CHAPTER 239
(HB 1091)
Public Utilities Commission may approve tariff mechanisms.
ENTITLED, An Act to
authorize the Public Utilities Commission to approve tariff mechanisms
for the automatic annual adjustment of charges for jurisdictional costs of new or modified
transmission facilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:
Section
1.
That chapter
49-34A
be amended by adding thereto a NEW SECTION to read as
follows:
Notwithstanding any other provision of this chapter, the commission may approve a tariff
mechanism for the automatic annual adjustment of charges for the jurisdictional costs of new or
modified transmission facilities with a design capacity of thirty-four and one-half kilovolts or more
and which are more than five miles in length. For the purposes of this Act, electric transmission
facilities and electric transmission lines covered by this section include associated facilities such
as substations and transformers.
Section
2.
That chapter
49-34A
be amended by adding thereto a NEW SECTION to read as
follows:
Upon filing of an application consistent with rules promulgated by the commission by any
public utility providing transmission service, the commission may approve, reject, or modify, after
notice, hearing, and comment, a tariff that:
(1) Allows the public utility to recover on a timely basis the costs net of revenues of
facilities described in section 1 of this Act;
(2) Allows a return on investment at the level approved in the public utility's last general
rate case, unless a different return is found to be consistent with the public interest;
(3) Provides a current return on construction work in progress, if the recovery from retail
customers for the allowance for funds used during construction is not sought through
any other mechanism;
(4) Allocates project costs appropriately between wholesale and retail customers; and
(5) Terminates recovery once costs have been fully recovered or have otherwise been
reflected in the public utility's general rates.
Section
3.
That chapter
49-34A
be amended by adding thereto a NEW SECTION to read as
follows:
A public utility may file annual rate adjustments to be applied to customer bills paid under the
tariff approved pursuant to section 2 of this Act. In the utility's filing, the public utility shall
provide:
(1) A description of and context for the facilities included for recovery;
(2) A schedule for implementation of applicable projects;
(3) The public utility's costs for these projects;
(4) A description of the public utility's efforts to ensure the lowest reasonable costs to
ratepayers for the project; and
(5) Calculations to establish that the rate adjustment is consistent with the terms of the tariff
established in section 2 of this Act.
Section
4.
That chapter
49-34A
be amended by adding thereto a NEW SECTION to read as
follows:
Upon receiving a filing under section 3 of this Act for a rate adjustment pursuant to the tariff
established in section 2 of this Act, the commission shall approve the annual rate adjustments if,
after notice, hearing, and comment, the costs included for recovery through the tariff were or are
expected to be prudently incurred and achieve transmission system improvements at the lowest
reasonable cost to ratepayers.
Section
5.
That
§
49-1A-8
be amended to read as follows:
49-1A-8.
There is created a special fund within the state treasury to be known as the South
Dakota Public Utilities Commission Regulatory Assessment Fee fund. The Public Utilities
Commission may require a public utility as defined in subdivision 49-34A-1(12) to make a deposit
of up to one hundred thousand dollars when it files for approval of a general rate case, regardless
of the number of issues involved, or files an integrated resource plan. The commission may require
a deposit of up to one hundred twenty-five thousand dollars for a filing which combines a general
rate case and an integrated resource plan.
The commission may require a deposit of up to fifty
thousand dollars for the filing of a tariff for approval under the provisions of this Act.
The deposits
shall be made to the South Dakota Public Utilities Commission Regulatory Assessment Fee fund,
the amount to be designated by commission order. The fund shall be invested as provided by law,
and the interest earned shall be credited to the fund.
Section
6.
That
§
49-34A-4
be amended to read as follows:
49-34A-4.
The commission shall regulate to the extent provided in this chapter every public
utility as defined
herein
in this chapter
. The commission may promulgate rules pursuant to chapter
1-26 in furtherance of the purposes of this chapter concerning:
(1)
Procedures and requirements for applications for rate and tariff changes;
(2)
Requirements for gas and electric utilities to maintain and make available to the public
and the commission records and information;
(3)
Requirements and procedures regarding customer billings and meter readings;
(4)
Requirements regarding availability of meter tests;
(5)
Requirements regarding billing adjustments for meter errors;
(6)
Procedures and requirements for handling customer disputes and complaints;
(7)
Procedures and requirements regarding temporary service, changes in location of service
and service interruptions;
(8)
Standards and procedures to ensure nondiscriminatory credit policies;
(9)
Procedures, requirements and record-keeping guidelines regarding deposit policies;
(10)
Procedures, requirements and record-keeping guidelines regarding customer refunds;
(11)
Policies for refusal of gas or electric service;
(12)
Policies for disconnection and transfer of gas and electric service;
(13)
Customer payment plans for delinquent bills;
and
(14)
Requirements regarding advertising
; and
(15) Procedures and requirements for applications for tariff mechanisms seeking the
automatic annual adjustment of charges for the jurisdictional costs of new or modified
transmission facilities under the provisions of section 1 of this Act
.
Signed February 17, 2006