PUBLIC UTILITIES COMMISSION
2007 Leadership: Dusty Johnson, Chairman; Gary Hanson, Vice Chairman;
Steve Kolbeck, Commissioner
2007 Highlights
The activities and accomplishments of the South Dakota Public Utilities Commission in 2007 are varied and numerous. Energy efficiency was a theme repeated in classrooms, on television and Web sites. Rate cases were negotiated with fair outcomes for consumers and the utility companies. The courts affirmed PUC decisions in two cases. Expansion of the state’s wireless network continued with new cell towers improving service in rural areas and larger communities. Wind energy development gained momentum with new wind farms and transmission lines being permitted. Local leaders and average citizens gained a greater understanding of wireless communications and wind energy and the impact each has on our state’s economy and future. And, a crude oil pipeline proposal resulted in 21 hours of public hearings, thousands of pages of comments, testimony and evidence. Read more about the PUC’s highlights of 2007.
Energy Efficiency
Pipeline Siting and Inspection
Warehouse
Electric and Natural Gas
Telecommunications
Legislation
Consumer Assistance
Wireless
Wind Energy
Leadership
- Launched South Dakota Energy Smart, a statewide initiative that recognizes and promotes energy efficiency. The state’s 10 energy providers signed a pledge of commitment, agreeing to support the initiative’s objectives. Hosted energy audit workshops and school presentations as part of launch. A comprehensive awareness campaign, jointly funded by all partners, includes a Web site, SDEnerySmart.com, promotional magnet listing 15 energy-saving tips and a television spot encouraging homeowners to seal air leaks.
- Encouraged South Dakotans to join the national Change-A-Light campaign and pledge to change at least one bulb in their home to an energy-saving compact fluorescent light. Exceeded 2006-2007 pledge goal by 100 percent.
- Conducted public education and outreach on energy efficiency through visits to 18 schools in Mitchell, Rapid City, Sioux Falls, Freeman, Yankton, Tea, Baltic, Dell Rapids, Parker and Pierre; presentations at the Sioux Empire and Brown County fairs; and workshops for homebuilders and service contractors in Yankton, Rapid City, Watertown, Pierre, Sioux Falls and Fort Thompson. The PUC also partnered with the South Dakota Energy Safety Association for a springtime awareness campaign to promote the use of energy-saving compact fluorescent light bulbs.
PIPELINE SITING AND INSPECTION
- Held approximately 21 hours of public input hearings in Yankton, Alexandria, Clark, Britton and Pierre on the proposed TransCanada Keystone Pipeline project. Held a seven-day formal hearing in Pierre to hear evidence on the application filed with the commission in April 2007.
- Opened a formal investigation into a natural gas explosion which occurred in a residential neighborhood in Mitchell on a distribution pipeline owned and operated by NorthWestern Energy.
- Appointed and worked with the Warehouse Review Committee, which recommended a number of updates to statutes related to grain dealers and grain warehouses.
- Issued more than 250 warehouse and grain dealer licenses and performed more than 300 grain warehouse and grain dealer inspections. The PUC also performed more than 60 check-off audits for the various grain commissions and councils.
- Received affirmation from the South Dakota 6th Circuit Court for the PUC’s decision to allow for the construction of the Big Stone II power plant near Milbank.
- Conducted an extensive fact finding, including written comments and two workshops, to implement the Public Utility Regulatory Policies Act provisions of the Energy Policy Act of 2005. The review, in particular, examined the process of interconnection for small generation facilities such as small wind facilities or biomass facilities to regulated utilities in South Dakota. The Commission received filings from each regulated utility outlining their small generator interconnection procedures and agreement terms.
- Granted a permit to Basin Electric Power Cooperative to construct a second natural-gas fired peaking generator near Groton.
- Received affirmation from the South Dakota Supreme Court that the Commission had properly ruled to deny a petition by Montana-Dakota Utilities to provide electrical service for the new North Central Farmers Elevator to be located near Bowdle.
