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Taking Care of Business 2022

Page 1

Table of contents Your guide for helping to increase efficiency and enhance profitability A message from our president . . . . . . . . . . . . . . . . . . . 2

Commercial and industrial grants . . . . . . . . . . . . . . . . . 16

Applying for a rebate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Integrated building design plus . . . . . . . . . . . . . . . . . . . 17

High-efficiency lighting retrofit . . . . . . . . . . . . . . . . . . . 4

Compressed-air efficiency . . . . . . . . . . . . . . . . . . . . . . . 17

New construction lighting . . . . . . . . . . . . . . . . . . . . . . . . 6

Recommissioning energy studies . . . . . . . . . . . . . . . . . 18

Drive Power . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Price-response programs . . . . . . . . . . . . . . . . . . . . . . . . 19

Efficient electric motors . . . . . . . . . . . . . . . . . . . . . . 7

Demand Response Rates . . . . . . . . . . . . . . . . . . . . . . . 20

Adjustable-speed drives . . . . . . . . . . . . . . . . . . . . . 10

Deferred Load Rate . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Electronically commutated motors . . . . . . . . . . . 10

Fixed Time Of Delivery Rate . . . . . . . . . . . . . . . . . . 20

Energy-efficient refrigeration . . . . . . . . . . . . . . . . . . . . . 11

Dual Fuel Rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Heat pumps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Off-Peak Electric Vehicle Rate . . . . . . . . . . . . . . . . . 21

Buffer tank or desuperheater . . . . . . . . . . . . . . . . . . . . . 13

Water Heating Control Rate . . . . . . . . . . . . . . . . . . 22

Thermal storage technologies . . . . . . . . . . . . . . . . . . . . 14

CoolSavings air-conditioning control . . . . . . . . . . 22

Electric heating technology . . . . . . . . . . . . . . . . . . . . . . 14

Commercial tax incentives . . . . . . . . . . . . . . . . . . . . . . 23

Electric water heating ������������������������������������������������������15

Contact information . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Electric vehicle charging station ������������������������������������15

For more information . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

otpco.com 1


A message from our president Thank you for being an Otter Tail Power Company 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’re here so you can focus on what matters most. As our customer, your electric service rates are among the lowest in the nation. We work to keep them that way as we create a stronger, smarter energy grid and cleaner energy future. 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, contact one of our Industrial Services Engineers or Energy Management Representatives (page 26). Whether you’re designing a new building or retrofitting an existing structure, their expertise can help you realize your business goals.

Tim Rogelstad President

Visit otpco.com Our website always provides the most up-to-date information about our programs. Check it out for even more money-saving ideas.

Connect with us Facebook.com/OtterTailPowerCo Twitter.com/OtterTailPwrCo YouTube.com/OtterTailPowerCo Linkedin.com/company/Otter-Tail-Power-Company

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Taking Care of Business


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 are not acceptable proof of purchase. Documentation for cold-climate heat pump rebates must clearly indicate ducted or ductless design, HSPF, 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 and other 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 will not exceed 75 percent of 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.

Applying for a rebate

Applying for a rebate

Submit rebates to our Idea Center by email to IdeaCenter@otpco.com or consult your local company representative listed on page 24.

Download the Customer Rebate Application at otpco.com/RebateApplication.

Or mail to: Idea Center PO Box 496 Fergus Falls, MN 56538-0496

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High-efficiency lighting retrofit

High-efficiency lighting retrofit Reduce your costs with efficient lighting 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 daylighting based lighting controls. Review the tables on the following pages for eligible fixtures and lamps and associated rebate amounts.

Customer case study: Electricity saved annually

475,555 kWh

Retrofit cost

$117,250

Rebate

$32,550

Annual savings

$35,667

Payback

2.4 years

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

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Taking Care of Business

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 issuing rebates.


Existing

Low-efficiency incandescent

Replaced with

Rebate per watt saved

Screw-in LED interior (with and without removal prevention devices)

20¢

Screw-in LED exterior (with and without removal prevention devices)

10¢

Hard-wired compact fluorescent

60¢

Hard-wired LED interior

60¢

Hard-wired LED exterior Low-efficiency fluorescent Standard T8 fluorescent lamps

Mercury-vapor lamps

Standard HID

Exit lighting fixtures

40¢

Low-watt T8 fluorescent fixture retrofit (with lamps rated at 28 watts per lamp or less)

5¢/watt installed

Hard-wired LED

60¢

Low-watt T8 lamp retrofit (lamps only—28 watts per lamp or less)

40¢

LED lamp-only retrofit

40¢

Hard-wired LED interior

60¢

Hard-wired LED exterior

40¢

Screw-in LED interior

40¢

Screw-in LED exterior

20¢

Hard-wired LED interior

60¢

Hard-wired LED exterior

40¢

Screw-in LED interior

40¢

Screw-in LED exterior

20¢

High-efficiency exit lighting (based on maximum demand reduction of 20 watts/fixture)

60¢

Occupancy/daylight sensing controls

High-efficiency lighting retrofit

Replacement lighting

$200/connected kW

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

Store in an area and manner that will prevent breakage.

