Press Release: South Dakota PUC handled two rate increase requests from MidAmerican Energy

South Dakota PUC handled two rate increase requests from MidAmerican Energy

Company’s first electric rate increase in two decades approved; natural gas rates to rise after 11 years

 

PIERRE, S.D. – MidAmerican Energy Co. received the OK today from the South Dakota Public Utilities Commission to implement rate increases for natural gas and electric customers. The company’s last electric rate increase request was approved in 1995; the most recent natural gas hike occurred in 2004.

 

In separate decisions affecting both types of MidAmerican Energy customers–natural gas and electric–the PUC accepted settlement agreements offered by the company and PUC staff that detailed lower-than-requested rate increases. The decisions made by Commissioners Chris Nelson, Kristie Fiegen and Gary Hanson took place at an ad hoc meeting of the PUC held June 16 in Pierre.

 

MidAmerican’s 88,000 natural gas customers in South Dakota will see a bump on their bill beginning July 1, 2015. On average, customers’ distribution delivery rates will increase by about 5.67 percent; the company’s request was 10.7 percent. 

 

Improvements in pipe, including retiring all vintage cast iron gas pipe systems and replacing older steel and plastic pipes, were key factors in the company’s request for additional revenue. Other investment in facilities and equipment, and inflation also played a part.

 

MidAmerican’s electric customers will experience a rate change via a two-step process. Effective July 13, 2015, rates will be implemented resulting in an average increase of 5.66 percent. However, customers will see a reduction on their bills associated with the costs related to a generation project and a transmission project that will be placed into service later this year. This reduction will be effective from July 13 until the time both projects are in service no later than Dec. 31, 2015. MidAmerican and PUC staff explained in documents filed with the commission that such a plan serves the best interest of rate payers by eliminating the need for the company to apply for another, immediate rate increase.

 

“The fact that you have not been here asking for a rate increase in the last 20 years is commendable,” PUC Chairman Nelson told MidAmerican Energy officials at the meeting. “The company and staff seemed to have resolved issues very well. It is obvious you are making some smart business decisions that are beneficial to ratepayers financially and good for the company,” he commented.

 

“I appreciate the unique two-step approach taken with the electric rate request,” Vice Chairman Fiegen said. “It saves the customer money and saves the company and staff time. Electric rates are increasing across the nation. I appreciate the efforts to keep this increase as low as possible,” she concluded.

 

In the request filed with the PUC in August 2014, MidAmerican Energy asked to increase electric rates to raise approximately $1.6 million in additional annual revenues, or approximately 13.8 percent, from its 4,500 electric customers in South Dakota. The PUC’s decision on the final rate increase allows for annual additional revenue of $648,471, or approximately 5.66 percent. During the time the reduction is in effect, the allowed rate increase is only $293,903. 

 

Prior to Tuesday’s vote, MidAmerican representatives and PUC staff members fielded questions from commissioners ranging from the cost and benefit of the company building new wind energy facilities to the content of customer notices explaining the rate changes.

 

Commission Hanson noted the voluminous amount of data that was shared by the company and analyzed by the PUC staff for both cases. “It is phenomenal to consider the reams and reams of information that have been pored over to get us to this decision today,” he stated. “I am appreciative and impressed with the diligence of the PUC staff and the civility of the company throughout the process. It’s good to know we have good folks working in the utility business,” Hanson said.

 

MidAmerican implemented interim natural gas and electric rates on Feb. 1, 2015. Because the approved rate increases are lower than the interim rates, the company will credit the difference plus interest to customers on bills no later than Sept. 1, 2015. Interim rates are allowed by state law. The PUC approved the interim rate refund plans.

 

The company agreed to not ask the commission for permission to raise natural gas or electric base rates before February 2018.

 

The PUC’s rate increase process for both MidAmerican Energy dockets included an extensive analysis of the requests by a staff team comprised of an attorney and four utility analysts, assisted by rate consultants. Both requests were scrutinized by the PUC staff with individual elements negotiated with MidAmerican representatives until reaching resolutions described in the settlement agreements.

 

The full MidAmerican Energy rate increase request dockets can be viewed on the PUC’s website at www.puc.sd.gov, Commission Actions, Electric Dockets, 2014 Electric Dockets, EL14-072 – In the Matter of the Application of MidAmerican Energy Company for Authority to Increase its Electric Rates; and Natural Gas Dockets, 2014 Natural Gas Dockets, NG14-005 – In the Matter of the Application of MidAmerican Energy Company for Authority to Increase its Natural Gas Rates.

