Taking Care of Business 2023

A message from our president

Thank you for being our customer! To help you achieve your energy goals, we offer money-saving efficiency programs and incentives, including cash rebates and grants, to lower your up-front costs.

We’ve powered our communities for more than a century. And we’ll keep providing the reliable, low-cost electricity you depend on.

Investing in energy-efficient technologies makes solid business sense and helps to conserve resources. With our incentives and rebates, you can lower your energy bills and see a return on your investments in just a few years.

To take advantage of these opportunities or to get more information, contact one of our Industrial Services Engineers or Energy Management Representatives (inside back cover). Whether you’re designing a new building or retrofitting an existing structure, their expertise can help you realize your business goals.

Tim Rogelstad President

Applying for a rebate

Customers must provide detailed receipts and equipment documentation, including manufacturer and model numbers, and a signed Customer Rebate Application or other rebate forms.

■ Bids and quotes aren’t acceptable proof of purchase.

■ Documentation for cold-climate heat pump rebates must clearly indicate ducted or ductless design, HSPF/HSPF2, and other required ratings.

■ Acceptable proof of equipment efficiency, where required, includes AHRI certificates reflecting required equipment-efficiency levels, manufacturer specification sheets with proof of efficiency levels for the model installed, or ENERGY STAR® ratings when proof includes the model installed.

■ Find AHRI certificates at ahridirectory.org

■ Any other documentation of equipment efficiency must receive prior approval.

■ Customer Rebate Applications may be found online at otpco.com/RebateApplication

■ Some programs have additional program guidelines and documentation requirements. Work with your company representative to ensure rebate applications are complete.

■ All documentation is needed with the initial form submission to avoid delays in processing or disqualification.

■ Rebates will not exceed 75 percent of project cost. Geothermal heat pump rebates will not exceed 50 percent of project cost.

■ Rebates from our Drive Power and Refrigeration programs will not exceed 75 percent of a customer’s annual electric bill.

■ Allow eight weeks for rebates to process.

■ Energy control projects in which rebates may total $10,000 or more of off-peak rebates require preapproval and may be evaluated for a custom rebate amount to ensure project demand response value and a payback period of no less than one year. Customer must provide project cost details including alternative equipment under consideration and timeline for project completion for evaluation purposes.

■ Funding limitations apply.

■ We reserve the right to change or eliminate rebate programs without notice.

High-efficiency lighting retrofit

Reduce your costs with efficient lighting

According to the U.S. Energy Information Administration, lighting accounts for 17 percent of electricity consumed annually in the United States with approximately 5 percent used to remove waste heat generated by inefficient lighting fixtures. Lower operating costs aren’t the only advantages of high-efficiency lighting. Research indicates that efficient lighting also can contribute to productivity, quality control, security, safety, and reduced maintenance costs.

Eligibility

All commercial, industrial, and agricultural customers in Minnesota are eligible.

Eligible retrofits include light-emitting diode (LED) fixtures and lamps, high-efficiency fluorescent systems, and occupancy and daylight-based lighting controls.

Review the tables on the following pages for eligible fixtures and lamps and associated rebate amounts.

Customer case study:

Guidelines

■ All rebates exceeding $4,500 must be preapproved.

■ A replacement system must meet minimum recommended Illuminating Engineering Society lighting standards for illumination and be a permanent installation.

■ We reserve the right to inspect and verify installations before or after issuing rebates.

Customer case study reflects potential results of investing in efficient lighting. Actual results may vary.

Replacement lighting

We recommend storing old fluorescent lamps and HID lamps according to Minnesota Pollution Control Agency (MPCA) procedures:

■ Store in an area and manner that prevents breakage.

■ Compact fluorescent lightbulbs (CFLs) contain small amounts of mercury that are harmful to the environment. It’s illegal to place these lamps in the garbage.

■ Post notices to show employees where and how to store lamps.

■ If storage on-site isn’t possible, transport the lamps to a storage location. A hazardous waste manifest isn’t needed as long as lamps are transported to a site within Minnesota. Shipping papers are required.

■ Ballasts may contain polychlorinated biphenyls (PCBs). Storage and disposal of PCB ballasts must conform to the requirements of the Environmental Protection Agency and the MPCA.

■ For more information about fluorescent lamps, high-intensity discharge lamps, and ballast storage and disposal requirements, contact your local county recycling offices. They may have recycling programs in your area. Or call the MPCA at 800-657-3864.

Rebate incentives and eligible technologies may change at any time. See page 3 for rebate details.

New construction lighting

Rebates available

Planning to build a new facility? Take advantage of cash rebates and install energy-efficient lighting. Eligible energy-efficient technologies include hard-wired LED fixtures and LED lamps in both interior and exterior lighting applications.

