Otter Tail Corp 8-K, filed Sep 2, 2021
Otter Tail Corp (OTTR)
8-K
2021-09-02
For: 2021-09-01
View Original
Added on
April 11, 2026
About this 8-K
Otter Tail Corp filed this 8-K on September 2, 2021, reporting on events of September 1, 2021.
Items reported
- Item 8.01: Other events
- Item 9.01: Financial statements and exhibits
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): September 1, 2021
(Exact name of registrant as specified in its charter)
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(866 ) 410-8780
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(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 8.01 Other Events
Integrated Resource Plan
On September 1, 2021, Otter Tail Power Company (OTP), a wholly owned subsidiary of Otter Tail Corporation, filed its 2022 Integrated Resource Plan (2022 IRP) concurrently with regulators in the three states where OTP operates, the Minnesota Public Utilities Commission (MPUC), the North Dakota Public Service Commission (NDPSC), and the South Dakota Public Utility Commission (SDPUC). The 2022 IRP includes OTP’s preferred plan for meeting customers’ anticipated capacity and energy needs while maintaining system reliability and low electric service rates.
The major requests in OTP's preferred plan include:
–the addition of dual fuel capability at our Astoria Station natural gas plant;
–the addition of 150 megawatts of solar generation in 2025; and
–the commencement of the process of withdrawal from our 35 percent ownership interest in Coyote Station, a jointly owned, coal-fired generation plant, by December 31, 2028.
The preferred plan proposes to, subject to regulatory approval, create a regulatory asset to recover costs related to the future withdrawal from Coyote Station, including the net book value of the plant on the withdrawal date, anticipated decommissioning costs, and any costs incurred if a termination of the existing lignite sales agreement under which Coyote Station acquires all of its lignite coal fuel from a nearby mine is necessary. For its economic analysis, OTP developed an estimate of the reasonably foreseeable costs of withdrawing from Coyote Station at the end of 2028 of $68.5 million. These costs may differ from actual results due to the uncertainty and timing of future events associated with the terms and conditions of a withdrawal.
Forward-looking Statements
Certain information discussed in this Current Report on Form 8-K is forward-looking information that involves risks, uncertainties and assumptions. Such forward-looking statements, including our expectations regarding the regulatory proceedings, as well as assumptions and other statements are intended to be identified in this document by the words “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “objective,” “outlook,” “plan,” “possible,” “potential,” “preferred,’ “project,” “propose,” “should,” “will,” “would” and similar expressions. Actual results may vary materially. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information. The following factors, in addition to those discussed in Otter Tail Corporation's Annual Report on Form 10-K for the year ended Dec. 31, 2020, and subsequent filings with the Securities and Exchange Commission, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: uncertainty around the impacts and duration of the COVID-19 pandemic; operational safety; successful long-term operational planning; the negotiated terms of a withdrawal from Coyote Station; commodity risks associated with energy markets and production; rising energy prices and fuel costs; qualified employee work force and third-party contractor factors; ability to recover costs; changes in regulation; reductions in our credit ratings and the cost of maintaining certain contractual relationships; general economic conditions, including inflation rates, monetary fluctuations and their impact on capital expenditures and the ability of Otter Tail Corporation and its subsidiaries to obtain financing on favorable terms; availability or cost of capital; our customers’ and counterparties’ ability to pay their debts to us; assumptions and costs relating to funding our employee benefit plans and health care benefits; tax laws; effects of geopolitical events, including war and acts of terrorism; cyber security threats and data security breaches; seasonal weather patterns; changes in environmental laws and regulations; climate change and other weather; natural disaster and resource depletion, including compliance with any accompanying legislative and regulatory changes; and costs of potential regulatory penalties.