 

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Prince in town for President. A couple hundred feet away…

A Just caught this…

Prince performed some of his greatest hits at a weekend White House party for President Barack Obama and his wife, Michelle.

But although guests put details on social media, White House spokesman Josh Earnest is refusing to confirm the “Purple Rain” singer’s attendance.

And…

Prince performed in town Saturday at the Warner Theater.

No wonder everyone was so dressed up! I was thinking there was a higher standard for concertgoer attire for a minute.

I should have taken a picture of the marquee – I walked right by it Sunday night as my wife and I were looking for a place for dinner and the freaking line was our the door and around the block. 

Prince was certainly there, as I don’t think it was for an early showing of dancing with the stars.

Xcel Energy rate increase approved by PUC

Xcel Energy rate increase approved by PUC

PIERRE, S.D. – The South Dakota Public Utilities Commission today voted to allow Xcel Energy to raise its electric rates at a rate of less than half of what the company had requested. The average customer in Xcel’s South Dakota territory is expected to experience a 4 percent increase in electric rates beginning July 1, 2015. Xcel’s original request asked for an increase of 8 percent.

The PUC issued its decision at an ad hoc meeting June 15 in Pierre, where it accepted a joint settlement agreement presented by Xcel Energy and PUC staff. The agreement outlined a recommendation that the company be allowed to increase base rates and implement an infrastructure rider to raise approximately $7.795 million in additional annual revenues. In its June 2014 application, the company sought additional revenues of $15.6 million annually.

Xcel representatives have stated that investments to the company’s generation, transmission and distribution facilities and property taxes are among the drivers of the rate increase request.

The commission agreed to allow the company to continue utilizing the infrastructure rider, a mechanism to recover specific costs related to investment in infrastructure. The company must submit a request to the commission for annual review and approval of the rider for rates effective in 2016 and 2017. Xcel Energy also agreed to hold off on any future base rate increase until 2018, which would require commission approval before implementation.

“I have spent a great deal of time contemplating my decision in this case,” said PUC Chairman Chris Nelson. “There are intricacies and complexities that make up this comprehensive request from Xcel Energy such as safety and power upgrades to nuclear facilities, new generation sources, and costs incurred as a result of federal mandates. In the end, I agree that the deal negotiated by PUC staff and the company is fair for both customers and the company,” he concluded.

“The final question that needs to be answered in any rate increase request is, does this increase allow for the production of reliable and safe electricity to the consumer at an affordable rate?” PUC Vice Chairperson Kristie Fiegen said. “After thoroughly studying the case, reading and hearing testimony from PUC staff, consultants and Xcel Energy representatives, I am confident the answer is yes and the decision made today is the right one,” she continued.

“I am appreciative of the negotiations between Xcel and the PUC staff,” Commissioner Gary Hanson stated. “It is clear that the extensive research, discussions and give-and-take involving both entities were conducted professionally and with the goal of keeping the financial impact on consumers as low as possible.”

As allowed by state law, Xcel Energy implemented an interim rate increase on Jan. 1, 2015, reflective of its initial rate increase request. The company will refund to customers the difference between the interim rate and the final approved rate, with interest, during a monthly billing cycle beginning no later than Aug. 1, 2015.

Xcel Energy has approximately 85,000 customers in its South Dakota service territory.

The full Xcel Energy rate increase request docket may be viewed on the PUC’s website at www.puc.sd.gov, Commission Actions, Electric Dockets, 2014 Electric Dockets, EL14-058 – In the Matter of the Application of Northern States Power Company dba Xcel Energy for Authority to Increase its Electric Rates.

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Rounds featured in story on his opposition to how the EPA is writing regulations

From the Argus/USA Today, Republican US Senator Mike Rounds is featured for his aggressive stance against how Obama’s EPA is doing business:

Rounds has not wavered in his stance that White House agencies and departments are given too much freedom to set rules and that lawmakers are unable to sufficiently check to ensure final regulations match what Congress intends. Much of his concern has centered on a rule from the EPA known as the Waters of the United States that farmers and ranchers fear would give the agency more regulatory power that could infringe on their land rights and saddle them with higher costs. The White House and EPA officials have said those concerns are unfounded.

