Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0001466593 | |
Entity Registrant Name | Otter Tail Corp | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 0-53713 | |
Entity Incorporation, State or Country Code | MN | |
Entity Tax Identification Number | 27-0383995 | |
Entity Address, Address Line One | 215 South Cascade Street, Box 496 | |
Entity Address, City or Town | Fergus Falls | |
Entity Address, State or Province | MN | |
Entity Address, Postal Zip Code | 56538-0496 | |
City Area Code | 866 | |
Local Phone Number | 410-8780 | |
Title of 12(b) Security | Common Shares, par value $5.00 per share | |
Trading Symbol | OTTR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 40,872,064 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and Cash Equivalents | $ 39,512 | $ 21,199 |
Accounts Receivable: | ||
Trade—Net | 84,197 | 77,947 |
Other | 6,452 | 8,773 |
Inventories | 89,754 | 97,851 |
Unbilled Receivables | 19,019 | 20,911 |
Income Taxes Receivable | 0 | 1,487 |
Regulatory Assets | 19,958 | 21,650 |
Other | 8,031 | 5,042 |
Total Current Assets | 266,923 | 254,860 |
Investments | 10,581 | 9,894 |
Other Assets | 40,138 | 40,196 |
Goodwill | 37,572 | 37,572 |
Other Intangibles—Net | 10,703 | 11,290 |
Regulatory Assets | 141,063 | 144,138 |
Right of Use Assets - Operating Leases | 20,571 | 21,851 |
Plant | ||
Electric Plant in Service | 2,211,082 | 2,212,884 |
Nonelectric Operations | 252,933 | 247,356 |
Construction Work in Progress | 321,621 | 185,238 |
Total Gross Plant | 2,785,636 | 2,645,478 |
Less Accumulated Depreciation and Amortization | 923,948 | 891,684 |
Net Plant | 1,861,688 | 1,753,794 |
Total Assets | 2,389,239 | 2,273,595 |
Current Liabilities | ||
Short-Term Debt | 41,239 | 6,000 |
Current Maturities of Long-Term Debt | 261 | 183 |
Accounts Payable | 133,967 | 120,775 |
Accrued Salaries and Wages | 16,891 | 22,730 |
Accrued Taxes | 12,193 | 17,525 |
Regulatory Liabilities | 13,023 | 7,480 |
Current Operating Lease Liabilities | 4,543 | 4,136 |
Other Accrued Liabilities | 10,806 | 10,912 |
Total Current Liabilities | 232,923 | 189,741 |
Pensions Benefit Liability | 86,657 | 98,970 |
Other Postretirement Benefits Liability | 71,845 | 71,437 |
Long-Term Operating Lease Liabilities | 16,584 | 18,193 |
Other Noncurrent Liabilities | 34,647 | 30,833 |
Commitments and Contingencies (note 9) | ||
Deferred Credits | ||
Deferred Income Taxes | 141,538 | 131,941 |
Deferred Tax Credits | 17,969 | 18,626 |
Regulatory Liabilities | 238,160 | 239,906 |
Other | 2,472 | 2,885 |
Total Deferred Credits | 400,139 | 393,358 |
Capitalization | ||
Long-Term Debt—Net | 724,389 | 689,581 |
Common Shares, Par Value $5 Per Share—Authorized, 50,000,000 Shares; Outstanding, 2020—40,848,828 Shares; 2019—40,157,591 Shares | 204,244 | 200,788 |
Premium on Common Shares | 390,141 | 364,790 |
Retained Earnings | 233,705 | 222,341 |
Accumulated Other Comprehensive Loss | (6,035) | (6,437) |
Total Common Equity | 822,055 | 781,482 |
Total Capitalization | 1,546,444 | 1,471,063 |
Total Liabilities and Equity | 2,389,239 | 2,273,595 |
Cumulative Preferred Shares [Member] | ||
Capitalization | ||
Cumulative Shares | 0 | 0 |
Cumulative Preference Shares [Member] | ||
Capitalization | ||
Cumulative Shares | $ 0 | $ 0 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2020 | Dec. 31, 2019 |
Comm 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) | 40,848,828 | 40,157,591 |
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 (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Operating Revenues: | ||||
Total Operating Revenues | $ 192,756 | $ 229,203 | $ 427,503 | $ 475,175 |
Operating Expenses | ||||
Production Fuel – Electric | 8,788 | 8,296 | 22,523 | 27,216 |
Electric Operation and Maintenance Expenses | 33,179 | 39,856 | 73,794 | 78,238 |
Cost of Products Sold (depreciation included below) | 73,832 | 97,996 | 159,711 | 188,578 |
Other Nonelectric Expenses | 10,762 | 13,262 | 22,662 | 26,739 |
Depreciation and Amortization | 20,436 | 19,441 | 40,835 | 38,572 |
Property Taxes – Electric | 4,168 | 3,900 | 8,268 | 7,859 |
Total Operating Expenses | 164,847 | 202,384 | 360,305 | 408,787 |
Operating Income | 27,909 | 26,819 | 67,198 | 66,388 |
Interest Charges | 8,662 | 7,825 | 16,785 | 15,651 |
Nonservice Cost Components of Postretirement Benefits | 868 | 1,075 | 1,739 | 2,110 |
Other Income | 2,410 | 850 | 2,021 | 2,094 |
Income Before Income Taxes | 20,789 | 18,769 | 50,695 | 50,721 |
Income Tax Expense | 3,808 | 3,343 | 9,446 | 8,971 |
Net Income | $ 16,981 | $ 15,426 | $ 41,249 | $ 41,750 |
Average Number of Common Shares Outstanding – Basic (in shares) | 40,513,286 | 39,712,036 | 40,365,214 | 39,684,679 |
Average Number of Common Shares Outstanding – Diluted (in shares) | 40,676,761 | 39,917,831 | 40,560,549 | 39,910,499 |
Basic Earnings Per Common Share (in dollars per share) | $ 0.42 | $ 0.39 | $ 1.02 | $ 1.05 |
Diluted Earnings Per Common Share (in dollars per share) | $ 0.42 | $ 0.39 | $ 1.02 | $ 1.05 |
Electricity [Member] | ||||
Operating Revenues: | ||||
Revenues from Contracts with Customers | $ 97,921 | $ 101,861 | $ 217,878 | $ 231,006 |
Changes in Accrued Revenues under Alternative Revenue Programs | 209 | 369 | 122 | (680) |
Total Electric Revenues | 98,130 | 102,230 | 218,000 | 230,326 |
Product [Member] | ||||
Operating Revenues: | ||||
Revenues from Contracts with Customers | 94,626 | 126,973 | 209,503 | 244,849 |
Electricity, Purchased [Member] | ||||
Operating Expenses | ||||
Purchased Power – Electric System Use | $ 13,682 | $ 19,633 | $ 32,512 | $ 41,585 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Net Income | $ 16,981 | $ 15,426 | $ 41,249 | $ 41,750 |
Unrealized Gains on Available-for-Sale Securities: | ||||
Reversal of Previously Recognized Losses (Gains) Realized on Sale of Investments and Included in Other Income During Period | 32 | (4) | 34 | (4) |
Unrealized Gains Arising During Period | 92 | 66 | 218 | 157 |
Income Tax Expense | (26) | (13) | (53) | (32) |
Change in Unrealized Gains on Available-for-Sale Securities – net-of-tax | 98 | 49 | 199 | 121 |
Pension and Postretirement Benefit Plans: | ||||
Amortization of Unrecognized Postretirement Benefit Losses and Costs (note 11) | 137 | 129 | 275 | 259 |
Income Tax Expense | (36) | (33) | (72) | (67) |
Pension and Postretirement Benefit Plans – net-of-tax | 101 | 96 | 203 | 192 |
Total Other Comprehensive Income | 199 | 145 | 402 | 313 |
Total Comprehensive Income | $ 17,180 | $ 15,571 | $ 41,651 | $ 42,063 |
Consolidated Statements of Comm
Consolidated Statements of Common Shareholders' Equity (Unaudited) - 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, 2018 | 39,664,884 | ||||
Balance at Dec. 31, 2018 | $ 198,324 | $ 344,250 | $ 190,433 | $ (4,144) | $ 728,863 |
Common Stock Issuances, Net of Expenses (in shares) | 145,242 | ||||
Common Stock Issuances, Net of Expenses | $ 727 | 17 | |||
Net Income | 41,750 | 41,750 | |||
Other Comprehensive Income | 313 | 313 | |||
Employee Stock Incentive Plan Expense | 3,944 | 3,944 | |||
Common Dividends | (27,852) | (27,852) | |||
Common Stock Issuances, Net of Expenses | (710) | ||||
Common Stock Retirements (in shares) | (55,224) | ||||
Common Stock Retirements | $ (276) | (2,454) | (2,730) | ||
ASU 2018-02 2017 TCJA Stranded Tax Transfer | 784 | (784) | |||
Balance (in shares) at Jun. 30, 2019 | 39,754,902 | ||||
Balance at Jun. 30, 2019 | $ 198,775 | 345,030 | 205,115 | (4,615) | 744,305 |
Balance (in shares) at Mar. 31, 2019 | 39,729,708 | ||||
Balance at Mar. 31, 2019 | $ 198,649 | 342,991 | 203,619 | (4,760) | 740,499 |
Common Stock Issuances, Net of Expenses (in shares) | 25,194 | ||||
Common Stock Issuances, Net of Expenses | $ 126 | 17 | |||
Net Income | 15,426 | 15,426 | |||
Other Comprehensive Income | 145 | 145 | |||
Employee Stock Incentive Plan Expense | 2,148 | 2,148 | |||
Common Dividends | (13,930) | (13,930) | |||
Common Stock Issuances, Net of Expenses | (109) | ||||
Balance (in shares) at Jun. 30, 2019 | 39,754,902 | ||||
Balance at Jun. 30, 2019 | $ 198,775 | 345,030 | 205,115 | (4,615) | 744,305 |
Balance (in shares) at Dec. 31, 2019 | 40,157,591 | ||||
Balance at Dec. 31, 2019 | $ 200,788 | 364,790 | 222,341 | (6,437) | 781,482 |
Common Stock Issuances, Net of Expenses (in shares) | 729,454 | ||||
Common Stock Issuances, Net of Expenses | $ 3,647 | 23,222 | 26,869 | ||
Net Income | 41,249 | 41,249 | |||
Other Comprehensive Income | 402 | 402 | |||
Employee Stock Incentive Plan Expense | 4,007 | 4,007 | |||
Common Dividends | (29,885) | (29,885) | |||
Common Stock Retirements (in shares) | (38,217) | ||||
Common Stock Retirements | $ (191) | (1,878) | (2,069) | ||
Balance (in shares) at Jun. 30, 2020 | 40,848,828 | ||||
Balance at Jun. 30, 2020 | $ 204,244 | 390,141 | 233,705 | (6,035) | 822,055 |
Balance (in shares) at Mar. 31, 2020 | 40,376,448 | ||||
Balance at Mar. 31, 2020 | $ 201,882 | 372,669 | 231,702 | (6,234) | 800,019 |
Common Stock Issuances, Net of Expenses (in shares) | 472,380 | ||||
Common Stock Issuances, Net of Expenses | $ 2,362 | 16,235 | 18,597 | ||
