Otter Tail Power seeks rate hikes

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BISMARCK — Otter Tail Power is seeking a 5 percent electric rate increase for its North Dakota customers, who will likely begin seeing an interim version of it by early January.

Separately, Otter Tail seeks to charge customers who will get wind-generated power from its portion of the new Ashtabula Wind Farm a separate fee above the usual rates.

Both matters are before the state Public Service Commission, which discussed them Thursday.

Otter Tail filed for the regular rate increase earlier this month. With the proposed 5 percent increase, it would get $6 million more in revenue per year from its electric customers. While the PSC considers the rate increase case over the next several months, it will likely grant the company an interim rate increase of 4 percent, giving the company an additional $5 million per year.

The PSC has until Jan. 3 to grant the company an interim rate increase.

The other proposed increase is known as a “renewable resource cost recovery rider 2009.” Under state law, utilities are allowed to charge extra for the cost of generating electricity through alternative forms such as wind farms.

Customers who are charged the rider for Ashtabula wind power would pay a proposed half-cent more per kilowatt hour, or about $3.82 more per month if they use 750 kilowatt hours per month.

The public has until Dec. 15 to send comments on the proposed renewable energy rider to the PSC or ask the PSC to hold a public hearing.

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