St. Paul, Minnesota — On Thursday, the Minnesota Public Utilities Commission (Commission) reduced and approved Otter Tail Power Company’s (Otter Tail Power) proposal to increase rates for electric service. Based on the Commission’s decisions yesterday, estimates indicate that the average residential customer will likely see an increase of 4 cents per month. 

“The Commission approved a significantly reduced rate increase yesterday. Working with Otter Tail Power, the Commission found a way to protect consumers’ wallets and ensure there is reliable electrical service for Otter Tail Power’s customers,” said Commission Chair Katie Sieben. 

Based on preliminary estimates, the Commission approved an annual increase of about $100,000 or about 0.05%. Otter Tail Power initially filed its petition in this rate case on November 2, 2020, asking for an increase in rates of $14.5 million, or 6.8%. 

As allowed by Minnesota Statute, Otter Tail Power is currently charging interim rates of $6.9 million per year, implemented on January 1, 2021. Once the financial impact of all of the decisions made yesterday are calculated, if final rates are lower than these interim rates, customers would receive a proportionate refund of the difference, with interest. This is anticipated to occur in the second quarter of 2022. 

Final customer and overall rate impact numbers will be available upon issuance of the Commission’s order. 

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 Tricia DeBleeckere, 651-201-2254 or tricia.debleeckere@state.mn.us if you have any questions.