Net Income | 16,981 | 16,981 | |||
Other Comprehensive Income | 199 | 199 | |||
Employee Stock Incentive Plan Expense | 1,237 | 1,237 | |||
Common Dividends | (14,978) | (14,978) | |||
Balance (in shares) at Jun. 30, 2020 | 40,848,828 | ||||
Balance at Jun. 30, 2020 | $ 204,244 | $ 390,141 | $ 233,705 | $ (6,035) | $ 822,055 |
Consolidated Statements of Co_2
Consolidated Statements of Common Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Retained Earnings [Member] | ||||
Dividends declared per common share (in dollars per share) | $ 0.37 | $ 0.35 | ||
Dividends declared per common share (in dollars per share) | $ 0.74 | $ 0.70 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating Activities | ||
Net Income | $ 41,249 | $ 41,750 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 40,835 | 38,572 |
Deferred Tax Credits | (657) | (674) |
Deferred Income Taxes | 9,472 | 960 |
Change in Deferred Debits and Other Assets | 5,565 | 3,884 |
Discretionary Contribution to Pension Plan | (11,200) | (10,000) |
Change in Noncurrent Liabilities and Deferred Credits | 5,178 | 11,942 |
Allowance for Equity/Other Funds Used During Construction | (1,858) | (688) |
Stock Compensation Expense | 4,007 | 3,944 |
Other—Net | (147) | 276 |
Cash (Used for) Provided by Current Assets and Current Liabilities: | ||
Change in Receivables | (3,929) | (30,478) |
Change in Inventories | 8,097 | 410 |
Change in Other Current Assets | (1,066) | 2,870 |
Change in Payables and Other Current Liabilities | (23,562) | 222 |
Change in Interest and Income Taxes Receivable/Payable | 1,917 | 6,297 |
Net Cash Provided by Operating Activities | 73,901 | 69,287 |
Investing Activities | ||
Capital Expenditures | (119,830) | (54,012) |
Proceeds from Disposal of Noncurrent Assets | 3,953 | 3,405 |
Cash Used for Investments and Other Assets | (5,128) | (4,776) |
Net Cash Used in Investing Activities | (121,005) | (55,383) |
Financing Activities | ||
Change in Checks Written in Excess of Cash | 550 | (1,120) |
Net Short-Term Borrowings | 35,239 | 18,003 |
Proceeds from Issuance of Common Stock | 27,225 | 0 |
Common Stock Issuance Expenses | (374) | 0 |
Payments for Shares Withheld for Employee Tax Obligations | (2,069) | (2,730) |
Proceeds from Issuance of Long-Term Debt | 35,000 | 0 |
Short-Term and Long-Term Debt Issuance Expenses | (179) | 0 |
Payments for Retirement of Long-Term Debt | (90) | (84) |
Dividends Paid | (29,885) | (27,852) |
Net Cash Provided by (Used in) Financing Activities | 65,417 | (13,783) |
Net Change in Cash and Cash Equivalents | 18,313 | 121 |
Cash and Cash Equivalents at Beginning of Period | 21,199 | 861 |
Cash and Cash Equivalents at End of Period | $ 39,512 | $ 982 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Significant Accounting Policies and New Accounting Pronouncements [Text Block] | 1. Revenue Recognition Due to the diverse business operations of the Company, recognition of revenue from contracts with customers depends on the product produced and sold or service performed. The Company recognizes revenue from contracts with customers at prices that are fixed or determinable as evidenced by an agreement with the customer, when the Company has met its performance obligation under the contract and it is probable that the Company will collect the amount to which it is entitled in exchange for the goods or services transferred or to be transferred to the customer. Depending on the product produced and sold or service performed and the terms of the agreement with the customer, the Company recognizes revenue either over time, in the case of delivery or transmission of electricity or related services or the production and storage of certain custom-made products, or at a point in time for the delivery of standardized products and other products made to the customer’s specifications where the terms of the contract require transfer of the completed product. Provisions for sales returns, early payment terms discounts, volume-based variable pricing incentives and warranty costs are recorded as reductions to revenue at the time revenue is recognized based on customer history, historical information and current trends. In addition to recognizing revenue from contracts with customers under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers 606 980, Regulated Operations 980 not Electric Segment Revenues two 1 2 Most Electric segment revenues are earned from the generation, transmission and sale of electricity to retail customers at rates approved by regulatory commissions in the states where Otter Tail Power Company (OTP) provides service. OTP also earns revenue from the transmission of electricity for others over the transmission assets it owns separately, or jointly with other transmission service providers, under rate tariffs established by the independent transmission system operator and approved by the Federal Energy Regulatory Commission (FERC). A third ARPs provide for adjustments to rates outside of a general rate case proceeding, usually as a surcharge applied to future billings typically through the use of rate riders subject to periodic adjustments, to encourage or incentivize investments in certain areas such as conservation, renewable energy, pollution reduction or control, improved infrastructure of the transmission grid or other programs that provide benefits to the general public under public policy, laws or regulations. ARP riders generally provide for the recovery of specified costs and investments and include an incentive component to provide the regulated utility with a return on amounts invested. OTP has recovered costs and earned incentives or returns on investments subject to recovery under several ARP rate riders, including: ● In Minnesota: Transmission Cost Recovery (TCR), Environmental Cost Recovery (ECR), Renewable Resource Adjustment (RRA), Energy Intensive Trade Exposed and Conservation Improvement Program riders. ● In North Dakota: TCR, ECR, Renewable Resource Cost Recovery and Generation Cost Recovery (GCR) riders. ● In South Dakota: TCR, ECR, Phase-In Rate Plan and Energy Efficiency Plan (conservation) riders. OTP accrues ARP revenue based on costs incurred, investments made and returns on those investments that qualify for recovery through established riders. Amounts billed under riders in effect at the time of the billing are included in revenues from contracts with customers net of amounts billed that are subject to refund through future rider adjustments. Amounts accrued and subject to recovery through future rider rate updates and adjustments are reported as changes in accrued revenues under ARPs on a separate line in the revenue section of the Company’s consolidated statement of income. See table in note 3 three six June 30, 2020 2019. Manufacturing Segment Revenues no Plastics Segment Revenues no one See operating revenue table in note 2 three six June 30, 2020 2019. Agreements Subject to Legally Enforceable Netting Arrangements OTP has certain derivative contracts that are designated as normal purchases. 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 1 Level 2 2 Level 3 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 June 30, 2020 December 31, 2019: June 30 , 20 20 (in thousands) Level 1 Level 2 Level 3 Assets: Investments: Equity Funds – Held by Captive Insurance Company $ 1,450 Corporate Debt Securities – Held by Captive Insurance Company $ 3,062 Government-Backed and Government-Sponsored Enterprises’ Debt Securities – Held by Captive Insurance Company 5,960 Other Assets: Money Market and Mutual Funds –Retirement Plans 1,560 Total Assets $ 3,010 $ 9,022 December 31, 20 19 (in thousands) Level 1 Level 2 Level 3 Assets: Investments: Equity Funds – Held by Captive Insurance Company $ 1,586 Corporate Debt Securities – Held by Captive Insurance Company $ 2,124 Government-Backed and Government-Sponsored Enterprises’ Debt Securities – Held by Captive Insurance Company 6,060 Other Assets: Money Market and Mutual Funds –Retirement Plans 2,363 Total Assets $ 3,949 $ 8,184 The level 2 third may Coyote Station Lignite Supply Agreement – Variable Interest Entity In October 2012 May 2016 December 2040. May 2016 December 2040 No none not If the LSA terminates prior to the expiration of its term or the production period terminates prior to December 31, 2040 June 30, 2020. Inventories Inventories, valued at the lower of cost or net realizable value, consist of the following: June 30, December 31, (in thousands) 2020 2019 Finished Goods $ 26,190 $ 31,863 Work in Process 14,418 16,508 Raw Material, Fuel and Supplies 49,146 49,480 Total Inventories $ 89,754 $ 97,851 Intangible Assets 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 The following table summarizes the components of the Company’s intangible assets at June 30, 2020 December 31, 2019: June 30 , 20 20 (in thousands) Gross Carrying Accumulated Net Carrying Amount Remaining Amortizable Intangible Assets: Customer Relationships $ 22,491 $ 11,820 $ 10,671 82 - 182 Other 179 147 