Minnesota Public Utilities Commission Approves Increase In Otter Tail AOA体育平台 Company Rates
Environmental technologies, infrastructure improvements, rising costs
On March 2, 2017, the Minnesota Public Utilities Commission (MPUC) granted Otter Tail AOA体育平台 Company a revenue increase to help pay for听environmental technologies,听infrastructure improvements, and rising costs听associated with听providing safe, reliable, environmentally responsible electricity.
Otter Tail AOA体育平台 Company asked permission from the MPUC, in its modified request, to increase rates by听$14.6 million, or about 7.4 percent. While it will take time to calculate the dollar impact of the MPUC鈥檚 decisions on numerous and complex issues, the rate change will be less than the company requested.
鈥淲e appreciate that the commissioners recognize听the importance of recovering costs听associated with serving our customers,鈥� said听Tim听Rogelstad, Otter Tail AOA体育平台 Company president. 鈥淲hile we didn鈥檛 receive the revenue increase that we thoroughly vetted in our testimony, the commissioners and the administrative law judge听(ALJ)听agreed with our听proposals on many听of the听issues in our case."听
The MPUC set Otter Tail AOA体育平台 Company鈥檚 return on equity at 9.41 percent, based on the Minnesota Department of Commerce鈥檚 proposed range of 8.13 percent to 9.85 percent. While the Department of Commerce argued for 8.98 percent, which is the midpoint of its range, the commissioners granted a听9.41听percent ROE based on Otter Tail AOA体育平台 Company鈥檚 exceptional performance and strong customer satisfaction, along with other factors specific to the company. "I鈥檓 disappointed in the range that the MPUC established,鈥� said Rogelstad. 鈥淏ut I鈥檓 pleased that the commissioners deemed it prudent to grant us an ROE at the upper end of its range. This ROE allows us to continue our commitment to growth and success for our company and the rural communities we serve.鈥�
As part of its initial filing, the company increased rates on an interim, or temporary, basis beginning听April 16, 2016. Because the MPUC final decision will result in a revenue increase of less than the company collected during interim rates, the company will refund customers the difference with interest. 鈥淭he parties have the opportunity to request rehearing on select items after receiving the final written order, so we don鈥檛 yet know exactly when the refund will occur,鈥� said听Rogelstad.听
Otter Tail AOA体育平台 Company will propose to implement the approved rates approximately 120 days after the MPUC final order becomes effective,听likely November 2017.听
About Otter Tail AOA体育平台 Company
Otter Tail AOA体育平台 Company, a subsidiary of Otter Tail Corporation (NASDAQ Global Select Market: OTTR), is headquartered in Fergus Falls, Minnesota. With a balanced commitment to environmental, economic, and community stewardship, the company provides electricity and energy services to more than a quarter million people in Minnesota, North Dakota, and South Dakota. To learn more about Otter Tail AOA体育平台 Company visit听otpco.com. To learn more about Otter Tail Corporation visit听.