Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 08, 2018 | Jun. 30, 2017 | |
Document Information [Line Items] | |||
Entity Registrant Name | Otter Tail Corp | ||
Entity Central Index Key | 1,466,593 | ||
Trading Symbol | ottr | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding (in shares) | 39,626,594 | ||
Entity Public Float | $ 1,500,154,049 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Current Assets | ||
Cash and Cash Equivalents | $ 16,216 | |
Accounts Receivable: | ||
Trade (less allowance for doubtful accounts of $1,094 for 2017 and $1,246 for 2016) | 68,466 | 68,242 |
Other | 7,761 | 5,850 |
Inventories | 88,034 | 83,740 |
Unbilled Revenues | 22,427 | 20,080 |
Income Taxes Receivable | 1,181 | 662 |
Regulatory Assets | 22,551 | 21,297 |
Other | 12,491 | 8,144 |
Total Current Assets | 239,127 | 208,015 |
Investments | 8,629 | 8,417 |
Other Assets | 36,006 | 34,104 |
Goodwill | 37,572 | 37,572 |
Other Intangibles–Net | 13,765 | 14,958 |
Regulatory Assets | 129,576 | 132,094 |
Plant | ||
Electric Plant in Service | 1,981,018 | 1,860,357 |
Nonelectric Operations | 216,937 | 211,826 |
Construction Work in Progress | 141,067 | 153,261 |
Total Gross Plant | 2,339,022 | 2,225,444 |
Less Accumulated Depreciation and Amortization | 799,419 | 748,219 |
Net Plant | 1,539,603 | 1,477,225 |
Total Assets | 2,004,278 | 1,912,385 |
Current Liabilities | ||
Short-term Debt | 112,371 | 42,883 |
Current Maturities of Long-Term Debt, net of Unamortized Debt issuance Costs | 186 | 33,201 |
Accounts Payable | 84,185 | 89,350 |
Accrued Salaries and Wages | 21,534 | 17,497 |
Accrued Taxes | 16,808 | 16,000 |
Regulatory Liabilities | 9,688 | 3,294 |
Other Accrued Liabilities | 11,389 | 12,083 |
Liabilities of Discontinued Operations | 492 | 1,363 |
Total Current Liabilities | 256,653 | 215,671 |
Pensions Benefit Liability | 109,708 | 97,627 |
Other Postretirement Benefits Liability | 69,774 | 62,571 |
Other Noncurrent Liabilities | 22,769 | 21,706 |
Commitments and Contingencies (note 8) | ||
Deferred Credits | ||
Deferred Income Taxes | 100,501 | 226,591 |
Deferred Tax Credits | 21,379 | 22,849 |
Regulatory Liabilities - Long -Term | 232,893 | 82,433 |
Other | 3,329 | 7,492 |
Total Deferred Credits | 358,102 | 339,365 |
Capitalization (page 67) | ||
Total Long-Term Debt net of Unamortized Debt Issuance Costs | 490,380 | 505,341 |
Common Shares, Par Value $5 Per Share–Authorized, 50,000,000 Shares; Outstanding, 2017—39,557,491 Shares; 2016—39,348,136 Shares | 197,787 | 196,741 |
Premium on Common Shares | 343,450 | 337,684 |
Retained Earnings | 161,286 | 139,479 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (5,631) | (3,800) |
Total Common Equity | 696,892 | 670,104 |
Total Capitalization | 1,187,272 | 1,175,445 |
Total Liabilities and Equity | 2,004,278 | 1,912,385 |
Cumulative Preferred Shares [Member] | ||
Capitalization (page 67) | ||
Cumulative shares | ||
Cumulative Preference Shares [Member] | ||
Capitalization (page 67) | ||
Cumulative shares |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Trade, allowance for doubtful accounts | $ 1,094 | $ 1,262 |
Common shares, par value (in dollars per share) | $ 5 | $ 5 |
Common shares, authorized (in shares) | 50,000,000 | 50,000,000 |
Common shares, outstanding (in shares) | 39,557,491 | 39,348,136 |
Cumulative Preferred Shares [Member] | ||
Cumulative shares, authorized (in shares) | 1,500,000 | 1,500,000 |
Cumulative shares, without par value (in dollars per share) | $ 0 | $ 0 |
Cumulative shares, outstanding (in shares) | 0 | 0 |
Cumulative Preference Shares [Member] | ||
Cumulative shares, authorized (in shares) | 1,000,000 | 1,000,000 |
Cumulative shares, without par value (in dollars per share) | $ 0 | $ 0 |
Cumulative shares, outstanding (in shares) | 0 | 0 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Revenues | |||
Electric | $ 434,506 | $ 427,349 | $ 407,039 |
Product Sales | 414,844 | 376,190 | 372,765 |
Total Operating Revenues | 849,350 | 803,539 | 779,804 |
Operating Expenses | |||
Production Fuel – Electric | 59,690 | 54,792 | 42,744 |
Purchased Power – Electric System Use | 64,807 | 63,226 | 78,150 |
Electric Operation and Maintenance Expenses | 151,319 | 151,225 | 140,768 |
Cost of Products Sold (depreciation included below) | 316,562 | 295,222 | 295,032 |
Other Nonelectric Expenses | 43,240 | 40,264 | 40,021 |
Depreciation and Amortization | 72,545 | 73,445 | 60,363 |
Property Taxes – Electric | 15,053 | 14,266 | 13,512 |
Total Operating Expenses | 723,216 | 692,440 | 670,590 |
Operating Income | 126,134 | 111,099 | 109,214 |
Interest Charges | 29,604 | 31,886 | 31,160 |
Other Income | 2,632 | 2,905 | 2,177 |
Income Before Income Taxes – Continuing Operations | 99,162 | 82,118 | 80,231 |
Income Tax Expense – Continuing Operations | 27,043 | 20,081 | 21,642 |
Net Income from Continuing Operations | 72,119 | 62,037 | 58,589 |
Discontinued Operations | |||
Income (Loss) – net of Income Tax Expense (Benefit) of $213 in 2017, $138 in 2016, and ($1,539) in 2015 | 320 | 284 | (5,404) |
Impairment Loss – net of Income Tax (Benefit) of $0 in 2015 | (1,000) | ||
Gain on Disposition – net of Income Tax Expense of $4,530 in 2015 | 7,160 | ||
Net (Loss) Income | 320 | 284 | 756 |
Total Net Income | $ 72,439 | $ 62,321 | $ 59,345 |
Average Number of Common Shares Outstanding–Basic (in shares) | 39,457,261 | 38,546,459 | 37,494,986 |
Average Number of Common Shares Outstanding–Diluted (in shares) | 39,748,347 | 38,731,010 | 37,668,026 |
Basic Earnings Per Common Share: | |||
Continuing Operations (in dollars per share) | $ 1.83 | $ 1.61 | $ 1.56 |
Discontinued Operations (in dollars per share) | 0.01 | 0.01 | 0.02 |
(in dollars per share) | 1.84 | 1.62 | 1.58 |
Diluted Earnings Per Common Share: | |||
Continuing Operations (in dollars per share) | 1.81 | 1.60 | 1.56 |
Discontinued Operations (in dollars per share) | 0.01 | 0.01 | 0.02 |
(in dollars per share) | 1.82 | 1.61 | 1.58 |
Dividends Declared Per Common Share (in dollars per share) | $ 1.28 | $ 1.25 | $ 1.23 |
Consolidated Statements of Inc5
Consolidated Statements of Income (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Expense (Benefit) - Discontinued Operations | $ 213 | $ 138 | $ (1,539) |
Income tax (benefit) on impairment loss on discontinued operations | 0 | 0 | 0 |
Income tax expense of (loss) gain on disposition of discontinued operations | $ 0 | $ 0 | $ 4,530 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Income | $ 72,439 | $ 62,321 | $ 59,345 |
Unrealized Loss on Available-for-Sale Securities: | |||
Reversal of Previously Recognized Gains Realized on Sale of Investments and Included in Other Income During Period | (15) | (3) | (3) |
Gains (Losses) Arising During Period | 115 | (14) | (49) |
Income Tax (Expense) Benefit | (35) | 6 | 18 |
Change in Unrealized Losses on Available-for-Sale Securities – net-of-tax | 65 | (11) | (34) |
Pension and Postretirement Benefit Plans: | |||
Actuarial (Losses) Gains Net of Regulatory Allocation Adjustment | (3,791) | (445) | 510 |
Amortization of Unrecognized Postretirement Benefit Costs (note 10) | 629 | 628 | 821 |
Income Tax Benefit (Expense) | 1,266 | (74) | (532) |
Pension and Postretirement Benefit Plans – net-of-tax | (1,896) | 109 | 799 |
Total Other Comprehensive Income (Loss) | (1,831) | 98 | 765 |
Total Comprehensive Income | $ 70,608 | $ 62,419 | $ 60,110 |
Consolidated Statements of Comm
Consolidated Statements of Common Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total | |
Balance (in shares) at Dec. 31, 2014 | 37,218,053 | |||||
Balance at Dec. 31, 2014 | $ 186,090 | $ 278,436 | $ 112,903 | $ (4,663) | [1] | $ 572,766 |
Common Stock Issuances, Net of Expenses (in shares) | 690,485 | |||||
Common Stock Issuances, Net of Expenses | $ 3,453 | 14,715 | 18,168 | |||
Common Stock Retirements (in shares) | (51,352) | |||||
Common Stock Retirements | $ (257) | (1,339) | (1,596) | |||
Net Income | 59,345 | 59,345 | ||||
Other Comprehensive Income (Loss) | 765 | 765 | ||||
Tax Benefit – Stock Compensation | 82 | 82 | ||||
Employee Stock Incentive Plan Expense | 1,716 | 1,716 | ||||
Common Dividends | (46,223) | (46,223) | ||||
Balance (in shares) at Dec. 31, 2015 | 37,857,186 | |||||
Balance at Dec. 31, 2015 | $ 189,286 | 293,610 | 126,025 | (3,898) | [1] | 605,023 |
Common Stock Issuances, Net of Expenses (in shares) | 1,494,618 | |||||
Common Stock Issuances, Net of Expenses | $ 7,473 | 38,490 | 45,963 | |||
Common Stock Retirements (in shares) | (3,668) | |||||
Common Stock Retirements | $ (18) | (86) | (104) | |||
Net Income | 62,321 | 62,321 | ||||
Other Comprehensive Income (Loss) | 98 | 98 | ||||
Employee Stock Incentive Plan Expense | 3,178 | 3,178 | ||||
Common Dividends | (48,244) | (48,244) | ||||
ASU 2016-09 Adoption | 2,492 | (623) | 1,869 | |||
Balance (in shares) at Dec. 31, 2016 | 39,348,136 | |||||
Balance at Dec. 31, 2016 | $ 196,741 | 337,684 | 139,479 | (3,800) | [1] | 670,104 |
Common Stock Issuances, Net of Expenses (in shares) | 257,059 | |||||
Common Stock Issuances, Net of Expenses | $ 1,285 | 3,684 | 4,969 | |||
Common Stock Retirements (in shares) | (47,704) | |||||
Common Stock Retirements | $ (239) | (1,560) | (1,799) | |||
Net Income | 72,439 | 72,439 | ||||
Other Comprehensive Income (Loss) | (1,831) | (1,831) | ||||
Employee Stock Incentive Plan Expense | 3,642 | 3,642 | ||||
Common Dividends | (50,632) | (50,632) | ||||
Balance (in shares) at Dec. 31, 2017 | 39,557,491 | |||||
Balance at Dec. 31, 2017 | $ 197,787 | $ 343,450 | $ 161,286 | $ (5,631) | [1] | $ 696,892 |
[1] | (a) Accumulated Other Comprehensive Loss on December 31 is comprised of the following: (in thousands) 2017 2016 2015 Unrealized Gain (Loss) on Marketable Equity Securities: Before Tax $ 71 $ (29) $ (12) Tax Effect (25) 10 4 Unrealized Gain (Loss) on Marketable Equity Securities-net-of-tax 46 (19) (8) Unamortized Actuarial Losses and Prior Service Costs Related to Pension and Postretirement Benefits: Before Tax (9,462) (6,300) (6,484) Tax Effect 3,785 2,519 2,594 Unamortized Actuarial Losses and Prior Service Costs Related to Pension and Postretirement Benefits-net-of-tax (5,677) (3,781) (3,890) Accumulated Other Comprehensive Loss: Before Tax (9,391) (6,329) (6,496) Tax Effect 3,760 2,529 2,598 Net Accumulated Other Comprehensive Loss $ (5,631) $ (3,800) $ (3,898) |
Consolidated Statements of Com8
Consolidated Statements of Common Shareholders' Equity (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retained Earnings [Member] | |||
Dividends Declared Per Common Share (in dollars per share) | $ 1.28 | $ 1.25 | $ 1.23 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss), Before Tax | $ 71 | $ (29) | $ (12) |
Accumulated Other Comprehensive Income (Loss), Tax Effect | (25) | 10 | 4 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 46 | (19) | (8) |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss), Before Tax | (9,462) | (6,300) | (6,484) |
Accumulated Other Comprehensive Income (Loss), Tax Effect | 3,785 | 2,519 | 2,594 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (5,677) | (3,781) | (3,890) |
AOCI Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss), Before Tax | (9,391) | (6,329) | (6,496) |
Accumulated Other Comprehensive Income (Loss), Tax Effect | 3,760 | 2,529 | 2,598 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (5,631) | $ (3,800) | $ (3,898) |
Dividends Declared Per Common Share (in dollars per share) | $ 1.28 | $ 1.25 | $ 1.23 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (5,631) | $ (3,800) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities | |||
Net Income | $ 72,439 | $ 62,321 | $ 59,345 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | |||
Net Gain from Sale of Discontinued Operations | (7,160) | ||
Net (Income) Loss from Discontinued Operations | (320) | (284) | 6,404 |
Depreciation and Amortization | 72,545 | 73,445 | 60,363 |
Deferred Tax Credits | (1,470) | (1,657) | (1,878) |
Deferred Income Taxes | 24,001 | 19,124 | 26,027 |
Change in Deferred Debits and Other Assets | (2,173) | (10,090) | 11,407 |
Discretionary Contribution to Pension Fund | (10,000) | (10,000) | |
Change in Noncurrent Liabilities and Deferred Credits | 19,257 | 14,685 | 20,524 |
Allowance for Equity/Other Funds Used During Construction | (986) | (857) | (1,303) |
Change in Derivatives Net of Regulatory Deferral | (14,736) | ||
Stock Compensation Expense – Equity Awards | 3,642 | 3,178 | 1,716 |
Other—Net | 10 | 7 | (80) |
Cash (Used for) Provided by Current Assets and Current Liabilities: | |||
Change in Receivables | (2,135) | (944) | (1,746) |
Change in Inventories | (4,294) | 1,874 | 1,960 |
Change in Other Current Assets | (3,060) | (2,541) | (210) |
Change in Payables and Other Current Liabilities | (2,667) | 11,941 | (15,150) |
Change in Interest Payable and Income Taxes Receivable/Payable | (1,186) | 3,339 | (3,943) |
Net Cash Provided by Continuing Operations | 173,603 | 163,541 | 131,540 |
Net Cash Used in Discontinued Operations | (26) | (155) | (14,000) |
Net Cash Provided by Operating Activities | 173,577 | 163,386 | 117,540 |
Cash Flows from Investing Activities | |||
Capital Expenditures | (132,913) | (161,259) | (160,084) |
Proceeds from Disposal of Noncurrent Assets | 4,491 | 4,837 | 3,590 |
Acquisition Purchase Price Cash Received (Paid) | 1,500 | (30,806) | |
Cash Used for Investments and Other Assets | (4,168) | (4,402) | (6,302) |
Net Cash Used in Investing Activities – Continuing Operations | (132,590) | (159,324) | (193,602) |
Net Proceeds from Sale of Discontinued Operations | 39,401 | ||
Net Cash Used in Investing Activities – Discontinued Operations | (1,769) | ||
Net Cash Used in Investing Activities | (132,590) | (159,324) | (155,970) |
Cash Flows from Financing Activities | |||
Change in Checks Written in Excess of Cash | 2,434 | (3,363) | 2,857 |
Net Short-Term Borrowings (Repayments) | 69,488 | (37,789) | 69,818 |
Proceeds from Issuance of Common Stock – net of Issuance Expenses | 4,349 | 43,873 | 13,782 |
Payments for Retirement of Capital Stock | (1,799) | (104) | (1,596) |
Proceeds from Issuance of Long-Term Debt | 130,000 | ||
Short-Term and Long-Term Debt Issuance Expenses | (380) | (888) | (312) |
Payments for Retirement of Long-Term Debt | (48,231) | (87,547) | (212) |
Dividends Paid and Other Distributions | (50,632) | (48,244) | (46,223) |
Net Cash (Used in) Provided by Financing Activities – Continuing Operations | (24,771) | (4,062) | 38,114 |
Net Cash Provided by Financing Activities – Discontinued Operations | 316 | ||
Net Cash (Used in) Provided by Financing Activities | (24,771) | (4,062) | 38,430 |
Net Change in Cash and Cash Equivalents | 16,216 | ||
Cash and Cash Equivalents at Beginning of Period | |||
Cash and Cash Equivalents at End of Period | $ 16,216 |
Consolidated Statements of Capi
Consolidated Statements of Capitalization - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Short-term Debt | $ 112,371 | $ 42,883 |
Long-term Debt | 492,711 | 540,942 |
Less: Current Maturities net of Unamortized Debt Issuance Costs | 186 | 33,201 |
Unamortized Long-Term Debt Issuance Costs | 2,145 | 2,400 |
Total Long-Term Debt net of Unamortized Debt Issuance Costs | 490,380 | 505,341 |
Long-Term Debt | 492,711 | 540,942 |
Total Long-Term Debt net of Unamortized Debt Issuance Costs | 490,380 | 505,341 |
Total Common Shareholders’ Equity | 696,892 | 670,104 |
Total Capitalization | 1,187,272 | 1,175,445 |
Cumulative Preferred Shares [Member] | ||
Cumulative shares | ||
Cumulative Preference Shares [Member] | ||
Cumulative shares | ||
Parent Company [Member] | ||
Long-term Debt | 80,711 | 95,942 |
Less: Current Maturities net of Unamortized Debt Issuance Costs | 186 | 231 |
Unamortized Long-Term Debt Issuance Costs | 461 | 539 |
Total Long-Term Debt net of Unamortized Debt Issuance Costs | 80,064 | 95,172 |
Long-Term Debt | 80,711 | 95,942 |
Total Long-Term Debt net of Unamortized Debt Issuance Costs | 80,064 | 95,172 |
Total Capitalization | 776,956 | 765,276 |
Otter Tail Power Company [Member] | ||
Short-term Debt | 112,371 | 42,883 |
Long-term Debt | 412,000 | 445,000 |
Less: Current Maturities net of Unamortized Debt Issuance Costs | 32,970 | |
Unamortized Long-Term Debt Issuance Costs | 1,684 | 1,861 |
Total Long-Term Debt net of Unamortized Debt Issuance Costs | 410,316 | 410,169 |
Long-Term Debt | 412,000 | 445,000 |
Total Long-Term Debt net of Unamortized Debt Issuance Costs | 410,316 | 410,169 |
Otter Tail Corporation Credit Agreement [Member] | Parent Company [Member] | ||
Short-term Debt | ||
Otter Tail Power Company Credit Agreement [Member] | Parent Company [Member] | ||
Short-term Debt | 112,371 | 42,883 |
Term Loan, LIBOR plus 0.90%, due February 5, 2018 [Member] | Parent Company [Member] | ||
Long-term Debt | 15,000 | |
Long-Term Debt | 15,000 | |
The 3.55% Guaranteed Senior Notes, due December 15, 2026 [Member] | Parent Company [Member] | ||
Long-term Debt | 80,000 | 80,000 |
Long-Term Debt | 80,000 | 80,000 |
North Dakota Development Note, 3.95%, due April 1, 2018 [Member] | Parent Company [Member] | ||
Long-term Debt | 27 | 106 |
Long-Term Debt | 27 | 106 |
Partnership in Assisting Community Expansion Note, 2.54%, due March 18, 2021 [Member] | Parent Company [Member] | ||
Long-term Debt | 684 | 836 |
Long-Term Debt | 684 | 836 |
Senior Unsecured Notes 5.95%, Series A, Due August 20, 2017 [Member] | ||
Long-term Debt | 33,000 | |
Long-Term Debt | 33,000 | |
Senior Unsecured Notes 5.95%, Series A, Due August 20, 2017 [Member] | Otter Tail Power Company [Member] | ||
Long-term Debt | 33,000 | |
Long-Term Debt | 33,000 | |
Senior Unsecured Notes 4.63%, Due December 1, 2021 [Member] | ||
Long-term Debt | 140,000 | 140,000 |
Long-Term Debt | 140,000 | 140,000 |
Senior Unsecured Notes 4.63%, Due December 1, 2021 [Member] | Otter Tail Power Company [Member] | ||
Long-term Debt | 140,000 | 140,000 |
Long-Term Debt | 140,000 | 140,000 |
Senior Unsecured Notes 6.15%, Series B, Due August 20, 2022 [Member] | ||
Long-term Debt | 30,000 | 30,000 |
Long-Term Debt | 30,000 | 30,000 |
Senior Unsecured Notes 6.15%, Series B, Due August 20, 2022 [Member] | Otter Tail Power Company [Member] | ||
Long-term Debt | 30,000 | 30,000 |
Long-Term Debt | 30,000 | 30,000 |
Senior Unsecured Notes 6.37%, Series C, Due August 20, 2027 [Member] | ||
Long-term Debt | 42,000 | 42,000 |
Long-Term Debt | 42,000 | 42,000 |
Senior Unsecured Notes 6.37%, Series C, Due August 20, 2027 [Member] | Otter Tail Power Company [Member] | ||
Long-term Debt | 42,000 | 42,000 |
Long-Term Debt | 42,000 | 42,000 |
Senior Unsecured Notes 4.68%, Series A, Due February 27, 2029 [Member] | ||
Long-term Debt | 60,000 | 60,000 |
Long-Term Debt | 60,000 | 60,000 |
Senior Unsecured Notes 4.68%, Series A, Due February 27, 2029 [Member] | Otter Tail Power Company [Member] | ||
Long-term Debt | 60,000 | 60,000 |
Long-Term Debt | 60,000 | 60,000 |
Senior Unsecured Notes 6.47%, Series D, Due August 20, 2037 [Member] | ||
Long-term Debt | 50,000 | 50,000 |
Long-Term Debt | 50,000 | 50,000 |
Senior Unsecured Notes 6.47%, Series D, Due August 20, 2037 [Member] | Otter Tail Power Company [Member] | ||
Long-term Debt | 50,000 | 50,000 |
Long-Term Debt | 50,000 | 50,000 |
Senior Unsecured Notes 5.47%, Series B, Due February 27, 2044 [Member] | ||
Long-term Debt | 90,000 | 90,000 |
Long-Term Debt | 90,000 | 90,000 |
Senior Unsecured Notes 5.47%, Series B, Due February 27, 2044 [Member] | Otter Tail Power Company [Member] | ||
Long-term Debt | 90,000 | 90,000 |
Long-Term Debt | $ 90,000 | $ 90,000 |
Consolidated Statements of Ca11
Consolidated Statements of Capitalization (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Long-term Debt, Due Date | Mar. 18, 2021 | Mar. 18, 2021 |
Long-term Debt, Interest Rate | 2.54% | 2.54% |
Long-term Debt, Interest Rate | 2.54% | 2.54% |
Long-term Debt, Due Date | Mar. 18, 2021 | Mar. 18, 2021 |
Cumulative Preferred Shares [Member] | ||
Cumulative shares, without par value (in dollars per share) | $ 0 | $ 0 |
Cumulative shares, authorized (in shares) | 1,500,000 | 1,500,000 |
Cumulative shares, outstanding (in shares) | 0 | 0 |
Cumulative Preference Shares [Member] | ||
Cumulative shares, without par value (in dollars per share) | $ 0 | $ 0 |
Cumulative shares, authorized (in shares) | 1,000,000 | 1,000,000 |
Cumulative shares, outstanding (in shares) | 0 | 0 |
Term Loan, LIBOR plus 0.90%, due February 5, 2018 [Member] | Parent Company [Member] | ||
Long-term Debt, Due Date | Feb. 5, 2018 | Feb. 5, 2018 |
Long-term Debt, Due Date | Feb. 5, 2018 | Feb. 5, 2018 |
Term Loan, LIBOR plus 0.90%, due February 5, 2018 [Member] | London Interbank Offered Rate (LIBOR) [Member] | Parent Company [Member] | ||
Long-term Debt, Basis Spread on Variable Rate | 0.90% | 0.90% |
The 3.55% Guaranteed Senior Notes, due December 15, 2026 [Member] | Parent Company [Member] | ||
Long-term Debt, Due Date | Dec. 15, 2026 | Dec. 15, 2026 |
Long-term Debt, Interest Rate | 3.55% | 3.55% |
Long-term Debt, Interest Rate | 3.55% | 3.55% |
Long-term Debt, Due Date | Dec. 15, 2026 | Dec. 15, 2026 |
North Dakota Development Note, 3.95%, due April 1, 2018 [Member] | Parent Company [Member] | ||
Long-term Debt, Due Date | Apr. 1, 2018 | Apr. 1, 2018 |
Long-term Debt, Interest Rate | 3.95% | 3.95% |
Long-term Debt, Interest Rate | 3.95% | 3.95% |
Long-term Debt, Due Date | Apr. 1, 2018 | Apr. 1, 2018 |
Partnership in Assisting Community Expansion Note, 2.54%, due March 18, 2021 [Member] | Parent Company [Member] | ||
Long-term Debt, Due Date | Mar. 18, 2021 | Mar. 18, 2021 |
Long-term Debt, Interest Rate | 2.54% | 2.54% |
Long-term Debt, Interest Rate | 2.54% | 2.54% |
Long-term Debt, Due Date | Mar. 18, 2021 | Mar. 18, 2021 |
Senior Unsecured Notes 5.95%, Series A, Due August 20, 2017 [Member] | ||
Long-term Debt, Due Date | Aug. 20, 2017 | |
Long-term Debt, Interest Rate | 5.95% | |
Long-term Debt, Interest Rate | 5.95% | |
Long-term Debt, Due Date | Aug. 20, 2017 | |
Senior Unsecured Notes 5.95%, Series A, Due August 20, 2017 [Member] | Otter Tail Power Company [Member] | ||
Long-term Debt, Due Date | Aug. 20, 2017 | Aug. 20, 2017 |
Long-term Debt, Interest Rate | 5.95% | 5.95% |
Long-term Debt, Interest Rate | 5.95% | 5.95% |
Long-term Debt, Due Date | Aug. 20, 2017 | Aug. 20, 2017 |
Senior Unsecured Notes 4.63%, Due December 1, 2021 [Member] | ||
Long-term Debt, Due Date | Dec. 1, 2021 | Dec. 1, 2021 |
Long-term Debt, Interest Rate | 4.63% | 4.63% |
Long-term Debt, Interest Rate | 4.63% | 4.63% |
Long-term Debt, Due Date | Dec. 1, 2021 | Dec. 1, 2021 |
Senior Unsecured Notes 4.63%, Due December 1, 2021 [Member] | Otter Tail Power Company [Member] | ||
Long-term Debt, Due Date | Dec. 1, 2021 | Dec. 1, 2021 |
Long-term Debt, Interest Rate | 4.63% | 4.63% |
Long-term Debt, Interest Rate | 4.63% | 4.63% |
Long-term Debt, Due Date | Dec. 1, 2021 | Dec. 1, 2021 |
Senior Unsecured Notes 6.15%, Series B, Due August 20, 2022 [Member] | ||
Long-term Debt, Due Date | Aug. 20, 2022 | Aug. 20, 2022 |
Long-term Debt, Interest Rate | 6.15% | 6.15% |
Long-term Debt, Interest Rate | 6.15% | 6.15% |
Long-term Debt, Due Date | Aug. 20, 2022 | Aug. 20, 2022 |
Senior Unsecured Notes 6.15%, Series B, Due August 20, 2022 [Member] | Otter Tail Power Company [Member] | ||
Long-term Debt, Due Date | Aug. 20, 2022 | Aug. 20, 2022 |
Long-term Debt, Interest Rate | 6.15% | 6.15% |
Long-term Debt, Interest Rate | 6.15% | 6.15% |
Long-term Debt, Due Date | Aug. 20, 2022 | Aug. 20, 2022 |
Senior Unsecured Notes 6.37%, Series C, Due August 20, 2027 [Member] | ||
Long-term Debt, Due Date | Aug. 20, 2027 | Aug. 20, 2027 |
Long-term Debt, Interest Rate | 6.37% | 6.37% |
Long-term Debt, Interest Rate | 6.37% | 6.37% |
Long-term Debt, Due Date | Aug. 20, 2027 | Aug. 20, 2027 |
Senior Unsecured Notes 6.37%, Series C, Due August 20, 2027 [Member] | Otter Tail Power Company [Member] | ||
Long-term Debt, Due Date | Aug. 20, 2027 | Aug. 20, 2027 |
Long-term Debt, Interest Rate | 6.37% | 6.37% |
Long-term Debt, Interest Rate | 6.37% | 6.37% |
Long-term Debt, Due Date | Aug. 20, 2027 | Aug. 20, 2027 |
Senior Unsecured Notes 4.68%, Series A, Due February 27, 2029 [Member] | ||
Long-term Debt, Due Date | Feb. 27, 2029 | Feb. 27, 2029 |
Long-term Debt, Interest Rate | 4.68% | 4.68% |
Long-term Debt, Interest Rate | 4.68% | 4.68% |
Long-term Debt, Due Date | Feb. 27, 2029 | Feb. 27, 2029 |
Senior Unsecured Notes 4.68%, Series A, Due February 27, 2029 [Member] | Otter Tail Power Company [Member] | ||
Long-term Debt, Due Date | Feb. 27, 2029 | Feb. 27, 2029 |
Long-term Debt, Interest Rate | 4.68% | 4.68% |
Long-term Debt, Interest Rate | 4.68% | 4.68% |
Long-term Debt, Due Date | Feb. 27, 2029 | Feb. 27, 2029 |
Senior Unsecured Notes 6.47%, Series D, Due August 20, 2037 [Member] | ||
Long-term Debt, Due Date | Aug. 20, 2037 | Aug. 20, 2037 |
Long-term Debt, Interest Rate | 6.47% | 6.47% |
Long-term Debt, Interest Rate | 6.47% | 6.47% |
Long-term Debt, Due Date | Aug. 20, 2037 | Aug. 20, 2037 |
Senior Unsecured Notes 6.47%, Series D, Due August 20, 2037 [Member] | Otter Tail Power Company [Member] | ||
Long-term Debt, Due Date | Aug. 20, 2037 | Aug. 20, 2037 |
Long-term Debt, Interest Rate | 6.47% | 6.47% |
Long-term Debt, Interest Rate | 6.47% | 6.47% |
Long-term Debt, Due Date | Aug. 20, 2037 | Aug. 20, 2037 |
Senior Unsecured Notes 5.47%, Series B, Due February 27, 2044 [Member] | ||
Long-term Debt, Due Date | Feb. 27, 2044 | Feb. 27, 2044 |
Long-term Debt, Interest Rate | 5.47% | 5.47% |
Long-term Debt, Interest Rate | 5.47% | 5.47% |
Long-term Debt, Due Date | Feb. 27, 2044 | Feb. 27, 2044 |
Senior Unsecured Notes 5.47%, Series B, Due February 27, 2044 [Member] | Otter Tail Power Company [Member] | ||
Long-term Debt, Due Date | Feb. 27, 2044 | Feb. 27, 2044 |
Long-term Debt, Interest Rate | 5.47% | 5.47% |
Long-term Debt, Interest Rate | 5.47% | 5.47% |
Long-term Debt, Due Date | Feb. 27, 2044 | Feb. 27, 2044 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Significant Accounting Policies and New Accounting Pronouncements [Text Block] | 1. Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements of Otter Tail Corporation and its wholly owned subsidiaries (the Company) include the accounts of the following segments: Electric, Manufacturing and Plastics. See note 2 980, Regulated Operations 980 Regulation and ASC 980 The Company ’s regulated electric utility company, Otter Tail Power Company (OTP), accounts for the financial effects of regulation in accordance with ASC 980. 4 OTP is subject to various state and federal agency regulations. The accounting policies followed by this business are subject to the Uniform System of Accounts of the Federal Energy Regulatory Commission (FERC). These accounting policies differ in some respects from those used by the Company ’s nonelectric businesses. Plant, Retirements and Depreciation Utility plant is stated at original cost. The cost of additions includes contracted work, direct labor and materials, allocable overheads and allowance for funds used during construction. The amount of interest capitalized on electric utility plant was $741,000 2017, $495,000 2016 $723,000 2015. 5 82 2.74% 2017, 2.88% 2016 2.61% 2015. Property and equipment of nonelectric operations are carried at historical cost or at fair value if acquired in a business combination, and are depreciated on a straight-line basis over the assets’ estimated useful lives ( 3 40 No 2017, 2016 2015. Recoverability of Long-Lived Assets The Company reviews its long-lived assets whenever events or changes in circumstances indicate the carrying amount of the assets may not Jointly Owned Facilities OTP is a joint owner in two four one December 31, 2017 2016 Jointly Owned Facilities ( dollars in thousands) OTP Ownership Percentage Electric Plant in Service Construction Work in Progress Accumulated Depreciation Net Plant December 31, 201 7 Big Stone Plant 53.9 % $ 329,942 $ 1,074 $ (74,165 ) $ 256,851 Coyote Station 35.0 % 177,721 158 (103,944 ) 73,935 Fargo-Monticello 345 kV line 14.2 % 78,192 -- (4,667 ) 73,525 Brookings-Southeast Twin Cities 345 kV line 1 4.8 % 26,269 -- (1,293 ) 24,976 Bemidji-Grand Rapids 230 kV line 14.8 % 16,331 -- (1,753 ) 14,578 Big Stone South –Brookings 345 kV line 1 50.0 % 53,225 -- (434 ) 52,791 Big Stone South –Ellendale 345 kV line 1 50.0 % -- 89,980 -- 89,980 December 31, 201 6 Big Stone Plant 53.9 % $ 328,809 $ 23 $ (65,665 ) $ 263,167 Coyote Station 35.0 % 176,315 113 (101,499 ) 74,929 Fargo-Monticello 345 kV line 14.2 % 78,298 -- (3,511 ) 74,787 Brookings-Southeast Twin Cities 345 kV line 1 4.8 % 26,406 -- (924 ) 25,482 Bemidji-Grand Rapids 230 kV line 14.8 % 16,331 -- (1,573 ) 14,758 Big Stone South –Brookings 345 kV line 1 50.0 % -- 45,050 -- 45,050 Big Stone South –Ellendale 345 kV line 1 50.0 % -- 49,160 -- 49,160 1 Midcontinent Independent System Operator, Inc. (MISO) Multi-Value Project (MVP) designation provides for a return on invested funds while under construction under the MISO Open Access Transmission, Energy and Operating Reserve Markets Tariff (MISO Tariff). The Company ’s share of direct revenue and expenses of the jointly owned facilities is included in operating revenue and expenses in the consolidated statements of income. Coyote Station Lignite Supply Agreement – Variable Interest Entity —In October 2012 May 2016 December 2040. May 2016 December 2040 No none, none not If the LSA terminates prior to the expiration of its term or the production period terminates prior to December 31, 2040 ’s applicable lender) assume, all of CCMC’s obligations owed to CCMC’s lenders under its loans and leases. The Coyote Station owners have limited rights to assign their rights and obligations under the LSA without the consent of CCMC’s lenders during any period in which CCMC’s obligations to its lenders remain outstanding. In the event the contract is terminated because regulations or legislation render the burning of coal cost prohibitive and the assets worthless, OTP’s maximum exposure to loss as a result of its involvement with CCMC as of December 31, 2017 $57.1 35% Income Taxes Comprehensive interperiod income tax allocation is used for substantially all book and tax temporary differences. Deferred income taxes arise for all temporary differences between the book and tax basis of assets and liabilities. Deferred taxes are recorded using the tax rates scheduled by tax law to be in effect in the periods when the temporary differences reverse. The Company amortizes investment tax credits over the estimated lives of related property. The Company records income taxes in accordance with ASC Topic 740, Income Taxes, not” not” 50%. 13 The Company also is required to assess the realizability of its deferred tax assets, taking into consideration the Company ’s forecast of future taxable income, the reversal of other existing temporary differences, available net operating loss carryforwards and available tax planning strategies that could be implemented to realize the deferred tax assets. Based on this assessment, management must evaluate the need for, and amount of, valuation allowances against the Company’s deferred tax assets. To the extent facts and circumstances change in the future, adjustments to the valuation allowance may On December 22, 2017, Tax Cuts and Jobs Act of 2017 13 Revenue Recognition Due to the diverse business operations of the Company, revenue recognition depends on the product produced and sold or service performed. The Company recognizes revenue when the earnings process is complete, evidenced by an agreement with the customer, there has been delivery and acceptance, the price is fixed or determinable and collectability is reasonably assured. In cases where significant obligations remain after delivery, revenue recognition is deferred until such obligations are fulfilled. Provisions for sales returns are recorded at the time of the sale based on historical information and current trends. For the Company ’s operating companies recognizing revenue on certain products when shipped, those operating companies have no The majority of the revenues recorded by the companies in the Manufacturing and Plastics segments are recorded when products are shipped. Customer electricity use is metered and bills are rendered monthly. Revenue is accrued for electricity consumed but not is recognized for fuel and purchased power costs incurred in excess of amounts recovered in base rates but not not Revenues on wholesale electricity sales from Company-owned generating units are recognized when energy is delivered. For shared use of transmission facilities with certain regional transmission cooperatives, revenues are estimated. Bills are rendered based on anticipated usage and settlements are made later based on actual usage. Estimated revenues may Under ASC Topic 815, Derivatives and Hedging accounts for forward energy contracts as derivatives subject to mark-to-market accounting unless those contracts meet the definition of a capacity contract or are not Warranty Reserves Certain products sold by the Company’s manufacturing and plastics companies carry product warranties for one no not three Shipping and Handling Costs The Company includes revenues received for shipping and handling in operating revenues. Expenses paid for shipping and handling are recorded as part of cost of goods sold. U se of Estimates The Company uses estimates based on the best information available in recording transactions and balances resulting from business operations. As better information becomes available (or actual amounts are known), the recorded estimates are revised. Consequently, operating results can be affected by revisions to prior accounting estimates. Cash Equivalents The Company considers all highly liquid debt instruments purchased with maturity of 90 Investments The following table provides a breakdown of the Company ’s investments at December 31: (in thousands) 201 7 201 6 Cost Method: Economic Development Loan Pools $ 45 $ 54 Other 115 115 Equity Method Partnerships 24 23 Marketable Debt Securities Classified as Available-for-Sale 7,160 8,225 Marketable Equity Securities Classified as Available-for-Sale 1,285 -- Total Investments $ 8,629 $ 8,417 The Company ’s marketable securities classified as available-for-sale are held for insurance purposes and are reflected at their fair values on December 31, 2017. Agreements Subject to Legally Enforceable Netting Arrangements OTP has certain derivative contracts that are designated as normal purchases and carried at historical cost in the accompanying balance sheet. Individual counterparty exposures for these contracts can be offset according to legally enforceable netting arrangements. The Company does not Fair Value Measurements The Company follows ASC Topic 820, Fair Value Measurements and Disclosures 820 820 three Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 Level 2 – Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities included in Level 2 Level 3 – Significant inputs to pricing have little or no 3 may The following tables present, for each of the hierarchy levels, the Company ’s assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2017 December 31, 2016: Dec ember 3 1 , 201 7 (in thousands) Level 1 Level 2 Level 3 Assets: Investments: Equity Funds – Held by Captive Insurance Company $ 1,285 Corporate Debt Securities – Held by Captive Insurance Company $ 5,373 Government-Backed and Government-Sponsored Enterprises ’ Debt Securities – Held by Captive Insurance Company 1,787 Other Assets: Money Market and Mutual Funds – Nonqualified Retirement Savings Plan 823 Total Assets $ 2,108 $ 7,160 December 31, 2016 (in thousands) Level 1 Level 2 Level 3 Assets: Investments: Corporate Debt Securities – Held by Captive Insurance Company $ 5,280 Government-Backed and Government-Sponsored Enterprises ’ Debt Securities – Held by Captive Insurance Company 2,945 Other Assets: Money Market and Mutual Funds – Nonqualified Retirement Savings Plan $ 849 Total Assets $ 849 $ 8,225 The valuation techniques and inputs used for the Level 2 Government-Backed and Government-Sponsored Enterprises ’ and Corporate Debt Securities Held by the Company’s Captive Insurance Company – Fair values are determined on the basis of valuations provided by a third may Inventories Electric segment inventories are reported at average cost. The Manufacturing and Plastics segments’ inventories are stated at the lower of average cost or market. Inventories consist of the following at December 31: (in thousands) 201 7 201 6 Finished Goods $ 26,605 $ 27,755 Work in Process 14,222 11,754 Raw Material, Fuel and Supplies 47,207 44,231 Total Inventories $ 88,034 $ 83,740 Goodwill and Other Intangible Assets The Company accounts for goodwill and other intangible assets in accordance with the requirements of ASC Topic 350, Intangibles—Goodwill and Other, fourth may not In the first 2015, $1.0 based on adjustments to the carrying value of Foley. The first 2015 15 On September 1, 2015 $8.2 million. A final determination of the purchase price was agreed to in June 2016 $2.2 June 2016. The following table s summarize changes to goodwill by business segment during 2017 2016: (in thousands) Gross Balance December 31, 201 6 Accumulated Impairments Balance (net of impairments) December 31, 201 6 Adjustments to Goodwill in 201 7 Balance (net of impairments) December 31, 201 7 Manufacturing $ 18,270 $ -- $ 18,270 $ -- $ 18,270 Plastics 19,302 -- 19,302 -- 19,302 Total $ 37,572 $ -- $ 37,572 $ -- $ 37,572 (in thousands) Gross Balance December 31, 2015 Accumulated Impairments Balance (net of impairments) December 31, 2015 Adjustments to Goodwill in 2016 Balance (net of impairments) December 31, 2016 Manufacturing $ 20,430 $ -- $ 20,430 $ (2,160 ) $ 18,270 Plastics 19,302 -- 19,302 -- 19,302 Total $ 39,732 $ -- $ 39,732 $ (2,160 ) $ 37,572 Intangible assets with finite lives are amortized over their estimated useful lives and reviewed for impairment in accordance with requirements under ASC Topic 360 10 35, Property, Plant, and Equipment—Overall—Subsequent Measurement 2017 $154,000 September 2017 The following table summarizes the components of the Company ’s intangible assets at December 31, 2017 December 31, 2016: December 31 , 2017 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Remaining Amortization Periods (months) Amortizable Intangible Assets: Customer Relationships $ 22,491 $ 8,994 $ 13,497 24 - 212 Covenant not to Compete 590 459 131 8 Other 154 17 137 32 Total $ 23,235 $ 9,470 $ 13,765 December 31, 2016 (in thousands) Amortizable Intangible Assets: Customer Relationships $ 22,491 $ 7,861 $ 14,630 36 - 224 Covenant not to Compete 590 262 328 20 Total $ 23,081 $ 8,123 $ 14,958 The amortization expense for these intangible assets was: (in thousands) 2017 2016 2015 Amortization Expense – Intangible Assets $ 1,347 $ 1,436 $ 1,127 The estimated annual amortization expense for these intangible assets for the next five (in thousands) 2018 2019 2020 2021 2022 Estimated Amortization Expense – Intangible Assets $ 1,315 $ 1,184 $ 1,133 $ 1,099 $ 1,099 Supplemental Disclosures of Cash Flow Information As of December 31, (in thousands) 201 7 201 6 Noncash Investing Activities: Transactions Related to Capital Additions not Settled in Cash $ 13,887 $ 13,533 (in thousands) 201 7 201 6 201 5 Cash Paid (Received) During the Year for: Interest (net of amount capitalized) $ 29,791 $ 31,269 $ 30,512 Income Taxes $ 5,064 $ (1,291 ) $ 7,322 New Accounting Standards Adopted Accounting Standards Update (ASU) 2015 11 —In July 2015 No. 2015 11, Inventory (Topic 330 December 15, 2016. 2015 11 first 2017. not New Accounting Standards Pending Adoption ASU 2014 09 —In May 2014 No. 2014 09, Revenue from Contracts with Customers (Topic 606 606 606 606 Amendments to the ASC in ASU 2014 09, December 15, 2017. 1 2 one 3 e date of initial application. As of December 31, 2017 2014 09 may 2014 09. not 2016 09. 2014 09 January 1, 2018, not 606 no 2014 09 may The Company will report adjustments to Alternative Revenue Program (ARP) revenues at OTP as a separate line item within revenue on the face of the Company’s consolidated statements of income. The ARP revenue adjustments are recorded on the basis of recoverable costs incurred and returns earned under rate riders and are not ASU 2016 02 —In February 2016 No. 2016 02, Leases (Topic 842 2016 02 2016 02 842, 840 842 842 842 842 2016 02 December 15, 2018, 2016 02 2016 02, 2016 02 not 2016 02 2019. ASU 2017 04 —In January 2017 No. 2017 04, Intangibles—Goodwill and Other (Topic 350 2017 04 simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 2 In computing the implied fair value of goodwill under Step 2, Under the amendments in ASU 2017 04, not The amendments in ASU 2017 04 no 2 2017 04 December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. ASU 2017 07 —In March 2017 No. 2017 07, Compensation—Retirement Benefits (Topic 715 2017 07 is intended to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. ASC Topic 715, Compensation—Retirement Benefits 715 , not not 2017 07 715 2017 07 2017 07 December 15, 2017, The majority of the Company ’s benefit costs to which the amendments in ASU 2017 07 2017 07 2017 07 2017 07 2017 07. The Company does not 2017 07 first 2018, 2017 2017 07 2017 $0.8 2017 07 $5.6 2017 $5.1 2016. |
Note 2 - Business Combinations,
