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South Dakota Public Utilities Commission Meeting
May 28, 2019, at 1:30 P.M. CDT
Room 413, Capitol Building
Pierre, South Dakota
MINUTES OF THE COMMISSION MEETING
Commissioner Gary Hanson called the meeting to order. Commissioners: Chris Nelson and Kristie Fiegen; Commission Attorneys: Karen Cremer and Adam de Hueck; Commission Advisor: Greg Rislov; Staff Attorney: Kristen Edwards; Staff Analysts: Brittany Mehlhaff, Patrick Steffensen, Eric Paulson, Darren Kearney, Joseph Rezac and Lorena Reichert; Consumer Affairs Manager: Deb Gregg; and Staff: Kaitlyn Baucom.
Present were:
Brett Koenecke, May, Adam, Gerdes & Thompson LLP, representing Triple H Wind Project, LLC; Margo Northrup, Riter, Rogers, Wattier & Northrup, LLP, representing South Dakota Telecommunications Association and Cheyenne River Sioux Tribe Telephone Authority; Bob Mercer, KELO reporter; Grace Beck, self; and Marc Eyre and Daniel Kline, Black Hills Power, Inc. dba Black Hills Energy.
Joining the meeting by telephone were:
Staff Attorney: Amanda Reiss; Tom Welk, Boyce Law Firm, LLP, representing Otter Tail Power Company; Miles Schumacher, Lynn, Jackson, Shultz and Lebrun, PC, representing Crowned Ridge Wind, LLC and Crowned Ridge Wind II, LLC; Dave Peterson and Basil Copeland, Chesapeake Regulatory Consultants Inc, representing PUC staff; Katelyn Lynch-Butcher, Aimee Rooney, Amanda Hosch and Diane Votino, MidAmerican Energy Company; Jason Topp, Qwest Corporation dba CenturyLink QC; Mollie Smith, Fredrikson & Byron, P.A., representing Sweetland Wind Farm, LLC; Mark Wengierski, Sweetland Wind Farm, LLC; Brian Murphy, NextEra Energy Resources, LLC, representing Crowned Ridge Wind, LLC; Tamie Aberle, Nathan Bensen, Rob Frank and Travis Jacobson, Montana-Dakota Utilities Co., a Subsidiary of MDU Resources Group Inc.; and Kelli Pazour, self.
(NOTE: For the purpose of continuity, these minutes are not necessarily in chronological order.)
Administration
1. Approval of Minutes of the Commission Meeting Held on May 2, 2019, and the Ad Hoc Commission Meeting held on May 9, 2019 (Staff: Joy Lashley)
Commissioner Nelson moved to approve the minutes of the Commission meeting held on May 2, 2019, and the Ad Hoc Commission meeting held on May 9, 2019. Motion carried 3-0.
Consumer Reports
1. Status Report on Consumer Utility Inquiries (Consumer Affairs: Deb Gregg)
The Commission received a total of 39 contacts since the last report was prepared for the May 14, 2019, Commission meeting.
Three contacts were related to telecommunication services, 11 contacts were related to electrical services, two contacts were related to natural gas service, one contact was related to gas and electric service, three contacts were related to wireless service, six contacts were related to the Do Not Call Registry, two contacts were related to Wind Energy, one contact was related to One Call and ten contacts were related to issues not regulated by the PUC.
Contacts received in 2019: 536 of the 545 have been resolved.
Electric
1. EL18-021 In the Matter of the Application of Otter Tail Power Company for Authority to Increase Its Electric Rates (Staff Analysts: Brittany Mehlhaff, Eric Paulson, Joseph Rezac, Lorena Reichert; Staff Attorney: Kristen Edwards)
Mr. Pete Beithon, Otter Tail Power Company (Otter Tail), asked that the Commission approve the final revenue requirement as filed by staff and Otter Tail. Ms. Brittany Mehlhaff, staff analyst, recommended that the Commission approve the request.
Commissioner Fiegen moved to approve the final revenue requirement as filed by staff and Otter Tail and that the interim refund plan and revised tariff sheets be on the June 25, 2019 agenda for approval.Motion carried 3-0.
2. EL19-006 In the Matter of the Application of Black Hills Power Inc. dba Black Hills Energy for a Facility Permit to Construct a 230 kV Transmission Line and Associated Facilities in Pennington County (Staff Analysts: Eric Paulson, Joseph Rezac; Staff Attorney: Kristen Edwards)
Mr. Jason Keil, Black Hills Power, Inc. dba Black Hills Energy (BHE), asked that the Commission approve the Joint Motion for Approval of Settlement Stipulation. Ms. Kristen Edwards, staff attorney, recommended that the Commission approve BHE’s request.
Commissioner Nelson moved to approve the Joint Motion for Approval of Settlement Stipulation. Motion carried 3-0.
3. EL19-007 In the Matter of the Application by Triple H Wind Project, LLC for a Permit of a Wind Energy Facility in Hyde County, South Dakota (Staff Analysts: Darren Kearney, Jon Thurber, Joseph Rezac; Staff Attorneys: Kristen Edwards, Amanda Reiss)
A lengthy discussion took place regarding docket EL19-007. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2019, May 28, 2019, recording located at: http://puc.sd.gov/commission/media/2019/puc05282019.mp3 .