Drive Power

Our Drive Power program includes rebates for efficient electric motors, adjustable speed drives, and electronically commutated motors.

Motors

The U.S. Energy Information Administration (EIA) reports that nearly half of the electricity consumed in the manufacturing sector is used for powering motors that drive fans, pumps, conveyors, and compressors. Electricity costs make up about 96 percent of the total life cycle cost of a motor, while capital costs and maintenance expenses account for 3 percent and 1 percent respectively.

Energy-efficient motors have other advantages too. They’re quieter. And because they operate at lower temperatures, they tend to last longer. Their superior design and construction lead to reduced downtime and maintenance costs. Plus they have a higher power factor.

Federal energy-efficiency regulation

Our motor rebate program encourages industrial, commercial, and agricultural customers to purchase efficient new, replacement, or retrofit motors.

■ 2007 EISA legislation set NEMA Premium® as the efficiency standard for 1- to 200-horsepower totally enclosed fan-cooled (TEFC) and open drip-proof (ODP) motors manufactured after December 2010.

■ Efficiency of TEFC and ODP motors must exceed NEMA Premium® efficiency levels to qualify for rebates for new motors and replacement of non-operating motors.

■ TEFC and ODP motors replaced prior to failure must meet NEMA Premium® efficiency levels to qualify for rebates.

■ Certain qualified motors may have limited availability in the market.

Eligibility

Our Minnesota industrial, commercial, and agricultural customers may qualify for rebates.

Review the tables on the following pages for rebates and required efficiency rating by motor type, size, and speed. Motors exceeding 500 horsepower may qualify under our commercial and industrial grant program (see page 19). Contact one of our representatives for details.

Guidelines

We reserve the right to inspect and verify motor locations and installations before issuing rebates and to verify actual energy savings after installation.

Drive Power

Motor selection tips

One of the most important factors in motor selection is sizing. Undersized motors sometimes operate with overload conditions. That leads to increased downtime and reduced life expectancy. On the other hand, oversized motors contribute to reduced power factor and operate at reduced efficiency, which could add to your energy bill.

Totally enclosed fan-cooled motor rebates

We recommend that you always match motor ratings to your load requirements. Consider the actual load levels, both starting and running, and the expected duration of each load.

Rebate incentives and eligible technologies may change at any time. See page 3 for rebate details.

Open drip-proof motor rebates

Adjustable-speed drives (ASDs)

Induction motors are the workhorses of commercial enterprises and are used in virtually every manufacturing plant and office building. The largest energy savings in induction motor systems often lies not in the motor but in the controls governing the motor’s operation. ASDs improve drive system performance and efficiency.

An ASD can match the speed of an AC motor to the requirements of a fluctuating load, such as a pump that moves changing fluid volumes during production. When this happens, the control valves, dampers, or other throttling mechanisms can be removed (or locked in full open positions), dramatically improving energy efficiency and reducing energy expenses by up to 50 percent.

ASD rebates

■ Rebate of $60 per horsepower for process and other nonseasonal centrifugal applications.

■ Rebate of $40 per horsepower for seasonal and HVAC centrifugal applications.

Guidelines

■ Rebates cover ASD installation on motors from 1 to 500 horsepower operating under centrifugal loads.

■ Applications associated with motors exceeding 500 horsepower may qualify under our commercial and industrial grant program (see page 19). Contact one of our representatives for details.

■ System designer or installing contractor must ensure the entire facility complies with the IEEE Standard 519 after completion of the ASD installation or retrofit. Failure to comply with this rule in ASD installations may result in disqualification of any rebate request.

■ See rebate guidelines on page 3 for details.

Electronically commutated motors (ECMs)

An ECM uses 75 percent less energy than a standard fan motor.

ECM rebates

Rebates are available for customers that retrofit existing exhaust fans with an energy-efficient ECM. Rebate is based on motor horsepower.

Rebate incentives and eligible technologies may change at any time. See page 3 for rebate details.

Energy-efficient refrigeration

A cool deal to raise profits

According to the U.S. Energy Information Administration, commercial refrigeration accounts for 16 percent to 18 percent of commercial energy use and as much as 70 percent of electricity consumption in some grocery stores. Because grocery store profit margins are so thin—as low as 1 percent—every dollar in energy savings is the equivalent of increasing sales by $59.

