Print this story | E-mail story | This story has 4 comments Add your own | iPod friendly
Otter Tail probe halted
Regulators say price spike unavoidable
Published Thursday, August 28, 2008
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.
Comments
The Daily Journal is happy to host community conversations about news and life in Fergus Falls and the surrounding area. As hosts, we expect guests will show respect for each other. That means we don't threaten or defame each other, and we keep conversations free of personal attacks. Witty is great. Abusive is not. If you think a post violates these standards, don't escalate the situation. Instead, flag the comment to alert us. We'll take action if necessary. It's not hard. This should be a place where people want to read and contribute -- a place for spirited exchanges of opinion. So those who persist with racist, defamatory or abusive postings risk losing the privilege to post at all.Posted by airbear (anonymous) on August 28, 2008 at 5:58 p.m. (Suggest removal)
Every business runs into its shortfalls understandably, but it would be nice if OTP was a little easier to work with regarding payment plans due to the increase in prices. I've had better customer service at the FFMG which doesn't say much!!
Posted by buzzman55 (anonymous) on August 28, 2008 at 11:33 p.m. (Suggest removal)
I say the pay hike was total bull and unjustified and the real reason is for higher profits.I wouldn't be surprised if Otter Tail Power sliped alittle extra money under the ND Commission's door so they would approve of this ungodly pay hike. More than likely whoever owns OT and their boardmembers wanted alittle more money to line their pockets and increase theyr'e stock options. This is common place these days with companies due to the monolopy laws and The Sherman Anti Trust Act Hacked by the Ronald Reagan Adminstration that allows public utilities and private corporations to charge what they want when they want to whoam they want. Every company it doing it today, screw the customer and make more money is the bottom line in today's dog eat dog world!
Posted by cascade (anonymous) on August 29, 2008 at 7:44 a.m. (Suggest removal)
ummm....what? Pay hike?
Posted by richan (anonymous) on August 29, 2008 at 4:18 p.m. (Suggest removal)
thats okay, cascade buzzman won't get the joke.
Post a comment
(Requires free registration.)