Commissioner Nelson moved that if the Commission ultimately grants a permit for Triple H Wind, that the conditions included in the settlement stipulation be attached to the permit with the exception of proposed conditions 35 and 38. Motion carried 3-0.
4. EL19-018 In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of Its Plan to Provide Proceeds to Customers From a Settlement regarding the Outage at Sherco Unit 3 (Staff Analyst: Brittany Mehlhaff; Staff Attorney: Kristen Edwards)
Mr. Ryan Long, Northern States Power Company dba Xcel Energy (Xcel), asked that the Commission approve Xcel’s request to credit the settlement proceeds regarding the outage at Sherco Unit 3 in the form of a one-time bill credit combined with the ninth Department of Energy bill credit already scheduled for implementation in August 2019. Ms. Brittany Mehlhaff, staff analyst, recommended that the Commission approve Xcel Energy’s request.
Commissioner Hanson moved to approve Northern States Power Company’s request to credit the settlement proceeds regarding the outage at Sherco Unit 3 in the form of a one-time bill credit combined with the ninth Department of Energy bill credit already scheduled for implementation in August 2019.Motion carried 3-0.
5. EL19-021 In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Southeastern Electric Cooperative, Inc. and Northern States Power Company dba Xcel Energy (Staff Analyst: Lorena Reichert; Staff Attorney: Kristen Edwards)
A lengthy discussion took place regarding docket EL19-021. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2019, May 28, 2019, recording located at: http://puc.sd.gov/commission/media/2019/puc05282019.mp3.
Commissioner Nelson moved to defer the docket until the June 11, 2019 Commission meeting. Motion carried 3-0.
Gas and Electric
1. GE19-002 In the Matter of the Filing by MidAmerican Energy Company for the Approval of Its Reconciliation and Annual Report for 2018 and 2018 Reconciliation for the Energy Efficiency Cost Recovery Factor (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)
Ms. Katelyn Lynch-Butcher, MidAmerican Energy Company (MidAmerican), asked that the Commission approve the 2018 reconciliation amounts and the 2018 performance incentive and approve the changes to the Energy Efficiency Cost Recovery Factors and tariff sheets, with an effective date of May 31, 2019. Mr. Joseph Rezac, staff analyst, recommended that the Commission approve MidAmerican’s request as outlined in staff’s memo.
Commissioner Hanson moved to approve the 2018 reconciliation amounts and the 2018 performance incentive and approve the changes to the Energy Efficiency Cost Recovery Factors and tariff sheets as outlined by staff, with an effective date of May 31, 2019. Motion carried 3-0.
Natural Gas
1. NG19-004 In the Matter of the Filing by MidAmerican Energy Company for Approval of Its 2018 Economic Development Activities and 2019 Proposed Budget (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)
Mr. Sam Wagner, MidAmerican Energy Company (MidAmerican), asked that the Commission approve the 2018 Economic Development Activities and Proposed 2019 Budget. Mr. Joseph Rezac, staff analyst, recommended that the Commission approve MidAmerican’s request.
Commissioner Hanson approve MidAmerican Energy Company’s 2018 Economic Development Activities and 2019 Proposed Budget. Motion carried 3-0.
Telecommunications
1. TC19-007 In the Matter of the Application of Teliax, Inc. for a Certificate of Authority to Provide Local Exchange and Interexchange Long Distance Services in South Dakota (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)
Ms. Lorena Reichert, staff analyst, stated that staff does not object to Teliax’s, Inc.’s request to withdraw its Application without prejudice and close the docket.
Commissioner Nelson moved to grant Teliax’s request to withdraw its Application without prejudice and close the docket. Motion carried 3-0.
2. TC19-009 In the Matter of the Petition of North American Local, LLC for Designation as an Eligible Telecommunications Carrier in the State of South Dakota (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)
Mr. Gene DeJordy, Dakelyn Consulting, representing North American Local, LLC (North American), stated North American doesn’t object to South Dakota Telecommunications Association (SDTA) and Cheyenne River Sioux Tribe Telephone Authority (CRST Telephone) Petitions to Intervene. Ms. Margo Northrup, Riter, Rogers, Wattier & Northrup, LLP, representing SDTA and CRST Telephone, asked that the Commission approve SDTA and CRST Telephone’s Petitions to intervene.
Commissioner Fiegen moved to grant intervention to South Dakota Telecommunications Association and Cheyenne River Sioux Tribe Telephone Authority. Motion carried 3-0.
3. TC19-010 In the Matter of the Request of Farmers Mutual Telephone Company for Certification Regarding Its Use of Federal Universal Service Support (Study Area 361389) (Staff Analyst: Joseph Rezac; Commission Attorney: Adam de Hueck)
Mr. Kevin Beyer, Farmers Mutual Telephone Company, asked that the Commission grant the request for waiver and provide certification to the Federal Communications Commission and to the USAC regarding the proper use of federal universal service support. Mr. Joseph Rezac, staff analyst, recommended that the Commission grant Farmers Mutual Telephone Company’s request.
Commissioner Nelson moved to grant the waiver for a five year period and provide a certification to the Federal Communications Commission and to the Universal Service Administration Company regarding the use of Federal Universal Service Support. Motion carried 3-0.
There being no further business, at the hour of 3:15 p.m., the South Dakota Public Utilities Commission meeting adjourned.
/s/Joy Lashley .
Joy Lashley
Administrative Specialist
PUC Email
May 28, 2019
