Today the Minnesota Public Utilities Commission (MPUC) unanimously approved Otter Tail Power Company’s request to implement interim rates on January 1, 2021, as part of the company’s current Minnesota rate review. In November, recognizing the economic impact to customers of the ongoing pandemic and with input from MPUC staff, Otter Tail Power Company proposed reducing its interim rate request by approximately half to $6.9 million, or 3.2 percent.
The company cited extending depreciation on its wind farms and deferring depreciation costs for its retiring 1950s-era coal-fired Hoot Lake Plant as part of the reduced interim rate request. “We appreciate the Commission’s input on our initial request and their decision to approve our updated interim rate request as filed,” said Otter Tail Power Company President Tim Rogelstad. “With this decision, we’re able to recover on our prudent investments in necessary infrastructure and technology to provide our customers with electric service that’s increasingly clean, safe, and reliable while maintaining rates among the lowest in the nation.”
Otter Tail Power Company filed its original request for a rate review on November 2 to support investments in cleaner energy and smarter technologies and to adjust for rising costs.
The MPUC will hold a public hearing related to this filing and will post the hearing schedule on its website. Otter Tail Power Company also will post the hearing schedule and provides additional details about its rate review request at otpco.com/MNRateReview.