3 days ago
Otter Tail Power wants to raise electricity rates
PIERRE, S.D. (KELO) — South Dakota customers of Otter Tail Power might want to get ready to start paying more for their electricity.
The Fergus Falls, Minnesota-based utility wants to raise rates for the approximately 11,500 households, businesses and other entities in South Dakota who get their power from Otter Tail.
State plans to decrease its payments to the needy
The company has applied to the South Dakota Public Utilities Commission for approval. Otter Tail is seeking permission to increase net revenue $5,719,671, or 12.5 percent, from South Dakota customers.
Stuart D. Tommerdahl is Otter Tail's manager for regulation and retail energy solutions. He says in a letter that the proposed change in rates will result in an average increase of $14 permonth for residential customers under the rate design proposed by the company.
'The increase in rates is needed for the Company to recover increases in operating costs incurred by the Company in providing electric service to its customers and on-goinginvestments in infrastructure. This increase is necessary to continue to serve customersas reliably, economically, and environmentally responsibly as possible,' the letter said.
The PUC's three elected commissioners are scheduled to publicly begin considering the request at their next meeting scheduled for Tuesday, June 17.
A rate chart shows Otter Tail's proposed increases. Here are some examples:
A household using 932 kilowatt-hours per month currently pays $103.97 and would see a $14.39 increase.
A farm using 1,857 kilowatt-hours per month currently pays $191.52 and would see a $26.12 increase.
A general servicer customer using 2,751 kilowatt-hours per month currently pays $259.23 and would see a $34.77 increase.
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