32 2 - 39 Total $ 22,670 $ 11,967 $ 10,703 December 31, 20 19 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Remaining Amortization Periods (months) Amortizable Intangible Assets: Customer Relationships $ 22,491 $ 11,259 $ 11,232 88 - 188 Other 179 121 58 8 - 45 Total $ 22,670 $ 11,380 $ 11,290 The amortization expense for these intangible assets was: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Amortization Expense – Intangible Assets $ 291 $ 296 $ 587 $ 592 The estimated annual amortization expense for these intangible assets for the next five (in thousands) 2020 2021 2022 2023 2024 Estimated Amortization Expense – Intangible Assets $ 1,140 $ 1,105 $ 1,105 $ 1,104 $ 1,099 Supplemental Disclosures of Cash Flow Information As of June 30, (in thousands) 2020 2019 Noncash Investing Activities: Transactions Related to Capital Additions not Settled in Cash $ 61,925 $ 16,841 New Accounting Standards Adopted ASU 2016 13 June 2016 No. 2016 13, Financial Instruments—Credit Losses (Topic 326 326 , December 31, 2019. may 326 first 2020. not not Accounting Policy Trade account and unbilled receivables reflected in the Company’s consolidated balance sheets represent the net amounts expected to be collected. An allowance for credit losses is established based on expected losses. Expected losses are estimated by reviewing individual accounts, considering aging, financial condition of the debtor for certain accounts, recent payment history, current and forecasted economic conditions and other relevant factors. Allowance for Credit Losses Following is a summary of activity in allowances for credit losses on trade and unbilled accounts receivable across the Company: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Beginning Balance $ 1,681 $ 1,533 $ 1,339 $ 1,407 Additions Charged to Expense (net of recoveries) 736 216 1,371 463 Reductions for Amounts Written Off (317 ) (58 ) (610 ) (179 ) Ending Balance $ 2,100 $ 1,691 $ 2,100 $ 1,691 ASU 2018 15 August 2018 No. 2018 15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350 40 350 40, Internal-Use Software 2018 15 2018 15 350 40 2018 15 2018 15 December 15, 2019 2018 15 first 2020. no |
Note 2 - Segment Information
Note 2 - Segment Information | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 2. Segment Information The accounting policies of the segments are described under note 1 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 Midcontinent Independent System Operator, Inc. (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 PVC pipe at plants in North Dakota and Arizona. The PVC pipe is sold primarily in the United States, west of the Mississippi River. 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. 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 While no single customer accounted for over 10% 2019, 2019 2019 2019 2019 2019 2019 one All of the Company’s long-lived assets are within the United States and sales within the United States accounted for 98.9% and 98.5% of operating revenues for the respective three June 30, 2020 2019, six June 30, 2020 2019. 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 for the business segments for the three six June 30, 2019 2020 June 30, 2020 December 31, 2019 Operating Revenue Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Electric Segment: Retail Sales Revenue from Contracts with Customers $ 85,344 $ 87,976 $ 192,034 $ 202,931 Changes in Accrued ARP Revenues 209 369 122 (680 ) Total Retail Sales Revenue 85,553 88,345 192,156 202,251 Transmission Services Revenue 9,673 11,469 20,514 22,331 Wholesale Revenues – Company Generation 765 941 1,641 2,468 Other Revenues 2,162 1,489 3,718 3,303 Total Electric Segment Revenues 98,153 102,244 218,029 230,353 Manufacturing Segment: Metal Parts and Tooling 37,267 62,541 94,478 129,265 Plastic Products and Tooling 7,840 9,353 17,723 18,398 Other 841 1,602 2,226 3,655 Total Manufacturing Segment Revenues 45,948 73,496 114,427 151,318 Plastics Segment – Sale of PVC Pipe Products 48,679 53,476 95,076 93,534 Intersegment Eliminations (24 ) (13 ) (29 ) (30 ) Total $ 192,756 $ 229,203 $ 427,503 $ 475,175 Interest Charges Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Electric $ 7,348 $ 6,625 $ 14,732 $ 13,266 Manufacturing 554 646 1,108 1,230 Plastics 186 215 334 364 Corporate and Intersegment Eliminations 574 339 611 791 Total $ 8,662 $ 7,825 $ 16,785 $ 15,651 Income Taxes Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Electric $ 2,579 $ 1,037 $ 6,199 $ 5,808 Manufacturing (189 ) 1,149 1,272 2,603 Plastics 1,818 2,044 3,735 3,373 Corporate (400 ) (887 ) (1,760 ) (2,813 ) Total $ 3,808 $ 3,343 $ 9,446 $ 8,971 Net Income (Loss) Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Electric $ 13,306 $ 7,502 $ 29,488 $ 26,202 Manufacturing 238 3,990 5,165 8,832 Plastics 5,130 5,792 10,579 9,521 Corporate (1,693 ) (1,858 ) (3,983 ) (2,805 ) Total $ 16,981 $ 15,426 $ 41,249 $ 41,750 Identifiable Assets June 30, December 31, (in thousands) 2020 2019 Electric $ 2,054,523 $ 1,931,525 Manufacturing 184,462 195,742 Plastics 102,285 92,049 Corporate 47,969 54,279 Total $ 2,389,239 $ 2,273,595 |
Note 3 - Rate and Regulatory Ma
Note 3 - Rate and Regulatory Matters | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Public Utilities Disclosure [Text Block] | 3. Below are descriptions of OTP’s major capital expenditure projects that are expected to 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 2020 2019. Major Capital Expenditure Projects Merricourt Wind Energy Center (Merricourt) November 16, 2016 150 November 16, 2016, 2020 June 11, 2019, July 16, 2019 August 2019. April 2019. OTP is earning a return in all three June 30, 2020, 19 December 31, 2020. Astoria Station 2021. November 3, 2017, August 3, 2018 September 26, 2018 March 6, 2019 December 2018 January 2019. May 2019, June 30, 2020, 2020 2021. General Rates Minnesota 2016 March 2017 May 1, 2017. The MPUC’s order also included: ( 1 2 November 1, 2017. North Dakota March 23, 2018 In a September 26, 2018 2017 February 1, 2019, April 2019 January February 2018. South Dakota April 20, 2018 first two October 18, 2018. second March 1, 2019 second January 1, 2018 October 17, 2018 first 2019. May 14, 2019 May 30, 2019 August 1, 2019. October 18, 2018 October 2019 On July 9, 2019 May 30, 2019 first October 18, 2018, October 1, 2019. To ensure rates are appropriately set under the stipulation, the parties agreed to establish an earnings sharing mechanism to share with customers any weather-normalized earnings above the authorized ROE of 8.75%. OTP's annual weather-normalized earnings are reported each year by June 1 9.50% 30 Rate Riders In addition to general rates, OTP has several rate riders in place in each of its state jurisdictional service areas. These rate riders are designed to recover expenses, costs and returns on rate base investments not ● In Minnesota: Transmission Cost Recovery (TCR), Environmental Cost Recovery (ECR), Renewable Resource Adjustment (RRA), Energy Intensive Trade Exposed and Conservation Improvement Program riders. ● In North Dakota: TCR, ECR, Renewable Resource Cost Recovery and Generation Cost Recovery (GCR) riders. ● In South Dakota: TCR, ECR, Phase-In Rate Plan and Energy Efficiency Plan (conservation) riders. Following is a brief summary of recent proceedings of riders in place in each state served by OTP, followed by tables showing revenues recorded under rate riders for the three six June 30, 2020 June 30, 2019 2020 2019. 10 December 31, 2019. Minnesota Minnesota Conservation Improvement Programs (MNCIP) May 1, 2020 2019 2019 not Transmission Cost Recovery Rider 2016 May 1, 2017, two August 18, 2017 On June 11, 2018 July 11, 2018 On November 30, 2018 two two April 1, 2019, April 22, 2020, On May 7, 2020 15 three January 1, 2021 three January 1, 2020. one December 2020 January 1, 2021 January 1, 2021. June 4, 2020 July 6, 2020 July 21, 2020. three three August 14, 2020 August 24, 2020, June 30, 2020, Renewable Resource Adjustment June 21, 2019 December 19, 2019 Fuel and Purchased Power Costs Recovery December 2017 October 31, 2019 2020 January 1, 2020. North Dakota Renewable Resource Adjustment December 31, 2019 November 30, 2019. February 25, 2020 March 18, 2020. 