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 Operator 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
-- 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 $8.2 million in
costs related to the planned construction of a second electric
generating unit at its Big Stone Plant site as of December 31, 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 influenced by the existence of a Fe
|SOURCE Otter Tail Corporation|
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