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SD PUC approves Ottertail tariff revisions amid questions about MISO capacity
Summary
The South Dakota Public Utilities Commission on March 26 approved Ottertail Power Company's tariff revisions for small power production and co‑generation, effective April 1, 2026, after commissioners pressed the company and staff about a reported capacity shortfall in the MISO region.
The South Dakota Public Utilities Commission approved Ottertail Power Company’s proposed tariff revisions for small power production and co‑generation and a revised renewable energy credit rider, effective April 1, 2026.
Commission staff recommended approval and Ottertail asked the commission to adopt the revisions. "Staff would recommend approval of the tariff revisions with an effective date of April 1st," said John Thurber of commission staff.
Vice Chairperson Christy Fegan pressed company and staff representatives about a potential capacity shortfall for winter 2026 after noting changes in the Midcontinent Independent System Operator’s (MISO) reliability‑based demand curves. "I do have a question … I am seeing that there is a shortfall it looks like in the winter of 2026 on capacity," Fegan said, asking how the change in accreditation and seasonal capacity constructs will affect ratepayers.
Chris Burns, representing Ottertail Power, said resource planners would be better placed to answer detailed questions about capacity but thanked staff for their review. Staff analyst Eric Pollson said there is no statutory requirement for investor‑owned utilities to notify staff each time MISO accreditation changes, though staff expects to discuss major resource planning updates with utilities in scheduled meetings: "when they have these big changes there's no requirement from the to meet with us … but next month we do have a meeting with Ottertail … about resource planning updates."
Commissioner Nelson moved to approve the tariff revisions. The motion carried unanimously (Commissioner Hansen: I; Commissioner Nelson: I; Vice Chairperson Fegan: I). The tariff revisions will take effect April 1, 2026.
Why it matters: Commissioners said they want to ensure tariff changes reflect reliability needs and that staff and utilities monitor accreditation and capacity metrics in MISO so that rate impacts and procurement decisions are understood before seasons when margins tighten.
