Astoria Station

Astoria Station is part of our company’s plan to reliably, economically, and environmentally responsibly meet our customers’ energy needs, replace expiring capacity purchase agreements, and prepare for the 2021 retirement of the 1950s-era 140-megawatt (MW) coal-fired Hoot Lake Plant in Fergus Falls, Minnesota.

Astoria Station will be a simple-cycle natural gas combustion turbine in Deuel County, South Dakota, with 245 MW of capacity and will provide energy during periods of high demand. The station will complement our wind generation by providing a reliable backstop when the wind isn’t blowing and will have flexible operating options and low emissions. Astoria Station paired with the Merricourt Wind Energy Center is a great example of our commitment to providing an optimal mix of energy resources. We'll invest approximately $158 million in the project.

Employees and contractors are using appropriate protocols and CDC guidelines related to the COVID-19 pandemic. Learn more about our company's COVID-19 response.

Timeline

Regional economic benefits

Tax benefits
Astoria Station will pay property tax totaling approximately $3 million within the first five years of operation, then approximately $1 million each subsequent year.

New jobs
This project will create numerous construction jobs—with a peak of 270 during the height of construction—equating to approximately $30 million in construction labor costs. Currently, there are approximately 250 workers onsite. When complete, the station will require two to three full-time employees to operate it.

Infrastructure improvements
Infrastructure improvements needed for the station, such as the new electrical substation, could lead to additional commercial and industrial development in the area.

Natural gas enables renewable energy

By 2022 we project that approximately 30% of the energy our customers use will come from renewables. But, because the sun doesn’t always shine and the wind doesn’t always blow, we need safe, reliable, and affordable dispatchable generation fuel sources—such as natural gas. Astoria Station will allow us to keep the lights on when we’re unable to harness the sun or wind to generate energy.

Materials

On August 28, 2017, we held a voluntary public open house in Astoria, South Dakota.

On November 27, 2017, the South Dakota Public Utilities Commission held a public input hearing in Toronto, South Dakota.

News releases and updates

July 9, 2020: Otter Tail Power Company continues to put employee and community safety first at Astoria Station project site

April 15, 2020: This spring we received and installed both the combustion turbine and generator.

The combustion turbine parked at the construction site

The combustion turbine parked at the construction site.

The generator being lifted to its foundation.

The generator being lifted to its foundation.