■

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.

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New construction lighting

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.

New construction high-efficiency lighting LED technology

LED indoor hard-wired fixture

LED outdoor hard-wired fixture

LED indoor screw-in lamp

LED outdoor screw-in lamp

Wattage per fixture or lamp <30 30 to 49 50 to 79 80 to 99 >99 <30 30 to 49 50 to 79 80 to 99 >99 <10 10 to 24 25 to 49 50 to 75 <10 10 to 24 25 to 49 50 to 75

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. Call the Minnesota Pollution Control Agency at 800-657-3864 or visit earth911.com to learn how to lawfully dispose of these lamps.

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Taking Care of Business

Rebate per fixture or lamp $15.00 $25.00 $35.00 $50.00 $75.00 $10.00 $15.00 $20.00 $25.00 $30.00 $1.25 $3.50 $8.00 $13.50 $1.00 $1.50 $3.50 $6.00


Drive Power

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. At the same time, 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. Because they operate at lower temperatures, they last longer. Their superior design and construction lead to reduced downtime and maintenance costs. And 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 16). 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.

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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.

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.

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 Percent rated efficiency 1200 RPM

Percent rated efficiency 1800 RPM

Percent rated efficiency 3600 RPM

New and replacement of nonoperating motors

Replacement of operating motors

New and replacement of nonoperating motors

Replacement of operating motors

New and replacement of nonoperating motors

Replacement of operating motors

1

84.0

82.5

86.5

85.5

78.5

77.0

$40

1.5

88.5

87.5

87.5

86.5

85.5

84.0

$60

2

89.5

88.5

87.5

86.5

86.5

85.5

$80

3

90.2

89.5

90.2

89.5

87.5

86.5

$90

5

90.2

89.5

90.2

89.5

89.5

88.5

$150

7.5

91.7

91.0

92.4

91.7

90.2

89.5

$230

10

91.7

91.0

92.4

91.7

91.0

90.2

$300

15

92.4

91.7

93.0

92.4

91.7

91.0

$450

20

92.4

91.7

93.6

93.0

91.7

91.0

$600

25

93.6

93.0

94.1

93.6

92.4

91.7

$600

30

93.6

93.0

94.1

93.6

92.4

91.7

$700

40

94.5

94.1

94.5

94.1

93.0

92.4

$800

50

94.5

94.1

95.0

94.5

93.6

93.0

$1,000

60

95.0

94.5

95.4

95.0

94.1

93.6

$1,100

75

95.0

94.5

95.8

95.4

94.1

93.6

$1,200

100

95.4

95.0

95.8

95.4

94.5

94.1

$1,600

125

95.4

95.0

95.8

95.4

95.4

95.0

$2,000

150

96.2

95.8

96.2

95.8

95.4

95.0

$2,400

200

96.2

95.8

96.5

96.2

95.8

95.4

$2,800

250

95.8

95.8

96.2

96.2

95.8

95.8

$3,500

300

95.8

95.8

96.2

96.2

95.8

95.8

$4,200

350

95.8

95.8

96.2

96.2

95.8

95.8

$4,200

400

95.8

95.8

96.2

96.2

95.8

95.8

$5,000

450

95.8

95.8

96.2

96.2

95.8

95.8

$6,000

500

95.8

95.8

96.2

96.2

95.8

95.8

$7,000

HP

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

8

Rebate per motor

Taking Care of Business


Percent rated efficiency 1200 RPM HP 1 1.5 2 3 5 7.5 10 15 20 25 30 40 50 60 75 100 125 150 200 250 300 350 400 450 500

New and replacement of nonoperating motors

Replacement of operating motors

84.0 87.5 88.5 89.5 90.2 91.0 92.4 92.4 93.0 93.6 94.1 94.5 94.5 95.0 95.0 95.4 95.4 95.8 95.8 95.4 95.4 95.4 95.8 96.2 96.2