Farm groups have not said not say whether they would sue the EPA to block the water rule, but those who have followed the issue have long predicted a lawsuit. A legal challenge would be the latest for the EPA.

A three-judge panel of the U.S. Court of Appeals for the D.C. Circuit ruled last Tuesday that 15 states cannot challenge the EPA’s greenhouse gas rules for power plants before the rules are finalized. And in the coming weeks, the Supreme Court is expected to rule on a challenge to the EPA’s rules restricting toxic emissions from power plants. Opponents have said the EPA didn’t take into account industry costs — estimated by the agency at $9.6 billion annually — in writing the new regulations.

Read it all here.

Horror short right before Jurassic World in Sioux Falls

From a reader:

Hi Pat,
I’m an avid reader of your blog, and have posted a time or two.

I was taking in the new Jurassic World today with my son and was absolutely floored when a commercial for Annette (no last name needed) came on the screen. Had to be about 60 seconds long and was mostly about her “groundbreaking” work treating people with depression.

Thought you’d get a kick out it.

  
I know it’s a really, really bad thing to film the movie, but is it illegal to record the commercials in movie theaters? I wouldn’t want to get anyone in trouble. But I’d love to see all of it.  

And find out if a disclaimer has been added about her services being “a limited time offer.”

US Senator John Thune’s Weekly Column: Putting Our Troops Ahead of Politics

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Putting Our Troops Ahead of Politics
By Senator John Thune

John_Thune,_official_portrait,_111th_CongressLast fall, Senate Republicans promised that if we were elected to the majority, we would get the Senate working again for the American people. Getting the Senate working again was not a campaign slogan – it was a commitment.

For years under Democrat leadership in the Senate, basic legislative functions went overlooked. Waiting until the last minute to pass important bills became the norm, and casting political show votes rather than striking bipartisan agreements was a sad reality.

But times are changing, and there’s new leadership in the Senate. In just the first few months of the 114th Congress, the Senate has passed one bipartisan bill after another. We’ve already allowed more roll call votes on senators’ individual priorities in the past five months than Democrats allowed in all of 2014. Last month, the Senate passed a budget – that balances – and now we’re working toward funding our nation’s heroes.

Before any money can be appropriated, though, Congress must first authorize the federal government to spend it. For more than 50 years, the National Defense Authorization Act, which the Senate is now considering, has passed with strong bipartisan support. This year’s defense bill authorizes funding for our troops at the level requested by the president and provides key reforms that will strengthen our nation’s defense and improve training, benefits, and quality of life for our service members. It’s a strong, common-sense bill, and supporting it should be a no-brainer.

Unfortunately, Democrats are threatening to derail this year’s bill and its long track record of bipartisanship over demands to spend more federal money on nondefense programs. Incredibly, the president has gone as far as saying that he would veto this vital piece of legislation. That’s right: Democrats are prepared to block a bill that authorizes funding for our troops unless Republicans agree to hike federal spending on agencies like the IRS and EPA.

This bill is too important to get caught up in politics, and I hope my Democrat colleagues come to that realization, too. I’ll continue to fight for our men and women in uniform and send a clear message to the president that prioritizing politics at the expense of our preparedness and our active-duty military is not acceptable.

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US Senator Mike Rounds’ Weekly Column: Protecting our Troops by Reauthorizing NDAA

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Protecting our Troops by Reauthorizing NDAA
By Senator Mike Rounds
June 12, 2015

MikeRounds official SenateDuring the eight years I worked as governor of South Dakota, I had the honor of serving as the commander-in-chief of South Dakota’s National Guard forces. My first term began in 2003, right at the start of the war in Iraq. I attended ceremonies for our military men and women as they deployed to active duty and welcomed them home upon their return. I ask that everyone continue to remember the families of those who made the ultimate sacrifice and did not return home. These brave men and women and their families sacrifice everything to protect America and the freedoms bestowed to us. We owe it to them to give our full support of their efforts.

As a member of the Senate Armed Services Committee, I joined an overwhelming majority of my colleagues to pass the National Defense Authorization Act (NDAA) of 2016 out of committee. Recognizing that the defense of our country is not a partisan issue, we came together to produce a bipartisan bill that supports our troops and provides them with the necessary tools to successfully accomplish their dangerous and demanding missions.

