PUC REDUCES REQUESTED INCREASES FOR RATES FROM MONTANA-DAKOTA UTILITIES
PIERRE, S.D. – The South Dakota Public Utilities Commission significantly reduced rate increases for both South Dakota electric and natural gas customers served by Montana-Dakota Utilities Co. at their regular meeting in Pierre today, Aug. 13, 2024. The commission’s actions came after a year-long analysis of two MDU requests: to increase base rates for electric service to customers in its South Dakota territory by approximately $2.98 million annually or approximately 17.3%, and to raise natural gas rates by approximately $7.42 million annually or 11.2%.
The approved rate for MDU’s South Dakota electric customers will allow a more modest overall revenue increase of $1.29 million annually. As a result, a typical residential electric customer using 900 kWh per month will see an average bill increase of $8.26 per month, less than half the estimated $20.00 per month from the company’s original request.
In the natural gas docket, parties agreed to increase annual revenues recovered by approximately $5.37 million annually, resulting in an average increase of approximately $4.45 per month for a typical natural gas customer using 66.3 dekatherms annually, or 5.53 dk per month. The amount approved by the PUC is just over half the $8.70 per month increase requested in MDU’s application.
“It’s important for the public to understand what the PUC is and what commissioners can do. We are quasi-judicial, so we have to abide by the law and ensure that rates are reasonable and just and that the company also gets a fair rate of return,” said PUC Chairperson Kristie Fiegen. “When analyzing these two dockets, I see a company that hasn’t had a rate increase in eight years and today we are looking at rate increase for both electric and natural gas of 7 or 8% over a period when the total inflation alone was well over 30%. We often hear customers ask us not to increase their rates, but we have abide by the law, and that’s what we’ve done today,” Fiegen continued.
Both resolutions were reached through negotiations between MDU and PUC staff and were filed with the commission as settlement stipulations on July 26, 2024. Both comprehensive agreements cover numerous areas and issues. As a part of both settlements, the company agreed to a moratorium on additional base rate increases that will prevent MDU from requesting an increase in base rates that would be effective prior to March 1, 2027. Other issues detailed in the settlements include increases to customer charges, an interim refund plan and a lower overall rate of return for the company.
PUC Vice Chairman Gary Hanson highlighted the importance of finding a balance between the interests of South Dakota customers and the company when analyzing rate cases. “Protecting the citizens from unnecessary utility expenses while allowing utilities to obtain the funds necessary to provide safe, reliable, and affordable electricity is a top priority of mine. I am especially appreciative of PUC staff for their incredible deep dive and thorough investigation,” said Hanson.
MDU’s natural gas filing cited investments made since the last rate increase and increases in operations and maintenance expenses as primary drivers behind the need for a natural gas rate increase. MDU cited the same two drivers in the need for an electric rate increase, with additional factors like depreciation and property taxes also contributing. The company’s last electric and natural gas rate increases in South Dakota were approved by the PUC in June 2016.
“MDU investment in new pipes to improve natural gas pipeline safety, increased interest costs, and general inflation are driving these increases,” noted PUC Commissioner Chris Nelson. “The PUC staff has worked hard to keep these rate increases far below the rate of general inflation to minimize the burden on utility consumers,” he said.
MDU submitted applications for both rate increases to the PUC on Aug. 15, 2023. New rates will go into effect Sept. 1, 2024. The company implemented interim rates for electric and natural gas customers on March 1, 2024. Because the rates approved by the commission are lower than the interim rates, the company must refund the difference, plus 7% interest, to customers as bill credits no later than Nov. 29, 2024.
MDU serves approximately 64,600 natural gas customers and 8,500 electric customers in South Dakota.
SD HIGHWAY PATROL INVESTIGATING 2 MOTORCYCLE FATALITY ACCIDENTS
SOUTH DAKOTA Undated – A 29-year-old man died in a single vehicle motorcycle crash Monday evening just outside of Sioux Falls, SD.
The name of the person involved has not been released pending notification of family members.
The initial crash report shows that the driver of a 2007 Suzuki motorcycle, traveling eastbound on Interstate 90, left the road to the right and entered the south ditch, crashed into a fence and separated the driver from the motorcycle. The driver passed away at the scene from his injuries. He was wearing a helmet.