82.5 86.5 87.5 88.5 89.5 90.2 91.7 91.7 92.4 93.0 93.6 94.1 94.1 94.5 94.5 95.0 95.0 95.4 95.4 95.4 95.4 95.4 95.8 96.2 96.2

Explosion-proof motor rebates HP

1 1.5 2 3 5 7.5 10 15 20 25 30 40 50 60 75 100 125 150 200 250 300

Percent rated efficiency 1800 RPM New and replacement of nonoperating motors 86.5 87.5 87.5 90.2 90.2 91.7 92.4 93.6 93.6 94.1 94.5 94.5 95.0 95.4 95.4 95.8 95.8 96.2 96.2 95.8 95.8 95.8 95.8 96.2 96.2

Percent rated efficiency 3600 RPM

Replacement of operating motors

New and replacement of nonoperating motors

85.5 86.5 86.5 89.5 89.5 91.0 91.7 93.0 93.0 93.6 94.1 94.1 94.5 95.0 95.0 95.4 95.4 95.8 95.8 95.8 95.8 95.8 95.8 96.2 96.2

78.5 85.5 86.5 86.5 87.5 89.5 90.2 91.0 91.7 92.4 92.4 93.0 93.6 94.1 94.1 94.1 94.5 94.5 95.4 95.0 95.4 95.4 95.8 95.8 95.8

Replacement of operating motors

Rebate per motor

77.0 84.0 85.5 85.5 86.5 88.5 89.5 90.2 91.0 91.7 91.7 92.4 93.0 93.6 93.6 93.6 94.1 94.1 95.0 95.0 95.4 95.4 95.8 95.8 95.8

Drive Power

Open drip-proof motor rebates

$40 $60 $80 $90 $150 $230 $300 $450 $600 $600 $700 $800 $1,000 $1,100 $1,200 $1,600 $2,000 $2,400 $2,800 $3,500 $4,200 $4,200 $5,000 $6,000 $7,000

For new, replacement of nonoperating, and replacement of operating motors

Percent rated efficiency 1200 RPM

Percent rated efficiency 1800 RPM

Percent rated efficiency 3600 RPM

Rebate per motor

82.5 86.5 85.5 87.5 88.5 90.0 90.0 91.0 90.0 92.0 92.4 93.6 93.6 94.1 94.0 94.5 94.5 95.0 95.0 95.0 95.0

84.0 84.0 85.5 85.5 88.5 90.0 90.0 91.7 91.7 93.0 93.0 93.6 93.6 94.0 94.5 94.5 95.0 95.4 95.8 95.0 95.4

76.0 84.0 84.0 85.5 86.5 86.5 89.5 90.2 90.2 91.0 91.0 92.0 92.4 93.0 93.6 93.6 94.1 94.1 95.0 95.0 95.4

$40 $60 $80 $90 $150 $230 $300 $450 $600 $600 $700 $800 $1,000 $1,100 $1,200 $1,600 $2,000 $2,400 $2,800 $3,500 $4,200

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Drive Power

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.

ASD rebates

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.

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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 16). Contact one of our representatives for details.

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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.

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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.

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

■

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

Guidelines

Horsepower

Rebate

0.125

$15

0.25

$30

0.33

$50

0.50

$70

0.75

$100

1.0

$125

1.5

$175

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

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Taking Care of Business


Energy-efficient refrigeration

Energy-efficient refrigeration A cool deal to raise profits 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.

Rebate information

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

3. Display cases and walk-ins.

1. Lower electric bills.

The amount of your rebate and savings will depend on the size of your refrigeration unit and the number of rebates that apply to your system. See the chart below for details.

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

Rebates are available in four areas of commercial refrigeration: 1. Refrigeration rack system upgrades. 2. Stand-alone condensing units. 4. Preventive maintenance and cleaning measures.

Commercial refrigeration rebates Measure

Incentive

Parallel rack (retrofit)

$100/HP

Conversion to solid-state compressor controls (retrofit)

$50/HP

Preservation of condenser subcooling (retrofit)

$40/HP

Floating head pressure on rack (retrofit)

$25/HP

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

$60/HP

Antisweat heater control (retrofit)

$20/lineal ft. of case

High-efficiency glass doors (new and retrofit)

$40/lineal ft. of case

High-efficiency evaporator fan motor (new)

$10/per motor

High-efficiency evaporator fan motor (retrofit)

$40/per motor

Solid-state condenser fan controls (retrofit)

$50/HP

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

$2/cfm airflow

High evaporator temp cases (new and retrofit)

$20/lineal ft. of case

Condenser-based antisweat heater control (new and retrofit)

$40/lineal ft. of case

LED lighting—low-temp (new and retrofit)

$100/door

LED lighting—mid-temp (new and retrofit)

$100/door

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

Up to $525 maximum reimbursement

*Preventive maintenance—31 to 100 HP Discounted price $39.95

Up to $800 maximum reimbursement

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

Up to $1,050 maximum reimbursement

*Customers are eligible for one preventive maintenance measure every two years.