When you install energy-efficient equipment you’ll save in two ways:

1. Lower electric bills.

2. Up-front rebates on certain types of energy-efficient refrigeration equipment.

Commercial refrigeration rebates

Parallel rack (retrofit)

Conversion to solid-state compressor controls (retrofit)

Preservation of condenser subcooling (retrofit)

Floating head pressure on rack (retrofit)

Floating head pressure, stand-alone (new and retrofit)

Antisweat heater control (retrofit)

High-efficiency glass doors (new and retrofit)

High-efficiency evaporator fan motor (new)

High-efficiency evaporator fan motor (retrofit)

Solid-state condenser fan controls (retrofit)

Outdoor air cooling, e.g., natural cool (new and retrofit)

High evaporator temp cases (new and retrofit)

Condenser-based antisweat heater control (new and retrofit)

LED lighting—low-temp (new and retrofit)

LED lighting—mid-temp (new and retrofit)

*Preventive maintenance—1 to 30 HP Discounted price $29.95

*Preventive maintenance—31 to 100 HP Discounted price

*Preventive maintenance—101 to 200 HP Discounted price $49.95

Rebate information

Rebates are available in four areas of commercial refrigeration:

1. Refrigeration rack system upgrades.

2. Stand-alone condensing units.

3. Display cases and walk-ins.

4. Preventive maintenance and cleaning measures.

See the chart below for details.

ft. of case

ft. of case

motor

motor

airflow

ft. of case

ft. of case

Commercial food service equipment

Commercial food service equipment rebates are available for ENERGY STAR® electric appliances, including food-holding cabinets, ovens, cooktops, griddles, dishwashers, refrigerators, electric steamers, freezers, and ice machines.

Electric kitchen equipment often provides a competitive advantage over alternate fuels by improving the cooking process, increasing production, improving food and air quality, and reducing kitchen safety hazards.

Commercial food service equipment rebates Item

Electric hot food-holding cabinets (HFHC)

Full size (20 cubic feet)

3/4 size (12 cubic feet)

Half size (8 cubic feet) $200

Electric ovens, cooktops, and griddles

Convection oven $75

Electric fryer or griddle $200

Dishwasher (electric water heater required)

High temp booster heater (electric only) $200

Commercial food service

Heat pumps

Heat pumps provide heating and cooling

No matter the temperature, heat is always available in the air around us and in the ground. Heat pumps take advantage of that by moving heat in or out of buildings to keep spaces comfortable. Because they move heat rather than produce it, heat pumps operate with high efficiency.

Rebates are available for air-to-water, cold-climate, and geothermal heat pump installations.

Energy control rebates are available for installations served on our Dual Fuel Rate or Deferred Load Rate.

CIP efficiency rebates

Conservation Improvement Program (CIP) efficiency rebates are available for heat pump systems that meet required efficiency levels—regardless of the rate on which it’s served.

Customers installing a CIP-eligible heat pump may qualify for financing options in addition to receiving rebates.

A heat pump installed as a replacement for an operational natural gas heating system is not eligible for CIP rebates or financing. It may qualify for energy control rebates.

In recognition of implementation of new testing standards, equipment rating requirements are provided in both SEER/HSPF and new metric terms, SEER2/HSPF2. In 2023 we’ll accept air-source heat pump equipment rated under either testing metric as long as the approved rating level is documented for that metric.

* Units labeled as ENERGY STAR® or that show proof of minimum ratings qualify for CIP efficiency rebates. ENERGY STAR® CCHPs must also meet HSPF or HSPF2 ratings.

Geothermal heat pump ratings

Energy control rebates

Limit one rebate per installation. Models with qualifying efficiency criteria may be found through AHRI at ahridirectory.org. AWHP efficiencies will be based on manufacturer specification sheets and must show a minimum COP rating of 1.7 at A5W110, which means that at an outdoor ambient temperature of 5°F, the unit must deliver 110°F supply water.

Energy control rebates totaling more than $10,000 require prior approval by program manager.

Cold-climate heat pumps (CCHPs)

Cold-climate heat pump systems operate at an overall seasonal efficiency of 250% and offer customers heating and cooling at a fraction of the cost of fossil fuel systems. Our rebates make these systems competitive to install and their hyper-efficient operation delivers comfort down to sub-zero temperatures.

CCHPs must meet the ratings listed in the table on page 13 to qualify for either a CIP energy-efficiency rebate or an energy-control rebate.

Geothermal heat pumps (GHPs)

GHPs are clean, safe, efficient, and environmentally friendly and can deliver four to six units of heat for each unit of energy used. As a result, GHPs can reduce annual heating and cooling costs by up to 70 percent.

Air-to-water heat pumps (AWHPS)

AWHPs improve the efficiency of hydronic underfloor heat storage systems by using the free energy available in the air and transferring it through water for heating.

An AWHP can be installed to upgrade an existing hydronic underfloor heating system or applied to new systems.

