Otter Tail Power seeks to increase rates due to clean energy investments
Otter Tail Power Company filed a request with the Minnesota Public Utilities Commission (PUC) to increase its rates due to cleaner energy generation investments.
“We’re creating a cleaner energy future while keeping the prices our customers pay among the lowest in the nation,” Otter Tail Power Company President Tim Rogelstad said. “Making this request now better prepares us for long-term success in providing safe, reliable, low-cost electricity to our customers.”
Among the new projects are the Merricourt Wind Energy Center, a 150-MW wind generation facility in southeast North Dakota, and Astoria Station, a 245-MW simple-cycle natural gas combustion turbine in east central South Dakota. The Merricourt Wind Energy Center will begin commercial operation by the end of 2020, and Astoria Station likely will begin commercial operation in the first quarter of 2021.
“Astoria Station complements our wind resources by providing a low-emission option when the wind isn’t blowing,” Rogelstad said. “Backing wind with natural gas captures the low-cost energy made possible by the current market for wind generation while helping to ensure sufficient reliability from resources we can ramp up quickly during periods of high energy demand.”
They will help replace the output from the coal-fired Hoot Lake Plant in Fergus Falls, Minn., which is slated for a 2021 retirement.
If the rate increase is approved, the typical residential customer’s monthly bill will increase approximately $7.75, while a typical business customer’s bill would increase by approximately $26 a month.
“Our low rates are not an accident,” Rogelstad said. “They’re a direct result of our long history of mindful operations and making the right investments at the right times.” The company filed its last Minnesota rate review in 2016.
While the PUC considers Otter Tail Power Company’s overall request, the company asked to increase rates on an interim basis starting Jan. 1, 2021. The interim rates would remain in effect until early 2022. If final rates are lower than interim rates, the company will refund customers the difference with interest. If final rates are higher than interim rates, the company will not collect the difference.
Otter Tail serves customers in Minnesota, North Dakota, and South Dakota.