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

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Heat pumps

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 Dual Fuel or Deferred Load Rates.

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 replacement for an operational natural gas heating system is not eligible for CIP rebates or financing. It may qualify for energy control rebates. Review the summary table below for qualifications and rebate levels.

Heat pump rebates Heat pump

CIP efficiency program rebates

Configuration

Qualifications

Air-to-water (AWHP)

Cold-climate heat pump (CCHP)

Geothermal heat pump

Ducted system

Ductless mini split system

Model labeled ENERGY STAR® with HSPF of ≥ 9; or Model labeled ENERGY STAR® with HSPF of ≥ 10; or

Energy control program rebates* Rebate

Qualifications

Rebate

COP ≥1.7 A5W110 and

$400 per ton

$400 per ton when rated with COP 1.7 A5W110 and served on our Dual Fuel Rate.

HSPF ≥ 9 and SEER ≥ 15; and

$700 per ton

Installed on a qualified rate;

HSPF ≥ 10 and SEER ≥ 15; and

Water to air open loop

COP ≥ 4.1; and EER ≥ 21.1; and

Water to air closed loop

COP ≥ 3.6; and EER ≥ 17.1; and

Water to water open loop

COP ≥ 3.5; and EER ≥ 20.1; and

Water to water closed loop

COP ≥ 3.1; and EER ≥ 16.1; and

New construction, retrofit, or replacement system. Does not qualify if installed to replace an operating natural gas heating system that is not considered at end of life.

$500 per ton

$1,000 per ton

Dual Fuel or Deferred Load and

HSPF ≥ 9

HSPF ≥ 10

$600 per ton

$400 per ton

Energy control rebate not available.

Single unit ≥6 tons COP ≥ 3.1 and EER ≥ 13 and 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. *Rebates totaling more than $10,000 require prior approval by program manager.

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Taking Care of Business


Heat pumps

Case study: Geothermal heat pump Heating and cooling system retrofit

• Annual fuel expense of $138,600 (fuel oil at $3.50/gallon). • Other operating expenses, including chemical treatment, boiler inspections, and operating license.

Installed cost for geothermal heat pump: $850,000 Rebate: $114,000

• Geothermal heat pump operating at 350 percent efficiency or greater. • Annual electric heating expenses of $18,000. Geothermal case study

Heating costs

BEFORE

• Fuel oil boilers operating at 60 percent seasonal efficiency.

AFTER

Building type: Public K-12 school Size: 82,000 square feet

Case study reflects possible results. Actual results including installation costs and energy cost savings may vary.

Payback: Six years

Air-to-water heat pumps (AWHPS)

Buffer tank or desuperheater

AWHPs are an emerging technology that 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.

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.

An AWHP can be installed to upgrade an existing hydronic underfloor heating system or applied to new systems. Some AWHPs operate efficiently down to -10°F while maintaining efficiency above 150 percent. 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 hot water. Learn more about AWHPs at otpco.com/AWHP.

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Thermal storage technologies

Thermal storage technologies A $40 per kilowatt rebate is available for installation of up to 500 kilowatts of thermal-storage applications served on the 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 fuel-operated equipment you’re comparing. The price shown is the all-in price fossil fuels must reach to break-even with electricity prices.

Energy source

Btus per unit

Level of efficiency

Type of heat

Propane

91,600 Btu/gallon

Natural gas

1,000,000 Btu/MCF

Resistance heat

100%

Fuel oil

140,000 Btu/gallon

Electricity

3,413 Btu/kilowatt-hour

Air-to-water heat pump

200%

Cold-climate heat pump

250%

Geothermal heat pump

400%

Break-even costs Electricity

100% efficient electric

Cost per kWh Fossil fuel

3.5¢

5.5¢

7.5¢

System efficiency

3.5¢

Propane (gallon)

80%

$0.75

90%

$0.85

Natural gas (MCF)

80%

$8.20

90%

$9.23

$14.50

$19.78

Fuel oil (gallon)

70%

$1.00

$1.58

$2.15

85%

$1.22

$1.92

$2.62

$0.61

Taking Care of Business

5.5¢

7.5¢

250% efficient electric 3.5¢

5.5¢

400% efficient electric

7.5¢

3.5¢

5.5¢

7.5¢

$0.19

$0.30

$0.40

Break-even point for electric to fossil fuel $1.18

$1.61

$0.38

$0.59

$1.33

$1.82

$0.42

$12.89

$17.58

$4.10

Current rates for off-peak options are available at otpco.com/pricing.