Item 9.01 Financial Statements and Exhibits
(d) | Exhibits | |||||||
| 99.1 | Press Release issued September 1, 2021 | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
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: September 2, 2021 | By: | /s/ Kevin G. Moug | ||||||
| Kevin G. Moug | ||||||||
| Chief Financial Officer | ||||||||
Exhibit 99.1
 | News release Contact: Stephanie Hoff shoff@otpco.com 218-739-8535 (office) 218-205-6179 (after hours) | |||||||
Cost and reliability drive Otter Tail Power Company’s 15-year resource plan
Fergus Falls, Minnesota, September 1, 2021: Today Otter Tail Power Company submitted its Integrated Resource Plan (IRP) to regulatory commissions in each of the three states it serves: Minnesota, North Dakota, and South Dakota.
The company spent two years analyzing robust market data and engaging with people and organizations across its service area, including updates with its regulatory commissions, who helped inform the analysis. “Planning a diverse mix of energy resources to reliably and economically serve our customers over the next 15 years is extremely complex,” said Otter Tail Power Company President Tim Rogelstad. “I am proud of our collaborative team for submitting a plan that enhances our ability to ensure our customers have the electricity they need, when they need it, at an affordable price, in an environmentally responsible way.”
In its preferred plan, Otter Tail Power Company is requesting authority to add dual fuel capability at the company’s Astoria Station, which is in South Dakota and is fueled in part by natural gas from North Dakota’s Williston Basin, add 150 megawatts of solar at a location yet to be determined, and commence the process of withdrawal from its 35% ownership interest in coal-fired Coyote Station in North Dakota in 2028.
Energy market conditions have been evolving over the past several years and are forecast to continue offering low-cost energy opportunities to utilities whose electric generation can quickly react to real-time market conditions, such as natural gas-fired resources.
“As we maintain and enhance resiliency, it’s our accountability to customers to pursue economical generation resources that give us greater control over whether or not to dispatch resources based on market conditions,” said Rogelstad. “Coyote Station has been a safe, reliable, cost-effective resource for our customers for 40 years. For that, we are grateful. Because more flexible and economical resource options are available as we look forward, Otter Tail Power Company is seeking to withdraw from our 35% ownership interest in the facility. It is important to understand this is not a decision to retire Coyote Station, which is a co-owned facility. Coyote Station’s future is not ours alone to determine.”
According to Rogelstad, Coyote Station owners continue to collaborate in analyzing data and weighing decisions that will impact the plant and each company’s employees, customers, and communities. “We are taking the time to get these important decisions right given the many stakeholders involved,” said Rogelstad. “It’s likely to be a couple of years before we know the path of any withdrawal from plant ownership and operation. While each of the owners is uniquely positioned to serve its customers—in terms of the amount of energy its customers need and the required production capacity of its generation resources—our shared priorities are to continue serving customers with reliable, low-cost electricity.” Otter Tail Power Company will continue to operate the plant.
Resource planning is an ever-evolving process. According to Rogelstad, Otter Tail Power Company will continue to monitor issues that could impact its plan, including changes to the Midcontinent Independent System Operator’s capacity construct, evolving energy markets, and current or future federal or state energy laws or regulations including the federal Regional Haze Rule.
By 2023 Otter Tail Power Company customers will receive approximately 35% of their energy from renewable resources. Assuming the current dispatch levels of co-owned units Coyote Station and Big Stone Plant remain as they are today, the company’s target is to reduce carbon emissions from generation resources it owns approximately 50% from 2005 levels by 2025 and 97% by 2050. “As we transition to a cleaner energy future, we’re keeping residential rates among the lowest in the nation,” said Rogelstad. “This is part of our mission and our ongoing commitment to our customers.”
About Otter Tail Power Company
Otter Tail Power Company, a subsidiary of Otter Tail Corporation (Nasdaq Global Select Market: OTTR), is headquartered in Fergus Falls, Minnesota. With a balanced commitment to environmental, economic, and community stewardship, the company provides electricity and energy services to approximately 230,000 people in Minnesota, North Dakota, and South Dakota. To learn more about Otter Tail Power Company visit otpco.com. To learn more about Otter Tail Corporation visit ottertail.com.