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 plant additions that are expected to have a
material impact on rates may make application to the commission for a phase in rate plan to provide
for the phase in of rate increases prior to the commercial operations of the plant additions. 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;
(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
(3) Restrictions on other rate increases; 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 phase in rate plan as provided in § 49-34A-73 if:
(1) The electric utility makes application for a phase in rate plan prior to the commencement
of construction or acquisition of the plant additions;
(2) The electric utility files with the application a full cost of service analysis as required for
general rate increases including a projection of costs and 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 affords an opportunity for a hearing with notice given as required for any
rate increase; and
(4) The commission finds that the phase in rate 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
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 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 plant additions showing accumulative construction or
acquisition costs for the year and updated cost projections to complete the plant additions.
Section 5. That § 49-34A-76 be amended to read as follows:
49-34A-76. Within twelve months after the 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 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.
Section 6. That § 49-34A-77 be amended to read as follows:
49-34A-77. Upon filing an application for a phase in rate plan, the electric utility shall pay a
filing fee to be determined by the commission in an amount not to exceed 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 an application for a phase in rate plan as defined
in § 49-34A-73, the electric utility may not be prohibited from making, acquiring, or constructing
plant additions and requesting and obtaining rate adjustments as authorized by this chapter.
An Act to amend rate stability provisions to include plant additions.
I certify that the attached Act
originated in the
HOUSE as Bill No. 1121
Speaker of the House
President of the Senate
Secretary of the Senate
House Bill No. 1121
File No. ____
Chapter No. ______
Received at this Executive Office
this _____ day of _____________ ,
20____ at ____________ M.
for the Governor
The attached Act is hereby
approved this ________ day of
______________ , A.D., 20___
STATE OF SOUTH DAKOTA,
Office of the Secretary of State
Filed ____________ , 20___
at _________ o'clock __ M.
Secretary of State
Asst. Secretary of State