An Otter Tail Company

Bill questions

Frequently asked by customers

Why is my electric bill higher than usual?
When trying to determine why your bill is high, first compare the energy usage charts on this year's electric service statements with those on last year's statements. Are you using more electricity?

Check the section of your bill that explains the relative impact of outside temperatures. If temperatures were colder than last year your electric bill will be higher as well. To make a more thorough analysis, you may want to consider conducting an online energy audit of your home using EnergyWizard and read this overview of some factors that contribute to high bills. If you still have questions contact us.
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Where do I mail my payment?
You can mail your payment to: Remittance Processing Center, Otter Tail Power Company, P.O. Box 6000, Wahpeton, ND 58074
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What are my bill-paying options?
You can choose from six convenient options to pay your monthly electric bill. For more information, please visit the payment options section of this web site.
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What should I do if I don't have enough money to pay my bill?
If you're unable to pay your electric bill, contact us as soon as you can. If the problem is temporary, the more quickly you contact us, the more likely we can reach a suitable agreement. You may want to consider using our Even Monthly Payment plan, which makes budgeting easier. If the problem is likely to last for some time, you may want to contact your local energy assistance agency or Community Action Council for help.
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What is a customer connection charge?
The customer connection charge is a one-time charge that helps cover the cost of setting up your new electric service account. In North Dakota the connection charge is $9. In Minnesota and South Dakota the connection charge is $15.
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Do I have to pay a security deposit when I order new electric service?
New Otter Tail Power Company customers or previous customers who have a good credit history with us do not have to pay a security deposit. Previous customers have a good credit history if they've had fewer than three disconnect notices and haven't had service disconnected for not paying an electric bill within the last 12 months. If we collect a deposit, it will be based on two months' average bill.
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If I have to pay a deposit, will I receive interest on it?
Yes, your deposit draws interest. The interest rate is 3.3 percent in Minnesota, which is based on the average yield of one-year United States Treasury securities adjusted for constant maturity for the last full week in November. The interest rate is 7 percent in South Dakota. The interest rate is 3.2 percent in North Dakota, which is determined by the rate paid by the Bank of North Dakota on a six-month certificate of deposit as of the first business day of each year.
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Where can I find my account number on my bill?
You will find your customer account number on the lower right-hand corner of the white section of your bill and also the upper left-hand corner of the blue (middle) section of your bill under 'Status of Your Account'. See where to find your account number. Please use this number when requesting information about your account.
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Where do I find my account access code?
Your account access code is under 'Status of Your Account' on the middle section of your statement next to your account number. See where to find your account number. You will need your access code to register to use our online services.
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How can I find out the balance of my electric service account?
If you are a registered user of this site you can see your account balance by logging in and clicking on the View or pay your bill option in the login box from any page in this site.
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What is the customer charge or minimum charge that appears on my bill?
The customer or minimum charge on your monthly statement helps to recover costs for poles, wires, meters, customer service, and billing services that are associated with providing your electric service.
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Why do you estimate some electric bills? How do you determine the amount of an estimated bill?
We estimate bills when we are unable to read the meter. This may happen for a variety of reasons, including inclement weather or inaccessible meters. Estimating bills helps keep our costs down and our rates affordable.

To estimate a bill, we evaluate a customer's prior energy use patterns and adjust for the effect of temperatures during the billing period.
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What is the Resource Adjustment Cost on my bill?

In Minnesota the Resource Adjustment reflects:

  • Conservation Improvement Program surcharge, which is our investment in energy-efficiency programs that help customers save energy and is applied as a percentage of revenue.
  • Cost-of-energy adjustment, sometimes called fuel clause adjustment. This adjustment is calculated by adding the total cost of the fuel, fuel transportation, and purchased energy we use to provide dependable service to our customers and subtracting a base cost for that energy that is already part of the per-kilowatt-hour rate. If the amount is lower than the amount already included in the base cost, you receive a credit on your bill. If the amount is higher, you'll see a charge. Prior to 2002 the cost-of-energy adjustment was typically a small credit each month. Since then, as fuel and energy costs have risen, the adjustment has been a charge on customers' bills.

In North Dakota and South Dakota the Resource Adjustment reflects:

A cost-of-energy adjustment, sometimes called fuel clause adjustment. This adjustment is calculated by adding the total cost of the fuel, fuel transportation, and purchased energy we use to provide dependable service to our customers and subtracting a base cost for that energy that is already part of the per-kilowatt-hour rate. If the amount is lower than the amount already included in the base cost, you receive a credit on your bill. If the amount is higher, you'll see a charge. Prior to 2002 the cost-of-energy adjustment was typically a small credit each month. Since then, as fuel and energy costs have risen, the adjustment has been a charge on customers' bills.