Note 2 - Business Combinations, Dispositions and Segment Information | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Business Combination, Disposition, and Segment Information Disclosure [Text Block] | 2 . Business Combinations, Dispositions and Segment Information Business Combinations The Company acquired no 2017 2016. On September 1, 2015 $30.8 $1.5 June 2016 $29.3 30 ’s existing customers from a location closer to the customers’ manufacturing facilities, this acquisition provides opportunities for growth in new and existing markets for BTD with complementing production capabilities that expand the capacity of services offered by BTD. Pro forma results of operations have not not Below is condensed balance sheet information disclosing the final allocation of the purchase price assigned to each major asset and liability category of BTD-Georgia: (in thousands) Assets: Current Assets $ 4,906 Goodwill 6,083 Other Intangible Assets 6,270 Other Amortizable Assets 1,380 Fixed Assets 13,649 Total Assets $ 32,288 Liabilities: Current Liabilities $ 2,971 Lease Obligation 11 Total Liabilities $ 2,982 Cash Paid $ 29,306 In execution of the Company ’s announced strategy of realigning its business portfolio to reduce its risk profile and dedicate a greater portion of its resources toward electric utility operations, the Company sold several of its holdings in recent years. On December 31, 2014 April 30, 2015 February 28, 2015. The results of operations of the Company’s recently disposed businesses are reported as discontinued operations in the Company’s consolidated financial statements as of and for the years ended December 31, 2017, 2016 2015, 15 Segment Information The accounting policies of the segments are described under note 1 – Summary of Significant Accounting Policies. The Company's businesses have been classified into three three Electric includes the production, transmission, distribution and sale of electric energy in Minnesota, North Dakota and South Dakota by OTP. In addition, OTP is a participant in the MISO markets. OTP ’s operations have been the Company’s primary business since 1907. Manufacturing consists of businesses in the following manufacturing activities: contract machining, metal parts stamping, fabrication and painting, and production of plastic thermoformed horticultural containers, life science and industrial packaging, and material handling components. These businesses have manufacturing facilities in Georgia, Illinois and Minnesota and sell products primarily in the United States. Plastics consists of businesses producing polyvinyl chloride (PVC) pipe at plants in North Dakota and Arizona. The PVC pipe is sold primarily in the upper Midwest and Southwest regions of the United States. OTP is a wholly owned subsidiary of the Company. All of the Company ’s other businesses are owned by its wholly owned subsidiary, Varistar Corporation (Varistar). The Company’s Corporate operating costs include items such as corporate staff and overhead costs, the results of the Company’s captive insurance company and other items excluded from the measurement of operating segment performance. Corporate assets consist primarily of cash, prepaid expenses, investments and fixed assets. Corporate is not No 10% ’s consolidated revenues in 2017, 2016 2015. no 10% 2017, 2017 one 11.7% 2017 one 24.3% 2017 one 12.0% 2017 two 20.6% 17.8% 2017 one All of the Company ’s long-lived assets are within the United States and sales within the United States accounted for 98.2% 2017, 98.6% 2016 97.1% 2015. The Company evaluates the performance of its business segments and allocates resources to them based on earnings contribution and return on total invested capital. Information on continuing operations for the business segments for 2017, 2016 2015 (in thousands) 201 7 201 6 201 5 Operating Revenue Electric $ 434,537 $ 427,383 $ 407,131 Manufacturing 229,738 221,289 215,011 Plastics 185,132 154,901 157,758 Intersegment Eliminations (57 ) (34 ) (96 ) Total $ 849,350 $ 803,539 $ 779,804 Cost of Products Sold Manufacturing $ 176,473 $ 171,732 $ 171,956 Plastics 140,107 123,496 123,085 Intersegment Eliminations (18 ) (6 ) (9 ) Total $ 316,562 $ 295,222 $ 295,032 Other Nonelectric Expenses Manufacturing $ 23,785 $ 21,994 $ 21,116 Plastics 11,564 9,402 9,849 Corporate 7,930 8,896 9,143 Intersegment Eliminations (39 ) (28 ) (87 ) Total $ 43,240 $ 40,264 $ 40,021 Depreciation and Amortization Electric $ 53,276 $ 53,743 $ 44,786 Manufacturing 15,379 15,794 11,853 Plastics 3,817 3,861 3,552 Corporate 73 47 172 Total $ 72,545 $ 73,445 $ 60,363 Operating Income (Loss) Electric $ 90,392 $ 90,131 $ 87,171 Manufacturing 14,101 11,769 10,086 Plastics 29,644 18,142 21,272 Corporate (8,003 ) (8,943 ) (9,315 ) Total $ 126,134 $ 111,099 $ 109,214 Interest Charges Electric $ 25,334 $ 25,069 $ 24,371 Manufacturing 2,215 3,859 3,560 Plastics 633 1,034 1,026 Corporate and Intersegment Eliminations 1,422 1,924 2,203 Total $ 29,604 $ 31,886 $ 31,160 Income Tax Expense (Benefit) – Continuing Operations Electric $ 17,013 $ 16,366 $ 16,067 Manufacturing 989 2,276 2,299 Plastics 7,448 6,538 8,187 Corporate 1,593 (5,099 ) (4,911 ) Total $ 27,043 $ 20,081 $ 21,642 Net Income (Loss) Electric $ 49,446 $ 49,829 $ 48,370 Manufacturing 11,050 5,694 4,247 Plastics 21,696 10,628 12,108 Corporate (10,073 ) (4,114 ) (6,136 ) Discontinued Operations 320 284 756 Total $ 72,439 $ 62,321 $ 59,345 (in thousands) 2017 2016 2015 Capital Expenditures Electric $ 118,444 $ 149,648 $ 135,572 Manufacturing 9,916 8,429 20,295 Plastics 4,432 3,085 4,206 Corporate 121 97 11 Total $ 132,913 $ 161,259 $ 160,084 Identifiable Assets Electric $ 1,690,224 $ 1,622,231 $ 1,520,887 Manufacturing 167,023 166,525 173,860 Plastics 87,230 84,592 81,624 Corporate 59,801 39,037 42,312 Total $ 2,004,278 $ 1,912,385 $ 1,818,683 |
Note 3 - Rate and Regulatory Ma
Note 3 - Rate and Regulatory Matters | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Public Utilities Disclosure [Text Block] | 3. Below are descriptions of OTP ’s major capital expenditure projects that have had, or will have, a significant impact on OTP’s revenue requirements, rates and alternative revenue recovery mechanisms, followed by summaries of specific electric rate or rider proceedings with the Minnesota Public Utilities Commission (MPUC), the North Dakota Public Service Commission (NDPSC), the South Dakota Public Utilities Commission (SDPUC) and the FERC, impacting OTP’s revenues in 2017, 2016 2015. Major Capital Expenditure Projects Big Stone South –Ellendale Multi-Value Transmission Project (MVP) 345 163 December 2011. second 2016 2019. December 31, 2017 $90.0 100% Big Stone South –Brookings MVP —This 345 70 December 2011. third 2015 September 8, 2017. December 31, 2017 $72.7 100% Recovery of OTP ’s major transmission investments is through the MISO Tariff (several as MVPs) and, currently, Minnesota, North Dakota and South Dakota Transmission Cost Recovery (TCR) Riders. Reagent Costs OTP ’s systemwide costs for reagents are expected to increase to approximately $2.2 May 2021 50%, 40% 10%, 2015 Minnesota 2016 —The MPUC rendered its final decision in OTP’s 2016 March 2017 May 1, 2017. 8.61% 7.5056% 10.74% 9.41%. July 6, 2017 May 1, 2017 The MPUC ’s order also included: ( 1 2 Information on interim and final rate increases and interim revenue refund s accrued is detailed in the tables below: ($ in thousands) Interim Rates Authorized April 14, 2016 Final Rates Revenue Increase – Annualized based on Test Year Data $ 16,816 $ 10,471 Revenue Percent Increase 9.56 % 5.34 % Return on Rate Base 8.07 % 7.5056 % Jurisdictional Rate Base based on Test Year Data $ 483,000 $ 471,000 Return on Equity 10.40 % 9.41 % Based on Equity to Total Capital of 52.50 % 52.50 % Debt to Total Capital 47.50 % 47.50 % Interim Revenue (in thousands) April 16, 2016 through October 31, 2017 Billed $ 23,289 Accrued Refund $ 8,779 Net Interim Revenue $ 14,510 Interest on Refundable Amount $ 265 Final Refund $ 9,044 In addition to the interim rate refund, OTP will be required to refund the difference between ( 1 ECR and TCR riders based on the return on equity (ROE) approved in its most recent rider update and ( 2 9.41% 2016 April 16, 2016, October 31, 2017 $0.9 $1.4 12 November 1, 2017, OTP accrue d interim and rider rate refunds until final rates became effective, for bills rendered on and after November 1, 2017. The final interim rate refund, including interest, of $9.0 November 17, 2017. Minnesota Conservation Improvement Programs (MNCIP) 1.5% The Minnesota Department of Commerce (MNDOC) may may not On May 25, 2016 MNDOC’s proposed changes to the MNCIP financial incentive. The new model provides utilities an incentive of 13.5% 2017 12% 2018 10% 2019 1.7% 50% $5.0 2016 $4.3 2015. Based on results from the 201 7 $2.6 2017. 2017 10% 2016 2017 not $2.6 April 1, 2018. Transmission Cost Recovery Rider —The Minnesota Public Utilities Act (the MPU Act) provides a mechanism for automatic adjustment outside of a general rate proceeding to recover the costs of new transmission facilities that have been previously approved by the MPUC in a Certificate of Need (CON) proceeding, certified by the MPUC as a Minnesota priority transmission project, made to transmit the electricity generated from renewable generation sources ultimately used to provide service to the utility's retail customers, or exempt from the requirement to obtain a Minnesota CON. The MPUC may may MISO regional cost allocation allows OTP to recover some of the costs of its transmission investment from other MISO customers. In OTP ’s 2016 May 1, 2017, two August 18, 2017 1935, 2018. Environmental Cost Recovery Rider — OTP had an ECR rider for recovery of OTP’s Minnesota jurisdictional share of the revenue requirements of its investment in the Big Stone Plant Air Quality Control System (AQCS). The ECR rider provided for a return on the project’s construction work in progress (CWIP) balance at the level approved in OTP’s 2010 2016 November 2017. Reagent Costs and Emission Allowances —On July 31, 2014 March 12, 2015 2016 2016 May 1, 2017 North Dakota General Rates — O n November 2, 2017 $13.1 8.72%. 7.97% 10.30%. December 20, 2017 $12.8 January 1, 2018. 2018 OTP ’s most recent general rate increase in North Dakota of $3.6 3.0%, November 25, 2009 December 2009. 8.62%, 10.75%. Renewable Resource Adjustment —OTP has a North Dakota Renewable Resource Adjustment which enables OTP to recover its North Dakota jurisdictional share of investments in renewable energy facilities. This rider allows OTP to recover costs associated with new renewable energy projects as they are completed, along with a return on investment. Transmission Cost Recovery Rider —North Dakota law provides a mechanism for automatic adjustment outside of a general rate proceeding to recover jurisdictional capital and operating costs incurred by a public utility for new or modified electric transmission facilities. For qualifying projects, the law authorizes a current return on CWIP and a return on investment at the level approved in the utility's most recent general rate case. Environmental Cost Recovery Rider —OTP has an ECR rider in North Dakota to recover its North Dakota jurisdictional share of the revenue requirements associated with its investment in the Big Stone Plant AQCS and Hoot Lake Plant MATS projects. The ECR rider provides for a return on investment at the level approved in OTP’s most recent general rate case and for recovery of OTP’s North Dakota share of reagent and emission allowance costs. South Dakota 2010 —OTP’s most recent general rate increase in South Dakota of approximately $643,000 2.32% April 21, 2011 June 1, 2011. 8.50%. Transmission Cost Recovery Rider —South Dakota law provides a mechanism for automatic adjustment outside of a general rate proceeding to recover jurisdictional capital and operating costs incurred by a public utility for new or modified electric transmission facilities. Environmental Cost Recovery Rider —OTP has an ECR rider in South Dakota to recover its South Dakota jurisdictional share of revenue requirements associated with its investment in the Big Stone Plant AQCS and Hoot Lake Plant MATS projects. Reagent Costs and Emission Allowances —On August 1, 2014 September 16, 2014 TCJA The TCJA reduced the federal corporate income tax rate from 35% 21%. 35% January 30, 2018 February 15, 2018, not OTP currently has an active rate case in North Dakota and anticipates incorporating the impact of the tax changes to North Dakota rates within that proceeding. February 1, 2018 December 31, 2017 OTP is still assessing these impacts and will continue to work with the respective commissions to determine if any rate adjustments are necessary, and if so, to determine the appropriate timing and approach for making those adjustments. Rate Rider Updates The following table provides summary information on the status of updates since January 1, 201 4 Rate Rider R - Request Date A - Approval Date Effective Date Requested or Approved Annual Revenue ($000s) Rate Minnesota Conservation Improvement Program 2016 Incentive and Cost Recovery A – September 15, 2017 October 1, 2017 $ 9,868 $0.00536/kwh 2015 Incentive and Cost Recovery A – July 19, 2016 October 1, 2016 $ 8,590 $0.00275/kwh 2014 Incentive and Cost Recovery A – July 10, 2015 October 1, 2015 $ 8,689 $0.00287/kwh 201 3 Incentive and Cost Recovery A – September 26, 2014 October 1, 201 4 $ 8,862 $0.002 63/kwh Transmission Cost Recovery 2017 Rate Reset 1 A – October 30, 2017 November 1, 2017 $ (3,311 ) Various 2016 Annual Update A – July 5, 2016 September 1, 2016 $ 4,736 Various 2015 Annual Update A – March 9, 2016 April 1, 2016 $ 7,203 Various 2014 Annual Update A – February 18, 2015 March 1, 2015 $ 8,388 Various 201 3 Annual Update A – June 24, 2014 March 1, 201 4 $ 2,066 Various Environmental Cost Recovery 2017 Rate Reset A – October 30, 2017 November 1, 2017 $ (1,943 ) -0.935% of base 2016 Annual Update A – July 5, 2016 September 1, 2016 $ 11,884 6.927% of base 2015 Annual Update A – March 9, 2016 October 1, 2015 $ 12,104 7.006% of base 201 4 Annual Update A – November 26, 2014 December 1, 2014 $ 9,229 2 7.006 % of base North Dakota Renewable Resource Adjustment 2017 Rate Reset A – December 20, 2017 January 1, 2018 $ 9,989 7.756% of base 2016 Annual Update A – March 15, 2017 April 1, 2017 $ 9,156 7.005% of base 2015 Annual Update A – June 22, 2016 July 1, 2016 $ 9,262 7.573% of base 2014 Annual Update A – March 25, 2015 April 1, 2015 $ 5,441 4.069% of base 201 3 Annual Update A – March 12, 2014 April 1, 201 4 $ 8,068 $0.00 437/kwh Transmission Cost Recovery 2017 Annual Update A – November 29, 2017 January 1, 2018 $ 7,959 Various 2016 Annual Update A – December 14, 2016 January 1, 2017 $ 6,916 Various 2015 Annual Update A – December 16, 2015 January 1, 2016 $ 9,985 Various 201 4 Annual Update A – December 17, 2014 January 1, 201 5 $ 8,463 Various Environmental Cost Recovery 2017 Rate Reset A – December 20, 2017 January 1, 2018 $ 8,537 6.629% of base 2017 Annual Update A – July 12, 2017 August 1, 2017 $ 9,917 7.633% of base 2016 Annual Update A – June 22, 2016 July 1, 2016 $ 10,359 7.904% of base 2015 Annual Update A – June 17, 2015 July 1, 2015 $ 12,249 9.193% of base 201 4 Annual Update A – July 10, 2014 August 1 , 2014 $ 9,880 7.531 % of base South Dakota Transmission Cost Recovery 201 7 Annual Update R – November 1, 2017 March 1, 201 8 $ 1,779 Various 2016 Annual Update A – February 17, 2017 March 1, 2017 $ 2,053 Various 2015 Annual Update A – February 12, 2016 March 1, 2016 $ 1,895 Various 2014 Annual Update A – February 13, 2015 March 1, 2015 $ 1,538 Various 201 3 Annual Update A – February 18, 2014 March 1, 201 4 $ 1,349 Various Environmental Cost Recovery 2017 Annual Update A – October 13, 2017 November 1, 2017 $ 2,082 $0.00483/kwh 2016 Annual Update A – October 26, 2016 November 1, 2016 $ 2,238 $0.00536/kwh 2015 Annual Update A – October 15, 2015 November 1, 2015 $ 2,728 $0.00643/kwh 201 4 Initial Request A – November 25, 2014 December 1, 2014 $ 1,995 $0.00 487/kwh 1 Approved on a provisional basis in the Minnesota general rate case docket and subject to revision in a separate docket. 2 Amount approved for recovery over ten September 30, 2015. 2014 $10.2 October 1, 2014. October 1, 2014 November 30, 2014. Revenues Recorded under Rate Riders The following table presents revenue recorded by OTP under rate riders in place in Minnesota, North Dakota and South Dakota for the years ended December 31: Rate Rider (in thousands) 201 7 201 6 201 5 Minnesota Conservation Improvement Program Costs and Incentives 1 $ 9,225 $ 12,920 $ 10,724 Transmission Cost Recovery 2,973 5,795 5,202 Environmental Cost Recovery 8,148 12,443 10,238 North Dakota Renewable Resource Adjustment 7,620 7,800 8,409 Transmission Cost Recovery 8,729 7,694 6,609 Environmental Cost Recovery 9,782 11,089 9,502 South Dakota Transmission Cost Recovery 1,843 1,820 1,290 Environmental Cost Recovery 2,345 2,538 1,967 Conservation Improvement Program Costs and Incentives 598 468 583 1 Includes MNCIP costs recovered in base rates. F ERC Wholesale power sales and transmission rates are subject to the jurisdiction of the FERC under the Federal Power Act. The FERC is an independent agency with jurisdiction over rates for wholesale electricity sales, transmission and sale of electric energy in interstate commerce, interconnection of facilities, and accounting policies and practices. Filed rates are effective after a one Multi-Value Transmission Projects —On December 16, 2010 On November 12, 2013 may 12.38% ’s transmission rates to a proposed 9.15%. 15 November 12, 2013 February 11, 2015. December 22, 2015 10.32%, September 28, 2016 10.32%. September 2016 On November 6, 2014 50 January 5, 2015 November 12, 2013 ’s incentive rate filing, OTP’s ROE will be 10.82% 10.32% 0.5% September 28, 2016. On February 12, 2015 may 12.38% 8.67%. second second 15 February 12, 2015 May 11, 2016. June 18, 2015 February 16, 2016. June 30, 2016 ’ ROE should be 9.7%. second Based on the probable reduction by the FERC in the ROE component of the MISO Tariff, OTP had a $2.7 December 31, 2016, ’s best estimate of the refund obligations that would arise, net of amounts that would be subject to recovery under state jurisdictional TCR riders, based on a reduced ROE. MISO processed the refund for the FERC-ordered reduction in the MISO Tariff allowed ROE for the first 15 February June 2017 2016 $2.7 December 31, 2016 $1.6 December 31, 2017. In June 2014, two two April 2017 ’s June 2014 not June 2014 April 2017 September 29, 2017 second second first |
Note 4 - Regulatory Assets and
Note 4 - Regulatory Assets and Liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Schedule of Regulatory Assets and Liabilities [Text Block] | 4. As a regulated entity, OTP accounts for the financial effects of regulation in accordance with ASC 980. 980 605 25 December 31 , 2017 Remaining Recovery/ (in thousands) Current Long-Term Total Refund Period (months) Regulatory Assets: Prior Service Costs and Actuarial Losses on Pensions and Other Postretirement Benefits 1 $ 9,090 $ 112,487 $ 121,577 see below Conservation Improvement Program Costs and Incentives 2 7,385 2,774 10,159 21 Accumulated ARO Accretion/Depreciation Adjustment 1 -- 6,651 6,651 asset lives Deferred Marked-to-Market Losses 1 4,063 2,405 6,468 36 Big Stone II Unrecovered Project Costs – Minnesota 1 650 1,636 2,286 40 MISO Schedule 26/26A Transmission Cost Recovery Rider True-up 2 -- 1,985 1,985 24 Debt Reacquisition Premiums 1 254 960 1,214 177 Big Stone II Unrecovered Project Costs – South Dakota 2 100 442 542 65 North Dakota Renewable Resource Rider Accrued Revenues 2 206 236 442 15 North Dakota Deferred Rate Case Expenses Subject to Recovery 1 309 -- 309 12 Minnesota Deferred Rate Case Expenses Subject to Recovery 1 267 -- 267 4 North Dakota Environmental Cost Recovery Rider Accrued Revenues 2 152 -- 152 12 Minnesota E nergy Intensive Trade Exposed Rider Accrued Revenues 2 75 -- 75 12 Total Regulatory Assets $ 22,551 $ 129,576 $ 152,127 Regulatory Liabilities: Deferred Income Taxes $ -- $ 149,052 $ 149,052 asset lives Accumulated Reserve for Estimated Removal Costs – Net of Salvage -- 83,100 83,100 asset lives Re fundable Fuel Clause Adjustment Revenues 5,778 -- 5,778 12 Minnesota Environmental Cost Recovery Rider Accrued Refund 1,667 -- 1,667 11 Minnesota Transmission Cost Recovery Rider Accrued Refund 802 609 1,411 22 Minnesota Renewable Resource Recovery Rider Accrued Refund 409 -- 409 12 North Dakota Transmission Cost Recovery Rider Accrued Refund 349 -- 349 12 Revenue for Rate Case Expenses Subject to Refund – Minnesota 208 -- 208 4 South Dakota Environmental Cost Recovery Rider Accrued Refund 187 -- 187 12 MISO Schedule 26/26A Transmission Cost Recovery Rider True-up 132 48 180 24 South Dakota Transmission Cost Recovery Rider Accrued Refund 151 -- 151 12 Other 5 84 89 192 Total Regulatory Liabilities $ 9,688 $ 232,893 $ 242,581 Net Regulatory Asset /(Liability) Position $ 12,863 $ (103,317 ) $ (90,454 ) 1 Costs subject to recovery without a rate of return. 2 Amount eligible for recovery under an alternative revenue program which includes an incentive or rate of return. December 31, 2016 Remaining Recovery/ (in thousands) Current Long-Term Total Refund Period (months) Regulatory Assets: Prior Service Costs and Actuarial Losses on Pensions and Other Postretirement Benefits 1 $ 6,443 $ 108,267 $ 114,710 see below Conservation Improvement Program Costs and Incentives 2 4,836 5,158 9,994 21 Accumulated ARO Accretion/Depreciation Adjustment 1 -- 6,153 6,153 asset lives Deferred Marked-to-Market Losses 1 4,063 6,467 10,530 48 Big Stone II Unrecovered Project Costs – Minnesota 1 778 2,087 2,865 52 MISO Schedule 26/26A Transmission Cost Recovery Rider True-up 2 333 -- 333 12 Debt Reacquisition Premiums 1 325 1,214 1,539 189 Big Stone II Unrecovered Project Costs – South Dakota 2 100 543 643 77 North Dakota Renewable Resource Rider Accrued Revenues 2 1,319 482 1,801 15 Minnesota Deferred Rate Case Expenses Subject to Recovery 1 1,082 -- 1,082 12 North Dakota Environmental Cost Recovery Rider Accrued Revenues 2 113 -- 113 12 Deferred Income Taxes 1 -- 1,014 1,014 asset lives Recoverable Fuel and Purchased Power Costs 1 1,798 -- 1,798 12 Minnesota Renewable Resource Rider Accrued Revenues 2 34 -- 34 9 North Dakota Transmission Cost Recovery Rider Accrued Revenues 2 -- 568 568 24 South Dakota Transmission Cost Recovery Rider Accrued Revenues 2 73 141 214 14 Total Regulatory Assets $ 21,297 $ 132,094 $ 153,391 Regulatory Liabilities: Deferred Income Taxes $ -- $ 818 $ 818 asset lives Accumulated Reserve for Estimated Removal Costs – Net of Salvage -- 80,404 80,404 asset lives Minnesota Environmental Cost Recovery Rider Accrued Refund 139 -- 139 12 Minnesota Transmission Cost Recovery Rider Accrued Refund 757 -- 757 12 North Dakota Transmission Cost Recovery Rider Accrued Refund 1,381 782 2,163 24 Revenue for Rate Case Expenses Subject to Refund – Minnesota 711 208 919 16 South Dakota Environmental Cost Recovery Rider Accrued Refund 285 -- 285 12 MISO Schedule 26/26A Transmission Cost Recovery Rider True-up -- 132 132 24 Other 21 89 110 204 Total Regulatory Liabilities $ 3,294 $ 82,433 $ 85,727 Net Regulatory Asset Position $ 18,003 $ 49,661 $ 67,664 1 Costs subject to recovery without a rate of return. 2 Amount eligible for recovery under an alternative revenue program which includes an incentive or rate of return. The regulatory liabilit y and asset related to Deferred Income Taxes results from changes in statutory tax rates accounted for in accordance with ASC Topic 740, Income Taxes The regulatory asset related to prior service costs and actuarial losses on pensions and other postretirement benefits represents benefit costs and actuarial losses subject to recovery through rates as they are expensed over the remaining service lives of active employees included in the plans. These unrecognized benefit costs and actuarial losses are required to be recognized as components of Accumulated Other Comprehensive Income in equity under ASC Topic 715, Compensation—Retirement Benefits Conservation Improvement Program Costs and Incentives represent mandated conservation expenditures and incentives recoverable through retail electric rates. The Accumulated Asset Retirement Obligation (ARO) Accretion/Depreciation Adjustment will accrete and be amortized over the lives of property with asset retirement obligations. All Deferred Marked-to-Market Losses recorded as of December 31, 2017 December 2020. Big Stone II Unrecovered Project Costs – Minnesota are the Minnesota share of generation and transmission plant-related costs incurred by OTP related to its participation in the abandoned Big Stone II project. MISO Schedule 26/26A 26/26A Debt Reacquisition Premiums are being recovered from OTP customers over the remaining original lives of the reacquired debt issues, the longest of which is 1 77 Big Stone II Unrecovered Project Costs – South Dakota are the South Dakota share of generation and transmission plant-related costs incurred by OTP related to its participation in the abandoned Big Stone II project. North Dakota Renewable Resource Rider Accrued Revenues relate to qualifying renewable resource costs incurred to serve North Dakota customers that have not December 31, 2017. North Dakota Deferred Rate Case Expenses Subject to Recovery relate to costs incurred in conjunction with OTP’s current rate case in North Dakota currently being recovered over a 12 January 2018. Minnesota Deferred Rate Case Expenses Subject to Recovery relate to costs incurred in conjunction with OTP ’s 2016 24 April 2016. North Dakota Environmental Cost Recovery Rider Accrued Revenues relate to revenues earned on the North Dakota share of OTP’s investments in the Big Stone Plant AQCS and Hoot Lake Plant MATS projects and for reagent and emission allowances costs that are recoverable from North Dakota customers as of December 31, 2017. Minnesota Energy Intensive Trade Exposed Rider Accrued Revenues relate to revenues recorded for fuel and purchased power costs reductions provided to customers in energy intensive trade exposed industries that are subject to recovery from other Minnesota customers. The Accumulated Reserve for Estimated Removal Costs – Net of Salvage is reduced as actual removal costs, net of salvage revenues, are incurred. The Minnesota Environmental Cost Recovery Rider Accrued Refund relates to amounts collected on the Minnesota share of OTP ’s investment in the Big Stone Plant AQCS project that are refundable to Minnesota customers as of December 31, 2017. The Minnesota Transmission Cost Recovery Rider Accrued Refund relates to amounts collected for qualifying transmission system facilities and operating costs incurred to serve Minnesota customers that are refundable to Minnesota customers as of December 31, 2017. The Minnesota R enewable Resource Rider Accrued Refund relates to amounts collected for qualifying renewable resource costs incurred to serve Minnesota customers that are refundable to Minnesota customers as of December 31, 2017. The North Dakota Transmission Cost Recovery Rider Accrued Refund relates to amounts collected for qualifying transmission system facilities and operating costs incurred to serve North Dakota customers that are refundable to North Dakota customers as of December 31, 2017. Revenue for Rate Case Expenses Subject to Refund – Minnesota relates to revenues collected under general rates to recover costs related to prior rate case proceedings in excess of the actual costs incurred, which are subject to refund over a 24 April 2016. The South Dakota Environmental Cost Recovery Rider Accrued Refund relates to amounts collected on the South Dakota share of OTP ’s investments in the Big Stone Plant AQCS and Hoot Lake Plant MATS projects that are refundable to South Dakota customers as of December 31, 2017. The South Dakota Transmission Cost Recovery Rider Accrued Revenues relate to revenues earned on qualifying transmission system facilities that had not December 31, 2016. The South Dakota Transmission Cost Recovery Rider Accrued Refund relates to amounts collected for qualifying transmission system facilities and operating costs incurred to serve South Dakota customers that are refundable to South Dakota customers as of December 31, 2017. If for any reason OTP ceases to meet the criteria for application of guidance under ASC 980 no 980 |
Note 5 - Common Shares and Earn
Note 5 - Common Shares and Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Stockholders Equity and Earnings per Share [Text Block] | 5 . Common Shares and Earnings p er Share Shelf Registration The Company ’s shelf registration statement filed with the Securities and Exchange Commission (SEC) on May 11, 2015, may May 11, 2018. Common Share Distribution Agreement On May 11, 2015, may $75 million. Under the Distribution Agreement, the Company will designate the minimum price and maximum number of shares to be sold through JPMS on any given trading day or over a specified period of trading days, and JPMS will use commercially reasonable efforts to sell such shares on such days, subject to certain conditions. Sales of the shares, if any, will be made by means of ordinary brokers’ transactions on the NASDAQ Global Select Market at market prices or as otherwise agreed with JPMS. The Company may not not 201 7 Common Stock Activity Following is a reconciliation of the Company ’s common shares outstanding from December 31, 2016 December 31, 2017: Common Shares Outstanding December 31, 2016 39,348,136 Issuances: Executive Stock Performance Awards (2014 shares earned) 89,291 Automatic Dividend Reinvestment and Share Purchase Plan: Dividends Reinvested 68,235 Cash Invested 29,463 Vesting of Restricted Stock Units 22,225 Restricted Stock Issued to Directors 17,600 Employee Stock Ownership Plan 14,835 Employee Stock Purchase Plan: Dividends Reinvested 9,566 Cash Invested 5,284 Directors Deferred Compensation 560 Retirements: Shares Withheld for Individual Income Tax Requirements (47,704 ) Common Shares Outstanding December 31, 2017 39,557,491 2014 Stock Incentive Plan The 2014 2014 April 2014, 1,900,000 2014 1,244,353 December 31, 2017. 2014 December 13, 2023. Employee Stock Purchase Plan The 1999 ed eligible employees to purchase the Company’s common shares at 85% six December 31, 2016. January 1, 2017, 100% six April 16, 2012, 900,000 1,400,000 1,400,000 374,624 December 31, 2017. 9,486 2017, 53,875 2016 42,253 2015. 49 2017 Dividend Reinvestment and Share Purchase Plan The Company’s shelf registration statement filed with the SEC on May 11, 2015, October 13, 2015, 1,500,000 97,698 2017, 278,811 2016 302,519 2015, 820,972 December 31, 2017. Earnings Per Share The numerator used in the calculation of both basic and diluted earnings per common share is net income with no 2017, 2016 2015. not 201 7 201 6 201 5 Weighted Average Common Shares Outstanding – Basic 39,457,261 38,546,459 37,494,986 Plus Outstanding Share Awards net of Share Reductions for Unrecognized Stock-Based Compensation Expense and Excess Tax Benefits: Shares Expected to be Awarded for Stock Performance Awards Granted to Executive Officers based on Measurement Period-to-Date Performance 210,784 118,644 100,194 Underlying Shares Related to Nonvested Restricted Stock Units Granted to Employees 56,952 45,712 36,180 Nonvested Restricted Shares 20,380 16,778 22,848 Shares Expected to be Issued Under the Deferred Compensation Program for Directors 2,970 3,417 13,488 Potentially Dilutive Stock Options -- -- 330 Total Dilutive Shares 291,086 184,551 173,040 Weighted Average Common Shares Outstanding – Diluted 39,748,347 38,731,010 37,668,026 The effect of dilutive shares on earnings per share for the years ended December 31, 2017, 2016 2015, no $0.014 |
Note 6 - Share-based Payments
Note 6 - Share-based Payments | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 6 . Share-Based Payments Purchase Plan Through December 31, 2016, he Purchase Plan allowed employees through payroll withholding to purchase shares of the Company’s common stock at a 15% 718, Compensation—Stock Compensation 718 , 15% 15% $173,000 2016 $184,000 2015. January 1, 2017, 100% six Stock Options Granted Under the 1999 Incentive Plan T he Company granted 2,041,500 1999 1999 718 718 1999 no December 31 2017, 2016 2015. Presented below is a summary of the stock options activity: Stock Options Activity 201 7 201 6 20 15 Options Average Exercise Price Options Average Exercise Price Options Average Exercise Price Outstanding, Beginning of Year -- -- 12,750 $ 24.93 Exercised -- -- 10,250 24.93 Forfeited or Expired -- -- 2,500 24.93 Outstanding, End of Year -- -- -- Exercisable, End of Year -- -- -- Cash Received for Options Exercised $ 256,000 Intrinsic Value of Options Exercised $ 75,000 Restricted Stock Granted to Directors Under the 1999 2014 1999 April 8, 2017. 718 April 10, 2017, 17,600 April 10, 2017 $37.75 2017 25% April 8 2018 2021 not Presented below is a summary of the status of directors ’ restricted stock awards for the years ended December 31: Directors ’ Restricted Stock Awards 201 7 201 6 20 15 Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Nonvested, Beginning of Year 46,334 $ 29.71 38,217 $ 29.78 38,050 $ 27.47 Granted 17,600 37.75 23,200 28.66 15,200 31.775 Vested 17,134 29.93 15,083 28.28 15,033 25.96 Forfeited -- -- -- Nonvested, End of Year 46,800 32.65 46,334 29.71 38,217 29.78 Compensation Expense Recognized $ 658,000 $ 491,000 $ 417,000 Fair Value of Shares Vested in Year $ 513,000 $ 427,000 $ 390,000 Restricted Stock Granted to Employees Under the 1999 2014 1999 April 8, 2017. 718 No 2014. Presented below is a summary of the status of employees ’ restricted stock awards for the years ended December 31: Employees ’ Restricted Stock Awards 201 7 201 6 201 5 Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Nonvested, Beginning of Year 7,180 $ 29.72 13,581 $ 28.56 45,280 $ 27.46 Granted -- -- -- Vested 4,285 29.94 6,401 27.25 31,699 27.09 Forfeited -- -- -- Nonvested, End of Year 2,895 29.41 7,180 29.72 13,581 28.56 Compensation Expense Recognized $ 70,000 $ 96,000 $ 359,000 Fair Value of Awards Vested $ 128,000 $ 174,000 $ 859,000 Restricted Stock Units Granted to Executive Officers On February 2, 2017, 15,900 2014 $37.65 2017 25% February 6 2018 2021 Presented below is a summary of the status of restricted stock unit awards granted to executive officers for the years ended December 31: Executives ’ Restricted Stock Unit Awards 2017 2016 2015 Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Nonvested, Beginning of Year 41,825 $ 30.23 24,300 $ 31.682 -- Granted 15,900 37.65 22,000 28.915 29,100 $ 31.681 Vested 9,975 30.16 4,475 31.69 4,800 31.675 Forfeited -- -- -- Nonvested, End of Year 47,750 32.71 41,825 30.23 24,300 31.682 Compensation Expense Recognized $ 576,000 $ 446,000 $ 452,000 Fair Value of Awards Vested $ 301,000 $ 142,000 $ 152,000 Restricted Stock Units Granted to Employees In 201 7 2014 not Grant Date Units Granted Grant-Date Fair Value per Award Restricted Stock Units Vesting 100% on April 8, 20 21 April 1 0, 2017 9,995 $ 32.78 Restricted Stock Units Vesting 100% on April 8, 20 21 September 2 5, 2017 1,000 $ 38.29 The grant -date fair value of each restricted stock unit was based on the average of the high and low market price of the Company’s common stock on the date of grant, discounted for the value of the dividend exclusion over the four Presented below is a summary of the status of employees ’ restricted stock unit awards for the years ended December 31: Employee s’ Restricted Stock Unit Awards 201 7 201 6 201 5 Restricted Stock Units Weighted Average Grant-Date Fair Value Restricted Stock Units Weighted Average Grant-Date Fair Value Restricted Stock Units Weighted Average Grant-Date Fair Value Nonvested, Beginning of Year 47,370 $ 25.19 46,600 $ 23.75 45,900 $ 21.82 Granted 10,995 33.28 17,220 24.54 15,650 25.89 Vested 11,550 25.30 12,250 19.03 12,250 19.46 Forfeited 375 26.92 4,200 24.51 2,700 22.84 Nonvested, End of Year 46,440 27.07 47,370 25.19 46,600 23.75 Compensation Expense Recognized $ 331,000 $ 307,000 $ 304,000 Fair Value of Awards Vested $ 292,000 $ 233,000 $ 238,000 Stock Performance Awards granted to Executive Officers Agreements for s tock performance awards have been granted under the 2014 three January 1 3 3 three no On February 2, 2017 2014 2017 2019 2017 59,500 39,667 January 1, 2017 December 31, 2019, 20 January 1, 2017 20 January 1, 2020. 19,833 3 may zero 150% 89,250 $30.25 one $36.27 Under the 201 7 62 718, The table below provides a summary of stock performance awards granted and amounts expensed related to the stock performance awards: Performance Period Maximum Shares Subject To Award Target Shares Expense Recognized in the Year Ended December 31, Earned Shares 201 7 201 6 201 5 2017-2019 89,250 59,500 $ 854,000 7,500 2016-2018 122,250 81,500 580,000 $ 798,000 11,100 2015-2017 126,450 84,300 573,000 535,000 $ 943,000 114,648 2014-2016 159,450 106,300 -- 332,000 (64,000 ) 121,491 2013-2015 90,600 45,300 -- -- (445,000 ) 22,500 Total $ 2,007,000 $ 1,665,000 $ 434,000 277,239 Stock-based payment expense recognized in 2017, 2016 2015 2017 2019, 2016 2018 2015 2017 The earned shares shown in the table above for the 2016 2018 2017 2019 vested shares to be issued in 2018 December 31, 2017 62 The earned shares shown in the table above for the 2015 2017 2018 2 42 3 10.1 6% 3 10.00% 136.00% The earned shares shown in the table above for the 2014 2016 2017 19 43 114.29% July 1, 2015 2016 180 $26.35 $848,000. The earned shares shown in the table above for the 2013 2015 July 1, 2015 2016 180 $26.35 $593,000. In connection with the resignation of an executive officer in May 2014, 8,900 2014 4,900 2013. As of December 31, 2017 $4.0 2.0 |
Note 7 - Retained Earnings and
Note 7 - Retained Earnings and Dividend Restriction | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Retained Earnings Restrictions [Text Block] | 7 . Retained Earnings and Dividend Restriction The Company is a holding company with no ’s shareholders is from dividends paid or distributions made by the Company’s subsidiaries. As a result of certain statutory limitations or regulatory or financing agreements, restrictions could occur on the amount of distributions allowed to be made by the Company’s subsidiaries. Both the Company and OTP credit agreements contain restrictions on the payment of cash dividends upon a default or event of default. An event of default would be considered to have occurred if the Company did not December 31, 201 7 9 Under the Federal Power Act, a public utility may not . What constitutes “funds properly included in a capital account” is undefined in the Federal Power Act or the related regulations; however, the FERC has consistently interpreted the provision to allow dividends to be paid as long as ( 1 2 not 3 no The MPUC indirectly limits the amount of dividends OTP can pay to the Company by requiring an equity-to-total-capitalization ratio between 47.4% 58.0% 2017 September 1, 2017. December 31, 2017 51.4% $471,000,000. $1,178,024,000. |
Note 8 - Commitments and Contin
Note 8 - Commitments and Contingencies of Continuing Operations | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 8 . Commitments and Contingencies of Continuing Operations Construction and Other Purchase Commitments At December 31, 201 7 2019, $41.0 December 31, 2017 December 31, 2021 $6.7 Electric Utility Capacity and Energy Requirements and Coal Purchase and Delivery Contracts OTP has commitments for the purchase of capacity and energy requirements under agreements extending into 204 1. 2019 2040, December 31, 2023. no not Operating Leases OTP has obligations to make future operating lease payments primarily related to land leases and coal rail-car leases. The Company ’s nonelectric companies have obligations to make future operating lease payments primarily related to leases of buildings and manufacturing equipment. Rent expense from continuing operations was $7,110,000, $7,565,000 $6,447,000 2017, 2016 2015, The amounts of the Company ’s construction program and other commitments and commitments under capacity and energy agreements, coal and coal delivery contracts and operating leases for continuing operations as of December 31, 2017, Construction Program Capacity and Energy Coal Purchase Operating Leases (in thousands) and Other Commitments Requirements Commitments OTP Nonelectric Total 2018 $ 29,218 $ 24,424 $ 26,021 $ 1,838 $ 4,175 $ 6,013 2019 15,159 24,925 23,016 1,435 4,183 5,618 2020 1,680 24,844 22,102 1,436 3,362 4,798 2021 1,680 12,988 22,537 1,241 1,434 2,675 202 2 -- 11,827 22,300 761 1,439 2,200 Beyond 202 2 -- 154,310 527,520 8,644 4,326 12,970 Total $ 47,737 $ 253,318 $ 643,496 $ 15,355 $ 18,919 $ 34,274 Contingencies OTP had a $2.7 December 31, 2016 refund obligations that would arise, net of amounts that would be subject to recovery under state jurisdictional TCR riders, based on the likelihood of the FERC reducing the ROE component of the MISO Tariff and ordering MISO to refund amounts charged in excess of the lower rate. In the February June 2017 first 15 2016 $2.7 December 31, 2016 $1.6 December 31, 2017. Together with as many as 200 ’s start on April 1, 2005 May 2, 2015. not January 26, 2018. 2018. not 2018. not Contingencies, by their nature, relate to uncertainties that require the Company ’s management to exercise judgment both in assessing the likelihood a liability has been incurred as well as in estimating the amount of potential loss. The most significant contingencies impacting the Company’s consolidated financial statements are those related to environmental remediation, risks associated with indemnification obligations under divestitures of discontinued operations and litigation matters. Should all of these known items result in liabilities being incurred, the loss could be as high as $1.0 In 2014 2 ) emissions from new, reconstructed and modified fossil fuel-fired power plants (New Source Performance Standards), and proposed CO 2 111 October 23, 2015. February 9, 2016 September 27, 2016 first 2017. 13783, 2 October 16, 2017 Other The Company is a party to litigation and regulatory enforcement matters arising in the normal course of business. The Company regularly analyzes current information and, as necessary, provides accruals for liabilities that are probable of occurring and that can be reasonably estimated. The Company believes the effect on its consolidated results of operations, financial position and cash flows, if any, for the disposition of all matters pending as of December 31, 2017 not |
Note 9 - Short-term and Long-te
