chuck macfarlane
Post on 26-Jun-2015
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2011 The State of Energy Summit
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Our 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.
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About us
• More than 100 years of service
• Serve 50,000 square-mile area
• 124,250 customers; 57,000 in North Dakota
• 423 communities; 224 in North Dakota(average population = 422)
• Average residential customer uses about 12,950 kwh yearly
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• Headquartered in Fergus Falls, MN, with North Dakota customer service centers in Devils Lake, Garrison, Jamestown, Oakes, Rugby, and Wahpeton
• 790 employees; 196 in North Dakota
• Generation
– Operate three coal-fired power plants, total about 1075 MW(Big Stone and Coyote co-owned with MDU, NEW, MPC)
– Own 120 MW of gas and oil peaking plants
– Own 138 MW of wind energy
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Wind energy
Langdon Wind Energy CenterJanuary 2008 – 40.5 MW owned
19.5 MW PPA
Ashtabula Wind Energy CenterNovember 2008 – 48 MW
Luverne Wind FarmSeptember 2009 – 49.5 MW
Otter Tail Power Company wind: ownership = 138 MW purchases = 45 MW
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Balanced resource mix2010 resource mix
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On for North Dakota
Assets and capital investmentYear Total North Dakota
2010 $1,330M $748M
Capital budgetDollars spent Total North Dakota
2008-2011 $397M $250M
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RatesState residential rate comparisons
¢/kwh
North Dakota state average 7.8
Otter Tail Power Company North Dakota 7.6
Minnesota state average 10.5
Otter Tail Power Company Minnesota 8.2
South Dakota state average 9.1
Otter Tail Power Company South Dakota 8.0
United States average 12.0
Otter Tail Power Company total system average
7.9
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On for business
• Paid $86 million to North Dakota vendors in 2010.
• Economic development
– Since 1989 we’ve helped create nearly 19,600 jobs and save nearly 4,200 jobs throughout our service area.
– In 2010 we helped create 424 jobs and save 10 jobs in North Dakota.
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ELECTRIC WIND ENERGY MANUFACTURING
& INFRASTRUCTURE
HEALTH SERVICES
Otter Tail Corporation
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Job opportunities (electric sector)
• Energy development
• Retirement bubble
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To develop energy…
• North Dakota has:
– Resources.
– Technology.
– State regulatory/permitting framework.
– Adequate water and labor.
• North Dakota is limited by:
– Energy transportation
– Federal regulatory uncertainty
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Energy transportation
• Increase North Dakota usage.
• Increase export.
– Additional oil and gas pipelines.
– Access to, and favorable prices for, rail
– Additional aluminum strand (coming with CapX2020 transmission projects)
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Transmission
• Improves reliability.
• Expands generation development.
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CapX2020
Impacts to North Dakota:
• Total value added (payroll): $13,674,976
• Total sales (steel, concrete, fuel, equipment, etc.): $31,884,800
• Additional jobs: 120 in each year of construction 2014, 2015
• Indirect business tax impact : $302,208
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Electric development job creation
Construction phase Operation$100M investment
in one yearDirect jobs Indirect jobs Direct jobs
Transmission 120 24 1-3
Wind 50 10 5
New coal 175 103 6-10
Emissions upgrades (coal plants)
130 78 3-5
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Retirement bubble
• 4000+ MW coal-fired generation, plants are similar age.
• Estimate 800 plant positions.
• Up to 40% retire in the next 10 years.
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