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South Dakota Public Utilities Commission Meeting
May 2, 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, Joseph Rezac, Eric Paulson, Darren Kearney, Jon Thurber and Lorena Reichert; Consumer Affairs Manager: Deb Gregg; and Staff: Kaitlyn Baucom.

Present were:
Rich Coit, South Dakota Telecommunications Association; Margo Northrup, Riter, Rogers, Wattier & Northrup LLP, representing, South Dakota Telecommunications Association; Bob Mercer, KELO reporter; Brett Koenecke, May, Adam, Gerdes & Thompson LLP, representing Triple H Wind Project, LLC; Ryan Taylor, Cutler Law Firm, LLP, representing Communications Venture Corporation dba INdigital; Mark Grady and Jon Whirledge, Communications Venture Corporation dba INdigital; and Gary Warren, NGA 911, LLC.

Joining the meeting by telephone were:
Staff Attorney: Amanda Reiss; Pipeline Safety Manger: Mary Zanter; Eric Pauli, Northern States Power Company dba Xcel Energy; Pam Bonrud, Rick Edwards, Jeff Decker, Tony Flynn and Lori St. Aubin, NorthWestern Corporation dba NorthWestern Energy; Jason Topp and Mark Brinton, Qwest Corporation dba CenturyLink QC; Deb Prather, Communications Venture Corporation dba INdigital; Miles Schumacher, Lynn, Jackson, Shultz and Lebrun, PC, representing Crowned Ridge Wind, LLC; Renee White and Katelyn Lynch-Butcher, MidAmerican Energy Company; Brian Murphy, NextEra Energy Resources, LLC, representing Crowned Ridge Wind, LLC; Sam Bard and Paula Pileggi, Vesta Solutions, Inc.; Daniel Brooks, Wiley Rein LLP, representing Vesta Solutions, Inc.; Jason Keil, Todd Brink and Mutch Usera, Black Hills Power, Inc. dba Black Hills Energy; Pete Beithon and Cary Stephenson, Otter Tail Power Company; and Tamie Aberle and Travis Jacobson, Montana-Dakota Utilities Co., a Subsidiary of MDU Resources Group Inc.

(NOTE: For the purpose of continuity, these minutes are not necessarily in chronological order.)

Administration

1.     Approval of minutes of the Ad Hoc Commission meetings held on March 27 and April 23, 2019, and the Commission meeting held on April 2, 2019. (Staff: Joy Lashley)

     Commissioner Nelson moved to approve the minutes of the of the Ad Hoc Commission meetings held on March 27 and April 23, 2019, and the Commission meeting held on April 2, 2019. Motion carried 3-0.

Consumer Reports

1.     Status Report on Consumer Utility Inquiries (Consumer Affairs: Deb Gregg)

The Commission received a total of 113 contacts since the last report was prepared for the April 2, 2019, Commission meeting.

Twelve contacts were related to telecommunication services, 52 contacts were related to electrical services, three contacts were related to natural gas service, one contact was related to gas and electric service, nine contacts were related to wireless service, 16 contacts were related to the Do Not Call Registry, three contacts were related to Wind Energy, seven contacts were related to the Grain Warehouse Division, two contacts were related to One Call and eight contacts were related to issues not regulated by the PUC.

Contacts received in 2019: 447 of the 457 have been resolved.

Administration

1.     AA19-001     In the Matter of Clarification of the Commission’s ETC Certification Process (Staff Analyst: Lorena Reichert; Staff Attorney: Kristen Edwards)

A lengthy discussion took place for docket AA19-001. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2019, May 2, 2019, recording located at: https://puc.sd.gov/commission/media/2019/puc05022019.mp3.

     Commissioner Nelson moved that the ETCs shall submit information as required by ARSD 20:10:32:54 with the exception of ARSD 20:10:32:54 (8) and (9) which are waived, that the June 1 deadline in ARSD 20:10:32:52 is waived and ETCs shall file their annual certification petitions on or before July 1, 2019 and that Commission counsel is directed to initiate a rulemaking. Motion carried 3-0.

Electric

1.     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)

Ms. Kristen Edwards, staff attorney, asked that the Commission withdraw staff’s Motion for Adoption of Procedural Schedule. Mr. Brett Koenecke, May, Adam, Gerdes & Thompson LLP, representing Triple H Wind Project, LLC (Triple H), stated Triple H did not object to the request.

     Commissioner Fiegen moved to approve staff’s request to withdraw the Motion for Adoption of Procedural Schedule. Motion carried 3-0.

