(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Accelerated Filer ☐ | |||||||||||||||||
Non-Accelerated Filer ☐ | Smaller Reporting Company | Emerging Growth Company |
TABLE OF CONTENTS |
Description | Page | |||||||
ITEM 1. | ||||||||
ITEM 2. | ||||||||
ITEM 3. | ||||||||
ITEM 4. | ||||||||
ITEM 1. | ||||||||
ITEM 1A. | ||||||||
ITEM 6. | ||||||||
DEFINITIONS |
AGI | Advanced Grid Infrastructure Rider | OTC | Otter Tail Corporation | |||||||||||
ARP | Alternative Revenue Program | OTP | Otter Tail Power Company | |||||||||||
BTD | BTD Manufacturing, Inc. | NDDEQ | North Dakota Department of Environmental Quality | |||||||||||
CIP | Conservation Improvement Program | PIR | Phase-In Rider | |||||||||||
EAR | Energy Adjustment Rider | PSLRA | Private Securities Litigation Reform Act of 1995 | |||||||||||
EPA | Environmental Protection Agency | PTC | Production Tax Credits | |||||||||||
ESSRP | Executive Survivor and Supplemental Retirement Plan | PVC | Polyvinyl chloride | |||||||||||
FERC | Federal Energy Regulatory Commission | RHR | Regional Haze Rule | |||||||||||
GCR | Generation Cost Recovery Rider | ROE | Return on equity | |||||||||||
ISO | Independent System Operator | RRR | Renewable Resource Rider | |||||||||||
IRP | Integrated Resource Plan | SEC | Securities and Exchange Commission | |||||||||||
kwh | kilowatt-hour | SOFR | Secured Overnight Funds Rate | |||||||||||
Merricourt | Merricourt Wind Energy Center | T.O. Plastics | T.O. Plastics, Inc. | |||||||||||
MISO | Midcontinent Independent System Operator, Inc. | TCR | Transmission Cost Recovery Rider | |||||||||||
MPUC | Minnesota Public Utilities Commission | |||||||||||||
FORWARD-LOOKING INFORMATION |
ITEM 1. | FINANCIAL STATEMENTS |
(in thousands, except share data) | September 30, 2022 | December 31, 2021 | |||||||||
Assets | |||||||||||
Current Assets | |||||||||||
Cash and Cash Equivalents | $ | $ | |||||||||
Receivables, net of allowance for credit losses | |||||||||||
Inventories | |||||||||||
Regulatory Assets | |||||||||||
Other Current Assets | |||||||||||
Total Current Assets | |||||||||||
Noncurrent Assets | |||||||||||
Investments | |||||||||||
Property, Plant and Equipment, net of accumulated depreciation | |||||||||||
Regulatory Assets | |||||||||||
Intangible Assets, net of accumulated amortization | |||||||||||
Goodwill | |||||||||||
Other Noncurrent Assets | |||||||||||
Total Noncurrent Assets | |||||||||||
Total Assets | $ | $ | |||||||||
Liabilities and Shareholders' Equity | |||||||||||
Current Liabilities | |||||||||||
Short-Term Debt | $ | $ | |||||||||
Current Maturities of Long-Term Debt | |||||||||||
Accounts Payable | |||||||||||
Accrued Salaries and Wages | |||||||||||
Accrued Taxes | |||||||||||
Regulatory Liabilities | |||||||||||
Other Current Liabilities | |||||||||||
Total Current Liabilities | |||||||||||
Noncurrent Liabilities | |||||||||||
Pension Benefit Liability | |||||||||||
Other Postretirement Benefits Liability | |||||||||||
Regulatory Liabilities | |||||||||||
Deferred Income Taxes | |||||||||||
Deferred Tax Credits | |||||||||||
Other Noncurrent Liabilities | |||||||||||
Total Noncurrent Liabilities | |||||||||||
Capitalization | |||||||||||
Long-Term Debt, net of current maturities | |||||||||||
Shareholders' Equity | |||||||||||
Common Shares: at September 30, 2022 and December 31, 2021 | |||||||||||
Additional Paid-In Capital | |||||||||||
Retained Earnings | |||||||||||
Accumulated Other Comprehensive Loss | ( | ( | |||||||||
Total Shareholders' Equity | |||||||||||
Total Capitalization | |||||||||||
Total Liabilities and Shareholders' Equity | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands, except per-share amounts) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Operating Revenues | |||||||||||||||||||||||
Electric | $ | $ | $ | $ | |||||||||||||||||||
Product Sales | |||||||||||||||||||||||
Total Operating Revenues | |||||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||
Electric Production Fuel | |||||||||||||||||||||||
Electric Purchased Power | |||||||||||||||||||||||
Electric Operating and Maintenance Expenses | |||||||||||||||||||||||
Cost of Products Sold (excluding depreciation) | |||||||||||||||||||||||
Other Nonelectric Expenses | |||||||||||||||||||||||
Depreciation and Amortization | |||||||||||||||||||||||
Electric Property Taxes | |||||||||||||||||||||||
Total Operating Expenses | |||||||||||||||||||||||
Operating Income | |||||||||||||||||||||||
Other Income and Expense | |||||||||||||||||||||||
Interest Charges | |||||||||||||||||||||||
Nonservice Cost Components of Postretirement Benefits | ( | ( | |||||||||||||||||||||
Other Income (Expense), net | ( | ( | |||||||||||||||||||||
Income Before Income Taxes | |||||||||||||||||||||||
Income Tax Expense | |||||||||||||||||||||||
Net Income | $ | $ | $ | $ | |||||||||||||||||||
Weighted-Average Common Shares Outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Earnings Per Share: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | |||||||||||||||||||
Diluted | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net Income | $ | $ | $ | $ | |||||||||||||||||||
Other Comprehensive Income (Loss): | |||||||||||||||||||||||
Unrealized Loss on Available-for-Sale Securities, net of tax benefit of $ | ( | ( | ( | ( | |||||||||||||||||||
Pension and Other Postretirement Benefits, net of tax expense of $( | |||||||||||||||||||||||
Total Other Comprehensive Income (Loss) | ( | ( | |||||||||||||||||||||
Total Comprehensive Income | $ | $ | $ | $ |
(in thousands, except common shares outstanding) | Common Shares Outstanding | Par Value, Common Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders' Equity | |||||||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Stock Issued Under Share-Based Compensation Plans, net of shares withheld for employee taxes | ( | — | — | ||||||||||||||||||||||||||||||||
Stock Issued Under Dividend Reinvestment and Stock Purchase Plans, net of expenses and repurchased shares | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Net Income | — | — | — | — | |||||||||||||||||||||||||||||||
Other Comprehensive Loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Stock Compensation Expense | — | — | — | — | |||||||||||||||||||||||||||||||
Common Dividends ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Stock Issued Under Share-Based Compensation Plans, net of shares withheld for employee taxes | ( | — | — | ( | |||||||||||||||||||||||||||||||
Net Income | — | — | — | — | |||||||||||||||||||||||||||||||
Other Comprehensive Income | — | — | — | — | |||||||||||||||||||||||||||||||
Stock Compensation Expense | — | — | — | — | |||||||||||||||||||||||||||||||
Common Dividends ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Stock Issued Under Share-Based Compensation Plans, net of shares withheld for employee taxes | ( | — | — | ( | |||||||||||||||||||||||||||||||
Stock Issued Under Dividend Reinvestment and Stock Purchase Plans, net of expenses and repurchased shares | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Net Income | — | — | — | — | |||||||||||||||||||||||||||||||
Other Comprehensive Loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Stock Compensation Expense | — | — | — | — | |||||||||||||||||||||||||||||||
Common Dividends ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balance, September 30, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Stock Issued Under Share-Based Compensation Plans, net of shares withheld for employee taxes | ( | — | — | ( | |||||||||||||||||||||||||||||||
Stock Issued Under Dividend Reinvestment and Stock Purchase Plans, net of expenses and repurchased shares | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Net Income | — | — | — | — | |||||||||||||||||||||||||||||||
Other Comprehensive Income | — | — | — | — | |||||||||||||||||||||||||||||||
Stock Compensation Expense | — | — | — | — | |||||||||||||||||||||||||||||||
Common Dividends ($ | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Balance, September 30, 2021 | $ | $ | $ | $ | ( | $ |
Nine Months Ended September 30, | |||||||||||
(in thousands) | 2022 | 2021 | |||||||||
Operating Activities | |||||||||||
Net Income | $ | $ | |||||||||
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||||||||||
Depreciation and Amortization | |||||||||||
Deferred Tax Credits | ( | ( | |||||||||
Deferred Income Taxes | |||||||||||
Discretionary Contribution to Pension Plan | ( | ( | |||||||||
Allowance for Equity Funds Used During Construction | ( | ( | |||||||||
Stock Compensation Expense | |||||||||||
Other, Net | ( | ||||||||||
Changes in Operating Assets and Liabilities: | |||||||||||
Receivables | ( | ( | |||||||||
Inventories | ( | ||||||||||
Regulatory Assets | |||||||||||
Other Assets | ( | ||||||||||
Accounts Payable | ( | ||||||||||
Accrued and Other Liabilities | ( | ||||||||||
Regulatory Liabilities | ( | ||||||||||
Pension and Other Postretirement Benefits | |||||||||||
Net Cash Provided by Operating Activities | |||||||||||
Investing Activities | |||||||||||
Capital Expenditures | ( | ( | |||||||||
Proceeds from Disposal of Noncurrent Assets | |||||||||||
Cash Used for Investments and Other Assets | ( | ( | |||||||||
Net Cash Used in Investing Activities | ( | ( | |||||||||
Financing Activities | |||||||||||
Net Borrowings (Repayments) on Short-Term Debt | ( | ||||||||||
Proceeds from Issuance of Long-Term Debt | |||||||||||
Payments for Retirement of Long-Term Debt | ( | ( | |||||||||
Dividends Paid | ( | ( | |||||||||
Payments for Shares Withheld for Employee Tax Obligations | ( | ( | |||||||||
Other, net | ( | ( | |||||||||
Net Cash Used in Financing Activities | ( | ( | |||||||||
Net Change in Cash and Cash Equivalents | |||||||||||
Cash and Cash Equivalents at Beginning of Period | |||||||||||
Cash and Cash Equivalents at End of Period | $ | $ | |||||||||
Supplemental Disclosure of Noncash Investing Activities | |||||||||||
Accrued Property, Plant and Equipment Additions | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||