Systems can include electric resistance backup heating for the coldest weather. And, when paired with a buffer tank, an AWHP provides added savings by preheating domestic water.

Learn more about AWHPs at otpco.com/AWHP.

Buffer tank or desuperheater

Add a buffer tank to a CIP-qualified AWHP or a desuperheater to a CIP-qualified GHP installation and receive an additional $200 per ton rebate when used for domestic hot water preheating. Buffer tank requires heating coils. Tonnage based on the associated heat pump unit. Limit 20 tons.

CASE STUDY: Advanced modeling cuts geothermal system cost

When it comes to your heating system, size is money. Particularly when installing a high-efficiency geothermal heating system. Because of oversizing, geothermal heating systems are often cut from building construction budgets, thus missing out on energy savings for the life of the building. Advanced-modeling programs are now available to help optimize both the building design and the geothermal system design to overcome budget issues. Our planning tools analyze usage patterns, review building materials and select alternatives to reduce heating and cooling requirements, and maximize the benefits of the installed system. With an optimized design, a geothermal system may cost 25 percent to 40 percent less than “rule-of-thumb” estimates.

Call 800-493-3299 to speak with one of our Energy Experts (also listed on the inside back cover) to get assistance on designing your geothermal heating system.

In addition to our rebates (listed on page 13), federal tax credits are also available for commercial installations. (See page 26 for details.)

The renovated and expanded Fergus Falls Public Library was completed in 2019. The engineering and design teams, in consultation with Ed Lohrenz of GeoOptimize, Inc., used optimized design software results to find ways to significantly reduce the cost of the GHP system serving the facility.

Thermal storage technologies

A $40 per kilowatt rebate is available for installation of up to 500 kilowatts of thermal-storage applications served on our Deferred Load or Fixed Time of Delivery Rates. Eligible applications include:

■ Central furnaces.

■ Room units.

■ Underfloor cable or panel systems.

■ Electric boilers installed to serve underfloor hydronic systems.

■ Ice storage applications.

A system must have adequate capacity to heat or cool the space during the maximum control period allowed by the rate to qualify for a rebate.

Minimum eligible system size to qualify for a rebate is 9 kilowatts.

Electric heating technology

Rebates are available for electric heating technologies when a minimum of 9 kilowatts (kW) is installed and served through our Dual Fuel Rate.

■ Receive a $15 per kW rebate for baseboard, cove heat, or radiant electric heating including floor warming.*

■ Receive a $500 rebate for installing 9 kW to 25 kW, or a $20 per kW rebate for systems larger than 25 kW, for an electric plenum heater, electric boiler, electric furnace, or electric cable or panel storage heating.**

*Floor warming is nonstorage heating placed beneath flooring material. **Electric cable or panel storage heating is limited to installations under new construction slab foundations.

Break-even costs for electric heating systems

To calculate the break-even point of electricity compared with natural gas, propane, or heating oil, find the price per kilowatt-hour paid (prices will vary by rate) and the efficiency level of the fossil fueloperated equipment you’re comparing. The price shown is the all-in price fossil fuels must reach to break even with electricity prices.

Break-even costs for heat pump systems

Electric water heating

Customers that install a new electric water heater with a uniform energy factor (UEF) of .90 or higher may qualify for a controlled water heater rebate when it’s served on our Deferred Load, Dual Fuel, Controlled Water Heating, or Residential Demand Control Rate. Firm service rates also may qualify when an energy-control device is connected.

Receive a $10 per month bill credit. Customers may choose to connect a radio receiver to their firm service electric panel to avoid the cost of adding an additional service panel and meter.

Controlled water heating rebates

Water heater

Electric vehicle charging station

Customers installing a permanently connected (hardwired) Level 2 electric vehicle charging station on an eligible rate may qualify for a $400 rebate Eligible rates include Dual Fuel, Deferred Load, Fixed Time of Delivery, RDC, and the Electric Vehicle Charging Rate.

Otter Tail Power Company electric vehicle

TailWinds wind energy

You can support emission-free renewable energy with our TailWinds wind-generated energy program.

Energy is available for purchase in 100-kilowatthour blocks. You choose how much you want to buy. Use wind energy to power most of your business operation—or just a portion. For example, a typical refrigerator uses about one 100-kilowatt-hour block per month.

You can enroll at any time. Once you enroll, you’ll start seeing a small additional charge on your monthly electric service statement. This helps cover the cost of adding wind-generated electricity to our resource mix.

We’ll provide electricity through other means if the wind doesn’t blow. No special equipment is needed. You’re committed for a minimum of one year—unless you move away from our service area.

