BISMARCK, N.D. (Prairie Public) – The North Dakota Public Service commission has approved a settlement in Otter Tail Power Company’s electric rate increase request.
In November 2023, Otter Tail filed for an 8.43% rate increase. It was granted an interim increase, while the case was pending.
Under the settlement, rates would increase by 6.18%.
“The settlement agreement will result in an increase of $8.43 per month to the average residential customer using 875 kilowatts,” PSC Commissioner Sheri Haugen-Hoffart said.
Haugen-Hoffart said the agreement also provides for “over-earnings sharing.”
“70% of actual earnings in excess of a 10.2% rate-of-return will be returned to customers with Otter Tail retaining the remaining 30%,” Haugen-Hoffart said.
Otter Tail said the new rates will take effect during the first quarter of 2025.
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