1. 2017 Attachment O Customer Meeting
October 28, 2016

2. Agenda Meeting Purpose Otter Tail Power Company Profile
Attachment O Calculation
Capital Projects
Budget Risks
Question/Answer

3. Legal Disclosure
All numeric data provided in this presentation is preliminary and
subject to change.
All information will be finalized by 12/31/16.

4. Meeting Purpose
To provide an informational forum regarding Otter Tail’s forecasted Attachment O for 2017.
The forecasted Attachment O for 2017 is calculated using the FERC Form 1 Attachment O template under the MISO Tariff with a projected net revenue requirement and projected load.
Rates to become effective on January 1, 2017 for the joint pricing zone comprised of Otter Tail, Great River Energy, Missouri River Energy Services, Benson Municipal Utilities, Detroit Lakes Public Utilities, and Alexandria Light & Power.
The schedules provided herein reflect the recent FERC order approving a 10.32% ROE, plus a 50 basis point adder that OTP has been granted.

5. Service area NORTH DAKOTA SOUTH DAKOTA 70,000 Square miles
131,149 Customers
421 Communities
Avg. population about 458
770 Employees
445 Minnesota
210 North Dakota
115 South Dakota
About 800 MW owned generation
About 245 MW wind generation
About 5,300 miles of transmission lines
Service area
LANGDON WIND ENERGY CENTER
Rugby
Devils Lake
Crookston
Garrison
SOLWAY COMBUSTION TURBINE
Bemidji
COYOTE STATION
LUVERNE WIND FARM
ASHTABULA WIND ENERGY CENTER
Jamestown
ASHTABULA III
JAMESTOWN COMBUSTION TURBINE
NORTH DAKOTA
Fergus Falls
Wahpeton
HOOT LAKE PLANT
Oakes
SOUTH DAKOTA
Morris
BIG STONE PLANT
Milbank
LEGEND
Headquarters
Customer service center
LAKE PRESTON COMBUSTION TURBINE

6. Our mission
To produce and deliver electricity as reliably, economically, and environmentally responsibly as possible to the balanced benefit of customers, shareholders, and employees and to improve the quality of life in the areas in which we do business.

7. Our Vision
Growth and success—for our company and the rural communities we serve. We collaborate and prosper through responsible, resourceful action. We balance community, economic, and environmental commitments. Always.

8. Our VALUES INTEGRITY We conduct business responsibly and honestly.
SAFETY We provide safe workplaces and require safe work practices.
CUSTOMER FOCUS We provide reliable electricity and timely, courteous customer service.
COMMUNITY We care about the people and places we serve and improve the quality of life in the areas in which we do business.
RESOURCEFULNESS We draw on the ingenuity and expertise of various resources to create strategic, balanced, practical plans.

9. Attachment O Calculation

10. Forward Looking Attachment O
Forward Looking Rate Requirements
Rate Base
Operating Expenses
Revenue Requirement and Rates
Network Rate Summary

11. by November 1 of each year.
RATE REQUIREMENTS
Actual
By June 1 of each year, Otter Tail will post on OASIS all information regarding any Attachment O True-up Adjustments for the prior year.
By September 1 of each year, Otter Tail will hold a customer meeting to explain its Actual Year True-up Calculation.
Ex., 2016 Forward Looking Attachment O will be trued-up by June 1, 2017 with a corresponding Customer Meeting to be held by September 1, 2017.
Forward Looking
By September 1 of each year, Otter Tail will post on OASIS its projected Net Revenue Requirement, including the True-Up Adjustment and load for the upcoming year, and associated work papers.
A customer meeting will be held by October 31 of each year to explain its forward looking formula rate input projections and cost detail.
The MISO Transmission Owners will hold a Regional Cost Sharing stakeholder meeting
by November 1 of each year.

12. RATE BASE
Note: The above numbers are Transmission only

13. OPERATING EXPENSES
Note: The above numbers are Transmission only

14. REVENUE REQUIREMENT AND RATE

15. Rate Summary
Note: Displayed above are the primary drivers of the change between years. Other drivers may include but are not limited to: operating expenses, depreciation, property taxes, income taxes, revenue credits, allocation factors etc.

16. TOTAL TRANSMISSION REVENUE REQUIREMENT BREAKDOWN
Total Rev. Req. = $69,008,580
Net Attch. O ATRR = $29,349,109
Attch. GG Rev. Req. = $17,557,871
Attch. MM Rev. Req. = $22,101,600

17. 2017 transmission Projects

18. ATTACHMENT O CAPITAL PROJECTS: TRANSMISSION LINE PROJECTS > $250K

19. ATTACHMENTS GG AND MM CAPITAL PROJECTS: TRANSMISSION LINE PROJECTS > $250K

20. Timing of Capital Projects
Budget Risks
Revenue
Demand/
Weather
Regulatory Filings
Financing
Outages
Timing of Capital Projects

21. Manager – Regulatory Administration
Questions?
If you have any additional questions after the meeting, please submit via to:
Stuart Tommerdahl
Manager – Regulatory Administration
All questions and answers will be distributed by to all attendees. Additionally, the questions and answers will be posted on Otter Tail’s OASIS website ( within two weeks from the date of inquiry.