City of Mahnomen February 16, 2016. Initial operation: Incorporated in 1907 and began producing electricity in 1909 at Dayton Hollow Dam on the Otter.

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Presentation transcript:

City of Mahnomen February 16, 2016

Initial operation: Incorporated in 1907 and began producing electricity in 1909 at Dayton Hollow Dam on the Otter Tail River near Fergus Falls, Minnesota. Total customers: 130,489 –Minnesota 60,809 –North Dakota 58,116 –South Dakota 11,564 Employees: approximately 780 Generating capability: 798 MW: About 20 percent of retail sales came from wind and hydro generation. Transmission lines: 5,634 miles

Otter Tail Power Company's mission: To produce and deliver electricity as reliably, economically, and environmentally responsibly as possible to the balanced benefit of customers, shareholders, and employees and to improve the quality of life in the areas in which we do business.

We accomplish our mission by making decisions based on our company's five core values: Integrity - We conduct business responsibly and honestly. Safety - We provide safe workplaces and require safe work practices. Customer focus - We provide reliable electricity and timely, courteous customer service. Resourcefulness - We draw on the ingenuity and expertise of various resources to create strategic, balanced plans. Community - We improve the quality of life in the areas in which we do business.

Mahnomen

City of Mahnomen: Served as a retail customer continuously since 1941 Total customers: Retail Sales: –$2,539,516 revenue –37,762,730 kwh –$ / kwh average rate

Reliability measurement2015 System Average Interruption Frequency Index 1.73 outages Customer Average Interruption Duration Index61 minutes 2015 System SAIFI

Reliability measurement City of Mahnomen Average System Average Interruption Frequency Index outages Customer Average Interruption Duration Index 82.6 minutes OTP-Mahnomen Electric System Solid 115-kv transmission line/substation Zero sustained interruptions in five years Excellent distribution system – Three feeders One sustained interruption in five years Vegetation management program $84,000 in 2008: $34,000in 2013; Scheduled again for 2017

Utility ClassAverage Price/kwh (2014*) Otter Tail Power (MN only)$ MN Investor Owned$ Municipalities$ Rural Cooperatives$ * Statistics from U.S. Energy Information Administration

UtilityAverage price/kwh (2014*) Otter Tail Power Company (City of Mahnomen only) $ Wild Rice Electric Cooperative$ Lake Region Electric Cooperative$ City of Hawley Municipal$ * Statistics from U.S. Energy Information Administration and OTP Statistics

Municipal acquisition of utility properties Minnesota Statutes 216B / Case decisions Depreciated value of utility assets Compensation for lost revenue Disconnection and reintegration costs Requires approval of city voters and MN PUC

Municipal acquisition of utility properties Minnesota Statutes 216B / Case decisions Depreciated value of utility assets: $500,000* Compensation for lost revenue: $8,000,000* Disconnection and reintegration costs: TBD * Estimates

Otter Tail Power Company / Mahnomen Highly competitive rates High-quality reliable service Long-term business/community relationship We believe it is in the best interests of our customers in Mahnomen to continue our relationship.

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