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South Dakota Public Utilities Commission Meeting
December 29, 2017, at 9:00 a.m. CST
Room 413, Capitol Building
Pierre, South Dakota
MINUTES OF THE AD HOC COMMISSION MEETING
Chairperson Kristie Fiegen called the meeting to order. Present were: Commissioner Nelson; Commission Attorneys: Karen Cremer and Adam de Hueck; Commission Advisor: Greg Rislov; Staff Attorneys: Amanda Reiss; Staff Analysts: Patrick Steffensen, Brittany Mehlhaff, Darren Kearney and Jon Thurber; and Staff: Katlyn Gustafson.
Present were:
Paul Bachand, Moreno, Lee & Bachand, P.C., representing South Dakota Intrastate Pipeline Co.; Gordon Woods, South Dakota Intrastate Pipeline Co.; and Bob Mercer, reporter.
Joining the meeting by telephone were:
Chairperson: Kristie Fiegen; Commissioner: Gary Hanson; Kristen Edwards, Staff Attorney; Garret Senger, and Tamie Aberle; Montana-Dakota Utilities Co.; Brian Bird, Heather Grahame, Crystal Lail, Wayne Hitt, Tim Olson, and Pam Bonrud, NorthWestern Energy Corporation dba NorthWestern Energy; Jason Keil, Jarrad Hammer, and Todd Brink, Black Hills Power, Inc. dba Black Hills Energy; Amanda Hosch, Brian Rybarick, and Tom Specketer, MidAmerican Energy Company; Amanda Rome, Northern States Power Company dba Xcel Energy; Corey Bormann, and Pete Beithon and Tyler Akerman, Otter Tail Power Company.
AGas & Electric
1. GE17-003 In the Matter of Staff’s Request to Investigate the Effects of the Tax Cuts and Jobs Act on South Dakota Utilities (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen; Staff Attorneys: Kristen Edwards, Amanda Reiss)
A lengthy discussion took place regarding docket GE17-003. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2017, December 29, 2017, recording located at: http://puc.sd.gov/commission/media/2017/puc12292017.mp3.
Commissioner Fiegen moved to require Black Hills Power dba Black Hills Energy (BHP), MidAmerican Energy Company (MidAmerican), Montana-Dakota Utilities Co., a Division of MDU Resources Group, Inc. (MDU), NorthWestern Corporation dba NorthWestern Energy (NorthWestern), Otter Tail Power Company (OTP), and Northern States Power Company dba Xcel Energy (Xcel) to file comments in this matter and at a minimum to address the following items: 1) an estimate of the company’s determination of the Tax Cuts and Jobs Act (Act) effects on its South Dakota cost of service. 2) include an explanation of these effects and 3) propose a procedure for changing the company’s rates to affect these impacts; require each utility to file separate comments for electric and natural gas, if appropriate; and, pending a determination of the impact of the Act on the utilities’ rates, the rates in effect as of January 1, 2018, shall be subject to refund or any other rate making treatment which ensures rate payers receive the benefits of the tax change; and, the companies shall work with Staff to establish a procedural schedule for filing comments.
Commissioner Fiegen moved to amend the motion to require BHP, MidAmerican, MDU, NorthWestern, OTP, and Xcel to file initial comments by February 1, 2018, regarding the general effects of the Act on the utility’s cost of service in South Dakota and possible mechanisms for adjusting rates; BHP, MidAmerican, MDU, NorthWestern, OTP, and Xcel shall file additional comments including more specific proposals and impacts and shall work with Staff to determine a deadline for the additional comments. The comments shall, at a minimum, address: 1) an estimate of the company’s determination of the Act’s effects on its South Dakota cost of service, inclusive of all elements; 2) include an explanation of these effects, and 3) propose a procedure for changing the company’s rates to reflect these impacts. Each utility shall file separate comments for electric and natural gas, if applicable; all rates impacted by the federal income tax, not limited to base rates, shall be adjusted effective January 1, 2018, and are subject to refund or any other ratemaking treatment which ensures ratepayers receive the benefits of the tax change as of January 1, 2018, pending a determination of the impact of the Act; and any utility collecting FERC transmission tariff rates through an adjustment clause shall inform the Commission of any FERC proceedings addressing how federal income taxes will be adjusted. Motion to amend carried 3-0. Main motion as amended carried 3-0.
Commissioner Fiegen moved that the requests to intervene by NorthWestern, BHP, MidAmerican, Xcel, MDU, OTP, and South Dakota Intrastate Pipeline be granted. Motion carried 3-0
There being no further business, at the hour of 9:48 a.m. the South Dakota Public Utilities Commission meeting adjourned.
/s/Katlyn Gustafson .
Katlyn Gustafson
Administrative Assistant
PUC Email
December 29, 2017