Publicly Owned Property (POP) Solar

The objective of our Publicly Owned Property Solar program is to demonstrate the benefits of solar photovoltaic (PV) generation to rural Minnesota communities, educational facilities, and local and tribal governments by offering incentives for universal solar projects.

POP Solar projects may qualify for an incentive of $1,500 per kilowatt of AC nameplate generating capacity and up to 50 percent of project installation costs for qualifying solar PV projects.

To qualify, customers must:

■ Participate in energy-efficiency projects, including implementing any with a simple payback of two years or less, based on an assessment by our company of onsite energy-efficiency opportunities.

■ Submit cost effectiveness evaluation of the proposed solar PV installation.

■ Use North American Board of Certified Energy Practitioners (NABCEP) certified solar PV installers.

■ Develop a community/school/campus awareness, participation, and educational integration plan.

■ Select a site that offers optimal solar PV generation potential to maximize the benefits of distributed solar PV installations across our company’s Minnesota service area.

■ Agree to transfer the renewable energy credits (RECs) from the POP Solar installation to our company.

Note: POP Solar rebate may be combined with Solar for School grant funds. The combined funds may not exceed the total project cost.

Ashtabula wind farm

Commercial and industrial grants

You’re the boss

No one knows your business as well as you. Our grant program lets you submit energy-savings proposals based on your individual needs.

Chances are you already know of a number of ways you could improve the energy efficiency of your operation. A list of possibilities might include:

■ Replacing air compressors

■ Chillers

■ Heat-recovery systems

■ Building envelope improvements

■ Process improvements

Here’s how it works

■ You submit your energy-efficiency proposals using one of our grant proposal forms. Our representatives can help.

■ We evaluate your proposals to determine the effect of the improvements suggested.

■ Grants are calculated based on kilowatthours of energy saved, kilowatts of demand reduced, and project costs.

■ Preliminary evaluations provide estimated grant incentive amounts. Actual grant incentive amounts are subject to change.

■ When installations are complete, you’ll receive a check for the approved amount.

Guidelines

■ Energy-saving measures must be installed within six months of project approval unless special arrangements are made.

■ We reserve the right to inspect and verify project location and installation before issuing the grant check and to verify installation and actual energy savings after project completion.

■ Commercial and industrial grants may be capped. Funding limitations apply.

Measurement and verification

Minnesota Department of Energy Resources rules apply to measurement and verification of energy savings for large grant projects. If you anticipate energy savings of 1,000,000 kWh or more annually, consult your Industrial Services Engineer or Energy Management Representative to help ensure you qualify for program incentives.

Other programs

Integrated Building Design Plus

Qualifying building owners, architectural and engineering firms, and developers may participate in our company’s FREE Integrated Building Design Plus (IBD Plus) program. IBD Plus is an integrated design process that puts energy efficiency at the forefront of plans for new construction.

Buildings must be at least 5,000 square feet and exceed baseline energy efficiency by 5 percent or more to qualify for our IBD Plus program and any incentives.

Benefits include:

■ Free computerized energy-use modeling of design alternatives.

■ Reimbursements to your architectural and design team for time commitments. Design team reimbursements are based on project size and are subject to caps.

■ Cash incentives for incorporating energy efficiency in your final building design.

■ Review of construction documents to ensure that your final building plans reflect intended efficiency.

■ Verification to confirm that your building has been constructed to meet intended efficiency levels.

■ Assistance for design professionals in optimizing geothermal heating and cooling opportunities.

For more information on IBD Plus or to apply, scan the QR code or visit otpco.com/DesignPlus .

Compressed-air efficiency

Compressed air is often referred to as the “fourth utility” in industrial facilities. Compressed-air systems typically operate at just 10 percent to 15 percent efficiency, making compressed-air production one of the most energy-intensive and costly operations in many industrial settings.

We provide incentives to customers for efficiency improvements in compressed-air systems and for completing compressed-air recommissioning studies that adhere to our company’s guidelines.

Based on the findings of your audit, you might also be eligible for additional financial help to make efficiency upgrades to your compressed-air system through our commercial and industrial grant program (see page 19).

Specific program rules and requirements apply. Applicants must use a compressed-air recommissioning study provider we’ve preapproved to be eligible for the 100 percent study cost incentive.

For more information on our compressed-air efficiency program or to apply, scan the QR code or visit otpco.com/CompressedAir

Recommissioning energy studies

Recommissioning and retrocommissioning, both commonly referred to as RCx, are processes that ensure specific building systems perform interactively according to the design intent and the owner’s operational needs.

Recommissioning ensures that a previously commissioned building is running at optimal performance.

Retrocommissioning involves tuning up an existing building that never was commissioned formally after construction. The retrocommissioning process identifies less-than-optimal performance in an existing facility’s HVAC systems and identifies cost-effective energy-saving adjustments.

