Otter Tail Corporation
| Company type | Public |
|---|---|
| Industry | Electric power, Manufacturing |
| Founded | 1907 |
| Headquarters | Fergus Falls , United States |
Area served | North Dakota, Minnesota, South Dakota |
| Products | Electric power, manufacturing products |
Number of employees | 750+ (2007) |
| Website | www |
Otter Tail Corporation is a company specializing in electric power and manufacturing, with its main office located in Fergus Falls, Minnesota. Its portfolio of subsidiaries includes Otter Tail Power Company, BTD Manufacturing Inc., T.O. Plastics Inc., Northern Pipe Products Inc., and Vinyltech Corporation.
By 2007, Otter Tail Power Company provided retail electricity to more than 423 communities and supplied power to roughly 14 municipal utilities. The company employed over 750 individuals, maintained a generation capacity of 660 megawatts, and owned an extensive network of electrical transmission lines, predominantly operating at 41.6 kV. Its clientele numbered approximately 128,500 customers across the states of North Dakota, Minnesota, and South Dakota.
History
Founded in 1907 with the purpose of constructing the Dayton Hollow Dam near Fergus Falls, Otter Tail began delivering electricity in April 1909 by transmitting power at 22 kV over a line to serve Northern Light Electric Company's customers in Wahpeton, North Dakota. Initial wholesale agreements included Breckenridge and Fergus Falls in Minnesota, followed by rapid growth through acquiring or linking electric distribution networks throughout Minnesota and North Dakota.
During the 1920s, the utility served about 44 communities primarily within Otter Tail County but soon expanded westward into eastern North Dakota. By 1924, its service extended to over 100 towns, and by the end of the decade, it covered more than 310 towns—tripling its service area. Despite economic hardships during the Great Depression, Otter Tail remained relatively stable and resumed expansion by the late 1930s.
From 1940 to 1944, the company grew by merging with six smaller utilities that were divested following the Public Utility Holding Company Act of 1935. This expansion increased its service territory to roughly , an area comparable in size to Wisconsin. The Red River Valley continued to be served by Northern States Power Company (currently Xcel Energy).
After reaching a maximum coverage of 496 towns in 1944, Otter Tail’s service area experienced gradual adjustments influenced by changes in wholesale suppliers and population trends. Significant growth included acquiring the municipal utility of Fergus Falls in 1953 and incorporating several towns in Polk County previously served by Northern States Power Company by the late 1960s.
Plans for a merger with Montana-Dakota Utilities were ultimately abandoned due to regulatory obstacles. Facing stagnant utility revenue during the 1990s, Otter Tail established Varistar to oversee its non-utility operations. In 2001, the corporation rebranded as Otter Tail Corporation, designating the utility business as a division; by late 2008, utility activities were reorganized into a subsidiary under the corporate umbrella.
Hydropower
Initially, Otter Tail Power developed multiple hydroelectric facilities to meet its energy demands, which were sufficient until expansion during the 1920s exceeded dam capacity. Presently, hydropower represents roughly 1% of the company's total energy production. The hydroelectric dams include Dayton Hollow (commissioned in 1909), Hoot Lake (built between 1914 and 1918), Pisgah (1918), Wright (rebuilt in 1922), Taplin Gorge (1925), and Bemidji (constructed early 1900s and acquired in 1944). The Hoot Lake dam also functioned as a water intake source for a former coal-fired power plant, while Taplin Gorge’s powerhouse is notable for its distinctive design inspired by the Mausoleum of Theodoric. Although the Bemidji dam was taken out of generation service due to equipment failure, it continues to operate for water management purposes.
Coal-fired plants
With hydroelectric capacity unable to meet growing demand, Otter Tail transitioned to coal power during the 1920s, initiating operations at the Hoot Lake facility in 1921. The Washburn plant in North Dakota, established in 1926, stood out as an early large-scale power station fueled exclusively by lignite. Following World War II, rising energy needs prompted the construction of additional coal plants in the late 1940s; however, these were phased out after the Big Stone plant began operation in 1974, with Washburn ceasing activity in 1969. The Coyote plant commenced service in 1981, leading to the decommissioning of the Ortonville facility. Hoot Lake remained Otter Tail’s last fully owned original coal plant, having undergone six expansions between 1921 and 1964, before being retired and dismantled in 2021 as part of Minnesota’s initiative to achieve carbon-free energy. Additionally, Otter Tail is actively seeking to divest its stake in the Coyote plant.
Wind power
Otter Tail Power possesses 138 megawatts of wind-generated capacity and secures an extra 45 megawatts through power purchase agreements, amounting to a total of 183 megawatts from wind sources. By the year 2010, wind energy represented approximately 18% of the company’s retail electricity sales. The portfolio of owned wind assets and contracted projects includes the Luverne Wind Farm, Ashtabula Wind Energy Center, Langdon Wind Energy Center, and North Dakota Wind II.
See also
External links
Sources
- The Power People: The Story of Otter Tail Power Company (Ralph Johnson, 1986)