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Otter Tail Power rate increase

Electric · Minnesota, North Dakota, South Dakota · Investor-owned utility · part of Otter Tail Corporation

Proposed

Last checked

In Minnesota, Otter Tail Power has a pending increase of about +$11.82/month for a typical 762 kWh home, if regulators approve the request.

Further step: +$6.32/month from 2027.

Details and sources · Estimate for your home

Rate changes, newest first

Minnesota electric rate increase request with interim rates

Base rate case · Minnesota · Electric

Proposed

Typical residential bill (762 kWh/month)

  • +$11.82/mostarting January 1, 2026Interim rates approved by the MPUC, subject to refund with interest if final rates are lower.
  • +$6.32/mothen from 2027Proposed final change of $18.14 minus the $11.82 interim change, both from Otter Tail's customer notice; based on the original $44.8M request.

Combined: +$18.14/mo

Typical bill before the change: $93.66/month

Proposed amounts; regulators may change them.

Filed
October 31, 2025
Decision expected
April 2027
Requested effective
2027
Requested increase
$42.3 million
Approved increase
Pending
Docket
E017/GR-25-359

Otter Tail Power asked Minnesota regulators on Oct. 31, 2025 for $44.8 million (17.7%) more a year, later revised to $42.3 million. Interim rates adding $28.6 million (11.3%) began Jan. 1, 2026, subject to refund. The company expects a decision in April 2027, with final rates in the second half of 2027.

Utility's stated reasons

  • Rates still based on 2021 costs
  • Faster recovery of Coyote Station coal plant investment
  • Requested 10.65% return on equity
Sources (2) · Verified against regulator or utility filings

Last verified Oct 12, 2026

South Dakota electric rate increase (settlement)

Base rate case · South Dakota · Electric

In effect

Typical residential bill (932 kWh/month)

  • +$8.97/mostarting April 1, 2026Settlement rates for a typical home; customer charge rises from $10 to $11. Higher interim rates from Dec. 1, 2025 were refunded with interest.
Filed
June 4, 2025
Decided
March 10, 2026
Effective
April 1, 2026
Requested increase
$5.72 million
Approved increase
$3.32 million
Docket
EL25-022

The South Dakota PUC approved a settlement with its staff giving Otter Tail Power $3.3 million (about 7.7%) of the $5.7 million it sought. A typical home using 932 kWh pays about $8.97 more a month instead of the $14.39 proposed. Rates took effect April 1, 2026, interim overcharges were refunded, and base rates are frozen until Dec. 1, 2029.

Utility's stated reasons

  • First South Dakota rate review since 2018
  • Rising costs of maintaining a reliable system
Sources (4) · Verified against regulator or utility filings

Last verified Oct 12, 2026

North Dakota electric rate increase (settlement)

Base rate case · North Dakota · Electric

In effect

Typical residential bill (875 kWh/month)

  • +$8.43/mostarting March 15, 2025Settlement increase for the average residential customer per the PSC order; customer charge rises from $14 to $17. Interim rates applied from Jan. 1, 2024.
Filed
November 2, 2023
Decided
December 30, 2024
Effective
March 15, 2025
Requested increase
$22.46 million
Approved increase
$13.1 million
Docket
PU-23-342

Otter Tail Power sought $17.4 million (8.43%) in North Dakota, later amended to $22.5 million (10.9%). The PSC approved a settlement on Dec. 30, 2024 for $13.1 million (6.18%), adding about $8.43 a month for an average home using 875 kWh. Final rates took effect March 15, 2025; 70% of earnings above a 10.2% return on equity go back to customers.

Utility's stated reasons

  • Return on 2024 rate base of $701.7 million
  • 10.1% return on equity with earnings sharing above 10.2%
Sources (2) · Verified against regulator or utility filings

Last verified Oct 12, 2026

Current average residential rate: 11.23¢/kWh (Residential revenue per kWh, all three states, 2025 (Otter Tail Corporation 10-K), 2025; source)

What it could mean for your bill

Sources state the impact for one typical home. Enter your own usage or bill for a rough estimate.

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Who decides

  • Minnesota Public Utilities Commission (Minnesota) · Search dockets
  • North Dakota Public Service Commission (North Dakota) · Search dockets
  • South Dakota Public Utilities Commission (South Dakota) · Search dockets

Utility website: www.otpco.com

Related

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Last checked Oct 12, 2026. Spotted something out of date? Tell us.