ND regulators say electric price spike unavoidable


Protective Relay Training - Basic

Our customized live online or in‑person group training can be delivered to your staff at your location.

  • Live Online
  • 12 hours Instructor-led
  • Group Training Available
Regular Price:
$699
Coupon Price:
$599
Reserve Your Seat Today
Sharp increases in Otter Tail Power Co.'s recent electric costs, which tripled some customers' monthly bills, were an unfortunate result of power plant repair problems and could not have been avoided, state regulators say.

North Dakota's Public Service Commission, which has been investigating Otter Tail's handling of the short-term price spike, voted to end its probe with the conclusion that the utility should not be blamed for the problems.

"The commission realizes the hardships that this posed to Otter Tail customers," said Susan Wefald, the commission's president. "However, we also recognize that sometimes these things happen."

Otter Tail, based in Fergus Falls, Minn., has about 57,000 North Dakota electric ratepayers. It serves the cities of Wahpeton, Jamestown, Devils Lake and a number of smaller communities.

One of Otter Tail's primary suppliers of electricity, the Big Stone power station near Milbank in northeastern South Dakota, was shut down for two months late last year for maintenance.

Otter Tail had planned for the shutdown and arranged to buy replacement power in advance, commissioners said. But problems developed with the company that had been hired to do repairs, and the job was more extensive than the utility expected.

Otter Tail then had to buy more replacement power at costly rates, said Wefald and Commissioner Tony Clark. Those increased expenses were passed along to customers through their monthly bills from January through May, prompting a flood of ratepayer complaints.

Wefald and Clark said that although the higher bills hit customers' wallets, Otter Tail acted correctly in pressing ahead with repairs instead of deciding to limp through last winter and hope the maintenance could be done in the spring.

Delaying the repair work could have forced a longer plant shutdown, which would have meant buying even more expensive replacement electricity, the commissioners said.

"It was really making the best of a bad situation," Clark said. "It's not a conspiracy, it's not any sort of malfeasance or incompetence on the part of the utility. It's just bad luck."

Related News

ABL Secures Contract for UK Subsea Power

ABL has secured a contract for the UK Subsea Power Link, highlighting ABL Group’s marine…
View more

Opinion: Germany's drive for renewable energy is a cautionary tale

Germany Energiewende Lessons highlight climate policy tradeoffs, as renewables, wind and solar face grid constraints,…
View more

Fish boom prompts energy conglomerate to spend $14.5M to bury subsea cables

Maritime Link Cable Burial safeguards 200-kV subsea cables in the Cabot Strait as Emera and…
View more

Brazilian electricity workers call for 72-hour strike

Eletrobras Privatization Strike sparks a 72-hour CNE walkout by Brazil's electricity workers, opposing asset sell-offs…
View more

Basin Electric and Clenera Renewable Energy Announce Power Purchase Agreement for Montana Solar Project

Cabin Creek Solar Project Montana delivers 150 MW of utility-scale solar under a Power Purchase…
View more

Trump Tariff Threat Delays Quebec's Green Energy Bill

Quebec Energy Bill Tariff Delay disrupts Canada-U.S. trade, renewable energy investment, hydroelectric expansion, and clean…
View more

Sign Up for Electricity Forum’s Newsletter

Stay informed with our FREE Newsletter — get the latest news, breakthrough technologies, and expert insights, delivered straight to your inbox.

Electricity Today T&D Magazine Subscribe for FREE

Stay informed with the latest T&D policies and technologies.
  • Timely insights from industry experts
  • Practical solutions T&D engineers
  • Free access to every issue

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.