Transmission towers at sunset

Otter Tail Electric Rate Case

Otter Tail Power Company has asked the Minnesota Public Utilities Commission to approve an increase in its retail electric rates of approximately $44.8 million or approximately 17.69%. 

Otter Tail Power previously submitted a rate increase request in 2020 with a 2021 test year. 

Interim rates

As part of a rate-case review, utilities are entitled under Minnesota law to recover a portion of their proposed costs through interim rates while the PUC conducts a comprehensive evaluation of the full rate request. 

The Commission approved a $28.6 million interim rate, or 11.34%. This is less than the $33.1 million that Otter Tail requested. These interim rates took effect on January 1, 2026, resulting in adjustments to monthly energy bills for residential and business customers. Importantly, these rates are subject to refund with interest if the final approved rates are lower than the interim levels. 

Electric customers pay four types of charges:

  1. Monthly service charge

  2. Energy charge

  3. Fuel Charge

  4. Taxes

The reasons identified by the utility for this proposed rate increase include:

  • Modernization of the transmission and distribution system 

  • Investments in cleaner electricity generation 

  • Update in jurisdictional allocation between Minnesota and North Dakota and South Dakota service territories 

  • Increased costs of providing utility service 

For more detailed information on the rate request, visit Otter Tail Power’s website. 

Important procedural deadlines

We will post important dates and deadlines when they are available. 

  • Public hearings - TBD 

  • Evidentiary hearings – August 3-4, 2026 

  • Public comment period closes – August 10, 2026 

  • Administrative law judge’s report due – November 9, 2026 

  • Commission order deadline – February 23, 2027 

Link to our calendar page
 
Rate Case Process
 
 Click on image to view a larger and printer friendly version of the process graphic

What to expect at a public meeting

The Commission’s public process gives stakeholders a chance to review utilities’ plans and helps ensure decisions are built on feedback and analysis from citizens, utilities, state agencies, clean energy organizations, labor unions, consumer advocates, and more. Public meetings are one of those opportunities to learn more and make a comment.   

  • Public meeting – There will be a short presentation about the plan and then an administrative law judge will take your verbal comments. All comments and names of commenters are part of the public record. 

  • Making a verbal comment – There will be a sign-up for those that want to make an oral comment at the meeting. Commenters will be called to speak based on the order they sign up. We advise signing up by the time the meeting starts. The judge may open up to additional comments if there is time 

  • There will be translation services for comments submitted in several languages, including Somali, Hmong, and Spanish. 

Additional ways to get involved

 
 
 
 
link to our comment page

If you cannot make the meeting, but still want to comment, there are multiple ways to reach the Commission.  

  • Email to consumer.puc@state.mn.us.  

  • Mail your comments to:
    Minnesota Public Utilities Commission,
    121 7th Place East, Suite 350,
    Saint Paul, MN 55101. 

  • Online form

When commenting on Otter Tail Power's electric rate case, reference docket number 25-359. Visit the comment page on the Commission’s website to learn more.