Steeped in the energy industry
We are in the know.

FERC Grants Otter Tail's Request for Incentive Rate Treatment for Two Transmission Projects

In our representation of Otter Tail Power Company (Otter Tail) before the Federal Energy Regulatory Commission (FERC), we obtained incentive rate treatment for its investments in two regional transmission projects: the Jamestown Project and the Big Stone South Project. These projects are part of a portfolio of eighteen Long-Range Transmission Plan projects that, together, will provide benefits such as reduced congestion, fuel savings, resource adequacy savings, avoided risk of load shedding, and decarbonization. 

FERC granted Otter Tail’s request for incentive rate treatments of inclusion in rate base of 100% of prudently incurred Construction Work in Progress and recovery of 100% of prudently incurred costs if the projects are cancelled or abandoned for reasons beyond Otter Tail’s control (an abandoned plant incentive). After evaluating Otter Tail’s explanation of how each element of the incentive package relates to each other and to the package as a whole, FERC found the total package of incentives requested was tailored to address the demonstrable risks or challenges faced by Otter Tail with these projects. As a result, FERC granted the requested incentive rate treatments.