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South Dakota Public Utilities Commission Meeting
June 18, 2013, at 9:30 A.M. CDT
Room 413, Capitol Building
Pierre, South Dakota

NOTE: If you wish to join this meeting by conference call, please contact the Commission at 605-773-3201 by 5:00 p.m. CDT on Monday, June 17. Lines are limited and are given out on a first come, first served basis, subject to possible reassignment to accommodate persons who must appear in a proceeding. Ultimately, if you wish to participate in the Commission Meeting and a line is not available, you may have to appear in person.

NOTE: To listen to the Commission Meeting live please go to the PUC's website www.puc.sd.gov and click on the LIVE link on the home page. The Commission requests persons who will only be listening to proceedings and not actively appearing in a case listen via the web cast to free phone lines for those who have to appear. The Commission meetings are archived on the PUC's website under the Commission Actions tab, Click on "Commission Meeting Archives," to access the recordings.

NOTE: Notice is further given to persons with disabilities that this Commission meeting is being held in a physically accessible place. If you have special needs, please notify the Commission and we will make all necessary arrangements.

AGENDA OF COMMISSION MEETING

Administration

1.     Approval of the Minutes of the Commission Meetings Held on May 21, 2013, and June 4, 2013 (Staff: Joy Irving)

Consumer Reports

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

Electric

1.     EL12-061     In the Matter of the Application of Black Hills Power, Inc. for Authority to Increase its Electric Rates (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen; Staff Attorneys: Karen Cremer, Kristen Edwards)

On December 17, 2012, the Commission received an application by Black Hills Power, Inc. (BHP) for approval to increase rates for electric service to customers in its South Dakota service territory by approximately $13.7 million annually or approximately 9.94% based on BHP's test year ending June 30, 2012. The Company states a typical residential electric customer using 650 kWh per month would see an increase of $7.11 per month. The proposed changes may potentially affect approximately 65,000 customers in BHP's South Dakota service territory. On May 23, 2013, Black Hills Power filed a Joint Motion for Approval of Settlement Agreement Between Black Hills Power and South Dakota Science and Technology Authority, Settlement Agreement Between Black Hills Power and South Dakota Science and Technology Authority, Supplemental Motion for Approval of Settlement Agreement (SDSTA), Joint Motion for Approval of Settlement Agreement Between Black Hills Power and Menard, Inc. dba Midwest Manufacturing dba Dakota Panel, Settlement Agreement Between Black Hills Power and Menard, Inc. dba Midwest Manufacturing dba Dakota Panel, and Supplemental Motion for Approval of Settlement Agreement (Dakota Panel). 

     TODAY, shall the Commission grant, in whole or in part, the Joint Motion for Approval of Settlement Agreement Between Black Hills Power and South Dakota Science and Technology Authority? OR, shall the Commission grant, in whole or in part, the Supplemental Motion for Approval of Settlement Agreement (SDSTA)? AND, shall the Commission grant, in whole or in part, the Joint Motion for Approval of Settlement Agreement Between Black Hills Power and Menard, Inc. dba Midwest Manufacturing dba Dakota Panel? OR, shall the Commission grant, in whole or in part, the Supplemental Motion for Approval of Settlement Agreement (Dakota Panel)? OR, how shall the Commission proceed?

2.     EL12-062     In the Matter of the Application of Black Hills Power, Inc. for the Phase in of Rates Regarding Construction Financing Costs of Cheyenne Prairie Generating Station (Staff Analysts: Brittany Mehlhaff, Patrick Steffensen; Staff Attorneys: Karen Cremer, Kristen Edwards)

On December 17, 2012, the Commission received an application by Black Hills Power, Inc. (BHP) pursuant to SDCL 49-34A-73 for authority to implement a phase in rate increase for its South Dakota customers relating to the construction financing costs of Cheyenne Prairie Generating Station (CPGS). CPGS is a natural gas-fired power plant that will be constructed in Cheyenne, Wyoming, that will provide 55 MW of generation to BHP. The Company states a typical residential electric customer using an average of 650 kWh per month would see an increase of $0.88 per month for the first quarterly filing. Over the term of the phase in plan, the typical residential customer's bill will increase starting at around 1% and ending up at the completion of the phase in plan at approximately 4.5%. On May 23, 2013, Black Hills Power filed a Joint Motion for Approval of Settlement Agreement Between Black Hills Power and South Dakota Science and Technology Authority, Settlement Agreement Between Black Hills Power and South Dakota Science and Technology Authority, Supplemental Motion for Approval of Settlement Agreement (SDSTA), Joint Motion for Approval of Settlement Agreement Between Black Hills Power and Menard, Inc. dba Midwest Manufacturing dba Dakota Panel, Settlement Agreement Between Black Hills Power and Menard, Inc. dba Midwest Manufacturing dba Dakota Panel, and Supplemental Motion for Approval of Settlement Agreement (Dakota Panel). 
        
