Resource Adjustment

Effective January 1, 2020, the Minnesota Energy Adjustment includes the forecasted cost of fuel to generate electricity to serve our retail customers, forecasted transportation costs for that fuel, and forecasted costs we will incur to buy energy to supplement our own power plants, minus a base cost for energy that already is part of the per-kilowatt-hour rate you pay.

Once a year, we compare actual costs to amounts collected from customers through base rates and the Cost of Energy (COE) over the same time-period and compute a rate that trues-up the difference over the next 12 months.

For the 18 months ending December 31, 2019, the true-up rate will be a credit of ($.0005) per kilowatt‑hour. This credit will be part of the monthly COE adjustment on customer bills from March 1, 2020, through February 28, 2021. The rates reflected below have been updated to include this annual true-up adjustment.

On May 14, 2020, Otter Tail filed a Petition requesting approval of a reduction to fuel cost charges for the July through September 2020 period. The $0.0057/kWh reduction has been provisionally implemented in the rates below.

Service category

Residential

Farm

General Service

Large General Service

Irrigation Service

Outdoor Lighting

OPA (Municipal Pumping/Electric Vehicle)

Controlled Service Water Heating

Controlled Service Interruptible (Dual Fuel)

Controlled Service Deferred (Thermal Storage/Fixed Time of Delivery)

Rates applicable to all service categories prior to January 1, 2019

Rates for the Energy Adjustment for bills rendered on and after:
December 3, 2018	-$ .00204 per kwh
November 1, 2018	-$ .00447 per kwh
October 2, 2018	-$ .00359 per kwh
September 4, 2018	-$ .00473 per kwh
August 2, 2018	-$ .00152 per kwh
July 2, 2018	-$ .00186 per kwh
June 1, 2018	$ .00003 per kwh
May 2, 2018	$ .00099 per kwh
April 2, 2018	-$ .00053 per kwh
March 2, 2018	$ .00002 per kwh
February 1, 2018	-$ .00064 per kwh
January 3, 2018	-$ .00179 per kwh

The Transmission Cost Recovery Rider allows our company to recover costs associated with transmission additions designed to meet our customers' growing energy needs, accommodate the delivery of additional renewable energy, and enhance transmission system reliability. 

The Transmission Cost Recovery Rider from November 1, 2017 to present
	Energy Charge per kwh	Demand Charge per kw
Large General Service (a)	N/A	-$ 0.650
Controlled Service (b)	-$ 0.00032	N/A
Lighting (c)	-$ 0.00113	N/A
All Other Service	-$ 0.00173	N/A
The Transmission Cost Recovery Rider from September 1, 2016 to October 31, 2017
	Energy Charge per kwh	Demand Charge per kw
Large General Service (a)	N/A	$ 0.937
Controlled Service (b)	$ 0.00041	N/A
Lighting (c)	$ 0.00158	N/A
All Other Service	$ 0.00246	N/A
(a) Rate schedules 10.04 Large General Service, 10.05 Large General Service Time of Day, 14.02 Real Time Pricing Rider, and 14.03 Large General Service Rider (b) Rate schedules 14.01 Water Heating, 14.04 Interruptible Load (CT Metering), 14.05 Interruptible Load (Self-Contained Metering), 14.06 Deferred Load, and 14.07 Fixed Time of Delivery (c)  Rate schedules 11.03 Outdoor Lighting (energy only) and 11.04 Outdoor Lighting

The Conservation Improvement Program (CIP) surcharge represents our investment in energy-efficiency programs that help our customers save energy.

The CIP surcharge is based on the total kwh our customers use. 

CIP surcharge factor for bills rendered:
On or after October 1, 2020	$0.00485 per kwh

 

CIP surcharge factor for bills rendered:
From January 1, 2020, through September 30, 2020	$0.00710 per kwh
From November 1, 2018, through December 31, 2019	$0.00600 per kwh

 

As of January 2014 the Environmental Cost Recovery Rider (ECRR) allows our company to recover costs that we incur to meet state or federal environmental quality requirements for our electric generating facilities. The Minnesota Public Utilities Commission approved our request for an ECRR to include the costs associated with an air-quality control system (AQCS) at Big Stone plant in South Dakota. The AQCS will allow Big Stone Plant to meet federal air quality requirements.

The ECRR factor is multiplied by our customers' monthly bills. It does not apply to any Mandatory Riders, sales tax, or any local assessments.

Environmental Cost Recovery Rider factor for bills rendered:
On or after December 1, 2018	0.0 percent
From November 1, 2017, through November 30, 2018	-0.935 percent
From September 1, 2016, through October 31, 2017	6.927 percent

The Renewable Resource Adjustment allows our company to recover costs previously offset by production tax credits associated with our renewable energy facilities. The energy generated by these facilities reduces the amount of fossil fuel and purchased energy necessary to meet our customers' needs.

The Renewable Resource Cost Recovery Rider from January 1, 2020 to present
	Energy Charge per kwh	Demand Charge per kw
Large General Service (a)	$0.00350	$0.464
All Other Service	$0.00525	N/A
The Renewable Resource Cost Recovery Rider from November 1, 2018 to December 31, 2019
	Energy Charge per kwh	Demand Charge per kw
Large General Service (a)	$0.00164	$0.217
All Other Service	$0.00244	N/A
(a) Rate schedules 10.04 Large General Service, 10.05 Large General Service Time of Day, 14.02 Real Time Pricing Rider, and 14.03 Large General Service Rider

Our EITE Surcharge Rate applies to customers who do not qualify for the EITE (energy-intensive trade-exposed) Rate. Minnesota's energy policy supports lower electric rates for energy-intensive trade-exposed customers. We automatically exclude customers who receive Low Income Home Energy Assistance Program (LIHEAP) funds from the EITE Surcharge Rate.

EITE Surcharge Rate for bills rendered:
On or after October 1, 2020	$0.00033 per kWh