UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): December 30, 2024
(Exact name of registrant as specified in its charter)
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(866 ) 410-8780
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Item 8.01 Other Events
North Dakota Rate Case Settlement
On December 30, 2024, the North Dakota Public Service Commission (NDPSC) approved a settlement agreement between Otter Tail Power Company (OTP), a wholly owned subsidiary of Otter Tail Corporation, and certain interested parties in OTP’s general rate increase request originally filed on November 2, 2023. Per the terms of the settlement agreement, OTP will receive a $13.1 million, or 6.18%, net increase in annual base rate revenue. The net increase is reflective of an allowed rate of return on rate base of 7.53%, including an allowed rate of return on equity of 10.10% on an equity ratio of 53.5% of total capital. OTP’s revenue requirement was reduced by approximately $3.0 million primarily due to the inclusion of forecasted production tax credits plus adjustments for new customer load additions which were not included in OTP’s updated request filed on July 3, 2024. The settlement includes an earnings-sharing provision, whereby any earnings above a 10.20% return on equity will be shared, with 70% refunded to North Dakota customers and OTP retaining 30%. We anticipate the implementation of new base rates in North Dakota in the first quarter of 2025.
Forward-looking Statements
Except for historical information contained here, the statements in this Current Report on Form 8-K are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The word “anticipate,” and similar words and expressions are intended to identify forward-looking statements. Such statements are based upon the current beliefs and expectations of management. Forward-looking statements made herein, which include expectations regarding regulatory proceedings, as well as other assumptions and statements, involve known and unknown risks and uncertainties that may cause our actual results in current or future periods to differ materially from the forecasted assumptions and expected results. The Company’s risks and uncertainties include, among other things, long-term investment risk, seasonal weather patterns and extreme weather events, the impact of government legislation and regulation including foreign trade policy and environmental laws and regulations, the impact of climate change including compliance with legislative and regulatory changes to address climate change, operational and economic risks associated with our electric generating facilities, risks associated with energy markets, the availability and pricing of resource materials, and changing macroeconomic and industry conditions. These and other risks are more fully described in our filings with the Securities and Exchange Commission, including our most recently filed Annual Report on Form 10-K, as updated in subsequently filed Quarterly Reports on Form 10-Q, as applicable. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| OTTER TAIL CORPORATION | ||||||||
| Date: December 31, 2024 | By: | /s/ Todd R. Wahlund | ||||||
| Todd R. Wahlund | ||||||||
| Vice President and Chief Financial Officer | ||||||||