     TODAY, shall the Commission grant, in whole or in part, the Joint Motion for Approval of Settlement Agreement Between Black Hills Power and South Dakota Science and Technology Authority? OR, shall the Commission grant, in whole or in part, the Supplemental Motion for Approval of Settlement Agreement (SDSTA)? AND, shall the Commission grant, in whole or in part, the Joint Motion for Approval of Settlement Agreement Between Black Hills Power and Menard, Inc. dba Midwest Manufacturing dba Dakota Panel? OR, shall the Commission grant, in whole or in part, the Supplemental Motion for Approval of Settlement Agreement (Dakota Panel)? OR, how shall the Commission proceed?

3.     EL13-006     In the Matter of the Petition of Northern States Power Company dba Xcel Energy for Approval of its 2013 Transmission Cost Recovery Eligibility and Rate Adjustment (Staff Analyst: Brittany Mehlhaff; Staff Attorney: Karen Cremer)

On February 27, 2013, the Commission received a petition from Northern States Power Company dba Xcel Energy (Xcel) for approval of its 2013 Transmission Cost Recovery (TCR) Rider, Adjustment Factor, and Tracker Account report. For 2013, Xcel proposes to begin recovery of the South Dakota jurisdictional portion of the revenue requirements related to twenty-two transmission projects located throughout its service territory. Xcel proposes to recover $2.45 million associated with these projects for the 2013 calendar year. Included in the $2.45 million figure is the 2012 unrecovered balance of $227,462. The total of the transmission investment costs and the tracker balance results in an average bill impact of a $0.46 per month for a typical residential electric customer using 750 kWh per month. This is a decrease of $1.82 per month from the current TCR Rider recovery. The Company proposes to implement a rate of $0.000612 per kWh applied to all energy billed to each customer class beginning April 1, 2013, through December 2013. This represents a decrease of $0.002426 from the existing rate of $0.003038 per kWh. On June 10, 2013, Xcel filed a supplement to its 2013 TCR Petition requesting the Commission approve the TCR rate to be set at $0.00 for the remainder of 2013.

     TODAY, shall the Commission approve Xcel's request and the associated tariff sheet on less than 30 days' notice to set the TCR rate at $0.00 for the remainder of 2013?
        
4.      EL13-010        In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Cam-Wal Electric Cooperative, Inc., and Dakota Energy Cooperative, Inc. (Staff Analyst: Matthew Tysdal; Staff Attorney: Kristen Edwards)

On April 30, 2013, Commission Staff filed an Electric Service Territory Boundary Agreement between Cam-Wal Electric Cooperative, Inc. and Dakota Energy Cooperative, Inc. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission Staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission Staff asks for approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

     TODAY, shall the Commission approve the proposed electric service territory boundary agreement?

5.      EL13-011        In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Cam-Wal Electric Cooperative, Inc., and FEM Electric Association, Inc. (Staff Analyst: Matthew Tysdal; Staff Attorney: Kristen Edwards)

On April 30, 2013, Commission Staff filed an Electric Service Territory Boundary Agreement between Cam-Wal Electric Cooperative, Inc. and FEM Electric Association, Inc. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission Staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission Staff asks for approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

     TODAY, shall the Commission approve the proposed electric service territory boundary agreement?

6.     EL13-012     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Cam-Wal Electric Cooperative, Inc., and Oahe Electric Cooperative, Inc. (Staff Analyst: Matthew Tysdal; Staff Attorney: Kristen Edwards)

On April 30, 2013, Commission Staff filed an Electric Service Territory Boundary Agreement between Cam-Wal Electric Cooperative, Inc. and Oahe Electric Cooperative, Inc. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission Staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission Staff asks for approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

     TODAY, shall the Commission approve the proposed electric service territory boundary agreement?