Meanwhile on the other side of the state a 22-year-old man died in a single vehicle motorcycle crash Monday evening about 10 miles outside of Spearfish, SD.
Again, no names have been released pending notification of family members.
The preliminary crash report in this instance is that the rider of a 2014 BMW was on US Highway 14A when he failed to negotiate a left-hand curve. The rider lost control and left the roadway down into a wooded embankment. After he came off the bike he sustained fatal injuries. He was wearing a helmet.
The South Dakota Highway Patrol is investigating these crashes.
FINAL NUMBERS FROM THE STURGIS MOTORCYCLE RALLY
STURGIS, S.D. – Traffic entering Sturgis for the 10-day run of the 84th Sturgis Motorcycle Rally was up nearly 3% from a year ago according to the South Dakota Department of Transportation.
The DOT reported that the total number of vehicles entering Sturgis from Friday, Aug. 2, to Sunday, Aug. 11, was 470,987 as compared to 458,161 for 2023 – up 2.8 percent.
The state determines the count by placing traffic counters at nine locations entering Sturgis.
Following are the daily numbers for 2024 as compared to 2023:
Friday, Aug. 2: 51,179 entering – up 12.1% from 2023 (45,652)
Saturday, Aug. 3: 55,127 entering – up 44.6% from 2023 (38,126)
Sunday, Aug. 4: 52,182 entering – down 14% from 2023 (60,586)
Monday, Aug. 5: 55,971 entering – up 11% from 2023 (50,487)
Tuesday, Aug. 6: 54,451 entering – down 3% from 2023 (55,848)
Wednesday, Aug. 7: 52,878 entering – down 6% from 2023 (56,444)
Thursday, Aug. 8: 50,053 entering – down 4% from 2023 (52,195)
Friday, Aug. 9: 44,671 entering – down 2% from 2023 (45,661)
Saturday, Aug. 10: 34,583 entering – up 4% from 2023 (33,278)
Sunday, Aug. 11: 892 entering – up 1% from 2023 (19,884)
Total for the 10 days in 2024 – 470,987 as compared to 458,161 for 2023 – up 2.7 percent
The DOT also compared this year’s traffic numbers at the nine locations entering Sturgis with their five-year average numbers.
Here’s what they found:
Friday August 2nd: 51,179 entering – down 1.5% from the Friday 5-year average of 51,953 (2019-2023)
Saturday August 3rd: 55,127 entering – down 2.3% from the Saturday 5-year average of 56,440 (2019-2023)
Sunday August 4th: 52,182 entering – down 12.7% from the Sunday 5-year average of 59,746 (2019-2023)
Monday August 5th: 55,971 entering – down 5.1% from the Monday 5-year average of 58,959 (2019-2023)
Tuesday August 6th: 54,451 entering – down 5.2% from the Tuesday 5-year average of 57,431 (2019-2023)
Wednesday August 7th: 52,878 entering – down 3.6% from the Wednesday 5-year average of 54,830 (2019-2023)
Thursday August 8th: 50,053 entering – up 1.1% from the Thursday 5-year average of 49,518 (2019-2023)
Friday August 9th: 44,671 entering – down 0.5% from the Friday 5-year average of 44,879 (2019-2023)
Saturday August 10th: 345,83 entering – up 1.7% from the Saturday 5-year average of 33,999 (2019-2023)
Sunday August 11th: 19,892 entering – down 5.1% from the Sunday 5-year average of 20,965 (2019-2023)
10 Day Total: 470,987 entering – down 3.6% from the 10 Day Total 5-year average (2019-2023) of 488,720.
The city also uses other statistics to give them a comparison of the Rally from year to year.
Sturgis Police Chief Geody VanDewater said calls for service and other categories listed in his Rally report ran about even with last year. Calls for service this year totaled 1,708 as compared to 1,607 in 2023.
Planning & Permitting Director Dave Smith said vendor licenses this year totaled 720 as compared to 709 in 2023.
As of Saturday, our latest tally, the city had hauled 317.46 tons of garbage as compared to 349.21 tons hauled in 2023. As a qualifier to those numbers, it rained for three days of the Rally in 2023, and wet garbage is heavier than dry garbage.