Operating Revenue | ||||||||||||||||||||||||||
Electric | $ | $ | $ | $ | ||||||||||||||||||||||
Manufacturing | ||||||||||||||||||||||||||
Plastics | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ | ||||||||||||||||||||||
Net Income (Loss) | ||||||||||||||||||||||||||
Electric | $ | $ | $ | $ | ||||||||||||||||||||||
Manufacturing | ||||||||||||||||||||||||||
Plastics | ||||||||||||||||||||||||||
Corporate | ( | ( | ( | ( | ||||||||||||||||||||||
Total | $ | $ | $ | $ |
(in thousands) | September 30, 2022 | December 31, 2021 | |||||||||
Identifiable Assets | |||||||||||
Electric | $ | $ | |||||||||
Manufacturing | |||||||||||
Plastics | |||||||||||
Corporate | |||||||||||
Total | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Operating Revenues | |||||||||||||||||||||||
Electric Segment | |||||||||||||||||||||||
Retail: Residential | $ | $ | $ | $ | |||||||||||||||||||
Retail: Commercial and Industrial | |||||||||||||||||||||||
Retail: Other | |||||||||||||||||||||||
Total Retail | |||||||||||||||||||||||
Transmission | |||||||||||||||||||||||
Wholesale | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Total Electric Segment | |||||||||||||||||||||||
Manufacturing Segment | |||||||||||||||||||||||
Metal Parts and Tooling | |||||||||||||||||||||||
Plastic Products and Tooling | |||||||||||||||||||||||
Scrap Metal Sales | |||||||||||||||||||||||
Total Manufacturing Segment | |||||||||||||||||||||||
Plastics Segment | |||||||||||||||||||||||
PVC Pipe | |||||||||||||||||||||||
Total Operating Revenue | |||||||||||||||||||||||
Less: Non-contract Revenues Included Above | |||||||||||||||||||||||
Electric Segment - ARP Revenues | ( | ( | ( | ( | |||||||||||||||||||
Total Operating Revenues from Contracts with Customers | $ | $ | $ | $ |
(in thousands) | September 30, 2022 | December 31, 2021 | |||||||||
Receivables | |||||||||||
Trade | $ | $ | |||||||||
Other | |||||||||||
Unbilled Receivables | |||||||||||
Total Receivables | |||||||||||
Less: Allowance for Credit Losses | ( | ( | |||||||||
Receivables, net of allowance for credit losses | $ | $ |
(in thousands) | 2022 | 2021 | |||||||||
Beginning Balance, January 1 | $ | $ | |||||||||
Additions Charged to Expense | |||||||||||
Reductions for Amounts Written Off, Net of Recoveries | ( | ( | |||||||||
Ending Balance, September 30 | $ | $ |
(in thousands) | September 30, 2022 | December 31, 2021 | |||||||||
Raw Material, Fuel and Supplies | $ | $ | |||||||||
Work in Process | |||||||||||
Finished Goods | |||||||||||
Total Inventories | $ | $ |
(in thousands) | September 30, 2022 | December 31, 2021 | |||||||||
Corporate-Owned Life Insurance Policies | $ | $ | |||||||||
Debt Securities | |||||||||||
Money Market Funds | |||||||||||
Mutual Funds | |||||||||||
Other Investments | |||||||||||
Total Investments | $ | $ |
(in thousands) | September 30, 2022 | December 31, 2021 | |||||||||
Electric Plant | |||||||||||
Electric Plant in Service | $ | $ | |||||||||
Construction Work in Progress | |||||||||||
Total Gross Electric Plant | |||||||||||
Less Accumulated Depreciation and Amortization | |||||||||||
Net Electric Plant | |||||||||||
Nonelectric Property, Plant and Equipment | |||||||||||
Nonelectric Property, Plant and Equipment in Service | |||||||||||
Construction Work in Progress | |||||||||||
Total Gross Nonelectric Property, Plant and Equipment | |||||||||||
Less Accumulated Depreciation and Amortization | |||||||||||
Net Nonelectric Property, Plant and Equipment | |||||||||||
Net Property, Plant and Equipment | $ | $ |
Period of | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||
(in thousands) | Recovery/Refund | Current | Long-Term | Current | Long Term | ||||||||||||||||||||||||
Regulatory Assets | |||||||||||||||||||||||||||||
Pension and Other Postretirement Benefit Plans1 | Various | $ | $ | $ | $ | ||||||||||||||||||||||||
Alternative Revenue Program Riders2 | Up to | ||||||||||||||||||||||||||||
Asset Retirement Obligations1 | Asset lives | ||||||||||||||||||||||||||||
ISO Cost Recovery Trackers1 | Up to | ||||||||||||||||||||||||||||
Unrecovered Project Costs1 | Up to | ||||||||||||||||||||||||||||
Deferred Rate Case Expenses1 | Various | ||||||||||||||||||||||||||||
Debt Reacquisition Premiums1 | |||||||||||||||||||||||||||||
Fuel Clause Adjustments1 | Up to | ||||||||||||||||||||||||||||
Other1 | Various | ||||||||||||||||||||||||||||
Total Regulatory Assets | $ | $ | $ | $ | |||||||||||||||||||||||||
Regulatory Liabilities | |||||||||||||||||||||||||||||
Deferred Income Taxes | Asset lives | $ | $ | $ | $ | ||||||||||||||||||||||||
Plant Removal Obligations | Asset lives | ||||||||||||||||||||||||||||
Fuel Clause Adjustments | Up to | ||||||||||||||||||||||||||||
Alternative Revenue Program Riders | Various | ||||||||||||||||||||||||||||
Pension and Other Postretirement Benefit Plans | Up to | ||||||||||||||||||||||||||||
Derivative Instruments | Various | ||||||||||||||||||||||||||||
Other | Various | ||||||||||||||||||||||||||||
Total Regulatory Liabilities | $ | $ | $ | $ | |||||||||||||||||||||||||
1Costs subject to recovery without a rate of return. | |||||||||||||||||||||||||||||
2Amount eligible for recovery includes an incentive or rate of return. |
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||
(in thousands) | Borrowing Limit | Amount Outstanding | Letters of Credit | Amount Available | Amount Available | ||||||||||||||||||||||||
OTC Credit Agreement | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
OTP Credit Agreement | |||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ |
(in thousands) | ||||||||||||||||||||||||||||||||
Borrower | Debt Instrument | Rate | Maturity | September 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||
OTC | Guaranteed Senior Notes | 12/15/26 | $ | $ | ||||||||||||||||||||||||||||
OTP | Series 2007B Senior Unsecured Notes | 08/20/22 | ||||||||||||||||||||||||||||||
OTP | Series 2007C Senior Unsecured Notes | 08/02/27 | ||||||||||||||||||||||||||||||
OTP | Series 2013A Senior Unsecured Notes | 02/27/29 | ||||||||||||||||||||||||||||||
OTP | Series 2019A Senior Unsecured Notes | 10/10/29 | ||||||||||||||||||||||||||||||
OTP | Series 2020A Senior Unsecured Notes | 02/25/30 | ||||||||||||||||||||||||||||||
OTP | Series 2020B Senior Unsecured Notes | 08/20/30 | ||||||||||||||||||||||||||||||
OTP | Series 2021A Senior Unsecured Notes | 11/29/31 | ||||||||||||||||||||||||||||||
OTP | Series 2007D Senior Unsecured Notes | 08/20/37 | ||||||||||||||||||||||||||||||
OTP | Series 2019B Senior Unsecured Notes | 10/10/39 | ||||||||||||||||||||||||||||||
OTP | Series 2020C Senior Unsecured Notes | 02/25/40 | ||||||||||||||||||||||||||||||
OTP | Series 2013B Senior Unsecured Notes | 02/27/44 | ||||||||||||||||||||||||||||||
OTP | Series 2018A Senior Unsecured Notes | 02/07/48 | ||||||||||||||||||||||||||||||
OTP | Series 2019C Senior Unsecured Notes | 10/10/49 | ||||||||||||||||||||||||||||||
OTP | Series 2020D Senior Unsecured Notes | 02/25/50 | ||||||||||||||||||||||||||||||
OTP | Series 2021B Senior Unsecured Notes | 11/29/51 | ||||||||||||||||||||||||||||||
OTP | Series 2022A Senior Unsecured Notes | 05/20/52 | ||||||||||||||||||||||||||||||
Total | $ | $ | ||||||||||||||||||||||||||||||
Less: | Current Maturities, Net of Unamortized Debt Issuance Costs | |||||||||||||||||||||||||||||||
Unamortized Long-Term Debt Issuance Costs | ||||||||||||||||||||||||||||||||
Total Long-Term Debt, Net of Unamortized Debt Issuance Costs | $ | $ |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
Pension Benefits (Pension Plan) | Pension Benefits (ESSRP) | Postretirement Benefits | |||||||||||||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
Service Cost | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Interest Cost | |||||||||||||||||||||||||||||||||||
Expected Return on Assets | ( | ( | |||||||||||||||||||||||||||||||||
Amortization of Prior Service Cost | ( | ( | |||||||||||||||||||||||||||||||||
Amortization of Net Actuarial Loss | |||||||||||||||||||||||||||||||||||
Net Periodic Benefit Cost | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
Pension Benefits (Pension Plan) | Pension Benefits (ESSRP) | Postretirement Benefits | |||||||||||||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||
Service Cost | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Interest Cost | |||||||||||||||||||||||||||||||||||
Expected Return on Assets | ( | ( | |||||||||||||||||||||||||||||||||
Amortization of Prior Service Cost | ( | ( | |||||||||||||||||||||||||||||||||
Amortization of Net Actuarial Loss | |||||||||||||||||||||||||||||||||||
Net Periodic Benefit Cost | $ | $ | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net Periodic Benefit Cost | $ | $ | $ | $ | |||||||||||||||||||
Net Amount Amortized (Deferred) Due to the Effect of Regulation | |||||||||||||||||||||||
Net Periodic Benefit Cost Recognized | $ | $ | $ | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Federal Statutory Rate | % | % | % | % | |||||||||||||||||||
Increases (Decreases) in Tax from: | |||||||||||||||||||||||
State Taxes on Income, Net of Federal Tax | |||||||||||||||||||||||
Production Tax Credits (PTCs) | ( | ( | ( | ( | |||||||||||||||||||
Amortization of Excess Deferred Income Taxes | ( | ( | ( | ( | |||||||||||||||||||
North Dakota Wind Tax Credit Amortization, Net of Federal Tax | ( | ( | ( | ( | |||||||||||||||||||
Corporate-Owned Life Insurance | ( | ( | |||||||||||||||||||||
Other, Net | ( | ( | ( | ||||||||||||||||||||
Effective Tax Rate | % | % | % | % |
Three Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
(in thousands) | Pension and Other Postretirement Benefits | Net Unrealized Gains (Losses) on Available-for-Sale Securities | Total | Pension and Other Postretirement Benefits | Net Unrealized Gains (Losses) on Available-for-Sale Securities | Total | |||||||||||||||||||||||||||||
Balance, Beginning of Period | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||||||