Note 9 - Short-term and Long-term Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 9 . Shor t-Term and Long-Term Borrowings Short-Term Debt The following table presents the status of the Company’s lines of credit as of December 31, 2017 December 31, 2016: (in thousands) Line Limit In Use on December 31, 201 7 Restricted due to Outstanding Letters of Credit Available on December 31, 201 7 Available on December 31, 201 6 Otter Tail Corporation Credit Agreement $ 130,000 $ -- $ -- $ 130,000 $ 130,000 OTP Credit Agreement 170,000 112,371 300 57,329 127,067 Total $ 300,000 $ 112,371 $ 300 $ 187,329 $ 257,067 Under the Otter Tail Corporation Credit Agreement (as defined below), the maximum amount of debt outstanding in 201 7 $15,169,000 April 3, 2017 2017 $2,305,000. 2017 2.8% 2.3% 2016. 2017 $112,371,000 December 29, 2017 2017 $69,391,000. 2017 2.4% 1.8% 2016. 2017 $112,371,000 December 29, 2017 2017 $71,696,000. December 31, 2017 2.7%. On October 29, 2012 is an unsecured $130 may $250 October 31, 2017 one October 29, 2021 October 31, 2022. 1.50%, not . The Company is required to pay commitment fees based on the average daily unused amount available to be drawn under the revolving credit facility. The Otter Tail Corporation Credit Agreement contains a number of restrictions on the Company and the businesses of its wholly owned subsidiary, Varistar and its subsidiaries, including restrictions on the Company’s and Varistar’s ability to merge, sell assets, make investments, create or incur liens on assets, guarantee the obligations of certain other parties and engage in transactions with related parties. The Otter Tail Corporation Credit Agreement also contains affirmative covenants and events of default, and financial covenants as described below under the heading “Financial Covenants.” The Otter Tail Corporation Credit Agreement does not $40 On October 29, 2012 $170 may $250 October 31, 2017 one October 29, 2021 October 31, 2022. not $50 1.25%, not . OTP is required to pay commitment fees based on the average daily unused amount available to be drawn under the revolving credit facility. The OTP Credit Agreement contains a number of restrictions on the business of OTP, including restrictions on its ability to merge, sell assets, make investments, create or incur liens on assets, guarantee the obligations of any other party, and engage in transactions with related parties. The OTP Credit Agreement also contains affirmative covenants and events of default, and financial covenants as described below under the heading “Financial Covenants.” The OTP Credit Agreement does not not Long-Term Debt Issuances and Retirements 2018 On November 14, 2017, OTP entered into a Note Purchase Agreement (the 2018 $100 4.07% 2018A February 7, 2048 ( 2018 2018 February 7, 2018. 2018 $100 OTP may not 10% 100% no August 7, 2047 2018 100% 2018 The 2018 2018 as described below under the heading “Financial Covenants.” The 2018 not 2018 not 2018 2018 2018 2018 2018 2018 no 2016 On September 23, 2016 the Company entered into a Note Purchase Agreement (the 2016 $80 3.55% December 15, 2026 ( 2026 2026 December 13, 2016. 2016 2026 2016 2026 $52,330,000 9.000% December 15, 2016, $50 February 2016 The Company may 2026 not 10% 2026 100% no 2016 2026 September 15, 2026 2026 100% 2016 2016 2016 2016 2026 2026 The 2016 2016 ’s and the Material Subsidiaries’ abilities to merge, sell assets, create or incur liens on assets, guarantee the obligations of any other party, engage in transactions with related parties, redeem or pay dividends on the Company’s and the Material Subsidiaries’ shares of capital stock, and make investments. The 2016 2016 not Term Loan Agreement On February 5, 2016 $50 30 LIBOR 90 ’s Minnesota facilities in 2015 September 1, 2015 $35 $50 fourth 2016 $15 2017. February 5, 2018. 2013 On August 14, 2013 2013 with the purchasers named therein pursuant to which OTP agreed to issue to the purchasers, in a private placement transaction, $60 4.68% February 27, 2029 ( $90 5.47% February 27, 2044 ( February 27, 2014. The 2013 may not 10% 100% no 2013 Series A Notes then outstanding on or after November 27, 2028 November 27, 2043, 100% 2013 100% 2013 The 2013 ’s ability to merge, sell assets, create or incur liens on assets, guarantee the obligations of any other party, and engage in transactions with related parties. The 2013 2013 not 2013 not 2013 2013 2013 2013 2013 no 2007 2011 On December 1, 2011, $140 4.63% December 1, 2021 July 29, 2011 ( 2011 $1 22 three $30 6.15% 2022; $42 6.37% 2027; $50 6.47% 2037 2007 2007 August 20, 2007 ( 2007 On August 21, 2017 $33 5.95%, 2007 August 20, 2017. The 2011 2007 may not 10% 100% 2011 2011 2011 2007 100% . The note purchase agreements contain a number of restrictions on OTP, including restrictions on OTP’s ability to merge, sell assets, create or incur liens on assets, guarantee the obligations of any other party, and engage in transactions with related parties. The note purchase agreements also include affirmative covenants and events of default, and certain financial covenants as described below under the heading “Financial Covenants.” Shelf Registration On May 11, 2015 may May 11, 2018. The following tables provide a breakdown of the assignment of the Company ’s consolidated short-term and long-term debt outstanding as of December 31, 2017 December 31, 2016: December 31, 2017 (in thousands) OTP Otter Tail Corporation Otter Tail Corporation Consolidated Short-Term Debt $ 112,371 $ -- $ 112,371 Long-Term Debt: Term Loan, LIBOR plus 0.90%, due February 5, 2018 $ -- $ -- 3.55% Guaranteed Senior Notes, due December 15, 2026 80,000 80,000 Senior Unsecured Notes 4.63%, due December 1, 2021 $ 140,000 140,000 Senior Unsecured Notes 6.15%, Series B, due August 20, 2022 30,000 30,000 Senior Unsecured Notes 6.37%, Series C, due August 20, 2027 42,000 42,000 Senior Unsecured Notes 4.68%, Series A, due February 27, 2029 60,000 60,000 Senior Unsecured Notes 6.47%, Series D, due August 20, 2037 50,000 50,000 Senior Unsecured Notes 5.47%, Series B, due February 27, 2044 90,000 90,000 North Dakota Development Note, 3.95%, due April 1, 2018 27 27 PACE Note, 2.54%, due March 18, 2021 684 684 Total $ 412,000 $ 80,711 $ 492,711 Less: Current Maturities net of Unamortized Debt Issuance Costs -- 186 186 Unamortized Long-Term Debt Issuance Costs 1,684 461 2,145 Total Long-Term Debt net of Unamortized Debt Issuance Costs $ 410,316 $ 80,064 $ 490,380 Total Short-Term and Long-Term Debt (with current maturities) $ 522,687 $ 80,250 $ 602,937 December 31 , 2016 (in thousands) OTP Otter Tail Corporation Otter Tail Corporation Consolidated Short-Term Debt $ 42,883 $ -- $ 42,883 Long-Term Debt: Term Loan, LIBOR plus 0.90%, due February 5, 2018 $ 15,000 $ 15,000 3.55% Guaranteed Senior Notes, due December 15, 2026 80,000 80,000 Senior Unsecured Notes 5.95%, Series A, due August 20, 2017 $ 33,000 33,000 Senior Unsecured Notes 4.63%, due December 1, 2021 140,000 140,000 Senior Unsecured Notes 6.15%, Series B, due August 20, 2022 30,000 30,000 Senior Unsecured Notes 6.37%, Series C, due August 20, 2027 42,000 42,000 Senior Unsecured Notes 4.68%, Series A, due February 27, 2029 60,000 60,000 Senior Unsecured Notes 6.47%, Series D, due August 20, 2037 50,000 50,000 Senior Unsecured Notes 5.47%, Series B, due February 27, 2044 90,000 90,000 North Dakota Development Note, 3.95%, due April 1, 2018 106 106 PACE Note, 2.54%, due March 18, 2021 836 836 Total $ 445,000 $ 95,942 $ 540,942 Less: Current Maturities net of Unamortized Debt Issuance Costs 32,970 231 33,201 Unamortized Long-Term Debt Issuance Costs 1,861 539 2,400 Total Long-Term Debt net of Unamortized Debt Issuance Costs $ 410,169 $ 95,172 $ 505,341 Total Short-Term and Long-Term Debt (with current maturities) $ 486,022 $ 95,403 $ 581,425 The aggregate amounts of maturities on bonds outstanding and other long -term obligations at December 31, 2017 five (in thousands) 2018 2019 2020 2021 2022 Aggregate Amounts of Debt Maturities $ 186 $ 172 $ 185 $ 140,167 $ 30,000 Financial Covenants The Company and OTP were in compliance with the financial covenants in these debt agreements as of December 31, 2017. No The Company ’s and OTP’s borrowing agreements are subject to certain financial covenants. Specifically: ● Under the Otter Tail Corporation Credit Agreement and the 2016 the Company may not 0.60 1.00 1.50 1.00 ● Under the 2016 the Company may not 10% no December 31, 2017. ● Under the OTP Credit Agreement, OTP may not 0.60 1.00. ● Under the 2007 2011 may not to Total Capitalization to be greater than 0.60 1.00 1.50 1.00, may not exceed 20% ● Under the 2013 and the 2018 may not 60% may not 20% no December 31, 2017. |
Note 10 - Pension Plan and Othe
Note 10 - Pension Plan and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 1 0 . Pension Plan and Other Postretirement Benefits Pension Plan The Company's noncontributory funded pension plan covers substantially all corporate employees and OTP nonunion employees hired prior to September 1, 2006, November 1, 2013, January 1, 2009 100% five 65, 62. no may The pension plan has a trustee who is responsible for pension payments to retirees and a separate pension fund manager responsible for managing the plan's assets. An independent actuary assists the Company in performing the necessary actuarial valuations for the plan. The plan assets consist of common stock and bonds of public companies, U.S. government securities, cash and cash equivalents and alternative investments. None or debt securities of the Company. The following table lists c omponents of net periodic pension benefit cost for the year ended December 31: (in thousands) 201 7 201 6 201 5 Service Cost –Benefit Earned During the Period $ 5,629 $ 5,518 $ 6,059 Interest Cost on Projected Benefit Obligation 14,139 14,195 13,344 Expected Return on Assets (19,229 ) (19,454 ) (18,383 ) Amortization of Prior Service Cost: From Regulatory Asset 120 189 188 From Other Comprehensive Income 1 3 5 5 Amortization of Net Actuarial Loss: From Regulatory Asset 5,090 5,153 6,676 From Other Comprehensive Income 1 125 127 171 Net Periodic Pension Cost 2 $ 5,877 $ 5,733 $ 8,060 1 Corporate cost included in Other Nonelectric Expenses. 2 Allocation of Costs : 2017 2016 2015 Costs included in OTP Capital Expenditures $ 1,142 $ 1,048 $ 1,453 Costs included in E lectric Operation and Maintenance Expenses 4,594 4,547 6,406 Costs included in Other Nonelectric Expenses 141 138 201 Weighted average assumptions used to determine net periodic pension cost for the year ended December 31: 201 7 201 6 201 5 Discount Rate 4.60 % 4.76 % 4.35 % Long-Term Rate of Return on Plan Assets 7.50 % 7.75 % 7.75 % Rate of Increase in Future Compensation Level 3.00 % 3.13 % 3.13 % The following table presents amounts recognized in the consolidated balance sheets as of December 31: (in thousands) 201 7 201 6 Regulatory Assets: Unrecognized Prior Service Cost $ 21 $ 141 Unrecognized Actuarial Loss 99,360 98,039 Total Regulatory Assets $ 99,381 $ 98,180 Accumulated Other Comprehensive Loss: Unrecognized Prior Service Cost $ 9 $ 12 Unrecognized Actuarial Loss 439 406 Total Accumulated Other Comprehensive Loss $ 448 $ 418 Noncurrent Liability $ 67,399 $ 60,292 Funded status as of December 31: (in thousands) 201 7 201 6 Accumulated Benefit Obligation $ (316,095 ) $ (281,414 ) Projected Benefit Obligation $ (352,718 ) $ (314,637 ) Fair Value of Plan Assets 285,319 254,345 Funded Status $ (67,399 ) $ (60,292 ) The following tables provide a reconciliation of the changes in the fair value of plan assets and the plan ’s benefit obligations over the two December 31, 2017: (in thousands) 201 7 201 6 Reconciliation of Fair Value of Plan Assets: Fair Value of Plan Assets at January 1 $ 254,346 $ 233,639 Actual Return on Plan Assets 44,181 23,794 Discretionary Company Contributions -- 10,000 Benefit Payments (13,208 ) (13,088 ) Fair Value of Plan Assets at December 31 $ 285,319 $ 254,345 Estimated Asset Return 17.8 % 10.1 % Reconciliation of Projected Benefit Obligation: Projected Benefit Obligation at January 1 $ 314,637 $ 302,740 Service Cost 5,629 5,518 Interest Cost 14,139 14,195 Benefit Payments (13,208 ) (13,088 ) Actuarial Loss 31,521 5,272 Projected Benefit Obligation at December 31 $ 352,718 $ 314,637 Weighted average assumptions used to determine benefit obligations at December 31: 201 7 201 6 Discount Rate 3.90 % 4.60 % Rate of Increase in Future Compensation Level : All participants – prior to 2017 3.00 % Participants to Age 39 4.50 % Participants Age 40 to Age 49 3.50 % Participants Age 50 and Older 2.75 % The assumed rate of return on pension fund assets used for the determination of 2018 7.50%. . Market-related value of plan assets — The Company’s expected return on plan assets is determined based on the expected long-term rate of return on plan assets and the market-related value of plan assets. The Company bases actuarial determination of pension plan expense or income on a market-related valuation of assets, which reduces year-to-year volatility. This market-related valuation calculation recognizes investment gains or losses over a five five Measurement Dates: 201 7 201 6 Net Periodic Pension Cost January 1, 2017 January 1, 2016 End of Year Benefit Obligations January 1, 2017 projected to December 31, 2017 January 1, 2016 projected to December 31, 2016 Market Value of Assets December 31, 2017 December 31, 2016 The estimated amounts of unrecognized net actuarial losses and prior service costs to be amortized from regulatory assets and accumulated other comprehensive loss into the net periodic pension cost in 201 8 (in thousands) 201 8 Decrease in Regulatory Assets: Amortization of Unrecognized Prior Service Cost $ 16 Amortization of Unrecognized Actuarial Loss 7,142 Decrease in Accumulated Other Comprehensive Loss: Amortization of Unrecognized Prior Service Cost -- Amortization of Unrecognized Actuarial Loss 176 Total Estimated Amortization $ 7,334 Cash flows — The Company had no December 31, 2017 $20 February 2018. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid out from plan assets: (in thousands) 2018 2019 2020 2021 2022 Years 2023-2027 $ 14,384 $ 15,022 $ 15,666 $ 16,336 $ 17,041 $ 93,882 The following objectives guide the investment strategy of the Company ’s pension plan (the Plan): ● The assets of the Plan will be invested in accordance with all applicable laws in a manner consistent with fiduciary standards including Employee Retirement Income Security Act standards (if applicable). Specifically: o The safeguards and diversity that a prudent investor would adhere to must be present in the investment program. o All transactions undertaken on behalf of the Plan must be in the best interest of plan participants and their beneficiaries. ● The primary objective of the Plan is to provide a source of retirement income for its participants and beneficiaries. ● The near-term primary financial objective of the Plan is to improve the funded status of the Plan. ● A secondary financial objective is to minimize pension funding and expense volatility where possible. The asset allocation strategy developed by the Company’s Retirement Plans Administration Committee (the Committee) is based on the current needs of the Plan and the objectives listed above. An asset/liability review is conducted annually or as often as necessary to assess the impact of various asset allocations on funded status and other financial variables. The current needs of the Plan, the overall investment objectives above, the investment preferences and risk tolerance of the Committee and the desired degree of diversification suggest the need for an investment allocation including multiple asset classes. The asset allocation in the table below contains guideline percentages, at market value, of the total Plan invested in various asset classes. The Permitted Range is a guide and will at times not T he policy of the Plan is to invest assets in accordance with the allocations shown below: Permitted Range Asset Class / PBO Funded Status <85% PBO >=85% PBO >=90% PBO >=95% PBO >=100% PBO Equity 39% - 59% 34% - 54% 24% - 44% 14% - 34% 0% - 20% Investment Grade Fixed Income 22% - 42% 30% - 50% 40% - 60% 53% - 73% 70% - 100% Below Investment Grade Fixed Income* 0% - 15% 0% - 15% 0% - 15% 0% - 10% 0% - 10% Other** 5% - 20% 5% - 20% 5% - 20% 0% - 15% 0% - 15% * Includes (but not ** Other category may may The Company ’s pension plan asset allocations at December 31, 2017 2016, Asset Allocation 201 7 201 6 Large Capitalization Equity Securities 23.5 % 21.4 % International Equity Securities 18.1 % 22.0 % Small and Mid-Capitalization Equity Securities 8.7 % 9.0 % Emerging Markets Equity Fund 5.5 % 0.0 % SEI Dynamic Asset Allocation Fund 5.0 % 5.4 % Equity Securities 60.8 % 57.8 % Fixed-Income Securities and Cash 35.2 % 34.3 % Other – SEI Energy Debt Collective Fund 4.0 % 4.1 % Other – SEI Special Situation Collective Investment Trust 0.0 % 3.8 % 100.0 % 100.0 % The following table presents the Company ’s pension fund assets measured at fair value and included in Level 1 December 31: (in thousands) 201 7 201 6 Assets in Level 1 of the Fair Value Hierarchy $ 273,999 $ 234,303 SEI Energy Debt Collective Fund at NAV 11,320 10,441 SEI Special Situation Collective Investment Trust Fund at NAV -- 9,601 Total Assets $ 285,319 $ 254,345 Fair Value Measurements of Pension Fund Assets ASC 715, Compensation – Retirement Benefits, three 820 10 35. The following table presents, the Company ’s pension fund assets measured at fair value and included in Level 1 December 31: (in thousands) 201 7 201 6 Large Capitalization Equity Securities Mutual Fund $ 66,946 $ 54,483 International Equity Securities Mutual Funds 51,636 55,916 Small and Mid-Capitalization Equity Securities Mutual Fund 24,848 23,011 Emerging Markets Equity Fund 15,824 -- SEI Dynamic Asset Allocation Mutual Fund 14,371 13,622 Fixed Income Securities Mutual Funds 100,373 87,268 Cash Management – Money Market Fund 1 3 Total Assets $ 273,999 $ 234,303 The investments held by the SEI Energy Debt Collective Fund on December 31, 2017 2016 95 three $10.0 July 2015. third may 30 Executive Survivor and Supplemental Retirement Plan (ESSRP) The ESSRP is an unfunded, nonqualified benefit plan for executive officers and certain key management employees. The ESSRP provides defined benefit payments to these employees on their retirements for life or to their beneficiaries on their deaths for a 15 no The following table lists c omponents of net periodic pension benefit cost for the year ended December 31: (in thousands) 201 7 201 6 20 15 Service Cost –Benefit Earned During the Period $ 290 $ 252 $ 189 Interest Cost on Projected Benefit Obligation 1,686 1,667 1,523 Amortization of Prior Service Cost: From Regulatory Asset 16 16 16 From Other Comprehensive Income 1 38 38 38 Amortization of Net Actuarial Loss: From Regulatory Asset 285 293 334 From Other Comprehensive Income 2 440 446 602 Net Periodic Pension Cost 3 $ 2,755 $ 2,712 $ 2,702 1 Amortization of Prior Service Costs from Other Comprehensive Income Charged to: Electric Operation and Maintenance Expenses $ 15 $ 15 $ 15 Other Nonelectric Expenses 23 23 23 2 Amortization of Net Actuarial Loss from Other Comprehensive Income Charged to: Electric Operation and Maintenance Expenses $ 265 $ 272 $ 310 Other Nonelectric Expenses 175 174 292 3 ESSRP costs are not capitalized. Weighted average assumptions used to determine net periodic pension cost for the year ended December 31: 201 7 201 6 201 5 Discount Rate 4.60 % 4.76 % 4.35 % Rate of Increase in Future Compensation Level 3.00 % 3.13 % 3.15 % The following table presents amounts recognized in the consolidated balance sheets as of December 31: (in thousands) 201 7 201 6 Regulatory Assets: Unrecognized Prior Service Cost $ 40 $ 58 Unrecognized Actuarial Loss 3,229 2,890 Total Regulatory Assets $ 3,269 $ 2,948 Projected Benefit Obligation Liability – Net Amount Recognized $ (42,308 ) $ (37,335 ) Accumulated Other Comprehensive Loss: Unrecognized Prior Service Cost $ 98 $ 134 Unrecognized Actuarial Loss 9,024 5,915 Total Accumulated Other Comprehensive Loss $ 9,122 $ 6,049 The following tables provide a reconciliation of the changes in the fair value of plan assets and the plan ’s projected benefit obligations over the two December 31, 2017 December 31 (in thousands) 201 7 201 6 Reconciliation of Fair Value of Plan Assets: Fair Value of Plan Assets at January 1 $ -- $ -- Actual Return on Plan Assets -- -- Employer Contributions 1,175 1,188 Benefit Payments (1,175 ) (1,188 ) Fair Value of Plan Assets at December 31 $ -- $ -- Reconciliation of Projected Benefit Obligation: Projected Benefit Obligation at January 1 $ 37,335 $ 35,811 Service Cost 290 252 Interest Cost 1,686 1,667 Benefit Payments (1,175 ) (1,188 ) Plan Amendments -- -- Actuarial Loss 4,172 793 Projected Benefit Obligation at December 31 $ 42,308 $ 37,335 Weighted average assumptions used to determine benefit obligations at December 31: 201 7 2016 Discount Rate 3.85 % 4.60 % Rate of Increase in Future Compensation Level : 2.92 % 3.00 % The estimated amounts of unrecognized net actuarial losses and prior service costs to be amortized from regulatory assets and accumulated other comprehensive loss into the net periodic pension cost for the ESSRP in 201 8 (in thousands) 201 8 Decrease in Regulatory Assets: Amortization of Unrecognized Prior Service Cost $ 16 Amortization of Unrecognized Actuarial Loss 267 Decrease in Accumulated Other Comprehensive Loss: Amortization of Unrecognized Prior Service Cost 38 Amortization of Unrecognized Actuarial Loss 661 Total Estimated Amortization $ 982 Cash flows — The ESSRP is unfunded and has no Years (in thousands) 2018 2019 2020 2021 2022 2023-2027 $ 1,568 $ 1,612 $ 1,576 $ 1,670 $ 2,255 $ 13,775 Other Postretirement Benefits The Company provides a portion of health insurance and life insurance benefits for retired OTP and corporate employees. Substantially all of the Company's electric utility and corporate employees may 55 10 no The following table lists components of net periodic postretirement benefit cost for the year ended December 31: (in thousands) 201 7 201 6 201 5 Service Cost –Benefit Earned During the Period $ 1,425 $ 1,301 $ 1,297 Interest Cost on Projected Benefit Obligation 2,712 2,503 2,097 Amortization of Prior Service Cost From Regulatory Asset (4 ) 134 205 From Other Comprehensive Income 1 4 3 5 Amortization of Net Actuarial Loss From Regulatory Asset 936 379 -- From Other Comprehensive Income 1 19 9 -- Net Periodic Postretirement Benefit Cost 2 $ 5,092 $ 4,329 $ 3,604 Effect of Medicare Part D Subsidy $ (561 ) $ (923 ) $ (1,487 ) 1 Corporate cost included in Other Nonelectric Expenses 2 Allocation of Cost : 2017 2016 2015 Cost included in OTP Capital Expenditures $ 989 $ 792 $ 650 Cost included in E lectric Operation and Maintenance Expenses 3,981 3,433 2,864 Cost included in Other Nonelectric Expenses 122 104 90 Weighted average assumptions used to determine net periodic postretirement benefit cost for the year ended December 31: 201 7 201 6 201 5 Discount Rate 4.46 % 4.57 % 4.20 % The following table presents amounts recognized in the consolidated balance sheets as of December 31: (in thousands) 201 7 201 6 Regulatory Asset: Unrecognized Prior Service Cost $ -- $ (4 ) Unrecognized Net Actuarial Loss 18,927 13,586 Net Regulatory Asset $ 18,927 $ 13,582 Projected Benefit Obligation Liability – Net Amount Recognized $ (69,774 ) $ (62,571 ) Accumulated Other Comprehensive (Income) Loss: Unrecognized Prior Service Cost $ -- $ 4 Unrecognized Net Actuarial Gain (111 ) (171 ) Accumulated Other Comprehensive Income $ (111 ) $ (167 ) The following tables provide a reconciliation of the changes in the fair value of plan assets and the plan ’s projected benefit obligations and accrued postretirement benefit cost over the two December 31, 2017: (in thousands) 201 7 201 6 Reconciliation of Fair Value of Plan Assets: Fair Value of Plan Assets at January 1 $ -- $ -- Actual Return on Plan Assets -- -- Company Contributions 3,290 2,825 Benefit Payments (Net of Medicare Part D Subsidy) (6,534 ) (5,908 ) Participant Premium Payments 3,244 3,083 Fair Value of Plan Assets at December 31 $ -- $ -- Reconciliation of Projected Benefit Obligation: Projected Benefit Obligation at January 1 $ 62,571 $ 48,730 Service Cost (Net of Medicare Part D Subsidy) 1,425 1,301 Interest Cost (Net of Medicare Part D Subsidy) 2,712 2,503 Benefit Payments (Net of Medicare Part D Subsidy) (6,534 ) (5,908 ) Participant Premium Payments 3,244 3,083 Actuarial Loss 6,356 12,862 Projected Benefit Obligation at December 31 $ 69,774 $ 62,571 Reconciliation of Accrued Postretirement Cost: Accrued Postretirement Cost at January 1 $ (49,156 ) $ (47,652 ) Expense (5,092 ) (4,329 ) Net Company Contribution 3,290 2,825 Accrued Postretirement Cost at December 31 $ (50,958 ) $ (49,156 ) Weighted average assumptions used to determine benefit obligations at December 31: 201 7 201 6 Discount Rate 3.81 % 4.46 % Assumed healthcare cost-trend rates as of December 31: 201 7 201 6 Healthcare Cost-Trend Rate Assumed for Next Year Pre-65 5.85 % 6.01 % Healthcare Cost-Trend Rate Assumed for Next Year Post-65 6.03 % 6.23 % Rate to Which the Cost-Trend Rate is Assumed to Decline 4.50 % 4.50 % Year the Rate Reaches the Ultimate Trend Rate 2038 2038 Assumed healthcare cost-trend rates have a significant effect on the amounts reported for healthcare plans. A one 201 7 (in thousands) 1 Point Increase 1 Point Decrease Effect on the Postretirement Benefit Obligation $ 9,301 $ (7,692 ) Effect on Total of Service and Interest Cost $ 731 $ (601 ) Effect on Expense $ 1,589 $ (1,500 ) Measurement Dates: 201 7 201 6 Net Periodic Postretirement Benefit Cost January 1, 201 7 January 1, 201 6 End of Year Benefit Obligations January 1, 201 7 projected to December 31, 2017 January 1, 201 6 projected to December 31, 2016 The estimated net amounts of unrecognized prior service cost to be amortized from regulatory assets and accumulated other comprehensive loss into the net periodic postretirement benefit cost in 2018 (in thousands) 201 8 Decrease in Regulatory Assets: Amortization of Unrecognized Actuarial Loss $ 1,649 Decrease in Accumulated Other Comprehensive Loss: Amortization of Unrecognized Actuarial Loss 41 Total Estimated Amortization $ 1,690 Cash flows — The Company expects to contribute $4.0 2018. $0.4 2018. Years (in thousands) 2018 2019 2020 2021 2022 2023-2027 $ 3,986 $ 4,107 $ 4,133 $ 4,218 $ 4,327 $ 21,089 401K The Company sponsors a 401K included in continuing operations totaled $4,211,000 2017, $3,877,000 2016 $3,602,000 2015. Employee Stock Ownership Plan The Company has a stock ownership plan for the benefit of all its electric utility employees. Contributions made by the Com pany were $612,000 2017, $647,000 2016 $674,000 2015. |
Note 11 - Fair Value of Financi
Note 11 - Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 1 1 . Fair Value of Financial Instruments The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash Equivalents —The carrying amount approximates fair value because of the short-term maturity of those instruments. Short-Term Debt —The carrying amount approximates fair value because the debt obligations are short-term and the balances outstanding as of December 31, 2017 December 31, 2016 LIBOR 1.25% Long -Term Debt including Current Maturities —The fair value of the Company's and OTP’s long-term debt is estimated based on the current market indications of rates available to the Company for the issuance of debt. The Company’s long-term debt subject to variable interest rates on December 31, 2016 2 820. December 31, 201 7 December 31, 201 6 (in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Cash and Cash Equivalents $ 16,216 $ 16,216 $ -- $ -- Short -Term Debt (112,371 ) (112,371 ) (42,883 ) (42,883 ) Long -Term Debt including Current Maturities (490,566 ) (543,691 ) (538,542 ) (583,835 ) |
Note 12 - Property, Plant and E
Note 12 - Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 1 2 . Property, Plant and Equipment (in thousands) December 31, 201 7 December 31, 201 6 Electric Plant in Service Production $ 897,732 $ 891,330 Transmission 500,352 410,679 Distribution 482,867 466,285 General 100,067 92,063 Electric Plant in Service 1,981,018 1,860,357 Construction Work in Progress 132,556 149,997 Total Gross Electric Plant 2,113,574 2,010,354 Less Accumulated Depreciation and Amortization 662,431 622,657 Net Electric Plant $ 1,451,143 $ 1,387,697 Nonelectric Operations Plant Equipment $ 160,263 $ 155,809 Buildings and Leasehold Improvements 52,280 51,323 Land 4,394 4,694 Nonelectric Operations Plant 216,937 211,826 Construction Work in Progress 8,511 3,264 Total Gross Nonelectric Plant 225,448 215,090 Less Accumulated Depreciation and Amortization 136,988 125,562 Net Nonelectric Operations Plant $ 88,460 $ 89,528 Net Plant $ 1,539,603 $ 1,477,225 The estimated service lives for rate-regulated properties is 5 82 3 40 Service Life Range (years) Low High Electric Fixed Assets: Production Plant 9 82 Transmission Plant 42 70 Distribution Plant 5 68 General Plant 5 50 Nonelectric Fixed Assets: Equipment 3 12 Buildings and Leasehold Improvements 7 40 |
Note 13 - Income Taxes
Note 13 - Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 1 3 . Income Taxes The total income tax expense differs from the amount computed by applying the federal income tax rate ( 35% 2017, 2016 2015 (in thousands) 2017 2016 2015 Tax Computed at Federal Statutory Rate – Continuing Operations $ 34,707 $ 28,741 $ 28,081 Increases (Decreases) in Tax from: Federal P roduction Tax Credits (PTCs) (7,527 ) (7,175 ) (6,962 ) State Income Taxes Net of Federal Income Tax Expense 4,341 2,848 4,945 Section 199 Domestic Production Activities Deduction (1,471 ) (482 ) -- North Dakota Wind Tax Credit Amortization – Net of Federal Taxes (850 ) (850 ) (850 ) Corporate-owned Life Insurance (845 ) (680 ) (167 ) Excess Tax deduction - Equity Method Stock Awards (751 ) -- -- Employee Stock Ownership Plan Dividend Deduction (509 ) (537 ) (560 ) Allowance for Funds Used During Construction – Equity (322 ) (280 ) (426 ) Investment Tax Credit Amortization (164 ) (350 ) (571 ) Differences Reversing in Excess of Federal Rates 551 77 (1,143 ) Permanent and Other Differences (1,873 ) (1,231 ) (705 ) Effect of TCJA Tax Rate Reduction on Value of Net Deferred Tax Assets 1,756 -- -- Total Income Tax Expense – Continuing Operations $ 27,043 $ 20,081 $ 21,642 Income Tax Expense – Discontinued Operations – U.S. 213 138 2,991 Income Tax Expense – Continuing and Discontinued Operations $ 27,256 $ 20,219 $ 24,633 Overall Effective Federal, State and Foreign Income Tax Rate 27.3 % 24.5 % 29.3 % Income Tax Expense From Continuing Operations Includes the Following: Current Federal Income Taxes $ 4,581 $ 1,070 $ 211 Current State Income Taxes 1,154 1,211 1 Deferred Federal Income Taxes 25,320 23,586 23,050 Deferred State Income Taxes 4,529 2,589 6,763 Federal PTCs (7,527 ) (7,175 ) (6,962 ) North Dakota Wind Tax Credit Amortization – Net of Federal Taxes (850 ) (850 ) (850 ) Investment Tax Credit Amortization (164 ) (350 ) (571 ) Total $ 27,043 $ 20,081 $ 21,642 Total Income Before Income Taxes – Continuing and Discontinued Operations $ 99,695 $ 82,540 $ 83,978 The Company's deferred tax assets and liabilities were composed of the following on December 31: (in thousands) 2017 2016 Deferred Tax Assets Federal PTCs $ 40,614 $ 43,433 Regulatory Tax Liability 39,465 2,422 North Dakota Wind Tax Credits 32,962 32,962 Benefit Liabilities 32,328 44,381 Retirement Benefits Liabilities 31,894 38,390 Cost of Removal 21,800 31,636 Differences Related to Property 6,499 9,876 Net Operating Loss Carryforward 3,203 3,865 Vacation Accrual 1,844 2,725 Investment Tax Credits 515 818 Other 668 5,371 Total Deferred Tax Assets $ 211,792 $ 215,879 Deferred Tax Liabilities Differences Related to Property $ (257,906 ) $ (371,761 ) Retirement Benefits Regulatory Asset (31,894 ) (38,390 ) Excess Tax over Book Pension (14,077 ) (15,509 ) North Dakota Wind Tax Credits (4,112 ) (3,654 ) Impact of State Net Operating Losses on Federal Taxes (673 ) (1,352 ) Other (3,631 ) (11,804 ) Total Deferred Tax Liabilities $ (312,293 ) $ (442,470 ) Deferred Income Taxes $ (100,501 ) $ (226,591 ) Federal PTCs are earned as wind energy is generated based on a per kwh rate prescribed in applicable federal statutes. OTP’s kwh generation from its wind turbines eligible for PTCs increased 4.4% 2017 2016. 25 Schedule of expiration of tax credits and tax net operating losses available as of December 31, 2017: (in thousands) Amount 2022-2031 2032-2037 2038-2043 United States Federal Tax Credits $ 43,238 $ -- $ 43,238 $ -- State Net Operating Losses 3,203 2,339 864 -- State Tax Credits 33,568 376 231 32,961 The following table summarizes the activity related to the Company’s unrecognized tax benefits: (in thousands) 2017 2016 2015 Balance on January 1 $ 891 $ 468 $ 222 Increases Related to Tax Positions for Prior Years 28 406 236 Decreases Related to Tax Positions for Prior Years (378 ) -- -- Increases Related to Tax Positions for Current Year 143 114 10 Uncertain Positions Resolved During Year -- (97 ) -- Balance on December 31 $ 684 $ 891 $ 468 The balance of unrecognized tax benefits as of December 31, 201 7 December 31, 2017 not 12 no December 31, 2017. The Company and its subsidiaries file a consolidated U.S. federal income tax return and various state income tax returns. As of December 31, 201 7, no 2014 2013 TCJA In December 2017 TCJA was enacted. The TCJA includes a number of changes to existing U.S. tax laws that impact the Company, most notably a reduction of the federal corporate income tax rate from 35% 21% December 31, 2017. The Company measures deferred tax assets and liabilities using enacted tax rates that will apply in the years in which the temporary differences are expected to be recovered or paid. Accordingly, the Company’s deferred tax assets and liabilities were remeasured to reflect the reduction in the U.S. corporate income tax rate from 35% 21% one $1.8 2017. (in thousands) Deferred Tax Liability Deferred Tax Regulatory Liability Balance on January 1 , 2017 $ 226,591 $ 818 Change due to 2017 Accruals and Amortizations 20,012 376 TCJA Deferred Tax Valuation Adjustment (109,072 ) 109,072 Tax Effect on TCJA Deferred Tax Valuation Adjustment (38,786 ) 38,786 TCJA Adjustment to Income Tax Expense 1,756 -- Balance on December 31 , 2017 $ 100,501 $ 149,052 The Company recognized the income tax effects of the TCJA in its 2017 No. 118, 740, Income Taxes may may may |
Note 14 - Asset Retirement Obli
Note 14 - Asset Retirement Obligations (AROs) | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Asset Retirement Obligation Disclosure [Text Block] | 1 4 . Asset Retirement Obligations (AROs) The Company ’s AROs are related to OTP’s coal-fired generation plants and its 92 no OTP recorded no 201 7. Reconciliations of carrying amounts of the present value of the Company ’s legal AROs, capitalized asset retirement costs and related accumulated depreciation and a summary of settlement activity for the years ended December 31, 2017 2016 (in thousands) 201 7 201 6 Asset Retirement Obligations Beginning Balance $ 8,341 $ 8,084 New Obligations Recognized -- -- Adjustments Due to Revisions in Cash Flow Estimates -- (103 ) Accrued Accretion 378 360 Settlements -- -- Ending Balance $ 8,719 $ 8,341 Asset Retirement Costs Capitalized Beginning Balance $ 2,983 $ 3,086 New Obligations Recognized -- -- Adjustments Due to Revisions in Cash Flow Estimates -- (103 ) Settlements -- -- Ending Balance $ 2,983 $ 2,983 Accumulated Depreciation – Asset Retirement Costs Capitalized Beginning Balance $ 795 $ 673 New Obligations Recognized -- -- Adjustments Due to Revisions in Cash Flow Estimates -- -- Depreciation Expense 120 122 Settlements -- -- Ending Balance $ 915 $ 795 Settlements None None Original Capitalized Asset Retirement Cost – Retired $ -- $ -- Accumulated Depreciation -- -- Asset Retirement Obligation $ -- $ -- Settlement Cost -- -- Gain on Settlement – Deferred Under Regulatory Accounting $ -- $ -- |
Note 15 - Discontinued Operatio
Note 15 - Discontinued Operations | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 1 5 . Discontinued Operations On April 30, 2015 $12.0 $6.3 October 2015, $1.0 February 28, 2015 $22.3 $0.6 October 2015, $0.8 . were formerly included in the Company’s Construction segment. On February 8, 2013 the Company’s Manufacturing segment. On November 30, 2012 The Company ’s Wind Energy and Construction segments were eliminated as a result of the sales of its wind tower manufacturing business, Foley and AEV, Inc. The financial position, results of operations and cash flows of Foley, AEV, Inc., the Company’s wind tower manufacturing business and its dock and boatlift company are reported as discontinued operations in the Company’s consolidated financial statements. Following are summary presentations of the results of discontinued operations for the years ended December 31, 201 7, 2016 2015: For the Year Ended December 31, 2017 (in thousands) Foley AEV, Inc. Wind Tower Business Dock and Boatlift Business Intercompany Transactions Adjustment Total Operating Expenses $ 233 $ -- $ (460 ) $ (306 ) $ -- $ (533 ) Income Tax (Benefit) Expense (93 ) -- 184 122 -- 213 Net (Loss) Income $ (140 ) $ -- $ 276 $ 184 $ -- $ 320 For the Year Ended December 31, 2016 (in thousands) Foley AEV, Inc. Wind Tower Business Dock and Boatlift Business Intercompany Transactions Adjustment Total Operating Expenses $ 250 $ -- $ (757 ) $ 85 $ -- $ (422 ) Income Tax (Benefit) Expense (136 ) 5 303 (34 ) -- 138 Net (Loss) Income $ (114 ) $ (5 ) $ 454 $ (51 ) $ -- $ 284 For the Year Ended December 31, 2015 (in thousands) Foley AEV, Inc. Wind Tower Business Dock and Boatlift Business Intercompany Transactions Adjustment Total Operating Revenues $ 21,625 $ 2,998 $ -- $ -- $ -- $ 24,623 Operating Expenses 26,839 4,532 (462 ) 966 (240 ) 31,635 Asset Impairment Charge 1,000 -- -- -- -- 1,000 Interest Expense 177 27 -- -- (204 ) -- Other Income (Deductions) (42 ) 2 111 -- (2 ) 69 Income Tax (Benefit) Expense (921 ) (638 ) 229 (386 ) 177 (1,539 ) Net (Loss) Income from Operations (5,512 ) (921 ) 344 (580 ) 265 (6,404 ) (Loss) Gain on Disposition Before Taxes (204 ) 11,894 -- -- -- 11,690 Income Tax (Benefit) Expense on Disposition (227 ) 4,757 -- -- -- 4,530 Net Gain on Disposition 23 7,137 -- -- -- 7,160 Net (Loss) Income $ (5,489 ) $ 6,216 $ 344 $ (580 ) $ 265 $ 756 Foley and AEV, Inc. entered into fixed-price construction contracts. Revenues under these contracts were recognized on a percentage-of-completion basis. The method used to determine the progress of completion was based on the ratio of costs incurred to total estimated costs on construction projects. An increase in estimated costs on one $4.4 2015. first 2015, $1.0 based on adjustments to the carrying value of Foley. F ollowing are summary presentations of the major components of assets and liabilities of discontinued operations as of December 31, 2017 December 31, 2016: December 31, 2017 (in thousands) Wind Tower Business Dock and Boatlift Business Total Current Liabilities $ 130 $ 362 $ 492 Liabilities of Discontinued Operations $ 130 $ 362 $ 492 December 31, 201 6 (in thousands) Wind Tower Business Dock and Boatlift Business Total Current Liabilities $ 589 $ 774 $ 1,363 Liabilities of Discontinued Operations $ 589 $ 774 $ 1,363 Included in current liabilities of discontinued operations are warranty reserves. Details regarding the warranty reserves follow: (in thousands) 201 7 201 6 Warranty Reserve Balance, January 1 $ 1,369 $ 2,103 Additional Provision for Warranties Made During the Year -- -- Settlements Made During the Year (112 ) (24 ) Decrease in Warranty Estimates for Prior Years (760 ) (710 ) Warranty Reserve Balance, December 31 $ 497 $ 1,369 The warranty reserve balances as of December 31, 201 7 one fifteen Expenses associated with remediation activities of these companies could be substantial. For wind towers, the potential exists for multiple claims based on one ’s consolidated net income and financial condition. |
Note 16 - Subsequent Events
Note 16 - Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 1 6 . Subsequent Events Stock Incentive Awards On February 5, 2018 2014 Award Shares/Units Granted Weighted Average Grant- Date Fair Value per Award Vesting Restricted Stock Units Granted 15,200 $ 41.325 25% per year through February 6, 2022 Stock Performance Awards Granted 54,000 $ 35.73 December 31, 20 20 The vesting of restricted stock units is accelerated in the event of a change in control, disability, death or retirement, subject to proration in certain cases. All restricted stock units granted to executive officers are eligible to receive dividend equivalent payments on all unvested awards over the awards respective vesting periods, subject to forfeiture under the terms of the restricted stock unit award agreements. The grant-date fair value of each restricted stock unit was the average of the high and low market price per share on the date of grant. Under the performance share awards the aggregate award for performance at target is 54,000 27,000 3 27,000 January 1, 2018 December 31, 2020, 20 January 1, 2018 20 January 1, 2021. may zero 150% 81,000 no 718, Under the 201 8 The end of the period over which compensation expense is recognized for the above share-based awards for the individual grantees is the shorter of the indicated vesting period for the respective awards or the date the grantee becomes eligible for retirement as defined in their award agreement. |
Schedule 1 - Condensed Financia
Schedule 1 - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2017 | |
Notes to Financial Statements | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | SCHEDULE 1 - Condensed financial information of registrant Otter Tail Corporation (PARENT COMPANY) Condensed Balance Sheets, December 31 (in thousands) 2017 2016 Assets Current Assets Cash and Cash Equivalents $ 16,371 $ 6,218 Accounts Receivable -- 12 Accounts Receivable from Subsidiaries 2,098 1,706 Interest Receivable from Subsidiaries 117 141 Income Taxes Receivable -- 662 Notes Receivable from Subsidiaries 1,752 1,671 Other 1,130 936 Total Current Assets 21,468 11,346 Investments in Subsidiaries 724,613 692,723 Notes Receivable from Subsidiaries 79,611 79,843 Deferred Income Taxes 27,923 35,387 Other Assets 31,559 29,079 Total Assets $ 885,174 $ 848,378 Liabilities and Equity Current Liabilities Short-Term Debt $ -- $ -- Current Maturities of Long-Term Debt 186 231 Accounts Payable to Subsidiaries 6 5,958 Notes Payable to Subsidiaries 61,908 38,519 Other 7,799 5,838 Total Current Liabilities 69,899 50,546 Other Noncurrent Liabilities 38,319 32,556 Commitments and Contingencies Capitalization Long-Term Debt, Net of Current Maturities 80,064 95,172 Common Shareholder Equity 696,892 670,104 Total Capitalization 776,956 765,276 Total Liabilities and Equity $ 885,174 $ 848,378 See accompanying notes to condensed financial statements. Otter Tail Corporation (PARENT COMPANY) Condensed Statements of Income--For the Years Ended December 31 (in thousands) 2017 2016 2015 Operating Loss Revenue $ -- $ -- $ -- Operating Expenses 8,353 9,689 10,188 Operating Loss (8,353 ) (9,689 ) (10,188 ) Other Income (Expense) Equity Income in Earnings of Subsidiaries 82,715 67,047 66,067 Interest Charges (4,270 ) (6,817 ) (6,786 ) Interest Charges to Subsidiaries (244 ) (173 ) (193 ) Interest Income from Subsidiaries 2,848 4,897 4,786 Other Income 1,054 1,621 421 Total Other Income 82,103 66,575 64,295 Income Before Income Taxes 73,750 56,886 54,107 Income Tax Expense ( Benefit ) 1,311 (5,435 ) (5,238 ) Net Income $ 72,439 $ 62,321 $ 59,345 See accompanying notes to condensed financial statements. Otter Tail Corporation (PARENT COMPANY) Condensed Statements of Cash Flows--For the Years Ended December 31 (in thousands) 2017 2016 2015 Cash Flows from Operating Activities Net Cash Provided by Operating Activities $ 50,205 $ 83,296 $ 53,958 Cash Flows from Investing Activities Return of Capital (Investment in Subsidiaries) -- 9,912 (88,079 ) Debt Repaid by (Issued to) Subsidiaries 151 (3,309 ) (12,592 ) Cash (Used in) Provided by Investing Activities (121 ) 106 (11 ) Net Cash Provided by (Used in) Investing Activities 30 6,709 (100,682 ) Cash Flows from Financing Activities Change in Checks Written in Excess of Cash -- (428 ) 213 Net Short-Term (Repayments) Borrowings -- (59,666 ) 48,812 Borrowings from (Repayments to) Subsidiaries 23,389 (60,948 ) 32,249 Proceeds from Issuance of Common Stock 4,349 44,435 14,233 Common Stock Issuance Expenses -- (562 ) (451 ) Payments for Retirement of Capital Stock (1,799 ) (104 ) (1,596 ) Proceeds from the Issuance of Long-Term Debt -- 130,000 -- Short-Term and Long-Term Debt Issuance Expenses (158 ) (723 ) (312 ) Payments for Retirement of Long-Term Debt (15,231 ) (87,547 ) (201 ) Dividends Paid and Other Distributions (50,632 ) (48,244 ) (46,223 ) Net Cash (Used in) Provided by Financing Activities (40,082 ) (83,787 ) 46,724 Net Change in Cash and Cash Equivalents 10,153 6,218 -- Cash and Cash Equivalents at Beginning of Period 6,218 -- -- Cash and Cash Equivalents at End of Period $ 16,371 $ 6,218 $ -- See accompanying notes to condensed financial statements. Otter Tail Corporation (Parent Company) Notes to Condensed Financial Statements For the years ended December 31, 201 7, 2016 2015 Incorporated by reference are Otter Tail Corporation ’s consolidated statements of comprehensive income and common shareholders’ equity in Part II, Item 8. Basis of Presentation The condensed financial information of Otter Tail Corporation is presented to comply with Rule 12 04 X. not 10 Otter Tail Corporation ’s investments in subsidiaries are presented under the equity method of accounting. Under this method, the assets and liabilities of subsidiaries are not Related Party Transactions As of December 31, 201 7: (in thousands) Accounts Receivable Interest Receivable Current Notes Receivable Long-Term Notes Receivable Accounts Payable Current Notes Payable Otter Tail Power Company $ 2,067 $ -- $ -- $ -- $ 6 $ -- Vinyltech Corporation 2 17 -- 11,500 -- 20,603 Northern Pipe Products, Inc. 4 8 -- 5,711 -- 8,186 BTD Manufacturing, Inc. -- 77 -- 52,000 -- 7,260 Wind Tower Business -- -- 1,461 -- -- -- Dock and Boatlift Business -- -- 291 -- -- -- T.O. Plastics, Inc. -- 15 -- 10,400 -- 13,446 Varistar Corporation -- -- -- -- -- 12,413 Otter Tail Assurance Limited 25 -- -- -- -- -- $ 2,098 $ 117 $ 1,752 $ 79,611 $ 6 $ 61,908 As of December 31, 2016: (in thousands) Accounts Receivable Interest Receivable Current Notes Receivable Long-Term Notes Receivable Accounts Payable Current Notes Payable Otter Tail Power Company $ 1,572 $ -- $ -- $ -- $ 10 $ -- Vinyltech Corporation 3 20 -- 11,500 -- 15,951 Northern Pipe Products, Inc. -- 10 -- 5,943 -- 6,560 BTD Manufacturing, Inc. -- 92 -- 52,000 -- 2,342 Wind Tower Business -- -- 1,441 -- -- -- Dock and Boatlift Business -- -- 230 -- -- -- T.O. Plastics, Inc. -- 19 -- 10,400 -- 12,378 Varistar Corporation 60 -- -- -- 5,948 1,288 Otter Tail Assurance Limited 71 -- -- -- -- -- $ 1,706 $ 141 $ 1,671 $ 79,843 $ 5,958 $ 38,519 Dividends Dividends paid to Otter Tail Corporation (the Parent) from its subsidiaries were as follows: (in thousands) 2017 2016 2015 Cash Dividends Paid to Parent by Subsidiaries $ 50,571 $ 77,779 $ 46,188 See Otter Tail Corporation ’s notes to consolidated financial statements in Part II, Item 8 Other schedules are omitted because of the absence of the conditions under which they are required, because the amounts are insignificant or because the information required is included in the financial statements or the notes thereto. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements of Otter Tail Corporation and its wholly owned subsidiaries (the Company) include the accounts of the following segments: Electric, Manufacturing and Plastics. See note 2 980, Regulated Operations 980 |
