An Otter Tail Company

Water heating and off-peak rates

Low rates make electric water heating a cost-effective option

When you install an electric water heater you may place it on one of our controlled service rates and operate it for about 3.3¢ to 4¢ per kilowatt-hour depending on which rate program you select.

  • Controlled service that combines water heating with household heat, such as dual fuel, deferred load, or RDC programs, averages about 3.3¢ per kilowatt-hour.
  • Controlled service for water heaters alone averages 4¢ per kilowatt-hour.

Actual rates vary by state and control program.

To set up a controlled service connection, we supply the radio controls and metering, and you pay installation costs and for wiring to reach the second meter.

If you don't wish to install separate metering, you may connect your water heater to your general service and simply allow us to install a radio receiver to control it. You'll receive a credit of $2 a month in Minnesota and North Dakota or a credit of $3 a month in South Dakota.

Estimated operating cost

The average family of four uses 350 to 400 kilowatt-hours a month to heat water. That will cost about $15 to $20, depending on which interruptible rate is used.

NEW rebates effective November 1, 2008!

  • $200 for a new or replacement 80-gallon or larger electric water heater with a minimum efficiency of 90% that is placed on an off-peak rate.
  • $20 per kw on commercial water heating with a minimum efficiency of 90% when 12 kw or more and a minimum of 120 gallons of storage capacity is installed on an off-peak rate. A $5,000 rebate limit applies.
  • All rebate requests must include a receipt showing the manufacturer and model number and/or equipment efficiency level.

Let us help you select your best option.   Contact us.

Rates mentioned in web material subject to change

Some information reported on this web site does not reflect interim or final rate increases associated with current or pending rate cases. If you have questions about potential changes to your electric service rate, please contact Customer Service at 800-257-4044. We will update rate information after the Public Utilities Commissions or Public Service Commission for current or pending rate cases make their final decisions.