2.     EL19-010     In the Matter of the Filing by Montana-Dakota Utilities Co., a Subsidiary of MDU Resources Group Inc., for Approval of the Annual Update to Its Infrastructure Rider Rate (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)

Mr. Travis Jacobson, Montana-Dakota Utilities Co., a Subsidiary of MDU Resources Group Inc. (MDU), asked that the Commission approve the request to increase the Infrastructure Rider Rate tariff to $0.00583 per kWh and approve the associated tariff sheet with an effective date of May 2, 2019. Mr. Joseph Rezac, staff analyst, recommended that the Commission approve MDU’s request as outlined in the staff’s memo.

     Commissioner Hanson moved to approve the request to increase the Infrastructure Rider Rate tariff to $0.00583 per kWh and approve the associated tariff sheet with an effective date of May 2, 2019. Motion carried 3-0.

3.     EL19-011     In the Matter of the Application of Black Hills Power, Inc. dba Black Hills Energy for Approval of Its 2018 Economic Development Report and 2019 Economic Development Plan (Staff Analyst: Joseph Rezac; Staff Attorney: Kristen Edwards)

Mr. Jason Keil, Black Hills Power, Inc. dba Black Hills Energy (BHE), asked that the Commission approve Black Hills Energy’s 2018 Economic Development Report and its 2019 Economic Development Plan. Mr. Joseph Rezac, staff analyst, recommended that the Commission approve BHE’s request.

     Commissioner Nelson moved to approve Black Hills Energy’s 2018 Economic Development Report and its 2019 Economic Development Plan. Motion carried 3-0.

4.     EL19-013     In the Matter of the Filing of Northern States Power Company dba Xcel Energy for Approval of its 2018 Economic Development Activities and 2019 Budget (Staff Analyst: Patrick Steffensen; Staff Attorney: Amanda Reiss)

Mr. Eric Pauli, Northern States Power Company dba Xcel Energy (Xcel), asked that the Commission approve Xcel’s 2018 Economic Development Report and its 2019 Economic Development Budget. Ms. Kristen Edwards, staff attorney, recommended that the Commission approve Xcel’s request.

     Commissioner Fiegen moved to approve Xcel Energy’s 2018 Economic Development Report and its 2019 Economic Development Budget. Motion carried 3-0.

5.     EL19-014     In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of Revisions to Its Sample Forms and Associated Tariff Revisions (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)

Mr. Jeff Decker, NorthWestern Corporation dba NorthWestern Energy (NorthWestern), asked that the Commission approve NorthWestern’s tariff revisions with an effective date of May 2, 2019. Mr. Joseph Rezac, staff analyst, recommended that the Commission approve NorthWestern’s request.

     Commissioner Nelson moved to approve the proposed tariff revisions with an effective date of May 2, 2019. Motion carried 3-0.

6.     EL19-015     In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of Its 2019 Economic Development Plan and 2018 Economic Development Report (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

Mr. Rick Edwards, NorthWestern Corporation dba NorthWestern Energy (NorthWestern), asked that the Commission approve NorthWestern’s 2018 Economic Development Report and 2019 Economic Development Plan. Ms. Lorena Reichert, staff analyst, recommended that the Commission approve NorthWestern’s request.

     Commissioner Fiegen moved to approve NorthWestern Energy’s 2018 Economic Development Report and 2019 Economic Development Plan. Motion carried 3-0.

7.     EL19-016     In the Matter of the Application by Crowned Ridge Wind II, LLC for a Permit of a Wind Energy Facility in Deuel, Grant and Codington Counties (Staff Analysts: Darren Kearney, Jon Thurber, Eric Paulson; Staff Attorneys: Amanda Reiss, Kristen Edwards)

 A lengthy discussion took place for docket EL19-016. An audio of the discussion can be found on the PUC website under Commission Actions, Commission Meeting Archives, 2019, May 2, 2019, recording located at: https://puc.sd.gov/commission/media/2019/puc05022019.mp3.

     Commissioner Fiegen moved assess a filing fee not to exceed $412,500 with an initial deposit of $8,000 and authorize the executive director to enter into necessary consulting contracts. Motion carried 3-0.

     Commissioner Nelson moved to grant party status to those who have filed. Motion carried 3-0.

     Commissioner Nelson moved to grant staff’s motion to dismiss the petition of the intervenors. Motion carried 3-0. 

Gas and 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)

Ms. Brittany Mehlhaff, staff analyst, recommended that the Commission grant the joint request to adopt the settlement of the Tax Cuts and Jobs Act approved by the Commission in Docket EL18-021 and to close Docket GE17-003 with respect to Otter Tail Power.

     Commissioner Hanson moved to grant the Joint Request to adopt the settlement of the Tax Cuts and Jobs Act approved by the Commission in Docket EL18-021 and to close Docket GE17-003 with respect to Otter Tail Power. Motion carried 3-0.    

