factor Calculation (Staff Analyst: Eric Paulson, Joseph Rezac, Lorena Reichert; Staff Attorney: Kristen Edwards)

A lengthy discussion took place regarding Docket EL16-004. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2016, March 30, 2016, recording located at: http://puc.sd.gov/commission/media/2016/puc03302016.mp3.

     Commissioner Fiegen moved to approve the revised TCR rate factor and revised tariff sheet effective April 4, 2016, and deny the requested waiver. Motion carried 3-0.

3.     EL16-010     In the Matter of the Joint Request for Service Rights Exception between West River Electric Association, Inc. and Black Hills Electric Cooperative, Inc. (Staff Analyst: Lorena Reichert; Staff Attorney: Kristen Edwards)

Mr. Dave Semerad, West River Electric Association, Inc. (WREA) and Black Hills Electric Cooperative (BHEC), asked that the Commission approve the requested service rights exception between WREA and BHEC. Ms. Kristen Edwards, staff attorney, recommended that the Commission approve WREA and BHEC’s request.

     Commissioner Hanson moved to approve the requested service rights exception between West River Electric Association and Black Hills Electric Cooperative. Motion carried 3-0.

Gas and Electric

1.     GE16-001     In the Matter of the Filing by MidAmerican Energy Company for the Approval of Its Reconciliation and Annual Report for 2015 and Revisions to Its Energy Efficiency Cost Recovery Rate (Staff Analyst: Darren Kearney; Staff Attorney: Kristen Edwards)

Ms. Jennifer Moore, MidAmerican Energy Company (MidAmerican), asked that the Commission approve the 2015 reconciliation amounts and the 2015 performance incentive. Ms. Moore also requested that the Commission approve the changes to the Energy Efficiency Cost Recovery Factors and tariff sheets effective April 4, 2016. Mr. Darren Kearney, staff analyst, stated that staff filed a memo on March 28, 2016, summarizing staff’s position and recommended that the Commission grant approval to MidAmerican’s request.

     Commissioner Nelson moved to approve the 2015 reconciliation amounts, the 2015 performance incentive and approve the changes to the Energy Efficiency Cost Recovery Factors and tariff sheets, with an effective date of April 4, 2016. Motion carried 3-0.

Pipeline Safety

1.     PS15-001     In the Matter of the Filing by Commission Pipeline Safety Staff for Approval of a Penalty for a Pipeline Safety Violation by Humboldt Municipal Gas Utilities (Pipeline Safety Inspectors: Mary Zanter, Boice Hillmer; Staff Attorney: Kristen Edwards)

A lengthy discussion took place regarding Docket PS15-001. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2016, March 30, 2016, recording located at: http://puc.sd.gov/commission/media/2016/puc03302016.mp3. No action was taken.

Telecommunications

1.     TC16-003     In the Matter of the Approval of a Wireline Interconnection Agreement between Qwest Corporation dba CenturyLink QC and McLeodUSA Telecommunications Services, LLC; Windstream KDL, LLC; and Windstream NTI, LLC for the State of South Dakota (Staff Analyst: Lorena Reichert; Staff Attorney: Kristen Edwards)

Mr. Jason Topp, Qwest Corporation dba CenturyLink QC (CenturyLink), asked that the Commission approve the interconnection agreement between CenturyLink and McLeodUSA Telecommunications Services, LLC; Windstream KDL, LLC; and Windstream NTI, LLC. Ms. Kristen Edwards, staff attorney, stated that the agreement was properly filed, properly executed, and does not appear to contain discriminatory provisions, and no comments were filed. Ms. Edwards recommended that the Commission grant approval.

     Commissioner Nelson moved to approve the interconnection agreement. Motion carried 3-0.

2.     TC16-004     In the Matter of the Approval of a Wireline Interconnection Agreement between Midcontinent Communications and Venture Communications (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

Mr. Pat Mastel, Midcontinent Communications, asked that the Commission approve the interconnection agreement between Midcontinent Communications and Venture Communications. Ms. Kristen Edwards, staff attorney, stated that the agreement was properly filed, properly executed, and does not appear to contain discriminatory provisions, and no comments were filed. Ms. Edwards recommended that the Commission grant approval.

     Commissioner Hanson moved to approve the interconnection agreement. Motion carried 3-0.

There being no further business, at the hour of 10:28 a.m. the South Dakota Public Utilities Commission meeting adjourned.

/s/Joy Lashley     .
Joy Lashley
Administrative Assistant
PUC Email
March 30, 2016