- Approved a settlement agreement negotiated by PUC staff with NorthWestern Energy for the company’s natural gas rate increase request. Final settlement will result in an increase of about 5.8 percent for average residential customers; company sought a raise of approximately 7.2 percent for the average residential customer. NorthWestern agreed to a three-year rate moratorium and to refund insurance revenues the company received for the clean up of the Huron manufactured gas plant for which NorthWestern’s natural gas customers had previously paid.
- Authorized Black Hills Power to provide electrical service on business incentive terms to the South Dakota Science and Technology Authority for the development and start-up of the Homestake Underground Laboratory Complex.
- Approved Xcel Energy’s avoided cost calculation for cogeneration rates which allowed for a significant increase in the rates small generators will be eligible to receive for supplying power to the Xcel Energy system.
- Distributed more than $196,000 to customers of S&S Communications to partially offset their losses from S&S’s insolvency and cessation of operations. The commission previously obtained $354,000 in customer loss offsets in the form of loan and lease forgivenesses from three lending institutions that had loaned money against pre-paid service contracts. Since 2003, the PUC’s aggressive action in this case on behalf of consumers has included pursuing bond payments, negotiating loan forgiveness, imposing fines on S&S Communications, prohibiting the company from offering prepaid services, and revoking their certificate of authority.
- Granted certificates of authority to Hawk Relay LLC and CSDVRS LLC to enable them to receive direct reimbursement from the Interstate TRS Fund for providing IP-based relay services for the deaf. The commission also granted certificates of authority to 13 other telecommunication providers.
- Concluded the implementation of the 811 dialing code for contacting South Dakota One Call, allowing South Dakotans to “call before they dig” by dialing 811 from any phone within the state.
- Successfully supported the passage of a law that removes discrepancies related to sales of a public utility and its major assets. The legislation provides more equal protection to South Dakota customers of affected utilities and was prepared by the PUC and the state’s investor-owned utilities, rural electric cooperatives and municipal utilities.
- Drafted and secured passage of legislation to revise statute to ensure South Dakota ratepayers will not face excessive utility rate increases to pay for regulatory mandates imposed in another state.
- Developed and successfully worked to pass a bill that prohibits telecommunications companies from filing tariffs for services that are considered to be competitive. Legislation safeguards consumers by allowing them to obtain information regarding telecommunications services and to be informed in advance of materially adverse changes to these services.
- Drafted and secured passage of other pieces of legislation, including those that clarified when an environmental impact statement can be required for energy conversion facilities, updated statutes related to the pipeline safety program, and made South Dakota’s Do Not Call laws more consistent with the FCC’s and FTC’s rules.
- Assisted consumers at the Sioux Empire, Brown County and State fairs with enrolling more than 330 telephone numbers on the national Do Not Call Registry and assisted dozens more who directly contacted the PUC through other methods. The amount of South Dakota telephone numbers on the DNC Registry grew to 383,475 – a 9 percent increase compared to the previous year.
- Levied a $150,000 civil fine against eChurch Network for billing telephone customers, primarily small businesses, for services they had not ordered and did not receive.
- Assisted more than 2,300 South Dakota consumers with complaints during 2007.
- Assisted at the state’s Emergency Operations Center following May flooding in the James River Valley.
- Lead presentations at seminars for AARP members in Aberdeen, Rapid City and Sioux Falls and at a senior resource fair in Pierre. Discussed the Do Not Call Registry, energy efficiency and other consumer issues.
- Hosted “Connecting South Dakota: Wireless Technology,” a self-funded conference that drew more than 220 attendees. National, regional and local wireless telecommunications experts addressed the use of current and emerging wireless technologies in practical applications such as public safety, business development and rural connectivity.