Other Comprehensive Loss Before Reclassifications, net of tax | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (1) | (2) | (1) | (2) | |||||||||||||||||||||||||||||||
Total Other Comprehensive Income (Loss) | ( | ( | ( | ||||||||||||||||||||||||||||||||
Balance, End of Period | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||||||
Nine Months Ended September 30, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
(in thousands) | Pension and Other Postretirement Benefits | Net Unrealized Gains (Losses) on Available-for-Sale Securities | Total | Pension and Other Postretirement Benefits | Net Unrealized Gains (Losses) on Available-for-Sale Securities | Total | |||||||||||||||||||||||||||||
Balance, Beginning of Period | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||
Other Comprehensive Loss Before Reclassifications, net of tax | ( | ( | ( | ( | |||||||||||||||||||||||||||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (1) | (2) | (1) | ( | (2) | ||||||||||||||||||||||||||||||
Total Other Comprehensive Income (Loss) | ( | ( | ( | ||||||||||||||||||||||||||||||||
Balance, End of Period | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||||||
(1) Included in the computation of net periodic pension and other postretirement benefit costs. See Note 7. | |||||||||||||||||||||||||||||||||||
(2) Included in other income (expense), net on the accompanying consolidated statements of income. |
Shares | Weighted Average Grant-Date Fair Value | ||||||||||
Nonvested, January 1, 2022 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | |||||||||||
Nonvested, September 30, 2022 | $ |
2022 | 2021 | ||||||||||
Risk-free interest rate | % | % | |||||||||
Expected term (in years) | |||||||||||
Expected volatility | % | % | |||||||||
Dividend yield | % | % | |||||||||
Shares | Weighted Average Grant-Date Fair Value | ||||||||||
Nonvested, January 1, 2022 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | |||||||||||
Nonvested, September 30, 2022 | $ |
Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Weighted Average Common Shares Outstanding – Basic | |||||||||||||||||||||||
Effect of Dilutive Securities: | |||||||||||||||||||||||
Stock Performance Awards | |||||||||||||||||||||||
Restricted Stock Awards | |||||||||||||||||||||||
Employee Stock Purchase Plan Shares and Other | |||||||||||||||||||||||
Dilutive Effect of Potential Common Shares | |||||||||||||||||||||||
Weighted Average Common Shares Outstanding – Diluted |
(in thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||||
September 30, 2022 | |||||||||||||||||
Assets: | |||||||||||||||||
Investments: | |||||||||||||||||
Money Market Funds | $ | $ | — | $ | — | ||||||||||||
Mutual Funds | — | — | |||||||||||||||
Corporate Debt Securities | — | — | |||||||||||||||
Government-Backed and Government-Sponsored Enterprises’ Debt Securities | — | — | |||||||||||||||
Derivative Instruments | — | — | |||||||||||||||
Total Assets | $ | $ | $ | — | |||||||||||||
Liabilities: | |||||||||||||||||
Derivative Instruments | $ | — | $ | $ | — | ||||||||||||
Total Liabilities | $ | — | $ | $ | — | ||||||||||||
December 31, 2021 | |||||||||||||||||
Assets: | |||||||||||||||||
Investments: | |||||||||||||||||
Money Market Funds | $ | $ | — | $ | — | ||||||||||||
Mutual Funds | — | — | |||||||||||||||
Corporate Debt Securities | — | — | |||||||||||||||
Government-Backed and Government-Sponsored Enterprises’ Debt Securities | — | — | |||||||||||||||
Derivative Instruments | — | — | |||||||||||||||
Total Assets | $ | $ | $ | — |
September 30, 2022 | December 31, 2021 | ||||||||||||||||||||||
(in thousands) | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||
Assets: | |||||||||||||||||||||||
Cash and Cash Equivalents | $ | $ | $ | $ | |||||||||||||||||||
Total | |||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Short-Term Debt | |||||||||||||||||||||||
Long-Term Debt | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
RESULTS OF OPERATIONS – QUARTER TO DATE |
(in thousands) | 2022 | 2021 | $ change | % change | |||||||||||||||||||
Operating Revenues | $ | 383,856 | $ | 316,294 | $ | 67,562 | 21.4 | % | |||||||||||||||
Operating Expenses | 267,723 | 241,766 | 25,957 | 10.7 | |||||||||||||||||||
Operating Income | 116,133 | 74,528 | 41,605 | 55.8 | |||||||||||||||||||
Interest Charges | 9,259 | 9,648 | (389) | (4.0) | |||||||||||||||||||
Nonservice Cost Components of Postretirement Benefits | (52) | 505 | (557) | (110.3) | |||||||||||||||||||
Other Income (Expense) | (174) | 203 | (377) | (185.7) | |||||||||||||||||||
Income Before Income Taxes | 106,752 | 64,578 | 42,174 | 65.3 | |||||||||||||||||||
Income Tax Expense | 22,513 | 11,824 | 10,689 | 90.4 | |||||||||||||||||||
Net Income | $ | 84,239 | $ | 52,754 | $ | 31,485 | 59.7 | % |
(in thousands) | 2022 | 2021 | $ change | % change | |||||||||||||||||||
Retail Revenues | $ | 120,177 | $ | 96,438 | $ | 23,739 | 24.6 | % | |||||||||||||||
Transmission Services Revenues | 13,156 | 13,300 | (144) | (1.1) | |||||||||||||||||||
Wholesale Revenues | 7,196 | 6,944 | 252 | 3.6 | |||||||||||||||||||
Other Electric Revenues | 2,218 | 2,093 | 125 | 6.0 | |||||||||||||||||||
Total Operating Revenues | 142,747 | 118,775 | 23,972 | 20.2 | |||||||||||||||||||
Production Fuel | 24,972 | 17,698 | 7,274 | 41.1 | |||||||||||||||||||
Purchased Power | 19,913 | 9,878 | 10,035 | 101.6 | |||||||||||||||||||
Operating and Maintenance Expenses | 39,799 | 36,465 | 3,334 | 9.1 | |||||||||||||||||||
Depreciation and Amortization | 17,669 | 17,874 | (205) | (1.1) | |||||||||||||||||||
Property Taxes | 4,438 | 4,474 | (36) | (0.8) | |||||||||||||||||||
Operating Income | $ | 35,956 | $ | 32,386 | $ | 3,570 | 11.0 | % | |||||||||||||||
2022 | 2021 | change | % change | ||||||||||||||||||||
Electric kilowatt-hour (kwh) Sales (in thousands) | |||||||||||||||||||||||
Retail kwh Sales | 1,275,051 | 1,076,580 | 198,471 | 18.4 | % | ||||||||||||||||||
Wholesale kwh Sales – Company Generation | 99,890 | 174,187 | (74,297) | (42.7) | |||||||||||||||||||
Heating Degree Days | 22 | 3 | 19 | 633.3 | |||||||||||||||||||
Cooling Degree Days | 376 | 463 | (87) | (18.8) | |||||||||||||||||||
2022 | 2021 | ||||||||||
Heating Degree Days | 43.1 | % | 5.8 | % | |||||||
Cooling Degree Days | 108.4 | % | 132.7 | % | |||||||
2022 vs Normal | 2022 vs 2021 | 2021 vs Normal | |||||||||||||||
Effect on Diluted Earnings Per Share | $ | 0.01 | $ | (0.02) | $ | 0.03 | |||||||||||
(in thousands) | 2022 | 2021 | $ change | % change | |||||||||||||||||||
Operating Revenues | $ | 98,767 | $ | 89,977 | $ | 8,790 | 9.8 | % | |||||||||||||||
Cost of Products Sold (excluding depreciation) | 77,764 | 70,148 | 7,616 | 10.9 | |||||||||||||||||||
Other Operating Expenses | 8,627 | 10,161 | (1,534) | (15.1) | |||||||||||||||||||
Depreciation and Amortization | 3,996 | 3,794 | 202 | 5.3 | |||||||||||||||||||
Operating Income | $ | 8,380 | $ | 5,874 | $ | 2,506 | 42.7 | % |
(in thousands) | 2022 | 2021 | $ change | % change | |||||||||||||||||||
Operating Revenues | $ | 142,342 | $ | 107,542 | $ | 34,800 | 32.4 | % | |||||||||||||||
Cost of Products Sold (excluding depreciation) | 61,597 | 64,064 | (2,467) | (3.9) | |||||||||||||||||||
Other Operating Expenses | 3,921 | 3,832 | 89 | 2.3 | |||||||||||||||||||
Depreciation and Amortization | 1,023 | 1,099 | (76) | (6.9) | |||||||||||||||||||
Operating Income | $ | 75,801 | $ | 38,547 | $ | 37,254 | 96.6 | % |
(in thousands) | 2022 | 2021 | $ change | % change | |||||||||||||||||||
Other Operating Expenses | $ | 3,976 | $ | 2,231 | $ | 1,745 | 78.2 | % | |||||||||||||||
Depreciation and Amortization | 28 | 48 | (20) | (41.7) | |||||||||||||||||||
Operating Loss | $ | 4,004 | $ | 2,279 | $ | 1,725 | 75.7 | % |
RESULTS OF OPERATIONS – YEAR TO DATE |
(in thousands) | 2022 | 2021 | $ change | % change | |||||||||||||||||||
Operating Revenues | $ | 1,158,800 | $ | 863,612 | $ | 295,188 | 34.2 | % | |||||||||||||||
Operating Expenses | 823,302 | 685,063 | 138,239 | 20.2 | |||||||||||||||||||
Operating Income | 335,498 | 178,549 | 156,949 | 87.9 | |||||||||||||||||||
Interest Charges | 27,198 | 28,601 | (1,403) | (4.9) | |||||||||||||||||||
Nonservice Cost Components of Postretirement Benefits | (824) | 1,511 | (2,335) | (154.5) | |||||||||||||||||||
Other Income | (802) | 2,095 | (2,897) | (138.3) | |||||||||||||||||||
Income Before Income Taxes | 308,322 | 150,532 | 157,790 | 104.8 | |||||||||||||||||||
Income Tax Expense | 66,143 | 25,380 | 40,763 | 160.6 | |||||||||||||||||||
Net Income | $ | 242,179 | $ | 125,152 | $ | 117,027 | 93.5 | % |
(in thousands) | 2022 | 2021 | $ change | % change | |||||||||||||||||||
Retail Revenues | $ | 347,419 | $ | 291,130 | $ | 56,289 | 19.3 | % | |||||||||||||||
Transmission Services Revenues | 37,409 | 37,085 | 324 | 0.9 | |||||||||||||||||||
Wholesale Revenues | 13,196 | 14,711 | (1,515) | (10.3) | |||||||||||||||||||
Other Electric Revenues | 6,088 | 5,703 | 385 | 6.8 | |||||||||||||||||||
Total Operating Revenues | 404,112 | 348,629 | 55,483 | 15.9 | |||||||||||||||||||
Production Fuel | 54,538 | 44,576 | 9,962 | 22.3 | |||||||||||||||||||
Purchased Power | 64,604 | 40,273 | 24,331 | 60.4 | |||||||||||||||||||
Operating and Maintenance Expenses | 126,460 | 114,615 | 11,845 | 10.3 | |||||||||||||||||||
Depreciation and Amortization | 54,441 | 53,335 | 1,106 | 2.1 | |||||||||||||||||||
Property Taxes | 13,304 | 13,136 | 168 | 1.3 | |||||||||||||||||||
Operating Income | $ | 90,765 | $ | 82,694 | $ | 8,071 | 9.8 | % | |||||||||||||||
2022 | 2021 | change | % change | ||||||||||||||||||||
Electric kilowatt-hour (kwh) Sales (in thousands) | |||||||||||||||||||||||
Retail kwh Sales | 4,076,769 | 3,511,730 | 565,039 | 16.1 | % | ||||||||||||||||||
Wholesale kwh Sales – Company Generation | 222,591 | 358,761 | (136,170) | (38.0) | |||||||||||||||||||
Heating Degree Days | 4,559 | 3,614 | 945 | 26.1 | |||||||||||||||||||
Cooling Degree Days | 530 | 700 | (170) | (24.3) | |||||||||||||||||||
2022 | 2021 | ||||||||||
