BISMARCK, N.D. (PPR) – The North Dakota Public Service Commission has approved a settlement in Otter Tail Power Company’s electric rate increase request.

In November of 2023, Otter Tail filed for an 8.43 percent rate increase. It was granted an interim increase, while the case was pending.

The settlement was worked out between two interveners and PSC staff. Under it, rates would increase by 6.18 percent.

Commissioner Sheri Haugen-Hoffart.

Hoffart said the agreement also provides for “over-earnings sharing.”

Otter Tail says the new rates will take effect during the first quarter of 2025.

The following is a news release from Otter Tail Power Company in Fergus Falls, Minnesota.

“On December 30 the North Dakota Public Service Commission (PSC) approved a $13.1 million net increase to Otter Tail Power Company’s electric service rates.

While overall costs of living have increased since the company’s last North Dakota rate review, filed in 2017, this average net increase of 6.18 percent keeps the company’s electric service rates among the lowest in the nation. “We’re committed to providing reliable, cost-effective electricity for our customers,” said Otter Tail Power President Tim Rogelstad. “And because interim rates closely match final approved rates, customers won’t see a significant bill impact when we implement final rates.”

Otter Tail Power filed its original request for a rate review, often referred to as a rate case, on November 2, 2023. In the initial filing, the company increased rates for North Dakota customers on an interim, or temporary, basis beginning January 1, 2024. Otter Tail Power will propose to implement approved rates approximately 120 days after the PSC final order becomes effective, likely in the first quarter of 2025.

The PSC set Otter Tail Power’s return on equity at 10.10 percent, which is an increase from the 9.77 percent return approved in the last rate review. If Otter Tail Power earns an annual return on equity above 10.20 percent, the company will return 70 percent of those additional earnings to customers. “We appreciate the Commissioners’ recognition of the increased costs associated with safely and reliably serving our customers,” said Rogelstad. “Our employees continue to focus on operational excellence, working to keep costs as low as possible. We’ll also continue providing options to help customers manage their energy use.”

Programs help customers save energy and money

Otter Tail Power encourages customers to proactively save energy and money by:

• Unplugging any electronics that aren’t in use, such as gaming consoles, TVs, and home office equipment.
• Making low-cost and no-cost changes to reduce energy consumption, such as switching to LED lightbulbs.
• Participating in programs that make use of lower off-peak rates, such as thermal storage and water heating programs.

Customers can find options to reduce their electricity costs and information on payment assistance at otpco.com or by calling Otter Tail Power at 800-257-4044.