Four levels of program services are offered.

Traditional RCx

Traditional RCx involves an extensive process of gathering data on energy-using systems in your building. The benefits can include:

■ A rebate of 30 percent of the RCx study cost and $400 per kilowatt saved, up to $20,000, for eligible customers.

■ Potential energy cost savings of up to 20 percent.

■ A more comfortable facility with fewer occupant complaints.

■ Longer equipment life. Lower energy bills.

■ A detailed building assessment completed by a qualified engineering professional.

Eligible buildings must have at least 50,000 square feet of conditioned space.

Turnkey RCx

Our Turnkey RCx study makes it easy to identify energy-saving projects and ensure that upgrades are completed on time—so that savings of up to 20 percent on energy bills begin rapidly.

We reimburse pre-approved customers for 100 percent of RCx study costs as follows:

■ First half paid when the study is completed.

■ Second half paid when implementation of all required efficiency improvements are successfully completed.

Eligible buildings must have at least 50,000 square feet of conditioned space.

RCx Lite

RCx offers lower study costs and a shorter timeline with reduced energy-savings requirements. RCx Lite measures may include tuning set points, optimizing controls, and using low/no-cost upgrades capable of achieving savings of 3 percent to 12 percent in most facilities. The benefits include:

■ Savings of up to 75 percent of those achieved in a traditional, but more costly, RCx study—often for as little as 25 percent of the cost.

■ A rebate of 50 percent of the cost of the RCx Lite study up to a maximum of $10,000 upon completion of required measures.

Eligible buildings must have 25,000 to 50,000 square feet of conditioned space.

Turnkey RCx Lite

A fast-track, low-risk program to help building owners capture energy savings from their existing building equipment and its operation. Typically customers can cut 5 percent to 10 percent of their energy costs by participating.

■ A rebate of up to $9,500 per participant that can cover 100 percent of the program cost.

■ To be eligible, buildings must have a digital control of their building’s HVAC equipment via a building automation system (BAS).

Pre-approval of Traditional RCx, Turnkey RCx, RCx Lite, and Turnkey RCx Lite applications is required to receive incentives.

Price-response programs

Three factors determine your electric service bill

■ The amount of electricity you use.

■ The rate at which it’s used.

■ The time(s) it’s used.

We offer a variety of energy-efficient options that help you save money by reducing the amount of electricity you use and the rate at which you use it. By addressing the time you use it, effective loadmanagement practices can help you save even more.

PowerProfiler

PowerProfiler is a convenient online tool that provides customized electric-load reports for large industrial and large commercial businesses with interval data metering. This information can help you gain a better understanding of your company’s energy use and related costs.

By analyzing PowerProfiler reports, you’ll see if you can lower your overall energy demand and better regulate costly demand peaks by finetuning equipment and adjusting start-up schedules.

Time of use/day service

If you have the ability to adjust your operations in ways that shift your load from our peak demand times, we operate more efficiently. In turn, we pass on the savings to you through special rates.

Demand Response Rates

If you choose interruptible service, you allow us to use radio signals to control predetermined electric equipment during peak energy use or emergency situations. You benefit from our greater efficiency in the form of discounted off-peak rates that can reduce your total energy costs substantially.

Demand Response Rates

Participate in an off-peak program

The ability to control system peaks reduces our operating costs. We pass on the savings to our customers in the form of reduced electric rates. We use energy control:

■ When our customers’ loads create peak demand periods.

■ During testing or emergency periods, such as restoring service following a storm.

■ When energy prices on the wholesale market are high and we must purchase a portion of our energy.

Deferred Load Rate

Our Deferred Load Rate cuts operating costs for a heating or cooling storage system by nearly 30 percent compared to our standard electric rates.

A heat pump installed on our Deferred Load Rate is eligible for cycling during summer-season peak control events. This cycling option provides 15 minutes of control followed by 15 minutes of service. Cycling allows the heat pump to keep spaces cool and comfortable.

Rebates available

In addition to rebates on qualified electric heating applications, water-heating equipment and Level 2 electric vehicle charging equipment may be added to this rate and qualify for rebates.

Control limits and cost of energy

■ The rate permits control 12 months a year.

■ We may control deferred loads up to 14 hours a day.

■ Summer-season cycled control is available.

■ When system conditions permit, we include a recovery period when a control event lasts several hours.

■ Rates vary by season. We apply winter-season rates from October 1 through May 31 and summer-season rates from June 1 through September 30.

■ Cost-of-energy charges apply.

