Item 8.01 Other Events
Integrated Resource Plan
On September 1, 2021, Otter Tail Power Company (OTP), a wholly owned subsidiary
of Otter Tail Corporation, filed its 2022 Integrated Resource Plan (2022 IRP)
concurrently with regulators in the three states where OTP operates, the
Minnesota Public Utilities Commission (MPUC), the North Dakota Public Service
Commission (NDPSC), and the South Dakota Public Utility Commission (SDPUC). The
2022 IRP includes OTP's preferred plan for meeting customers' anticipated
capacity and energy needs while maintaining system reliability and low electric
service rates.
The major requests in OTP's preferred plan include:
-the addition of dual fuel capability at our Astoria Station natural gas plant;
-the addition of 150 megawatts of solar generation in 2025; and
-the commencement of the process of withdrawal from our 35 percent ownership
interest in Coyote Station, a jointly owned, coal-fired generation plant, by
December 31, 2028.
The preferred plan proposes to, subject to regulatory approval, create a
regulatory asset to recover costs related to the future withdrawal from Coyote
Station, including the net book value of the plant on the withdrawal date,
anticipated decommissioning costs, and any costs incurred if a termination of
the existing lignite sales agreement under which Coyote Station acquires all of
its lignite coal fuel from a nearby mine is necessary. For its economic
analysis, OTP developed an estimate of the reasonably foreseeable costs of
withdrawing from Coyote Station at the end of 2028 of $68.5 million. These costs
may differ from actual results due to the uncertainty and timing of future
events associated with the terms and conditions of a withdrawal.
Forward-looking Statements
Certain information discussed in this Current Report on Form 8-K is
forward-looking information that involves risks, uncertainties and assumptions.
Such forward-looking statements, including our expectations regarding the
regulatory proceedings, as well as assumptions and other statements are intended
to be identified in this document by the words "anticipate," "believe," "could,"
"estimate," "expect," "intend," "may," "objective," "outlook," "plan,"
"possible," "potential," "preferred,' "project," "propose," "should," "will,"
"would" and similar expressions. Actual results may vary materially.
Forward-looking statements speak only as of the date they are made, and we
expressly disclaim any obligation to update any forward-looking information. The
following factors, in addition to those discussed in Otter Tail Corporation's
Annual Report on Form 10-K for the year ended Dec. 31, 2020, and subsequent
filings with the Securities and Exchange Commission, could cause actual results
to differ materially from management expectations as suggested by such
forward-looking information: uncertainty around the impacts and duration of the
COVID-19 pandemic; operational safety; successful long-term operational
planning; the negotiated terms of a withdrawal from Coyote Station; commodity
risks associated with energy markets and production; rising energy prices and
fuel costs; qualified employee work force and third-party contractor factors;
ability to recover costs; changes in regulation; reductions in our credit
ratings and the cost of maintaining certain contractual relationships; general
economic conditions, including inflation rates, monetary fluctuations and their
impact on capital expenditures and the ability of Otter Tail Corporation and its
subsidiaries to obtain financing on favorable terms; availability or cost of
capital; our customers' and counterparties' ability to pay their debts to us;
assumptions and costs relating to funding our employee benefit plans and health
care benefits; tax laws; effects of geopolitical events, including war and acts
of terrorism; cyber security threats and data security breaches; seasonal
weather patterns; changes in environmental laws and regulations; climate change
and other weather; natural disaster and resource depletion, including compliance
with any accompanying legislative and regulatory changes; and costs of potential
regulatory penalties.
Item 9.01  Financial Statements and Exhibits
 (d)   Exhibits

       99.1        Press Release   issued September 1, 2021
       104       Cover Page Interactive Data File (embedded within the Inline XBRL document).

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