South Dakota Utility to Request Rate Increase To Pay for Transmission Line It May Not Need

There are several assumptions in the headline, but it's not rocket science.

Basin Electric wants to build a "huge" $43 million transmission line across South Dakota to ensure there is enough electricity to power the pumping stations along the proposed TransCanada Keystone XL pipeline.

The Keystone XL is not yet approved; indications are the earliest the federal government will issue a "thumbs up/thumbs down" is by the end of the year, 2011. Meanwhile, opposition to the Keystone XL grows among private landowners (particularly in Texas) and environmental groups. (Click on "Keystone" label at bottom of blog.)

If the pipeline goes in, TransCanada will "help" pay for it; until the pipeline goes in, utility customers will pay for it; and if the pipeline doesn't go in, and the transmission line goes in, well, someone still has to pay for it.

Most likely the utility is only getting the permission to build it now, but won't build it until the pipeline is approved and funding from TransCanada arranged. Unless, of course, there are other reasons that are not being said (like wind) to build the line.