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Otter Tail probe halted

BISMARCK, N.D. — 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 Wednesday to end its probe with the conclusion that the utility should not be blamed for the problems.

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.

Those increased expenses were passed along to customers through their monthly bills from January through May, prompting a flood of ratepayer complaints.