To learn more about this adjustment read our brochure: What's driving your electricity costs?
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How is the cost-of-energy adjustment applied to my bill?
 The cost-of-energy component of the Resource Adjustment reflects changes in the cost for fuel we use to generate electricity and the energy we buy to supplement our own power plants minus the base amount included in the per-kilowatt-hour rate you pay. The cost-of-energy adjustment is calculated on a per-kilowatt-hour basis and is made up of the following items:

  • Cost of fuel we use to generate electricity.
  • Transportation costs of that fuel.
  • Costs we incur to buy energy to supplement our own power plants.

If Otter Tail Power Company purchases fuel and energy at less than the amount included in our base rate we pass the savings on to our customers in the form of a credit on their bills. If the cost is more than our base rate, the incremental difference is passed on to customers through the Resource Adjustment.
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Is the Resource Adjustment usually a credit or an additional charge?
 Before August 2002, customers typically received credits on their bills as a result of the cost-of-energy adjustment. Since that time , as the cost of fuel and energy has risen, the cost-of-energy adjustment has resulted in a charge on customers' bills.
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Why has the cost-of-energy adjustment been increasing? 
Several things contribute to the increase:

  • Higher fuel and transportation costs.
  • Higher natural gas and other fossil fuel prices impacting the cost of power purchased on the wholesale market and the cost of running peaking units that use natural gas and fossil fuel.
  • Increased demand for energy on the wholesale market.
  • Prolonged periods of extreme weather conditions.

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Where do you see cost-of-energy adjustments going in the future?
We expect to see a continued upward trend in the cost-of-energy adjustment charges.
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What is the Renewable Resource Adjustment cost on my bill?
The Renewable Resource Adjustment allows our company to recover our investments in renewable energy facilities that we own. The costs associated with renewable energy that we purchase flow through the Energy Adjustment in North Dakota and South Dakota, or the Resource Adjustment in Minnesota.

While you see this Renewable Resource Adjustment on your bill, the Energy Adjustment (North Dakota and South Dakota) or Resource Adjustment (Minnesota) likely is lower than what it would've been without the new generation. That’s because the energy that Otter Tail Power Company receives from owned renewable resources reduces our need to purchase higher-priced electricity from the wholesale energy market. Another potential benefit of adding new generation is that control hours for customers on interruptible rates have the potential to be reduced because of the availability of this new energy.

Once a year, by September 1, we’ll file to update our adjustment amount, with the new adjustment to become effective on January 1 of the following year, subject to regulatory Commission approval.

The Renewable Resource Adjustment currently applies to North Dakota customers' bills and we anticipate a decision in Minnesota in June. South Dakota does not have a law that allows for the Renewable Resource Adjustment. We expect to file a rate case there in the not-too-distant future and expect to include wind projects in base rates after the completion of that case.
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If I switch to natural gas, will I avoid this cost-of-energy adjustment?
 No, natural gas prices include a purchased gas adjustment, much like the cost-of-energy adjustment, that is passed directly to customers. Usually these fluctuations are greater than with electricity. Because the natural gas industry in the United States is largely deregulated, the wholesale price of gas fluctuates with supply and demand. At this time supply sources are tight and demand is high, resulting in higher prices for natural gas. Natural gas utilities, which transmit and distribute gas to consumers, pass price changes directly to consumers. In average years, the cost of gas accounts for about one-third of consumers' bills, with distribution costs and transmission costs accounting for the remaining portion. Holding consumption constant, a 10 percent change in the wholesale price of natural gas results in a 3.3 percent change in charges on consumers' bills.
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Why do controlled-service customers have a cost-of-energy adjustment?
 The cost-of-energy adjustment covers normal month-to-month variations in our own fuel costs for producing or purchasing energy to serve retail load. Because the actual control period for controlled-service customers is typically less than 10 percent of the time, controlled-service customers must help pay for the variations in fuel costs for the remainder of that time.

The costs to serve retail load, whether purchased energy or otherwise, is part of all rates. The change in the cost of fuel and purchased energy is passed on to customers on all rates except some interruptible rates. The cost-of-energy adjustment is applied to all except about 10 percent of retail kilowatt-hours sold.
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