25 10 Generation Cost Recovery Rider May 15, 2019 July 1, 2019. June 10, 2020 2020 July 1, 2020. South Dakota Phase-In Rate Plan Rider May 31, 2019 August 21, 2019 September 1, 2019. June 1, 2020 first September 1, 2020. Rate Rider Updates The following table provides summary information on the status of updates since January 1, 2018 Rate Rider R - Request Date A - Approval Date Effective Date Requested or Annual ($000s) Rate Minnesota Conservation Improvement Program 2019 Incentive and Cost Recovery R – May 1, 2020 October 1, 2020 $ 8,247 $0.00485 /kwh 2018 Incentive and Cost Recovery A – December 27, 2019 January 1, 2020 $ 11,926 $0.00710 /kwh 2017 Incentive and Cost Recovery A – October 4, 2018 November 1, 2018 $ 10,283 $0.00600 /kwh Transmission Cost Recovery 2018 Annual Update–Updated Request R – May 7, 2020 January 1, 2021 $ 10,264 Various 2017 Rate Reset A – October 30, 2017 November 1, 2017 $ (3,311 ) Various Environmental Cost Recovery 2018 Annual Update A – November 29, 2018 December 1, 2018 $ - 0% of base Renewable Resource Adjustment 2019 Annual Update – Revised A – December 19, 2019 January 1, 2020 $ 12,506 $0.00467 /kwh 2018 Annual Update A – August 29, 2018 November 1, 2018 $ 5,886 $0.00219 /kwh North Dakota Renewable Resource Adjustment 2020 Annual Update A – March 18, 2020 April 1, 2020 $ 5,762 5.637% of base 2019 Annual Update A – May 1, 2019 June 1, 2019 $ (235 ) -0.224% of base 2018 Rate Reset for effect of TCJA A – February 27, 2018 March 1, 2018 $ 9,650 7.493% of base Transmission Cost Recovery 2019 Annual Update A – December 18, 2019 January 1, 2020 $ 5,739 Various 2018 Supplemental Update A – December 6, 2018 February 1, 2019 $ 4,801 Various 2018 Rate Reset for effect of TCJA A – February 27, 2018 March 1, 2018 $ 7,469 Various Environmental Cost Recovery 2019 Update A – October 22, 2019 November 1, 2019 $ - 0% of base 2018 Update A – December 19, 2018 February 1, 2019 $ (378 ) -0.310% of base 2018 Rate Reset for effect of TCJA A – February 27, 2018 March 1, 2018 $ 7,718 5.593% of base Generation Cost Recovery 2020 Annual Update A – June 10, 2020 July 1, 2020 $ 6,184 6.041% of base 2019 Initial Request A – May 15, 2019 July 1, 2019 $ 2,720 2.547% of base South Dakota Transmission Cost Recovery 2020 Annual Update A – February 19, 2020 March 1, 2020 $ 2,327 Various 2019 Rate Reset A – September 17, 2019 October 1, 2019 $ 2,046 Various 2019 Annual Update A – February 20, 2019 March 1, 2019 $ 1,638 Various 2018 Interim Rate Reset A – October 18, 2018 October 18, 2018 $ 1,171 Various Environmental Cost Recovery 2018 Interim Rate Reset A – October 18, 2018 October 18, 2018 $ (189 ) -$0.00075 /kwh Phase-In Rate Plan Recovery 2020 Annual Update R – June 1, 2020 September 1, 2020 $ 1,931 7.753% of base 2019 Initial Request A – August 21, 2019 September 1, 2019 $ 864 3.345% of base 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. Three Months Ended June 30, Six Months Ended June 30, Rate Rider (in thousands) 2020 2019 2020 2019 Minnesota Renewable Resource Recovery $ 3,088 $ 1,317 $ 6,342 $ 2,633 Conservation Improvement Program Costs and Incentives 1,521 1,841 2,607 2,728 Transmission Cost Recovery (314 ) (56 ) 401 585 Environmental Cost Recovery - - - (1 ) North Dakota Transmission Cost Recovery 840 874 2,322 2,646 Renewable Resource Adjustment 1,070 (93 ) 2,199 636 Generation Cost Recovery 900 222 1,848 470 Environmental Cost Recovery - (12 ) - 563 South Dakota Transmission Cost Recovery 371 371 933 844 Conservation Improvement Program Costs and Incentives 210 96 554 340 Environmental Cost Recovery - (23 ) - (27 ) Phase-In Rate Plan (670 ) - (24 ) - Total $ 7,016 $ 4,537 $ 17,182 $ 11,417 FERC Wholesale power sales and transmission rates are subject to the jurisdiction of the FERC under the Federal Power Act of 1935 MVPs ROE November 2013 February 2015, may June 30, 2020 ● a $0.1 million refund for the first November 2013 February 2015 ● a $1.5 million refund related to the second February 2015 May 2016 ● a $1.3 million refund for the period from September 2016 June 2020 Various FERC orders have been made that remain under appeal. All or some of the current liability will be refunded to customers or reversed and recognized as revenue depending on various factors including MISO’s determination of refund amounts and FERC’s final determination of the reasonableness of base ROE over various periods. |
Note 4 - Regulatory Assets and
Note 4 - Regulatory Assets and Liabilities | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 Remaining (in thousands) Current Long-Term Total Refund Period Regulatory Assets: Prior Service Costs and Actuarial Losses on Pensions and Other Postretirement Benefits 1 $ 9,018 $ 124,901 $ 133,919 see below Accumulated Asset Retirement Obligation (ARO) Accretion/Depreciation Adjustment 1 - 8,243 8,243 asset lives Minnesota Transmission Cost Recovery Rider Accrued Revenues 2 6,563 - 6,563 12 Conservation Improvement Program Costs and Incentives 2 276 3,553 3,829 27 MISO Schedule 26/26A Transmission Cost Recovery Rider True-ups 1 1,500 963 2,463 30 Nonservice Costs Components of Postretirement Benefits Capitalized for Ratemaking Purposes and Subject to Deferred Recovery 1 - 1,974 1,974 asset lives Minnesota Renewable Resource Rider Accrued Revenues 2 722 - 722 12 Debt Reacquisition Premiums 1 204 430 634 147 Big Stone II Unrecovered Project Costs – Minnesota 1 583 - 583 10 Minnesota SPP Transmission Cost Recovery Tracker 1 - 401 401 see below Deferred Marked-to-Market Losses 1 372 - 372 6 Big Stone II Unrecovered Project Costs – South Dakota 1 144 180 324 27 South Dakota Deferred Rate Case Expenses Subject to Recovery 1 138 177 315 28 North Dakota Generation Cost Recovery Rider Accrued Revenue 2 312 - 312 12 North Dakota Deferred Rate Case Expenses Subject to Recovery 1 122 183 305 30 Deferred Lease Expenses 1 - 58 58 33 Minnesota Environmental Cost Recovery Rider Accrued Revenues 2 4 - 4 12 Total Regulatory Assets $ 19,958 $ 141,063 $ 161,021 Regulatory Liabilities: Deferred Income Taxes $ - $ 138,517 $ 138,517 asset lives Accumulated Reserve for Estimated Removal Costs – Net of Salvage - 99,055 99,055 asset lives Refundable Fuel Clause Adjustment Revenues 10,241 - 10,241 12 North Dakota Transmission Cost Recovery Rider Accrued Refund 1,010 - 1,010 6 South Dakota Phase-In Rate Plan Rider Accrued Refund 783 - 783 2 Revenue for Rate Case Expenses Subject to Refund – Minnesota - 518 518 see below Prior Service Costs and Actuarial Gains on Postretirement Benefits 471 - 471 12 Minnesota Energy Intensive Trade Exposed Rider Accrued Refund 198 - 198 3 South Dakota Transmission Cost Recovery Rider Accrued Refund 159 - 159 8 North Dakota Renewable Resource Recovery Rider Accrued Refund 156 - 156 9 Other 5 70 75 162 Total Regulatory Liabilities $ 13,023 $ 238,160 $ 251,183 Net Regulatory Asset/(Liability) Position $ 6,935 $ (97,097 ) $ (90,162 ) 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, 2019 (in thousands) Current Long-Term Total Remaining Refund Period Regulatory Assets: Prior Service Costs and Actuarial Losses on Pensions and Other Postretirement Benefits 1 $ 9,090 $ 129,102 $ 138,192 see below Accumulated Asset Retirement Obligation (ARO) Accretion/Depreciation Adjustment 1 - 7,772 7,772 asset lives Minnesota Transmission Cost Recovery Rider Accrued Revenues 2 4,208 - 4,208 12 Conservation Improvement Program Costs and Incentives 2 4,024 2,844 6,868 21 MISO Schedule 26/26A Transmission Cost Recovery Rider True-ups 1 2,033 968 3,001 24 Nonservice Costs Components of Postretirement Benefits Capitalized for Ratemaking Purposes and Subject to Deferred Recovery 1 - 1,681 1,681 asset lives Minnesota Renewable Resource Rider Accrued Revenues 2 131 - 131 12 Debt Reacquisition Premiums 1 201 548 749 153 Big Stone II Unrecovered Project Costs – Minnesota 1 715 225 940 16 Minnesota SPP Transmission Cost Recovery Tracker 1 - 202 202 see below Deferred Marked-to-Market Losses 1 743 - 743 12 Big Stone II Unrecovered Project Costs – South Dakota 1 144 253 397 33 South Dakota Deferred Rate Case Expenses Subject to Recovery 1 138 245 383 34 North Dakota Deferred Rate Case Expenses Subject to Recovery 1 122 244 366 36 Deferred Lease Expenses 1 - 54 54 39 Minnesota Environmental Cost Recovery Rider Accrued Revenues 2 4 - 4 12 South Dakota Transmission Cost Recovery Rider Accrued Revenues 2 97 - 97 2 Total Regulatory Assets $ 21,650 $ 144,138 $ 165,788 Regulatory Liabilities: Deferred Income Taxes $ - $ 141,707 $ 141,707 asset lives Accumulated Reserve for Estimated Removal Costs – Net of Salvage - 97,726 97,726 asset lives Refundable Fuel Clause Adjustment Revenues 3,982 - 3,982 12 North Dakota Transmission Cost Recovery Rider Accrued Refund 700 - 700 12 South Dakota Phase-In Rate Plan Rider Accrued Refund 355 - 355 9 Revenue for Rate Case Expenses Subject to Refund – Minnesota - 401 401 see below Prior Service Costs and Actuarial Gains on Postretirement Benefits 471 - 471 12 Minnesota Energy Intensive Trade Exposed Rider Accrued Refund 164 - 164 12 North Dakota Renewable Resource Recovery Rider Accrued Refund 1,515 - 1,515 12 North Dakota Generation Cost Recovery Rider Accrued Refund 287 - 287 6 Other 6 72 78 168 Total Regulatory Liabilities $ 7,480 $ 239,906 $ 247,386 Net Regulatory Asset/(Liability) Position $ 14,170 $ (95,768 ) $ (81,598 ) 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 asset and liability related to prior service costs and actuarial losses on pensions and other postretirement benefits represents benefit costs and actuarial losses and gains subject to recovery or refund through rates as they are expensed. These unrecognized benefit costs and actuarial losses and gains are required to be recognized as components of Accumulated Other Comprehensive Income in equity under ASC Topic 715, Compensation—Retirement Benefits The Accumulated ARO