7.     EL13-013     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between FEM Electric Association, Inc., and Dakota Energy Cooperative, Inc. (Staff Analyst: Matthew Tysdal; Staff Attorney: Kristen Edwards)

On April 30, 2013, Commission Staff filed an Electric Service Territory Boundary Agreement between FEM Electric Association, Inc. and Dakota Energy Cooperative, Inc. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission Staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission Staff asks for approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

     TODAY, shall the Commission approve the proposed electric service territory boundary agreement?

8.      EL13-014        In the Matter of the Filing by Otter Tail Power Company for Approval of Revised Customer Information Booklet (Staff Analyst: Deb Gregg; Staff Attorney: Kristen Edwards)

On April 30, 2013, the Commission received a request from Otter Tail Power Company (Otter Tail) for approval of its updated Customer Information Brochure, pursuant to ARSD 20:10:16:02. On June 3, 2013, Otter Tail filed a revised brochure.
        
     TODAY, shall the Commission grant approval of Otter Tail Power Company's revised customer information booklet?

9.     EL13-015     In the Matter of the Filing by Otter Tail Power Company Regarding Its 2012 Report and 2013 Energy Efficiency Plan Update (Staff Analysts: Brian Rounds, Darren Kearney; Staff Attorney: Karen Cremer)

On May 1, 2013, Otter Tail Power Company (Otter Tail) filed its 2012 Energy Efficiency Plan (EEP) results. With the report, Otter Tail requested approval of the calculation of their 2012 financial incentive as well as an increase in the Energy Efficiency Adjustment Rider. Otter Tail requested an effective date of July 1, 2013. On June 4, 2013, Otter Tail filed its responses to staff data requests.

     TODAY, shall the commission approve Otter Tail's 2012 Energy Efficiency Plan Status Report? AND, shall the commission approve the proposed 2013 Energy Efficiency Plan Update and accompanying revised tariff sheet?

10.     EL13-018     In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Dakota Energy Cooperative, Inc. and Oahe Electric Cooperative, Inc. (Staff Analyst: Matthew Tysdal; Staff Attorney: Kristen Edwards)

On May 2, 2013, Commission Staff filed an Electric Service Territory Boundary Agreement between Dakota Energy Cooperative, Inc. and Oahe Electric Cooperative, Inc. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission Staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission Staff asks for approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

     TODAY, shall the Commission approve the proposed electric service territory boundary agreement?

11.    EL13-019        In the Matter of the Request for Approval of an Electric Service Territory Boundary Agreement between Oahe Electric Cooperative, Inc. and NorthWestern Corporation dba NorthWestern Energy (Staff Analyst: Matthew Tysdal; Staff Attorney: Kristen Edwards)

On May 16, 2013, Commission Staff filed an Electric Service Territory Boundary Agreement between Oahe Electric Cooperative, Inc. and NorthWestern Corporation dba NorthWestern Energy. This filing is made pursuant to current efforts of the PUC to verify electric territory mapping data for conversion to electronic format and use in a Geographic Information System (GIS) database. With the assistance of the above-referenced utilities, Commission Staff has confirmed the service territory boundary shared by these utilities and has prepared updated mapping information. Commission Staff asks for approval of the agreement to update official mapping data to properly reflect the service territory boundaries shared by the utilities in this docket.

     TODAY, shall the Commission approve the proposed electric service territory boundary agreement?

Telecommunications

1.     TC01-098     In the Matter of Determining Prices for Unbundled Network Elements (UNEs) in Qwest Corporation's Statement of Generally Available Terms (SGAT). (Staff Attorney: Karen Cremer)

On July 27, 2001, Qwest Corporation (Qwest) filed a petition for the purpose of determining Qwest's forward looking costs to be used in setting the prices for the elements and services contained in Qwest's Statement of Generally Available Terms (SGAT). Qwest is not generally seeking changes to those prices already established by this Commission in the AT&T Arbitration (TC96-184). Qwest recommends that this Commission declare those previously established prices to be Qwest's permanent TELRIC-based wholesale prices. For those services that were not addressed in previous pricing decisions of this Commission, Qwest offers its cost studies and supporting materials in support of the prices depicted in its filing. On May 8, 2006, Qwest filed a letter stating its intent to withdraw the cost docket. On May 29, 2013, an executed Stipulation of Dismissal was filed.
        
