Otter Tail Corporation Announces Third Quarter Earnings and Maintains 2007 Earnings Guidance; Board of Directors Declare... (r market becomes more efficient. -- E...)

Otter Tail Corporation Announces Third Quarter Earnings and Maintains 2007 Earnings Guidance; Board of Directors Declares Dividend

Date:11/1/2007

r market becomes more efficient.

-- 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

purchase costs.

-- 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

corporation's control.

-- 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

be reduced.

-- 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 (
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Otter Tail Corporation Announces Third Quarter Earnings and Maintains 2007 Earnings Guidance; Board of Directors Declare...(r market becomes more efficient. -- E...),Health