DIRECT ECONOMIC VALUE
We continued our role as a corporate citizen by making the following economic impact in 2016. 2016 economic impact Property taxes paid to local jurisdictions
$14,266,000
Wages and benefits paid to utility employees
$97,050,000
Common and preferred dividends paid to shareholders*
$38,553,000
Interest paid
$24,817,000
Amount paid to suppliers and vendors
$410,009,000
Total direct economic value generated
$584,695,000
*Visit ottertail.com for more investor information.
LOCAL SOURCING OPPORTUNITIES
We positively impact the communities we serve by using local vendors when appropriate. The table below details our 2016 expenditures with vendors in our tri-state service area.
INDIRECT ECONOMIC VALUE
During 2016 we engaged in construction and replacement projects as well as ongoing maintenance and operations support that created more than $158 million in indirect economic value. These projects include transmission line upgrades, airquality control equipment, and various equipment replacement projects. The table below details the economic impact of the projects. 2016 indirect economic impact Capital additions to plant in service Labor spending on construction
$17,891,000
New/replacement construction property
$125,038,000
Total
$142,929,000
Labor spending on maintenance Rent
$14,275,000 $1,166,000
Economic development spending Total indirect economic value generated
$232,000 $158,602,000
2016 tri-state vendor expenditures % OF TOTAL Minnesota
$165,846,000
40%
South Dakota
$26,359,000
6%
North Dakota
$141,699,000
35%
Total for local vendors
$333,904,000
81%
Total payments to all vendors
$410,009,000
In February 2016 we submitted an electric rate case to the Minnesota Public Utilities Commission (MPUC). A rate case is a regulatory proceeding to determine the cost our company incurs to provide our customers with electric service and how much we should charge customers for that service. Key drivers for the rate case included new environmental technologies, a strengthened delivery system, and overall rising costs. In March 2017 the MPUC granted a $12.3 million increase to our base electric rates. The average residential customer will see an overall average increase of approximately $5.10 a month. The average business customer will see an overall average increase of approximately $9.40 a month. Even with this increase, our rates remain among the lowest in the region and in the nation.
otpco.com/MNRateCase 34
|
Economic stewardship
|
otpco.com