FERGUS FALLS, Minn. (KFGO) – Otter Tail Power Company has filed a request with the Minnesota Public Utilities Commission to increase electric rates for its Minnesota customers.
As part of the state regulatory process, Otter Tail Power requested PUC permission to increase rates on an interim basis beginning January 1, 2026.
If the PUC approves the request, the overall interim bill increase of approximately 12.6% would be in place until the PUC completes its review. During this 18 to 24-month interim period, a typical residential customer’s bill would increase approximately $13.15 a month; a typical business customer’s bill would increase approximately $43.67 a month. Each customer’s interim increase will be different based on the rates they’re on and how much energy they use.
If the PUC approves Otter Tail Power’s final rate request as filed, the net increase over what customers pay now would be $44.8 million, or 17.7%. A typical residential customer’s bill would increase by about $18.14 a month and a typical business customer’s bill would increase approximately $73.20 a month.
Otter Tail Power President Tim Rogelstad said “We understand rising electric costs are challenging for our customers. We also take very seriously our wholehearted commitment, and our regulatory obligation, to reliably serve those customers. This request is not being driven by data centers, despite what some national headlines might suggest. We would not ask for this rate increase if it didn’t reflect the real costs of maintaining and strengthening our electric system.”
According to Rogelstad, even with this increase, Otter Tail Power customers would still be paying less than they would almost anywhere else in the region. “While this is an impressive statement, we aren’t competing against our neighbor’s rates. We’re competing against our own,” said Rogelstad. “Our ability to keep our rates among the lowest in the region demonstrates our tradition of working hard for the economic viability of our customers and communities, and we’ll keep that tradition going.”
The company anticipates the PUC will make its final rate decision in the first quarter of 2027 will final rates likely not impacting customers’ bills until the second or third quarter.
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