Energy and Resource Adjustments

Beginning January 1, 2021, Energy Adjustment rates will include all forecasted costs of fuel to generate electricity to serve our retail customers, forecasted transportation costs for that fuel, and forecasted costs we'll incur to buy energy to supplement our own power plants.

On December 3, 2020, the Minnesota Public Utilities Commission (MPUC) approved the implementation of these rates and the change in how costs are collected (Docket No. E017/GR-20-719 Application of Otter Tail Power Company for Authority to Increase Rates for Electric Service in Minnesota). Interim base rates no longer include recovery of a portion of fuel and purchased energy costs. All fuel and purchased energy costs now are recovered through the rates below.

Once a year, we compare actual costs to amounts collected from customers 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 is a credit of ($.0005) per kilowatt hour. This credit is part of the monthly Cost of Energy (COE) adjustment on customer bills from March 1, 2020, through February 28, 2021. The approved rates for January and February 2021 include this annual true-up adjustment.

During Q2 and Q3 of 2020, our actual fuel and purchased energy costs were much lower than our collections. On November 16, 2020, the MPUC approved our request to reduce Energy Adjustment rates for the January through June 2021 period by ($0.0061) per kilowatt-hour to return this over-collection to customers. This reduction is included in the approved 2021 rates effective January through June 2021.

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 January 1, 2021 to present
	Energy Charge per kwh	Demand Charge per kw
Large General Service (a)	N/A	$ 1.388
Controlled Service (b)	$ 0.00060	N/A
Lighting (c)	$ 0.00268	N/A
All Other Service	$ 0.00416	N/A
The Transmission Cost Recovery Rider from November 1, 2012 to December 31, 2020
	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
(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 Service (c)  Rate schedules 11.03 Outdoor Lighting (Energy only), 11.04 Outdoor Lighting and 11.07 LED Street and Area Lighting Dusk to Dawn

 

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, 2021 to present
	Energy Charge per kwh	Demand Charge per kw
Large General Service (a)	$0.000	$0.000
All Other Service	$0.000	N/A
The Renewable Resource Cost Recovery Rider from January 1, 2020 to December 31, 2020
	Energy Charge per kwh	Demand Charge per kw
Large General Service (a)	$0.00350	$0.464
All Other Service	$0.00525	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
From October 1, 2019, through September 30, 2020	$0.00038 per kWh