Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Electric Service Transfer topic
No spam. Unsubscribe anytime.
Council approves transfer agreement for electric service territory at Marv Tract 1
Summary
Vermillion will assume electric service territory for Marv Tract 1 effective Sept. 1, 2025; the city will pay lost-revenue fees and file the agreement with the South Dakota PUC after Clay Union board approval.
The City Council on Aug. 4 approved an agreement to transfer electric service territory for Marv Tract 1, a property at the northeast corner of South Dakota Highway 50 and Princeton Street, with an effective transfer date of Sept. 1, 2025.
Shane reported that Clay Union acknowledged receipt of the city's earlier notice of intent and confirmed there are no existing services on the property, though some distribution lines and materials lie on the south end of the parcel. Clay Union staff reviewed and approved the city's draft transfer agreement, Shane said; both bodies must approve the agreement and it will then be filed with the South Dakota Public Utilities Commission.
Under the agreed terms, the city will pay lost revenue fees equal to 25% of sales for existing and new services for seven years and lost-revenue payments for new services apply for an 11-year window from the notice date. The electric budget contains funds to cover these expenses, staff said. Councilor Murs moved to approve the agreement; Councilor Holland seconded, and the motion carried on a voice vote.
