Detroit Lakes, Minn. (KDLM) – Otter Tail Power Company is asking the North Dakota Public Service Commission for an increase in its electric rates.
Otter Tail wants a more-than 8% increase that would total more than $40 million.
The company said the request is a result of increased costs to maintain a safe and reliable system while meeting a growing demand for electricity.
“We recognize our customers’ costs have gone up in many parts of their lives,” president Tim Rogelstad said. “While we’ve successfully managed expenses and continue to choose low-cost options to meet our customers’ needs, the cost of providing service is more than we can recover through our current base rates. Reviewing and updating our rates through rate cases allows us to continue to cost-effectively provide the reliable electricity our customers depend on.”
The utility said a portion of the amount, about $23 million, is already being billed to customers through riders, which allows it to recover some costs between rate cases.
While the request is under consideration, the company has asked for an interim rate increase of more than $12 million.
Otter Tail’s most recent electric rate base increase for North Dakota customers was in 2017.
The company has about 133,000 customers in North Dakota, South Dakota and Minnesota.
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