Heating Degree Days | 114.0 | % | 89.9 | % | |||||||
Cooling Degree Days | 113.7 | % | 150.9 | % | |||||||
2022 vs Normal | 2022 vs 2021 | 2021 vs Normal | |||||||||||||||
Effect on Diluted Earnings Per Share | $ | 0.08 | $ | 0.06 | $ | 0.02 | |||||||||||
(in thousands) | 2022 | 2021 | $ change | % change | |||||||||||||||||||
Operating Revenues | $ | 306,921 | $ | 250,085 | $ | 56,836 | 22.7 | % | |||||||||||||||
Cost of Products Sold (excluding depreciation) | 242,440 | 189,183 | 53,257 | 28.2 | |||||||||||||||||||
Other Operating Expenses | 27,363 | 28,109 | (746) | (2.7) | |||||||||||||||||||
Depreciation and Amortization | 12,101 | 11,395 | 706 | 6.2 | |||||||||||||||||||
Operating Income | $ | 25,017 | $ | 21,398 | $ | 3,619 | 16.9 | % |
(in thousands) | 2022 | 2021 | $ change | % change | |||||||||||||||||||
Operating Revenues | $ | 447,767 | $ | 264,898 | $ | 182,869 | 69.0 | % | |||||||||||||||
Cost of Products Sold (excluding depreciation) | 201,146 | 169,584 | 31,562 | 18.6 | |||||||||||||||||||
Other Operating Expenses | 12,225 | 10,450 | 1,775 | 17.0 | |||||||||||||||||||
Depreciation and Amortization | 3,173 | 3,200 | (27) | (0.8) | |||||||||||||||||||
Operating Income | $ | 231,223 | $ | 81,664 | $ | 149,559 | 183.1 | % |
(in thousands) | 2022 | 2021 | $ change | % change | |||||||||||||||||||
Other Operating Expenses | $ | 11,393 | $ | 7,028 | $ | 4,365 | 62.1 | % | |||||||||||||||
Depreciation and Amortization | 114 | 179 | (65) | (36.3) | |||||||||||||||||||
Operating Loss | $ | 11,507 | $ | 7,207 | $ | 4,300 | 59.7 | % |
REGULATORY RATE MATTERS |
Recovery | Filing | Amount | Effective | |||||||||||||||||||||||||||||||||||
Mechanism | Jurisdiction | Status | Date | (in millions) | Date | Notes | ||||||||||||||||||||||||||||||||
CIP - 2022 | MN | Approved | 04/01/22 | $ | 10.8 | 10/01/22 | Includes recovery of energy conservation improvement costs as well as a demand side management financial incentive. | |||||||||||||||||||||||||||||||
CIP - 2021 | MN | Approved | 04/01/21 | 9.4 | 12/01/21 | Includes recovery of energy conservation improvement costs as well as a demand side management financial incentive. | ||||||||||||||||||||||||||||||||
TCR - 2021 | MN | Approved | 11/23/21 | 7.2 | 08/01/22 | Includes recovery of two new transmission projects. | ||||||||||||||||||||||||||||||||
RRR - 2021 | MN | Approved | 12/06/21 | 7.0 | 08/01/22 | Includes return on Hoot Lake Solar construction costs and costs associated with the acquisition of the Ashtabula III wind farm. | ||||||||||||||||||||||||||||||||
RRR - 2021 | ND | Approved | 03/07/21 | 11.8 | 04/01/21 | Includes recovery of Merricourt investment and operating costs. | ||||||||||||||||||||||||||||||||
RRR - 2022 | ND | Approved | 01/05/22 | 7.8 | 04/01/22 | Includes Merricourt recovery, the proposed purchase of Ashtabula III and credits related to deferred taxes and production tax credits. | ||||||||||||||||||||||||||||||||
TCR - 2022 | ND | Requested | 09/15/22 | 7.5 | 01/01/23 | Includes recovery of three new transmission projects, one transmission rebuild project and six transmission projects related to extending the useful life of transmission assets. | ||||||||||||||||||||||||||||||||
TCR - 2021 | ND | Approved | 09/15/21 | 6.1 | 01/01/22 | Includes recovery of three new transmission projects/programs. | ||||||||||||||||||||||||||||||||
TCR - 2020 | ND | Approved | 11/18/20 | 5.6 | 01/01/21 | Includes recovery of eight new transmission projects. | ||||||||||||||||||||||||||||||||
GCR - 2021 | ND | Approved | 03/01/21 | 5.2 | 07/01/21 | Includes recovery of Astoria Station, net of anticipated savings associated with the retirement of Hoot Lake Plant. | ||||||||||||||||||||||||||||||||
GCR - 2022 | ND | Approved | 03/01/22 | 3.3 | 07/01/22 | Annual update to generation cost recovery rider. | ||||||||||||||||||||||||||||||||
AGI - 2022 | ND | Requested | 07/08/22 | 3.1 | 01/01/23 | Includes recovery of the advanced metering infrastructure, outage management system and demand response projects. | ||||||||||||||||||||||||||||||||
PIR - 2022 | SD | Approved | 06/01/22 | 3.0 | 09/01/22 | Includes recovery of the Ashtabula III wind farm purchase, Merricourt, Astoria Station, and the Advanced Grid Infrastructure project, as well as load growth credits. | ||||||||||||||||||||||||||||||||
TCR - 2020 | SD | Approved | 01/29/20 | 2.3 | 03/02/20 | Annual update to transmission cost recovery rider. | ||||||||||||||||||||||||||||||||
TCR - 2022 | SD | Approved | 10/29/21 | 2.2 | 03/01/22 | Annual update to transmission cost recovery rider. | ||||||||||||||||||||||||||||||||
TCR - 2021 | SD | Approved | 02/19/21 | 2.2 | 03/01/21 | Includes recovery of two new transmission projects. | ||||||||||||||||||||||||||||||||
LIQUIDITY |
2022 | 2021 | ||||||||||||||||||||||||||||
(in thousands) | Borrowing Limit | Amount Outstanding | Letters of Credit | Amount Available | Amount Available | ||||||||||||||||||||||||
OTC Credit Agreement | $ | 170,000 | $ | — | $ | — | $ | 170,000 | $ | 147,363 | |||||||||||||||||||
OTP Credit Agreement | 170,000 | — | 9,919 | 160,081 | 88,315 | ||||||||||||||||||||||||
Total | $ | 340,000 | $ | — | $ | 9,919 | $ | 330,081 | $ | 235,678 |
(in thousands) | 2022 | 2021 | |||||||||
Net Cash Provided by Operating Activities | $ | 287,973 | $ | 154,752 | |||||||
(in thousands) | 2022 | 2021 | |||||||||
Net Cash Used in Investing Activities | $ | 127,556 | $ | 117,084 | |||||||
(in thousands) | 2022 | 2021 | |||||||||
Net Cash Used in Financing Activities | $ | 88,967 | $ | 37,559 | |||||||
CAPITAL REQUIREMENTS |
(in millions) | 2021 | 2022(1) | 2023 | 2024 | 2025 | 2026 | 2027 | Total 2023 - 2027 | |||||||||||||||||||||||||||||||||||||||||||||
Electric Segment: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Renewables and Natural Gas Generation | $ | 33 | $ | 88 | $ | 119 | $ | 88 | $ | 79 | $ | 10 | $ | 384 | |||||||||||||||||||||||||||||||||||||||
Technology and Infrastructure | 9 | 33 | 30 | 6 | 5 | 1 | 75 | ||||||||||||||||||||||||||||||||||||||||||||||
Distribution Plant Replacements | 40 | 33 | 37 | 38 | 38 | 43 | 189 | ||||||||||||||||||||||||||||||||||||||||||||||
Transmission (includes replacements) | 38 | 34 | 36 | 46 | 87 | 78 | 281 | ||||||||||||||||||||||||||||||||||||||||||||||
Other | 30 | 26 | 25 | 30 | 25 | 22 | 128 | ||||||||||||||||||||||||||||||||||||||||||||||
Total Electric Segment | $ | 140 | $ | 150 | $ | 214 | $ | 247 | $ | 208 | $ | 234 | $ | 154 | $ | 1,057 | |||||||||||||||||||||||||||||||||||||
Manufacturing and Plastics Segments | 32 | 34 | 48 | 53 | 29 | 25 | 24 | 179 | |||||||||||||||||||||||||||||||||||||||||||||
Total Capital Expenditures | $ | 172 | $ | 184 | $ | 262 | $ | 300 | $ | 237 | $ | 259 | $ | 178 | $ | 1,236 | |||||||||||||||||||||||||||||||||||||
Total Electric Utility Average Rate Base | $ | 1,575 | $ | 1,620 | $ | 1,750 | $ | 1,850 | $ | 1,990 | $ | 2,110 | $ | 2,210 | |||||||||||||||||||||||||||||||||||||||
Annual Rate Base Growth | 2.9 | % | 8.0 | % | 5.7 | % | 7.6 | % | 6.0 | % | 4.7 | % | |||||||||||||||||||||||||||||||||||||||||
(1) Includes actual results for the nine months ended September 30, 2022, and anticipated capital expenditures for the fourth quarter of 2022. |
CAPITAL RESOURCES |
(in thousands, except interest rates) | OTC Credit Agreement | OTP Credit Agreement | |||||||||
Borrowing Limit | $ | 170,000 | $ | 170,000 | |||||||
Borrowing Limit if Accordion Exercised1 | 290,000 | 250,000 | |||||||||
Amount Restricted Due to Outstanding Letters of Credit as of September 30, 2022 | — | 9,919 | |||||||||
Amount Outstanding as of September 30, 2022 | — | — | |||||||||
Average Amount Outstanding During the Nine Months Ended September 30, 2022 | 15,625 | 30,235 | |||||||||
Maximum Amount Outstanding During the Nine Months Ended September 30, 2022 | 58,715 | 74,519 | |||||||||
Interest Rate as of September 30, 2022 | 4.64 | % | 4.39 | % | |||||||
Maturity Date | September 30, 2026 | September 30, 2026 | |||||||||
1Each facility includes an accordion featuring allowing the borrower to increase the borrowing limit if certain terms and conditions are met. |
CRITICAL ACCOUNTING POLICIES INVOLVING SIGNIFICANT ESTIMATES |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 6. | EXHIBITS |
No. | Description | ||||
10.1 | |||||
10.2 | |||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101.SCH | —Inline XBRL Taxonomy Extension Schema Document | ||||
101.CAL | —Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.LAB | —Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE | —Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
101.DEF | —Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
104 | —Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | ||||
OTTER TAIL CORPORATION | ||||||||
By: | /s/ Kevin G. Moug | |||||||
Kevin G. Moug Chief Financial Officer and Senior Vice President (duly authorized officer and principal financial officer) | ||||||||
Dated: November 2, 2022 |
Date: November 2, 2022 | |||||
/s/ Charles S. MacFarlane Charles S. MacFarlane President and Chief Executive Officer |
Date: November 2, 2022 | |||||
/s/ Kevin G. Moug Kevin G. Moug Chief Financial Officer and Senior Vice President |
/s/ Charles S. MacFarlane Charles S. MacFarlane President and Chief Executive Officer | ||||||||
November 2, 2022 |
/s/ Kevin G. Moug Kevin G. Moug Chief Financial Officer and Senior Vice President | ||||||||
November 2, 2022 |
CONSOLIDATED BALANCE SHEETS (unaudited) (Parentheticals) - $ / shares |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Shareholders' Equity | ||
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, par value (in dollars per share) | $ 5 | $ 5 |
Common stock, shares outstanding (in shares) | 41,630,952 | 41,551,524 |
CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
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Operating Revenues | ||||
Total Operating Revenues | $ 383,856 | $ 316,294 | $ 1,158,800 | $ 863,612 |
Operating Expenses | ||||