Regulation, Policy [Policy Text Block] | Regulation and ASC 980 The Company ’s regulated electric utility company, Otter Tail Power Company (OTP), accounts for the financial effects of regulation in accordance with ASC 980. 4 OTP is subject to various state and federal agency regulations. The accounting policies followed by this business are subject to the Uniform System of Accounts of the Federal Energy Regulatory Commission (FERC). These accounting policies differ in some respects from those used by the Company ’s nonelectric businesses. |
Plant Retirement and Abandonment, Policy [Policy Text Block] | Plant, Retirements and Depreciation Utility plant is stated at original cost. The cost of additions includes contracted work, direct labor and materials, allocable overheads and allowance for funds used during construction. The amount of interest capitalized on electric utility plant was $741,000 2017, $495,000 2016 $723,000 2015. 5 82 2.74% 2017, 2.88% 2016 2.61% 2015. Property and equipment of nonelectric operations are carried at historical cost or at fair value if acquired in a business combination, and are depreciated on a straight-line basis over the assets’ estimated useful lives ( 3 40 No 2017, 2016 2015. |
Long-lived Assets, Policy [Policy Text Block] | Recoverability of Long-Lived Assets The Company reviews its long-lived assets whenever events or changes in circumstances indicate the carrying amount of the assets may not |
Joint Ownership, Policy [Policy Text Block] | Jointly Owned Facilities OTP is a joint owner in two four one December 31, 2017 2016 Jointly Owned Facilities ( dollars in thousands) OTP Ownership Percentage Electric Plant in Service Construction Work in Progress Accumulated Depreciation Net Plant December 31, 201 7 Big Stone Plant 53.9 % $ 329,942 $ 1,074 $ (74,165 ) $ 256,851 Coyote Station 35.0 % 177,721 158 (103,944 ) 73,935 Fargo-Monticello 345 kV line 14.2 % 78,192 -- (4,667 ) 73,525 Brookings-Southeast Twin Cities 345 kV line 1 4.8 % 26,269 -- (1,293 ) 24,976 Bemidji-Grand Rapids 230 kV line 14.8 % 16,331 -- (1,753 ) 14,578 Big Stone South –Brookings 345 kV line 1 50.0 % 53,225 -- (434 ) 52,791 Big Stone South –Ellendale 345 kV line 1 50.0 % -- 89,980 -- 89,980 December 31, 201 6 Big Stone Plant 53.9 % $ 328,809 $ 23 $ (65,665 ) $ 263,167 Coyote Station 35.0 % 176,315 113 (101,499 ) 74,929 Fargo-Monticello 345 kV line 14.2 % 78,298 -- (3,511 ) 74,787 Brookings-Southeast Twin Cities 345 kV line 1 4.8 % 26,406 -- (924 ) 25,482 Bemidji-Grand Rapids 230 kV line 14.8 % 16,331 -- (1,573 ) 14,758 Big Stone South –Brookings 345 kV line 1 50.0 % -- 45,050 -- 45,050 Big Stone South –Ellendale 345 kV line 1 50.0 % -- 49,160 -- 49,160 1 Midcontinent Independent System Operator, Inc. (MISO) Multi-Value Project (MVP) designation provides for a return on invested funds while under construction under the MISO Open Access Transmission, Energy and Operating Reserve Markets Tariff (MISO Tariff). The Company ’s share of direct revenue and expenses of the jointly owned facilities is included in operating revenue and expenses in the consolidated statements of income. |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Coyote Station Lignite Supply Agreement – Variable Interest Entity —In October 2012 May 2016 December 2040. May 2016 December 2040 No none, none not If the LSA terminates prior to the expiration of its term or the production period terminates prior to December 31, 2040 ’s applicable lender) assume, all of CCMC’s obligations owed to CCMC’s lenders under its loans and leases. The Coyote Station owners have limited rights to assign their rights and obligations under the LSA without the consent of CCMC’s lenders during any period in which CCMC’s obligations to its lenders remain outstanding. In the event the contract is terminated because regulations or legislation render the burning of coal cost prohibitive and the assets worthless, OTP’s maximum exposure to loss as a result of its involvement with CCMC as of December 31, 2017 $57.1 35% |
Income Tax, Policy [Policy Text Block] | Income Taxes Comprehensive interperiod income tax allocation is used for substantially all book and tax temporary differences. Deferred income taxes arise for all temporary differences between the book and tax basis of assets and liabilities. Deferred taxes are recorded using the tax rates scheduled by tax law to be in effect in the periods when the temporary differences reverse. The Company amortizes investment tax credits over the estimated lives of related property. The Company records income taxes in accordance with ASC Topic 740, Income Taxes, not” not” 50%. 13 The Company also is required to assess the realizability of its deferred tax assets, taking into consideration the Company ’s forecast of future taxable income, the reversal of other existing temporary differences, available net operating loss carryforwards and available tax planning strategies that could be implemented to realize the deferred tax assets. Based on this assessment, management must evaluate the need for, and amount of, valuation allowances against the Company’s deferred tax assets. To the extent facts and circumstances change in the future, adjustments to the valuation allowance may On December 22, 2017, Tax Cuts and Jobs Act of 2017 13 |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Due to the diverse business operations of the Company, revenue recognition depends on the product produced and sold or service performed. The Company recognizes revenue when the earnings process is complete, evidenced by an agreement with the customer, there has been delivery and acceptance, the price is fixed or determinable and collectability is reasonably assured. In cases where significant obligations remain after delivery, revenue recognition is deferred until such obligations are fulfilled. Provisions for sales returns are recorded at the time of the sale based on historical information and current trends. For the Company ’s operating companies recognizing revenue on certain products when shipped, those operating companies have no The majority of the revenues recorded by the companies in the Manufacturing and Plastics segments are recorded when products are shipped. Customer electricity use is metered and bills are rendered monthly. Revenue is accrued for electricity consumed but not is recognized for fuel and purchased power costs incurred in excess of amounts recovered in base rates but not not Revenues on wholesale electricity sales from Company-owned generating units are recognized when energy is delivered. For shared use of transmission facilities with certain regional transmission cooperatives, revenues are estimated. Bills are rendered based on anticipated usage and settlements are made later based on actual usage. Estimated revenues may Under ASC Topic 815, Derivatives and Hedging accounts for forward energy contracts as derivatives subject to mark-to-market accounting unless those contracts meet the definition of a capacity contract or are not |
Standard Product Warranty, Policy [Policy Text Block] | Warranty Reserves Certain products sold by the Company’s manufacturing and plastics companies carry product warranties for one no not three |
Shipping and Handling Cost, Policy [Policy Text Block] | Shipping and Handling Costs The Company includes revenues received for shipping and handling in operating revenues. Expenses paid for shipping and handling are recorded as part of cost of goods sold. |
Use of Estimates, Policy [Policy Text Block] | U se of Estimates The Company uses estimates based on the best information available in recording transactions and balances resulting from business operations. As better information becomes available (or actual amounts are known), the recorded estimates are revised. Consequently, operating results can be affected by revisions to prior accounting estimates. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash Equivalents The Company considers all highly liquid debt instruments purchased with maturity of 90 |
Investment, Policy [Policy Text Block] | Investments The following table provides a breakdown of the Company ’s investments at December 31: (in thousands) 201 7 201 6 Cost Method: Economic Development Loan Pools $ 45 $ 54 Other 115 115 Equity Method Partnerships 24 23 Marketable Debt Securities Classified as Available-for-Sale 7,160 8,225 Marketable Equity Securities Classified as Available-for-Sale 1,285 -- Total Investments $ 8,629 $ 8,417 The Company ’s marketable securities classified as available-for-sale are held for insurance purposes and are reflected at their fair values on December 31, 2017. |
Agreements Subject to Legally Enforceable Netting Arrangements [Policy Text Block] | Agreements Subject to Legally Enforceable Netting Arrangements OTP has certain derivative contracts that are designated as normal purchases and carried at historical cost in the accompanying balance sheet. Individual counterparty exposures for these contracts can be offset according to legally enforceable netting arrangements. The Company does not |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value Measurements The Company follows ASC Topic 820, Fair Value Measurements and Disclosures 820 820 three Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 Level 2 – Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities included in Level 2 Level 3 – Significant inputs to pricing have little or no 3 may The following tables present, for each of the hierarchy levels, the Company ’s assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2017 December 31, 2016: Dec ember 3 1 , 201 7 (in thousands) Level 1 Level 2 Level 3 Assets: Investments: Equity Funds – Held by Captive Insurance Company $ 1,285 Corporate Debt Securities – Held by Captive Insurance Company $ 5,373 Government-Backed and Government-Sponsored Enterprises ’ Debt Securities – Held by Captive Insurance Company 1,787 Other Assets: Money Market and Mutual Funds – Nonqualified Retirement Savings Plan 823 Total Assets $ 2,108 $ 7,160 December 31, 2016 (in thousands) Level 1 Level 2 Level 3 Assets: Investments: Corporate Debt Securities – Held by Captive Insurance Company $ 5,280 Government-Backed and Government-Sponsored Enterprises ’ Debt Securities – Held by Captive Insurance Company 2,945 Other Assets: Money Market and Mutual Funds – Nonqualified Retirement Savings Plan $ 849 Total Assets $ 849 $ 8,225 The valuation techniques and inputs used for the Level 2 Government-Backed and Government-Sponsored Enterprises ’ and Corporate Debt Securities Held by the Company’s Captive Insurance Company – Fair values are determined on the basis of valuations provided by a third may |
Inventory, Policy [Policy Text Block] | Inventories Electric segment inventories are reported at average cost. The Manufacturing and Plastics segments’ inventories are stated at the lower of average cost or market. Inventories consist of the following at December 31: (in thousands) 201 7 201 6 Finished Goods $ 26,605 $ 27,755 Work in Process 14,222 11,754 Raw Material, Fuel and Supplies 47,207 44,231 Total Inventories $ 88,034 $ 83,740 |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill and Other Intangible Assets The Company accounts for goodwill and other intangible assets in accordance with the requirements of ASC Topic 350, Intangibles—Goodwill and Other, fourth may not In the first 2015, $1.0 based on adjustments to the carrying value of Foley. The first 2015 15 On September 1, 2015 $8.2 million. A final determination of the purchase price was agreed to in June 2016 $2.2 June 2016. The following table s summarize changes to goodwill by business segment during 2017 2016: (in thousands) Gross Balance December 31, 201 6 Accumulated Impairments Balance (net of impairments) December 31, 201 6 Adjustments to Goodwill in 201 7 Balance (net of impairments) December 31, 201 7 Manufacturing $ 18,270 $ -- $ 18,270 $ -- $ 18,270 Plastics 19,302 -- 19,302 -- 19,302 Total $ 37,572 $ -- $ 37,572 $ -- $ 37,572 (in thousands) Gross Balance December 31, 2015 Accumulated Impairments Balance (net of impairments) December 31, 2015 Adjustments to Goodwill in 2016 Balance (net of impairments) December 31, 2016 Manufacturing $ 20,430 $ -- $ 20,430 $ (2,160 ) $ 18,270 Plastics 19,302 -- 19,302 -- 19,302 Total $ 39,732 $ -- $ 39,732 $ (2,160 ) $ 37,572 Intangible assets with finite lives are amortized over their estimated useful lives and reviewed for impairment in accordance with requirements under ASC Topic 360 10 35, Property, Plant, and Equipment—Overall—Subsequent Measurement 2017 $154,000 September 2017 The following table summarizes the components of the Company ’s intangible assets at December 31, 2017 December 31, 2016: December 31 , 2017 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Remaining Amortization Periods (months) Amortizable Intangible Assets: Customer Relationships $ 22,491 $ 8,994 $ 13,497 24 - 212 Covenant not to Compete 590 459 131 8 Other 154 17 137 32 Total $ 23,235 $ 9,470 $ 13,765 December 31, 2016 (in thousands) Amortizable Intangible Assets: Customer Relationships $ 22,491 $ 7,861 $ 14,630 36 - 224 Covenant not to Compete 590 262 328 20 Total $ 23,081 $ 8,123 $ 14,958 The amortization expense for these intangible assets was: (in thousands) 2017 2016 2015 Amortization Expense – Intangible Assets $ 1,347 $ 1,436 $ 1,127 The estimated annual amortization expense for these intangible assets for the next five (in thousands) 2018 2019 2020 2021 2022 Estimated Amortization Expense – Intangible Assets $ 1,315 $ 1,184 $ 1,133 $ 1,099 $ 1,099 |
Cash Flow Supplemental [Policy Text Block] | Supplemental Disclosures of Cash Flow Information As of December 31, (in thousands) 201 7 201 6 Noncash Investing Activities: Transactions Related to Capital Additions not Settled in Cash $ 13,887 $ 13,533 (in thousands) 201 7 201 6 201 5 Cash Paid (Received) During the Year for: Interest (net of amount capitalized) $ 29,791 $ 31,269 $ 30,512 Income Taxes $ 5,064 $ (1,291 ) $ 7,322 |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Standards Adopted Accounting Standards Update (ASU) 2015 11 —In July 2015 No. 2015 11, Inventory (Topic 330 December 15, 2016. 2015 11 first 2017. not New Accounting Standards Pending Adoption ASU 2014 09 —In May 2014 No. 2014 09, Revenue from Contracts with Customers (Topic 606 606 606 606 Amendments to the ASC in ASU 2014 09, December 15, 2017. 1 2 one 3 e date of initial application. As of December 31, 2017 2014 09 may 2014 09. not 2016 09. 2014 09 January 1, 2018, not 606 no 2014 09 may The Company will report adjustments to Alternative Revenue Program (ARP) revenues at OTP as a separate line item within revenue on the face of the Company’s consolidated statements of income. The ARP revenue adjustments are recorded on the basis of recoverable costs incurred and returns earned under rate riders and are not ASU 2016 02 —In February 2016 No. 2016 02, Leases (Topic 842 2016 02 2016 02 842, 840 842 842 842 842 2016 02 December 15, 2018, 2016 02 2016 02, 2016 02 not 2016 02 2019. ASU 2017 04 —In January 2017 No. 2017 04, Intangibles—Goodwill and Other (Topic 350 2017 04 simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 2 In computing the implied fair value of goodwill under Step 2, Under the amendments in ASU 2017 04, not The amendments in ASU 2017 04 no 2 2017 04 December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. ASU 2017 07 —In March 2017 No. 2017 07, Compensation—Retirement Benefits (Topic 715 2017 07 is intended to improve the presentation of net periodic pension cost and net periodic postretirement benefit cost. ASC Topic 715, Compensation—Retirement Benefits 715 , not not 2017 07 715 2017 07 2017 07 December 15, 2017, The majority of the Company ’s benefit costs to which the amendments in ASU 2017 07 2017 07 2017 07 2017 07 2017 07. The Company does not 2017 07 first 2018, 2017 2017 07 2017 $0.8 2017 07 $5.6 2017 $5.1 2016. |
Note 1 - Summary of Significa30
Note 1 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Public Utility Property, Plant, and Equipment [Table Text Block] | Jointly Owned Facilities ( dollars in thousands) OTP Ownership Percentage Electric Plant in Service Construction Work in Progress Accumulated Depreciation Net Plant December 31, 201 7 Big Stone Plant 53.9 % $ 329,942 $ 1,074 $ (74,165 ) $ 256,851 Coyote Station 35.0 % 177,721 158 (103,944 ) 73,935 Fargo-Monticello 345 kV line 14.2 % 78,192 -- (4,667 ) 73,525 Brookings-Southeast Twin Cities 345 kV line 1 4.8 % 26,269 -- (1,293 ) 24,976 Bemidji-Grand Rapids 230 kV line 14.8 % 16,331 -- (1,753 ) 14,578 Big Stone South –Brookings 345 kV line 1 50.0 % 53,225 -- (434 ) 52,791 Big Stone South –Ellendale 345 kV line 1 50.0 % -- 89,980 -- 89,980 December 31, 201 6 Big Stone Plant 53.9 % $ 328,809 $ 23 $ (65,665 ) $ 263,167 Coyote Station 35.0 % 176,315 113 (101,499 ) 74,929 Fargo-Monticello 345 kV line 14.2 % 78,298 -- (3,511 ) 74,787 Brookings-Southeast Twin Cities 345 kV line 1 4.8 % 26,406 -- (924 ) 25,482 Bemidji-Grand Rapids 230 kV line 14.8 % 16,331 -- (1,573 ) 14,758 Big Stone South –Brookings 345 kV line 1 50.0 % -- 45,050 -- 45,050 Big Stone South –Ellendale 345 kV line 1 50.0 % -- 49,160 -- 49,160 |
Investment [Table Text Block] | (in thousands) 201 7 201 6 Cost Method: Economic Development Loan Pools $ 45 $ 54 Other 115 115 Equity Method Partnerships 24 23 Marketable Debt Securities Classified as Available-for-Sale 7,160 8,225 Marketable Equity Securities Classified as Available-for-Sale 1,285 -- Total Investments $ 8,629 $ 8,417 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Dec ember 3 1 , 201 7 (in thousands) Level 1 Level 2 Level 3 Assets: Investments: Equity Funds – Held by Captive Insurance Company $ 1,285 Corporate Debt Securities – Held by Captive Insurance Company $ 5,373 Government-Backed and Government-Sponsored Enterprises ’ Debt Securities – Held by Captive Insurance Company 1,787 Other Assets: Money Market and Mutual Funds – Nonqualified Retirement Savings Plan 823 Total Assets $ 2,108 $ 7,160 December 31, 2016 (in thousands) Level 1 Level 2 Level 3 Assets: Investments: Corporate Debt Securities – Held by Captive Insurance Company $ 5,280 Government-Backed and Government-Sponsored Enterprises ’ Debt Securities – Held by Captive Insurance Company 2,945 Other Assets: Money Market and Mutual Funds – Nonqualified Retirement Savings Plan $ 849 Total Assets $ 849 $ 8,225 |
Schedule of Inventory, Current [Table Text Block] | (in thousands) 201 7 201 6 Finished Goods $ 26,605 $ 27,755 Work in Process 14,222 11,754 Raw Material, Fuel and Supplies 47,207 44,231 Total Inventories $ 88,034 $ 83,740 |
Schedule of Goodwill [Table Text Block] | (in thousands) Gross Balance December 31, 201 6 Accumulated Impairments Balance (net of impairments) December 31, 201 6 Adjustments to Goodwill in 201 7 Balance (net of impairments) December 31, 201 7 Manufacturing $ 18,270 $ -- $ 18,270 $ -- $ 18,270 Plastics 19,302 -- 19,302 -- 19,302 Total $ 37,572 $ -- $ 37,572 $ -- $ 37,572 (in thousands) Gross Balance December 31, 2015 Accumulated Impairments Balance (net of impairments) December 31, 2015 Adjustments to Goodwill in 2016 Balance (net of impairments) December 31, 2016 Manufacturing $ 20,430 $ -- $ 20,430 $ (2,160 ) $ 18,270 Plastics 19,302 -- 19,302 -- 19,302 Total $ 39,732 $ -- $ 39,732 $ (2,160 ) $ 37,572 |
Schedule of Other Intangible Assets [Table Text Block] | December 31 , 2017 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Remaining Amortization Periods (months) Amortizable Intangible Assets: Customer Relationships $ 22,491 $ 8,994 $ 13,497 24 - 212 Covenant not to Compete 590 459 131 8 Other 154 17 137 32 Total $ 23,235 $ 9,470 $ 13,765 December 31, 2016 (in thousands) Amortizable Intangible Assets: Customer Relationships $ 22,491 $ 7,861 $ 14,630 36 - 224 Covenant not to Compete 590 262 328 20 Total $ 23,081 $ 8,123 $ 14,958 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | (in thousands) 2017 2016 2015 Amortization Expense – Intangible Assets $ 1,347 $ 1,436 $ 1,127 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | (in thousands) 2018 2019 2020 2021 2022 Estimated Amortization Expense – Intangible Assets $ 1,315 $ 1,184 $ 1,133 $ 1,099 $ 1,099 |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | As of December 31, (in thousands) 201 7 201 6 Noncash Investing Activities: Transactions Related to Capital Additions not Settled in Cash $ 13,887 $ 13,533 (in thousands) 201 7 201 6 201 5 Cash Paid (Received) During the Year for: Interest (net of amount capitalized) $ 29,791 $ 31,269 $ 30,512 Income Taxes $ 5,064 $ (1,291 ) $ 7,322 |
Note 2 - Business Combination31
Note 2 - Business Combinations, Dispositions and Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | (in thousands) Assets: Current Assets $ 4,906 Goodwill 6,083 Other Intangible Assets 6,270 Other Amortizable Assets 1,380 Fixed Assets 13,649 Total Assets $ 32,288 Liabilities: Current Liabilities $ 2,971 Lease Obligation 11 Total Liabilities $ 2,982 Cash Paid $ 29,306 |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | (in thousands) 201 7 201 6 201 5 Operating Revenue Electric $ 434,537 $ 427,383 $ 407,131 Manufacturing 229,738 221,289 215,011 Plastics 185,132 154,901 157,758 Intersegment Eliminations (57 ) (34 ) (96 ) Total $ 849,350 $ 803,539 $ 779,804 Cost of Products Sold Manufacturing $ 176,473 $ 171,732 $ 171,956 Plastics 140,107 123,496 123,085 Intersegment Eliminations (18 ) (6 ) (9 ) Total $ 316,562 $ 295,222 $ 295,032 Other Nonelectric Expenses Manufacturing $ 23,785 $ 21,994 $ 21,116 Plastics 11,564 9,402 9,849 Corporate 7,930 8,896 9,143 Intersegment Eliminations (39 ) (28 ) (87 ) Total $ 43,240 $ 40,264 $ 40,021 Depreciation and Amortization Electric $ 53,276 $ 53,743 $ 44,786 Manufacturing 15,379 15,794 11,853 Plastics 3,817 3,861 3,552 Corporate 73 47 172 Total $ 72,545 $ 73,445 $ 60,363 Operating Income (Loss) Electric $ 90,392 $ 90,131 $ 87,171 Manufacturing 14,101 11,769 10,086 Plastics 29,644 18,142 21,272 Corporate (8,003 ) (8,943 ) (9,315 ) Total $ 126,134 $ 111,099 $ 109,214 Interest Charges Electric $ 25,334 $ 25,069 $ 24,371 Manufacturing 2,215 3,859 3,560 Plastics 633 1,034 1,026 Corporate and Intersegment Eliminations 1,422 1,924 2,203 Total $ 29,604 $ 31,886 $ 31,160 Income Tax Expense (Benefit) – Continuing Operations Electric $ 17,013 $ 16,366 $ 16,067 Manufacturing 989 2,276 2,299 Plastics 7,448 6,538 8,187 Corporate 1,593 (5,099 ) (4,911 ) Total $ 27,043 $ 20,081 $ 21,642 Net Income (Loss) Electric $ 49,446 $ 49,829 $ 48,370 Manufacturing 11,050 5,694 4,247 Plastics 21,696 10,628 12,108 Corporate (10,073 ) (4,114 ) (6,136 ) Discontinued Operations 320 284 756 Total $ 72,439 $ 62,321 $ 59,345 (in thousands) 2017 2016 2015 Capital Expenditures Electric $ 118,444 $ 149,648 $ 135,572 Manufacturing 9,916 8,429 20,295 Plastics 4,432 3,085 4,206 Corporate 121 97 11 Total $ 132,913 $ 161,259 $ 160,084 Identifiable Assets Electric $ 1,690,224 $ 1,622,231 $ 1,520,887 Manufacturing 167,023 166,525 173,860 Plastics 87,230 84,592 81,624 Corporate 59,801 39,037 42,312 Total $ 2,004,278 $ 1,912,385 $ 1,818,683 |
Note 3 - Rate and Regulatory 32
Note 3 - Rate and Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Interim Revenue [Table Text Block] | Interim Revenue (in thousands) April 16, 2016 through October 31, 2017 Billed $ 23,289 Accrued Refund $ 8,779 Net Interim Revenue $ 14,510 Interest on Refundable Amount $ 265 Final Refund $ 9,044 |
Schedule of Information on Status of Updates for Previous Periods [Table Text Block] | Rate Rider R - Request Date A - Approval Date Effective Date Requested or Approved Annual Revenue ($000s) Rate Minnesota Conservation Improvement Program 2016 Incentive and Cost Recovery A – September 15, 2017 October 1, 2017 $ 9,868 $0.00536/kwh 2015 Incentive and Cost Recovery A – July 19, 2016 October 1, 2016 $ 8,590 $0.00275/kwh 2014 Incentive and Cost Recovery A – July 10, 2015 October 1, 2015 $ 8,689 $0.00287/kwh 201 3 Incentive and Cost Recovery A – September 26, 2014 October 1, 201 4 $ 8,862 $0.002 63/kwh Transmission Cost Recovery 2017 Rate Reset 1 A – October 30, 2017 November 1, 2017 $ (3,311 ) Various 2016 Annual Update A – July 5, 2016 September 1, 2016 $ 4,736 Various 2015 Annual Update A – March 9, 2016 April 1, 2016 $ 7,203 Various 2014 Annual Update A – February 18, 2015 March 1, 2015 $ 8,388 Various 201 3 Annual Update A – June 24, 2014 March 1, 201 4 $ 2,066 Various Environmental Cost Recovery 2017 Rate Reset A – October 30, 2017 November 1, 2017 $ (1,943 ) -0.935% of base 2016 Annual Update A – July 5, 2016 September 1, 2016 $ 11,884 6.927% of base 2015 Annual Update A – March 9, 2016 October 1, 2015 $ 12,104 7.006% of base 201 4 Annual Update A – November 26, 2014 December 1, 2014 $ 9,229 2 7.006 % of base North Dakota Renewable Resource Adjustment 2017 Rate Reset A – December 20, 2017 January 1, 2018 $ 9,989 7.756% of base 2016 Annual Update A – March 15, 2017 April 1, 2017 $ 9,156 7.005% of base 2015 Annual Update A – June 22, 2016 July 1, 2016 $ 9,262 7.573% of base 2014 Annual Update A – March 25, 2015 April 1, 2015 $ 5,441 4.069% of base 201 3 Annual Update A – March 12, 2014 April 1, 201 4 $ 8,068 $0.00 437/kwh Transmission Cost Recovery 2017 Annual Update A – November 29, 2017 January 1, 2018 $ 7,959 Various 2016 Annual Update A – December 14, 2016 January 1, 2017 $ 6,916 Various 2015 Annual Update A – December 16, 2015 January 1, 2016 $ 9,985 Various 201 4 Annual Update A – December 17, 2014 January 1, 201 5 $ 8,463 Various Environmental Cost Recovery 2017 Rate Reset A – December 20, 2017 January 1, 2018 $ 8,537 6.629% of base 2017 Annual Update A – July 12, 2017 August 1, 2017 $ 9,917 7.633% of base 2016 Annual Update A – June 22, 2016 July 1, 2016 $ 10,359 7.904% of base 2015 Annual Update A – June 17, 2015 July 1, 2015 $ 12,249 9.193% of base 201 4 Annual Update A – July 10, 2014 August 1 , 2014 $ 9,880 7.531 % of base South Dakota Transmission Cost Recovery 201 7 Annual Update R – November 1, 2017 March 1, 201 8 $ 1,779 Various 2016 Annual Update A – February 17, 2017 March 1, 2017 $ 2,053 Various 2015 Annual Update A – February 12, 2016 March 1, 2016 $ 1,895 Various 2014 Annual Update A – February 13, 2015 March 1, 2015 $ 1,538 Various 201 3 Annual Update A – February 18, 2014 March 1, 201 4 $ 1,349 Various Environmental Cost Recovery 2017 Annual Update A – October 13, 2017 November 1, 2017 $ 2,082 $0.00483/kwh 2016 Annual Update A – October 26, 2016 November 1, 2016 $ 2,238 $0.00536/kwh 2015 Annual Update A – October 15, 2015 November 1, 2015 $ 2,728 $0.00643/kwh 201 4 Initial Request A – November 25, 2014 December 1, 2014 $ 1,995 $0.00 487/kwh |
Schedule of Revenues Recorded under Rate Riders [Table Text Block] | Rate Rider (in thousands) 201 7 201 6 201 5 Minnesota Conservation Improvement Program Costs and Incentives 1 $ 9,225 $ 12,920 $ 10,724 Transmission Cost Recovery 2,973 5,795 5,202 Environmental Cost Recovery 8,148 12,443 10,238 North Dakota Renewable Resource Adjustment 7,620 7,800 8,409 Transmission Cost Recovery 8,729 7,694 6,609 Environmental Cost Recovery 9,782 11,089 9,502 South Dakota Transmission Cost Recovery 1,843 1,820 1,290 Environmental Cost Recovery 2,345 2,538 1,967 Conservation Improvement Program Costs and Incentives 598 468 583 |
Minnesota 2016 General Rate Case Information [Member] | |
Notes Tables | |
Public Utilities General Disclosures [Table Text Block] | ($ in thousands) Interim Rates Authorized April 14, 2016 Final Rates Revenue Increase – Annualized based on Test Year Data $ 16,816 $ 10,471 Revenue Percent Increase 9.56 % 5.34 % Return on Rate Base 8.07 % 7.5056 % Jurisdictional Rate Base based on Test Year Data $ 483,000 $ 471,000 Return on Equity 10.40 % 9.41 % Based on Equity to Total Capital of 52.50 % 52.50 % Debt to Total Capital 47.50 % 47.50 % |
Note 4 - Regulatory Assets an33
Note 4 - Regulatory Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Regulatory Assets and Liabilities [Table Text Block] | December 31 , 2017 Remaining Recovery/ (in thousands) Current Long-Term Total Refund Period (months) Regulatory Assets: Prior Service Costs and Actuarial Losses on Pensions and Other Postretirement Benefits 1 $ 9,090 $ 112,487 $ 121,577 see below Conservation Improvement Program Costs and Incentives 2 7,385 2,774 10,159 21 Accumulated ARO Accretion/Depreciation Adjustment 1 -- 6,651 6,651 asset lives Deferred Marked-to-Market Losses 1 4,063 2,405 6,468 36 Big Stone II Unrecovered Project Costs – Minnesota 1 650 1,636 2,286 40 MISO Schedule 26/26A Transmission Cost Recovery Rider True-up 2 -- 1,985 1,985 24 Debt Reacquisition Premiums 1 254 960 1,214 177 Big Stone II Unrecovered Project Costs – South Dakota 2 100 442 542 65 North Dakota Renewable Resource Rider Accrued Revenues 2 206 236 442 15 North Dakota Deferred Rate Case Expenses Subject to Recovery 1 309 -- 309 12 Minnesota Deferred Rate Case Expenses Subject to Recovery 1 267 -- 267 4 North Dakota Environmental Cost Recovery Rider Accrued Revenues 2 152 -- 152 12 Minnesota E nergy Intensive Trade Exposed Rider Accrued Revenues 2 75 -- 75 12 Total Regulatory Assets $ 22,551 $ 129,576 $ 152,127 Regulatory Liabilities: Deferred Income Taxes $ -- $ 149,052 $ 149,052 asset lives Accumulated Reserve for Estimated Removal Costs – Net of Salvage -- 83,100 83,100 asset lives Re fundable Fuel Clause Adjustment Revenues 5,778 -- 5,778 12 Minnesota Environmental Cost Recovery Rider Accrued Refund 1,667 -- 1,667 11 Minnesota Transmission Cost Recovery Rider Accrued Refund 802 609 1,411 22 Minnesota Renewable Resource Recovery Rider Accrued Refund 409 -- 409 12 North Dakota Transmission Cost Recovery Rider Accrued Refund 349 -- 349 12 Revenue for Rate Case Expenses Subject to Refund – Minnesota 208 -- 208 4 South Dakota Environmental Cost Recovery Rider Accrued Refund 187 -- 187 12 MISO Schedule 26/26A Transmission Cost Recovery Rider True-up 132 48 180 24 South Dakota Transmission Cost Recovery Rider Accrued Refund 151 -- 151 12 Other 5 84 89 192 Total Regulatory Liabilities $ 9,688 $ 232,893 $ 242,581 Net Regulatory Asset /(Liability) Position $ 12,863 $ (103,317 ) $ (90,454 ) December 31, 2016 Remaining Recovery/ (in thousands) Current Long-Term Total Refund Period (months) Regulatory Assets: Prior Service Costs and Actuarial Losses on Pensions and Other Postretirement Benefits 1 $ 6,443 $ 108,267 $ 114,710 see below Conservation Improvement Program Costs and Incentives 2 4,836 5,158 9,994 21 Accumulated ARO Accretion/Depreciation Adjustment 1 -- 6,153 6,153 asset lives Deferred Marked-to-Market Losses 1 4,063 6,467 10,530 48 Big Stone II Unrecovered Project Costs – Minnesota 1 778 2,087 2,865 52 MISO Schedule 26/26A Transmission Cost Recovery Rider True-up 2 333 -- 333 12 Debt Reacquisition Premiums 1 325 1,214 1,539 189 Big Stone II Unrecovered Project Costs – South Dakota 2 100 543 643 77 North Dakota Renewable Resource Rider Accrued Revenues 2 1,319 482 1,801 15 Minnesota Deferred Rate Case Expenses Subject to Recovery 1 1,082 -- 1,082 12 North Dakota Environmental Cost Recovery Rider Accrued Revenues 2 113 -- 113 12 Deferred Income Taxes 1 -- 1,014 1,014 asset lives Recoverable Fuel and Purchased Power Costs 1 1,798 -- 1,798 12 Minnesota Renewable Resource Rider Accrued Revenues 2 34 -- 34 9 North Dakota Transmission Cost Recovery Rider Accrued Revenues 2 -- 568 568 24 South Dakota Transmission Cost Recovery Rider Accrued Revenues 2 73 141 214 14 Total Regulatory Assets $ 21,297 $ 132,094 $ 153,391 Regulatory Liabilities: Deferred Income Taxes $ -- $ 818 $ 818 asset lives Accumulated Reserve for Estimated Removal Costs – Net of Salvage -- 80,404 80,404 asset lives Minnesota Environmental Cost Recovery Rider Accrued Refund 139 -- 139 12 Minnesota Transmission Cost Recovery Rider Accrued Refund 757 -- 757 12 North Dakota Transmission Cost Recovery Rider Accrued Refund 1,381 782 2,163 24 Revenue for Rate Case Expenses Subject to Refund – Minnesota 711 208 919 16 South Dakota Environmental Cost Recovery Rider Accrued Refund 285 -- 285 12 MISO Schedule 26/26A Transmission Cost Recovery Rider True-up -- 132 132 24 Other 21 89 110 204 Total Regulatory Liabilities $ 3,294 $ 82,433 $ 85,727 Net Regulatory Asset Position $ 18,003 $ 49,661 $ 67,664 |
Note 5 - Common Shares and Ea34
Note 5 - Common Shares and Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Common Stock Outstanding Roll Forward [Table Text Block] | Common Shares Outstanding December 31, 2016 39,348,136 Issuances: Executive Stock Performance Awards (2014 shares earned) 89,291 Automatic Dividend Reinvestment and Share Purchase Plan: Dividends Reinvested 68,235 Cash Invested 29,463 Vesting of Restricted Stock Units 22,225 Restricted Stock Issued to Directors 17,600 Employee Stock Ownership Plan 14,835 Employee Stock Purchase Plan: Dividends Reinvested 9,566 Cash Invested 5,284 Directors Deferred Compensation 560 Retirements: Shares Withheld for Individual Income Tax Requirements (47,704 ) Common Shares Outstanding December 31, 2017 39,557,491 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 201 7 201 6 201 5 Weighted Average Common Shares Outstanding – Basic 39,457,261 38,546,459 37,494,986 Plus Outstanding Share Awards net of Share Reductions for Unrecognized Stock-Based Compensation Expense and Excess Tax Benefits: Shares Expected to be Awarded for Stock Performance Awards Granted to Executive Officers based on Measurement Period-to-Date Performance 210,784 118,644 100,194 Underlying Shares Related to Nonvested Restricted Stock Units Granted to Employees 56,952 45,712 36,180 Nonvested Restricted Shares 20,380 16,778 22,848 Shares Expected to be Issued Under the Deferred Compensation Program for Directors 2,970 3,417 13,488 Potentially Dilutive Stock Options -- -- 330 Total Dilutive Shares 291,086 184,551 173,040 Weighted Average Common Shares Outstanding – Diluted 39,748,347 38,731,010 37,668,026 |
Note 6 - Share-based Payments (
Note 6 - Share-based Payments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Share-based Compensation, Stock Options, Activity [Table Text Block] | Stock Options Activity 201 7 201 6 20 15 Options Average Exercise Price Options Average Exercise Price Options Average Exercise Price Outstanding, Beginning of Year -- -- 12,750 $ 24.93 Exercised -- -- 10,250 24.93 Forfeited or Expired -- -- 2,500 24.93 Outstanding, End of Year -- -- -- Exercisable, End of Year -- -- -- Cash Received for Options Exercised $ 256,000 Intrinsic Value of Options Exercised $ 75,000 |
Schedule of Share-based Compensation, Nonemployee Director Stock Award Plan, Activity [Table Text Block] | Directors ’ Restricted Stock Awards 201 7 201 6 20 15 Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Nonvested, Beginning of Year 46,334 $ 29.71 38,217 $ 29.78 38,050 $ 27.47 Granted 17,600 37.75 23,200 28.66 15,200 31.775 Vested 17,134 29.93 15,083 28.28 15,033 25.96 Forfeited -- -- -- Nonvested, End of Year 46,800 32.65 46,334 29.71 38,217 29.78 Compensation Expense Recognized $ 658,000 $ 491,000 $ 417,000 Fair Value of Shares Vested in Year $ 513,000 $ 427,000 $ 390,000 |
Schedule of Share-based Compensation, Restricted Stock Activity [Table Text Block] | Employees ’ Restricted Stock Awards 201 7 201 6 201 5 Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Nonvested, Beginning of Year 7,180 $ 29.72 13,581 $ 28.56 45,280 $ 27.46 Granted -- -- -- Vested 4,285 29.94 6,401 27.25 31,699 27.09 Forfeited -- -- -- Nonvested, End of Year 2,895 29.41 7,180 29.72 13,581 28.56 Compensation Expense Recognized $ 70,000 $ 96,000 $ 359,000 Fair Value of Awards Vested $ 128,000 $ 174,000 $ 859,000 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Employee s’ Restricted Stock Unit Awards 201 7 201 6 201 5 Restricted Stock Units Weighted Average Grant-Date Fair Value Restricted Stock Units Weighted Average Grant-Date Fair Value Restricted Stock Units Weighted Average Grant-Date Fair Value Nonvested, Beginning of Year 47,370 $ 25.19 46,600 $ 23.75 45,900 $ 21.82 Granted 10,995 33.28 17,220 24.54 15,650 25.89 Vested 11,550 25.30 12,250 19.03 12,250 19.46 Forfeited 375 26.92 4,200 24.51 2,700 22.84 Nonvested, End of Year 46,440 27.07 47,370 25.19 46,600 23.75 Compensation Expense Recognized $ 331,000 $ 307,000 $ 304,000 Fair Value of Awards Vested $ 292,000 $ 233,000 $ 238,000 |
Key Employees [Member] | |
Notes Tables | |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | Grant Date Units Granted Grant-Date Fair Value per Award Restricted Stock Units Vesting 100% on April 8, 20 21 April 1 0, 2017 9,995 $ 32.78 Restricted Stock Units Vesting 100% on April 8, 20 21 September 2 5, 2017 1,000 $ 38.29 |
Executive Officers [Member] | |
Notes Tables | |
Schedule of Share-based Compensation, Restricted Stock Activity [Table Text Block] | Executives ’ Restricted Stock Unit Awards 2017 2016 2015 Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Shares Weighted Average Grant-Date Fair Value Nonvested, Beginning of Year 41,825 $ 30.23 24,300 $ 31.682 -- Granted 15,900 37.65 22,000 28.915 29,100 $ 31.681 Vested 9,975 30.16 4,475 31.69 4,800 31.675 Forfeited -- -- -- Nonvested, End of Year 47,750 32.71 41,825 30.23 24,300 31.682 Compensation Expense Recognized $ 576,000 $ 446,000 $ 452,000 Fair Value of Awards Vested $ 301,000 $ 142,000 $ 152,000 |
Stock Performance Awards [Member] | |
Notes Tables | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Performance Period Maximum Shares Subject To Award Target Shares Expense Recognized in the Year Ended December 31, Earned Shares 201 7 201 6 201 5 2017-2019 89,250 59,500 $ 854,000 7,500 2016-2018 122,250 81,500 580,000 $ 798,000 11,100 2015-2017 126,450 84,300 573,000 535,000 $ 943,000 114,648 2014-2016 159,450 106,300 -- 332,000 (64,000 ) 121,491 2013-2015 90,600 45,300 -- -- (445,000 ) 22,500 Total $ 2,007,000 $ 1,665,000 $ 434,000 277,239 |
Note 8 - Commitments and Cont36
Note 8 - Commitments and Contingencies of Continuing Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Contractual Obligation, Fiscal Year Maturity Schedule [Table Text Block] | Construction Program Capacity and Energy Coal Purchase Operating Leases (in thousands) and Other Commitments Requirements Commitments OTP Nonelectric Total 2018 $ 29,218 $ 24,424 $ 26,021 $ 1,838 $ 4,175 $ 6,013 2019 15,159 24,925 23,016 1,435 4,183 5,618 2020 1,680 24,844 22,102 1,436 3,362 4,798 2021 1,680 12,988 22,537 1,241 1,434 2,675 202 2 -- 11,827 22,300 761 1,439 2,200 Beyond 202 2 -- 154,310 527,520 8,644 4,326 12,970 Total $ 47,737 $ 253,318 $ 643,496 $ 15,355 $ 18,919 $ 34,274 |
Note 9 - Short-term and Long-37
Note 9 - Short-term and Long-term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Line of Credit Facilities [Table Text Block] | (in thousands) Line Limit In Use on December 31, 201 7 Restricted due to Outstanding Letters of Credit Available on December 31, 201 7 Available on December 31, 201 6 Otter Tail Corporation Credit Agreement $ 130,000 $ -- $ -- $ 130,000 $ 130,000 OTP Credit Agreement 170,000 112,371 300 57,329 127,067 Total $ 300,000 $ 112,371 $ 300 $ 187,329 $ 257,067 |
Schedule of Debt [Table Text Block] | December 31, 2017 (in thousands) OTP Otter Tail Corporation Otter Tail Corporation Consolidated Short-Term Debt $ 112,371 $ -- $ 112,371 Long-Term Debt: Term Loan, LIBOR plus 0.90%, due February 5, 2018 $ -- $ -- 3.55% Guaranteed Senior Notes, due December 15, 2026 80,000 80,000 Senior Unsecured Notes 4.63%, due December 1, 2021 $ 140,000 140,000 Senior Unsecured Notes 6.15%, Series B, due August 20, 2022 30,000 30,000 Senior Unsecured Notes 6.37%, Series C, due August 20, 2027 42,000 42,000 Senior Unsecured Notes 4.68%, Series A, due February 27, 2029 60,000 60,000 Senior Unsecured Notes 6.47%, Series D, due August 20, 2037 50,000 50,000 Senior Unsecured Notes 5.47%, Series B, due February 27, 2044 90,000 90,000 North Dakota Development Note, 3.95%, due April 1, 2018 27 27 PACE Note, 2.54%, due March 18, 2021 684 684 Total $ 412,000 $ 80,711 $ 492,711 Less: Current Maturities net of Unamortized Debt Issuance Costs -- 186 186 Unamortized Long-Term Debt Issuance Costs 1,684 461 2,145 Total Long-Term Debt net of Unamortized Debt Issuance Costs $ 410,316 $ 80,064 $ 490,380 Total Short-Term and Long-Term Debt (with current maturities) $ 522,687 $ 80,250 $ 602,937 December 31 , 2016 (in thousands) OTP Otter Tail Corporation Otter Tail Corporation Consolidated Short-Term Debt $ 42,883 $ -- $ 42,883 Long-Term Debt: Term Loan, LIBOR plus 0.90%, due February 5, 2018 $ 15,000 $ 15,000 3.55% Guaranteed Senior Notes, due December 15, 2026 80,000 80,000 Senior Unsecured Notes 5.95%, Series A, due August 20, 2017 $ 33,000 33,000 Senior Unsecured Notes 4.63%, due December 1, 2021 140,000 140,000 Senior Unsecured Notes 6.15%, Series B, due August 20, 2022 30,000 30,000 Senior Unsecured Notes 6.37%, Series C, due August 20, 2027 42,000 42,000 Senior Unsecured Notes 4.68%, Series A, due February 27, 2029 60,000 60,000 Senior Unsecured Notes 6.47%, Series D, due August 20, 2037 50,000 50,000 Senior Unsecured Notes 5.47%, Series B, due February 27, 2044 90,000 90,000 North Dakota Development Note, 3.95%, due April 1, 2018 106 106 PACE Note, 2.54%, due March 18, 2021 836 836 Total $ 445,000 $ 95,942 $ 540,942 Less: Current Maturities net of Unamortized Debt Issuance Costs 32,970 231 33,201 Unamortized Long-Term Debt Issuance Costs 1,861 539 2,400 Total Long-Term Debt net of Unamortized Debt Issuance Costs $ 410,169 $ 95,172 $ 505,341 Total Short-Term and Long-Term Debt (with current maturities) $ 486,022 $ 95,403 $ 581,425 |
Schedule of Maturities of Long-term Debt [Table Text Block] | (in thousands) 2018 2019 2020 2021 2022 Aggregate Amounts of Debt Maturities $ 186 $ 172 $ 185 $ 140,167 $ 30,000 |
Note 10 - Pension Plan and Ot38