Accretion/Depreciation Adjustment will accrete and be amortized over the lives of property with asset retirement obligations. The Minnesota Transmission Cost Recovery Rider Accrued Revenues relate to revenues earned on qualifying transmission system facilities and operating costs incurred to serve Minnesota customers that were recoverable from Minnesota customers as of the balance sheet date. Conservation Improvement Program Costs and Incentives represent mandated conservation expenditures and incentives recoverable through retail electric rates. MISO Schedule 26/26A 26/26A The Nonservice Costs Components of Postretirement Benefits Capitalized for Ratemaking Purposes and Subject to Deferred Recovery are employee benefit-related costs that are required to be capitalized for ratemaking purposes and are recovered over the depreciable lives of the assets to which the related labor costs were applied. The Minnesota Renewable Resource Recovery Rider Accrued Revenues relate to revenues earned on qualifying renewable resource costs incurred to serve Minnesota customers that were recoverable from Minnesota customers as of the balance sheet date. Debt Reacquisition Premiums are being recovered from OTP customers over the remaining original lives of the reacquired debt issues, the longest of which is 147 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. The Minnesota SPP Transmission Cost Recovery Tracker regulatory asset relates to costs incurred to serve Minnesota customers that are subject to recovery but that had not All Deferred Marked-to-Market Losses recorded as of the balance sheet date relate to forward purchases of energy scheduled for delivery through December 2020. 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. South Dakota Deferred Rate Case Expenses Subject to Recovery relate to costs incurred in conjunction with OTP’s most recent rate case in South Dakota and are currently being recovered beginning with the establishment of interim rates in October 2018. The North Dakota Generation Cost Recovery Rider Accrued Revenues relate to revenues earned under the rider on recoverable costs incurred for the North Dakota share of OTP’s investment in Astoria Station, a natural gas-fired combustion turbine generation facility under construction near Astoria, South Dakota. The balance represents amounts subject to recovery from North Dakota customers that had not North Dakota Deferred Rate Case Expenses Subject to Recovery relate to costs incurred in conjunction with OTP’s most recent rate case in North Dakota currently being recovered beginning with the establishment of interim rates in January 2018. Deferred Lease Expenses: Under ASC 842 The Minnesota Environmental Cost Recovery Rider Accrued Revenues relate to revenues earned on the Minnesota share of OTP’s investment in the Big Stone Plant AQCS project that were recoverable from Minnesota customers as of the balance sheet date. The South Dakota Transmission Cost Recovery Rider Accrued Revenues relate to revenues earned on qualifying transmission system facilities and operating costs incurred to serve South Dakota customers that were recoverable from South Dakota customers as of the balance sheet date. The regulatory liability related to Deferred Income Taxes results from changes in statutory tax rates accounted for in accordance with ASC Topic 740, Income Taxes The Accumulated Reserve for Estimated Removal Costs – Net of Salvage is reduced as actual removal costs, net of salvage revenues, are incurred. 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 were refundable to North Dakota customers as of the balance sheet date. The South Dakota Phase-In Rate Plan Rider Accrued Refund relates to amounts collected for actual and forecasted costs for Astoria Station, Merricourt, and additional load growth that were refundable to South Dakota customers as of the balance sheet date. 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. The Minnesota Energy Intensive Trade Exposed Rider Accrued Refund relates to over-collected amounts from Minnesota retail customers for fuel and purchased power costs reductions provided to customers in energy intensive trade exposed industries that were subject to refund to Minnesota customers as of the balance sheet date. 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 were refundable to South Dakota customers as of the balance sheet date. The North Dakota Renewable Resource Recovery Rider Accrued Refund relates to amounts collected for qualifying renewable resource costs incurred to serve North Dakota customers that were refundable to North Dakota customers as of the balance sheet date. The North Dakota Generation Cost Recovery Rider Accrued Refund relates to revenues collected under the rider in excess of returns allowed on recoverable costs incurred for the North Dakota share of OTP’s investment in Astoria Station, a natural gas-fired combustion turbine generation facility under construction near Astoria, South Dakota. The balance represents amounts subject to refund to North Dakota customers that had been billed to North Dakota customers as of the balance sheet date. 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 | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Stockholders Equity and Earnings per Share [Text Block] | 5. Shelf Registration On May 3, 2018 may May 3, 2021. On November 8, 2019, may Under the Distribution Agreement, the Company will designate the minimum price and maximum number of common shares to be sold through KeyBanc on any given trading day or over a specified period of trading days, and KeyBanc 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 KeyBanc. The Company may not not 2020 Following is a reconciliation of the Company’s common shares outstanding from December 31, 2019 June 30, 2020: Common Shares Outstanding, December 31, 2019 40,157,591 Issuances: At-the-Market Offering 500,684 Automatic Dividend Reinvestment and Share Purchase Plan: Dividends Reinvested 63,929 Cash Invested 30,345 Executive Stock Performance Awards (2017 awards earned) 62,497 Vesting of Restricted Stock Units 35,720 Employee Stock Purchase Plan: Cash Invested 13,432 Dividends Reinvested 4,835 Restricted Stock Issued to Directors 17,400 Directors Deferred Compensation 612 Retirements: Shares Withheld for Individual Income Tax Requirements (38,217 ) Common Shares Outstanding, June 30, 2020 40,848,828 Earnings Per Share The numerator used in the calculation of both basic and diluted earnings per common share is net income with no three six June 30, 2020 2019. not three six June 30: Three Months ended June 30 Six Months ended June 30 2020 2019 2020 2019 Weighted Average Common Shares Outstanding – Basic 40,513,286 39,712,036 40,365,214 39,684,679 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 97,401 134,137 111,519 146,148 Underlying Shares Related to Nonvested Restricted Stock Units Granted to Employees 47,331 60,168 55,614 61,783 Shares Expected to be Issued Under the Employee Stock Purchase Plan 15,833 - 15,905 - Nonvested Restricted Shares 1,637 9,657 10,749 15,790 Shares Expected to be Issued Under the Deferred Compensation Program for Directors 1,273 1,833 1,548 2,099 Total Dilutive Shares 163,475 205,795 195,335 225,820 Weighted Average Common Shares Outstanding – Diluted 40,676,761 39,917,831 40,560,549 39,910,499 |
Note 6 - Share-based Payments
Note 6 - Share-based Payments | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 6. Stock Incentive Awards The following stock incentive awards were granted under the 2014 six June 30, 2020. Award Grant Date Shares/ Units Granted Weighted Average Grant-Date Fair Value per Award Vesting Restricted Stock Units Granted: With Dividend Equivalent: To Key Management Employees February 3, 2020 3,000 $ 54.0450 25% per year through February 6, 2024 To Executive Officers February 12, 2020 15,300 $ 54.0607 25% per year through February 6, 2024 Without Dividend Equivalent: To Nonexecutive Employees April 20, 2020 14,975 $ 40.18 100% April 8, 2024 Stock Performance Awards Granted: Under Executive Agreement February 12, 2020 47,600 $ 47.10 December 31, 2022 Under Legacy Agreement February 12, 2020 7,400 $ 52.20 December 31, 2022 Restricted Stock Granted to Nonemployee Directors April 20, 2020 17,400 $ 44.85 33% per year through April 8, 2023 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, and subject to forfeiture under the terms of the restricted stock unit award agreements. Certain restricted stock units granted to executive officers and certain key employees are eligible to receive dividend equivalent payments on all unvested awards over the awards respective vesting periods. The grant-date fair value of each restricted stock unit paying a dividend equivalent was the average of the high and low market price per share on the date of grant. The grant-date fair value of each restricted stock unit that does not Under the performance share awards the aggregate award for performance at target is 55,000 shares. For target performance the participants would