Electric Production Fuel | 24,972 | 17,698 | 54,538 | 44,576 |
Electric Purchased Power | 19,913 | 9,878 | 64,604 | 40,273 |
Electric Operating and Maintenance Expenses | 39,799 | 36,465 | 126,460 | 114,615 |
Cost of Products Sold (excluding depreciation) | 139,361 | 134,212 | 443,586 | 358,767 |
Other Nonelectric Expenses | 16,524 | 16,224 | 50,981 | 45,587 |
Depreciation and Amortization | 22,716 | 22,815 | 69,829 | 68,109 |
Electric Property Taxes | 4,438 | 4,474 | 13,304 | 13,136 |
Total Operating Expenses | 267,723 | 241,766 | 823,302 | 685,063 |
Operating Income | 116,133 | 74,528 | 335,498 | 178,549 |
Other Income and Expense | ||||
Interest Charges | 9,259 | 9,648 | 27,198 | 28,601 |
Nonservice Cost Components of Postretirement Benefits | (52) | 505 | (824) | 1,511 |
Other Income (Expense), net | (174) | 203 | (802) | 2,095 |
Income Before Income Taxes | 106,752 | 64,578 | 308,322 | 150,532 |
Income Tax Expense | 22,513 | 11,824 | 66,143 | 25,380 |
Net Income | $ 84,239 | $ 52,754 | $ 242,179 | $ 125,152 |
Weighted-Average Common Shares Outstanding: | ||||
Basic (in shares) | 41,600 | 41,504 | 41,582 | 41,487 |
Diluted (in shares) | 41,974 | 41,869 | 41,930 | 41,795 |
Earnings Per Share: | ||||
Basic (in dollars per share) | $ 2.02 | $ 1.27 | $ 5.82 | $ 3.02 |
Diluted (in dollars per share) | $ 2.01 | $ 1.26 | $ 5.78 | $ 2.99 |
Electric | ||||
Operating Revenues | ||||
Total Operating Revenues | $ 142,747 | $ 118,775 | $ 404,112 | $ 348,629 |
Product Sales | ||||
Operating Revenues | ||||
Total Operating Revenues | $ 241,109 | $ 197,519 | $ 754,688 | $ 514,983 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
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Statement of Comprehensive Income [Abstract] | ||||
Net Income | $ 84,239 | $ 52,754 | $ 242,179 | $ 125,152 |
Other Comprehensive Income (Loss): | ||||
Unrealized Loss on Available-for-Sale Securities, net of tax benefit of $46, $7, $127, and $27 | (171) | (26) | (476) | (101) |
Pension and Other Postretirement Benefits, net of tax expense of $(37), $(51), $(8), and $(154) | 106 | 146 | 22 | 437 |
Total Other Comprehensive Income (Loss) | (65) | 120 | (454) | 336 |
Total Comprehensive Income | $ 84,174 | $ 52,874 | $ 241,725 | $ 125,488 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (Parentheticals) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
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Statement of Comprehensive Income [Abstract] | ||||
Unrealized Gain (Loss) on Available-for-Sale Securities, tax benefit | $ 46 | $ 7 | $ 127 | $ 27 |
Pension and Other Postretirement Benefit Plan, tax benefit (expense) | $ (37) | $ (51) | $ (8) | $ (154) |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (unaudited) (Parentheticals) - $ / shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
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Statement of Stockholders' Equity [Abstract] | ||||
Common Dividends (in dollars per share) | $ 0.4125 | $ 0.39 | $ 1.2375 | $ 1.17 |
Summary of Significant Accounting Policies |
9 Months Ended |
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Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Overview Otter Tail Corporation (OTC) and its subsidiaries (collectively, the "Company", "us", "our" or "we") form a diverse, multi-platform business consisting of a vertically integrated, regulated utility with generation, transmission and distribution facilities complemented by manufacturing businesses providing metal fabrication for custom machine parts and metal components, manufacturing of extruded and thermoformed plastic products, and manufacturing of polyvinyl chloride (PVC) pipe products. We classify our business into three segments: Electric, Manufacturing and Plastics. Basis of Presentation The unaudited consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the SEC for interim reporting. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles. In the opinion of management, we have included all adjustments, including normal recurring accruals, necessary for a fair presentation of the consolidated financial statements for the periods presented. The consolidated financial statements and condensed notes thereto should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021. Because of the seasonality of our businesses and other factors, the earnings for the three and nine months ended September 30, 2022 should not be taken as an indication of earnings for all or any part of the balance of the current year or as an indication of earnings for future years. Use of Estimates We use estimates based on the best information available in recording transactions and balances resulting from business operations. As better information becomes available or actual amounts are known, the recorded estimates are revised. Consequently, operating results can be affected by revisions to prior accounting estimates. Reclassifications Certain reclassifications of amounts previously reported have been made to the accompanying consolidated statements of shareholders' equity and consolidated statements of cash flows to maintain consistency and comparability between periods presented. The reclassifications had no impact on previously reported shareholders' equity, net cash provided by operating activities, net cash used in investing activities, net cash used in financing activities, or cash and cash equivalents.
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Segment Information |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information We classify our business into three segments, Electric, Manufacturing and Plastics, consistent with our business strategy, organizational structure and our internal reporting and review processes used by our chief operating decision maker to make decisions regarding allocation of resources, to assess operating performance and to make strategic decisions. Certain assets and costs are not allocated to our operating segments. Corporate operating costs include items such as corporate staff and overhead costs, the results of our captive insurance company and other items excluded from the measurement of operating segment performance. Corporate assets consist primarily of cash and cash equivalents, prepaid expenses, investments and fixed assets. Corporate is not an operating segment, rather it is added to operating segment totals to reconcile to consolidated amounts. Information for each segment and our unallocated corporate costs for the three and nine months ended September 30, 2022 and 2021 are as follows:
The following provides the identifiable assets by segment and corporate assets as of September 30, 2022 and December 31, 2021:
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Revenue |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Revenue Presented below are our operating revenues to external customers, in total and by amounts arising from contracts with customers and alternative revenue program (ARP) arrangements, disaggregated by revenue source and segment for the three and nine months ended September 30, 2022 and 2021:
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Select Balance Sheet Information |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Select Balance Sheet Information | Select Balance Sheet Information Receivables and Allowance for Credit Losses Receivables as of September 30, 2022 and December 31, 2021 are as follows:
The following is a summary of activity in the allowance for credit losses for the nine months ended September 30, 2022 and 2021:
Inventories Inventories consist of the following as of September 30, 2022 and December 31, 2021:
Investments The following is a summary of our investments as of September 30, 2022 and December 31, 2021:
The amount of unrealized gains and losses on debt securities as of September 30, 2022 and December 31, 2021 was not material and no unrealized losses were deemed to be other-than-temporary. In addition, the amount of unrealized gains and losses on marketable equity securities still held as of September 30, 2022 and December 31, 2021 was not material. Property, Plant and Equipment Major classes of property, plant and equipment as of September 30, 2022 and December 31, 2021 include:
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Regulatory Matters |
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Regulatory Assets and Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters | Regulatory Matters Regulatory Assets and Liabilities The following presents our current and long-term regulatory assets and liabilities as of September 30, 2022 and December 31, 2021 and the period we expect to recover or refund such amounts:
Minnesota Rate Case On November 2, 2020, Otter Tail Power Company (OTP) filed an initial request with the Minnesota Public Utilities Commission (MPUC) for an increase in revenue recoverable through base rates in Minnesota, and on December 3, 2020, the MPUC approved an interim annual rate increase of $6.9 million, or 3.2%, effective January 1, 2021. On February 1, 2022, the MPUC issued its written order on final rates. The key provisions of the order included a revenue requirement of $209.0 million, based on a return on rate base of 7.18% and an allowed return on equity of 9.48% on an equity ratio of 52.5%. The order also authorized recovery of our remaining Hoot Lake Plant net asset over a five-year period and approved the requested decoupling mechanism for most residential and commercial customer rate groups with a cap of 4% of annual base revenues. On May 12, 2022, OTP's final rate case compliance filing was approved by the MPUC. The filing included final revenue calculations, rate design and resulting tariff revisions, along with a determination of the interim rate refund, which resulted in an increase in revenues during the second quarter of 2022 of $4.1 million. Final rates took effect on July 1, 2022, and interim rate refunds of $15.3 million were applied to customer accounts in the third quarter of 2022.
