SB 128 — update provisions related to certain large-use customers of utilities.

128B26.250.24 101st Legislative Session 128 South Dakota Legislature Senate Bill 128 AMENDMENT 128B FOR THE INTRODUCED BILL Introduced by:

A large-use customer, as defined in section 2 of this ActAct, § 49-34A-1, which is operating as a data center, shall provide notice to and cooperate with each local water provider to ensure that projected water consumption is compatible with the water supply in the area in which the customer is located.

128B26.250.24 2 128 For purposes of this section, "data center" means a centralized repository for the dissemination, management, processing, and storage of electronic data and information.

128B26.250.24 3 128 (6) "Electric service," electric service furnished to a customer for ultimate consumption, but not including wholesale electric service furnished by an electric utility to another electric utility for resale;

(9A)(10) "Incremental costs," all costs incurred by a public an electric utility, which are directly attributable to a large-use customer and incurred in addition to the normal costs of providing service to other existing customers;

(10)(12) "Large-use customer," a customer, established after July 1, 2026, which requires electric service with a contracted demand of two thousand kilowatts or moremore; has an anticipated peak electrical demand of ten megawatts or greater;

128B26.250.24 4 128 any of the federal, state and local governments, including any of their political subdivisions, agencies and instrumentalities, an association;

Each public utility that provides electric service shall establish a classification of service, with its own tariff and schedules, for large-use customers, which must be separate and distinct from classifications of service for other customers.

128B26.250.24 5 128 (2) May not impose on other customers any rate increase or surcharge that is directly attributable to the utility usage of a large-use customer;

Notwithstanding the establishment of assigned service areas for electric utilities provided for in §§ 49-34A-43 and 49-34A-44, new customers at new locations which develop after March 21, 1975, located outside municipalities as the boundaries thereof existed on March 21, 1975, and who require electric service with a contracted minimum demand of two thousand kilowatts or more shall not be a new alarge- large-useuse customer, or any other new customer requiring electric service with a contracted minimum demand of two megawatts or more at a new location outside the existing boundary of a municipality,municipality is not obligated to take electric service from the electric utility having the assigned service area where the customer is located if, after notice and hearing, the Public Utilities Commission the commission so determines, after notice, hearing, and consideration of the following factors:

OverstrikesSection indicate6. deleted language.

128B 6 128 Section 6.

NotwithstandingOverstrikes theindicate requirementsdeleted oflanguage. section 4 of this Act, any large-use customer may negotiate with an electric utility provider a rate for electric service and enter into a written contract that:

26.250.24 6 128 Notwithstanding the requirements of section 4 of this Act, any large-use customer may negotiate with an electric utility provider a rate for electric service and enter into a written contract that:

and (5) Requires the large-use customer to report to the electriccommission utility and to either the commission and, if the electric utility is a public utility, or the approval authority, if the electric utility is not a public utility, at least annually, the following information:

A contracted rate established negotiated between a large-use customer and a public utility pursuant to this section does not violate § 49-34A-3 if, after consideration of the factors in § 49-34A-56, the commission approves the contract and determines the contract is in the public interest.

If the electric utility serving the large-use customer is a public utility, the commission may require the large-use customer to reimburse the commission for the retention of experts and any other costs incurred by the commission to process and review contracts, rates, and reports pursuant to this section.

If the electric utility serving the large-use customer is not a public utility, the applicable approval authority may require the large-use customer to pay for costs associated with reviewing contracts, rates, and reports pursuant to this section.

Overstrikes indicate deleted language.

128B 7 128 For purposes of this section, "approval authority" means the board of directors of a state or rural electric cooperative or the governing body, if the electric utility is owned by a municipality, political subdivision, or agency of this state.

NotwithstandingIf anyan otherelectric provisionutility declares an energy shortage or forecasts that peak demand is projected to exceed supply, each large-use customer of law,the anutility must curtail electric usage until the electric utility maydetermines not:the total demand for residential customers and essential public services is met.

(1) Increase any fee, rate, or surcharge imposed on any customer that is not a large- use customer, for the purpose of financing, offsetting, or subsidizing the infrastructure costs, service demands, or utility consumption of a large-use customer;

or (2) Allocate to any customer that is not a large-use customer incremental costs or any other cost associated with the distribution, generation, or transmission infrastructure of a large-use customer.

Section 8.

That a NEW SECTION be added to chapter 49-34A:

If an electric utility a transmission operator declares an energy shortage or forecasts that peak demand is projected to exceed supply, each large-use customer of the utility in the affected service area must curtail electric electricity usage until the electric utility transmission operator determines the total electricity demand for residential customers and essential public services is met.