By Dave Thompson
Bismarck, ND – North Dakota Public Service Commissioner Kevin Cramer says higher power prices being paid by Otter Tail Power company customers is a sign of things to come.
Because of a plant shutdown that went longer than expected, Otter Tail had to buy power on the open market. That means the utility's customers are paying more than five cents per kilowatt hour. They had been paying between two and three cents.
Cramer says he actually can see the higher cost trends continue for all energy sectors.
"New plant facilities are going to cost more," said Cramer. "Add to that transmission and the other infrastructure that's necessary. The price of oil is continuing to rise, and that just adds to the cost of every other fossil fuel."
Cramer also says mandates tied to global climate change will add to the costs as well.
"This illustrates just how bad it could become," said Cramer.
The PSC will be holding a hearing later this spring on Otter Tail's energy costs.