■ Controlled-service systems must be permanently connected and interruptible. Systems that do not interrupt loads during control events as required by the rate may be subject to penalty charges, and application of this rate may be discontinued.

Fixed Time of Delivery Rate

Customers can cut energy costs by more than half when they recharge their heat-storage or cooling-storage systems overnight, taking advantage of energy generated during off-peak hours. That’s big savings!

Schedule and cost of energy

■ We energize fixed-time-of-delivery loads during predetermined off-peak hours between 10 p.m. and 6 a.m. 365 days a year.

■ Rates vary by season. We apply winter-season rates from October 1 through May 31 and summer-season rates from June 1 through September 30.

■ Cost-of-energy charges apply.

■ Systems must be permanently connected and service interrupted between 6 a.m. and 10 p.m. Systems with metered use during these hours may be subject to penalty charges, and application of this rate may be discontinued.

Rebates available

Level 2 electric vehicle charging equipment may be added to this rate and qualify for rebates.

System sizing is important. Heat-storage and cool-storage systems served on off-peak rates must be sized to create adequate stores to warm or cool spaces during the maximum control period allowed by the rate to be eligible for rebates.

Dual Fuel Rate

Customers qualify for a rate of about half the standard price per kilowatt-hour when they install a dual-fuel system that uses off-peak electricity as the primary fuel. A secondary heating fuel, such as natural gas, propane, or fuel oil, supplies heat during control conditions. The switch from electricity to the secondary fuel and back to electricity is accomplished automatically with radio signals.

Customers must sign a liability waiver to place nonautomatic hand-fed systems, such as wood, pellets, and corn systems, on this rate.

Control limits and cost of energy

■ Summer-season cycling of qualified loads is available.

■ The rate permits heating system control for up to 24 hours a day.

■ The rate permits water heater control for up to 14 hours a day.

■ Rates vary by season. We apply winter-season rates from October 1 through May 31 and summer-season rates from June 1 through September 30.

■ Cost-of-energy charges apply.

■ Controlled-service systems must be permanently connected and interruptible. Systems that do not interrupt loads during control events as required by the rate may be subject to penalty charges, and application of this rate may be discontinued.

Summer-season cycling

A heat pump installed on our Dual Fuel Rate is eligible for cycling during occasional summer-season peak control events. The cycling option provides 15 minutes of control followed by 15 minutes of service.

Rebates available

In addition to rebates on qualified electric heating applications, water-heating equipment and Level 2 electric vehicle charging equipment may be added to this rate and qualify for rebates.

Off-Peak Electric Vehicle Rate

With our Drive On Off-Peak Electric Vehicle Rate, Minnesota customers can recharge their electric vehicle overnight for less. On this rate, energy is delivered only between 10 p.m. and 6 a.m. to take advantage of the lowest priced off-peak energy. Eligibility requirements include proof of electric vehicle ownership and appropriate electrical service interconnection facilities.

Schedule and cost of energy

■ We energize off-peak electric vehicle loads during predetermined off-peak hours between 10 p.m. and 6 a.m. 365 days a year.

■ Rates vary by season. We apply winter-season rates from October 1 through May 31. Summer-season rates apply from June 1 through September 30.

■ Cost-of-energy charges apply.

■ Systems must be interrupted between 6 a.m. and 10 p.m.

Rebates available

Level 2 electric vehicle charging equipment may be added to this and qualify for rebates when permanently connected, metered, and subject to service according to the rate.

Water Heating Control Rate

Electric water heating is energy efficient and clean. And our Water Heating Control Rate can save customers up to 25 percent compared to our standard price of electricity.

An alternative for customers not interested in, or not able to install a separate service panel, is a $10 a month credit on their monthly bills in return for allowing us to control water heaters wired to their firm-service meters.

Water heaters also may be installed on certain electric space-heating rates, including our Dual Fuel and Deferred Load Rates, which offer greater savings.

In all cases an electrician must provide wiring to our radio receiver.

Control limits and cost of energy

■ Rates permit control 12 months a year.

■ Rates permit water heaters to be controlled up to 14 hours a day.

■ We interrupt long control periods whenever possible to allow the water heater to recover.

■ Rates vary by season. We apply winter-season rates from October 1 through May 31 and summer-season rates from June 1 through September 30.

■ Cost-of-energy charges apply.

■ Controlled-service systems must be permanently connected and interruptible. Systems that do not interrupt loads during control events as required by the rate may be subject to penalty charges, and application of the off-peak rate may be discontinued.

Rebates available

Rebates are available for new off-peak electric water-heating installations with proof of a minimum 90 percent efficiency.