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Short-Term and Long-Term Borrowings |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-Term and Long-Term Borrowings | Short-Term and Long-Term BorrowingsThe following is a summary of our outstanding short- and long-term borrowings by borrower, OTC or OTP, as of September 30, 2022 and December 31, 2021: Short-Term Debt The following is a summary of our lines of credit as of September 30, 2022 and December 31, 2021:
On October 31, 2022, OTC entered into a Fifth Amended and Restated Credit Agreement and OTP entered into a Fourth Amended and Restated Credit Agreement, in each case amending and restating the previously existing credit agreements to extend the maturity date of each credit facility from September 30, 2026 to October 29, 2027, and to replace LIBOR as a benchmark interest rate with the Secured Overnight Finance Rate (SOFR). The adoption of SOFR as a benchmark interest rate is in advance of the scheduled elimination of LIBOR as a benchmark interest rate on June 30, 2023. No other significant terms or conditions, including borrowing capacity, credit spreads or financial covenants, were modified under these amendments and restatements. Long-Term Debt The following is a summary of outstanding long-term debt by borrower as of September 30, 2022 and December 31, 2021:
On June 10, 2021, OTP entered into a Note Purchase Agreement pursuant to which OTP agreed to issue, in a private placement transaction, $230.0 million of senior unsecured notes consisting of (a) $40.0 million of 2.74% Series 2021A Senior Unsecured Notes due November 29, 2031, (b) $100.0 million of 3.69% Series 2021B Senior Unsecured Notes due November 29, 2051 and (c) $90.0 million of 3.77% Series 2022A Senior Unsecured Notes due May 20, 2052. In November 2021, OTP issued its Series 2021A and Series 2021B Notes for aggregate proceeds of $140.0 million, which were used to repay the Series 2011A Notes in full. In May 2022, OTP issued its Series 2022A Notes for proceeds of $90.0 million, which were used to repay the Series 2007B Senior Unsecured Notes at their maturity in August 2022, to repay short-term borrowings, to fund capital expenditures, and for other general corporate purposes. Financial Covenants Certain of OTC's and OTP's short- and long-term debt agreements require the borrower, whether OTC or OTP, to maintain certain financial covenants, including a maximum debt to total capitalization ratio of 0.60 to 1.00, a minimum interest and dividend coverage ratio of 1.50 to 1.00, and a maximum level of priority indebtedness. As of September 30, 2022, OTC and OTP were in compliance with these financial covenants.
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Employee Postretirement Benefits |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Postretirement Benefits | Employee Postretirement Benefits Pension Plan and Other Postretirement Benefits The Company sponsors a noncontributory funded pension plan (the "Pension Plan"), an unfunded, nonqualified Executive Survivor and Supplemental Retirement Plan (the "ESSRP"), both accounted for as defined benefit pension plans, and a postretirement healthcare plan accounted for as an other postretirement benefit plan. The following tables include the components of net periodic benefit cost of our defined benefit pension plans and other postretirement benefits for the three and nine months ended September 30, 2022 and 2021:
The following table includes the impact of regulation on the recognition of periodic benefit cost arising from pension and other postretirement benefits for the three and nine months ended September 30, 2022 and 2021:
We had no minimum funding requirements for our Pension Plan or any other postretirement benefit plans as of December 31, 2021, but made a discretionary contribution of $20.0 million to our Pension Plan in February 2022.
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Income Taxes |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income TaxesThe reconciliation of the statutory federal income tax rate to our effective tax rate for each of the three and nine months ended September 30, 2022 and 2021 is as follows:
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Commitments and Contingencies |
9 Months Ended |
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Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments Ashtabula III Purchase. On June 23, 2022, OTP exercised its option to acquire the Ashtabula III wind farm, a 62.4 megawatt wind farm located in eastern North Dakota, for $49.7 million, subject to certain closing adjustments. Since 2013, OTP has purchased the wind-generated electricity from the Ashtabula III wind farm pursuant to a purchase power agreement, and that agreement granted OTP the option to purchase the wind farm. The purchase has received regulatory approval. We anticipate the transaction will close, subject to certain customary closing conditions, in January 2023. Contingencies FERC ROE. In November 2013 and February 2015, customers filed complaints with the Federal Energy Regulatory Commission (FERC) seeking to reduce the return on equity (ROE) component of the transmission rates that Midcontinent Independent System Operator, Inc. (MISO) transmission owners, including OTP, may collect under the MISO tariff rate. FERC's most recent order, issued on November 19, 2020, adopted a revised ROE methodology and set the base ROE at 10.02% (10.52% with an adder) effective for the fifteen-month period from November 2013 to February 2015 and on a prospective basis beginning in September 2016. The order also dismissed any complaints covering the period from February 2015 to May 2016. On August 9, 2022, the U.S. Court of Appeals for the District of Columbia Circuit vacated the FERC order citing a lack of reasoned explanation by FERC in its adoption of its revised ROE methodology as outlined in its November 2020 order. The U.S. Court of Appeals remanded the matter to FERC to reopen the proceedings. Significant uncertainty exists as to how FERC will proceed upon remand and there is no prescribed timeline under which FERC must act. We have deferred recognition and recorded a refund liability of $2.5 million as of September 30, 2022. This refund liability reflects our best estimate of amounts previously collected from customers under the MISO tariff rate that may be required to be refunded to customers once all regulatory and judicial proceedings are complete and a final ROE is established for the periods outlined above. Regional Haze Rule (RHR). The RHR was adopted in an effort to improve visibility in national parks and wilderness areas. The RHR requires states, in coordination with the Environmental Protection Agency (EPA) and other governmental agencies, to develop and implement plans to achieve natural visibility conditions. The second RHR implementation period covers the years 2018-2028. States are required to submit a state implementation plan to assess reasonable progress with the RHR and determine what additional emission reductions are appropriate, if any. Coyote Station, OTP's jointly owned coal-fired power plant in North Dakota, is subject to assessment in the second implementation period under the North Dakota state implementation plan. The North Dakota Department of Environmental Quality (NDDEQ) submitted its state implementation plan to the EPA for approval in August 2022. In its plan, the NDDEQ concluded it is not reasonable to require additional emission controls during this planning period. The EPA has previously expressed disagreement with the NDDEQ's recommendation to forgo additional emission controls and has indicated that such a plan is not likely to be accepted. We cannot predict with certainty the impact the state implementation plan may have on our business until the state implementation plan has been approved or otherwise acted on by the EPA. However, significant emission control investments could be required and the recovery of such costs from customers would require regulatory approval. Alternatively, investments in emission control equipment may prove to be uneconomic and result in the early retirement of or the sale of our interest in Coyote Station, subject to regulatory approval. We cannot estimate the ultimate financial effects such a retirement or sale may have on our consolidated operating results, financial position or cash flows, but such amounts could be material and the recovery of such costs in rates would be subject to regulatory approval. Other Contingencies. We are party to litigation and regulatory matters arising in the normal course of business. We regularly analyze relevant information and, as necessary, estimate and record accrued liabilities for legal, regulatory enforcement and other matters in which a loss is probable of occurring and can be reasonably estimated. We believe the effect on our consolidated operating results, financial position and cash flows, if any, for the disposition of all matters pending as of September 30, 2022, other than those discussed above, will not be material.
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Stockholders' Equity |
9 Months Ended |
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Sep. 30, 2022 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Registration Statements On May 3, 2021, we filed a shelf registration statement with the SEC under which we may offer for sale, from time to time, either separately or together in any combination, equity, debt or other securities described in the shelf registration statement. No new debt or equity has been issued pursuant to the registration statement. The registration statement expires in May 2024. On May 3, 2021, we filed a second registration statement with the SEC for the issuance of up to 1,500,000 common shares under an Automatic Dividend Reinvestment and a Share Purchase Plan, which provides shareholders, retail customers of OTP and other interested investors methods of purchasing our common shares, by reinvesting their dividends or making optional cash investments. Shares purchased under the plan may be newly issued common shares or common shares purchased on the open market. During the nine months ended September 30, 2022, we issued 97,046 shares under this plan. We repurchased a sufficient number of shares on the open market to satisfy issuance under the plan; accordingly no proceeds from the issuance were received. As of September 30, 2022, there were 1,287,774 shares available for purchase or issuance under the plan. The registration statement expires in May 2024. Dividend Restrictions OTC is a holding company with no significant operations of its own. The primary source of funds for payments of dividends to OTC's shareholders is from dividends paid or distributions made by OTC's subsidiaries. As a result of certain statutory limitations or regulatory or financing agreements, the amount of distributions allowed to be made by OTC's subsidiaries or the amount of dividends paid by OTC could be restricted. Both the OTC Credit Agreement and OTP Credit Agreement contain restrictions on the payment of cash dividends upon a default or event of default, including failure to maintain certain financial covenants. As of September 30, 2022, we were in compliance with these financial covenants. Under the Federal Power Act, a public utility may not pay dividends from any funds properly included in a capital account. What constitutes “funds properly included in a capital account” is undefined in the Federal Power Act or the related regulations; however, the FERC has consistently interpreted the provision to allow dividends to be paid as long as i) the source of the dividends is clearly disclosed, ii) the dividend is not excessive and iii) there is no self-dealing on the part of corporate officials. The MPUC indirectly limits the amount of dividends OTP can pay to OTC by requiring an equity-to-total-capitalization ratio between 48.0% and 58.7% based on OTP’s capital structure petition effective by order of the MPUC on January 26, 2022. As of September 30, 2022, OTP’s equity-to-total-capitalization ratio, including short-term debt, was 54.9% and its net assets restricted from distribution totaled approximately $686.6 million. Under the MPUC order, total capitalization for OTP cannot exceed $1.7 billion.