Note 10 - Pension Plan and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | (in thousands) 201 7 201 6 201 5 Service Cost –Benefit Earned During the Period $ 5,629 $ 5,518 $ 6,059 Interest Cost on Projected Benefit Obligation 14,139 14,195 13,344 Expected Return on Assets (19,229 ) (19,454 ) (18,383 ) Amortization of Prior Service Cost: From Regulatory Asset 120 189 188 From Other Comprehensive Income 1 3 5 5 Amortization of Net Actuarial Loss: From Regulatory Asset 5,090 5,153 6,676 From Other Comprehensive Income 1 125 127 171 Net Periodic Pension Cost 2 $ 5,877 $ 5,733 $ 8,060 1 Corporate cost included in Other Nonelectric Expenses. 2 Allocation of Costs : 2017 2016 2015 Costs included in OTP Capital Expenditures $ 1,142 $ 1,048 $ 1,453 Costs included in E lectric Operation and Maintenance Expenses 4,594 4,547 6,406 Costs included in Other Nonelectric Expenses 141 138 201 (in thousands) 201 7 201 6 20 15 Service Cost –Benefit Earned During the Period $ 290 $ 252 $ 189 Interest Cost on Projected Benefit Obligation 1,686 1,667 1,523 Amortization of Prior Service Cost: From Regulatory Asset 16 16 16 From Other Comprehensive Income 1 38 38 38 Amortization of Net Actuarial Loss: From Regulatory Asset 285 293 334 From Other Comprehensive Income 2 440 446 602 Net Periodic Pension Cost 3 $ 2,755 $ 2,712 $ 2,702 1 Amortization of Prior Service Costs from Other Comprehensive Income Charged to: Electric Operation and Maintenance Expenses $ 15 $ 15 $ 15 Other Nonelectric Expenses 23 23 23 2 Amortization of Net Actuarial Loss from Other Comprehensive Income Charged to: Electric Operation and Maintenance Expenses $ 265 $ 272 $ 310 Other Nonelectric Expenses 175 174 292 3 ESSRP costs are not capitalized. (in thousands) 201 7 201 6 201 5 Service Cost –Benefit Earned During the Period $ 1,425 $ 1,301 $ 1,297 Interest Cost on Projected Benefit Obligation 2,712 2,503 2,097 Amortization of Prior Service Cost From Regulatory Asset (4 ) 134 205 From Other Comprehensive Income 1 4 3 5 Amortization of Net Actuarial Loss From Regulatory Asset 936 379 -- From Other Comprehensive Income 1 19 9 -- Net Periodic Postretirement Benefit Cost 2 $ 5,092 $ 4,329 $ 3,604 Effect of Medicare Part D Subsidy $ (561 ) $ (923 ) $ (1,487 ) 1 Corporate cost included in Other Nonelectric Expenses 2 Allocation of Cost : 2017 2016 2015 Cost included in OTP Capital Expenditures $ 989 $ 792 $ 650 Cost included in E lectric Operation and Maintenance Expenses 3,981 3,433 2,864 Cost included in Other Nonelectric Expenses 122 104 90 |
Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | (in thousands) 201 7 201 6 Regulatory Assets: Unrecognized Prior Service Cost $ 21 $ 141 Unrecognized Actuarial Loss 99,360 98,039 Total Regulatory Assets $ 99,381 $ 98,180 Accumulated Other Comprehensive Loss: Unrecognized Prior Service Cost $ 9 $ 12 Unrecognized Actuarial Loss 439 406 Total Accumulated Other Comprehensive Loss $ 448 $ 418 Noncurrent Liability $ 67,399 $ 60,292 (in thousands) 201 7 201 6 Regulatory Assets: Unrecognized Prior Service Cost $ 40 $ 58 Unrecognized Actuarial Loss 3,229 2,890 Total Regulatory Assets $ 3,269 $ 2,948 Projected Benefit Obligation Liability – Net Amount Recognized $ (42,308 ) $ (37,335 ) Accumulated Other Comprehensive Loss: Unrecognized Prior Service Cost $ 98 $ 134 Unrecognized Actuarial Loss 9,024 5,915 Total Accumulated Other Comprehensive Loss $ 9,122 $ 6,049 (in thousands) 201 7 201 6 Regulatory Asset: Unrecognized Prior Service Cost $ -- $ (4 ) Unrecognized Net Actuarial Loss 18,927 13,586 Net Regulatory Asset $ 18,927 $ 13,582 Projected Benefit Obligation Liability – Net Amount Recognized $ (69,774 ) $ (62,571 ) Accumulated Other Comprehensive (Income) Loss: Unrecognized Prior Service Cost $ -- $ 4 Unrecognized Net Actuarial Gain (111 ) (171 ) Accumulated Other Comprehensive Income $ (111 ) $ (167 ) |
Schedule of Net Funded Status [Table Text Block] | (in thousands) 201 7 201 6 Accumulated Benefit Obligation $ (316,095 ) $ (281,414 ) Projected Benefit Obligation $ (352,718 ) $ (314,637 ) Fair Value of Plan Assets 285,319 254,345 Funded Status $ (67,399 ) $ (60,292 ) |
Schedule of Changes in Projected Benefit Obligations and Changes in Plan Assets [Table Text Block] | (in thousands) 201 7 201 6 Reconciliation of Fair Value of Plan Assets: Fair Value of Plan Assets at January 1 $ 254,346 $ 233,639 Actual Return on Plan Assets 44,181 23,794 Discretionary Company Contributions -- 10,000 Benefit Payments (13,208 ) (13,088 ) Fair Value of Plan Assets at December 31 $ 285,319 $ 254,345 Estimated Asset Return 17.8 % 10.1 % Reconciliation of Projected Benefit Obligation: Projected Benefit Obligation at January 1 $ 314,637 $ 302,740 Service Cost 5,629 5,518 Interest Cost 14,139 14,195 Benefit Payments (13,208 ) (13,088 ) Actuarial Loss 31,521 5,272 Projected Benefit Obligation at December 31 $ 352,718 $ 314,637 (in thousands) 201 7 201 6 Reconciliation of Fair Value of Plan Assets: Fair Value of Plan Assets at January 1 $ -- $ -- Actual Return on Plan Assets -- -- Employer Contributions 1,175 1,188 Benefit Payments (1,175 ) (1,188 ) Fair Value of Plan Assets at December 31 $ -- $ -- Reconciliation of Projected Benefit Obligation: Projected Benefit Obligation at January 1 $ 37,335 $ 35,811 Service Cost 290 252 Interest Cost 1,686 1,667 Benefit Payments (1,175 ) (1,188 ) Plan Amendments -- -- Actuarial Loss 4,172 793 Projected Benefit Obligation at December 31 $ 42,308 $ 37,335 (in thousands) 201 7 201 6 Reconciliation of Fair Value of Plan Assets: Fair Value of Plan Assets at January 1 $ -- $ -- Actual Return on Plan Assets -- -- Company Contributions 3,290 2,825 Benefit Payments (Net of Medicare Part D Subsidy) (6,534 ) (5,908 ) Participant Premium Payments 3,244 3,083 Fair Value of Plan Assets at December 31 $ -- $ -- Reconciliation of Projected Benefit Obligation: Projected Benefit Obligation at January 1 $ 62,571 $ 48,730 Service Cost (Net of Medicare Part D Subsidy) 1,425 1,301 Interest Cost (Net of Medicare Part D Subsidy) 2,712 2,503 Benefit Payments (Net of Medicare Part D Subsidy) (6,534 ) (5,908 ) Participant Premium Payments 3,244 3,083 Actuarial Loss 6,356 12,862 Projected Benefit Obligation at December 31 $ 69,774 $ 62,571 Reconciliation of Accrued Postretirement Cost: Accrued Postretirement Cost at January 1 $ (49,156 ) $ (47,652 ) Expense (5,092 ) (4,329 ) Net Company Contribution 3,290 2,825 Accrued Postretirement Cost at December 31 $ (50,958 ) $ (49,156 ) |
Schedule of Assumptions Used [Table Text Block] | 201 7 201 6 Discount Rate 3.90 % 4.60 % Rate of Increase in Future Compensation Level : All participants – prior to 2017 3.00 % Participants to Age 39 4.50 % Participants Age 40 to Age 49 3.50 % Participants Age 50 and Older 2.75 % 201 7 2016 Discount Rate 3.85 % 4.60 % Rate of Increase in Future Compensation Level : 2.92 % 3.00 % 201 7 201 6 Discount Rate 3.81 % 4.46 % |
Schedule of Measurement Dates [Table Text Block] | Measurement Dates: 201 7 201 6 Net Periodic Pension Cost January 1, 2017 January 1, 2016 End of Year Benefit Obligations January 1, 2017 projected to December 31, 2017 January 1, 2016 projected to December 31, 2016 Market Value of Assets December 31, 2017 December 31, 2016 Measurement Dates: 201 7 201 6 Net Periodic Postretirement Benefit Cost January 1, 201 7 January 1, 201 6 End of Year Benefit Obligations January 1, 201 7 projected to December 31, 2017 January 1, 201 6 projected to December 31, 2016 |
Schedule of Expected Benefit Payments [Table Text Block] | (in thousands) 2018 2019 2020 2021 2022 Years 2023-2027 $ 14,384 $ 15,022 $ 15,666 $ 16,336 $ 17,041 $ 93,882 Years (in thousands) 2018 2019 2020 2021 2022 2023-2027 $ 1,568 $ 1,612 $ 1,576 $ 1,670 $ 2,255 $ 13,775 Years (in thousands) 2018 2019 2020 2021 2022 2023-2027 $ 3,986 $ 4,107 $ 4,133 $ 4,218 $ 4,327 $ 21,089 |
Schedule of Weighted Average Asset Allocation [Table Text Block] | Asset Allocation 201 7 201 6 Large Capitalization Equity Securities 23.5 % 21.4 % International Equity Securities 18.1 % 22.0 % Small and Mid-Capitalization Equity Securities 8.7 % 9.0 % Emerging Markets Equity Fund 5.5 % 0.0 % SEI Dynamic Asset Allocation Fund 5.0 % 5.4 % Equity Securities 60.8 % 57.8 % Fixed-Income Securities and Cash 35.2 % 34.3 % Other – SEI Energy Debt Collective Fund 4.0 % 4.1 % Other – SEI Special Situation Collective Investment Trust 0.0 % 3.8 % 100.0 % 100.0 % |
Schedule of Health Care Cost Trend Rates [Table Text Block] | 201 7 201 6 Healthcare Cost-Trend Rate Assumed for Next Year Pre-65 5.85 % 6.01 % Healthcare Cost-Trend Rate Assumed for Next Year Post-65 6.03 % 6.23 % Rate to Which the Cost-Trend Rate is Assumed to Decline 4.50 % 4.50 % Year the Rate Reaches the Ultimate Trend Rate 2038 2038 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block] | (in thousands) 1 Point Increase 1 Point Decrease Effect on the Postretirement Benefit Obligation $ 9,301 $ (7,692 ) Effect on Total of Service and Interest Cost $ 731 $ (601 ) Effect on Expense $ 1,589 $ (1,500 ) |
Pension Plan [Member] | |
Notes Tables | |
Schedule of Assumptions Used in Calculating Net Periodic Benefit Cost [Table Text Block] | 201 7 201 6 201 5 Discount Rate 4.60 % 4.76 % 4.35 % Long-Term Rate of Return on Plan Assets 7.50 % 7.75 % 7.75 % Rate of Increase in Future Compensation Level 3.00 % 3.13 % 3.13 % 201 7 201 6 201 5 Discount Rate 4.60 % 4.76 % 4.35 % Rate of Increase in Future Compensation Level 3.00 % 3.13 % 3.15 % 201 7 201 6 201 5 Discount Rate 4.46 % 4.57 % 4.20 % |
Schedule of Amounts in Regulatory Assets and Accumulated Other Comprehensive Income (Loss) to Be Recognized Over Next Fiscal Year [Table Text Block] | (in thousands) 201 8 Decrease in Regulatory Assets: Amortization of Unrecognized Prior Service Cost $ 16 Amortization of Unrecognized Actuarial Loss 7,142 Decrease in Accumulated Other Comprehensive Loss: Amortization of Unrecognized Prior Service Cost -- Amortization of Unrecognized Actuarial Loss 176 Total Estimated Amortization $ 7,334 (in thousands) 201 8 Decrease in Regulatory Assets: Amortization of Unrecognized Prior Service Cost $ 16 Amortization of Unrecognized Actuarial Loss 267 Decrease in Accumulated Other Comprehensive Loss: Amortization of Unrecognized Prior Service Cost 38 Amortization of Unrecognized Actuarial Loss 661 Total Estimated Amortization $ 982 (in thousands) 201 8 Decrease in Regulatory Assets: Amortization of Unrecognized Actuarial Loss $ 1,649 Decrease in Accumulated Other Comprehensive Loss: Amortization of Unrecognized Actuarial Loss 41 Total Estimated Amortization $ 1,690 |
Schedule of Target and Tactical Allocation of Plan Assets [Table Text Block] | Permitted Range Asset Class / PBO Funded Status <85% PBO >=85% PBO >=90% PBO >=95% PBO >=100% PBO Equity 39% - 59% 34% - 54% 24% - 44% 14% - 34% 0% - 20% Investment Grade Fixed Income 22% - 42% 30% - 50% 40% - 60% 53% - 73% 70% - 100% Below Investment Grade Fixed Income* 0% - 15% 0% - 15% 0% - 15% 0% - 10% 0% - 10% Other** 5% - 20% 5% - 20% 5% - 20% 0% - 15% 0% - 15% |
Schedule of Allocation of Plan Assets [Table Text Block] | (in thousands) 201 7 201 6 Assets in Level 1 of the Fair Value Hierarchy $ 273,999 $ 234,303 SEI Energy Debt Collective Fund at NAV 11,320 10,441 SEI Special Situation Collective Investment Trust Fund at NAV -- 9,601 Total Assets $ 285,319 $ 254,345 |
Fair Value Inputs, Assets, Quantitative Information [Table Text Block] | (in thousands) 201 7 201 6 Large Capitalization Equity Securities Mutual Fund $ 66,946 $ 54,483 International Equity Securities Mutual Funds 51,636 55,916 Small and Mid-Capitalization Equity Securities Mutual Fund 24,848 23,011 Emerging Markets Equity Fund 15,824 -- SEI Dynamic Asset Allocation Mutual Fund 14,371 13,622 Fixed Income Securities Mutual Funds 100,373 87,268 Cash Management – Money Market Fund 1 3 Total Assets $ 273,999 $ 234,303 |
Note 11 - Fair Value of Finan39
Note 11 - Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | December 31, 201 7 December 31, 201 6 (in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Cash and Cash Equivalents $ 16,216 $ 16,216 $ -- $ -- Short -Term Debt (112,371 ) (112,371 ) (42,883 ) (42,883 ) Long -Term Debt including Current Maturities (490,566 ) (543,691 ) (538,542 ) (583,835 ) |
Note 12 - Property, Plant and40
Note 12 - Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | (in thousands) December 31, 201 7 December 31, 201 6 Electric Plant in Service Production $ 897,732 $ 891,330 Transmission 500,352 410,679 Distribution 482,867 466,285 General 100,067 92,063 Electric Plant in Service 1,981,018 1,860,357 Construction Work in Progress 132,556 149,997 Total Gross Electric Plant 2,113,574 2,010,354 Less Accumulated Depreciation and Amortization 662,431 622,657 Net Electric Plant $ 1,451,143 $ 1,387,697 Nonelectric Operations Plant Equipment $ 160,263 $ 155,809 Buildings and Leasehold Improvements 52,280 51,323 Land 4,394 4,694 Nonelectric Operations Plant 216,937 211,826 Construction Work in Progress 8,511 3,264 Total Gross Nonelectric Plant 225,448 215,090 Less Accumulated Depreciation and Amortization 136,988 125,562 Net Nonelectric Operations Plant $ 88,460 $ 89,528 Net Plant $ 1,539,603 $ 1,477,225 |
Schedule of Useful Lives for Property, Plant Equipment [Table Text Block] | Service Life Range (years) Low High Electric Fixed Assets: Production Plant 9 82 Transmission Plant 42 70 Distribution Plant 5 68 General Plant 5 50 Nonelectric Fixed Assets: Equipment 3 12 Buildings and Leasehold Improvements 7 40 |
Note 13 - Income Taxes (Tables)
Note 13 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | (in thousands) 2017 2016 2015 Tax Computed at Federal Statutory Rate – Continuing Operations $ 34,707 $ 28,741 $ 28,081 Increases (Decreases) in Tax from: Federal P roduction Tax Credits (PTCs) (7,527 ) (7,175 ) (6,962 ) State Income Taxes Net of Federal Income Tax Expense 4,341 2,848 4,945 Section 199 Domestic Production Activities Deduction (1,471 ) (482 ) -- North Dakota Wind Tax Credit Amortization – Net of Federal Taxes (850 ) (850 ) (850 ) Corporate-owned Life Insurance (845 ) (680 ) (167 ) Excess Tax deduction - Equity Method Stock Awards (751 ) -- -- Employee Stock Ownership Plan Dividend Deduction (509 ) (537 ) (560 ) Allowance for Funds Used During Construction – Equity (322 ) (280 ) (426 ) Investment Tax Credit Amortization (164 ) (350 ) (571 ) Differences Reversing in Excess of Federal Rates 551 77 (1,143 ) Permanent and Other Differences (1,873 ) (1,231 ) (705 ) Effect of TCJA Tax Rate Reduction on Value of Net Deferred Tax Assets 1,756 -- -- Total Income Tax Expense – Continuing Operations $ 27,043 $ 20,081 $ 21,642 Income Tax Expense – Discontinued Operations – U.S. 213 138 2,991 Income Tax Expense – Continuing and Discontinued Operations $ 27,256 $ 20,219 $ 24,633 Overall Effective Federal, State and Foreign Income Tax Rate 27.3 % 24.5 % 29.3 % Income Tax Expense From Continuing Operations Includes the Following: Current Federal Income Taxes $ 4,581 $ 1,070 $ 211 Current State Income Taxes 1,154 1,211 1 Deferred Federal Income Taxes 25,320 23,586 23,050 Deferred State Income Taxes 4,529 2,589 6,763 Federal PTCs (7,527 ) (7,175 ) (6,962 ) North Dakota Wind Tax Credit Amortization – Net of Federal Taxes (850 ) (850 ) (850 ) Investment Tax Credit Amortization (164 ) (350 ) (571 ) Total $ 27,043 $ 20,081 $ 21,642 Total Income Before Income Taxes – Continuing and Discontinued Operations $ 99,695 $ 82,540 $ 83,978 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | (in thousands) 2017 2016 Deferred Tax Assets Federal PTCs $ 40,614 $ 43,433 Regulatory Tax Liability 39,465 2,422 North Dakota Wind Tax Credits 32,962 32,962 Benefit Liabilities 32,328 44,381 Retirement Benefits Liabilities 31,894 38,390 Cost of Removal 21,800 31,636 Differences Related to Property 6,499 9,876 Net Operating Loss Carryforward 3,203 3,865 Vacation Accrual 1,844 2,725 Investment Tax Credits 515 818 Other 668 5,371 Total Deferred Tax Assets $ 211,792 $ 215,879 Deferred Tax Liabilities Differences Related to Property $ (257,906 ) $ (371,761 ) Retirement Benefits Regulatory Asset (31,894 ) (38,390 ) Excess Tax over Book Pension (14,077 ) (15,509 ) North Dakota Wind Tax Credits (4,112 ) (3,654 ) Impact of State Net Operating Losses on Federal Taxes (673 ) (1,352 ) Other (3,631 ) (11,804 ) Total Deferred Tax Liabilities $ (312,293 ) $ (442,470 ) Deferred Income Taxes $ (100,501 ) $ (226,591 ) |
Schedule of Expiration of Operating Loss Carryforwards and Tax Credit Carryforwards [Table Text Block] | (in thousands) Amount 2022-2031 2032-2037 2038-2043 United States Federal Tax Credits $ 43,238 $ -- $ 43,238 $ -- State Net Operating Losses 3,203 2,339 864 -- State Tax Credits 33,568 376 231 32,961 |
Summary of Income Tax Contingencies [Table Text Block] | (in thousands) 2017 2016 2015 Balance on January 1 $ 891 $ 468 $ 222 Increases Related to Tax Positions for Prior Years 28 406 236 Decreases Related to Tax Positions for Prior Years (378 ) -- -- Increases Related to Tax Positions for Current Year 143 114 10 Uncertain Positions Resolved During Year -- (97 ) -- Balance on December 31 $ 684 $ 891 $ 468 |
Impacts of Tax Cuts an Jobs Act on Deferred Taxes and Regulatory Liabilities [Table Text Block] | (in thousands) Deferred Tax Liability Deferred Tax Regulatory Liability Balance on January 1 , 2017 $ 226,591 $ 818 Change due to 2017 Accruals and Amortizations 20,012 376 TCJA Deferred Tax Valuation Adjustment (109,072 ) 109,072 Tax Effect on TCJA Deferred Tax Valuation Adjustment (38,786 ) 38,786 TCJA Adjustment to Income Tax Expense 1,756 -- Balance on December 31 , 2017 $ 100,501 $ 149,052 |
Note 14 - Asset Retirement Ob42
Note 14 - Asset Retirement Obligations (AROs) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Change in Asset Retirement Obligation [Table Text Block] | (in thousands) 201 7 201 6 Asset Retirement Obligations Beginning Balance $ 8,341 $ 8,084 New Obligations Recognized -- -- Adjustments Due to Revisions in Cash Flow Estimates -- (103 ) Accrued Accretion 378 360 Settlements -- -- Ending Balance $ 8,719 $ 8,341 Asset Retirement Costs Capitalized Beginning Balance $ 2,983 $ 3,086 New Obligations Recognized -- -- Adjustments Due to Revisions in Cash Flow Estimates -- (103 ) Settlements -- -- Ending Balance $ 2,983 $ 2,983 Accumulated Depreciation – Asset Retirement Costs Capitalized Beginning Balance $ 795 $ 673 New Obligations Recognized -- -- Adjustments Due to Revisions in Cash Flow Estimates -- -- Depreciation Expense 120 122 Settlements -- -- Ending Balance $ 915 $ 795 Settlements None None Original Capitalized Asset Retirement Cost – Retired $ -- $ -- Accumulated Depreciation -- -- Asset Retirement Obligation $ -- $ -- Settlement Cost -- -- Gain on Settlement – Deferred Under Regulatory Accounting $ -- $ -- |
Note 15 - Discontinued Operat43
Note 15 - Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | For the Year Ended December 31, 2017 (in thousands) Foley AEV, Inc. Wind Tower Business Dock and Boatlift Business Intercompany Transactions Adjustment Total Operating Expenses $ 233 $ -- $ (460 ) $ (306 ) $ -- $ (533 ) Income Tax (Benefit) Expense (93 ) -- 184 122 -- 213 Net (Loss) Income $ (140 ) $ -- $ 276 $ 184 $ -- $ 320 For the Year Ended December 31, 2016 (in thousands) Foley AEV, Inc. Wind Tower Business Dock and Boatlift Business Intercompany Transactions Adjustment Total Operating Expenses $ 250 $ -- $ (757 ) $ 85 $ -- $ (422 ) Income Tax (Benefit) Expense (136 ) 5 303 (34 ) -- 138 Net (Loss) Income $ (114 ) $ (5 ) $ 454 $ (51 ) $ -- $ 284 For the Year Ended December 31, 2015 (in thousands) Foley AEV, Inc. Wind Tower Business Dock and Boatlift Business Intercompany Transactions Adjustment Total Operating Revenues $ 21,625 $ 2,998 $ -- $ -- $ -- $ 24,623 Operating Expenses 26,839 4,532 (462 ) 966 (240 ) 31,635 Asset Impairment Charge 1,000 -- -- -- -- 1,000 Interest Expense 177 27 -- -- (204 ) -- Other Income (Deductions) (42 ) 2 111 -- (2 ) 69 Income Tax (Benefit) Expense (921 ) (638 ) 229 (386 ) 177 (1,539 ) Net (Loss) Income from Operations (5,512 ) (921 ) 344 (580 ) 265 (6,404 ) (Loss) Gain on Disposition Before Taxes (204 ) 11,894 -- -- -- 11,690 Income Tax (Benefit) Expense on Disposition (227 ) 4,757 -- -- -- 4,530 Net Gain on Disposition 23 7,137 -- -- -- 7,160 Net (Loss) Income $ (5,489 ) $ 6,216 $ 344 $ (580 ) $ 265 $ 756 December 31, 2017 (in thousands) Wind Tower Business Dock and Boatlift Business Total Current Liabilities $ 130 $ 362 $ 492 Liabilities of Discontinued Operations $ 130 $ 362 $ 492 December 31, 201 6 (in thousands) Wind Tower Business Dock and Boatlift Business Total Current Liabilities $ 589 $ 774 $ 1,363 Liabilities of Discontinued Operations $ 589 $ 774 $ 1,363 |
Schedule of Product Warranty Liability [Table Text Block] | (in thousands) 201 7 201 6 Warranty Reserve Balance, January 1 $ 1,369 $ 2,103 Additional Provision for Warranties Made During the Year -- -- Settlements Made During the Year (112 ) (24 ) Decrease in Warranty Estimates for Prior Years (760 ) (710 ) Warranty Reserve Balance, December 31 $ 497 $ 1,369 |
Note 16 - Subsequent Events (Ta
Note 16 - Subsequent Events (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Subsequent Events [Table Text Block] | Award Shares/Units Granted Weighted Average Grant- Date Fair Value per Award Vesting Restricted Stock Units Granted 15,200 $ 41.325 25% per year through February 6, 2022 Stock Performance Awards Granted 54,000 $ 35.73 December 31, 20 20 |
Schedule 1 - Condensed Financ45
Schedule 1 - Condensed Financial Information of Registrant (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Notes Tables | |
Schedule of Related Party Transactions [Table Text Block] | As of December 31, 201 7: (in thousands) Accounts Receivable Interest Receivable Current Notes Receivable Long-Term Notes Receivable Accounts Payable Current Notes Payable Otter Tail Power Company $ 2,067 $ -- $ -- $ -- $ 6 $ -- Vinyltech Corporation 2 17 -- 11,500 -- 20,603 Northern Pipe Products, Inc. 4 8 -- 5,711 -- 8,186 BTD Manufacturing, Inc. -- 77 -- 52,000 -- 7,260 Wind Tower Business -- -- 1,461 -- -- -- Dock and Boatlift Business -- -- 291 -- -- -- T.O. Plastics, Inc. -- 15 -- 10,400 -- 13,446 Varistar Corporation -- -- -- -- -- 12,413 Otter Tail Assurance Limited 25 -- -- -- -- -- $ 2,098 $ 117 $ 1,752 $ 79,611 $ 6 $ 61,908 As of December 31, 2016: (in thousands) Accounts Receivable Interest Receivable Current Notes Receivable Long-Term Notes Receivable Accounts Payable Current Notes Payable Otter Tail Power Company $ 1,572 $ -- $ -- $ -- $ 10 $ -- Vinyltech Corporation 3 20 -- 11,500 -- 15,951 Northern Pipe Products, Inc. -- 10 -- 5,943 -- 6,560 BTD Manufacturing, Inc. -- 92 -- 52,000 -- 2,342 Wind Tower Business -- -- 1,441 -- -- -- Dock and Boatlift Business -- -- 230 -- -- -- T.O. Plastics, Inc. -- 19 -- 10,400 -- 12,378 Varistar Corporation 60 -- -- -- 5,948 1,288 Otter Tail Assurance Limited 71 -- -- -- -- -- $ 1,706 $ 141 $ 1,671 $ 79,843 $ 5,958 $ 38,519 |
Cash Dividends Paid to Parent by Subsidiaries [Table Text Block] | (in thousands) 2017 2016 2015 Cash Dividends Paid to Parent by Subsidiaries $ 50,571 $ 77,779 $ 46,188 |
Parent Company [Member] | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | SCHEDULE 1 - Condensed financial information of registrant Otter Tail Corporation (PARENT COMPANY) Condensed Balance Sheets, December 31 (in thousands) 2017 2016 Assets Current Assets Cash and Cash Equivalents $ 16,371 $ 6,218 Accounts Receivable -- 12 Accounts Receivable from Subsidiaries 2,098 1,706 Interest Receivable from Subsidiaries 117 141 Income Taxes Receivable -- 662 Notes Receivable from Subsidiaries 1,752 1,671 Other 1,130 936 Total Current Assets 21,468 11,346 Investments in Subsidiaries 724,613 692,723 Notes Receivable from Subsidiaries 79,611 79,843 Deferred Income Taxes 27,923 35,387 Other Assets 31,559 29,079 Total Assets $ 885,174 $ 848,378 Liabilities and Equity Current Liabilities Short-Term Debt $ -- $ -- Current Maturities of Long-Term Debt 186 231 Accounts Payable to Subsidiaries 6 5,958 Notes Payable to Subsidiaries 61,908 38,519 Other 7,799 5,838 Total Current Liabilities 69,899 50,546 Other Noncurrent Liabilities 38,319 32,556 Commitments and Contingencies Capitalization Long-Term Debt, Net of Current Maturities 80,064 95,172 Common Shareholder Equity 696,892 670,104 Total Capitalization 776,956 765,276 Total Liabilities and Equity $ 885,174 $ 848,378 See accompanying notes to condensed financial statements. |
Condensed Income Statement [Table Text Block] | Otter Tail Corporation (PARENT COMPANY) Condensed Statements of Income--For the Years Ended December 31 (in thousands) 2017 2016 2015 Operating Loss Revenue $ -- $ -- $ -- Operating Expenses 8,353 9,689 10,188 Operating Loss (8,353 ) (9,689 ) (10,188 ) Other Income (Expense) Equity Income in Earnings of Subsidiaries 82,715 67,047 66,067 Interest Charges (4,270 ) (6,817 ) (6,786 ) Interest Charges to Subsidiaries (244 ) (173 ) (193 ) Interest Income from Subsidiaries 2,848 4,897 4,786 Other Income 1,054 1,621 421 Total Other Income 82,103 66,575 64,295 Income Before Income Taxes 73,750 56,886 54,107 Income Tax Expense ( Benefit ) 1,311 (5,435 ) (5,238 ) Net Income $ 72,439 $ 62,321 $ 59,345 See accompanying notes to condensed financial statements. |
Condensed Cash Flow Statement [Table Text Block] | Otter Tail Corporation (PARENT COMPANY) Condensed Statements of Cash Flows--For the Years Ended December 31 (in thousands) 2017 2016 2015 Cash Flows from Operating Activities Net Cash Provided by Operating Activities $ 50,205 $ 83,296 $ 53,958 Cash Flows from Investing Activities Return of Capital (Investment in Subsidiaries) -- 9,912 (88,079 ) Debt Repaid by (Issued to) Subsidiaries 151 (3,309 ) (12,592 ) Cash (Used in) Provided by Investing Activities (121 ) 106 (11 ) Net Cash Provided by (Used in) Investing Activities 30 6,709 (100,682 ) Cash Flows from Financing Activities Change in Checks Written in Excess of Cash -- (428 ) 213 Net Short-Term (Repayments) Borrowings -- (59,666 ) 48,812 Borrowings from (Repayments to) Subsidiaries 23,389 (60,948 ) 32,249 Proceeds from Issuance of Common Stock 4,349 44,435 14,233 Common Stock Issuance Expenses -- (562 ) (451 ) Payments for Retirement of Capital Stock (1,799 ) (104 ) (1,596 ) Proceeds from the Issuance of Long-Term Debt -- 130,000 -- Short-Term and Long-Term Debt Issuance Expenses (158 ) (723 ) (312 ) Payments for Retirement of Long-Term Debt (15,231 ) (87,547 ) (201 ) Dividends Paid and Other Distributions (50,632 ) (48,244 ) (46,223 ) Net Cash (Used in) Provided by Financing Activities (40,082 ) (83,787 ) 46,724 Net Change in Cash and Cash Equivalents 10,153 6,218 -- Cash and Cash Equivalents at Beginning of Period 6,218 -- -- Cash and Cash Equivalents at End of Period $ 16,371 $ 6,218 $ -- See accompanying notes to condensed financial statements. |
Note 1 - Summary of Significa46
Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 36 Months Ended | |||
Jun. 30, 2016 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2017 | Sep. 01, 2015 | |
Standard Product Warranty Term | 1 year | ||||||
Standard Product Warranty Accrual, Decrease for Payments | $ 112,000 | $ 24,000 | $ 0 | ||||
Goodwill | 37,572,000 | 37,572,000 | $ 39,732,000 | 37,572,000 | |||
Capitalized Computer Software, Additions | 154,000 | ||||||
Pro Forma [Member] | Accounting Standards Update 2017-07 [Member] | |||||||
Postretirement Benefit Plan, Nonservice Costs Capitalized to Plant in Service During Fiscal Year | 800,000 | ||||||
Postretirement Benefit Plan, Nonservice Costs Included in Operating Expense During Fiscal Year | 5,600,000 | 5,100,000 | |||||
Foley Company [Member] | |||||||
Asset Impairment Charges | $ 1,000,000 | ||||||
Miller Welding And Iron Works, Inc. [Member] | Impulse Manufacturing, Inc. [Member] | |||||||
Goodwill | $ 8,200,000 | ||||||
Goodwill, Purchase Accounting Adjustments | $ (2,200,000) | ||||||
Coyote Creek Mining Company, L.L.C. (CCMC) [Member] | Otter Tail Power Company [Member] | Lignite Sales Agreement [Member] | |||||||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 57,100,000 | $ 57,100,000 | |||||
Variable Interest Entity Reporting Entity Involvement, Maximum Loss Exposure, Percentage | 35.00% | ||||||
Minimum [Member] | |||||||
Standard Product Warranty Term | 1 year | ||||||
Maximum [Member] | |||||||
Standard Product Warranty Term | 15 years | ||||||
Electric Plant [Member] | |||||||
Interest Costs Capitalized | $ 741,000 | $ 495,000 | $ 723,000 | ||||
Public Utilities, Property, Plant and Equipment, Disclosure of Composite Depreciation Rate for Plants in Service | 2.74% | 2.88% | 2.61% | ||||
Electric Plant [Member] | Minimum [Member] | |||||||
Property, Plant and Equipment, Useful Life | 5 years | ||||||
Electric Plant [Member] | Maximum [Member] | |||||||
Property, Plant and Equipment, Useful Life | 82 years | ||||||
Nonelectric Plant [Member] | |||||||
Interest Costs Capitalized | $ 0 | $ 0 | $ 0 | ||||
Nonelectric Plant [Member] | Minimum [Member] | |||||||
Property, Plant and Equipment, Useful Life | 3 years | ||||||
Nonelectric Plant [Member] | Maximum [Member] | |||||||
Property, Plant and Equipment, Useful Life | 40 years |
Note 1 - Summary of Significa47
Note 1 - Summary of Significant Accounting Policies - OTP's Ownership Interests in Jointly Owned Facilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | |||
Big Stone Plant [Member] | |||||
Electric Plant in Service | $ 329,942 | $ 328,809 | |||
Construction Work in Progress | 1,074 | 23 | |||
Accumulated Depreciation | (74,165) | (65,665) | |||
Net Plant | $ 256,851 | $ 263,167 | |||
Big Stone Plant [Member] | Otter Tail Power Company [Member] | |||||
Ownership Percentage | 53.90% | 53.90% | |||
Coyote Station [Member] | |||||
Electric Plant in Service | $ 177,721 | $ 176,315 | |||
Construction Work in Progress | 158 | 113 | |||
Accumulated Depreciation | (103,944) | (101,499) | |||
Net Plant | $ 73,935 | $ 74,929 | |||
Coyote Station [Member] | Otter Tail Power Company [Member] | |||||
Ownership Percentage | 35.00% | 35.00% | |||
Fargo Project [Member] | |||||
Electric Plant in Service | $ 78,192 | $ 78,298 | |||
Construction Work in Progress | |||||
Accumulated Depreciation | (4,667) | (3,511) | [1] | ||
Net Plant | $ 73,525 | $ 74,787 | |||
Fargo Project [Member] | Otter Tail Power Company [Member] | |||||
Ownership Percentage | 14.20% | 14.20% | |||
Brookings Project [Member] | |||||
Electric Plant in Service | [1] | $ 26,269 | $ 26,406 | ||
Construction Work in Progress | [1] | ||||
Accumulated Depreciation | (1,293) | [1] | (924) | ||
Net Plant | [1] | $ 24,976 | $ 25,482 | ||
Brookings Project [Member] | Otter Tail Power Company [Member] | |||||
Ownership Percentage | [1] | 4.80% | 4.80% | ||
Bemidji Project [Member] | |||||
Electric Plant in Service | $ 16,331 | $ 16,331 | |||
Construction Work in Progress | |||||
Accumulated Depreciation | (1,753) | (1,573) | |||
Net Plant | $ 14,578 | $ 14,758 | |||
Bemidji Project [Member] | Otter Tail Power Company [Member] | |||||
Ownership Percentage | 14.80% | 14.80% | |||
Big Stone South Brookings Multi Value Project [Member] | |||||
Electric Plant in Service | [1] | $ 53,225 | |||
Construction Work in Progress | [1] | 45,050 | |||
Accumulated Depreciation | [1] | (434) | |||
Net Plant | [1] | $ 52,791 | $ 45,050 | ||
Big Stone South Brookings Multi Value Project [Member] | Otter Tail Power Company [Member] | |||||
Ownership Percentage | [1] | 50.00% | 50.00% | ||
Big Stone South Ellendale Multi Value Project [Member] | |||||
Electric Plant in Service | [1] | ||||
Construction Work in Progress | [1] | 89,980 | 49,160 | ||
Accumulated Depreciation | [1] | ||||
Net Plant | [1] | $ 89,980 | $ 49,160 | ||
Big Stone South Ellendale Multi Value Project [Member] | Otter Tail Power Company [Member] | |||||
Ownership Percentage | [1] | 50.00% | 50.00% | ||
[1] | Midcontinent Independent System Operator, Inc. (MISO) Multi-Value Project (MVP) designation provides for a return on invested funds while under construction under the MISO Open Access Transmission, Energy and Operating Reserve Markets Tariff (MISO Tariff). |
Note 1 - Summary of Significa48
Note 1 - Summary of Significant Accounting Policies - Breakdown of Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Total Investments | $ 8,629 | $ 8,417 |
Economic Development Loan Pools [Member] | ||
Cost Method | 45 | 54 |
Other Cost Method [Member] | ||
Cost Method | 115 | 115 |
Partnerships [Member] | ||
Equity Method Partnerships | 24 | 23 |
Debt Securities [Member] | ||
Marketable Securities Classified as Available-for-Sale | 7,160 | 8,225 |
Equity Securities [Member] | ||
Marketable Securities Classified as Available-for-Sale | $ 1,285 |
Note 1 - Summary of Significa49
Note 1 - Summary of Significant Accounting Policies - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Inputs, Level 1 [Member] | ||
Total Assets | $ 2,108 | $ 849 |
Fair Value, Inputs, Level 1 [Member] | Equity Funds [Member] | ||
Investments | 1,285 | |
Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member] | ||
Investments | ||
Fair Value, Inputs, Level 1 [Member] | Government-backed and Government-sponsored Enterprises' Debt Securities [Member] | ||
Investments | ||
Fair Value, Inputs, Level 1 [Member] | Money Market and Mutual Funds [Member] | ||
Other Assets | 823 | 849 |
Fair Value, Inputs, Level 2 [Member] | ||
Total Assets | 7,160 | 8,225 |
Fair Value, Inputs, Level 2 [Member] | Equity Funds [Member] | ||
Investments | ||
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||
Investments | 5,373 | 5,280 |
Fair Value, Inputs, Level 2 [Member] | Government-backed and Government-sponsored Enterprises' Debt Securities [Member] | ||
Investments | 1,787 | $ 2,945 |
Fair Value, Inputs, Level 2 [Member] | Money Market and Mutual Funds [Member] | ||
Other Assets |
Note 1 - Summary of Significa50
Note 1 - Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finished Goods | $ 26,605 | $ 27,755 |
Work in Process | 14,222 | 11,754 |
Raw Material, Fuel and Supplies | 47,207 | 44,231 |
Total Inventories | $ 88,034 | $ 83,740 |
Note 1 - Summary of Significa51
Note 1 - Summary of Significant Accounting Policies - Summary of Changes to Goodwill by Business Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gross Balance | $ 37,572 | $ 39,732 | |
Accumulated Impairments | |||
Goodwill | $ 37,572 | 37,572 | 39,732 |
Adjustments to Goodwill | (2,160) | ||
Manufacturing [Member] | |||
Gross Balance | 18,270 | 20,430 | |
Accumulated Impairments | |||
Goodwill | 18,270 | 18,270 | 20,430 |
Adjustments to Goodwill | (2,160) | ||
Plastics [Member] | |||
Gross Balance | 19,302 | 19,302 | |
Accumulated Impairments | |||
Goodwill | 19,302 | 19,302 | $ 19,302 |
Adjustments to Goodwill |
Note 1 - Summary of Significa52
Note 1 - Summary of Significant Accounting Policies - Components of Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Amortizable Intangible Assets: | ||
Gross Carrying Amount | $ 23,235 | $ 23,081 |
Accumulated Amortization | 9,470 | 8,123 |
Net Carrying Amount | 13,765 | 14,958 |
Customer Relationships [Member] | ||
Amortizable Intangible Assets: | ||
Gross Carrying Amount | 22,491 | 22,491 |
Accumulated Amortization | 8,994 | 7,861 |
Net Carrying Amount | $ 13,497 | $ 14,630 |
Customer Relationships [Member] | Minimum [Member] | ||
Amortizable Intangible Assets: | ||
Remaining Amortization Periods (Month) | 2 years | 3 years |
Customer Relationships [Member] | Maximum [Member] | ||
Amortizable Intangible Assets: | ||
Remaining Amortization Periods (Month) | 17 years 240 days | 18 years 240 days |
Covenant Not to Compete [Member] | ||
Amortizable Intangible Assets: | ||
Gross Carrying Amount | $ 590 | $ 590 |
Accumulated Amortization | 459 | 262 |
Net Carrying Amount | $ 131 | $ 328 |
Remaining Amortization Periods (Month) | 240 days | 1 year 240 days |
Other Intangible Assets [Member] | ||
Amortizable Intangible Assets: | ||
Gross Carrying Amount | $ 154 | |
Accumulated Amortization | 17 | |
Net Carrying Amount | $ 137 | |
Remaining Amortization Periods (Month) | 2 years 240 days |
Note 1 - Summary of Significa53
Note 1 - Summary of Significant Accounting Policies - Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Amortization Expense – Intangible Assets | $ 1,347 | $ 1,436 | $ 1,127 |
Note 1 - Summary of Significa54
Note 1 - Summary of Significant Accounting Policies - Estimated Annual Amortization Expense for Intangible Assets (Details) $ in Thousands | Dec. 31, 2017USD ($) |
2,018 | $ 1,315 |
2,019 | 1,184 |
2,020 | 1,133 |
2,021 | 1,099 |
2,022 | $ 1,099 |
Note 1 - Summary of Significa55
Note 1 - Summary of Significant Accounting Policies - Supplemental Disclosure of Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Transactions Related to Capital Additions not Settled in Cash | $ 13,887 | $ 13,533 | |
Cash Paid (Received) During the Year for: | |||
Interest (net of amount capitalized) | 29,791 | 31,269 | $ 30,512 |
Income Taxes | $ 5,064 | $ (1,291) | $ 7,322 |
Note 2 - Business Combination56
Note 2 - Business Combinations, Dispositions and Segment Information (Details Textual) $ in Millions | Sep. 01, 2015USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Number of Reportable Segments | 3 | ||||
Sales Revenue, Segment [Member] | Customer Concentration Risk [Member] | Electric [Member] | |||||
Number of Customers | 1 | ||||
Concentration Risk, Percentage | 11.70% | ||||
Sales Revenue, Segment [Member] | Customer Concentration Risk [Member] | Manufacturing [Member] | Customer that Manufactures and Sells Recreational Vehicles [Member] | |||||
Number of Customers | 1 | ||||
Concentration Risk, Percentage | 24.30% | ||||
Sales Revenue, Segment [Member] | Customer Concentration Risk [Member] | Manufacturing [Member] | Customer that Manufactures and Sells Lawn and Garden Equipment [Member] | |||||
Number of Customers | 1 | ||||
Concentration Risk, Percentage | 12.00% | ||||
Sales Revenue, Segment [Member] | Customer Concentration Risk [Member] | Plastics [Member] | |||||
Number of Customers | 2 | ||||
Sales Revenue, Segment [Member] | Customer Concentration Risk [Member] | Plastics [Member] | Customer One [Member] | |||||
Concentration Risk, Percentage | 20.60% | ||||
Sales Revenue, Segment [Member] | Customer Concentration Risk [Member] | Plastics [Member] | Customer Two [Member] | |||||
Concentration Risk, Percentage | 17.80% | ||||
Sales Revenue, Net [Member] | UNITED STATES | |||||
Concentration Risk, Percentage | 98.20% | 98.60% | 97.10% | ||
BTD-Georgia [Member] | |||||
Payments to Acquire Businesses, Gross | $ 30.8 | $ 29.3 | |||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustments Related to Previous Period | $ 1.5 |
Note 2 - Business Combination57
Note 2 - Business Combinations, Dispositions and Segment Information - Allocation of the Purchase Price, BTD-Georgia Acquisition (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Dec. 31, 2015 |
Assets: | ||||
Goodwill | $ 37,572 | $ 37,572 | $ 39,732 | |
BTD-Georgia [Member] | ||||
Assets: | ||||
Current Assets | $ 4,906 | |||
Goodwill | 6,083 | |||
Other Intangible Assets | 6,270 | |||
Other Amortizable Assets | 1,380 | |||
Fixed Assets | 13,649 | |||
Total Assets | 32,288 | |||
Liabilities: | ||||
Current Liabilities | 2,971 | |||
Lease Obligation | 11 | |||
Total Liabilities | 2,982 | |||
Cash Paid | $ 29,306 |
Note 2 - Business Combination58
Note 2 - Business Combinations, Dispositions and Segment Information - Information on Continuing Operations for Business Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | $ 849,350 | $ 803,539 | $ 779,804 |
Cost of Products Sold | 316,562 | 295,222 | 295,032 |
Other Nonelectric Expenses | 43,240 | 40,264 | 40,021 |
Depreciation and Amortization | 72,545 | 73,445 | 60,363 |
Operating Income (Loss) | 126,134 | 111,099 | 109,214 |
Interest Charges | 29,604 | 31,886 | 31,160 |
Total | 27,043 | 20,081 | 21,642 |
Net Income (Loss) | 72,439 | 62,321 | 59,345 |
Capital Expenditures | 132,913 | 161,259 | 160,084 |
Assets | 2,004,278 | 1,912,385 | 1,818,683 |
Discontinued Operations [Member] | |||
Net Income (Loss) | 320 | 284 | 756 |
Corporate and Eliminations [Member] | |||
Interest Charges | 1,422 | 1,924 | 2,203 |
Operating Segments [Member] | Electric [Member] | |||
Revenues | 434,537 | 427,383 | 407,131 |
Depreciation and Amortization | 53,276 | 53,743 | 44,786 |
Operating Income (Loss) | 90,392 | 90,131 | 87,171 |
Interest Charges | 25,334 | 25,069 | 24,371 |
Total | 17,013 | 16,366 | 16,067 |
Net Income (Loss) | 49,446 | 49,829 | 48,370 |
Capital Expenditures | 118,444 | 149,648 | 135,572 |
Assets | 1,690,224 | 1,622,231 | 1,520,887 |
Operating Segments [Member] | Manufacturing [Member] | |||
Revenues | 229,738 | 221,289 | 215,011 |
Cost of Products Sold | 176,473 | 171,732 | 171,956 |
Other Nonelectric Expenses | 23,785 | 21,994 | 21,116 |
Depreciation and Amortization | 15,379 | 15,794 | 11,853 |
Operating Income (Loss) | 14,101 | 11,769 | 10,086 |
Interest Charges | 2,215 | 3,859 | 3,560 |
Total | 989 | 2,276 | 2,299 |
Net Income (Loss) | 11,050 | 5,694 | 4,247 |
Capital Expenditures | 9,916 | 8,429 | 20,295 |
Assets | 167,023 | 166,525 | 173,860 |
Operating Segments [Member] | Plastics [Member] | |||
Revenues | 185,132 | 154,901 | 157,758 |
Cost of Products Sold | 140,107 | 123,496 | 123,085 |
Other Nonelectric Expenses | 11,564 | 9,402 | 9,849 |
Depreciation and Amortization | 3,817 | 3,861 | 3,552 |
Operating Income (Loss) | 29,644 | 18,142 | 21,272 |
Interest Charges | 633 | 1,034 | 1,026 |
Total | 7,448 | 6,538 | 8,187 |
Net Income (Loss) | 21,696 | 10,628 | 12,108 |
Capital Expenditures | 4,432 | 3,085 | 4,206 |
Assets | 87,230 | 84,592 | 81,624 |
Intersegment Eliminations [Member] | |||
Revenues | (57) | (34) | (96) |
Cost of Products Sold | (18) | (6) | (9) |
Other Nonelectric Expenses | (39) | (28) | (87) |
Corporate, Non-Segment [Member] | |||
Other Nonelectric Expenses | 7,930 | 8,896 | 9,143 |
Depreciation and Amortization | 73 | 47 | 172 |
Operating Income (Loss) | (8,003) | (8,943) | (9,315) |
Total | 1,593 | (5,099) | (4,911) |
Net Income (Loss) | (10,073) | (4,114) | (6,136) |
Capital Expenditures | 121 | 97 | 11 |
Assets | $ 59,801 | $ 39,037 | $ 42,312 |
Note 3 - Rate and Regulatory 59
Note 3 - Rate and Regulatory Matters (Details Textual) | Nov. 17, 2017USD ($) | Sep. 28, 2016 | Feb. 12, 2015 | Nov. 06, 2014 | Oct. 01, 2014USD ($) | Nov. 12, 2013 | Jun. 01, 2011USD ($) | Jun. 30, 2016 | Dec. 22, 2015 | Dec. 31, 2018 | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 20, 2017USD ($) | Nov. 02, 2017USD ($) | Oct. 31, 2017USD ($) | May 25, 2016 | Apr. 16, 2016 | Apr. 15, 2016 | Nov. 25, 2009USD ($) | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | ||||||||||||||||||
Revenues | $ 849,350,000 | $ 803,539,000 | $ 779,804,000 | ||||||||||||||||||
Regulatory Liabilities | 242,581,000 | 85,727,000 | |||||||||||||||||||
Scenario, Forecast [Member] | |||||||||||||||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||||||||||||||||||||
Otter Tail Power Company [Member] | |||||||||||||||||||||
Increase in Reagent Costs and Emission Allowances | 2,200,000 | ||||||||||||||||||||
Otter Tail Power Company [Member] | Federal Energy Regulatory Commission [Member] | |||||||||||||||||||||
Current Return on Equity Used in Transmission Rates | 10.32% | 12.38% | 10.32% | ||||||||||||||||||
Proposed Reduced Return on Equity Used in Transmission Rates | 8.67% | 9.15% | 9.70% | ||||||||||||||||||
Additional Incentive Basis Point | 0.50% | ||||||||||||||||||||
Expected Percentage of Return on Equity | 10.82% | ||||||||||||||||||||
Regulatory Liabilities | $ 1,600,000 | 2,700,000 | |||||||||||||||||||
Otter Tail Power Company [Member] | Minnesota Public Utilities Commission [Member] | |||||||||||||||||||||
Percentage of Reagent Costs and Emission Allowances Shared | 50.00% | ||||||||||||||||||||
Otter Tail Power Company [Member] | Minnesota Public Utilities Commission [Member] | The 2016 General Rate Case [Member] | |||||||||||||||||||||
Estimated Interim Rate Refund | $ 9,000,000 | ||||||||||||||||||||
Otter Tail Power Company [Member] | Minnesota Public Utilities Commission [Member] | The 2016 General Rate Case [Member] | |||||||||||||||||||||
Percentage of Allowed Rate of Return on Rate Base | 7.5056% | 8.61% | |||||||||||||||||||
Percentage of Allowed Rate of Return on Equity | 9.41% | 10.74% | |||||||||||||||||||
Otter Tail Power Company [Member] | Minnesota Public Utilities Commission [Member] | Environmental Cost Recovery Rider [Member] | The 2016 General Rate Case [Member] | |||||||||||||||||||||
Revenues Collected Under Riders, Subject to Customer Refund | $ 900,000 | ||||||||||||||||||||
Otter Tail Power Company [Member] | Minnesota Public Utilities Commission [Member] | Transmission Cost Recovery Rider [Member] | The 2016 General Rate Case [Member] | |||||||||||||||||||||
