Status: Some residential customers in the
State have access to unbundled service. |
Overview: Unbundled natural gas service is
available for some residential customers, but the lack of marketer
participation in South Dakota makes it generally impractical for most.
Transportation service, with no minimum volume requirements, has been
available to all customers of two of South Dakota's three major local
distribution companies (LDCs) since the mid-1990s. However, of the dozen
or so marketers active in South Dakota, few, if any, have found it
economic to enter the residential market. Also few, if any, residential
customers have arranged for separate transportation service because of the
difficulties involved, such as telemetering costs and nomination
requirements. The two distributors that offer transportation service with
no minimum volume requirements are MidAmerican Energy Company and
NorthWestern Energy Corporation. Montana-Dakota Utilities Company also offers
transportation service, but the minimum requirement of 2.5 million Btu per
hour makes it impractical for residential and other small-volume
customers. |
EIA State Data: In 2008, South Dakota had 165,694 residential, 21,819 commercial, and 596 industrial customers. They consumed approximately 14 billion cubic feet (Bcf), 11 Bcf, and 32 Bcf of natural gas, respectively. The average prices residential, commercial, and industrial customers paid for natural gas from local distribution companies were $11.32, $9.76, and $9.00 per thousand cubic feet, respectively. |
Eligibility and Participation in Retail Choice
Programs: |
Eligibility and Participation by Three Major LDCs, December
2009
Local
Distribution Company |
Number
of Customers (All Sectors) |
Number
of Transportation Customers (All Sectors) |
MidAmerican Energy Company
|
84,736 |
235 |
Montana-Dakota Utilities Company
|
53,762 |
28 |
NorthWestern Energy Corporation
|
43,617 |
85 |
Total |
182,115 |
348 |
Source: South Dakota Public Utilities Commission (February 2010). |
|
Regulatory and Legislative Actions
on Retail Unbundling
Summary: The South Dakota Public
Utilities Commission (PUC) approved transportation tariffs in the
mid-1990s for two LDCs operating in the State. In 1996, at the urging of
some marketers, the PUC decided to consider adopting standards of conduct
for LDCs and their affiliates. The PUC staff promulgated such rules in
1997, but, after a hearing, the rules were rejected because there had not
been any complaints as to abuse of affiliate relations. |
Regulatory and Legislative Actions
Legislation |
03/96 |
Flexible
rates, SB144. Authorizes the PUC to permit flexible
and competitive rates on a case-by-case basis. Utilities could
charge a "business development rate" if the PUC finds it in the
public interest. |
|
02/96 |
Incentive
rates, Senate Bill 143. Authorizes the PUC to allow
utilities to use incentive rates to encourage efficiency.
|
Regulatory
Action |
10/05 |
MidAmerican Energy's Incentive Procurement
Program re-approved (NG02-007). The PUC
approved continuation of MidAmerican Energy Company's Incentive Gas Supply
Procurement Program (IGSPP) for a 5-year period through October 31, 2010. |
|
10/02 |
MidAmerican Energy's IGSPP re-approved (NG02-007). The PUC
approved continuation of MidAmerican Energy's IGSPP for another 3 years effective
November 1, 2002. |
|
08/99 |
MidAmerican's IGSPP
approved, Final Decision
and Order NG98-010.
PUC approved continuation of MidAmerican
Energy Company's IGSPP for another 3 years, or until its purchased
gas adjustment is eliminated, whichever comes first.
|
|
10/97 |
Order rejecting proposed standard of
conduct rules, RM97-002. The
PUC voted to reject proposed rules governing standards of conduct
for LDCs and their affiliated marketing entities after determining
that there had been no complaints regarding conduct of LDCs and
their affiliates. |
|
08/96 |
Proposed standards of
conduct. Staff directed
to formulate LDC/Affiliate Standards of Conduct Rules. In March
1996, the PUC denied PAM Natural Gas' (PNG) request to adopt
emergency rules governing LDCs, their agency business and affiliated
marketing entities. Instead, the PUC opened docket NG96-011 to
investigate establishing standards of conduct rules. Comments were
solicited as to whether to adopt any rules and if so what rules
should be
considered. | |