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Accumulated Other Comprehensive Income (Loss) |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss)The following shows the changes in accumulated other comprehensive loss for the three and nine months ended September 30, 2022 and 2021:
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Share-Based Payments |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payments | Share-Based Payments Stock Compensation Expense Stock-based compensation expense arising from our employee stock purchase plan and share-based compensation plans, recognized within operating expenses in the consolidated statements of income, amounted to $0.6 million and $0.8 million for the three months ended September 30, 2022 and 2021, respectively, and $6.1 million and $6.4 million for the nine months ended September 30, 2022 and 2021, respectively. Restricted Stock Awards. We grant restricted stock awards to members of our Board of Directors and restricted stock units to certain key employees. The awards vest, depending on award type and recipient, either ratably over periods of or four years or cliff vest after four years. Vesting is accelerated in certain circumstances, including on retirement. The following is a summary of stock award activity for the nine months ended September 30, 2022:
The fair value of vested awards was $3.0 million and $2.1 million during the nine months ended September 30, 2022 and 2021, respectively. Stock Performance Awards. Stock performance awards are granted to executive officers and certain other key employees. The awards vest at the end of a three-year performance period. The number of common shares awarded, if any, at the end of the performance period ranges from zero to 150% of the target amount based on two performance measures: i) total shareholder return relative to a peer group and ii) return on equity. Vesting of the awards is accelerated in certain circumstances, including on retirement. The amount of common shares awarded on an accelerated vesting is based either on actual performance at the end of the performance period or the amount of common shares earned at target. The grant date fair value of stock performance awards granted during the nine months ended September 30, 2022 and 2021 was determined using a Monte Carlo fair value simulation model incorporating the following assumptions:
The risk-free interest rate was derived from yields on U.S. government bonds of a similar term. The expected term of the award is equal to the three-year performance period. Expected volatility was estimated based on actual historical volatility of our common stock. Dividend yield was estimated based on historic and future yield estimates. The following is a summary of stock performance award activity for the nine months ended September 30, 2022 (share amounts reflect awards at target): The fair value of vested awards was $5.1 million and $2.5 million during the nine months ended September 30, 2022 and 2021, respectively.
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Earnings Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings Per Share The numerator used in the calculation of both basic and diluted earnings per common share is net income. The denominator used in the calculation of basic earnings per common share is the weighted average number of common shares outstanding during the period. The denominator used in the calculation of diluted earnings per common share is derived by adjusting basic shares outstanding for the dilutive effect of potential common shares outstanding, which consist of time and performance based stock awards and employee stock purchase plan shares. The following includes the computation of the denominator for basic and diluted weighted-average shares outstanding for the three and nine months ended September 30, 2022 and 2021:
The amount of shares excluded from diluted weighted-average common shares outstanding because such shares were anti-dilutive was not material for the three and nine months ended September 30, 2022 and 2021.
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Derivative Instruments |
9 Months Ended |
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Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative InstrumentsOTP enters into derivative instruments to manage its exposure to future price variability and reduce volatility in prices for our retail customers. These derivative instruments are not designated as qualifying hedging transactions but provide for an economic hedge against future price variability. The instruments are recorded at fair value on the consolidated balance sheets. In accordance with rate-making and cost recovery processes, we recognize a regulatory asset or liability to defer losses or gains from derivative activity until settlement of the associated derivative instrument. As of September 30, 2022, OTP had outstanding pay-fixed, receive-variable swap agreements with an aggregate notional amount of 156,800 megawatt-hours of electricity, which will be settled periodically throughout 2022 and 2023. As of September 30, 2022, the fair value of these derivative instruments was $5.4 million, of which $5.5 million is included in other current assets and $0.1 million, which is included in other noncurrent liabilities, on the consolidated balance sheets. As of December 31, 2021, the fair value of these types of derivative contracts was $6.2 million, which is included in other current assets. No contracts settled during the three months ended September 30, 2022. During the nine months ended September 30, 2022, contracts matured and were settled in an aggregate amount of $2.8 million. There were no contracts settled during the three or nine months ended September 30, 2021 |
Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements The following tables present our assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021 classified by the input method used to measure fair value:
Level 1 fair value measurements are based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. The level 2 fair value measurements for government-backed and government-sponsored enterprises and corporate debt securities are determined on the basis of valuations provided by a third-party pricing service which utilizes industry accepted valuation models and observable market inputs to determine valuation. Some valuations or model inputs used by the pricing service may be based on broker quotes. The level 2 fair value measurements for derivative instruments are determined by using inputs such as forward electric commodity prices, adjusted for location differences. These inputs are observable in the marketplace throughout the full term of the instrument, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. In addition to assets recorded at fair value on a recurring basis, we also hold financial instruments that are not recorded at fair value in the consolidated balance sheets but for which disclosure of the fair value of these financial instruments is provided. The following reflects the carrying value and estimated fair value of these assets and liabilities as of September 30, 2022 and December 31, 2021:
The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash Equivalents: The carrying amount approximates fair value because of the short-term maturity of those instruments. Short-Term Debt: The carrying amount approximates fair value because the debt obligations are short-term and the balances outstanding are subject to variable rates of interest which reset frequently, a Level 2 fair value input. Long-Term Debt: The fair value of long-term debt is estimated based on current market indications for borrowings of similar maturities, a Level 2 fair value input.
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Summary of Significant Accounting Policies (Policies) |
9 Months Ended |
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Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the SEC for interim reporting. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles. In the opinion of management, we have included all adjustments, including normal recurring accruals, necessary for a fair presentation of the consolidated financial statements for the periods presented. The consolidated financial statements and condensed notes thereto should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021. Because of the seasonality of our businesses and other factors, the earnings for the three and nine months ended September 30, 2022 should not be taken as an indication of earnings for all or any part of the balance of the current year or as an indication of earnings for future years.
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Use of Estimates | Use of Estimates We use estimates based on the best information available in recording transactions and balances resulting from business operations. As better information becomes available or actual amounts are known, the recorded estimates are revised. Consequently, operating results can be affected by revisions to prior accounting estimates.
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Reclassifications | Reclassifications Certain reclassifications of amounts previously reported have been made to the accompanying consolidated statements of shareholders' equity and consolidated statements of cash flows to maintain consistency and comparability between periods presented. The reclassifications had no impact on previously reported shareholders' equity, net cash provided by operating activities, net cash used in investing activities, net cash used in financing activities, or cash and cash equivalents.
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Segment Information (Tables) |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | Information for each segment and our unallocated corporate costs for the three and nine months ended September 30, 2022 and 2021 are as follows:
The following provides the identifiable assets by segment and corporate assets as of September 30, 2022 and December 31, 2021:
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Revenue (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue | Presented below are our operating revenues to external customers, in total and by amounts arising from contracts with customers and alternative revenue program (ARP) arrangements, disaggregated by revenue source and segment for the three and nine months ended September 30, 2022 and 2021:
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Select Balance Sheet Information (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Receivables | Receivables as of September 30, 2022 and December 31, 2021 are as follows:
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Schedule of Activity in Allowance for Credit Losses | The following is a summary of activity in the allowance for credit losses for the nine months ended September 30, 2022 and 2021:
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Schedule of Inventories | Inventories consist of the following as of September 30, 2022 and December 31, 2021:
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Schedule of Investments | The following is a summary of our investments as of September 30, 2022 and December 31, 2021:
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Schedule of Property, Plant and Equipment | Major classes of property, plant and equipment as of September 30, 2022 and December 31, 2021 include:
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Regulatory Matters (Tables) |
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Assets and Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Regulatory Assets and Liabilities | The following presents our current and long-term regulatory assets and liabilities as of September 30, 2022 and December 31, 2021 and the period we expect to recover or refund such amounts:
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Short-Term and Long-Term Borrowings (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Line of Credit Facilities | The following is a summary of our lines of credit as of September 30, 2022 and December 31, 2021:
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Schedule of Debt | The following is a summary of outstanding long-term debt by borrower as of September 30, 2022 and December 31, 2021:
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Employee Postretirement Benefits (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Net Periodic Benefit Costs | The following tables include the components of net periodic benefit cost of our defined benefit pension plans and other postretirement benefits for the three and nine months ended September 30, 2022 and 2021:
The following table includes the impact of regulation on the recognition of periodic benefit cost arising from pension and other postretirement benefits for the three and nine months ended September 30, 2022 and 2021:
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Income Taxes (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | The reconciliation of the statutory federal income tax rate to our effective tax rate for each of the three and nine months ended September 30, 2022 and 2021 is as follows:
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Accumulated Other Comprehensive Income (Loss) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes in Accumulated Other Comprehensive Loss | The following shows the changes in accumulated other comprehensive loss for the three and nine months ended September 30, 2022 and 2021:
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Share-Based Payments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation Arrangements by Share-based Payment Award | The following is a summary of stock award activity for the nine months ended September 30, 2022:
The grant date fair value of stock performance awards granted during the nine months ended September 30, 2022 and 2021 was determined using a Monte Carlo fair value simulation model incorporating the following assumptions:
|
Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The following includes the computation of the denominator for basic and diluted weighted-average shares outstanding for the three and nine months ended September 30, 2022 and 2021:
|
Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Value Measurements, Recurring and Nonrecurring | The following tables present our assets and liabilities measured at fair value on a recurring basis as of September 30, 2022 and December 31, 2021 classified by the input method used to measure fair value:
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Schedule of Fair Value of Assets and Liabilities | The following reflects the carrying value and estimated fair value of these assets and liabilities as of September 30, 2022 and December 31, 2021:
|
Summary of Significant Accounting Policies (Details) |
9 Months Ended |
---|---|
Sep. 30, 2022
segment
| |
Accounting Policies [Abstract] | |
Number of operating segments | 3 |
Segment Information - Narrative (Details) |
9 Months Ended |
---|---|
Sep. 30, 2022
segment
| |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
Dec. 31, 2021 |
|
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | $ 383,856 | $ 316,294 | $ 1,158,800 | $ 863,612 | |
Net Income (Loss) | 84,239 | 52,754 | 242,179 | 125,152 | |
Identifiable Assets | 2,897,904 | 2,897,904 | $ 2,754,830 | ||
Corporate | |||||
Segment Reporting Information [Line Items] | |||||
Net Income (Loss) | (2,809) | (2,384) | (9,405) | (5,787) | |
Identifiable Assets | 116,699 | 116,699 | 57,445 | ||
Electric | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 142,747 | 118,775 | 404,112 | 348,629 | |
Net Income (Loss) | 24,847 | 22,528 | 62,938 | 55,547 | |
Identifiable Assets | 2,347,461 | 2,347,461 | 2,283,776 | ||
Manufacturing | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 98,767 | 89,977 | 306,921 | 250,085 | |
Net Income (Loss) | 6,219 | 4,200 | 17,858 | 15,290 | |
Identifiable Assets | 253,819 | 253,819 | 251,044 | ||
Plastics | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Total Operating Revenues | 142,342 | 107,542 | 447,767 | 264,898 | |
Net Income (Loss) | 55,982 | $ 28,410 | 170,788 | $ 60,102 | |
Identifiable Assets | $ 179,925 | $ 179,925 | $ 162,565 |
Select Balance Sheet Information - Schedule of Receivables (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Dec. 31, 2020 |
---|---|---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Trade | $ 167,480 | $ 142,297 | ||
Other | 9,052 | 10,591 | ||
Unbilled Receivables | 18,813 | 23,901 | ||
Total Receivables | 195,345 | 176,789 | ||
Less: Allowance for Credit Losses | (1,548) | (1,836) | $ (2,332) | $ (3,215) |
Receivables, net of allowance for credit losses | $ 193,797 | $ 174,953 |
Select Balance Sheet Information - Summary of Activity in Allowance for Credit Losses (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance, January 1 | $ 1,836 | $ 3,215 |
Additions Charged to Expense | 518 | 177 |
Reductions for Amounts Written Off, Net of Recoveries | (806) | (1,060) |
Ending Balance, September 30 | $ 1,548 | $ 2,332 |
Select Balance Sheet Information - Schedule of Inventories (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw Material, Fuel and Supplies | $ 74,249 | $ 72,882 |
Work in Process | 33,765 | 35,705 |
Finished Goods | 38,362 | 39,903 |
Inventories | $ 146,376 | $ 148,490 |
Select Balance Sheet Information - Schedule of Investments (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Corporate-Owned Life Insurance Policies | $ 37,288 | $ 41,078 |
Debt Securities | 8,710 | 9,202 |
Money Market Funds | 1,854 | 949 |
Mutual Funds | 5,084 | 5,432 |
Other Investments | 30 | 29 |
Total Investments | $ 52,966 | $ 56,690 |
Regulatory Matters - Narrative (Details) - Minnesota Rate Case - MPUC - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Feb. 01, 2022 |
Dec. 03, 2020 |
Sep. 30, 2022 |
Jun. 30, 2022 |
|
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Revenue, approved rate increase, amount | $ 6.9 | $ 15.3 | $ 4.1 | |
Revenue, approved rate increase, percent | 3.20% | |||
Revenue requirement amount | $ 209.0 | |||
Approved return on base rate, percent | 7.18% | |||
Approved return on equity, percent | 9.48% | |||
Approved equity ratio, percent | 52.50% | |||
Recovery period | 5 years | |||
Approved cap of annual base revenues, percent | 4.00% |
Short-Term and Long-Term Borrowings - Lines of Credit (Details) - USD ($) |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Line of Credit Facility [Line Items] | ||
Borrowing Limit | $ 340,000,000 | |
Amount Outstanding | 0 | $ 91,163,000 |
Letters of Credit | 9,919,000 | |
Amount Available | 330,081,000 | 235,678,000 |
OTC Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Borrowing Limit | 170,000,000 | |
Amount Outstanding | 0 | |
Letters of Credit | 0 | |
Amount Available | 170,000,000 | 147,363,000 |
OTP Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Borrowing Limit | 170,000,000 | |
Amount Outstanding | 0 | |
Letters of Credit | 9,919,000 | |
Amount Available | $ 160,081,000 | $ 88,315,000 |
Employee Postretirement Benefits - Composition of Periodic Benefit Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Retirement Benefits [Abstract] | ||||
Net Periodic Benefit Cost | $ 1,476 | $ 2,840 | $ 4,435 | $ 8,524 |
Net Amount Amortized (Deferred) Due to the Effect of Regulation | 499 | 8 | 823 | 15 |
Net Periodic Benefit Cost Recognized | $ 1,975 | $ 2,848 | $ 5,258 | $ 8,539 |
Employee Postretirement Benefits - Narrative (Details) $ in Millions |
1 Months Ended |
---|---|
Feb. 28, 2022
USD ($)
| |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions by employer | $ 20.0 |
Income Taxes - Effective Income Tax Rate (Details) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Income Tax Disclosure [Abstract] | ||||
Federal Statutory Rate | 21.00% | 21.00% | 21.00% | 21.00% |
Increases (Decreases) in Tax from: | ||||
State Taxes on Income, Net of Federal Tax | 5.00% | 5.00% | 5.00% | 5.00% |
Production Tax Credits (PTCs) | (3.60%) | (5.00%) | (4.10%) | (6.00%) |
Amortization of Excess Deferred Income Taxes | (0.90%) | (1.60%) | (0.70%) | (2.00%) |
North Dakota Wind Tax Credit Amortization, Net of Federal Tax | (0.10%) | (0.20%) | (0.20%) | (0.30%) |
Corporate-Owned Life Insurance | 0.20% | (0.30%) | 0.40% | (0.60%) |
Other, Net | (0.50%) | (0.60%) | 0.10% | (0.20%) |
Effective Tax Rate | 21.10% | 18.30% | 21.50% | 16.90% |
Commitments and Contingencies (Details) - Otter Tail Power Company $ in Millions |
Jun. 23, 2022
USD ($)
MWh
|
Sep. 30, 2022
USD ($)
|
---|---|---|
Other Commitments [Line Items] | ||
Option exercised | MWh | 62.4 | |
Payments to acquire wind farm | $ 49.7 | |
Federal Energy Regulatory Commission | ||
Other Commitments [Line Items] | ||
Estimated liability of refund obligation | $ 2.5 |
Stockholders' Equity (Details) - USD ($) $ in Thousands |
9 Months Ended | |||
---|---|---|---|---|
Jan. 26, 2022 |
May 03, 2021 |
Sep. 30, 2022 |
Dec. 31, 2021 |
|
Class of Stock [Line Items] | ||||
Total capitalization | $ 2,007,783 | $ 1,724,791 | ||
Otter Tail Power Company | ||||
Class of Stock [Line Items] | ||||
Equity to total capitalization ratio | 54.90% | |||
Net assets restricted from distribution | $ 686,600 | |||
Minimum | Otter Tail Power Company | Minnesota Public Utilities Commission | ||||
Class of Stock [Line Items] | ||||
Public utilities, requested equity capital structure, percentage | 48.00% | |||
Maximum | Otter Tail Power Company | ||||
Class of Stock [Line Items] | ||||
Total capitalization | $ 1,700,000 | |||
Maximum | Otter Tail Power Company | Minnesota Public Utilities Commission | ||||
Class of Stock [Line Items] | ||||
Public utilities, requested equity capital structure, percentage | 58.70% | |||
Second Shelf Registration | ||||
Class of Stock [Line Items] | ||||
Shelf registration (in shares) | 1,500,000 | |||
Number of shares issued (in shares) | 97,046 | |||
Number of shares available for grant (in shares) | 1,287,774 |
Share-Based Payments - Weighted-Average Assumptions (Details) - Stock Performance Awards |
9 Months Ended | |
---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.52% | 0.18% |
Expected term (in years) | 3 years | 3 years |
Expected volatility | 32.00% | 32.00% |
Dividend yield | 2.90% | 3.60% |
Earnings Per Share (Details) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Sep. 30, 2022 |
Sep. 30, 2021 |
Sep. 30, 2022 |
Sep. 30, 2021 |
|
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Weighted Average Common Shares Outstanding - Basic (in shares) | 41,600 | 41,504 | 41,582 | 41,487 |
Effect of Dilutive Securities: | ||||
Total Dilutive Shares (in shares) | 374 | 365 | 348 | 308 |
Weighted Average Common Shares Outstanding – Diluted (in shares) | 41,974 | 41,869 | 41,930 | 41,795 |
Stock Performance Awards | ||||
Effect of Dilutive Securities: | ||||
Effect of Dilutive Securities (in shares) | 276 | 262 | 251 | 209 |
Restricted Stock Awards | ||||
Effect of Dilutive Securities: | ||||
Effect of Dilutive Securities (in shares) | 97 | 88 | 96 | 82 |
Employee Stock Purchase Plan Shares and Other | ||||
Effect of Dilutive Securities: | ||||
Effect of Dilutive Securities (in shares) | 1 | 15 | 1 | 17 |
Derivative Instruments (Details) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2022
USD ($)
|
Sep. 30, 2021
USD ($)
|
Sep. 30, 2022
USD ($)
MWh
|
Sep. 30, 2021
USD ($)
|
Dec. 31, 2021
USD ($)
|
|
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Derivative Instruments | $ 5,400,000 | $ 5,400,000 | |||
Current derivative asset | 5,500,000 | 5,500,000 | $ 6,200,000 | ||
Noncurrent derivative liability | 100,000 | $ 100,000 | |||
Swap | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Notional amount of outstanding swap agreements | MWh | 156,800 | ||||
Settlement of derivative contract | $ 0 | $ 0 | $ 2,800,000 | $ 0 |
Fair Value Measurements - Schedule of Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Investments: | ||
Debt Securities | $ 8,710 | $ 9,202 |
Derivative Instruments | 5,400 | |
Level 1 | Fair Value, Recurring | ||
Investments: | ||
Money Market Funds | 1,854 | 949 |
Mutual Funds | 5,084 | 5,432 |
Total Assets | 6,938 | 6,381 |
Level 2 | Fair Value, Recurring | ||
Investments: | ||
Derivative Instruments | 5,532 | 6,214 |
Total Assets | 14,242 | 15,416 |
Liabilities: | ||
Derivative Instruments | 169 | |
Total Liabilities | 169 | |
Level 2 | Fair Value, Recurring | Corporate Debt Securities | ||
Investments: | ||
Debt Securities | 1,424 | 1,333 |
Level 2 | Fair Value, Recurring | Government-Backed and Government-Sponsored Enterprises’ Debt Securities | ||
Investments: | ||
Debt Securities | $ 7,286 | $ 7,869 |
Fair Value Measurements - Schedule of Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands |
Sep. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Carrying Amount | ||
Assets: | ||
Cash and Cash Equivalents | $ 72,987 | $ 1,537 |
Total Assets | 72,987 | 1,537 |
Liabilities: | ||
Short-Term Debt | 0 | 91,163 |
Long-Term Debt | 823,760 | 763,997 |
Total | 823,760 | 855,160 |
Fair Value | ||
Assets: | ||
Cash and Cash Equivalents | 72,987 | 1,537 |
Total Assets | 72,987 | 1,537 |
Liabilities: | ||
Short-Term Debt | 0 | 91,163 |
Long-Term Debt | 679,360 | 878,272 |
Total | $ 679,360 | $ 969,435 |
Label | Element | Value |
---|---|---|
Capital Expenditures Incurred but Not yet Paid | us-gaap_CapitalExpendituresIncurredButNotYetPaid | $ 14,358,000 |
Capital Expenditures Incurred but Not yet Paid | us-gaap_CapitalExpendituresIncurredButNotYetPaid | $ 12,438,000 |
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