Revenues Collected Under Riders, Subject to Customer Refund | $ 1,400,000 | ||||||||||||||||||||
Otter Tail Power Company [Member] | Minnesota Public Utilities Commission [Member] | ECR and TCR Riders [Member] | The 2016 General Rate Case [Member] | |||||||||||||||||||||
Revenues Collected Under Riders, Subject to Refund, Period of Refund | 1 year | ||||||||||||||||||||
Otter Tail Power Company [Member] | Minnesota Public Utilities Commission [Member] | Conservation Improvement Program [Member] | |||||||||||||||||||||
Utility Incentive Percentage in Next Rolling Twelve Months | 13.50% | ||||||||||||||||||||
Utility Incentive Percentage in Next Rolling Year Two | 12.00% | ||||||||||||||||||||
Utility Incentive Percentage in Next Rolling Year Three | 10.00% | ||||||||||||||||||||
Assumed Savings of Utility | 1.70% | ||||||||||||||||||||
Expected Rate of Financial Incentive Reduction | 50.00% | ||||||||||||||||||||
Amount Of Financial Incentive Requested | $ 2,600,000 | ||||||||||||||||||||
Financial Incentives Recognized During Period | $ 2,600,000 | ||||||||||||||||||||
Percentage Decrease in Energy Savings | 10.00% | ||||||||||||||||||||
Otter Tail Power Company [Member] | Minnesota Public Utilities Commission [Member] | Conservation Improvement Program [Member] | Fiscal Year 2016 [Member] | |||||||||||||||||||||
Amount Of Financial Incentive Requested | $ 5,000,000 | ||||||||||||||||||||
Otter Tail Power Company [Member] | Minnesota Public Utilities Commission [Member] | Conservation Improvement Program [Member] | Fiscal Year 2015 [Member] | |||||||||||||||||||||
Amount Of Financial Incentive Requested | $ 4,300,000 | ||||||||||||||||||||
Otter Tail Power Company [Member] | Minnesota Public Utilities Commission [Member] | Conservation Improvement Program [Member] | The 2016 General Rate Case [Member] | Minimum [Member] | |||||||||||||||||||||
Percentage of Operating Revenue from Service to Be Invested in Energy Conservation | 1.50% | ||||||||||||||||||||
Otter Tail Power Company [Member] | North Dakota Public Service Commission [Member] | |||||||||||||||||||||
Percentage of Reagent Costs and Emission Allowances Shared | 40.00% | ||||||||||||||||||||
Otter Tail Power Company [Member] | North Dakota Public Service Commission [Member] | The 2010 General Rate Case [Member] | |||||||||||||||||||||
Percentage of Allowed Rate of Return on Rate Base | 7.97% | 8.62% | |||||||||||||||||||
Percentage of Allowed Rate of Return on Equity | 10.30% | 10.75% | |||||||||||||||||||
General Rate Revenue Increase Requested | $ 12,800,000 | $ 13,100,000 | $ 3,600,000 | ||||||||||||||||||
Percentage of Increase in Base Rate Revenue Requested | 8.72% | 3.00% | |||||||||||||||||||
Otter Tail Power Company [Member] | South Dakota Public Utilities Commission [Member] | |||||||||||||||||||||
Percentage of Reagent Costs and Emission Allowances Shared | 10.00% | ||||||||||||||||||||
Otter Tail Power Company [Member] | South Dakota Public Utilities Commission [Member] | The 2010 General Rate Case [Member] | |||||||||||||||||||||
Public Utilities General Rate Revenue Increase Approved | $ 643,000 | ||||||||||||||||||||
Percentage of Increase in Base Rate Revenue Approved | 2.32% | ||||||||||||||||||||
Public Utilities Allowed Rate of Return on Rate Base Subsequent to Approval of Increase in Base Rate | 8.50% | ||||||||||||||||||||
Otter Tail Power Company [Member] | Minnesota [Member] | Environmental Cost Recovery Rider [Member] | |||||||||||||||||||||
Revenues | $ 8,148,000 | 12,443,000 | 10,238,000 | ||||||||||||||||||
Otter Tail Power Company [Member] | Minnesota [Member] | Environmental Cost Recovery Rider [Member] | The 2014 Annual Update [Member] | |||||||||||||||||||||
Revenues | $ 10,200,000 | 9,229,000 | [1] | ||||||||||||||||||
Otter Tail Power Company [Member] | Minnesota [Member] | Transmission Cost Recovery Rider [Member] | |||||||||||||||||||||
Revenues | 2,973,000 | $ 5,795,000 | $ 5,202,000 | ||||||||||||||||||
Otter Tail Power Company [Member] | Minnesota [Member] | Transmission Cost Recovery Rider [Member] | The 2014 Annual Update [Member] | |||||||||||||||||||||
Revenues | $ 8,388,000 | ||||||||||||||||||||
Otter Tail Power Company [Member] | Big Stone South - Ellendale MVP [Member] | Federal Energy Regulatory Commission [Member] | |||||||||||||||||||||
Expanded Capacity of Projects | 345 | ||||||||||||||||||||
Extended Distance of Transmission Line | 163 | ||||||||||||||||||||
Current Projected Cost | $ 90,000,000 | ||||||||||||||||||||
Percentage of Assets of Project | 100.00% | ||||||||||||||||||||
Otter Tail Power Company [Member] | Big Stone South - Brookings MVP [Member] | |||||||||||||||||||||
Expanded Capacity of Projects | 345 | ||||||||||||||||||||
Extended Distance of Transmission Line | 70 | ||||||||||||||||||||
Current Projected Cost | $ 72,700,000 | ||||||||||||||||||||
Percentage of Assets of Project | 100.00% | ||||||||||||||||||||
[1] | Amount approved for recovery over ten months through September 30, 2015. Initial 2014 annual update requirement was $10.2 million to be effective October 1, 2014. Due to delayed approval, the amount was reduced for revenues billed under the rider rate in effect from October 1, 2014 through November 30, 2014. |
Note 3 - Rate and Regulatory 60
Note 3 - Rate and Regulatory Matters - Summary of Interim Rate Information (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Apr. 14, 2016 |
Revenue Increase – Annualized based on Test Year Data, interim rate | $ 16,816 | |
Revenue Increase – Annualized based on Test Year Data, final rates | $ 10,471 | |
Revenue Percent Increase, interim rate | 9.56% | |
Revenue Percent Increase, final rates | 5.34% | |
Return on Rate Base, interim rate | 8.07% | |
Return on Rate Base, final rates | 7.5056% | |
Jurisdictional Rate Base based on Test Year Data, interim rate | $ 483,000 | |
Jurisdictional Rate Base based on Test Year Data, final rates | $ 471,000 | |
Return on Equity, interim rate | 10.40% | |
Return on Equity, final rates | 9.41% | |
Based on Equity to Total Capital of, interim rate | 52.50% | |
Based on Equity to Total Capital of, final rates | 52.50% | |
Debt to Total Capital, interim rate | 47.50% | |
Debt to Total Capital, final rates | 47.50% |
Note 3 - Rate and Regulatory 61
Note 3 - Rate and Regulatory Matters - Schedule of Interim Revenue (Details) $ in Thousands | 19 Months Ended |
Oct. 31, 2017USD ($) | |
Billed | $ 23,289 |
Accrued Refund | 8,779 |
Net Interim Revenue | 14,510 |
Interest on Refundable Amount | 265 |
Final Refund | $ 9,044 |
Note 3 - Rate and Regulatory 62
Note 3 - Rate and Regulatory Matters - Summary of Status of Updates for Previous Two Years for Various Rate Riders (Details) | Oct. 01, 2014USD ($) | Dec. 31, 2017USD ($)MWhkWh | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | ||
Annual Revenue | $ 849,350,000 | $ 803,539,000 | $ 779,804,000 | |||
Otter Tail Power Company [Member] | Minnesota [Member] | The 2013 Incentive and Cost Recovery [Member] | ||||||
A - Approval Date | Sep. 26, 2014 | |||||
Effective Date Requested or Approved | Oct. 1, 2014 | |||||
Annual Revenue | $ 8,862,000 | |||||
Rate (Kilowatt-Hour) | kWh | 0.00263 | |||||
Otter Tail Power Company [Member] | Minnesota [Member] | Conservation Improvement Program Costs and Incentives [Member] | ||||||
Annual Revenue | [1] | $ 9,225,000 | 12,920,000 | 10,724,000 | ||
Otter Tail Power Company [Member] | Minnesota [Member] | Conservation Improvement Program Costs and Incentives [Member] | The 2016 Incentive and Cost Recovery [Member] | ||||||
A - Approval Date | Sep. 15, 2017 | |||||
Effective Date Requested or Approved | Oct. 1, 2017 | |||||
Annual Revenue | $ 9,868,000 | |||||
Rate (Kilowatt-Hour) | kWh | 0.00536 | |||||
Otter Tail Power Company [Member] | Minnesota [Member] | Conservation Improvement Program Costs and Incentives [Member] | The 2015 Incentive and Cost Recovery [Member] | ||||||
A - Approval Date | Jul. 19, 2016 | |||||
Effective Date Requested or Approved | Oct. 1, 2016 | |||||
Annual Revenue | $ 8,590,000 | |||||
Rate (Kilowatt-Hour) | kWh | 0.00275 | |||||
Otter Tail Power Company [Member] | Minnesota [Member] | Conservation Improvement Program Costs and Incentives [Member] | The 2014 Incentive and Cost Recovery [Member] | ||||||
A - Approval Date | Jul. 10, 2015 | |||||
Effective Date Requested or Approved | Oct. 1, 2015 | |||||
Annual Revenue | $ 8,689,000 | |||||
Rate (Kilowatt-Hour) | kWh | 0.00287 | |||||
Otter Tail Power Company [Member] | Minnesota [Member] | Transmission Cost Recovery Rider [Member] | ||||||
Annual Revenue | $ 2,973,000 | 5,795,000 | 5,202,000 | |||
Otter Tail Power Company [Member] | Minnesota [Member] | Transmission Cost Recovery Rider [Member] | The 2017 Rate Reset [Member] | ||||||
A - Approval Date | [2] | Oct. 30, 2017 | ||||
Effective Date Requested or Approved | [2] | Nov. 1, 2017 | ||||
Annual Revenue | [2] | $ (3,311,000) | ||||
Rate | [2] | Various | ||||
Otter Tail Power Company [Member] | Minnesota [Member] | Transmission Cost Recovery Rider [Member] | The 2016 Annual Update [Member] | ||||||
A - Approval Date | Jul. 5, 2016 | |||||
Effective Date Requested or Approved | Sep. 1, 2016 | |||||
Annual Revenue | $ 4,736,000 | |||||
Rate | Various | |||||
Otter Tail Power Company [Member] | Minnesota [Member] | Transmission Cost Recovery Rider [Member] | The 2015 Annual Update [Member] | ||||||
A - Approval Date | Mar. 9, 2016 | |||||
Effective Date Requested or Approved | Apr. 1, 2016 | |||||
Annual Revenue | $ 7,203,000 | |||||
Rate | Various | |||||
Otter Tail Power Company [Member] | Minnesota [Member] | Transmission Cost Recovery Rider [Member] | The 2014 Annual Update [Member] | ||||||
A - Approval Date | Feb. 18, 2015 | |||||
Effective Date Requested or Approved | Mar. 1, 2015 | |||||
Annual Revenue | $ 8,388,000 | |||||
Rate | Various | |||||
Otter Tail Power Company [Member] | Minnesota [Member] | Transmission Cost Recovery Rider [Member] | The 2013 Annual Update [Member] | ||||||
A - Approval Date | Jun. 24, 2014 | |||||
Effective Date Requested or Approved | Mar. 1, 2014 | |||||
Annual Revenue | $ 2,066,000 | |||||
Rate | Various | |||||
Otter Tail Power Company [Member] | Minnesota [Member] | Environmental Cost Recovery Rider [Member] | ||||||
Annual Revenue | $ 8,148,000 | 12,443,000 | 10,238,000 | |||
Otter Tail Power Company [Member] | Minnesota [Member] | Environmental Cost Recovery Rider [Member] | The 2017 Rate Reset [Member] | ||||||
A - Approval Date | Oct. 30, 2017 | |||||
Effective Date Requested or Approved | Nov. 1, 2017 | |||||
Annual Revenue | $ (1,943,000) | |||||
Rate of base | (0.935%) | |||||
Otter Tail Power Company [Member] | Minnesota [Member] | Environmental Cost Recovery Rider [Member] | The 2016 Annual Update [Member] | ||||||
A - Approval Date | Jul. 5, 2016 | |||||
Effective Date Requested or Approved | Sep. 1, 2016 | |||||
Annual Revenue | $ 11,884,000 | |||||
Rate of base | 6.927% | |||||
Otter Tail Power Company [Member] | Minnesota [Member] | Environmental Cost Recovery Rider [Member] | The 2015 Annual Update [Member] | ||||||
A - Approval Date | Mar. 9, 2016 | |||||
Effective Date Requested or Approved | Oct. 1, 2015 | |||||
Annual Revenue | $ 12,104,000 | |||||
Rate of base | 7.006% | |||||
Otter Tail Power Company [Member] | Minnesota [Member] | Environmental Cost Recovery Rider [Member] | The 2014 Annual Update [Member] | ||||||
A - Approval Date | Nov. 26, 2014 | |||||
Effective Date Requested or Approved | Dec. 1, 2014 | |||||
Annual Revenue | $ 10,200,000 | $ 9,229,000 | [3] | |||
Rate of base | 7.006% | |||||
Otter Tail Power Company [Member] | North Dakota [Member] | Transmission Cost Recovery Rider [Member] | ||||||
Annual Revenue | $ 8,729,000 | 7,694,000 | 6,609,000 | |||
Otter Tail Power Company [Member] | North Dakota [Member] | Transmission Cost Recovery Rider [Member] | The 2016 Annual Update [Member] | ||||||
A - Approval Date | Dec. 14, 2016 | |||||
Effective Date Requested or Approved | Jan. 1, 2017 | |||||
Annual Revenue | $ 6,916,000 | |||||
Rate | Various | |||||
Otter Tail Power Company [Member] | North Dakota [Member] | Transmission Cost Recovery Rider [Member] | The 2015 Annual Update [Member] | ||||||
A - Approval Date | Dec. 16, 2015 | |||||
Effective Date Requested or Approved | Jan. 1, 2016 | |||||
Annual Revenue | $ 9,985,000 | |||||
Rate | Various | |||||
Otter Tail Power Company [Member] | North Dakota [Member] | Transmission Cost Recovery Rider [Member] | The 2014 Annual Update [Member] | ||||||
A - Approval Date | Dec. 17, 2014 | |||||
Effective Date Requested or Approved | Jan. 1, 2015 | |||||
Annual Revenue | $ 8,463,000 | |||||
Rate | Various | |||||
Otter Tail Power Company [Member] | North Dakota [Member] | Transmission Cost Recovery Rider [Member] | The 2017 Annual Update [Member] | ||||||
A - Approval Date | Nov. 29, 2017 | |||||
Effective Date Requested or Approved | Jan. 1, 2018 | |||||
Annual Revenue | $ 7,959,000 | |||||
Rate | Various | |||||
Otter Tail Power Company [Member] | North Dakota [Member] | Environmental Cost Recovery Rider [Member] | ||||||
Annual Revenue | $ 9,782,000 | 11,089,000 | 9,502,000 | |||
Otter Tail Power Company [Member] | North Dakota [Member] | Environmental Cost Recovery Rider [Member] | The 2017 Rate Reset [Member] | ||||||
A - Approval Date | Dec. 20, 2017 | |||||
Effective Date Requested or Approved | Jan. 1, 2018 | |||||
Annual Revenue | $ 8,537,000 | |||||
Rate of base | 6.629% | |||||
Otter Tail Power Company [Member] | North Dakota [Member] | Environmental Cost Recovery Rider [Member] | The 2016 Annual Update [Member] | ||||||
A - Approval Date | Jun. 22, 2016 | |||||
Effective Date Requested or Approved | Jul. 1, 2016 | |||||
Annual Revenue | $ 10,359,000 | |||||
Rate of base | 7.904% | |||||
Otter Tail Power Company [Member] | North Dakota [Member] | Environmental Cost Recovery Rider [Member] | The 2015 Annual Update [Member] | ||||||
A - Approval Date | Jun. 17, 2015 | |||||
Effective Date Requested or Approved | Jul. 1, 2015 | |||||
Annual Revenue | $ 12,249,000 | |||||
Rate of base | 9.193% | |||||
Otter Tail Power Company [Member] | North Dakota [Member] | Environmental Cost Recovery Rider [Member] | The 2014 Annual Update [Member] | ||||||
A - Approval Date | Jul. 10, 2014 | |||||
Effective Date Requested or Approved | Aug. 1, 2014 | |||||
Annual Revenue | $ 9,880,000 | |||||
Rate of base | 7.531% | |||||
Otter Tail Power Company [Member] | North Dakota [Member] | Environmental Cost Recovery Rider [Member] | The 2017 Annual Update [Member] | ||||||
A - Approval Date | Jul. 12, 2017 | |||||
Effective Date Requested or Approved | Aug. 1, 2017 | |||||
Annual Revenue | $ 9,917,000 | |||||
Rate of base | 7.633% | |||||
Otter Tail Power Company [Member] | North Dakota [Member] | Renewable Resource Adjustment [Member] | ||||||
Annual Revenue | $ 7,620,000 | 7,800,000 | 8,409,000 | |||
Otter Tail Power Company [Member] | North Dakota [Member] | Renewable Resource Adjustment [Member] | The 2017 Rate Reset [Member] | ||||||
A - Approval Date | Dec. 20, 2017 | |||||
Effective Date Requested or Approved | Jan. 1, 2018 | |||||
Annual Revenue | $ 9,989,000 | |||||
Rate of base | 7.756% | |||||
Otter Tail Power Company [Member] | North Dakota [Member] | Renewable Resource Adjustment [Member] | The 2016 Annual Update [Member] | ||||||
A - Approval Date | Mar. 15, 2017 | |||||
Effective Date Requested or Approved | Apr. 1, 2017 | |||||
Annual Revenue | $ 9,156,000 | |||||
Rate of base | 7.005% | |||||
Otter Tail Power Company [Member] | North Dakota [Member] | Renewable Resource Adjustment [Member] | The 2015 Annual Update [Member] | ||||||
A - Approval Date | Jun. 22, 2016 | |||||
Effective Date Requested or Approved | Jul. 1, 2016 | |||||
Annual Revenue | $ 9,262,000 | |||||
Rate of base | 7.573% | |||||
Otter Tail Power Company [Member] | North Dakota [Member] | Renewable Resource Adjustment [Member] | The 2014 Annual Update [Member] | ||||||
A - Approval Date | Mar. 25, 2015 | |||||
Effective Date Requested or Approved | Apr. 1, 2015 | |||||
Annual Revenue | $ 5,441,000 | |||||
Rate of base | 4.069% | |||||
Otter Tail Power Company [Member] | North Dakota [Member] | Renewable Resource Adjustment [Member] | The 2013 Annual Update [Member] | ||||||
A - Approval Date | Mar. 12, 2014 | |||||
Effective Date Requested or Approved | Apr. 1, 2014 | |||||
Annual Revenue | $ 8,068,000 | |||||
Rate (Kilowatt-Hour) | MWh | 0.00437 | |||||
Otter Tail Power Company [Member] | South Dakota [Member] | Conservation Improvement Program Costs and Incentives [Member] | ||||||
Annual Revenue | $ 598,000 | 468,000 | 583,000 | |||
Otter Tail Power Company [Member] | South Dakota [Member] | Transmission Cost Recovery Rider [Member] | ||||||
Annual Revenue | $ 1,843,000 | 1,820,000 | 1,290,000 | |||
Otter Tail Power Company [Member] | South Dakota [Member] | Transmission Cost Recovery Rider [Member] | The 2016 Annual Update [Member] | ||||||
A - Approval Date | Feb. 17, 2017 | |||||
Effective Date Requested or Approved | Mar. 1, 2017 | |||||
Annual Revenue | $ 2,053,000 | |||||
Rate | Various | |||||
Otter Tail Power Company [Member] | South Dakota [Member] | Transmission Cost Recovery Rider [Member] | The 2015 Annual Update [Member] | ||||||
A - Approval Date | Feb. 12, 2016 | |||||
Effective Date Requested or Approved | Mar. 1, 2016 | |||||
Annual Revenue | $ 1,895,000 | |||||
Rate | Various | |||||
Otter Tail Power Company [Member] | South Dakota [Member] | Transmission Cost Recovery Rider [Member] | The 2014 Annual Update [Member] | ||||||
A - Approval Date | Feb. 13, 2015 | |||||
Effective Date Requested or Approved | Mar. 1, 2015 | |||||
Annual Revenue | $ 1,538,000 | |||||
Rate | Various | |||||
Otter Tail Power Company [Member] | South Dakota [Member] | Transmission Cost Recovery Rider [Member] | The 2013 Annual Update [Member] | ||||||
A - Approval Date | Feb. 18, 2014 | |||||
Effective Date Requested or Approved | Mar. 1, 2014 | |||||
Annual Revenue | $ 1,349,000 | |||||
Rate | Various | |||||
Otter Tail Power Company [Member] | South Dakota [Member] | Transmission Cost Recovery Rider [Member] | The 2017 Annual Update [Member] | ||||||
Effective Date Requested or Approved | Mar. 1, 2018 | |||||
Annual Revenue | $ 1,779,000 | |||||
Rate | Various | |||||
R - Request Date | Nov. 1, 2017 | |||||
Otter Tail Power Company [Member] | South Dakota [Member] | Environmental Cost Recovery Rider [Member] | ||||||
Annual Revenue | $ 2,345,000 | $ 2,538,000 | $ 1,967,000 | |||
Otter Tail Power Company [Member] | South Dakota [Member] | Environmental Cost Recovery Rider [Member] | The 2016 Annual Update [Member] | ||||||
A - Approval Date | Oct. 26, 2016 | |||||
Effective Date Requested or Approved | Nov. 1, 2016 | |||||
Annual Revenue | $ 2,238,000 | |||||
Rate (Kilowatt-Hour) | kWh | 0.00536 | |||||
Otter Tail Power Company [Member] | South Dakota [Member] | Environmental Cost Recovery Rider [Member] | The 2015 Annual Update [Member] | ||||||
A - Approval Date | Oct. 15, 2015 | |||||
Effective Date Requested or Approved | Nov. 1, 2015 | |||||
Annual Revenue | $ 2,728,000 | |||||
Rate (Kilowatt-Hour) | kWh | 0.00643 | |||||
Otter Tail Power Company [Member] | South Dakota [Member] | Environmental Cost Recovery Rider [Member] | The 2017 Annual Update [Member] | ||||||
A - Approval Date | Oct. 13, 2017 | |||||
Effective Date Requested or Approved | Nov. 1, 2017 | |||||
Annual Revenue | $ 2,082,000 | |||||
Rate (Kilowatt-Hour) | kWh | 0.00483 | |||||
Otter Tail Power Company [Member] | South Dakota [Member] | Environmental Cost Recovery Rider [Member] | The 2014 Initial Request [Member] | ||||||
A - Approval Date | Nov. 25, 2014 | |||||
Effective Date Requested or Approved | Dec. 1, 2014 | |||||
Annual Revenue | $ 1,995,000 | |||||
Rate (Kilowatt-Hour) | kWh | 0.00487 | |||||
[1] | Includes MNCIP costs recovered in base rates. | |||||
[2] | Approved on a provisional basis in the Minnesota general rate case docket and subject to revision in a separate docket. | |||||
[3] | Amount approved for recovery over ten months through September 30, 2015. Initial 2014 annual update requirement was $10.2 million to be effective October 1, 2014. Due to delayed approval, the amount was reduced for revenues billed under the rider rate in effect from October 1, 2014 through November 30, 2014. |
Note 3 - Rate and Regulatory 63
Note 3 - Rate and Regulatory Matters - Summary of Revenues Recorded Under Rate Riders (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Revenues recorded under rate riders | $ 849,350 | $ 803,539 | $ 779,804 | |
Otter Tail Power Company [Member] | Minnesota [Member] | Conservation Improvement Program Costs and Incentives [Member] | ||||
Revenues recorded under rate riders | [1] | 9,225 | 12,920 | 10,724 |
Otter Tail Power Company [Member] | Minnesota [Member] | Transmission Cost Recovery Rider [Member] | ||||
Revenues recorded under rate riders | 2,973 | 5,795 | 5,202 | |
Otter Tail Power Company [Member] | Minnesota [Member] | Environmental Cost Recovery Rider [Member] | ||||
Revenues recorded under rate riders | 8,148 | 12,443 | 10,238 | |
Otter Tail Power Company [Member] | North Dakota [Member] | Transmission Cost Recovery Rider [Member] | ||||
Revenues recorded under rate riders | 8,729 | 7,694 | 6,609 | |
Otter Tail Power Company [Member] | North Dakota [Member] | Environmental Cost Recovery Rider [Member] | ||||
Revenues recorded under rate riders | 9,782 | 11,089 | 9,502 | |
Otter Tail Power Company [Member] | North Dakota [Member] | Renewable Resource Adjustment [Member] | ||||
Revenues recorded under rate riders | 7,620 | 7,800 | 8,409 | |
Otter Tail Power Company [Member] | South Dakota [Member] | Conservation Improvement Program Costs and Incentives [Member] | ||||
Revenues recorded under rate riders | 598 | 468 | 583 | |
Otter Tail Power Company [Member] | South Dakota [Member] | Transmission Cost Recovery Rider [Member] | ||||
Revenues recorded under rate riders | 1,843 | 1,820 | 1,290 | |
Otter Tail Power Company [Member] | South Dakota [Member] | Environmental Cost Recovery Rider [Member] | ||||
Revenues recorded under rate riders | $ 2,345 | $ 2,538 | $ 1,967 | |
[1] | Includes MNCIP costs recovered in base rates. |
Note 4 - Regulatory Assets an64
Note 4 - Regulatory Assets and Liabilities (Details Textual) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Reacquisition Premiums [Member] | |
Regulatory Noncurrent Asset, Remaining Recovery Period | 14 years 270 days |
Note 4 - Regulatory Assets an65
Note 4 - Regulatory Assets and Liabilities - Amount of Regulatory Assets and Liabilities Recorded on Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Regulatory Assets - Current | $ 22,551 | $ 21,297 | |
Regulatory Assets - Long -Term | 129,576 | 132,094 | |
Regulatory Assets - Total | $ 152,127 | $ 153,391 | |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | |||
Regulatory Liabilities - Current | $ 9,688 | $ 3,294 | |
Regulatory Liabilities - Long -Term | 232,893 | 82,433 | |
Regulatory Liabilities | $ 242,581 | $ 85,727 | |
Regulatory Liabilities - Remaining Recovery/Refund Period (Month) | |||
Net Regulatory Asset Position - Current | $ 12,863 | $ 18,003 | |
Net Regulatory Asset Position - Long-Term | (103,317) | 49,661 | |
Net Regulatory Asset/(Liability) Position | (90,454) | 67,664 | |
Deferred Income Taxes [Member] | |||
Regulatory Liabilities - Current | |||
Regulatory Liabilities - Long -Term | 149,052 | 818 | |
Regulatory Liabilities | $ 149,052 | $ 818 | |
Regulatory Liabilities - Remaining Recovery/Refund Period | asset lives | asset lives | |
Accumulated Reserve for Estimated Removal Costs - Net of Salvage [Member] | |||
Regulatory Liabilities - Current | |||
Regulatory Liabilities - Long -Term | 83,100 | 80,404 | |
Regulatory Liabilities | $ 83,100 | $ 80,404 | |
Regulatory Liabilities - Remaining Recovery/Refund Period | asset lives | asset lives | |
Refundable Fuel Clause Adjustment Revenues [Member] | |||
Regulatory Liabilities - Current | $ 5,778 | ||
Regulatory Liabilities - Long -Term | |||
Regulatory Liabilities | $ 5,778 | ||
Regulatory Liabilities - Remaining Recovery/Refund Period (Month) | 1 year | ||
Minnesota Environmental Cost Recovery Rider Accrued Refund [Member] | |||
Regulatory Liabilities - Current | $ 1,667 | $ 139 | |
Regulatory Liabilities - Long -Term | |||
Regulatory Liabilities | $ 1,667 | $ 139 | |
Regulatory Liabilities - Remaining Recovery/Refund Period (Month) | 330 days | 1 year | |
Minnesota Transmission Cost Recovery Rider Accrued Refund [member] | |||
Regulatory Liabilities - Current | $ 802 | $ 757 | |
Regulatory Liabilities - Long -Term | 609 | ||
Regulatory Liabilities | $ 1,411 | $ 757 | |
Regulatory Liabilities - Remaining Recovery/Refund Period (Month) | 1 year 300 days | 1 year | |
Minnesota Renewable Resource Recovery Rider Accrued Refund [Member] | |||
Regulatory Liabilities - Current | $ 409 | ||
Regulatory Liabilities - Long -Term | |||
Regulatory Liabilities | $ 409 | ||
Regulatory Liabilities - Remaining Recovery/Refund Period (Month) | 1 year | ||
North Dakota Transmission Cost Recovery Rider Accrued Refund [Member] | |||
Regulatory Liabilities - Current | $ 349 | $ 1,381 | |
Regulatory Liabilities - Long -Term | 782 | ||
Regulatory Liabilities | $ 349 | $ 2,163 | |
Regulatory Liabilities - Remaining Recovery/Refund Period (Month) | 1 year | 2 years | |
Revenue for Rate Case Expenses Subject to Refund - Minnesota [Member] | |||
Regulatory Liabilities - Current | $ 208 | $ 711 | |
Regulatory Liabilities - Long -Term | 208 | ||
Regulatory Liabilities | $ 208 | $ 919 | |
Regulatory Liabilities - Remaining Recovery/Refund Period (Month) | 120 days | 1 year 120 days | |
South Dakota Environmental Cost Recovery Rider Accrued Refund [Member] | |||
Regulatory Liabilities - Current | $ 187 | $ 285 | |
Regulatory Liabilities - Long -Term | |||
Regulatory Liabilities | $ 187 | $ 285 | |
Regulatory Liabilities - Remaining Recovery/Refund Period (Month) | 1 year | 1 year | |
MISO Schedule 26/26A Transmission Cost Recovery Rider True-up [Member] | |||
Regulatory Liabilities - Current | $ 132 | ||
Regulatory Liabilities - Long -Term | 48 | 132 | |
Regulatory Liabilities | $ 180 | $ 132 | |
Regulatory Liabilities - Remaining Recovery/Refund Period (Month) | 2 years | 2 years | |
South Dakota Transmission Cost Recovery Rider Accrued Refund [Member] | |||
Regulatory Liabilities - Current | $ 151 | ||
Regulatory Liabilities - Long -Term | |||
Regulatory Liabilities | $ 151 | ||
Regulatory Liabilities - Remaining Recovery/Refund Period (Month) | 1 year | ||
Other [Member] | |||
Regulatory Liabilities - Current | $ 5 | $ 21 | |
Regulatory Liabilities - Long -Term | 84 | 89 | |
Regulatory Liabilities | $ 89 | $ 110 | |
Regulatory Liabilities - Remaining Recovery/Refund Period (Month) | 16 years | 17 years | |
Prior Service Costs and Actuarial Losses on Pensions and Other Postretirement Benefits [Member] | |||
Regulatory Assets - Current | [1] | $ 9,090 | $ 6,443 |
Regulatory Assets - Long -Term | [1] | 112,487 | 108,267 |
Regulatory Assets - Total | [1] | $ 121,577 | $ 114,710 |
Regulatory Assets - Remaining Recovery/Refund Period | [1] | see below | see below |
Conservation Improvement Program Costs and Incentives [Member] | |||
Regulatory Assets - Current | [2] | $ 7,385 | $ 4,836 |
Regulatory Assets - Long -Term | [2] | 2,774 | 5,158 |
Regulatory Assets - Total | [2] | $ 10,159 | $ 9,994 |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [2] | 1 year 270 days | 1 year 270 days |
Accumulated ARO Accretion/Depreciation Adjustment [Member] | |||
Regulatory Assets - Current | [1] | ||
Regulatory Assets - Long -Term | [1] | 6,651 | 6,153 |
Regulatory Assets - Total | [1] | $ 6,651 | $ 6,153 |
Regulatory Assets - Remaining Recovery/Refund Period | [1] | asset lives | asset lives |
Deferred Marked-to-Market Losses [Member] | |||
Regulatory Assets - Current | [1] | $ 4,063 | $ 4,063 |
Regulatory Assets - Long -Term | [1] | 2,405 | 6,467 |
Regulatory Assets - Total | [1] | $ 6,468 | $ 10,530 |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [1] | 3 years | 4 years |
Big Stone II Unrecovered Project Costs - Minnesota [Member] | |||
Regulatory Assets - Current | [1] | $ 650 | $ 778 |
Regulatory Assets - Long -Term | [1] | 1,636 | 2,087 |
Regulatory Assets - Total | [1] | $ 2,286 | $ 2,865 |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [1] | 3 years 120 days | 4 years 120 days |
MISO Schedule 26/26A Transmission Cost Recovery Rider True-up [Member] | |||
Regulatory Assets - Current | [2] | $ 333 | |
Regulatory Assets - Long -Term | [2] | 1,985 | |
Regulatory Assets - Total | [2] | $ 1,985 | $ 333 |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [2] | 2 years | 1 year |
Debt Reacquisition Premiums [Member] | |||
Regulatory Assets - Current | [1] | $ 254 | $ 325 |
Regulatory Assets - Long -Term | [1] | 960 | 1,214 |
Regulatory Assets - Total | [1] | $ 1,214 | $ 1,539 |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [1] | 14 years 270 days | 15 years 270 days |
Big Stone II Unrecovered Project Costs - South Dakota [Member] | |||
Regulatory Assets - Current | [2] | $ 100 | $ 100 |
Regulatory Assets - Long -Term | [2] | 442 | 543 |
Regulatory Assets - Total | [2] | $ 542 | $ 643 |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [2] | 5 years 150 days | 6 years 150 days |
North Dakota Renewable Resource Rider Accrued Revenues [Member] | |||
Regulatory Assets - Current | [2] | $ 206 | $ 1,319 |
Regulatory Assets - Long -Term | [2] | 236 | 482 |
Regulatory Assets - Total | [2] | $ 442 | $ 1,801 |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [2] | 1 year 90 days | 1 year 90 days |
North Dakota Deferred Rate Case Expenses Subject to Recovery [Member] | |||
Regulatory Assets - Current | [1] | $ 309 | |
Regulatory Assets - Long -Term | [1] | ||
Regulatory Assets - Total | [1] | $ 309 | |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [1] | 1 year | |
Minnesota Deferred Rate Case Expenses Subject to Recovery [Member] | |||
Regulatory Assets - Current | [1] | $ 267 | $ 1,082 |
Regulatory Assets - Long -Term | [1] | ||
Regulatory Assets - Total | [1] | $ 267 | $ 1,082 |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [1] | 120 days | 1 year |
North Dakota Environmental Cost Recovery Rider Accrued Revenues [Member] | |||
Regulatory Assets - Current | [2] | $ 152 | $ 113 |
Regulatory Assets - Long -Term | [2] | ||
Regulatory Assets - Total | [2] | $ 152 | $ 113 |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [2] | 1 year | 1 year |
Deferred Income Taxes [Member] | |||
Regulatory Assets - Current | [1] | ||
Regulatory Assets - Long -Term | [1] | 1,014 | |
Regulatory Assets - Total | [1] | $ 1,014 | |
Regulatory Assets - Remaining Recovery/Refund Period | [1] | asset lives | |
Minnesota Energy Intensive Trade Exposed Rider Accrued Revenues [Member] | |||
Regulatory Assets - Current | [2] | $ 75 | |
Regulatory Assets - Long -Term | [2] | ||
Regulatory Assets - Total | [2] | $ 75 | |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [2] | 1 year | |
Recoverable Fuel and Purchased Power Costs [Member] | |||
Regulatory Assets - Current | [1] | $ 1,798 | |
Regulatory Assets - Long -Term | [1] | ||
Regulatory Assets - Total | [1] | $ 1,798 | |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [1] | 1 year | |
Minnesota Renewable Resource Rider Accrued Revenues [Member] | |||
Regulatory Assets - Current | [2] | $ 34 | |
Regulatory Assets - Long -Term | [2] | ||
Regulatory Assets - Total | [2] | $ 34 | |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [2] | 270 days | |
North Dakota Transmission Cost Recovery Rider Accrued Revenues [Member] | |||
Regulatory Assets - Current | [2] | ||
Regulatory Assets - Long -Term | [2] | 568 | |
Regulatory Assets - Total | [2] | $ 568 | |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [2] | 2 years | |
South Dakota Transmission Cost Recovery Rider Accrued Revenues [Member] | |||
Regulatory Assets - Current | [2] | $ 73 | |
Regulatory Assets - Long -Term | [2] | 141 | |
Regulatory Assets - Total | [2] | $ 214 | |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [2] | 1 year 60 days | |
[1] | Costs subject to recovery without a rate of return. | ||
[2] | Amount eligible for recovery under an alternative revenue program which includes an incentive or rate of return. |
Note 5 - Common Shares and Ea66
Note 5 - Common Shares and Earnings Per Share (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Jan. 01, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 13, 2015 | May 11, 2015 | Apr. 16, 2012 | Apr. 15, 2012 |
Stock Issued During Period, Shares for Cash Invested under Employee Stock Purchase Plan | 5,284 | |||||||
Maximum per Share Differences Between Basic and Diluted Earnings per Share in Total or from Continuing or Discontinued Operations | $ 0.014 | $ 0.014 | $ 0.014 | |||||
The 2014 Stock Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,900,000 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,244,353 | |||||||
The 1999 Employee Stock Purchase Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,400,000 | 1,400,000 | 900,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 374,624 | |||||||
Share-based Compensation Arrangements by Share-based Payment Award, Percentage of Market Price at Eligible Employees Granted Options to Purchase Shares | 100.00% | 85.00% | ||||||
Stock Issued During Period, Shares for Cash Invested under Employee Stock Purchase Plan | 9,486 | 53,875 | 42,253 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Decrease in Number of Shares Available for Grant | 49 | |||||||
Dividend Reinvestment and Share Purchase Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 820,972 | |||||||
Stock Issued During Period, Shares for Cash Invested under Employee Stock Purchase Plan | 97,698 | 278,811 | 302,519 | |||||
Shelf Registration, Shares | 1,500,000 | |||||||
Distribution Agreement [Member] | ||||||||
Agreement to Sell Shares, Value | $ 75 |
Note 5 - Common Shares and Ea67
Note 5 - Common Shares and Earnings Per Share - Reconciliation of Company's Common Shares (Details) | 12 Months Ended |
Dec. 31, 2017shares | |
Common Shares Outstanding, beginning balance (in shares) | 39,348,136 |
Issuances: | |
Executive Stock Performance Awards (2014 shares earned) (in shares) | 89,291 |
Automatic Dividend Reinvestment and Share Purchase Plan: | |
Dividends Reinvested (in shares) | 68,235 |
Cash Invested (in shares) | 29,463 |
Vesting of Restricted Stock Units (in shares) | 22,225 |
Restricted Stock Issued to Directors (in shares) | 17,600 |
Employee Stock Ownership Plan (in shares) | 14,835 |
Employee Stock Purchase Plan: | |
Dividends Reinvested (in shares) | 9,566 |
Stock Issued During Period, Shares for Cash Invested under Employee Stock Purchase Plan | 5,284 |
Directors Deferred Compensation (in shares) | 560 |
Retirements: | |
Shares Withheld for Individual Income Tax Requirements (in shares) | (47,704) |
Common Shares Outstanding, ending balance (in shares) | 39,557,491 |
Note 5 - Common Shares and Ea68
Note 5 - Common Shares and Earnings Per Share - Reconciliation of Weighted Average Common Shares Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted Average Common Shares Outstanding – Basic (in shares) | 39,457,261 | 38,546,459 | 37,494,986 |
Plus Outstanding Share Awards net of Share Reductions for Unrecognized Stock-Based Compensation Expense and Excess Tax Benefits: | |||
Shares Expected to be Awarded for Stock Performance Awards Granted to Executive Officers based on Measurement Period-to-Date Performance (in shares) | 210,784 | 118,644 | 100,194 |
Underlying Shares Related to Nonvested Restricted Stock Units Granted to Employees (in shares) | 56,952 | 45,712 | 36,180 |
Nonvested Restricted Shares (in shares) | 20,380 | 16,778 | 22,848 |
Shares Expected to be Issued Under the Deferred Compensation Program for Directors (in shares) | 2,970 | 3,417 | 13,488 |
Potentially Dilutive Stock Options (in shares) | 330 | ||
Total Dilutive Shares (in shares) | 291,086 | 184,551 | 173,040 |
Weighted Average Common Shares Outstanding – Diluted (in shares) | 39,748,347 | 38,731,010 | 37,668,026 |
Note 6 - Share-based Payments69
Note 6 - Share-based Payments (Details Textual) - USD ($) | Apr. 10, 2017 | Feb. 02, 2017 | Jan. 01, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | May 31, 2014 | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2017 | Apr. 16, 2012 | Apr. 15, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 12,750 | |||||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 4,000,000 | $ 4,000,000 | $ 4,000,000 | $ 4,000,000 | ||||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years | |||||||||||
Restricted Stock [Member] | Director [Member] | ||||||||||||
Allocated Share-based Compensation Expense | $ 658,000 | $ 491,000 | $ 417,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 17,600 | 17,600 | 23,200 | 15,200 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 37.75 | $ 37.75 | $ 28.66 | $ 31.775 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||
Restricted Stock [Member] | Employees [Member] | ||||||||||||
Allocated Share-based Compensation Expense | $ 70,000 | $ 96,000 | $ 359,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | ||||||||||||
Restricted Stock Units (RSUs) [Member] | Employees [Member] | ||||||||||||
Allocated Share-based Compensation Expense | $ 331,000 | $ 307,000 | $ 304,000 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 10,995 | 17,220 | 15,650 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 33.28 | $ 24.54 | $ 25.89 | |||||||||
Stock Performance Awards [Member] | Executive Officer [Member] | ||||||||||||
Allocated Share-based Compensation Expense | $ 2,007,000 | $ 1,665,000 | $ 434,000 | |||||||||
Period Specified for Average Adjusted Return | 3 years | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ||||||||||||
Adjusted Return, Actual Percentage of Equity | 10.16% | |||||||||||
Adjusted Return, Targeted Percentage of Equity | 10.00% | |||||||||||
Payout as a Percent of Target | 136.00% | |||||||||||
Stock Performance Awards [Member] | Executive Officer [Member] | Granted in 2014 [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures | 8,900 | |||||||||||
Stock Performance Awards [Member] | Executive Officer [Member] | Granted in 2013 [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures | 4,900 | |||||||||||
Stock Performance Awards [Member] | Executive Officer [Member] | Performance Period 2014 to 2016 [Member] | ||||||||||||
Payout as a Percent of Target | 114.29% | |||||||||||
Stock Performance Awards [Member] | Chief Executive Officer [Member] | Performance Period 2014 to 2016 [Member] | ||||||||||||
Issue Price Per Share of Earned Shares Issued | $ 26.35 | |||||||||||
Value of Earned Shares Issued | $ 848,000 | |||||||||||
Stock Performance Awards [Member] | Chief Executive Officer [Member] | Performance Period 2013 to 2015 [Member] | ||||||||||||
Issue Price Per Share of Earned Shares Issued | $ 26.35 | |||||||||||
Value of Earned Shares Issued | $ 593,000 | |||||||||||
The 1999 Employee Stock Purchase Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Purchase Date | 15.00% | |||||||||||
Allocated Share-based Compensation Expense | $ 173,000 | $ 184,000 | ||||||||||
Share-based Compensation Arrangements by Share-based Payment Award, Percentage of Market Price at Eligible Employees Granted Options to Purchase Shares | 100.00% | 85.00% | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,400,000 | 1,400,000 | 1,400,000 | 1,400,000 | 1,400,000 | 900,000 | ||||||
The 1999 Stock Incentive Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 2,041,500 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 0 | 0 | 0 | 0 | 0 | 0 | ||||||
The 1999 Stock Incentive Plan [Member] | Restricted Stock [Member] | Employees [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | |||||||||||
The 2014 Stock Incentive Plan [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,900,000 | 1,900,000 | 1,900,000 | 1,900,000 | ||||||||
The 2014 Stock Incentive Plan [Member] | Restricted Stock [Member] | Executive Officer [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 15,900 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 37.65 | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 25.00% | |||||||||||
The 2014 Stock Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |||||||||||
The 2014 Stock Incentive Plan [Member] | Stock Performance Awards [Member] | Executive Officer [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 30.25 | |||||||||||
Period Specified for Average Adjusted Return | 3 years | |||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 59,500 | |||||||||||
Number of Trading Days | 20 days | |||||||||||
Targeted Aggregate Common Shares Award Return on Equity Component | 19,833 | |||||||||||
The 2014 Stock Incentive Plan [Member] | Stock Performance Awards [Member] | Executive Officer [Member] | Minimum [Member] | ||||||||||||
Percentage of Target Amount as Actual Payment | 0.00% | |||||||||||
The 2014 Stock Incentive Plan [Member] | Stock Performance Awards [Member] | Executive Officer [Member] | Maximum [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 89,250 | |||||||||||
Percentage of Target Amount as Actual Payment | 150.00% | |||||||||||
The 2014 Stock Incentive Plan [Member] | Stock Performance Awards [Member] | Executive Officer [Member] | Share-based Compensation Award, Tranche One [Member] | ||||||||||||
Targeted Aggregate Common Shares Award Total Shareholder Return Component | 39,667 | |||||||||||
The 2014 Stock Incentive Plan [Member] | Stock Performance Awards [Member] | One Grantee Exception [member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 36.27 |
Note 6 - Share-based Payments -
Note 6 - Share-based Payments - Summary of Stock Option Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Outstanding, Beginning of Year (in shares) | 12,750 | |
Outstanding, Beginning of Year, average exercise price (in dollars per share) | $ 24.93 | |
Exercised (in shares) | 10,250 | |
Exercised, average exercise price (in dollars per share) | $ 24.93 | |
Forfeited or Expired (in shares) | 2,500 | |
Forfeited or Expired, average exercise price (in dollars per share) | $ 24.93 | |
Outstanding, End of Year (in shares) | ||
Outstanding, End of Year, average exercise price (in dollars per share) | ||
Exercisable, End of Year (in shares) | ||
Exercisable, End of Year, average exercise price (in dollars per share) | ||
Cash Received for Options Exercised, average exercise price | $ 256,000 | |
Intrinsic Value of Options Exercised, average exercise price | $ 75,000 |
Note 6 - Share-based Payments71
Note 6 - Share-based Payments - Summary of Status of Directors' Restricted Stock Awards (Details) - Director [Member] - Restricted Stock [Member] - USD ($) | Apr. 10, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Nonvested, Beginning of Year (in shares) | 46,334 | 38,217 | 38,050 | |
Nonvested, Beginning of Year, weighted average grant-date fair value (in dollars per share) | $ 29.71 | $ 29.78 | $ 27.47 | |
Units granted (in shares) | 17,600 | 17,600 | 23,200 | 15,200 |
Grant-date fair value per award (in dollars per share) | $ 37.75 | $ 37.75 | $ 28.66 | $ 31.775 |
Vested (in shares) | 17,134 | 15,083 | 15,033 | |
Vested, weighted average grant-date fair value (in dollars per share) | $ 29.93 | $ 28.28 | $ 25.96 | |
Forfeited (in shares) | ||||
Forfeited, weighted average grant-date fair value (in dollars per share) | ||||
Nonvested, End of Year (in shares) | 46,800 | 46,334 | 38,217 | |
Nonvested, End of Year, weighted average grant-date fair value (in dollars per share) | $ 32.65 | $ 29.71 | $ 29.78 | |
