An Otter Tail Company

Minnesota rate case

Public Utilities Commission approval required

Otter Tail Power Company is a regulated utility, which means the Minnesota Public Utilities Commission, the South Dakota Public Utilities Commission, and the North Dakota Public Service Commission approve the amount we charge customers for producing and delivering their electricity.

Request submitted in 2007

On October 1, 2007, we submitted a request to the Minnesota Public Utilities Commission for an increase in electric base rates in Minnesota only. See our most recent filing information based on the MPUC decision on our rate case.

Update

On August 1, 2008, the Minnesota Public Utilities Commission (MPUC) granted Otter Tail Power Company a revenue increase of $3.8 million, or about 2.9 percent, to address rising costs and growing energy use.

What this means to you

While the MPUC granted a revenue increase of about 2.9 percent, that doesn't mean all customers will see a 2.9 percent increase on their electric service statements. Some customers will see less and some customers will see more, based on their residential or commercial rate(s) and the amount of electricity they use.

It's interesting to note that, even with the upcoming changes, Otter Tail Power Company's rates remain among the lowest in the nation.

What lies ahead

As part of our initial filing, we increased rates on an interim, or temporary, basis with energy used on and after November 30, 2007 . Because the MPUC decision results in a revenue increase of less than what we collected during interim rates, we will refund customers the difference with interest. We anticipate that interim rate refunds will begin 30 days after final rate implementation.

We anticipate implementing the approved final rates in early 2009.

We understand that this affects customers' budgets, as do rising costs associated with groceries, gasoline, and other fundamentals. To help secure a bright future, we promise to remain diligent about finding the most efficient, responsible, and cost-effective ways to provide exceptional service, as we have since 1909. However, because costs to produce electricity continue to rise—as does energy use—we likely will need to file another rate case in Minnesota within the next few years.

Tentative remaining Minnesota schedule

August 1, 2008 Commission order
August 15, 2008 Recalculate rates
August 21, 2008 Request for reconsideration
October 20, 2008 PUC written order
30 days after PUC order Compliance filing
90 days after PUC order Final rates effective
120 days after PUC order Interim rate refunds begin
150 days after PUC order Interim rate refund complete
160 days after PUC order Refund complaint report