PUC asks for website security funds and RTO support as gross‑receipts revenue declines

The South Dakota Public Utilities Commission briefed the Joint Committee on Appropriations on its budget, pressing for resources to harden its public website and filing system against cyber threats, to support work tied to regional transmission organizations (RTOs), and to address staff and workload pressures as gross‑receipts tax revenue declines.

Chair Gary Hanson opened the presentation by noting the PUC's small staff of about 31.2 FTEs and the range of activities the commission regulates: investor‑owned electricity and natural gas, telecommunications, grain warehouses and pipeline safety. "We have the fewest numbers of any state in the nation and I'd like you to keep that in mind," Hanson said.

Key requests and risks: The commission asked for the committee's permission to pursue roughly $506,000 to upgrade and secure the PUC website and to integrate a secure public filing system. Staff told the committee the PUC website contains the largest volume of public content among state agencies and is the most probed site by malicious bots and other automated actors; commissioners said that continued probing raises risks to confidential dockets and to infrastructure information. Hanson characterized the request as urgent in order to move before core vendor support schedules change.

RTO work and staffing: Commissioners explained South Dakota is served by multiple regional transmission organizations (MISO, Southwest Power Pool and the Western Energy Market). The PUC asked to convert an existing 1.5 FTE allocation toward general‑funded work that will support RTO engagement and resource adequacy functions; commissioners said much of the RTO work requires sustained technical participation with neighboring states to protect South Dakota ratepayers.

Revenues and grain inspections: The PUC presented a multi‑year decline in gross‑receipts tax revenues that fund parts of its operations; revenues rose in 2022–23 during a period of higher natural‑gas prices but the long‑term trend of declining landline telephony reduces that tax base. Commissioners also warned against cutting grain warehouse inspections, saying inspections and financial reviews help protect producers from major losses when warehouses face insolvency.

Pipelines and dockets: Hanson summarized the PUC's role in pipeline siting and safety and described the procedural complexity of large dockets, such as recent pipeline hearings that required many days of testimony and large volumes of filings. The commission offered to provide confidential maps of pipelines to legislators on request and explained that open dockets constrain commissioners from public comment.

No formal committee action was taken immediately. The PUC invited lawmakers to an upcoming legislative information session and said it will work with the state's Bureau of Information and Telecommunications on the website modernization funding path; PUC staff said if the BIT IT modernization fund is not available, they may return to the committee next year with an appropriations request.