Vermillion approves transfer of electric service territory for annexed Munger Tract
November 04, 2025 | Vermillion , Clay County, South Dakota
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The Vermillion City Council approved an agreement on Nov. 3 to transfer electric service territory for the annexed parcel known as the Munger Tract, near Highways 58 and 19.
City staff said the council previously approved annexation of Munger Tract 4 on Aug. 4. Notices of intent were delivered to Clay-Union Electric in early August and acknowledged Oct. 21. Clay-Union told staff it has no existing services or infrastructure on the property, although it does have nearby infrastructure north of the tract that does not require relocation.
"Back in the August 4 meeting, council approved annexation of what is known as Munger Tract 4 in the city limits," Shane, a city staff member, told the council, adding that Clay-Union acknowledged receipt of the notice of intent and confirmed no infrastructure on the property.
City staff said the transfer date is set for Dec. 1. Following the transfer, the city will be responsible for paying any lost-revenue payments to new customers who connect to the system, consistent with state statute. Once both governing bodies approve the agreement, it will be sent to the South Dakota Public Utilities Commission for final documentation.
Council moved approval of the agreement and the motion carried by voice vote. City staff said electric fund budget has capacity to cover the expected expenses. The agreement will next be presented to Clay-Union Electric’s board for their approval later in the month before the SD PUC filing.
The item was presented as new business; no public comments were recorded during the council discussion.
City staff said the council previously approved annexation of Munger Tract 4 on Aug. 4. Notices of intent were delivered to Clay-Union Electric in early August and acknowledged Oct. 21. Clay-Union told staff it has no existing services or infrastructure on the property, although it does have nearby infrastructure north of the tract that does not require relocation.
"Back in the August 4 meeting, council approved annexation of what is known as Munger Tract 4 in the city limits," Shane, a city staff member, told the council, adding that Clay-Union acknowledged receipt of the notice of intent and confirmed no infrastructure on the property.
City staff said the transfer date is set for Dec. 1. Following the transfer, the city will be responsible for paying any lost-revenue payments to new customers who connect to the system, consistent with state statute. Once both governing bodies approve the agreement, it will be sent to the South Dakota Public Utilities Commission for final documentation.
Council moved approval of the agreement and the motion carried by voice vote. City staff said electric fund budget has capacity to cover the expected expenses. The agreement will next be presented to Clay-Union Electric’s board for their approval later in the month before the SD PUC filing.
The item was presented as new business; no public comments were recorded during the council discussion.
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