An Otter Tail Company

Water heating and off-peak rates

Low rates make electric water heating a cost-effective option

When you install an electric water heater you may place it on one of our controlled service rates and operate it for about 3.3¢ to 4¢ per kilowatt-hour depending on which rate program you select.

  • Controlled service that combines water heating with household heat, such as dual fuel, deferred load, or RDC programs, averages about 3.3¢ per kilowatt-hour.
  • Controlled service for water heaters alone averages 4¢ per kilowatt-hour.

Actual rates vary by state and control program.

To set up a controlled service connection, we supply the radio controls and metering, and you pay installation costs and for wiring to reach the second meter.

If you don't wish to install separate metering, you may connect your water heater to your general service and simply allow us to install a radio receiver to control it. You'll receive a credit of $2 a month in Minnesota and North Dakota or a credit of $3 a month in South Dakota.

Estimated operating cost

The average family of four uses 350 to 400 kilowatt-hours a month to heat water. That will cost about $15 to $20, depending on which interruptible rate is used.

Larger rebates available

  • Install a new or replacement 80-gallon water heater on controlled service and receive a $150 rebate.
  • Install a new or replacement 105- to 120-gallon water heater on controlled service and receive a $200 rebate.
  • Purchase and install two or more 50-gallon or larger water heaters at the same time on controlled service and receive a $75 rebate on each unit.
  • Businesses that install 12 kilowatts or more of controlled-service water heating and a minimum of 120 gallons of storage capacity may receive a rebate of $20 per kilowatt.

Let us help you select your best option.   Contact us.

Rates mentioned in web material subject to change

On October 1, 2007, Otter Tail Power Company submitted a proposal to the Minnesota Public Utilities Commission (MPUC) to increase base rates for electric service in Minnesota for the first time since 1986.

On November 27, 2007, the MPUC approved our request to increase rates by approximately 5.4 percent—over what customers paid in 2006, including the cost-of-energy adjustment—on an interim, or temporary, basis beginning November 30, 2007. The proposed interim rate increase will remain in effect until the MPUC decides the case in August 2008.

Information reported on this web site does not reflect interim or final rate increases. We will update all rate information after the MPUC makes its final decision.