St. Paul, Minnesota — At its December 3, 2020 agenda meeting, the Minnesota Public Utilities Commission approved an interim rate increase for Otter Tail Power Company (Otter Tail) customers of about 3.23 percent over current rates, or approximately $6.9 million. Considering the potential economic impacts of the COVID-19 pandemic on rate payers, the PUC approved 49 percent less than what Otter Tail initially requested in its filing. This interim rate will be in effect while the general rate case is underway and will be subject to customer refunds should final rates be less than the approved interim rates.

State law allows Otter Tail to collect higher rates beginning on January 1, 2021 on a temporary or interim basis while the PUC reviews Otter Tail’s request.

On November 2, 2020, Otter Tail filed a general rate case with the Minnesota Public Utilities Commission (PUC) seeking permission to increase its electric rates by about 6.77 percent or approximately $14.5 million per year. The PUC is currently engaged in a formal rate review process to determine whether the rates proposed by Otter Tail are just and reasonable. As a part of that process, the PUC has referred this case to the Minnesota Office of Administrative Hearings for a contested case proceeding that will be overseen by an Administrative Law Judge.

The Otter Tail rate case process will include public hearings for customers and the public to attend and provide comment, as well as an opportunity to provide written comments. Notice of the hearing dates, times and locations (if the hearings are held in person) will be published in local newspapers in the applicable service area, mailed to customers as a flyer enclosed with electric service statements, and available online on the PUC’s and Otter Tail’s websites.

About

The Minnesota Public Utilities Commission regulates three cornerstone service industries in Minnesota's economy; electricity, natural gas and telephone. The Commission’s mission is to create and maintain a regulatory environment that ensures safe, adequate and efficient utility services at fair, reasonable rates consistent with State telecommunications and energy policies. It does so by providing independent, consistent, professional and comprehensive oversight and regulation of utility service providers. Learn more at mn.gov/puc

Please contact Will Seuffert, 651-201-2217 or will.seuffert@state.mn.us if you have any questions.

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