State of South Dakota
|
EIGHTY-SEVENTH SESSION
LEGISLATIVE ASSEMBLY, 2012
|
850T0635
|
HOUSE BILL NO. 1121
|
Introduced by: Representatives Solum, Brunner, Fargen, Gosch, Hawley, Kirkeby, Lust,
Rausch, Street, Verchio, White, and Willadsen and Senators Rave, Adelstein,
Frerichs, Hansen (Tom), Johnston, Krebs, Lederman, Nelson (Tom), Olson
(Russell), and Tieszen
|
FOR AN ACT ENTITLED, An Act to amend rate stability provisions to include plant additions.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section 1. For purposes of §§ 49-34A-73 to 49-34A-78, inclusive, plant additions are
investments in fixed generation, transmission, and distribution assets, whether purchased or
constructed, including operations and maintenance expenses directly related to those fixed
assets, real property, and new power purchases.
Section 2. That § 49-34A-73 be amended to read as follows:
49-34A-73. Notwithstanding anything in this chapter to the contrary, an electric utility that
is subject to rate regulation by the commission and plans major capital plant additions or new
power purchases that are expected to have a material impact on rates may make application to
the commission for a phase in rate stability plan to provide for the phase-in phase in of rate
increases prior to the commercial operations of the major capital plant additions or new power
purchases. The plan may provide for any of the following:
(1) Rate increases to be incrementally phased in prior to the commencement of
commercial operation of the plant additions or new power purchases;
(2) To the extent rate increases for plant additions are allowed prior to commercial
operation, restrictions on the capitalization of allowance for funds used during
construction for the plant additions;
(3) Restrictions on other rate increases during the construction period of the plant
additions or term of the new power purchases; and
(4) Any other conditions which benefit the public interest and may be imposed by the
commission consistent with the findings in § 49-34A-74.
Section 3. That § 49-34A-74 be amended to read as follows:
49-34A-74. The commission may approve a rate stability phase in rate plan as provided in
§ 49-34A-73 if:
(1) The electric utility makes application for a phase in rate stability plan prior to the
commencement of construction or acquisition of the plant additions or new power
purchases;
(2) The electric utility files with the application a full cost of service analysis as required
for general rate increases and including a projection of costs and revenues revenue
requirements to the date of the anticipated commercial operation of the plant
additions or through the term of the new power purchases;
(3) The commission holds affords an opportunity for a hearing with notice to be given
as required for any rate increase; and
(4) The commission finds that the
phase in rate
stability plan is likely to enhance
adequate utility service, rate stability, the financial stability of the electric utility,
reasonable capital costs, just and reasonable rates, a fair rate of return
, and other
considerations that benefit the public interest.
Section 4. That § 49-34A-75 be amended to read as follows:
49-34A-75.
At any time prior to one year after the conclusion of a phase in rate plan, the
commission, upon its own motion or upon petition of the electric utility, may examine the
reasonableness of the utility's rates under the plan, and adjust rates as necessary. Any
rate
stability phase in rate plan is subject to annual review. The electric utility shall file annually an
abbreviated cost of service analysis showing that year's revenues, costs and revenue
requirements
, and a report of the progress of the construction
or acquisition of the
capital plant
additions showing accumulative construction
or acquisition costs for the year and updated cost
projections to complete the
capital plant additions.
Section 5. That § 49-34A-76 be amended to read as follows:
49-34A-76. Within twelve months
prior to after the
commercial operation of the capital
additions end of the phase in rate plan, the electric utility shall file a general rate case with a full
cost of service analysis including the
major capital plant additions
, unless, upon motion, the
commission determines that a general rate case would not be likely to result in material changes
to the rates in place under the phase in rate plan, in which event the rates under the phase in rate
plan will remain in effect until changed by further order of the commission.
After notice and
hearing the commission shall adjust the rates under the criteria set forth in § 49-34A-8 to be
charged by the electric utility commencing with the commercial operation of the major capital
addition.
Section 6. That § 49-34A-77 be amended to read as follows:
49-34A-77. Upon filing an application for a
phase in rate
stability plan, the electric utility
shall pay a filing fee to be determined by the commission in an amount not to exceed
one two
hundred fifty thousand dollars.
The filing fee may also be used for any annual reviews pursuant
to § 49-34A-75.
Section 7. That § 49-34A-78 be amended to read as follows:
49-34A-78. If the commission does not approve
a an application for a phase in rate
stability
plan as defined in § 49-34A-73, the electric utility may not be prohibited from
making,
acquiring, or constructing plant additions
and purchasing power and requesting and obtaining
rate adjustments as authorized by this chapter.