Otter Tail Power Company Requests Minnesota Rate Increase

About this update from Otter Tail Corporation

FERGUS FALLS, Minn.--(BUSINESS WIRE)-- Otter Tail Power Company, a wholly owned subsidiary of Otter Tail Corporation (Nasdaq: OTTR), filed a request with the Minnesota Public Utilities Commission (PUC) to increase electric rates for its Minnesota customers. This request initiates an 18- to 24-month review process during which the PUC evaluates the company’s costs for providing electric service and then sets rates in a manner the PUC deems reasonable for both the company providing the service and the customers who depend on it. “Our customers, employees, friends, and neighbors see the costs of goods and services going up all around us, and we know that’s not easy,” said Otter Tail Power President Tim Rogelstad. “We’ve taken a hard look at our operations to manage expenses and improve efficiency before asking our customers to pay more. This request reflects what’s necessary to continue delivering the dependable service our communities count on.” As part of the state regulatory process, Otter Tail Power requested PUC permission to increase rates on an interim basis beginning January 1, 2026. If the PUC approves this request, the overall interim bill increase of approximately 12.6% remains in place until the PUC completes its highly structured review designed to balance public interest, utility viability, and legal rigor. During this 18- to 24-month interim period, a typical residential customer’s bill would increase approximately $13.15 a month; a typical business customer’s bill would increase approximately $43.67 a month. Each customer’s interim increase will be different based on the rates they’re on and how much energy they use. The company anticipates the PUC will make its final rate decision in the first quarter of 2027; final rates likely will not impact customers’ bills until the second or third quarter of 2027. If the PUC approves Otter Tail Power’s final rate request as filed, the net increase over what customers pay today would be approximately $44.8 million, or 17.7%. A typical residential customer’s bill would increase approximately $18.14 a month; a typical business customer’s bill would increase approximately $73.20 a month. As with interim rates, each customer’s final increase will be different based on the rates they’re on and how much energy they use. If final rates are lower than interim rates, customers will receive refunds with interest....

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