South Dakota 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 2008
On October 31, 2008, we submitted a request to the South Dakota Public Utilities Commission for an increase in electric base rates in South Dakota only. See our most recent filing information with the South Dakota PUC.
Update
On June 23, 2009, the South Dakota Public Utilities Commission (PUC) granted Otter Tail Power Company a revenue increase of $2.9 million, or about 11.7 percent, to address rising costs and growing energy use.
What this means to you
While the PUC granted a revenue increase of about 11.7 percent, that doesn't mean all customers saw an 11.7 percent increase on their electric service statements. Some customers saw less and some customers saw more, based on their residential, RDC, or non-residential rate(s) and the amount of electricity they use.
Along with the first electric service statement reflecting the approved rates, customers received a notice explaining how the overall revenue increase impacts various rates.
Customers also saw several rate changes as a result of the PUC decision. One change was the reduction of declining block rates, which were rates that allowed customers to pay less per kilowatt-hour as they used more electricity. Because higher-use customers saw a greater increase in their bills than lower-use customers, reducing the number of declining block rates and the price differentials associated with them encourages customers to save money through energy conservation.
It's interesting to note that, even with these changes, Otter Tail Power Company's rates remain among the lowest in the nation.
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.
South Dakota does not allow recovery of renewable resource costs through riders as do Minnesota and North Dakota. As Otter Tail Power Company adds more wind-generated electricity, we expect to file additional rate cases in South Dakota to begin recovering costs in a timely manner.
