Otter Tail Power Company is asking the North Dakota Public Service Commission for its OK to add a renewable energy charge to its monthly electric bills.
The proposal would add $1.08 to a customer using 1000 kilowatts. Otter Tail says this is to cover the costs of electricity generated by the Langdon, Ashtabula and Luverne wind farms.
Commissioner Brian Kalk says he’s concerned about this – because normally, the PSC grants those riders because new generation is being added.
"When we have these riders, and additional costs are added as additional facilities come on line, it forms a basis of why there are going to be more costs," said Kalk. "All three of these wind farms have been in operation already. So I will put the warning to Otter Tail -- it had better come through with a detailed calculation of why they want to raise these rates without adding new facilities."
The two other investor-owned utilities that serve North Dakota customers – MDU and Xcel – have these kinds of charges – but Kalk says they’re normally added when new power generation comes on-line.