     TODAY, shall the Commission approve the Stipulation of Dismissal?

2.     TC13-024     In the Matter of the Filing by Zayo Group, LLC  for Approval of its Access Services Tariff No. 1 (Staff Analyst: Darren Kearney; Staff Attorney: Kristen Edwards)

On March 7, 2013, the Commission received a petition by Zayo Group, LLC (Zayo) for approval of its Initial Switched Access Services Tariff. Zayo also seeks waiver of ARSD 20:10:29:10, 20:10:29:12, and 20:10:29:16 in order for Zayo to mirror its terminating intrastate access rates with its terminating interstate access rates pursuant to the Federal Communications Commission's Report and Order and Further Notice of Proposed Rulemaking, in Docket Nos. WC Docket No. 10-90, et al., FCC 11-161.

     TODAY, shall the Commission approve the Access Services Tariff? AND shall the Commission grant the waivers as requested?

3.     TC13-026     In the Matter of Study Area Boundaries for Incumbent Local Exchange Carriers (Commission Attorney: Rolayne Wiest)

In orders released by the Federal Communications Commission's (FCC's) Wireline Competition Bureau, the FCC has added data specifications for the collection of study area boundary data to be used as part of the implementation of certain universal service reforms adopted by the FCC. In its most recent order on this issue, the FCC has concluded that state commissions may certify to the accuracy of study area boundary data and submit it on behalf of incumbent local exchange carriers operating in their states. At its March 26, 2013, meeting, the Commission considered how to proceed regarding the issue of whether the Commission should submit and certify the study area boundary data. The Commission unanimously voted to open a docket to consider these issues and set April 3, 2013, as the deadline for written comments. The Commission further found that it would make its decision at its April 9, 2013, meeting. At its April 9, 2013, meeting, the Commission unanimously voted to provide certification of study area boundary data to the FCC. On June 7, 2013, Commission Staff filed a letter stating that the parties had managed to informally resolve all but three unserved areas. These unserved areas were detailed in Staff's Appendix A. Staff also submitted a zip file containing the shapefiles of all of the exchanges within the state.

     TODAY, shall the Commission certify the maps submitted by Staff? AND, how shall the Commission proceed with respect to unserved areas?

        
4.     TC13-034     In the Matter of the Application of Consolidated Telecom, Inc. d/b/a Secured Technologies, Inc. for a Certificate of Authority to Provide Interexchange Long Distance Services as an Alternative Operator Service (Staff Analyst: Darren Kearney; Staff Attorney: Kristen Edwards)

On April 16, 2013, Consolidated Telecom Inc., d/b/a Secured Technologies Inc., (Consolidated) filed an application for a certificate of authority to provide interexchange services in South Dakota for the purpose of providing Alternative Operator Services.  Consolidated intends to provide automated, operator assisted calling services to inmates of correctional institutions and other confinement facilities throughout the State of South Dakota.  Due to the unique nature of providing Alternate Operator Services to inmates, Consolidated also requests a waiver of ARSD 20:10:24:05 (3), (5), (6), and the last paragraph of ARSD 20:10:24:05.  

     TODAY, shall the Commission grant a Certificate of Authority to Consolidated Telecom, Inc. d/b/a Secured Technologies, Inc.? AND shall the Commission grant the waivers as requested?

Items for Commission Discussion

Announcements

  1. The next regularly scheduled commission meeting will be Tuesday, July 2, 2013, at 9:30 a.m. CDT in Room 413 at the State Capitol Building, Pierre, S.D.

  2. Commissioners and staff will meet with representatives of Xcel Energy on Tuesday, July 2, 2013, at 1 p.m. CDT in Room 413 at the State Capitol Building, Pierre, S.D. The agenda is to discuss updates about the underground fire on Xcel's facilities in Sioux Falls, S.D., on Jan. 25, 2013, and the company's Sherburne County Generating Station.

  3. The PUC offices will be closed Thursday, July 4, 2013, in observance of Independence Day.

  4. Commission meetings are scheduled for July 11 and 30, 2013.

/S/Cindy Kemnitz
Cindy Kemnitz
Finance Manager
puc@state.sd.us
June 11, 2013