2.     GE19-001     In the Matter of the Filing by MidAmerican Energy Company for Approval of a Revised Customer Information Welcome Booklet (Staff Analyst: Eric Paulson; Staff Attorney: Amanda Reiss)

Ms. Katelyn Lynch-Butcher, MidAmerican Energy Company (MidAmerican), asked that the Commission approve the proposed revisions to MidAmerican’s Customer Information Welcome Booklet. Mr. Eric Paulson, staff analyst, recommended that the Commission approve MidAmerican’s request.

     Commissioner Nelson moved to approve the proposed revisions to MidAmerican’s Customer Information Welcome Booklet.Motion carried 3-0.

Natural Gas

1.     NG19-003     In the Matter of the Filing by NorthWestern Corporation dba NorthWestern Energy for Approval of Its 2019 Economic Development Plan and 2018 Economic Development Report (Staff Analyst: Lorena Reichert; Staff Attorney: Amanda Reiss)

Mr. Rick Edwards, NorthWestern Corporation dba NorthWestern Energy (NorthWestern), asked that the Commission approve NorthWestern Energy’s 2018 Economic Development Report and 2019 Economic Development Plan. Ms. Lorena Reichert, staff analyst, recommended that the Commission approve NorthWestern’s request.

     Commissioner Nelson moved to approve NorthWestern Energy’s 2018 Economic Development Report and 2019 Economic Development Plan. Motion carried 3-0.

Pipeline Safety

1.     PS19-001     Public Utilities Commission Staff’s Request for Adoption of PHMSA’s Exercise of Enforcement Discretion (Pipeline Safety Program Manager: Mary Zanter, Pipeline Safety Inspector: Boice Hillmer; Staff Attorney: Kristen Edwards)

Ms. Mary Zanter, PUC Pipeline Safety Manager, asked that the Commission make a ruling accepting the exercise of enforcement discretion regarding farm tap inspections under 49 CFR 192.740.

     Commissioner Hanson moved to make a ruling accepting the exercise of enforcement discretion regarding farm tap inspections under 49 CFR 192.740. Motion carried 3-0.

Telecommunications

1.     TC19-002     In the Matter of the Application of Vesta Solutions, 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)

Mr. Daniel Brooks, Vesta Solutions, Inc. (Vesta), asked that the Commission grant any waivers requested by Vesta and approve the joint stipulation and grant a certificate of authority to Vesta. Mr. Rich Coit, South Dakota Telecommunications Association (SDTA), stated SDTA had no objection. Ms. Lorena Reichert, staff analyst, recommended that the Commission grant Vesta’s request as described in staff’s memo.

     Commissioner Fiegen moved to grant any waivers requested by Vesta Solutions, Inc. and approve the Joint Stipulation and grant a Certificate of Authority to Vesta as provided in staff’s memo. Motion carried 3-0.

2.     TC19-003     In the Matter of the Application of NGA 911, LLC 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, recommended that the Commission approve NGA 911, LLC’s (NGA 911), waivers requested by NGA 911 and approve the joint stipulation and grant NGA 911 a certificate of authority as described in staff’s memo. Mr. Rich Coit, South Dakota Telecommunications Association (SDTA), stated SDTA had no objection.

     Commissioner Nelson moved to grant any waivers requested by NGA 911, LLC and approve the Joint Stipulation and grant a Certificate of Authority to NGA 911 as provided in staff’s memo. Motion carried 3-0.

3.     TC19-004     In the Matter of the Application of Communications Venture Corporation dba INdigital 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)

Mr. Ryan Taylor, Cutler Law Firm, LLP, representing Communications Venture Corporation dba INdigital (INdigital), asked that the Commission approve INdigital’s request to grant any waivers requested by INdigital and approve the joint stipulation and grant a certificate of authority to INdigital. Mr. Rich Coit, South Dakota Telecommunications Association (SDTA), stated SDTA had no objection. Ms. Lorena Reichert, staff analyst, recommended that the Commission approve INdigital’s request as described in staff’s memo.

      Commissioner Hanson moved to grant any waivers requested by INdigital and approve the Joint Stipulation and grant a Certificate of Authority to INdigital as provided in staff’s memo. Motion carried 3-0.

4.     TC19-006     In the Matter of the Filing by Qwest Corporation dba CenturyLink QC for Approval of Revisions to Its Access Service Tariff (Staff Analyst: Joseph Rezac; Staff Attorney: Amanda Reiss)

Mr. Mark Brinton, Qwest Corporation dba CenturyLink QC (CenturyLink), asked that the Commission for approve CenturyLink’s tariff revisions with an effective date of May 1, 2019. Mr. Joseph Rezac, staff analyst, recommended that the Commission approve CenturyLink’s request.

     Commissioner Hanson moved to approve the proposed tariff revisions with an effective date of May 1, 2019. Motion carried 3-0.

There being no further business, at the hour of 3:02 p.m., the South Dakota Public Utilities Commission meeting adjourned.

/s/Joy Lashley     .
Joy Lashley
Administrative Specialist
PUC Email
May 9, 2019