- Received petitions from residents of Elkton, Wagner, Hill City, Hisega, Newell, Veblen, Eden, Lake City, Britton, Florence, Pierpont, Leola, Pukwana and Langford calling for improved wireless service in and around their communities. Petitions contained a combined 4,536 signatures. This effort, plus support from commissioners and staff, resulted in new towers going online in Wagner and Elkton this year. Petitions are forwarded to wireless companies.
- Established a South Dakota Tower Work Group to gather and share information about wireless communication and wind towers in the state. The resource assists local zoning groups as they review or develop tower-related zoning ordinances and guidelines. Work Group members include representatives of the PUC, wind energy and wireless communications industries, and agencies with input on land use.
- Held meetings in Irene and Florence with community and county leaders and area residents to discuss the need to improve wireless service.
- Continued advancement of the PUC Wireless Initiative by coordinating with wireless providers and community leaders for the construction of 71 new cell sites in and around Lennox, Colton, Brandon, Sioux Falls, Bryant, Howes, Onida, Wanblee, Lead, Custer, Ellsworth Air Force Base, Huron, Wagner, Eureka, Faith, Lemmon, Dakota Dunes, Spearfish, Selby, Alcester, Gary, Peoria Flats, Hitchcock, Mellette, Utica, Wolsey, Piedmont, Centerville, Parkston, Elkton, Mitchell, South Shore, Big Stone Lake, Freeman, Garretson, Scotland, Vermillion, Viborg, Rapid City, Highmore, Lake Kampeska, Scotland, Wessington Springs, Brookings, Crooks, Doland, Groton, Ipswich, Lyons, Mayfield, Mud Butte, Sisseton, Toronto, Tripp, Watertown, Willow Lake and Worthing.
- Initiated discussions with wireless companies and the FCC to address the anticipated discontinuation of analog service. Requested assurances from companies that South Dakota customers would continue to receive adequate service after the transition.
- Put into effect, along with regional counterparts, the Midwest Regional Energy Tracking System. M-RETS tracks the trade and sale of renewable energy credits. The system’s first certificates were created in the summer of 2007.
- Hosted “Wind Energy & Transmission: The South Dakota Landscape” conference as a partner with the National Wind Coordinating Collaborative and other entities. Around 200 people turned out to hear presentations and exchange ideas with wind energy experts and policymakers.
- Commissioner Gary Hanson presented a resolution to the National Association of Regulatory Utility Commissioners that urged Congress to approve a long-term production tax credit to boost renewable energy production. NARUC passed the resolution.
- Granted a permit to White Wind Farm LLC to construct a wind farm in Brookings County with a rated output of up to 200 MW.
- Was selected by the National Renewable Energy Laboratory to facilitate the Wind for Schools, a program to engage students and teachers in wind energy education and introduce wind energy, on a small scale, to rural communities. Announced the program to South Dakota school districts. South Dakota was one of five states selected to participate in the Wind for School program in 2007.
- Held community meetings about wind energy development in Miller, Toronto and near Rosebud. Developers gave presentations about proposed and existing projects; commissioners and staff addressed topics such as state efforts, transmission issues, and future potential and obstacles. Also participated in panel discussion about wind energy at Dakotafest in Mitchell.
- Granted a permit to Xcel Energy to construct a 345 kV transmission line from the Splitrock substation near Brandon to the Minnesota border. This transmission line will provide capacity to carry additional wind energy from the Buffalo Ridge region, which includes east central South Dakota, to the Twin Cities area and will also provide additional capacity in and out of Sioux Falls.
- Commissioner Steve Kolbeck was appointed to the National Association of Regulatory Utility Commissioners’ Telecommunications Committee.
- Commissioner Steve Kolbeck was appointed secretary of the Mid-America Regulatory Conference.
- Commissioner Gary Hanson was elected treasurer of the Organization of MISO States.
- Commissioner Dusty Johnson and Commission Counsel Rolayne Wiest participated as members of the South Dakota Government Openness Task Force, which produced legislation designed to create greater openness in state government.