CoolSavings air-conditioning control

Available for small businesses

Small commercial businesses have the opportunity to conserve electricity—and save money—while helping us manage summer’s high energy-use periods by allowing us to cycle their air conditioners. Qualified businesses can earn a credit of $6 per ton of airconditioning load per month in June, July, August, and September. For example, a 5-ton air-conditioning load would qualify for a bill credit of $30 a month.

How it works

If you qualify for CoolSavings, a company representative will install a radio receiver on the outside of your business that will automatically control your air-conditioning system.

Control limits

■ Summer-season control applies June 1 through September 30.

■ A maximum of 300 hours of cycled control is permitted for the summer season.

■ Equipment will be cycled on a 15-minute on/ 15-minute off schedule when control is needed.

■ Commercial customers with dual stage air conditioners will be allowed to have the first stage run without interruption while the second stage will be shut off during the entire control event.

Qualifications

Customers must have a centralized cooling system, such as an air-source heat pump or central air conditioner, to be eligible for CoolSavings. Window units or ductless air-conditioning systems do not qualify for the program, nor do units already served on a controlled rate. To enroll in CoolSavings, you must be the property owner.

We reserve the right to deny participation for limited-use structures.

Questions

To sign up for our CoolSavings program— or for answers to any questions you may have—contact your Energy Management Representative or call our Idea Center at 800-493-3299.

State and Federal commercial tax incentives

The federal Business Energy Investment Tax Credit (ITC) has been amended a number of times, most recently by the Inflation Reduction Act of 2022. That bill established new prevailing wage and apprenticeship requirements for larger systems to qualify for the full 30 percent tax credit.

The Treasury Secretary soon will issue guidance for these new labor provisions. The table at right offers credits for different project types.

Some of the technologies eligible for tax credits under the ITC include:

■ Solar energy generation

■ Geothermal heat pump systems that meet ENERGY STAR® requirements.

■ Energy storage systems, such as battery-storage installations, both when paired with generation and as a stand-alone system.

■ Thermal energy storage systems.

*Requires that all laborers and mechanics involved in construction are paid wages not less than prevailing wages, and that a percentage of total labor hours are performed by qualified apprentices. Projects under 1 MW (or larger projects that are commenced no more than 60 days after the Treasury Secretary develops labor guidelines) do not need to meet the new labor standards to receive the full tax credit. Such projects that begin construction after 2021 and before 2025 can receive the full tax credit.

**Project must have 100% of steel or iron and 40% of manufactured products produced in the U.S.

***Low-income communities defined by New Markets Tax Credit or on tribal land.

Tax credit and other incentive information may be found at dsireusa.org and rewiringamerica.org

Information is subject to change and is not a substitute for advice or decisions from a tax professional.

Contact information

We can help

Our company is dedicated to the growth and vitality of the businesses we serve.

Our team also can help identify community partnerships, financing packages, and labor pools to help ensure the success of new businesses.

If you’d like to speak with a representative, call our Idea Center at 800-493-3299 or contact the below individuals directly.

Otter Tail Power Company representatives

Bill Gronwold Energy Management Representative for the Fergus Falls, MN area 218-205-1689 wgronwold@otpco.com

Jeff Hoff Energy Management Representative for Jamestown and Oakes, ND areas 218-739-8462 jhoff@otpco.com

Chris Waltz, C.E.M. Manager, Sales Fergus Falls, MN 218-739-8492 cwaltz@otpco.com

Brandon Johnson, C.E.M. Energy Management Representative for the Bemidji, MN area 218-739-8215 bpjohnson@otpco.com

Todd Kadry Industrial Services Engineer Fergus Falls, MN 218-739-8286 tkadry@otpco.com

Kevin Kouba Manager, Economic Development Milbank, SD 800-346-4920 Ext. 6601 kkouba@otpco.com

Andrew Martig Energy Management Representative for the Morris, MN area 320-247-3118 amartig@otpco.com

Lori Moxness Senior Commercial and Industrial Representative Fergus Falls, MN 218-205-1942 lmoxness@otpco.com

Brad Nelson, C.E.M. Energy Management Representative for Milbank, SD and Wahpeton, ND areas 605-949-1779 bnelson@otpco.com

Mark Remer, C.E.M., C.E.P. Senior Industrial Services Engineer Fergus Falls, MN 218-739-8967 mremer@otpco.com

Aaron Sigette, C.E.M. Energy Management Representative for Crookston and Hallock, MN areas 701-230-3305 asigette@otpco.com

Scott Sigette Energy Management Representative for Garrison, Rugby, Langdon, and Devils Lake, ND areas 701-351-3502 ssigette@otpco.com

Jesse Tomford Senior Industrial Services Engineer Fergus Falls, MN 218-739-8474 jtomford@otpco.com