The South Dakota Public Utilities Commission has approved a rate reduction for an intrastate pipeline company that currently delivers natural gas to central South Dakota.
PUC vice chairman Gary Hanson says the decision involves the South Dakota Intrastate Pipeline Co., Montana-Dakota Utilities Co. and Ringneck Energy.
Hanson says this rate case addressed who would pay for the ongoing costs of operating the South Dakota Intrastate Pipeline.
Ringneck Energy is an ethanol plant currently under construction near Onida. It’s scheduled to begin accepting natural gas service from SDIP in November. The new rate will go into effect on Sept. 1.
The rate reduction approved by the PUC will actually reduce SDIP’s annual income by approximately $279-thousand per year.
