The North Dakota Public Service Commission has approved a settlement in Otter Tail Power Company’s electric rate increase request.
In November of 2023, Otter Tail filed for an 8.43 percent rate increase. It was granted an interim increase, while the case was pending.
The settlement was worked out between two interveners and PSC staff. Under it, rates would increase by 6.18 percent.
"The agreement will result in an increase of $8.43 per month to the average residential customer using 875 kilowatts," said Commissioner Sheri Haugen-Hoffart.
Hoffart said the agreement also provides for “over-earnings sharing.”
"Seventy percent of actual earnings in excess of a 10.2 percent rate of return will be returned to customers, with Otter Tail retaining the remaining 30 percent," Hoffart said.
Otter Tail says the new rates will take effect during the first quarter of 2025.