earn an aggregate of 27,500 common shares for achieving the target set for the Company’s 3-year average adjusted ROE. The participants would also earn an aggregate of 27,500 common shares based on the Company’s total shareholder return relative to the total shareholder return of the companies that comprise the Edison Electric Institute Index over the performance measurement period of January 1, 2020 December 31, 2022, January 1, 2020 20 January 1, 2023. may zero no 718, Compensation – Stock Compensation Under the 2020 The restricted shares granted to the Company’s nonemployee directors are eligible for full dividend and voting rights. Restricted shares not The end of the period over which compensation expense is recognized for the above share-based awards for the individual grantees is the earlier of the indicated vesting period for the respective awards or the date the grantee becomes eligible for retirement as defined in their award agreement. As of June 30, 2020, Amounts of compensation expense recognized under the Company’s stock-based payment programs for the three six June 30, 2020 2019 Three months ended Six months ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Stock Performance Awards Granted to Executive Officers $ 712 $ 1,418 $ 2,412 $ 2,531 Restricted Stock Dividend Equivalent Units Granted to Executive Officers and Key Employees 106 383 785 810 Restricted Stock Granted to Nonemployee Directors 236 204 440 369 Restricted Stock Units Granted to Nonexecutive Employees 141 143 275 234 ESPP (15% discount) 42 - 95 - Totals $ 1,237 $ 2,148 $ 4,007 $ 3,944 |
Note 7 - Retained Earnings and
Note 7 - Retained Earnings and Dividend Restriction | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Retained Earnings Restrictions [Text Block] | 7. The Company is a holding company with no 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 June 30, 2020, Under the Federal Power Act, a public utility may not 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 47.5% and 58.1% based on OTP’s 2020 July 15, 2020. June 30, 2020, 2020 |
Note 8 - Leases
Note 8 - Leases | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 8. No |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 9. Construction and Other Purchase Commitments At June 30, 2020 December 31, 2019 On October 1, 2019 six January 1, 2020. no not six 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 2043. 2040. December 31, 2022. no December 31, 2023, no OTP Land Easements OTP has commitments to make future payments for land easements not 2034 Contingencies OTP had a $2.9 million refund liability on its balance sheet as of June 30, 2020. 3 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. In addition to the potential ROE refund described above, the most significant contingencies that could impact the Company’s consolidated financial statements are those related to environmental remediation, risks associated with warranty claims relating to divested businesses that could exceed established reserve amounts, risks associated with adverse regulatory decisions that could impact the recovery of fixed asset costs in future rates and litigation matters. On July 30, 2020 seven 2020. State implementation of pollution control plans to improve visibility and air quality at national parks under the EPA’s Regional Haze Rule (RHR) could require OTP to incur significant new costs, which could, dependent on determinations by state regulatory commissions on approval to recover such costs from customers, negatively impact OTP’s and the Company’s net income, financial position and cash flows. The North Dakota Department of Environmental Quality (NDDEQ) must submit a state implementation plan to the EPA by July 2021. 2 1, December 31, 2028. may not 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 June 30, 2020, not |
Note 10 - Short-term and Long-t
Note 10 - Short-term and Long-term Borrowings | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 10. The following table presents the status of the Company’s lines of credit as of June 30, 2020 December 31, 2019: (in thousands) Line Limit In Use on June 30, Restricted due to Available on June 30, Available on Otter Tail Corporation Credit Agreement $ 170,000 $ 41,239 $ - $ 128,761 $ 164,000 OTP Credit Agreement 170,000 - 7,670 162,330 154,524 Total $ 340,000 $ 41,239 $ 7,670 $ 291,091 $ 318,524 Long-Term Debt Issuances 201 9 Note Purchase Agreement On September 12, 2019, 2019 2019A October 10, 2029 ( 2019A 2019B October 10, 2039 ( 2019B 2019C October 10, 2049 ( 2019C 2020A February 25, 2030 ( 2020A 2020B August 20, 2030 ( 2020B 2020C February 25, 2040 ( 2020C 2020D February 25, 2050 ( 2020D 2019A 2019B 2019C 2020A 2020B 2020C On February 25, 2020, 2020A 2020C 2020D 2019 2019A 2019B 2019C October 10, 2019. 2020B, August 20, 2020, OTP may not no 2019 2020A August 25, 2029, 2020C August 25, 2039 2020D August 25, 2049 2019 100% 2019 The 2019 2019 may not 2019 2019 2019 not 2019 not 2019 2019 2019 2019 2019 no The following tables provide a breakdown of the assignment of the Company’s consolidated short-term and long-term debt outstanding as of June 30, 2020 December 31, 2019: June 30 , 20 20 (in thousands) OTP Otter Tail Consolidated Short-Term Debt $ - $ 41,239 $ 41,239 Long-Term Debt: 3.55% December 15, 2026 $ 80,000 $ 80,000 Senior Unsecured Notes 4.63% December 1, 2021 $ 140,000 140,000 Senior Unsecured Notes 6.15% August 20, 2022 30,000 30,000 Senior Unsecured Notes 6.37% August 20, 2027 42,000 42,000 Senior Unsecured Notes 4.68% February 27, 2029 60,000 60,000 Senior Unsecured Notes 3.07% October 10, 2029 1 10,000 10,000 Senior Unsecured Notes 3.22% February 25, 2030 10,000 10,000 Senior Unsecured Notes 6.47% August 20, 2037 50,000 50,000 Senior Unsecured Notes 3.52% October 10, 2039 26,000 26,000 Senior Unsecured Notes 3.62% February 25, 2040 10,000 10,000 Senior Unsecured Notes 5.47% February 27, 2044 90,000 90,000 Senior Unsecured Notes 4.07% February 7, 2048 100,000 100,000 Senior Unsecured Notes 3.82% October 10, 2049 64,000 64,000 Senior Unsecured Notes 3.92% February 25, 2050 15,000 15,000 PACE Note, 2.54% March 18, 2021 261 261 Total $ 647,000 $ 80,261 $ 727,261 Less: Current Maturities net of Unamortized Debt Issuance Costs - 261 261 Unamortized Long-Term Debt Issuance Costs 2,281 330 2,611 Total Long-Term Debt net of Unamortized Debt Issuance Costs $ 644,719 $ 79,670 $ 724,389 Total Short-Term and Long-Term Debt (with current maturities) $ 644,719 $ 121,170 $ 765,889 December 31, 2019 (in thousands) Short-Term Debt $ - $ 6,000 $ 6,000 Long-Term Debt: 3.55% December 15, 2026 $ 80,000 $ 80,000 Senior Unsecured Notes 4.63% December 1, 2021 $ 140,000 140,000 Senior Unsecured Notes 6.15% August 20, 2022 30,000 30,000 Senior Unsecured Notes 6.37% August 20, 2027 42,000 42,000 Senior Unsecured Notes 4.68% February 27, 2029 60,000 60,000 Senior Unsecured Notes 3.07% October 10, 2029 1 10,000 10,000 Senior Unsecured Notes 6.47% August 20, 2037 50,000 50,000 Senior Unsecured Notes 3.52% October 10, 2039 26,000 26,000 Senior Unsecured Notes 5.47% February 27, 2044 90,000 90,000 Senior Unsecured Notes 4.07% February 7, 2048 100,000 100,000 Senior Unsecured Notes 3.82% October 10, 2049 64,000 64,000 PACE Note, 2.54% March 18, 2021 351 351 Total $ 612,000 $ 80,351 $ 692,351 Less: Current Maturities net of Unamortized Debt Issuance Costs - 183 183 Unamortized Long-Term Debt Issuance Costs 2,231 356 2,587 Total Long-Term Debt net of Unamortized Debt Issuance Costs $ 609,769 $ 79,812 $ 689,581 Total Short-Term and Long-Term Debt (with current maturities) $ 609,769 $ 85,995 $ 695,764 1 Holder is COBANK, a cooperative lender. Interest payments are subject to cash credits which may |
Note 11 - Pension Plan and Othe
