-- Electric wholesale trading margins could be reduced or eliminated by
losses due to trading activities.
-- The corporation's electric generating facilities are subject to
operational risks that could result in unscheduled plant outages,
unanticipated operation and maintenance expenses and increased power
-- Wholesale sales of electricity from excess generation could be affected
by reductions in coal shipments to the Big Stone and Hoot Lake plants
due to supply constraints or rail transportation problems beyond the
-- The corporation's electric segment has capitalized $8.1 million in
costs related to the planned construction of a second electric
generating unit at its Big Stone Plant site as of September 30, 2007.
Should approvals of permits not be received on a timely basis, the
project could be at risk. If the project is abandoned for permitting or
other reasons, these capitalized costs and others incurred in future
periods may be subject to expense and may not be recoverable.
-- The corporation's manufacturer of wind towers operates in a market that
has been dependent on the Federal Production Tax Credit. This tax
credit is currently in place through December 31, 2008. Should this tax
credit not be renewed, the revenues and earnings of this business could
-- Federal and state environmental regulation could cause the corporation
to incur substantial capital expenditures which could result in
increased operating costs.
-- Existing or new laws or regulations addressing climate change or
reductions of greenhouse gas emissions by federal or state authorities,
such as mandated levels of renewable generation or mandatory reductions
in carbon dioxide (
|SOURCE Otter Tail Corporation|
Copyright©2007 PR Newswire.
All rights reserved