The NDAA legislation seeks to improve the quality of life for the men and women of our armed forces and their families and addresses the needs of our wounded, ill and injured service members. It also makes important reforms aimed at recruiting and retaining the all-volunteer force that has consistently defended our country for over four decades. And it cuts $10 billion in wasteful and duplicative spending, freeing up funds to develop and procure weapon systems of the future while also giving our troops in combat the resources they need today.

We also addressed the issue of the arbitrary spending caps in the NDAA. The Budget Control Act, which was passed in 2011, placed spending caps on the defense budget and threatens our troops with sequestration. But because this is the law of the land, we must abide by its rules until we are able to fix it. Fortunately, the members of the 112th Congress who passed the Budget Control Act recognized the importance of funding our servicemen and women, and included the “Overseas Contingency Operations” account in the Budget Control Act. NDAA includes money from this account to fully fund our armed forces.

Across the globe, military aggression and threats to our nation continue to emerge. The threats facing our country are multi-faceted, our enemies’ tactics ever-changing. New and dangerous weapons are getting into the hands of those who wish to do us harm. For these reasons, it is essential to properly equip our military men and women with the tools and support necessary to complete their missions.

The defense of our country should never be a partisan issue. Passing NDAA means that our military men and women are equipped with the tools they need to fight the enemy and defend the freedoms we too often take for granted here at home. The Senate has passed NDAA every year for the past five decades. This speaks to the importance that generations of Senate members have attached to passing the NDAA, despite ideological differences. I encourage my colleagues to continue that tradition and I hope the president will work with us. Our soldiers deserve nothing less.

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Congresswoman Kristi Noem’s Weekly Column: The Kind of Father My Husband Is

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The Kind of Father My Husband Is
By Rep. Kristi Noem
June 12, 2015

kristi noem headshot May 21 2014Moms tend to notice things that don’t get done. I’ll admit it. I’m guilty. I can drive in the driveway and see that the yard needs to be mowed or the fences painted.  I’ll walk in the house and see the pile of shoes by the door or the laundry that needs to be folded. Moms tend to be multi-taskers; only able to relax when everything is put away, kids are clean, and animals fed. And if we are tired or overwhelmed, you will hear us say “Honey, will you?”

At our house, Bryon completes many of our chores. I am gone most weeks to DC and he is left to handle all things related to work, kids, the ranch, and the house until I come home on the weekend. I know that I am blessed to have a husband who recognizes how wonderful it is for me to come home to a clean house and tended family – and he tries to make that happen.

But what makes me love him more each day is to come home to happy children. You see, I married Bryon because I loved him and wanted to build a life with him, but at the time, I really had no idea what kind of a father he would be. I had a sneaking suspicion he would be a great dad because he has a wonderful father who is a great role model. Bryon loves the Lord and understands the responsibility that God gives to men leading their families. As the years went by and the kids were born, his actions revealed to me how he viewed fatherhood. He served.

He gave Kassidy her first bath. In fact, my mom came to stay with us for a few days after Kassidy was born and soon she came to me and said, “I might as well go home. Bryon won’t let me do anything.”

When Kennedy was a baby, she had reflux so bad, everyone was reluctant to hold her because of the spit up bath she was sure to give them.  But her dad held her constantly and thought it was “cute.”

Booker was such a sick little boy with so many breathing problems that he needed multiple inhalers, medications, and constant trips to the hospital. Bryon prayed over him every night, asking God to heal our little boy.

When you look at our family home videos, you will find they were all taken by Bryon. I’m not sure it ever occurred to me to document those busy years. Yet there are hours and hours of video of the kids playing, talking, and sometimes just watching TV! It is almost as if he knew how special those moments were and wanted to save them for me to enjoy when I decided to slow down enough to appreciate them.

His gifts to our children are not often material. They are not fancy or over the top. But he gives our children so much more. Bryon teaches them the importance of hard work, independence, the value of the dollar and responsibility, while also making sure they know they are special, unique and loved.

When I stop to really think about what his busy weeks must be like when he is running his business, coaching athletic teams, organizing the kids’ schedules, keeping the house running and remembering to buy milk, I remember how blessed I am. And when I get home and hear the stories of the week and listen to my children’s laughter in the retelling, I thank God for the father He gave to Kassidy, Kennedy and Booker.

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