Note 11 - Pension Plan and Other Postretirement Benefits | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Retirement Benefits [Text Block] | 1 1 . Pension Plan and Other Postretirement Benefits Pension Plan Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2020 2019 2020 2019 Service Cost—Benefit Earned During the Period $ 1,656 $ 1,373 $ 3,311 $ 2,746 Interest Cost on Projected Benefit Obligation 3,263 3,603 6,526 7,206 Expected Return on Assets (5,505 ) (5,324 ) (11,010 ) (10,649 ) Amortization of Prior-Service Cost: From Regulatory Asset - 2 - 3 From Other Comprehensive Income 1 - 2 - 4 Amortization of Net Actuarial Loss: From Regulatory Asset 2,231 1,162 4,462 2,325 From Other Comprehensive Income 1 55 26 110 53 Net Periodic Pension Cost 2 $ 1700 $ 844 $ 3,399 $ 1,688 1 Corporate cost included in nonservice cost components of postretirement benefits. 2 Allocation of costs: Service costs included in OTP capital expenditures $ 432 $ 336 $ 855 $ 726 Service costs included in electric operation and maintenance expenses 1,185 1,004 2,377 1,954 Service costs included in other nonelectric expenses 39 33 79 66 Nonservice costs capitalized as regulatory assets 12 (130 ) 23 (280 ) Nonservice costs included in n onservice cost components of postretirement benefits 32 (399 ) 65 (778 ) Cash flows no December 31, 2019 January 2020. Executive Survivor and Supplemental Retirement Plan Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2020 2019 2020 2019 Service Cost—Benefit Earned During the Period $ 44 $ 104 $ 89 $ 209 Interest Cost on Projected Benefit Obligation 362 434 724 868 Amortization of Prior Service Cost: From Regulatory Asset - 1 - 2 From Other Comprehensive Income 1 - 4 - 8 Amortization of Net Actuarial Loss: From Regulatory Asset 24 31 47 62 From Other Comprehensive Income 1 85 88 171 175 Net Periodic Pension Cost 2 $ 515 $ 662 $ 1,031 $ 1,324 1 Amortization of prior service costs and net actuarial losses from other comprehensive income are included in n onservice cost components of postretirement benefits. 2 Allocation of Costs: Service costs included in electric operation and maintenance expenses $ - $ 26 $ - $ 52 Service costs included in other nonelectric expenses 44 78 89 157 Nonservice costs included in n onservice cost components of postretirement benefits 471 558 942 1,115 Other Postretirement Benefits Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2020 2019 2020 2019 Service Cost—Benefit Earned During the Period $ 462 $ 322 $ 924 $ 643 Interest Cost on Projected Benefit Obligation 599 772 1,197 1,542 Amortization of Prior-Service Cost: From Regulatory Asset (1,170 ) - (2,339 ) - From Other Comprehensive Income 1 (29 ) - (58 ) - Amortization of Net Actuarial Loss: From Regulatory Asset 1,052 392 2,103 785 From Other Comprehensive Income 1 26 9 52 19 Net Periodic Postretirement Benefit Cost 2 $ 940 $ 1,495 $ 1,879 $ 2,989 Effect of Medicare Part D Subsidy $ 280 $ (44 ) $ 561 $ (89 ) 1 Corporate cost included in nonservice cost components of postretirement benefits. 2 Allocation of Costs: Service costs included in OTP capital expenditures $ 120 $ 79 $ 238 $ 170 Service costs included in electric operation and maintenance expenses 331 235 664 458 Service costs included in other nonelectric expenses 11 8 22 15 Nonservice costs capitalized as regulatory assets 124 288 246 621 Nonservice costs included in n onservice cost components of postretirement benefits 354 885 709 1,725 |
Note 12 - Fair Value of Financi
Note 12 - Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 1 2 . 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 Short-Term Debt June 30, 2020 December 31, 2019 Long-Term Debt including Current Maturities 2 820. June 30, 2020 December 31, 2019 (in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Cash and Cash Equivalents $ 39,512 $ 39,512 $ 21,199 $ 21,199 Short-Term Debt (41,239 ) (41,239 ) (6,000 ) (6,000 ) Long-Term Debt including Current Maturities (724,650 ) (795,995 ) (689,764 ) (742,279 ) |
Note 13 - Property, Plant and E
Note 13 - Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | 13. No |
Note 14 - Income Tax Expense
Note 14 - Income Tax Expense | 6 Months Ended |
Jun. 30, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 1 4 . Income Tax Expense The following table provides a reconciliation of income tax expense calculated at the net composite federal and state statutory rate on income before income taxes and income tax expense reported on the Company’s consolidated statements of income for the three six June 30, 2020 2019: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2020 2019 2020 2019 Income Before Income Taxes $ 20,789 $ 18,769 $ 50,695 $ 50,721 Tax Computed at Company’s Net Composite Federal and State Statutory Rate ( 26% $ 5,405 $ 4,879 $ 13,181 $ 13,187 (Decreases) Increases in Tax from: Differences Reversing in Excess of Federal Rates (543 ) (774 ) (1,772 ) (1,757 ) Allowance for Funds Used During Construction – Equity (248 ) (94 ) (560 ) (180 ) Excess Tax Deduction – Equity Method Stock Awards - - (535 ) (827 ) North Dakota Wind Tax Credit Amortization – Net of Federal Taxes (258 ) (258 ) (516 ) (516 ) Research and Development and Other Tax Credits (333 ) (187 ) (387 ) (375 ) Corporate Owned Life Insurance (193 ) (150 ) 14 (559 ) Other Items – Net (22 ) (73 ) 21 (2 ) Income Tax Expense $ 3,808 $ 3,343 $ 9,446 $ 8,971 Effective Income Tax Rate 18.3 % 17.8 % 18.6 % 17.7 % The following table summarizes the activity related to the Company’s unrecognized tax benefits: (in thousands) 2020 2019 Balance on January 1 $ 1,488 $ 1,282 Decreases Related to Tax Positions for Prior Years (42 ) - Increases Related to Tax Positions for Current Year 81 75 Uncertain Positions Resolved During Year - (42 ) Balance on June 30 $ 1,527 $ 1,315 The balance of unrecognized tax benefits as of June 30, 2020 June 30, 2020 12 The Company and its subsidiaries file a consolidated U.S. federal income tax return and various state income tax returns. As of August 1, 2020, no 2016 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Revenue [Policy Text Block] | Revenue Recognition Due to the diverse business operations of the Company, recognition of revenue from contracts with customers depends on the product produced and sold or service performed. The Company recognizes revenue from contracts with customers at prices that are fixed or determinable as evidenced by an agreement with the customer, when the Company has met its performance obligation under the contract and it is probable that the Company will collect the amount to which it is entitled in exchange for the goods or services transferred or to be transferred to the customer. Depending on the product produced and sold or service performed and the terms of the agreement with the customer, the Company recognizes revenue either over time, in the case of delivery or transmission of electricity or related services or the production and storage of certain custom-made products, or at a point in time for the delivery of standardized products and other products made to the customer’s specifications where the terms of the contract require transfer of the completed product. Provisions for sales returns, early payment terms discounts, volume-based variable pricing incentives and warranty costs are recorded as reductions to revenue at the time revenue is recognized based on customer history, historical information and current trends. In addition to recognizing revenue from contracts with customers under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 606, Revenue from Contracts with Customers 606 980, Regulated Operations 980 not Electric Segment Revenues two 1 2 Most Electric segment revenues are earned from the generation, transmission and sale of electricity to retail customers at rates approved by regulatory commissions in the states where Otter Tail Power Company (OTP) provides service. OTP also earns revenue from the transmission of electricity for others over the transmission assets it owns separately, or jointly with other transmission service providers, under rate tariffs established by the independent transmission system operator and approved by the Federal Energy Regulatory Commission (FERC). A third ARPs provide for adjustments to rates outside of a general rate case proceeding, usually as a surcharge applied to future billings typically through the use of rate riders subject to periodic adjustments, to encourage or incentivize investments in certain areas such as conservation, renewable energy, pollution reduction or control, improved infrastructure of the transmission grid or other programs that provide benefits to the general public under public policy, laws or regulations. ARP riders generally provide for the recovery of specified costs and investments and include an incentive component to provide the regulated utility with a return on amounts invested. OTP has recovered costs and earned incentives or returns on investments subject to recovery under several ARP rate riders, including: ● In Minnesota: Transmission Cost Recovery (TCR), Environmental Cost Recovery (ECR), Renewable Resource Adjustment (RRA), Energy Intensive Trade Exposed and Conservation Improvement Program riders. ● In North Dakota: TCR, ECR, Renewable Resource Cost Recovery and Generation Cost Recovery (GCR) riders. ● In South Dakota: TCR, ECR, Phase-In Rate Plan and Energy Efficiency Plan (conservation) riders. OTP accrues ARP revenue based on costs incurred, investments made and returns on those investments that qualify for recovery through established riders. Amounts billed under riders in effect at the time of the billing are included in revenues from contracts with customers net of amounts billed that are subject to refund through future rider adjustments. Amounts accrued and subject to recovery through future rider rate updates and adjustments are reported as changes in accrued revenues under ARPs on a separate line in the revenue section of the Company’s consolidated statement of income. See table in note 3 three six June 30, 2020 2019. Manufacturing Segment Revenues no Plastics Segment Revenues no one See operating revenue table in note 2 three six June 30, 2020 2019. |
