Rates and Pricing

Learn about anticipated cost changes and how to help manage them, the rates we use to calculate your monthly bill, and the requirements to qualify for other rates.

Anticipated Cost Changes

We anticipate that customers—all customer classes averaged together—will see an average increase in the cost of electric service of about 5 percent a year on comparable kilowatt-hour use between 2010 and 2020. Increases will vary by size, year, and state. And some customer groups will see more or less than other customer groups.

Maintaining competitive rates

We’re taking proactive steps to maintain manageable rates, keeping the price our customers pay for electricity as economical as possible.

While environmental objectives and the need for diversity of fuel mix and resources contribute to increasing costs, new technologies and infrastructure investments will help to keep the price our customers pay among the lowest in the region.

Learn about:

Competitive Rates

2013 residential rates (cents/kwh)
State average Minnesota 11.42
Otter Tail Power Company Minnesota 8.94
State average North Dakota 8.61
Otter Tail Power Company North Dakota 7.97
State average South Dakota 9.94
Otter Tail Power Company South Dakota 8.22
United States residential average   12.21
Otter Tail Power Company total system residential average   8.41

Source: Typical Bills and Average Rates Report, Edison Electric Institute, summer 2013.
Rates shown in cents/kwh. 

Maintaining Manageable Rates

We are resourceful, stretch our budgets, and make prudent decisions as we:

  • Control our expenses while optimizing power plant efficiencies.
  • Improve and expand our load-management system, which includes energy control.
  • Emphasize energy efficiency and conservation.
  • Manage the size of our workforce.
  • Take steps to reduce employee benefit cost increases.

Learn how you can help manage your energy costs.