14

200% efficient electric

$0.81

$0.30

$0.47

$0.64

$0.66

$0.91

$0.34

$0.53

$0.72

$0.21

$0.33

$0.45

$6.45

$8.79

$2.81

$5.16

$7.03

$2.05

$3.22

$4.40

$4.61

$7.25

$9.89

$3.69

$5.80

$7.91

$2.31

$3.63

$4.95

$0.50

$0.79

$1.08

$0.40

$0.63

$0.86

$0.25

$0.40

$0.54

$0.96

$1.31

$0.49

$0.77

$1.05

$0.31

$0.48

$0.66


Water heater

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 a 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.

Electric water heating

Electric water heating

Receive an $8 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 Rebate

Application

Kilowatt requirements

Conditions

$300

≥ 80-gallon tank

Minimum of 4.5 kW

New controlled load

$150

≥ 80-gallon tank

Minimum of 4.5 kW

Replacement controlled load

$150

≥ 50-gallon < 80-gallon tank

Minimum of 4.5 kW

New controlled load

$75

≥ 50-gallon < 80-gallon tank

Minimum of 4.5 kW

Replacement controlled load

Minimum 120-gallon storage capacity, Heavy Duty Commercial

Minimum of 12 kW

New or replacement controlled load; $5,000 maximum rebate

$40/kW

Electric vehicle charging station Customers installing a Level 2 electric vehicle charging station as permanently connected load on a qualified 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

otpco.com 15


Commercial and industrial grants

Commercial and industrial grants You’re the boss No one knows your business as well as you. That’s the premise behind our grant program that lets you submit energy-savings proposals based on your individual needs.

Unlimited ideas!

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: ■

Air compressor change out

■

Compressed-air system improvements

■

Chillers

■

Heat-recovery systems

■

Process improvements

■

Heat pump and multi-vapor recovery (MVR) installations

■

Refrigeration improvements

Our analysis of your proposals for lighting, motors, adjustable-speed drives, and heat pumps may indicate greater savings potential under the programs designed for those technologies. Please refer to their respective sections in this booklet for more information.

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.

■

If the evaluation indicates that sufficient energy savings will result, we’ll let you know how much grant money you can expect from us to implement your energy-saving measures. Our analysis will include both the amount of the up-front grant and the estimated long-term savings.

■

You decide if the cash grant and long-term savings are attractive enough to proceed with your improvements.

■

If you proceed, you’ll receive a check for the approved amount when the installations are complete.

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.

■

Incentives for grant projects may be capped.

Measurement and verification Rules from the Minnesota Department of Energy Resources apply on 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 let us help ensure that you qualify for commercial and industrial grant program incentives.

16

Taking Care of Business


Integrated building design plus

Compressed air efficiency

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.

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.

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.

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

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.

Contact your Energy Management Representative or Industrial Services Engineer to learn more.

Other programs

Other programs

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 16). Measure

Incentive

No-loss drains

$150 per drain (up to 50 percent of project cost)

Efficient compressors <50 HP

$200 per HP

Flow controllers

$2,500 per controller (up to 50 percent of project cost)

Leak studies and repairs >50 HP

50 percent of study cost (up to $3,000)

Compressed air recommissioning study

100 percent of cost (up to $10,000)

Compressed air audit

50 percent of cost (up to $10,000)

Specific program rules and requirements apply. Applicants must use a compressed-air recommissioning study provider we’ve preapproved to be eligible for 100 percent study cost incentive. Contact your Otter Tail Power Company Energy Management Representative or Industrial Services Engineer before proceeding with any compressed-air improvements to ensure eligibility for program incentives.

otpco.com 17


Other programs

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 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.

RCx Lite

RCx offers lower study costs, a shorter timeline, and reduced energy savings requirements. RCx Lite measures may include tuning set points, optimizing controls, and using low- and 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 Lite applications is required to receive incentives.

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 begin right away. Customers may save up to 20 percent on their energy bills. The cost of the Turnkey RCx study: ■

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.

