The South Dakota Public Utilities Commission is questioning Xcel Energy about a nuclear plant in Minnesota, asking why the utility provider expects South Dakotans to pay for an out-of-state project.
Xcel Energy is asking the Public Utilities Commission for permission to increase customers rates in South Dakota to offset annual payments made to the Prairie Island Indian Community.
That’s a Native community in Minnesota south of the Twin Cities. Xcel pays millions of dollars per year to the community based on its close proximity to the Prairie Island Nuclear Generating Plant.
The company is looking to increase rates in South Dakota, totaling nearly $600,000 annually, to help offset the costs.
Chris Nelson is a South Dakota Public Utilities Commissioner. He said he doesn’t think South Dakotans should have to pay for an offset in payment occurring in a different state.
“This is a hard deal for me because I am just passionate, not just in this circumstance but every circumstance, about making sure our rate payers don’t pay for a dime more of anything than they have to. I am not yet convinced that they should be paying for this. I mean, I know we know that Minnesota legislators said Minnesotans ought to pay for it, fine. I’m not convinced that South Dakotans should pay for it,” said Nelson.
Kristie Feigen is the Chairwoman of the South Dakota Public Utilities Commission. She offered a substitute motion to delay the vote, providing time for staff to analyze Xcel Energy’s rates in the state without denying a rate increase in the state.
She thanked Xcel for its open communication on the matter.
“You were talking about your community engagement and if you have been listening to other PUC commission meetings. I continue to talk about consumer engagement, and how our investor-owed utilities have to engage with our consumers. This is just a thank you. Thank you for making community engagement important. I think community engagement is just as important as customer engagement,” said Fiegen.
All three commissioners voted to support Fiegen’s substitute motion.
