Scout Clean Energy of Boulder, Colorado, did dirt work at a proposed wind farm site in Hand County without a permit from the Public Utilities Commission. Commissioner Chris Nelson is understandably concerned:
Nelson admitted he was “incredulous” about how the matter has unfolded.
Amanda Reiss, one of the commission’s staff attorneys, said she “has concerns” about construction activities occurring without a state permit.
Reiss said a violation “likely occurred” and would be subject to class-one misdemeanor penalties of up to one year in jail and up to $2,000 of fine.
…[SCE director of development Matt] Heck told commissioner Nelson “we probably should have” applied for a state permit at the end of 2016. Heck added, “I think we made a mistake in that regard.”
Nelson said he needed “to ponder” the matter. “Obviously this is new territory for us and I’d like some time,” he said [Bob Mercer, “State Regulators Weigh Possible Penalty Against Wind Developer in Hand County,” Watertown Public Opinion, 2017.11.07].
This unpermitted work was not uncovered by PUC diligence. SCE itself sent the PUC a letter in September admitting that it had hurried excavation of turbine foundation sites and construction of an access road last December in order to qualify for a federal wind-energy tax credit. The company “regrets the mistake made.”
If the tax credit the company got from the federal government is higher than the fine they will pay to SD (very likely) then the SD fine is just part of the cost of doing business. The same thing will probably happen again and again. That said, SD does want wind development (except Lincoln County).
It is almost guaranteed to re-occur if the korporation isn’t thrown in jail for a year and given a $2000 fine.
Otherwise, South Dakota becomes a toothless punching bag for every lawless korporation in amerika.
Why does the PUC think it should be involved with construction of wind generator construction? Perhaps they should regulate power lines to them, but the PUC has a hammer and thinks all construction is a nail they should hammer. The stranded power generated should be used to produce methane or anhydrous ammonia and help fuel local economies rather than benefiting only the large utilities.dd
Doug,
There is a state law requiring PUC approval of any energy generation being proposed. It’s a good law meant to protect the state’s rateapayers and environment from construction of unnecessary or expensive or environmentally destructive projects.
https://puc.sd.gov/commission/Publication/sitinghandout.pdf
In the 1990s I intervened in one such case where an company proposed to burn waste petroleum coke in and incinerator, converting some of the resulting heat into electricity. Opposed the project, along with Black Hills Power. The PUC turned them down.
As far as beginning work on projects before the permit is in hand, I think preliminary dirt work occurs more often than we know about. It shouldn’t happen, but sometimes they jump the gun. We certainly saw evidence of mining companies doing some initial work on expansion of mines into new areas before they had a permit. Sometimes it’s questionable and pretty easy to hide, or explain away. This seems pretty clear cut jumping the gun.
Don Pay, thanks for the info. I hope to dig into that a bit more. Wonder if the PUC can stretch authority into regulating mining of Uranium for energy production.
That’s Mr. Pay, to even a swell fellow such as you, Mr. Wiken.
Pet coke is nasty stuff. Ask citizens of Chicago where the koch bros store pet coke and the wind blows it everywhere.
Chicago wanted the bastard bros to build shelters around the stuff to protect people and environment and the koch bros threastened to bankrupt Chicago in court fighting this.