Compensation Expense Recognized | $ 658,000 | $ 491,000 | $ 417,000 | |
Fair Value of Shares Vested in Year | $ 513,000 | $ 427,000 | $ 390,000 |
Note 6 - Share-based Payments72
Note 6 - Share-based Payments - Summary of Status of Employees' Restricted Stock Awards (Details) - Employees [Member] - Restricted Stock [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Nonvested, Beginning of Year (in shares) | 7,180 | 13,581 | 45,280 |
Nonvested, Beginning of Year, weighted average grant-date fair value (in dollars per share) | $ 29.72 | $ 28.56 | $ 27.46 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | |||
Vested (in shares) | 4,285 | 6,401 | 31,699 |
Vested, weighted average grant-date fair value (in dollars per share) | $ 29.94 | $ 27.25 | $ 27.09 |
Forfeited (in shares) | |||
Forfeited, weighted average grant-date fair value (in dollars per share) | |||
Nonvested, End of Year (in shares) | 2,895 | 7,180 | 13,581 |
Nonvested, End of Year, weighted average grant-date fair value (in dollars per share) | $ 29.41 | $ 29.72 | $ 28.56 |
Allocated Share-based Compensation Expense | $ 70,000 | $ 96,000 | $ 359,000 |
Fair Value of Awards Vested | $ 128,000 | $ 174,000 | $ 859,000 |
Note 6 - Share-based Payments73
Note 6 - Share-based Payments - Summary of Status of Executive Restricted Stock Awards (Details) - Executive Officers [Member] - Restricted Stock [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Nonvested, Beginning of Year (in shares) | 41,825 | 24,300 | |
Nonvested, Beginning of Year, weighted average grant-date fair value (in dollars per share) | $ 30.23 | $ 31.682 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 15,900 | 22,000 | 29,100 |
Grant-date fair value per award (in dollars per share) | $ 37.65 | $ 28.915 | $ 31.681 |
Units granted (in shares) | 15,900 | 22,000 | 29,100 |
Vested (in shares) | 9,975 | 4,475 | 4,800 |
Vested, weighted average grant-date fair value (in dollars per share) | $ 30.16 | $ 31.69 | $ 31.675 |
Vested (in shares) | 9,975 | 4,475 | 4,800 |
Forfeited (in shares) | |||
Nonvested, End of Year (in shares) | 47,750 | 41,825 | 24,300 |
Nonvested, End of Year, weighted average grant-date fair value (in dollars per share) | $ 32.71 | $ 30.23 | $ 31.682 |
Allocated Share-based Compensation Expense | $ 576,000 | $ 446,000 | $ 452,000 |
Fair Value of Awards Vested | $ 301,000 | $ 142,000 | $ 152,000 |
Note 6 - Share-based Payments74
Note 6 - Share-based Payments - Summary of Awards Granted to Key Non-executive Employees (Details) - The 2014 Stock Incentive Plan [Member] - Restricted Stock Units (RSUs) [Member] - Key Employees [Member] - April 8, 2021 [Member] | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Granted on April 10, 2017 [Member] | |
Vesting percentage | 100.00% |
Units granted (in shares) | shares | 9,995 |
Grant-date fair value per award (in dollars per share) | $ / shares | $ 32.78 |
Granted on September 25, 2017 [Member] | |
Vesting percentage | 100.00% |
Units granted (in shares) | shares | 1,000 |
Grant-date fair value per award (in dollars per share) | $ / shares | $ 38.29 |
Note 6 - Share-based Payments75
Note 6 - Share-based Payments - Summary of Status of Employees' Restricted Stock Unit Awards (Details) - Restricted Stock Units (RSUs) [Member] - Employees [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Nonvested, Beginning of Year (in shares) | 47,370 | 46,600 | 45,900 |
Nonvested, Beginning of Year, weighted average grant-date fair value (in dollars per share) | $ 25.19 | $ 23.75 | $ 21.82 |
Units granted (in shares) | 10,995 | 17,220 | 15,650 |
Grant-date fair value per award (in dollars per share) | $ 33.28 | $ 24.54 | $ 25.89 |
Vested (in shares) | 11,550 | 12,250 | 12,250 |
Vested, weighted average grant-date fair value (in dollars per share) | $ 25.30 | $ 19.03 | $ 19.46 |
Forfeited (in shares) | 375 | 4,200 | 2,700 |
Forfeited, weighted average grant-date fair value (in dollars per share) | $ 26.92 | $ 24.51 | $ 22.84 |
Nonvested, End of Year (in shares) | 46,440 | 47,370 | 46,600 |
Nonvested, End of Year, weighted average grant-date fair value (in dollars per share) | $ 27.07 | $ 25.19 | $ 23.75 |
Compensation Expense Recognized | $ 331,000 | $ 307,000 | $ 304,000 |
Fair Value of Shares Vested in Year | $ 292,000 | $ 233,000 | $ 238,000 |
Note 6 - Share-based Payments76
Note 6 - Share-based Payments - Summary of Stock Performance Awards Granted and Amounts Expensed (Details) - Executive Officer [Member] - Stock Performance Awards [Member] - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Maximum Shares Subject to Award (in shares) | |||
Target Shares (in shares) | |||
Compensation Expense Recognized | $ 2,007,000 | $ 1,665,000 | $ 434,000 |
Earned Shares (in shares) | 277,239 | ||
Performance Period 2017 To 2019 [Member] | |||
Maximum Shares Subject to Award (in shares) | 89,250 | ||
Target Shares (in shares) | 59,500 | ||
Compensation Expense Recognized | $ 854,000 | ||
Earned Shares (in shares) | 7,500 | ||
Performance Period 2016 To 2018 [Member] | |||
Maximum Shares Subject to Award (in shares) | 122,250 | ||
Target Shares (in shares) | 81,500 | ||
Compensation Expense Recognized | $ 580,000 | 798,000 | |
Earned Shares (in shares) | 11,100 | ||
Performance Period 2015 To 2017 [Member] | |||
Maximum Shares Subject to Award (in shares) | 126,450 | ||
Target Shares (in shares) | 84,300 | ||
Compensation Expense Recognized | $ 573,000 | 535,000 | 943,000 |
Earned Shares (in shares) | 114,648 | ||
Performance Period 2014 to 2016 [Member] | |||
Maximum Shares Subject to Award (in shares) | 159,450 | ||
Target Shares (in shares) | 106,300 | ||
Compensation Expense Recognized | 332,000 | (64,000) | |
Earned Shares (in shares) | 121,491 | ||
Performance Period 2013 to 2015 [Member] | |||
Maximum Shares Subject to Award (in shares) | 90,600 | ||
Target Shares (in shares) | 45,300 | ||
Compensation Expense Recognized | $ (445,000) | ||
Earned Shares (in shares) | 22,500 |
Note 7 - Retained Earnings an77
Note 7 - Retained Earnings and Dividend Restriction (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Capitalization, Long-term Debt and Equity | $ 1,187,272,000 | $ 1,175,445,000 |
Otter Tail Power Company [Member] | ||
Equity to Total Capitalization Ratio | 51.40% | |
Net Assets Restricted from Distribution | $ 471,000,000 | |
Capitalization, Long-term Debt and Equity | $ 1,178,024,000 | |
Otter Tail Power Company [Member] | Minimum [Member] | ||
Equity to Total Capitalization Ratio | 47.40% | |
Otter Tail Power Company [Member] | Maximum [Member] | ||
Equity to Total Capitalization Ratio | 58.00% |
Note 8 - Commitments and Cont78
Note 8 - Commitments and Contingencies of Continuing Operations (Details Textual) | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Operating Leases, Rent Expense, Net | $ 7,110,000 | $ 7,565,000 | $ 6,447,000 |
Loss Contingency, Estimate of Possible Loss | $ 1,000,000 | ||
Otter Tail Power Company [Member] | |||
Number of Utilities Participating in MISO RSG Proceeding Before FERC | 200 | ||
Otter Tail Power Company [Member] | Federal Energy Regulatory Commission [Member] | |||
Estimated Liability of Refund Obligation | $ 1,600,000 | $ 2,700,000 | |
Otter Tail Power Company [Member] | Coal Purchase Commitments 1 [Member] | |||
Contract Expiration Year | 2,041 | ||
Otter Tail Power Company [Member] | Coal Purchase Commitments 2 [Member] | |||
Contract Expiration Year | 2,019 | ||
Otter Tail Power Company [Member] | Construction Programs [Member] | |||
Contract Expiration Year | 2,019 | ||
Long-term Purchase Commitment, Amount | $ 41,000,000 | ||
Otter Tail Power Company [Member] | Coal Purchase Commitments 2 [Member] | |||
Contract Expiration Year | 2,040 | ||
T. O. Plastics, Inc. [Member] | Contract Expiring on December 31, 2021 [Member] | |||
Long-term Purchase Commitment, Amount | $ 6,700,000 |
Note 8 - Commitments and Cont79
Note 8 - Commitments and Contingencies of Continuing Operations - Amounts of Commitments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
2018, Operating Leases | $ 6,013 |
2019, Operating Leases | 5,618 |
2020, Operating Leases | 4,798 |
2021, Operating Leases | 2,675 |
2022, Operating Leases | 2,200 |
Beyond 2021, Operating Leases | 12,970 |
Total, Operating Leases | 34,274 |
Otter Tail Power Company [Member] | |
2018, Operating Leases | 1,838 |
2019, Operating Leases | 1,435 |
2020, Operating Leases | 1,436 |
2021, Operating Leases | 1,241 |
2022, Operating Leases | 761 |
Beyond 2021, Operating Leases | 8,644 |
Total, Operating Leases | 15,355 |
Nonelectric Companies [Member] | |
2018, Operating Leases | 4,175 |
2019, Operating Leases | 4,183 |
2020, Operating Leases | 3,362 |
2021, Operating Leases | 1,434 |
2022, Operating Leases | 1,439 |
Beyond 2021, Operating Leases | 4,326 |
Total, Operating Leases | 18,919 |
Construction Program and Other Commitments [Member] | Subsidiaries [Member] | |
2018, Commitments Other than Operating Leases | 29,218 |
2019, Commitments Other than Operating Leases | 15,159 |
2020, Commitments Other than Operating Leases | 1,680 |
2021, Commitments Other than Operating Leases | 1,680 |
2022, Commitments Other than Operating Leases | |
Beyond 2021, Commitments Other than Operating Leases | |
Total, Commitments Other than Operating Leases | 47,737 |
Capacity and Energy Requirements [Member] | Otter Tail Power Company [Member] | |
2018, Commitments Other than Operating Leases | 24,424 |
2019, Commitments Other than Operating Leases | 24,925 |
2020, Commitments Other than Operating Leases | 24,844 |
2021, Commitments Other than Operating Leases | 12,988 |
2022, Commitments Other than Operating Leases | 11,827 |
Beyond 2021, Commitments Other than Operating Leases | 154,310 |
Total, Commitments Other than Operating Leases | 253,318 |
Coal Purchase Commitments [Member] | Otter Tail Power Company [Member] | |
2018, Commitments Other than Operating Leases | 26,021 |
2019, Commitments Other than Operating Leases | 23,016 |
2020, Commitments Other than Operating Leases | 22,102 |
2021, Commitments Other than Operating Leases | 22,537 |
2022, Commitments Other than Operating Leases | 22,300 |
Beyond 2021, Commitments Other than Operating Leases | 527,520 |
Total, Commitments Other than Operating Leases | $ 643,496 |
Note 9 - Short-term and Long-80
Note 9 - Short-term and Long-term Borrowings (Details Textual) - USD ($) | Feb. 07, 2018 | Dec. 29, 2017 | Aug. 21, 2017 | Apr. 03, 2017 | Feb. 05, 2016 | Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 23, 2016 | Aug. 14, 2013 | Oct. 29, 2012 | Dec. 01, 2011 |
Short-term Debt, Maximum Amount Outstanding During Period | $ 112,371,000 | |||||||||||
Short-term Debt, Average Outstanding Amount | $ 71,696,000 | |||||||||||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 2.70% | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 300,000,000 | |||||||||||
Long-term Debt, Interest Rate | 2.54% | 2.54% | 2.54% | |||||||||
Otter Tail Corporation Credit Agreement [Member] | ||||||||||||
Short-term Debt, Maximum Amount Outstanding During Period | $ 15,169,000 | |||||||||||
Short-term Debt, Average Outstanding Amount | $ 2,305,000 | |||||||||||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 2.30% | 2.80% | 2.30% | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 130,000,000 | |||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | |||||||||||
Otter Tail Corporation Credit Agreement [Member] | Maximum [Member] | ||||||||||||
Debt to Total Capitalization Ratio | 0.6 | |||||||||||
Otter Tail Corporation Credit Agreement [Member] | Minimum [Member] | ||||||||||||
Interest and Dividend Coverage Ratio | 1.5 | |||||||||||
Otter Tail Corporation Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||||||
Otter Tail Corporation Credit Agreement [Member] | Unsecured Revolving Credit Facility [Member] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 130,000,000 | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity, Subject to Conditions | $ 250,000,000 | |||||||||||
Reduced Line of Credit Facility, Borrowing Capacity by Outstanding Letters of Credit | 40,000,000 | |||||||||||
OTP Credit Agreement [Member] | ||||||||||||
Short-term Debt, Maximum Amount Outstanding During Period | $ 112,371,000 | |||||||||||
Short-term Debt, Average Outstanding Amount | $ 69,391,000 | |||||||||||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 1.80% | 2.40% | 1.80% | |||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 170,000,000 | |||||||||||
Line of Credit Facility, Maximum Amount Outstanding During Period, by Outstanding Letters of Credit | $ 50,000,000 | |||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | |||||||||||
OTP Credit Agreement [Member] | Maximum [Member] | ||||||||||||
Debt to Total Capitalization Ratio | 0.6 | |||||||||||
OTP Credit Agreement [Member] | Subsequent Event [Member] | ||||||||||||
Repayments of Debt | $ 100,000,000 | |||||||||||
OTP Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | 1.25% | ||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | LIBOR | ||||||||||
OTP Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 170,000,000 | |||||||||||
Line of Credit Facility, Maximum Borrowing Capacity, Subject to Conditions | $ 250,000,000 | |||||||||||
Series 2018 A senior Unsecured Notes Due February 7, 2048 [Member] | Otter Tail Power Company [Member] | ||||||||||||
Debt Instrument, Face Amount | $ 100,000,000 | |||||||||||
Series 2018 A senior Unsecured Notes Due February 7, 2048 [Member] | Otter Tail Power Company [Member] | Subsequent Event [Member] | ||||||||||||
Long-term Debt, Interest Rate | 4.07% | |||||||||||
The 2018 Note Purchase Agreement [Member] | Subsequent Event [Member] | ||||||||||||
Debt Instrument, Prepayment, Minimum Percentage of Aggregate Principal Amount | 10.00% | |||||||||||
Debt Instrument, Prepayment, Percentage of the Principal Amount Prepaid | 100.00% | |||||||||||
Debt Instrument, Percentage of Principal Amount to be Offered for Prepayment in the Event of a Change of Control | 100.00% | |||||||||||
The 3.55% Guaranteed Senior Notes, Due December 15, 2026 [Member] | ||||||||||||
Debt Instrument, Face Amount | $ 80,000,000 | |||||||||||
Long-term Debt, Interest Rate | 3.55% | 3.55% | 3.55% | 3.55% | ||||||||
Debt Instrument, Prepayment, Minimum Percentage of Aggregate Principal Amount | 10.00% | |||||||||||
Debt Instrument, Prepayment, Percentage of the Principal Amount Prepaid | 100.00% | |||||||||||
Debt Instrument, Percentage of Principal Amount to be Offered for Prepayment in the Event of a Change of Control | 100.00% | |||||||||||
The 9.000% Notes, due December 15, 2016 [Member] | ||||||||||||
Long-term Debt, Interest Rate | 9.00% | |||||||||||
Repayments of Debt | $ 52,330,000 | |||||||||||
February 2016 Term Loan Agreement [Member] | ||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.90% | |||||||||||
Repayments of Debt | $ 35,000,000 | $ 15,000,000 | ||||||||||
Debt Instrument, Interest Rate, Basis for Effective Rate | 30 day LIBOR plus 90 basis points | |||||||||||
Debt Instrument, Description of Variable Rate Basis | LIBOR | |||||||||||
February 2016 Term Loan Agreement [Member] | JP Morgan [Member] | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 50,000,000 | |||||||||||
Series A Senior Unsecured Notes due on February 27, 2029 [Member] | Otter Tail Power Company [Member] | ||||||||||||
Debt Instrument, Face Amount | $ 60,000,000 | |||||||||||
Long-term Debt, Interest Rate | 4.68% | |||||||||||
Series B Senior Unsecured Notes due on February 27, 2044 [Member] | Otter Tail Power Company [Member] | ||||||||||||
Debt Instrument, Face Amount | $ 90,000,000 | |||||||||||
Long-term Debt, Interest Rate | 5.47% | |||||||||||
Note Purchase Agreement 2013 [Member] | ||||||||||||
Debt Instrument, Prepayment, Minimum Percentage of Aggregate Principal Amount | 10.00% | |||||||||||
Debt Instrument, Prepayment, Percentage of the Principal Amount Prepaid | 100.00% | |||||||||||
Debt Instrument, Percentage of Principal Amount to be Offered for Prepayment in the Event of a Change of Control | 100.00% | |||||||||||
Priority Debt to Total Capitalization | 20.00% | |||||||||||
Priority Indebtedness Outstanding | $ 0 | |||||||||||
Interest-bearing Debt, Maximum Percentage of Total Capitalization | 60.00% | |||||||||||
Senior Unsecured Notes 4.63%, Due December 1, 2021 [Member] | ||||||||||||
Long-term Debt, Interest Rate | 4.63% | 4.63% | 4.63% | |||||||||
Senior Unsecured Notes 4.63%, Due December 1, 2021 [Member] | Otter Tail Power Company [Member] | ||||||||||||
Debt Instrument, Face Amount | $ 140,000,000 | |||||||||||
Long-term Debt, Interest Rate | 4.63% | |||||||||||
The 2007 Notes [Member] | Otter Tail Power Company [Member] | ||||||||||||
Debt Instrument, Face Amount | $ 122,000,000 | |||||||||||
Senior Unsecured Notes 6.15%, Series B, Due August 20, 2022 [Member] | ||||||||||||
Long-term Debt, Interest Rate | 6.15% | 6.15% | 6.15% | |||||||||
Senior Unsecured Notes 6.15%, Series B, Due August 20, 2022 [Member] | Otter Tail Power Company [Member] | ||||||||||||
Debt Instrument, Face Amount | $ 30,000,000 | |||||||||||
Long-term Debt, Interest Rate | 6.15% | |||||||||||
Senior Unsecured Notes 6.37%, Series C, Due August 20, 2027 [Member] | ||||||||||||
Long-term Debt, Interest Rate | 6.37% | 6.37% | 6.37% | |||||||||
Senior Unsecured Notes 6.37%, Series C, Due August 20, 2027 [Member] | Otter Tail Power Company [Member] | ||||||||||||
Debt Instrument, Face Amount | $ 42,000,000 | |||||||||||
Long-term Debt, Interest Rate | 6.37% | |||||||||||
Senior Unsecured Notes 6.47%, Series D, Due August 20, 2037 [Member] | ||||||||||||
Long-term Debt, Interest Rate | 6.47% | 6.47% | 6.47% | |||||||||
Senior Unsecured Notes 6.47%, Series D, Due August 20, 2037 [Member] | Otter Tail Power Company [Member] | ||||||||||||
Debt Instrument, Face Amount | $ 50,000,000 | |||||||||||
Long-term Debt, Interest Rate | 6.47% | |||||||||||
Senior Unsecured Notes 5.95%, Series A, Due August 20, 2017 [Member] | ||||||||||||
Long-term Debt, Interest Rate | 5.95% | 5.95% | ||||||||||
Repayments of Debt | $ 33,000,000 | |||||||||||
The 2011 and 2007 Note Purchase Agreements [Member] | ||||||||||||
Priority Debt to Total Capitalization | 20.00% | |||||||||||
The 2011 and 2007 Note Purchase Agreements [Member] | Maximum [Member] | ||||||||||||
Debt to Total Capitalization Ratio | 0.6 | |||||||||||
The 2011 and 2007 Note Purchase Agreements [Member] | Minimum [Member] | ||||||||||||
Interest and Dividend Coverage Ratio | 1.5 | |||||||||||
The 2011 and 2007 Note Purchase Agreements [Member] | Otter Tail Power Company [Member] | ||||||||||||
Debt Instrument, Prepayment, Minimum Percentage of Aggregate Principal Amount | 10.00% | |||||||||||
Debt Instrument, Prepayment, Percentage of the Principal Amount Prepaid | 100.00% | |||||||||||
Debt Instrument, Percentage of Principal Amount to be Offered for Prepayment in the Event of a Change of Control | 100.00% | |||||||||||
The 2016 Note Purchase Agreement [Member] | ||||||||||||
Priority Debt to Total Capitalization | 10.00% | |||||||||||
Priority Indebtedness Outstanding | $ 0 |
Note 9 - Short-term and Long-81
Note 9 - Short-term and Long-term Borrowings - Status of Lines of Credit (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 300,000 | |
In Use | 112,371 | |
Restricted due to Outstanding Letters of Credit | 300 | |
Available | 187,329 | $ 257,067 |
Otter Tail Corporation Credit Agreement [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 130,000 | |
In Use | ||
Restricted due to Outstanding Letters of Credit | ||
Available | 130,000 | 130,000 |
OTP Credit Agreement [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 170,000 | |
In Use | 112,371 | |
Restricted due to Outstanding Letters of Credit | 300 | |
Available | $ 57,329 | $ 127,067 |
Note 9 - Short-term and Long-82
Note 9 - Short-term and Long-term Borrowings - Breakdown of Assignment of Consolidated Short-term and Long-term Debt Outstanding (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Short-Term Debt | $ 112,371 | $ 42,883 |
Long-Term Debt | 492,711 | 540,942 |
Less: Current Maturities net of Unamortized Debt Issuance Costs | 186 | 33,201 |
Unamortized Long-Term Debt Issuance Costs | 2,145 | 2,400 |
Total Long-Term Debt net of Unamortized Debt Issuance Costs | 490,380 | 505,341 |
Total Short-Term and Long-Term Debt (with current maturities) | 602,937 | 581,425 |
Term Loan, LIBOR Plus 0.90%, Due February 5, 2018 [Member] | ||
Long-Term Debt | 15,000 | |
The 3.55% Guaranteed Senior Notes, Due December 15, 2026 [Member] | ||
Long-Term Debt | 80,000 | 80,000 |
Senior Unsecured Notes 4.63%, Due December 1, 2021 [Member] | ||
Long-Term Debt | 140,000 | 140,000 |
Senior Unsecured Notes 5.95%, Series A, Due August 20, 2017 [Member] | ||
Long-Term Debt | 33,000 | |
Senior Unsecured Notes 6.15%, Series B, Due August 20, 2022 [Member] | ||
Long-Term Debt | 30,000 | 30,000 |
Senior Unsecured Notes 6.37%, Series C, Due August 20, 2027 [Member] | ||
Long-Term Debt | 42,000 | 42,000 |
Senior Unsecured Notes 4.68%, Series A, Due February 27, 2029 [Member] | ||
Long-Term Debt | 60,000 | 60,000 |
Senior Unsecured Notes 6.47%, Series D, Due August 20, 2037 [Member] | ||
Long-Term Debt | 50,000 | 50,000 |
Senior Unsecured Notes 5.47%, Series B, Due February 27, 2044 [Member] | ||
Long-Term Debt | 90,000 | 90,000 |
North Dakota Development Note, 3.95%, Due April 1, 2018 [member] | ||
Long-Term Debt | 27 | 106 |
Partnership in Assisting Community Expansion (PACE) Note, 2.54%, due March 18, 2021 [Member] | ||
Long-Term Debt | 684 | 836 |
Otter Tail Power Company [Member] | ||
Short-Term Debt | 112,371 | 42,883 |
Long-Term Debt | 412,000 | 445,000 |
Less: Current Maturities net of Unamortized Debt Issuance Costs | 32,970 | |
Unamortized Long-Term Debt Issuance Costs | 1,684 | 1,861 |
Total Long-Term Debt net of Unamortized Debt Issuance Costs | 410,316 | 410,169 |
Total Short-Term and Long-Term Debt (with current maturities) | 522,687 | 486,022 |
Otter Tail Power Company [Member] | Senior Unsecured Notes 4.63%, Due December 1, 2021 [Member] | ||
Long-Term Debt | 140,000 | 140,000 |
Otter Tail Power Company [Member] | Senior Unsecured Notes 5.95%, Series A, Due August 20, 2017 [Member] | ||
Long-Term Debt | 33,000 | |
Otter Tail Power Company [Member] | Senior Unsecured Notes 6.15%, Series B, Due August 20, 2022 [Member] | ||
Long-Term Debt | 30,000 | 30,000 |
Otter Tail Power Company [Member] | Senior Unsecured Notes 6.37%, Series C, Due August 20, 2027 [Member] | ||
Long-Term Debt | 42,000 | 42,000 |
Otter Tail Power Company [Member] | Senior Unsecured Notes 4.68%, Series A, Due February 27, 2029 [Member] | ||
Long-Term Debt | 60,000 | 60,000 |
Otter Tail Power Company [Member] | Senior Unsecured Notes 6.47%, Series D, Due August 20, 2037 [Member] | ||
Long-Term Debt | 50,000 | 50,000 |
Otter Tail Power Company [Member] | Senior Unsecured Notes 5.47%, Series B, Due February 27, 2044 [Member] | ||
Long-Term Debt | 90,000 | 90,000 |
Parent Company [Member] | ||
Long-Term Debt | 80,711 | 95,942 |
Less: Current Maturities net of Unamortized Debt Issuance Costs | 186 | 231 |
Unamortized Long-Term Debt Issuance Costs | 461 | 539 |
Total Long-Term Debt net of Unamortized Debt Issuance Costs | 80,064 | 95,172 |
Total Short-Term and Long-Term Debt (with current maturities) | 80,250 | 95,403 |
Parent Company [Member] | Term Loan, LIBOR Plus 0.90%, Due February 5, 2018 [Member] | ||
Long-Term Debt | 15,000 | |
Parent Company [Member] | The 3.55% Guaranteed Senior Notes, Due December 15, 2026 [Member] | ||
Long-Term Debt | 80,000 | 80,000 |
Parent Company [Member] | North Dakota Development Note, 3.95%, Due April 1, 2018 [member] | ||
Long-Term Debt | 27 | 106 |
Parent Company [Member] | Partnership in Assisting Community Expansion (PACE) Note, 2.54%, due March 18, 2021 [Member] | ||
Long-Term Debt | $ 684 | $ 836 |
Note 9 - Short-term and Long-83
Note 9 - Short-term and Long-term Borrowings - Breakdown of Assignment of Consolidated Short-term and Long-term Debt Outstanding (Details) (Parentheticals) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Sep. 23, 2016 | |
Long-term Debt, Interest Rate | 2.54% | 2.54% | |
Long-term Debt, Due Date | Mar. 18, 2021 | Mar. 18, 2021 | |
Term Loan, LIBOR Plus 0.90%, Due February 5, 2018 [Member] | |||
Long-term Debt, Interest Rate | 0.90% | 0.90% | |
Long-term Debt, Due Date | Feb. 5, 2018 | Feb. 5, 2018 | |
The 3.55% Guaranteed Senior Notes, Due December 15, 2026 [Member] | |||
Long-term Debt, Interest Rate | 3.55% | 3.55% | 3.55% |
Long-term Debt, Due Date | Dec. 15, 2026 | Dec. 15, 2026 | |
Senior Unsecured Notes 4.63%, Due December 1, 2021 [Member] | |||
Long-term Debt, Interest Rate | 4.63% | 4.63% | |
Long-term Debt, Due Date | Dec. 1, 2021 | Dec. 1, 2021 | |
Senior Unsecured Notes 5.95%, Series A, Due August 20, 2017 [Member] | |||
Long-term Debt, Interest Rate | 5.95% | ||
Long-term Debt, Due Date | Aug. 20, 2017 | ||
Senior Unsecured Notes 6.15%, Series B, Due August 20, 2022 [Member] | |||
Long-term Debt, Interest Rate | 6.15% | 6.15% | |
Long-term Debt, Due Date | Aug. 20, 2022 | Aug. 20, 2022 | |
Senior Unsecured Notes 6.37%, Series C, Due August 20, 2027 [Member] | |||
Long-term Debt, Interest Rate | 6.37% | 6.37% | |
Long-term Debt, Due Date | Aug. 20, 2027 | Aug. 20, 2027 | |
Senior Unsecured Notes 4.68%, Series A, Due February 27, 2029 [Member] | |||
Long-term Debt, Interest Rate | 4.68% | 4.68% | |
Long-term Debt, Due Date | Feb. 27, 2029 | Feb. 27, 2029 | |
Senior Unsecured Notes 6.47%, Series D, Due August 20, 2037 [Member] | |||
Long-term Debt, Interest Rate | 6.47% | 6.47% | |
Long-term Debt, Due Date | Aug. 20, 2037 | Aug. 20, 2037 | |
Senior Unsecured Notes 5.47%, Series B, Due February 27, 2044 [Member] | |||
Long-term Debt, Interest Rate | 5.47% | 5.47% | |
Long-term Debt, Due Date | Feb. 27, 2044 | Feb. 27, 2044 | |
North Dakota Development Note, 3.95%, Due April 1, 2018 [member] | |||
Long-term Debt, Interest Rate | 3.95% | 3.95% | |
Long-term Debt, Due Date | Apr. 1, 2018 | Apr. 1, 2018 |
Note 9 - Short-term and Long-84
Note 9 - Short-term and Long-term Borrowings - Aggregate Amounts of Maturities on Bonds Outstanding and Other Long-term Obligations (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Aggregate amounts of debt maturities in 2018 | $ 186 |
Aggregate amounts of debt maturities in 2019 | 172 |
Aggregate amounts of debt maturities in 2020 | 185 |
Aggregate amounts of debt maturities in 2021 | 140,167 |
Aggregate amounts of debt maturities in 2022 | $ 30,000 |
Note 10 - Pension Plan and Ot85
Note 10 - Pension Plan and Other Postretirement Benefits (Details Textual) | Feb. 19, 2018USD ($) | Jul. 30, 2015USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) |
Defined Contribution Plan, Cost | $ 4,211,000 | $ 3,877,000 | $ 3,602,000 | ||
Employee Stock Ownership Plan (ESOP), Cash Contributions to ESOP | $ 612,000 | 647,000 | $ 674,000 | ||
Pension Plan [Member] | |||||
Defined Benefit Plan, Percentage Vesting After the Specified Employment Period | 100.00% | ||||
Defined Benefit Plan, Vesting Period | 5 years | ||||
Defined Benefit Plan, Age for Compensation | 65 | ||||
Defined Benefit Plan, Age Below Which Compensation is Reduced | 62 | ||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Return on Assets for Next Fiscal Year | 7.50% | ||||
Defined Benefit Plan, Plan Assets at Fair Value, Valuation Inputs, Period Over Which Investment Gains or Losses are Recognized | 5 years | ||||
Defined Benefit Plan, Minimum Funding Requirement | $ 0 | ||||
Pension Plan [Member] | SEI Energy Debt Fund [Member] | |||||
Amount Invested in Pension Fund Assets | $ 10,000,000 | ||||
Pension Plan [Member] | Subsequent Event [Member] | |||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 20,000,000 | ||||
Executive Survivor and Supplemental Retirement Plan [Member] | |||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 1,175,000 | 1,188,000 | |||
Period of Benefit Payments to Beneficiaries on Deaths | 15 years | ||||
Other Postretirement Benefits Plan [Member] | |||||
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 3,290,000 | $ 2,825,000 | |||
Health Insurance Benefits, Requisite Age | 55 years | ||||
Health Insurance Benefits, Requisite Service Period | 10 years | ||||
Defined Benefit Plan, Expected Future Employer Contributions, Next Fiscal Year | $ 4,000,000 | ||||
Defined Benefit Plan, Expected Future Prescription Drug Subsidy Receipt, Next Twelve Months | $ 400,000 |
Note 10 - Pension Plan and Ot86
Note 10 - Pension Plan and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Executive Survivor and Supplemental Retirement Plan [Member] | ||||
Service Cost | $ 290 | $ 252 | $ 189 | |
Interest Cost | 1,686 | 1,667 | 1,523 | |
Amortization of Prior Service Cost: | ||||
From Regulatory Asset | 16 | 16 | 16 | |
From Other Comprehensive Income | [1] | 38 | 38 | 38 |
Amortization of Net Actuarial Loss: | ||||
From Regulatory Asset | 285 | 293 | 334 | |
From Other Comprehensive Income | [2] | 440 | 446 | 602 |
Net Periodic Pension Cost | [3] | 2,755 | 2,712 | 2,702 |
Service Cost | 290 | 252 | 189 | |
Interest Cost | 1,686 | 1,667 | 1,523 | |
From Regulatory Asset | 16 | 16 | 16 | |
From Other Comprehensive Income | [1] | 38 | 38 | 38 |
Other Postretirement Benefits Plan [Member] | ||||
Service Cost | 1,425 | 1,301 | 1,297 | |
Interest Cost | 2,712 | 2,503 | 2,097 | |
Amortization of Prior Service Cost: | ||||
From Regulatory Asset | (4) | 134 | 205 | |
From Other Comprehensive Income | [4] | 4 | 3 | 5 |
Amortization of Net Actuarial Loss: | ||||
From Regulatory Asset | 936 | 379 | ||
From Other Comprehensive Income | [4] | 19 | 9 | |
Net Periodic Pension Cost | [5] | 5,092 | 4,329 | 3,604 |
Service Cost | 1,425 | 1,301 | 1,297 | |
Interest Cost | 2,712 | 2,503 | 2,097 | |
From Regulatory Asset | (4) | 134 | 205 | |
From Other Comprehensive Income | [4] | 4 | 3 | 5 |
Effect of Medicare Part D Subsidy | (561) | (923) | (1,487) | |
Pension Plan [Member] | ||||
Service Cost | 5,629 | 5,518 | 6,059 | |
Interest Cost | 14,139 | 14,195 | 13,344 | |
Expected Return on Assets | (19,229) | (19,454) | (18,383) | |
Amortization of Prior Service Cost: | ||||
From Regulatory Asset | 120 | 189 | 188 | |
From Other Comprehensive Income | [4] | 3 | 5 | 5 |
Amortization of Net Actuarial Loss: | ||||
From Regulatory Asset | 5,090 | 5,153 | 6,676 | |
From Other Comprehensive Income | [4] | 125 | 127 | 171 |
Net Periodic Pension Cost | [6] | 5,877 | 5,733 | 8,060 |
Service Cost | 5,629 | 5,518 | 6,059 | |
Interest Cost | 14,139 | 14,195 | 13,344 | |
From Regulatory Asset | 120 | 189 | 188 | |
From Other Comprehensive Income | [4] | $ 3 | $ 5 | $ 5 |
[1] | Amortization of Prior Service Costs from Other Comprehensive Income Charged to: Electric Operation and Maintenance Expenses $ 15 $ 15 $ 15 Other Nonelectric Expenses 23 23 23 | |||
[2] | Amortization of Net Actuarial Loss from Other Comprehensive Income Charged to: Electric Operation and Maintenance Expenses $ 265 $ 272 $ 310 Other Nonelectric Expenses 175 174 292 | |||
[3] | ESSRP costs are not capitalized. | |||
[4] | Corporate cost included in Other Nonelectric Expenses. | |||
[5] | Allocation of Cost: 2017 2016 2015 Cost included in OTP Capital Expenditures $ 989 $ 792 $ 650 Cost included in Electric Operation and Maintenance Expenses 3,981 3,433 2,864 Cost included in Other Nonelectric Expenses 122 104 90 | |||
[6] | Allocation of Costs: 2017 2016 2015 Costs included in OTP Capital Expenditures $ 1,142 $ 1,048 $ 1,453 Costs included in Electric Operation and Maintenance Expenses 4,594 4,547 6,406 Costs included in Other Nonelectric Expenses 141 138 201 |
Note 10 - Pension Plan and Ot87
Note 10 - Pension Plan and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Details) (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Other Postretirement Benefits Plan [Member] | ||||
Net Periodic Pension Cost | [1] | $ 5,092 | $ 4,329 | $ 3,604 |
Amortization of Prior Service Costs from Other Comprehensive Income Charged to: | [2] | 4 | 3 | 5 |
Amortization of Net Actuarial Loss from Other Comprehensive Income Charge to: | [2] | 19 | 9 | |
Other Postretirement Benefits Plan [Member] | Costs Included in OTP Capital Expenditures [Member] | ||||
Net Periodic Pension Cost | 989 | 792 | 650 | |
Other Postretirement Benefits Plan [Member] | Costs Included in Electric Operation and Maintenance Expenses [Member] | ||||
Net Periodic Pension Cost | 3,981 | 3,433 | 2,864 | |
Other Postretirement Benefits Plan [Member] | Costs Included in Other Nonelectric Expenses [Member] | ||||
Net Periodic Pension Cost | 122 | 104 | 90 | |
Executive Survivor and Supplemental Retirement Plan [Member] | ||||
Net Periodic Pension Cost | [3] | 2,755 | 2,712 | 2,702 |
Amortization of Prior Service Costs from Other Comprehensive Income Charged to: | [4] | 38 | 38 | 38 |
Amortization of Net Actuarial Loss from Other Comprehensive Income Charge to: | [5] | 440 | 446 | 602 |
Executive Survivor and Supplemental Retirement Plan [Member] | Electric Operation and Maintenance Expenses [Member] | ||||
Amortization of Prior Service Costs from Other Comprehensive Income Charged to: | 15 | 15 | 20 | |
Amortization of Net Actuarial Loss from Other Comprehensive Income Charge to: | 265 | 272 | 310 | |
Executive Survivor and Supplemental Retirement Plan [Member] | Other Nonelectric Expenses [member] | ||||
Amortization of Prior Service Costs from Other Comprehensive Income Charged to: | 23 | 23 | 23 | |
Amortization of Net Actuarial Loss from Other Comprehensive Income Charge to: | 175 | 174 | 292 | |
Pension Plan [Member] | ||||
Net Periodic Pension Cost | [6] | 5,877 | 5,733 | 8,060 |
Amortization of Prior Service Costs from Other Comprehensive Income Charged to: | [2] | 3 | 5 | 5 |
Amortization of Net Actuarial Loss from Other Comprehensive Income Charge to: | [2] | 125 | 127 | 171 |
Pension Plan [Member] | Costs Included in OTP Capital Expenditures [Member] | ||||
Net Periodic Pension Cost | 1,142 | 1,048 | 1,453 | |
Pension Plan [Member] | Costs Included in Electric Operation and Maintenance Expenses [Member] | ||||
Net Periodic Pension Cost | 4,594 | 4,547 | 6,406 | |
Pension Plan [Member] | Costs Included in Other Nonelectric Expenses [Member] | ||||
Net Periodic Pension Cost | $ 141 | $ 138 | $ 201 | |
[1] | Allocation of Cost: 2017 2016 2015 Cost included in OTP Capital Expenditures $ 989 $ 792 $ 650 Cost included in Electric Operation and Maintenance Expenses 3,981 3,433 2,864 Cost included in Other Nonelectric Expenses 122 104 90 | |||
[2] | Corporate cost included in Other Nonelectric Expenses. | |||
[3] | ESSRP costs are not capitalized. | |||
[4] | Amortization of Prior Service Costs from Other Comprehensive Income Charged to: Electric Operation and Maintenance Expenses $ 15 $ 15 $ 15 Other Nonelectric Expenses 23 23 23 | |||
[5] | Amortization of Net Actuarial Loss from Other Comprehensive Income Charged to: Electric Operation and Maintenance Expenses $ 265 $ 272 $ 310 Other Nonelectric Expenses 175 174 292 | |||
[6] | Allocation of Costs: 2017 2016 2015 Costs included in OTP Capital Expenditures $ 1,142 $ 1,048 $ 1,453 Costs included in Electric Operation and Maintenance Expenses 4,594 4,547 6,406 Costs included in Other Nonelectric Expenses 141 138 201 |
Note 10 - Pension Plan and Ot88
Note 10 - Pension Plan and Other Postretirement Benefits - Weighted-average Assumptions Used to Determine Net Periodic Benefit Cost (Details) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pension Plan [Member] | |||
Discount Rate | 4.60% | 4.76% | 4.35% |
Long-Term Rate of Return on Plan Assets | 7.50% | 7.75% | 7.75% |
Rate of Increase in Future Compensation Level | 3.00% | 3.13% | 3.13% |
Executive Survivor and Supplemental Retirement Plan [Member] | |||
Discount Rate | 4.60% | 4.76% | 4.35% |
Rate of Increase in Future Compensation Level | 3.00% | 3.13% | 3.15% |
Other Postretirement Benefits Plan [Member] | |||
Discount Rate | 4.46% | 4.57% | 4.20% |
Note 10 - Pension Plan and Ot89
Note 10 - Pension Plan and Other Postretirement Benefits - Amounts Recognized in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Pension Plan [Member] | |||
Regulatory Assets: | |||
Unrecognized Prior Service Cost | $ 21 | $ 141 | |
Unrecognized Actuarial Loss | 99,360 | 98,039 | |
Total Regulatory Assets | 99,381 | 98,180 | |
Projected Benefit Obligation Liability – Net Amount Recognized | (352,718) | (314,637) | $ (302,740) |
Accumulated Other Comprehensive Loss: | |||
Unrecognized Prior Service Cost | 9 | 12 | |
Unrecognized Actuarial Loss | 439 | 406 | |
Total Accumulated Other Comprehensive Loss | 448 | 418 | |
Noncurrent Liability | 67,399 | 60,292 | |
Unrecognized Prior Service Cost | 9 | 12 | |
Executive Survivor and Supplemental Retirement Plan [Member] | |||
Regulatory Assets: | |||
Unrecognized Prior Service Cost | 40 | 58 | |
Unrecognized Actuarial Loss | 3,229 | 2,890 | |
Total Regulatory Assets | 3,269 | 2,948 | |
Projected Benefit Obligation Liability – Net Amount Recognized | (42,308) | (37,335) | (35,811) |
Accumulated Other Comprehensive Loss: | |||
Unrecognized Prior Service Cost | 98 | 134 | |
Unrecognized Actuarial Loss | 9,024 | 5,915 | |
Total Accumulated Other Comprehensive Loss | 9,122 | 6,049 | |
Unrecognized Prior Service Cost | 98 | 134 | |
Other Postretirement Benefits Plan [Member] | |||
Regulatory Assets: | |||
Unrecognized Prior Service Cost | (4) | ||
Unrecognized Actuarial Loss | 18,927 | 13,586 | |
Total Regulatory Assets | 18,927 | 13,582 | |
Projected Benefit Obligation Liability – Net Amount Recognized | (69,774) | (62,571) | $ (48,730) |
Accumulated Other Comprehensive Loss: | |||
Unrecognized Prior Service Cost | 4 | ||
Unrecognized Actuarial Loss | (111) | (171) | |
Total Accumulated Other Comprehensive Loss | (111) | (167) | |
Unrecognized Prior Service Cost | $ 4 |
Note 10 - Pension Plan and Ot90
Note 10 - Pension Plan and Other Postretirement Benefits - Funded Status (Details) - Pension Plan [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accumulated Benefit Obligation | $ (316,095) | $ (281,414) | |
Projected Benefit Obligation Liability – Net Amount Recognized | (352,718) | (314,637) | $ (302,740) |
Fair Value of Plan Assets | 285,319 | 254,346 | $ 233,639 |
Funded Status | $ (67,399) | $ (60,292) |
Note 10 - Pension Plan and Ot91
Note 10 - Pension Plan and Other Postretirement Benefits - Reconciliation of Changes in Fair Value of Plan Assets and Plan's Benefit Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | ||
Pension Plan [Member] | ||||
Reconciliation of Fair Value of Plan Assets: | ||||
Fair Value of Plan Assets, beginning balance | $ 254,346 | $ 233,639 | ||
Actual Return on Plan Assets | 44,181 | 23,794 | ||
Discretionary Company Contributions | 10,000 | |||
Benefit Payments | (13,208) | (13,088) | ||
Fair Value of Plan Assets, ending balance | $ 285,319 | $ 254,346 | $ 233,639 | |
Estimated Asset Return | 17.80% | 10.10% | ||
Reconciliation of Projected Benefit Obligation: | ||||
Projected Benefit Obligation, beginning balance | $ 314,637 | $ 302,740 | ||
Service Cost | 5,629 | 5,518 | 6,059 | |
Interest Cost | 14,139 | 14,195 | 13,344 | |
Benefit Payments | (13,208) | (13,088) | ||
Actuarial Loss | 31,521 | 5,272 | ||
Projected Benefit Obligation, ending balance | 352,718 | 314,637 | 302,740 | |
Reconciliation of Accrued Postretirement Cost: | ||||
Expense | [1] | (5,877) | (5,733) | (8,060) |
Executive Survivor and Supplemental Retirement Plan [Member] | ||||
Reconciliation of Fair Value of Plan Assets: | ||||
Fair Value of Plan Assets, beginning balance | ||||
Actual Return on Plan Assets | ||||
Benefit Payments | (1,175) | (1,188) | ||
Employer Contributions | 1,175 | 1,188 | ||
Fair Value of Plan Assets, ending balance | ||||
Reconciliation of Projected Benefit Obligation: | ||||
Projected Benefit Obligation, beginning balance | 37,335 | 35,811 | ||
Service Cost | 290 | 252 | 189 | |
Interest Cost | 1,686 | 1,667 | 1,523 | |
Benefit Payments | (1,175) | (1,188) | ||
Actuarial Loss | 4,172 | 793 | ||
Projected Benefit Obligation, ending balance | 42,308 | 37,335 | 35,811 | |
Plan Amendments | ||||
Reconciliation of Accrued Postretirement Cost: | ||||
Expense | [2] | (2,755) | (2,712) | (2,702) |
Employer Contributions | 1,175 | 1,188 | ||
Other Postretirement Benefits Plan [Member] | ||||
Reconciliation of Fair Value of Plan Assets: | ||||
Fair Value of Plan Assets, beginning balance | ||||
Actual Return on Plan Assets | ||||
Benefit Payments | (6,534) | (5,908) | ||
Employer Contributions | 3,290 | 2,825 | ||
Participant Premium Payments | 3,244 | 3,083 | ||
Fair Value of Plan Assets, ending balance | ||||
Reconciliation of Projected Benefit Obligation: | ||||
Projected Benefit Obligation, beginning balance | 62,571 | 48,730 | ||
Service Cost | 1,425 | 1,301 | 1,297 | |
Interest Cost | 2,712 | 2,503 | 2,097 | |
Benefit Payments | (6,534) | (5,908) | ||
Actuarial Loss | 6,356 | 12,862 | ||
Projected Benefit Obligation, ending balance | 69,774 | 62,571 | 48,730 | |
Participant Premium Payments | 3,244 | 3,083 | ||
Reconciliation of Accrued Postretirement Cost: | ||||
Accrued Postretirement Cost at January 1 | (49,156) | (47,652) | ||
Expense | [3] | (5,092) | (4,329) | (3,604) |
Employer Contributions | 3,290 | 2,825 | ||
Accrued Postretirement Cost at December 31 | $ (50,958) | $ (49,156) | $ (47,652) | |
[1] | Allocation of Costs: 2017 2016 2015 Costs included in OTP Capital Expenditures $ 1,142 $ 1,048 $ 1,453 Costs included in Electric Operation and Maintenance Expenses 4,594 4,547 6,406 Costs included in Other Nonelectric Expenses 141 138 201 | |||
[2] | ESSRP costs are not capitalized. | |||
[3] | Allocation of Cost: 2017 2016 2015 Cost included in OTP Capital Expenditures $ 989 $ 792 $ 650 Cost included in Electric Operation and Maintenance Expenses 3,981 3,433 2,864 Cost included in Other Nonelectric Expenses 122 104 90 |
Note 10 - Pension and Other Pos
Note 10 - Pension and Other Postretirement Benefits - Weighted-average Assumptions Used to Determine Benefit Obligations (Details) | Dec. 31, 2017 | Dec. 31, 2016 |
Pension Plan [Member] | ||
Discount Rate | 3.90% | 4.60% |
Rate of Increase in Future Compensation Level | 3.00% | |
Pension Plan [Member] | Participants to Age 39 [Member] | ||
Rate of Increase in Future Compensation Level | 4.50% | |
Pension Plan [Member] | Participants Age 40 to 49 [Member] | ||
Rate of Increase in Future Compensation Level | 3.50% | |
Pension Plan [Member] | Participants Age 50 and Older [Member] | ||
Rate of Increase in Future Compensation Level | 2.75% | |
Executive Survivor and Supplemental Retirement Plan [Member] | ||
Discount Rate | 3.85% | 4.60% |
Rate of Increase in Future Compensation Level | 2.92% | 3.00% |
Other Postretirement Benefits Plan [Member] | ||
Discount Rate | 3.81% | 4.46% |
Note 10 - Pension Plan and Ot93
Note 10 - Pension Plan and Other Postretirement Benefits - Measurement Dates (Details) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Pension Plan [Member] | ||
Net Periodic Pension Cost | Jan. 1, 2017 | Jan. 1, 2016 |
End of Year Benefit Obligations | January 1, 2017 projected to December 31, 2017 | January 1, 2016 projected to December 31, 2016 |
Market Value of Assets | Dec. 31, 2017 | Dec. 31, 2016 |
Other Postretirement Benefits Plan [Member] | ||
Net Periodic Pension Cost | Jan. 1, 2017 | Jan. 1, 2016 |
End of Year Benefit Obligations | January 1, 2017 projected to December 31, 2017 | January 1, 2016 projected to December 31, 2016 |
Note 10 - Pension Plan and Ot94
Note 10 - Pension Plan and Other Postretirement Benefits - Estimated Amounts of Unrecognized Net Actuarial Losses and Prior Service Costs to be Amortized (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Pension Plan [Member] | |
Decrease in Regulatory Assets: | |
