Otter Tail Power Company, a wholly owned subsidiary of Otter Tail Corporation, received approval from the South Dakota Public Utilities Commission on March 10 2026 for a settlement agreement that concludes the company’s rate proceeding in the state. The settlement grants the utility a net revenue increase of $3.3 million, representing 58 % of the original request and 75 % after rider adjustments, and confirms the company’s ability to recover costs and maintain its regulated rate base in South Dakota.
The approval also finalizes interim rates that began on December 1 2025. Customers will receive credits on their May 2026 bills to refund the difference between interim and final rates. In addition, the settlement includes a rate moratorium that extends through December 1 2029, providing a stable rate environment for the next four years. The additional revenue will be deployed toward Otter Tail’s $1.9 billion capital investment plan, which focuses on transmission upgrades, renewable generation, and battery storage, and supports the company’s long‑term earnings growth targets.
The settlement strengthens Otter Tail’s electric segment, the most predictable part of the company’s diversified portfolio. By securing the additional revenue, the utility can continue to fund infrastructure improvements that underpin future rate‑base growth, while the broader corporation can maintain its dividend policy and pursue growth in its manufacturing and plastics businesses. The approval signals that the company’s regulatory strategy is effective and that its rate‑setting process is aligned with the company’s capital‑investment priorities.
"Today's outcome reflects a constructive regulatory process, and is expected to support safe, reliable and economical electric service for our South Dakota customers. We appreciate the collaboration with the South Dakota Commission and staff throughout the proceeding," said Otter Tail Power President Tim Rogelstad.
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