18

Taking Care of Business

Contact your Energy Management Representative or Industrial Services Engineer early in the development of your project to learn more about these programs.


Three factors determine your electric service bill ■

The amount of electricity you use.

Time of use/day service

■

The rate at which it’s used.

■

The time(s) it’s used.

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

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.

Price-response programs

Price-response programs

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.

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

Call our Idea Center at 800-493-3299 to get started.

otpco.com 19


Demand Response Rates

Demand Response Rates Participate in an off-peak program

Fixed Time of Delivery Rate

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:

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

■

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.

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.

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.

■

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 when permanently connected, metered, and subject to service according to the rate.

Deferred Load Rate

The Deferred Load Rate cuts heating and cooling costs by nearly 30 percent from our standard electric rates.

Summer-season cycling

In addition to qualified electric heating applications, water-heating equipment and Level 2 electric vehicle charging equipment may be added to this rate when permanently connected, metered, and subject to control.

Control limits and cost of energy

20

■

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.

Taking Care of Business

Rebates available

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.


Off-Peak Electric Vehicle 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.

With the 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.

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

Schedule and cost of energy

Control limits 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.

■

Two Dual Fuel Rates are available. One applies to systems with current transformer (CT) metering. The other is for systems installed with standard metering.

■

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.

■

Summer-season cycling of qualified loads is available.

■

Cost-of-energy charges apply.

■

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

■

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.

Demand Response Rates

Dual Fuel Rate

Rebates available

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

Summer-season cycling

A heat pump installed on the 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 qualified electric heating applications, water-heating equipment and Level 2 electric vehicle charging equipment may be added to this rate when permanently connected, metered, and subject to control.

otpco.com 21


Demand Response Rates

Water Heating Control Rate

CoolSavings air-conditioning control

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

Available for small businesses

An alternative for customers not interested in, or not able to install a separate service panel, is an $8 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

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.

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

■

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

■

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

■

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

■

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.

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.

■

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.

■

Rates permit control 12 months a year.

■

Rebates available

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

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. Otter Tail Power Company reserves 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.

22

Taking Care of Business


Commercial tax incentives

Commercial tax incentives The federal Business Energy Investment Tax Credit (ITC) has been amended a number of times, most recently in December 2020. The table below shows the value of the investment tax credit for each technology by year. The expiration date for solar technologies and wind is based on when construction begins. For all other technologies, the expiration date is based on when the system is placed in service (fully installed and being used for its intended purpose). Consult with your tax accountant for advice about the ITC. Technology

2022

2023

2024

2025

Future years

PV, solar water heating, solar space heating/ cooling, solar process heat

26%

22%

22%

22%

10%

Hybrid solar lighting, fuel cells, small wind

26%

22%

N/A

N/A

N/A

Geothermal electric

10%

10%

10%

10%

10%

Solar technologies Eligible solar energy property includes equipment that uses solar energy to generate electricity, to heat or cool (or provide hot water for use in) a structure, or to provide solar process heat. Hybrid solar lighting systems, which use solar energy to illuminate the inside of a structure using fiber-optic distributed sunlight, are eligible. Passive solar systems and solar pool-heating systems are not eligible.

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

Visit the following websites for design advice to help meet your savings goals:

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

newbuildings.org eere.energy.gov

otpco.com 23


Contact information We can help Our company is dedicated to the growth and vitality of the businesses we serve. We offer rebates and financing, and our team of commercial and industrial representatives can offer advice about efficient lighting and equipment to help existing local businesses manage electricity costs.

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

24

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

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

Roger Garton, C.E.M. Senior Commercial and Industrial Representative Bemidji, MN 218-739-8542 rgarton@otpco.com

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

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

Andrew Martig Energy Management Representative for the Morris, MN area 320-589-1593 Ext. 6203 amartig@optco.com

Taking Care of Business


Yes, I would like an Otter Tail Power Company Representative to contact me about the Taking Care of Business program(s) checked below.

Have an Otter Tail Power Company representative contact me Lighting rebates Motor rebates Adjustable-speed drive rebates Refrigeration rebates

Fold along this line Heat pump rebates Commercial and industrial grants Integrated building design plus program

Cut along this line

Compressed-air system audits or efficiency Recommissioning (RCx) programs Price-response programs Demand Response Rates and rebates CoolSavings

Fold along this line Business name/contact name Address City

State

Zip

Mailing address (if different from installation address) Email

Phone

Otter Tail Power Company account number

For faster service call our Idea Center at 800-493-3299.

otpco.com 25


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