Amortization of Unrecognized Prior Service Cost | $ 16 |
Amortization of Unrecognized Actuarial Loss | 7,142 |
Decrease in Accumulated Other Comprehensive Loss: | |
Amortization of Unrecognized Prior Service Cost | |
Amortization of Unrecognized Actuarial Loss | 176 |
Total Estimated Amortization | 7,334 |
Executive Survivor and Supplemental Retirement Plan [Member] | |
Decrease in Regulatory Assets: | |
Amortization of Unrecognized Prior Service Cost | 16 |
Amortization of Unrecognized Actuarial Loss | 267 |
Decrease in Accumulated Other Comprehensive Loss: | |
Amortization of Unrecognized Prior Service Cost | 38 |
Amortization of Unrecognized Actuarial Loss | 661 |
Total Estimated Amortization | 982 |
Other Postretirement Benefits Plan [Member] | |
Decrease in Regulatory Assets: | |
Amortization of Unrecognized Actuarial Loss | 1,649 |
Decrease in Accumulated Other Comprehensive Loss: | |
Amortization of Unrecognized Actuarial Loss | 41 |
Total Estimated Amortization | $ 1,690 |
Note 10 - Pension Plan and Ot95
Note 10 - Pension Plan and Other Postretirement Benefits - Benefit Payments, Which Reflect Expected Future Service, As Appropriate, Expected to Be Paid Out From Plan Assets (Details) | Dec. 31, 2017USD ($) |
Executive Survivor and Supplemental Retirement Plan [Member] | |
2,018 | $ 1,568,000 |
2,019 | 1,612,000 |
2,020 | 1,576,000 |
2,021 | 1,670,000 |
2,022 | 2,255,000 |
2023-2027 | 13,775,000 |
Pension Plan [Member] | |
2,018 | 14,384 |
2,019 | 15,022 |
2,020 | 15,666 |
2,021 | 16,336 |
2,022 | 17,041 |
2023-2027 | 93,882 |
Other Postretirement Benefits Plan [Member] | |
2,018 | 3,986,000 |
2,019 | 4,107,000 |
2,020 | 4,133,000 |
2,021 | 4,218,000 |
2,022 | 4,327,000 |
2023-2027 | $ 21,089,000 |
Note 10 - Pension Plan and Ot96
Note 10 - Pension Plan and Other Postretirement Benefits - Asset Allocation Ranges By Asset Class and PBO Funded Status (Details) - Pension Plan [Member] | Dec. 31, 2017 | |
Equity Securities [Member] | Permitted Range, Less Than 85 Percent PBO [Member] | Minimum [Member] | ||
Equity | 39.00% | |
Equity Securities [Member] | Permitted Range, Less Than 85 Percent PBO [Member] | Maximum [Member] | ||
Equity | 59.00% | |
Equity Securities [Member] | Permitted Range, Equal to or Greater than 85 Percent PBO [Member] | Minimum [Member] | ||
Equity | 34.00% | |
Equity Securities [Member] | Permitted Range, Equal to or Greater than 85 Percent PBO [Member] | Maximum [Member] | ||
Equity | 54.00% | |
Equity Securities [Member] | Permitted Range, Equal to or Greater than 90 Percent PBO [Member] | Minimum [Member] | ||
Equity | 24.00% | |
Equity Securities [Member] | Permitted Range, Equal to or Greater than 90 Percent PBO [Member] | Maximum [Member] | ||
Equity | 44.00% | |
Equity Securities [Member] | Permitted Range, Equal to or Greater than 95% PBO [Member] | Minimum [Member] | ||
Equity | 14.00% | |
Equity Securities [Member] | Permitted Range, Equal to or Greater than 95% PBO [Member] | Maximum [Member] | ||
Equity | 34.00% | |
Equity Securities [Member] | Permitted Range, Equal to or Greater than 100 Percent PBO [Member] | Minimum [Member] | ||
Equity | 0.00% | |
Equity Securities [Member] | Permitted Range, Equal to or Greater than 100 Percent PBO [Member] | Maximum [Member] | ||
Equity | 20.00% | |
Investment Grade Fixed Income Securities [Member] | Permitted Range, Less Than 85 Percent PBO [Member] | Minimum [Member] | ||
Equity | 22.00% | |
Investment Grade Fixed Income Securities [Member] | Permitted Range, Less Than 85 Percent PBO [Member] | Maximum [Member] | ||
Equity | 42.00% | |
Investment Grade Fixed Income Securities [Member] | Permitted Range, Equal to or Greater than 85 Percent PBO [Member] | Minimum [Member] | ||
Equity | 30.00% | |
Investment Grade Fixed Income Securities [Member] | Permitted Range, Equal to or Greater than 85 Percent PBO [Member] | Maximum [Member] | ||
Equity | 50.00% | |
Investment Grade Fixed Income Securities [Member] | Permitted Range, Equal to or Greater than 90 Percent PBO [Member] | Minimum [Member] | ||
Equity | 40.00% | |
Investment Grade Fixed Income Securities [Member] | Permitted Range, Equal to or Greater than 90 Percent PBO [Member] | Maximum [Member] | ||
Equity | 60.00% | |
Investment Grade Fixed Income Securities [Member] | Permitted Range, Equal to or Greater than 95% PBO [Member] | Minimum [Member] | ||
Equity | 53.00% | |
Investment Grade Fixed Income Securities [Member] | Permitted Range, Equal to or Greater than 95% PBO [Member] | Maximum [Member] | ||
Equity | 73.00% | |
Investment Grade Fixed Income Securities [Member] | Permitted Range, Equal to or Greater than 100 Percent PBO [Member] | Minimum [Member] | ||
Equity | 70.00% | |
Investment Grade Fixed Income Securities [Member] | Permitted Range, Equal to or Greater than 100 Percent PBO [Member] | Maximum [Member] | ||
Equity | 100.00% | |
Below Investment Grade Fixed Income Securities [Member] | Permitted Range, Less Than 85 Percent PBO [Member] | Minimum [Member] | ||
Equity | 0.00% | [1] |
Below Investment Grade Fixed Income Securities [Member] | Permitted Range, Less Than 85 Percent PBO [Member] | Maximum [Member] | ||
Equity | 15.00% | [1] |
Below Investment Grade Fixed Income Securities [Member] | Permitted Range, Equal to or Greater than 85 Percent PBO [Member] | Minimum [Member] | ||
Equity | 0.00% | [1] |
Below Investment Grade Fixed Income Securities [Member] | Permitted Range, Equal to or Greater than 85 Percent PBO [Member] | Maximum [Member] | ||
Equity | 15.00% | [1] |
Below Investment Grade Fixed Income Securities [Member] | Permitted Range, Equal to or Greater than 90 Percent PBO [Member] | Minimum [Member] | ||
Equity | 0.00% | [1] |
Below Investment Grade Fixed Income Securities [Member] | Permitted Range, Equal to or Greater than 90 Percent PBO [Member] | Maximum [Member] | ||
Equity | 15.00% | [1] |
Below Investment Grade Fixed Income Securities [Member] | Permitted Range, Equal to or Greater than 95% PBO [Member] | Minimum [Member] | ||
Equity | 0.00% | [1] |
Below Investment Grade Fixed Income Securities [Member] | Permitted Range, Equal to or Greater than 95% PBO [Member] | Maximum [Member] | ||
Equity | 10.00% | [1] |
Below Investment Grade Fixed Income Securities [Member] | Permitted Range, Equal to or Greater than 100 Percent PBO [Member] | Minimum [Member] | ||
Equity | 0.00% | [1] |
Below Investment Grade Fixed Income Securities [Member] | Permitted Range, Equal to or Greater than 100 Percent PBO [Member] | Maximum [Member] | ||
Equity | 10.00% | [1] |
Other Asset Categories [Member] | Permitted Range, Less Than 85 Percent PBO [Member] | Minimum [Member] | ||
Equity | 5.00% | [2] |
Other Asset Categories [Member] | Permitted Range, Less Than 85 Percent PBO [Member] | Maximum [Member] | ||
Equity | 20.00% | [2] |
Other Asset Categories [Member] | Permitted Range, Equal to or Greater than 85 Percent PBO [Member] | Minimum [Member] | ||
Equity | 5.00% | [2] |
Other Asset Categories [Member] | Permitted Range, Equal to or Greater than 85 Percent PBO [Member] | Maximum [Member] | ||
Equity | 20.00% | [2] |
Other Asset Categories [Member] | Permitted Range, Equal to or Greater than 90 Percent PBO [Member] | Minimum [Member] | ||
Equity | 5.00% | [2] |
Other Asset Categories [Member] | Permitted Range, Equal to or Greater than 90 Percent PBO [Member] | Maximum [Member] | ||
Equity | 20.00% | [2] |
Other Asset Categories [Member] | Permitted Range, Equal to or Greater than 95% PBO [Member] | Minimum [Member] | ||
Equity | 0.00% | [2] |
Other Asset Categories [Member] | Permitted Range, Equal to or Greater than 95% PBO [Member] | Maximum [Member] | ||
Equity | 15.00% | [2] |
Other Asset Categories [Member] | Permitted Range, Equal to or Greater than 100 Percent PBO [Member] | Minimum [Member] | ||
Equity | 0.00% | [2] |
Other Asset Categories [Member] | Permitted Range, Equal to or Greater than 100 Percent PBO [Member] | Maximum [Member] | ||
Equity | 15.00% | [2] |
[1] | Includes (but not limited to) High Yield Bond Fund and Emerging Markets Debt funds. | |
[2] | Other category may include cash, alternatives, and/or other investment strategies that may be classified other than equity or fixed income, such as the Dynamic Asset Allocation fund. |
Note 10 - Pension Plan and Ot97
Note 10 - Pension Plan and Other Postretirement Benefits - Pension Plan Asset Allocations by Asset Category (Details) - Pension Plan [Member] | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% |
Large Capitalization Equity Securities [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 23.50% | 21.40% |
International Equity Securities [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 18.10% | 22.00% |
Small and Mid Capitalization Equity Securities [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 8.70% | 9.00% |
Emerging Markets Equity Funds [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 5.50% | 0.00% |
SEI Dynamic Asset Allocation Fund [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 5.00% | 5.40% |
Equity Securities [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 60.80% | 57.80% |
Fixed-income Securities and Cash [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 35.20% | 34.30% |
Other - SEI Energy Debt Collective Fund [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 4.00% | 4.10% |
Other - SEI Special Situation Collective Investment Trust [Member] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 0.00% | 3.80% |
Note 10 - Pension Plan and Ot98
Note 10 - Pension Plan and Other Postretirement Benefits - Pension Fund Assets Measured at Fair Value and NAV (Details) - Pension Plan [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value of Plan Assets | $ 285,319 | $ 254,346 | $ 233,639 |
NAV Practical Expedient to Fair Valuation [Member] | Other - SEI Energy Debt Collective Fund [Member] | SEI Energy Debt Collective Fund [Member] | |||
Fair Value of Plan Assets | 11,320 | 10,441 | |
NAV Practical Expedient to Fair Valuation [Member] | Other - SEI Special Situation Collective Investment Trust [Member] | SEI Special Situation Collective Investment Trust Fund [Member] | |||
Fair Value of Plan Assets | 9,601 | ||
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value of Plan Assets | $ 273,999 | $ 234,303 |
Note 10 - Pension Plan and Ot99
Note 10 - Pension Plan and Other Postretirement Benefits - Pension Fund Assets Measured at Fair Value (Details) - Pension Plan [Member] - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value of Plan Assets | $ 285,319 | $ 254,346 | $ 233,639 |
Fair Value, Inputs, Level 1 [Member] | |||
Fair Value of Plan Assets | 273,999 | 234,303 | |
Fair Value, Inputs, Level 1 [Member] | Large Capitalization Equity Securities [Member] | |||
Fair Value of Plan Assets | 66,946 | 54,483 | |
Fair Value, Inputs, Level 1 [Member] | International Equity Securities [Member] | |||
Fair Value of Plan Assets | 51,636 | 55,916 | |
Fair Value, Inputs, Level 1 [Member] | Small and Mid Capitalization Equity Securities [Member] | |||
Fair Value of Plan Assets | 24,848 | 23,011 | |
Fair Value, Inputs, Level 1 [Member] | Emerging Markets Equity Funds [Member] | |||
Fair Value of Plan Assets | 15,824 | ||
Fair Value, Inputs, Level 1 [Member] | SEI Dynamic Asset Allocation Fund [Member] | |||
Fair Value of Plan Assets | 14,371 | 13,622 | |
Fair Value, Inputs, Level 1 [Member] | Fixed Income Securities [Member] | |||
Fair Value of Plan Assets | 100,373 | 87,268 | |
Fair Value, Inputs, Level 1 [Member] | Cash Management Money Market Fund [Member] | |||
Fair Value of Plan Assets | $ 1 | $ 3 |
Note 10 - Pension Plan and O100
Note 10 - Pension Plan and Other Postretirement Benefits - Healthcare Cost-trend Rates (Details) - Other Postretirement Benefits Plan [Member] | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Healthcare Cost-Trend Rate Assumed for Next Year Pre-65 | 5.85% | 6.01% |
Healthcare Cost-Trend Rate Assumed for Next Year Post-65 | 6.03% | 6.23% |
Rate to Which the Cost-Trend Rate is Assumed to Decline | 4.50% | 4.50% |
Year the Rate Reaches the Ultimate Trend Rate | 2,038 | 2,038 |
Note 10 - Pension Plan and O101
Note 10 - Pension Plan and Other Postretirement Benefits - Effects of One Percentage Change In Assumed Healthcare Cost-trend Rates (Details) - Other Postretirement Benefits Plan [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Effect of 1 Point Increase on the Postretirement Benefit Obligation | $ 9,301 |
Effect of 1 Point Decrease on the Postretirement Benefit Obligation | (7,692) |
Effect of 1 Point Increase on Total of Service and Interest Cost | 731 |
Effect of 1 Point Decrease on Total of Service and Interest Cost | (601) |
Effect of 1 Point Increase on Expense | 1,589 |
Effect of 1 Point Decrease on Expense | $ (1,500) |
Note 11 - Fair Value of Fina102
Note 11 - Fair Value of Financial Instruments (Details Textual) - OTP Credit Agreement [Member] | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument, Description of Variable Rate Basis | LIBOR | |
London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | 1.25% |
Debt Instrument, Description of Variable Rate Basis | LIBOR | LIBOR |
Note 11 - Fair Value of Fina103
Note 11 - Fair Value of Financial Instruments - Summary of Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Reported Value Measurement [Member] | ||
Cash and Cash Equivalents | $ 16,216 | |
Short-Term Debt | (112,371) | (42,883) |
Long-Term Debt including Current Maturities | (490,566) | (538,542) |
Estimate of Fair Value Measurement [Member] | ||
Cash and Cash Equivalents | 16,216 | |
Short-Term Debt | (112,371) | (42,883) |
Long-Term Debt including Current Maturities | $ (543,691) | $ (583,835) |
Note 12 - Property, Plant an104
Note 12 - Property, Plant and Equipment (Details Textual) | 12 Months Ended |
Dec. 31, 2017 | |
Electric Plant [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 5 years |
Electric Plant [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 82 years |
Nonelectric Plant [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life | 3 years |
Nonelectric Plant [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life | 40 years |
Note 12 - Property, Plant an105
Note 12 - Property, Plant and Equipment - Summary of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Total Gross Plant | $ 2,339,022 | $ 2,225,444 |
Less Accumulated Depreciation and Amortization | 799,419 | 748,219 |
Net Plant | 1,539,603 | 1,477,225 |
Electric Plant [Member] | ||
Total Gross Plant | 2,113,574 | 2,010,354 |
Less Accumulated Depreciation and Amortization | 662,431 | 622,657 |
Net Plant | 1,451,143 | 1,387,697 |
Nonelectric Operations Plant [Member] | ||
Total Gross Plant | 225,448 | 215,090 |
Less Accumulated Depreciation and Amortization | 136,988 | 125,562 |
Net Plant | 88,460 | 89,528 |
Electric Generation Equipment [Member] | Electric Plant [Member] | ||
Total Gross Plant | 897,732 | 891,330 |
Transmission Plant [Member] | Electric Plant [Member] | ||
Total Gross Plant | 500,352 | 410,679 |
Distribution Plant [Member] | Electric Plant [Member] | ||
Total Gross Plant | 482,867 | 466,285 |
General Plant [Member] | Electric Plant [Member] | ||
Total Gross Plant | 100,067 | 92,063 |
Electric Plant in Service [Member] | Electric Plant [Member] | ||
Total Gross Plant | 1,981,018 | 1,860,357 |
Construction in Progress [Member] | Electric Plant [Member] | ||
Total Gross Plant | 132,556 | 149,997 |
Construction in Progress [Member] | Nonelectric Plant [Member] | ||
Total Gross Plant | 8,511 | 3,264 |
Equipment [Member] | Nonelectric Plant [Member] | ||
Total Gross Plant | 160,263 | 155,809 |
Buildings and Leasehold Improvements [Member] | Nonelectric Plant [Member] | ||
Total Gross Plant | 52,280 | 51,323 |
Land [Member] | Nonelectric Plant [Member] | ||
Total Gross Plant | 4,394 | 4,694 |
Nonelectric Operations Plant [Member] | Nonelectric Plant [Member] | ||
Total Gross Plant | $ 216,937 | $ 211,826 |
Note 12 - Property, Plant an106
Note 12 - Property, Plant and Equipment - Estimated Service Lives for Properties (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Minimum [Member] | Electric Plant [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 5 years |
Minimum [Member] | Electric Plant [Member] | Electric Generation Equipment [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 9 years |
Minimum [Member] | Electric Plant [Member] | Transmission Plant [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 42 years |
Minimum [Member] | Electric Plant [Member] | Distribution Plant [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 5 years |
Minimum [Member] | Electric Plant [Member] | General Plant [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 5 years |
Minimum [Member] | Nonelectric Plant [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 3 years |
Minimum [Member] | Nonelectric Plant [Member] | Equipment [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 3 years |
Minimum [Member] | Nonelectric Plant [Member] | Buildings and Leasehold Improvements [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 7 years |
Maximum [Member] | Electric Plant [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 82 years |
Maximum [Member] | Electric Plant [Member] | Electric Generation Equipment [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 82 years |
Maximum [Member] | Electric Plant [Member] | Transmission Plant [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 70 years |
Maximum [Member] | Electric Plant [Member] | Distribution Plant [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 68 years |
Maximum [Member] | Electric Plant [Member] | General Plant [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 50 years |
Maximum [Member] | Nonelectric Plant [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 40 years |
Maximum [Member] | Nonelectric Plant [Member] | Equipment [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 12 years |
Maximum [Member] | Nonelectric Plant [Member] | Buildings and Leasehold Improvements [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 40 years |
Note 13 - Income Taxes (Details
Note 13 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | 35.00% | 35.00% | |
Increase in Percentage of Production Tax Credits | 4.40% | |||
Wind Tax Credits, Amortization Period | 25 years | |||
Period for Unrecognized Tax Benefits Not Expected Change | 1 year | |||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 0 | |||
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability | $ 1,756 | |||
Scenario, Forecast [Member] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Note 13 - Income Taxes - Effect
Note 13 - Income Taxes - Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Tax Computed at Federal Statutory Rate – Continuing Operations | $ 34,707 | $ 28,741 | $ 28,081 |
Increases (Decreases) in Tax from: | |||
Federal Production Tax Credits (PTCs) | (7,527) | (7,175) | (6,962) |
State Income Taxes Net of Federal Income Tax Expense | 4,341 | 2,848 | 4,945 |
Section 199 Domestic Production Activities Deduction | (1,471) | (482) | |
North Dakota Wind Tax Credit Amortization – Net of Federal Taxes | (850) | (850) | (850) |
Corporate-owned Life Insurance | (845) | (680) | (167) |
Excess Tax deduction - Equity Method Stock Awards | (751) | ||
Employee Stock Ownership Plan Dividend Deduction | (509) | (537) | (560) |
Allowance for Funds Used During Construction – Equity | (322) | (280) | (426) |
Investment Tax Credit Amortization | (164) | (350) | (571) |
Differences Reversing in Excess of Federal Rates | 551 | 77 | (1,143) |
Permanent and Other Differences | (1,873) | (1,231) | (705) |
Effect of TCJA Tax Rate Reduction on Value of Net Deferred Tax Assets | 1,756 | ||
Total Income Tax Expense – Continuing Operations | 27,043 | 20,081 | 21,642 |
Income Tax Expense – Discontinued Operations – U.S. | 213 | 138 | 2,991 |
Income Tax Expense – Continuing and Discontinued Operations | $ 27,256 | $ 20,219 | $ 24,633 |
Overall Effective Federal, State and Foreign Income Tax Rate | 27.30% | 24.50% | 29.30% |
Current Federal Income Taxes | $ 4,581 | $ 1,070 | $ 211 |
Current State Income Taxes | 1,154 | 1,211 | 1 |
Deferred Federal Income Taxes | 25,320 | 23,586 | 23,050 |
Deferred State Income Taxes | 4,529 | 2,589 | 6,763 |
Federal PTCs | (7,527) | (7,175) | (6,962) |
North Dakota Wind Tax Credit Amortization – Net of Federal Taxes | (850) | (850) | (850) |
Investment Tax Credit Amortization | (164) | (350) | (571) |
Total | 27,043 | 20,081 | 21,642 |
Total Income Before Income Taxes – Continuing and Discontinued Operations | $ 99,695 | $ 82,540 | $ 83,978 |
Note 13 - Income Taxes - Deferr
Note 13 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred Tax Assets | ||
Federal PTCs | $ 40,614 | $ 43,433 |
Regulatory Tax Liability | 39,465 | 2,422 |
North Dakota Wind Tax Credits | 32,962 | 32,962 |
Benefit Liabilities | 32,328 | 44,381 |
Retirement Benefits Liabilities | 31,894 | 38,390 |
Cost of Removal | 21,800 | 31,636 |
Differences Related to Property | 6,499 | 9,876 |
Net Operating Loss Carryforward | 3,203 | 3,865 |
Vacation Accrual | 1,844 | 2,725 |
Investment Tax Credits | 515 | 818 |
Other | 668 | 5,371 |
Total Deferred Tax Assets | 211,792 | 215,879 |
Deferred Tax Liabilities | ||
Differences Related to Property | (257,906) | (371,761) |
Retirement Benefits Regulatory Asset | (31,894) | (38,390) |
Excess Tax over Book Pension | (14,077) | (15,509) |
North Dakota Wind Tax Credits | (4,112) | (3,654) |
Impact of State Net Operating Losses on Federal Taxes | (673) | (1,352) |
Other | (3,631) | (11,804) |
Total Deferred Tax Liabilities | (312,293) | (442,470) |
Deferred Income Taxes | $ (100,501) | $ (226,591) |
Note 13 - Income Taxes - Expira
Note 13 - Income Taxes - Expiration of Tax Net Operating Losses and Tax Credits Available (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Domestic Tax Authority [Member] | |
Tax Credits | $ 43,238 |
Domestic Tax Authority [Member] | Tax Years 2022 to 2031 [Member] | |
Tax Credits | |
Domestic Tax Authority [Member] | Tax Years 2032 to 2037 [Member] | |
Tax Credits | 43,238 |
Domestic Tax Authority [Member] | Tax Years 2038 to 2043 [Member] | |
Tax Credits | |
State and Local Jurisdiction [Member] | |
Tax Credits | 33,568 |
State Net Operating Losses | 3,203 |
State and Local Jurisdiction [Member] | Tax Years 2022 to 2031 [Member] | |
Tax Credits | 376 |
State Net Operating Losses | 2,339 |
State and Local Jurisdiction [Member] | Tax Years 2032 to 2037 [Member] | |
Tax Credits | 231 |
State Net Operating Losses | 864 |
State and Local Jurisdiction [Member] | Tax Years 2038 to 2043 [Member] | |
Tax Credits | 32,961 |
State Net Operating Losses |
Note 13 - Income Tax Expense -
Note 13 - Income Tax Expense - Continuing Operations - Summary of Activity Related to Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Balance, beginning | $ 891 | $ 468 | $ 222 |
Increases Related to Tax Positions for Prior Years | 28 | 406 | 236 |
Decreases Related to Tax Positions for Prior Years | (378) | ||
Increases Related to Tax Positions for Current Year | 143 | 114 | 10 |
Uncertain Positions Resolved During Year | (97) | ||
Balance, ending | $ 684 | $ 891 | $ 468 |
Note 13 - Income Taxes - Impact
Note 13 - Income Taxes - Impacts of TCJA Adjustments to Deferred Taxes and Regulatory Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Balance, Deferred tax liability | $ 226,591 | ||
Change due to 2017 Accruals and Amortizations, Deferred tax liability | 20,012 | ||
TCJA Deferred Tax Valuation Adjustment, Deferred tax liability | (109,072) | ||
Tax Effect on TCJA Deferred Tax Valuation Adjustment, Deferred tax liability | (38,786) | ||
Effect of TCJA Tax Rate Reduction on Value of Net Deferred Tax Assets | 1,756 | ||
Balance, Deferred tax liability | 100,501 | 226,591 | |
Balance, Deferred tax regulatory liability | 85,727 | ||
Balance, Deferred tax regulatory liability | 242,581 | 85,727 | |
Deferred Income Tax Charge [Member] | |||
Balance, Deferred tax regulatory liability | 818 | ||
Change due to 2017 Accruals and Amortizations, Deferred tax regulatory liability | 376 | ||
TCJA Deferred Tax Valuation Adjustment, Deferred tax regulatory liability | 109,072 | ||
Tax Effect on TCJA Deferred Tax Valuation Adjustment, Deferred tax regulatory liability | 38,786 | ||
Balance, Deferred tax regulatory liability | $ 149,052 | $ 818 |
Note 14 - Asset Retirement O113
Note 14 - Asset Retirement Obligations (AROs) (Details Textual) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Asset Retirement Obligation, Liabilities Incurred | ||
Otter Tail Power Company [Member] | ||
Asset Retirement Obligation, Liabilities Incurred | $ 0 | |
North Dakota [Member] | ||
Number of Wind Turbines | 92 |
Note 14 - Asset Retirement O114
Note 14 - Asset Retirement Obligations (AROs) - Legal AROs, Capitalized Asset Retirement Costs and Accumulated Depreciation and a Settlement Activity Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Asset Retirement Obligations | ||
Beginning Balance | $ 8,341 | $ 8,084 |
Asset Retirement Obligation, Liabilities Incurred | ||
Adjustments Due to Revisions in Cash Flow Estimates | (103) | |
Accrued Accretion | 378 | 360 |
Settlements | ||
Ending Balance | 8,719 | 8,341 |
Asset Retirement Costs Capitalized | ||
Beginning Balance | 2,983 | 3,086 |
New Obligations Recognized | ||
Adjustments Due to Revisions in Cash Flow Estimates | (103) | |
Settlements | ||
Ending Balance | 2,983 | 2,983 |
Accumulated Depreciation – Asset Retirement Costs Capitalized | ||
Beginning Balance | 795 | 673 |
New Obligations Recognized | ||
Adjustments Due to Revisions in Cash Flow Estimates | ||
Depreciation Expense | 120 | 122 |
Settlements | ||
Ending Balance | 915 | 795 |
Original Capitalized Asset Retirement Cost – Retired | ||
Accumulated Depreciation | ||
Asset Retirement Obligation | ||
Settlement Cost | ||
Gain on Settlement – Deferred Under Regulatory Accounting |
Note 15 - Discontinued Opera115
Note 15 - Discontinued Operations (Details Textual) - USD ($) $ in Thousands | Feb. 28, 2015 | Apr. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2015 |
Proceeds from Divestiture of Businesses | $ 39,401 | ||||
Standard Product Warranty Term | 1 year | ||||
Minimum [Member] | |||||
Standard Product Warranty Term | 1 year | ||||
Maximum [Member] | |||||
Standard Product Warranty Term | 15 years | ||||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Foley Company [Member] | |||||
Proceeds from Divestiture of Businesses | $ 12,000 | ||||
Discontinued Operation Working Capital Received | 6,300 | ||||
Disposal Group, Including Discontinued Operation, Selling Expenses | $ 1,000 | ||||
Goodwill, Impairment Loss | $ 1,000 | ||||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Aevenia, Inc. [Member] | |||||
Proceeds from Divestiture of Businesses | $ 22,300 | ||||
Discontinued Operation Working Capital Received | 600 | ||||
Disposal Group, Including Discontinued Operation, Selling Expenses | $ 800 | ||||
Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | Foley and Aevenia [Member] | |||||
Discontinued Operation, Cost Estimates, Pretax Charges | $ 4,400 |
Note 15 - Discontinued Opera116
Note 15 - Discontinued Operations - Results of Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Expenses | $ (533) | $ (422) | $ 31,635 |
Income Tax (Benefit) Expense | 213 | 138 | (1,539) |
Net (Loss) Income | 320 | 284 | 756 |
Operating Revenues | 24,623 | ||
Asset Impairment Charge | 1,000 | ||
Interest Expense | |||
Other Income (Deductions) | 69 | ||
Net (Loss) Income from Operations | 320 | 284 | (6,404) |
(Loss) Gain on Disposition Before Taxes | 11,690 | ||
Income Tax (Benefit) Expense on Disposition | 0 | 0 | 4,530 |
Net Gain on Disposition | 7,160 | ||
Current Liabilities | 492 | 1,363 | |
Liabilities of Discontinued Operations | 492 | 1,363 | |
Foley Company [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||
Operating Expenses | 233 | 250 | 26,839 |
Income Tax (Benefit) Expense | (93) | (136) | (921) |
Net (Loss) Income | (140) | (114) | (5,489) |
Operating Revenues | 21,625 | ||
Asset Impairment Charge | 1,000 | ||
Interest Expense | 177 | ||
Other Income (Deductions) | (42) | ||
Net (Loss) Income from Operations | (5,512) | ||
(Loss) Gain on Disposition Before Taxes | (204) | ||
Income Tax (Benefit) Expense on Disposition | (227) | ||
Net Gain on Disposition | 23 | ||
Aevenia, Inc. [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||
Operating Expenses | 4,532 | ||
Income Tax (Benefit) Expense | 5 | (638) | |
Net (Loss) Income | (5) | 6,216 | |
Operating Revenues | 2,998 | ||
Asset Impairment Charge | |||
Interest Expense | 27 | ||
Other Income (Deductions) | 2 | ||
Net (Loss) Income from Operations | (921) | ||
(Loss) Gain on Disposition Before Taxes | 11,894 | ||
Income Tax (Benefit) Expense on Disposition | 4,757 | ||
Net Gain on Disposition | 7,137 | ||
Wind Tower Business [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||
Operating Expenses | (460) | (757) | (462) |
Income Tax (Benefit) Expense | 184 | 303 | 229 |
Net (Loss) Income | 276 | 454 | 344 |
Operating Revenues | |||
Asset Impairment Charge | |||
Interest Expense | |||
Other Income (Deductions) | 111 | ||
Net (Loss) Income from Operations | 344 | ||
(Loss) Gain on Disposition Before Taxes | |||
Income Tax (Benefit) Expense on Disposition | |||
Net Gain on Disposition | |||
Current Liabilities | 130 | 589 | |
Liabilities of Discontinued Operations | 130 | 589 | |
Dock and Boatlift Business [Member] | Discontinued Operations, Held-for-sale or Disposed of by Sale [Member] | |||
Operating Expenses | (306) | 85 | 966 |
Income Tax (Benefit) Expense | 122 | (34) | (386) |
Net (Loss) Income | 184 | (51) | (580) |
Operating Revenues | |||
Asset Impairment Charge | |||
Interest Expense | |||
Other Income (Deductions) | |||
Net (Loss) Income from Operations | (580) | ||
(Loss) Gain on Disposition Before Taxes | |||
Income Tax (Benefit) Expense on Disposition | |||
Net Gain on Disposition | |||
Current Liabilities | 362 | 774 | |
Liabilities of Discontinued Operations | 362 | 774 | |
Intercompany Transactions Adjustment [Member] | |||
Operating Expenses | (240) | ||
Income Tax (Benefit) Expense | 177 | ||
Net (Loss) Income | 265 | ||
Operating Revenues | |||
Asset Impairment Charge | |||
Interest Expense | (204) | ||
Other Income (Deductions) | (2) | ||
Net (Loss) Income from Operations | 265 | ||
(Loss) Gain on Disposition Before Taxes | |||
Income Tax (Benefit) Expense on Disposition | |||
Net Gain on Disposition |
Note 15 - Discontinued Opera117
Note 15 - Discontinued Operations - Schedule of Warranty Reserves (Details) - USD ($) | 12 Months Ended | 36 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2017 | |
Balance | $ 1,369,000 | $ 2,103,000 | |
Additional Provision for Warranties Made During the Year | |||
Settlements Made During the Year | (112,000) | (24,000) | $ 0 |
Decrease in Warranty Estimates for Prior Years | (760,000) | (710,000) | |
Balance | $ 497,000 | $ 1,369,000 | $ 497,000 |
Note 16 - Subsequent Events (De
Note 16 - Subsequent Events (Details Textual) - shares | Feb. 05, 2018 | Feb. 02, 2017 | Dec. 31, 2017 |
Stock Performance Awards [Member] | Executive Officer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | |||
Period Specified for Average Adjusted Return | 3 years | ||
The 2014 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,900,000 | ||
The 2014 Stock Incentive Plan [Member] | Stock Performance Awards [Member] | Executive Officer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 59,500 | ||
Period Specified for Average Adjusted Return | 3 years | ||
Number of Trading Days | 20 days | ||
Subsequent Event [Member] | The 2014 Stock Incentive Plan [Member] | Stock Performance Awards [Member] | |||
Period Specified for Average Adjusted Return | 3 years | ||
Number of Trading Days | 20 days | ||
Subsequent Event [Member] | The 2014 Stock Incentive Plan [Member] | Stock Performance Awards [Member] | Executive Officer [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 54,000 | ||
Actual Payment, Percentage of Target Amount | 150.00% | ||
Number of Shares Authorized for Actual Payment | 81,000 | ||
Subsequent Event [Member] | The 2014 Stock Incentive Plan [Member] | Stock Performance Awards [Member] | Executive Officer [Member] | Minimum [Member] | |||
Actual Payment, Percentage of Target Amount | 0.00% | ||
Subsequent Event [Member] | The 2014 Stock Incentive Plan [Member] | Stock Performance Awards [Member] | Executive Officer [Member] | Share-based Compensation Award, Tranche One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 27,000 | ||
Subsequent Event [Member] | The 2014 Stock Incentive Plan [Member] | Stock Performance Awards [Member] | Executive Officer [Member] | Share-based Compensation Award, Tranche Two [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 27,000 |
Note 16 - Subsequent Events - S
Note 16 - Subsequent Events - Summary of Stock Incentive Awards to Executive Officers Under the 2014 Stock Incentive Plan (Details) - Subsequent Event [Member] - The 2014 Stock Incentive Plan [Member] - Restricted Stock Units (RSUs) [Member] - Executive Officer [Member] | Feb. 05, 2018$ / sharesshares |
Share-based Compensation Award, Tranche One [Member] | |
Units granted (in shares) | shares | 15,200 |
Grant-date fair value per award (in dollars per share) | $ / shares | $ 41.325 |
Vesting date | Feb. 6, 2022 |
Share-based Compensation Award, Tranche Two [Member] | |
Units granted (in shares) | shares | 54,000 |
Grant-date fair value per award (in dollars per share) | $ / shares | $ 35.73 |
Vesting date | Dec. 31, 2020 |
Note 16 - Subsequent Events 120
Note 16 - Subsequent Events - Summary of Stock Incentive Awards to Executive Officers Under the 2014 Stock Incentive Plan (Details) (Parentheticals) - The 2014 Stock Incentive Plan [Member] - Restricted Stock Units (RSUs) [Member] | Feb. 05, 2018 | Dec. 31, 2017 |
Vesting period (Year) | 4 years | |
Subsequent Event [Member] | Executive Officer [Member] | Share-based Compensation Award, Tranche One [Member] | ||
Vesting percentage | 25.00% | |
Subsequent Event [Member] | Executive Officer [Member] | Share-based Compensation Award, Tranche Two [Member] | ||
Vesting period (Year) | 4 years |
Schedule 1 - Condensed Finan121
Schedule 1 - Condensed Financial Information of Registrant - Condensed Balance Sheets, Parent Company (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||||
Cash and Cash Equivalents | $ 16,216 | |||
Accounts Receivable | 68,466 | 68,242 | ||
Accounts Receivable from Subsidiaries | 2,098 | 1,706 | ||
Interest Receivable from Subsidiaries | 117 | 141 | ||
Income Taxes Receivable | 1,181 | 662 | ||
Notes Receivable from Subsidiaries | 1,752 | 1,671 | ||
Other | 12,491 | 8,144 | ||
Total Current Assets | 239,127 | 208,015 | ||
Investments in Subsidiaries | 8,629 | 8,417 | ||
Notes Receivable from Subsidiaries | 79,611 | 79,843 | ||
Other Assets | 36,006 | 34,104 | ||
Total Assets | 2,004,278 | 1,912,385 | $ 1,818,683 | |
Current Liabilities | ||||
Current Maturities of Long-Term Debt | 186 | 33,201 | ||
Accounts Payable to Subsidiaries | 6 | 5,958 | ||
Notes Payable to Subsidiaries | 61,908 | 38,519 | ||
Other | 11,389 | 12,083 | ||
Total Current Liabilities | 256,653 | 215,671 | ||
Other Noncurrent Liabilities | 22,769 | 21,706 | ||
Commitments and Contingencies | ||||
Total Long-Term Debt net of Unamortized Debt Issuance Costs | 490,380 | 505,341 | ||
Common Shareholder Equity | 197,787 | 196,741 | ||
Capitalization, Long-term Debt and Equity | 1,187,272 | 1,175,445 | ||
Total Liabilities and Equity | 2,004,278 | 1,912,385 | ||
Parent Company [Member] | ||||
Current Assets | ||||
Cash and Cash Equivalents | 16,371 | 6,218 | ||
Accounts Receivable | 12 | |||
Accounts Receivable from Subsidiaries | 2,098 | 1,706 | ||
Interest Receivable from Subsidiaries | 117 | 141 | ||
Income Taxes Receivable | 662 | |||
Notes Receivable from Subsidiaries | 1,752 | 1,671 | ||
Other | 1,130 | 936 | ||
Total Current Assets | 21,468 | 11,346 | ||
Investments in Subsidiaries | 724,613 | 692,723 | ||
Notes Receivable from Subsidiaries | 79,611 | 79,843 | ||
Deferred Income Taxes | 27,923 | 35,387 | ||
Other Assets | 31,559 | 29,079 | ||
Total Assets | 885,174 | 848,378 | ||
Current Liabilities | ||||
Current Maturities of Long-Term Debt | 186 | 231 | ||
Accounts Payable to Subsidiaries | 6 | 5,958 | ||
Notes Payable to Subsidiaries | 61,908 | 38,519 | ||
Other | 7,799 | 5,838 | ||
Total Current Liabilities | 69,899 | 50,546 | ||
Other Noncurrent Liabilities | 38,319 | 32,556 | ||
Total Long-Term Debt net of Unamortized Debt Issuance Costs | 80,064 | 95,172 | ||
Common Shareholder Equity | 696,892 | 670,104 | ||
Capitalization, Long-term Debt and Equity | 776,956 | 765,276 | ||
Total Liabilities and Equity | $ 885,174 | $ 848,378 |
Schedule 1 - Condensed Finan122
Schedule 1 - Condensed Financial Information of Registrant - Condensed Statements of Income, Parent Company (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Loss | |||
Operating Expenses | $ 723,216 | $ 692,440 | $ 670,590 |
Operating Income (Loss) | 126,134 | 111,099 | 109,214 |
Other Income (Expense) | |||
Interest Charges | (29,604) | (31,886) | (31,160) |
Total Other Income | 2,632 | 2,905 | 2,177 |
Income Tax Expense – Continuing Operations | 27,043 | 20,081 | 21,642 |
Net Income | 72,439 | 62,321 | 59,345 |
Parent Company [Member] | |||
Operating Loss | |||
Operating Expenses | 8,353 | 9,689 | 10,188 |
Operating Income (Loss) | (8,353) | (9,689) | (10,188) |
Other Income (Expense) | |||
Equity Income in Earnings of Subsidiaries | 82,715 | 67,047 | 66,067 |
Interest Charges | (4,270) | (6,817) | (6,786) |
Interest Charges to Subsidiaries | (244) | (173) | (193) |
Interest Income from Subsidiaries | 2,848 | 4,897 | 4,786 |
Other Income | 1,054 | 1,621 | 421 |
Total Other Income | 82,103 | 66,575 | 64,295 |
Income Before Income Taxes | 73,750 | 56,886 | 54,107 |
Income Tax Expense – Continuing Operations | 1,311 | (5,435) | (5,238) |
Net Income | $ 72,439 | $ 62,321 | $ 59,345 |
Schedule 1 - Condensed Finan123
Schedule 1 - Condensed Financial Information of Registrant - Condensed Statements of Cash Flows, Parent Company (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities | |||
Net Cash Provided by Operating Activities | $ 173,577 | $ 163,386 | $ 117,540 |
Cash Flows from Investing Activities | |||
Return of Capital (Investment in Subsidiaries) | (4,168) | (4,402) | (6,302) |
Net Cash Used in Investing Activities | (132,590) | (159,324) | (155,970) |
Cash Flows from Financing Activities | |||
Change in Checks Written in Excess of Cash | 2,434 | (3,363) | 2,857 |
Net Short-Term Borrowings (Repayments) | 69,488 | (37,789) | 69,818 |
Proceeds from Issuance of Common Stock | 4,349 | 43,873 | 13,782 |
Payments for Retirement of Capital Stock | (1,799) | (104) | (1,596) |
Proceeds from the Issuance of Long-Term Debt | 130,000 | ||
Short-Term and Long-Term Debt Issuance Expenses | (380) | (888) | (312) |
Payments for Retirement of Long-Term Debt | (48,231) | (87,547) | (212) |
Dividends Paid and Other Distributions | (50,632) | (48,244) | (46,223) |
Net Cash (Used in) Provided by Financing Activities | (24,771) | (4,062) | 38,430 |
Net Change in Cash and Cash Equivalents | 16,216 | ||
Cash and Cash Equivalents at Beginning of Period | |||
Cash and Cash Equivalents at End of Period | 16,216 | ||
Parent Company [Member] | |||
Cash Flows from Operating Activities | |||
Net Cash Provided by Operating Activities | 50,205 | 83,296 | 53,958 |
Cash Flows from Investing Activities | |||
Return of Capital (Investment in Subsidiaries) | 9,912 | (88,079) | |
Debt Repaid by (Issued to) Subsidiaries | 151 | (3,309) | (12,592) |
Cash (Used in) Provided by Investing Activities | (121) | 106 | (11) |
Net Cash Used in Investing Activities | 30 | 6,709 | (100,682) |
Cash Flows from Financing Activities | |||
Change in Checks Written in Excess of Cash | (428) | 213 | |
Net Short-Term Borrowings (Repayments) | (59,666) | 48,812 | |
Borrowings from (Repayments to) Subsidiaries | 23,389 | (60,948) | 32,249 |
Proceeds from Issuance of Common Stock | 4,349 | 44,435 | 14,233 |
Common Stock Issuance Expenses | (562) | (451) | |
Payments for Retirement of Capital Stock | (1,799) | (104) | (1,596) |
Proceeds from the Issuance of Long-Term Debt | 130,000 | ||
Short-Term and Long-Term Debt Issuance Expenses | (158) | (723) | (312) |
Payments for Retirement of Long-Term Debt | (15,231) | (87,547) | (201) |
Dividends Paid and Other Distributions | (50,632) | (48,244) | (46,223) |
Net Cash (Used in) Provided by Financing Activities | (40,082) | (83,787) | $ 46,724 |
Net Change in Cash and Cash Equivalents | 10,153 | 6,218 | |
Cash and Cash Equivalents at Beginning of Period | 6,218 | ||
Cash and Cash Equivalents at End of Period | $ 16,371 | $ 6,218 |
Schedule 1 - Condensed Finan124
Schedule 1 - Condensed Financial Information of Registrant - Related Party Transactions (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts Receivable | $ 2,098 | $ 1,706 |
Interest Receivable | 117 | 141 |
Current Notes Receivable | 1,752 | 1,671 |
Long-Term Notes Receivable | 79,611 | 79,843 |
Accounts Payable | 6 | 5,958 |
Current Notes Payable | 61,908 | 38,519 |
Otter Tail Corporation [Member] | Otter Tail Power Company [Member] | ||
Accounts Receivable | 2,067 | 1,572 |
Interest Receivable | ||
Current Notes Receivable | ||
Long-Term Notes Receivable | ||
Accounts Payable | 6 | 10 |
Current Notes Payable | ||
Otter Tail Corporation [Member] | Vinyltech Corporation [Member] | ||
Accounts Receivable | 2 | 3 |
Interest Receivable | 17 | 20 |
Current Notes Receivable | ||
Long-Term Notes Receivable | 11,500 | 11,500 |
Accounts Payable | ||
Current Notes Payable | 20,603 | 15,951 |
Otter Tail Corporation [Member] | Northern Pipe Products, Inc. [Member] | ||
Accounts Receivable | 4 | |
Interest Receivable | 8 | 10 |
Current Notes Receivable | ||
Long-Term Notes Receivable | 5,711 | 5,943 |
Accounts Payable | ||
Current Notes Payable | 8,186 | 6,560 |
Otter Tail Corporation [Member] | BTD Manufacturing, Inc. [Member] | ||
Accounts Receivable | ||
Interest Receivable | 77 | 92 |
Current Notes Receivable | ||
Long-Term Notes Receivable | 52,000 | 52,000 |
Accounts Payable | ||
Current Notes Payable | 7,260 | 2,342 |
Otter Tail Corporation [Member] | Wind Tower Business [Member] | ||
Accounts Receivable | ||
Interest Receivable | ||
Current Notes Receivable | 1,461 | 1,441 |
Long-Term Notes Receivable | ||
Accounts Payable | ||
Current Notes Payable | ||
Otter Tail Corporation [Member] | Dock and Boatlift Business [Member] | ||
Accounts Receivable | ||
Interest Receivable | ||
Current Notes Receivable | 291 | 230 |
Long-Term Notes Receivable | ||
Accounts Payable | ||
Current Notes Payable | ||
Otter Tail Corporation [Member] | T. O. Plastics, Inc. [Member] | ||
Accounts Receivable | ||
Interest Receivable | 15 | 19 |
Current Notes Receivable | ||
Long-Term Notes Receivable | 10,400 | 10,400 |
Accounts Payable | ||
Current Notes Payable | 13,446 | 12,378 |
Otter Tail Corporation [Member] | Varistar Corporation [Member] | ||
Accounts Receivable | 60 | |
Interest Receivable | ||
Current Notes Receivable | ||
Long-Term Notes Receivable | ||
Accounts Payable | 5,948 | |
Current Notes Payable | 12,413 | 1,288 |
Otter Tail Corporation [Member] | Otter Tail Assurance Limited [Member] | ||
Accounts Receivable | 25 | 71 |
Interest Receivable | ||
Current Notes Receivable | ||
Long-Term Notes Receivable | ||
Accounts Payable | ||
Current Notes Payable |
Schedule 1 - Condensed Finan125
Schedule 1 - Condensed Financial Information of Registrant - Dividends (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Dividends Paid to Parent by Subsidiaries | $ 50,571 | $ 77,779 | $ 46,188 |