south dakota energy infrastructure authority (sdeia) inaugural meeting of state infrastructure...
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South Dakota Energy Infrastructure Authority
(SDEIA)Inaugural Meeting of State Infrastructure
Authorities Rapid City, SDJune 13, 2007
Assistant State Energy DirectorInterim Executive Director of the South Dakota Energy Infrastructure Authority
Hunter Roberts• 2010 Goal of making South Dakota a Net Energy
Exporter• Ethanol• Biodiesel• Wind
• Serve as Interim Executive Director of the South Dakota Energy Infrastructure Authority (SDEIA)
SDEIAPresentation Overview
Brief summary of the legislative intent Authority actions required by the legislation Administration SDEIA Electric Industry Interviews Report and SDEIA
Energy Study Current Status of the SDEIA Current Status of Energy Development in South Dakota
South Dakota Energy Infrastructure Authority (SDEIA)
Created by the South Dakota Legislature in the 2005 session
Codified at South Dakota Codified Laws Chapter 1-16I
SDEIA
Legislative Intent
Created to diversify and expand the state’s economy by developing in South Dakota the energy production facilities and the energy transmission facilities necessary to produce and transport energy to markets within the state and outside of the state
SDEIA
Legislative Intent
The authority may provide for the financing, construction, development, maintenance, and operation of new or upgraded energy transmission facilities
SDEIA
Legislative Intent In order to finance energy transmission facilities
authorized pursuant to the Act, the authority may issue up to one billion dollars in revenue bonds.
However, no bonds may be issued until approved by an act of the Legislature.
SDEIA
Required Authority Actions
Meet with any interested owner of transmission lines in South Dakota, and any interested generator and distributor of electricity to consumers in South Dakota
Report its findings and make recommendations to the Governor, the Legislature, and the South Dakota delegation
SDEIA
Required Authority Actions
Evaluate state and federal laws affecting electric generation and transmission
Identify and communicate opportunities for cooperation between owners of transmission lines in South Dakota and generators and distributors of electricity
SDEIA
Required Authority Actions Assist any entity that wants to build new or
upgrade existing electric transmission facilities to, from, and within South Dakota
Assist other state transmission authorities and any federal or regional entity wanting to build new or upgrade existing transmission facilities to deliver electricity to, from, and within South Dakota
SDEIA
Administration
The authority is governed by a five member board of directors. Board members are appointed by the Governor and serve staggered six year terms. Members may be reappointed.
SDEIA
Administration Current board members are:
• Mike Trykoski, Rushmore Professional Services, Rapid City (Chairman)
• Kyle White, Black Hills Corporation, Rapid City (Vice Chairman)
• Audry Ricketts, South Dakota Rural Electric Association, Pierre
• Mike Held, South Dakota Farm Bureau, Huron• Dr. Mike Ropp, SDSU, Brookings
SDEIA
SDEIA Electric Industry Interviews Report (2006) Overview of electric Loads, current electric production &
transmission system in SD Opportunities & challenges seen by interviewees in:
• siting new power production facilities• new transmission facilities in SD • finding customers for electric energy produced
for in-state use & export
SDEIA
SDEIA Energy Study (2007)
The objective of the report was to present, as complete as possible, an assessment of the practicality and feasibility of electric generation from the major energy options - coal, nuclear, and wind power - as they would apply in South Dakota.
SDEIA
SDEIA Energy StudyChallenges and Opportunities
Opportunities• Similar Findings as the Interview Report• Available land and water• Good business and Labor Climate• Supportive Government policy and a generally favorable regulatory
process• Great wind resource
SDEIA
South Dakota Wind and Transmission Map
SDEIA
SDEIA Energy Study Challenges
• Small Market with small load growth• Need to export energy
SDEIA
SDEIA Energy Study
Transmission Opportunities• Existing transmission could facilitate some additional transmission • Existing Utilities in South Dakota are willing and able to design and build
additional transmission to serve the current customers and are willing to undertake transmission improvements when and where new customers are willing to pay for the additional transmission needed
• Investor-owned, independent transmission companies are willing to build transmission, when a customer can be found.
Transmission Challenges• MISO, WAPA and Basin Issue• Not adequate to move large blocks of electricity to high load centers• Regional Transmission
Midwest Independent System Operator (MISO)Service Area
SDEIA – Results from Reports: What can state government do to advance SD’s electric
power industry and in turn economic development? South Dakota government could advance the production
and transmission of electricity for in-state and export markets by:
1. Establishing South Dakota government as being actively interested in assisting energy development in the state.
2. Actively participating in the search for customers 3. Considering and sponsoring innovative combinations of
generation sources and loads.
SDEIA – Results both Reports
4. Actively addressing MISO seams issues. 5. Sponsoring multi-state action on transmission
corridors. 6. Ensuring competitive rail service. 7. Reviewing and adjusting state tax structures.
The Full reports are available at: www.sdeia.com
Current Status of Transmission Projects in South Dakota Big Stone II – 630 MW Coal Fired Generation
Facility with additional transmission lines = Partners• Otter Tail Power Company – lead developer• Central Minnesota Municipal Power Agency• Great River Energy• Heartland Consumers Power District• Missouri Energy Services• Montana-Dakota Utilities Co.• Southern Minnesota Municipal Power Agency
Current Status of Transmission Projects in South Dakota Big Stone II –
• a new line from Big Stone, SD, to Canby, MN, and an upgrade of the line from Canby to Granite Falls, MN. Voltage on these lines most likely would be 230 kV, with the Big Stone to Canby portion of the line at 345 kV.
• A new line from Big Stone, SD, to Ortonville, MN, with an upgrade of the line from Ortonville to Johnson Junction to Morris, MN.
• Estimated Costs – $225-265 Million
Current Status of Transmission Projects in South Dakota Big Stone II – Map
• transmission corridor map
Current Status of Transmission Projects in South Dakota CapX 2020 –
• CapX Brookings, S.D.–Southeast Twin Cities will improve reliability throughout West Central Minnesota, the Red River Valley, and the Twin Cities, along with enabling access to new generation, including projected wind resources to be built in the area.
• • Scope: approximately 230 miles, 345-kilovolt• Targeted in-service: 2012-2014
Current Status of Transmission Projects in South Dakota
CapX 2020 –
SDEIA’s Future 2007 Energy Report – “Focus on Wind” Other Plans
• Find and disseminate good information from legitimate sources to the Governor, Legislature, energy industry players, and the Public.
• Act in an advisory role to the Legislature and the Governor • Coordinate efforts between Industry and States• Coordinate future Cooperation among the State’s and the Federal
Government• Continue to evaluate the need for the SDEIA’ Bonding Authority
Perfect the bonding tool
Do not harm current Industry
