-- The corporation is subject to federal and state legislation,
regulations and actions that may have a negative impact on its business
and results of operations.
-- Future operating results of the electric segment will be impacted by
the outcome of a rate case filed in Minnesota on October 1, 2007,
requesting an overall increase in Minnesota rates of 6.66%. The filing
includes a request for an interim rate increase of 5.41% beginning
November 30, 2007. If approved by the Minnesota Public Utilities
Commission (MPUC), interim rates will remain in effect for all
Minnesota customers until the MPUC makes a final determination on the
electric utility's request, which is expected by August 1, 2008. If
final rates are lower than interim rates, the electric utility will
refund Minnesota customers the difference with interest.
-- Certain costs currently included in the Fuel Clause Adjustment (FCA) in
retail rates may be excluded from recovery through the FCA but may be
subject to recovery through rates established in a general rate case.
Further, all, or portions of, gross margins on asset-based wholesale
electric sales may become subject to refund through the FCA as a result
of a general rate case.
-- Weather conditions or changes in weather patterns can adversely affect
the corporation's operations and revenues.
-- Electric wholesale margins could be further reduced as the Midwest
Independent Transmission System Operato
|SOURCE Otter Tail Corporation|
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