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. 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 1 Level 2 2 Level 3 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 June 30, 2020 December 31, 2019: June 30 , 20 20 (in thousands) Level 1 Level 2 Level 3 Assets: Investments: Equity Funds – Held by Captive Insurance Company $ 1,450 Corporate Debt Securities – Held by Captive Insurance Company $ 3,062 Government-Backed and Government-Sponsored Enterprises’ Debt Securities – Held by Captive Insurance Company 5,960 Other Assets: Money Market and Mutual Funds –Retirement Plans 1,560 Total Assets $ 3,010 $ 9,022 December 31, 20 19 (in thousands) Level 1 Level 2 Level 3 Assets: Investments: Equity Funds – Held by Captive Insurance Company $ 1,586 Corporate Debt Securities – Held by Captive Insurance Company $ 2,124 Government-Backed and Government-Sponsored Enterprises’ Debt Securities – Held by Captive Insurance Company 6,060 Other Assets: Money Market and Mutual Funds –Retirement Plans 2,363 Total Assets $ 3,949 $ 8,184 The level 2 third may |
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 not If the LSA terminates prior to the expiration of its term or the production period terminates prior to December 31, 2040 June 30, 2020. |
Inventory, Policy [Policy Text Block] | Inventories Inventories, valued at the lower of cost or net realizable value, consist of the following: June 30, December 31, (in thousands) 2020 2019 Finished Goods $ 26,190 $ 31,863 Work in Process 14,418 16,508 Raw Material, Fuel and Supplies 49,146 49,480 Total Inventories $ 89,754 $ 97,851 |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Intangible Assets 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 The following table summarizes the components of the Company’s intangible assets at June 30, 2020 December 31, 2019: June 30 , 20 20 (in thousands) Gross Carrying Accumulated Net Carrying Amount Remaining Amortizable Intangible Assets: Customer Relationships $ 22,491 $ 11,820 $ 10,671 82 - 182 Other 179 147 32 2 - 39 Total $ 22,670 $ 11,967 $ 10,703 December 31, 20 19 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Remaining Amortization Periods (months) Amortizable Intangible Assets: Customer Relationships $ 22,491 $ 11,259 $ 11,232 88 - 188 Other 179 121 58 8 - 45 Total $ 22,670 $ 11,380 $ 11,290 The amortization expense for these intangible assets was: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Amortization Expense – Intangible Assets $ 291 $ 296 $ 587 $ 592 The estimated annual amortization expense for these intangible assets for the next five (in thousands) 2020 2021 2022 2023 2024 Estimated Amortization Expense – Intangible Assets $ 1,140 $ 1,105 $ 1,105 $ 1,104 $ 1,099 |
Cash Flow Supplemental [Policy Text Block] | Supplemental Disclosures of Cash Flow Information As of June 30, (in thousands) 2020 2019 Noncash Investing Activities: Transactions Related to Capital Additions not Settled in Cash $ 61,925 $ 16,841 |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Standards Adopted ASU 2016 13 June 2016 No. 2016 13, Financial Instruments—Credit Losses (Topic 326 326 , December 31, 2019. may 326 first 2020. not not Accounting Policy Trade account and unbilled receivables reflected in the Company’s consolidated balance sheets represent the net amounts expected to be collected. An allowance for credit losses is established based on expected losses. Expected losses are estimated by reviewing individual accounts, considering aging, financial condition of the debtor for certain accounts, recent payment history, current and forecasted economic conditions and other relevant factors. Allowance for Credit Losses Following is a summary of activity in allowances for credit losses on trade and unbilled accounts receivable across the Company: Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Beginning Balance $ 1,681 $ 1,533 $ 1,339 $ 1,407 Additions Charged to Expense (net of recoveries) 736 216 1,371 463 Reductions for Amounts Written Off (317 ) (58 ) (610 ) (179 ) Ending Balance $ 2,100 $ 1,691 $ 2,100 $ 1,691 ASU 2018 15 August 2018 No. 2018 15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350 40 350 40, Internal-Use Software 2018 15 2018 15 350 40 2018 15 2018 15 December 15, 2019 2018 15 first 2020. no |
Note 1 - Summary of Significa_2
Note 1 - Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | June 30 , 20 20 (in thousands) Level 1 Level 2 Level 3 Assets: Investments: Equity Funds – Held by Captive Insurance Company $ 1,450 Corporate Debt Securities – Held by Captive Insurance Company $ 3,062 Government-Backed and Government-Sponsored Enterprises’ Debt Securities – Held by Captive Insurance Company 5,960 Other Assets: Money Market and Mutual Funds –Retirement Plans 1,560 Total Assets $ 3,010 $ 9,022 December 31, 20 19 (in thousands) Level 1 Level 2 Level 3 Assets: Investments: Equity Funds – Held by Captive Insurance Company $ 1,586 Corporate Debt Securities – Held by Captive Insurance Company $ 2,124 Government-Backed and Government-Sponsored Enterprises’ Debt Securities – Held by Captive Insurance Company 6,060 Other Assets: Money Market and Mutual Funds –Retirement Plans 2,363 Total Assets $ 3,949 $ 8,184 |
Schedule of Inventory, Current [Table Text Block] | June 30, December 31, (in thousands) 2020 2019 Finished Goods $ 26,190 $ 31,863 Work in Process 14,418 16,508 Raw Material, Fuel and Supplies 49,146 49,480 Total Inventories $ 89,754 $ 97,851 |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | June 30 , 20 20 (in thousands) Gross Carrying Accumulated Net Carrying Amount Remaining Amortizable Intangible Assets: Customer Relationships $ 22,491 $ 11,820 $ 10,671 82 - 182 Other 179 147 32 2 - 39 Total $ 22,670 $ 11,967 $ 10,703 December 31, 20 19 (in thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Remaining Amortization Periods (months) Amortizable Intangible Assets: Customer Relationships $ 22,491 $ 11,259 $ 11,232 88 - 188 Other 179 121 58 8 - 45 Total $ 22,670 $ 11,380 $ 11,290 |
Finite-lived Intangible Assets Amortization Expense [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Amortization Expense – Intangible Assets $ 291 $ 296 $ 587 $ 592 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | (in thousands) 2020 2021 2022 2023 2024 Estimated Amortization Expense – Intangible Assets $ 1,140 $ 1,105 $ 1,105 $ 1,104 $ 1,099 |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | As of June 30, (in thousands) 2020 2019 Noncash Investing Activities: Transactions Related to Capital Additions not Settled in Cash $ 61,925 $ 16,841 |
Accounts Receivable, Allowance for Credit Loss [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Beginning Balance $ 1,681 $ 1,533 $ 1,339 $ 1,407 Additions Charged to Expense (net of recoveries) 736 216 1,371 463 Reductions for Amounts Written Off (317 ) (58 ) (610 ) (179 ) Ending Balance $ 2,100 $ 1,691 $ 2,100 $ 1,691 |
Note 2 - Segment Information (T
Note 2 - Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Electric Segment: Retail Sales Revenue from Contracts with Customers $ 85,344 $ 87,976 $ 192,034 $ 202,931 Changes in Accrued ARP Revenues 209 369 122 (680 ) Total Retail Sales Revenue 85,553 88,345 192,156 202,251 Transmission Services Revenue 9,673 11,469 20,514 22,331 Wholesale Revenues – Company Generation 765 941 1,641 2,468 Other Revenues 2,162 1,489 3,718 3,303 Total Electric Segment Revenues 98,153 102,244 218,029 230,353 Manufacturing Segment: Metal Parts and Tooling 37,267 62,541 94,478 129,265 Plastic Products and Tooling 7,840 9,353 17,723 18,398 Other 841 1,602 2,226 3,655 Total Manufacturing Segment Revenues 45,948 73,496 114,427 151,318 Plastics Segment – Sale of PVC Pipe Products 48,679 53,476 95,076 93,534 Intersegment Eliminations (24 ) (13 ) (29 ) (30 ) Total $ 192,756 $ 229,203 $ 427,503 $ 475,175 Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Electric $ 7,348 $ 6,625 $ 14,732 $ 13,266 Manufacturing 554 646 1,108 1,230 Plastics 186 215 334 364 Corporate and Intersegment Eliminations 574 339 611 791 Total $ 8,662 $ 7,825 $ 16,785 $ 15,651 Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Electric $ 2,579 $ 1,037 $ 6,199 $ 5,808 Manufacturing (189 ) 1,149 1,272 2,603 Plastics 1,818 2,044 3,735 3,373 Corporate (400 ) (887 ) (1,760 ) (2,813 ) Total $ 3,808 $ 3,343 $ 9,446 $ 8,971 Three Months Ended Six Months Ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Electric $ 13,306 $ 7,502 $ 29,488 $ 26,202 Manufacturing 238 3,990 5,165 8,832 Plastics 5,130 5,792 10,579 9,521 Corporate (1,693 ) (1,858 ) (3,983 ) (2,805 ) Total $ 16,981 $ 15,426 $ 41,249 $ 41,750 June 30, December 31, (in thousands) 2020 2019 Electric $ 2,054,523 $ 1,931,525 Manufacturing 184,462 195,742 Plastics 102,285 92,049 Corporate 47,969 54,279 Total $ 2,389,239 $ 2,273,595 |
Note 3 - Rate and Regulatory _2
Note 3 - Rate and Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
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 Annual ($000s) Rate Minnesota Conservation Improvement Program 2019 Incentive and Cost Recovery R – May 1, 2020 October 1, 2020 $ 8,247 $0.00485 /kwh 2018 Incentive and Cost Recovery A – December 27, 2019 January 1, 2020 $ 11,926 $0.00710 /kwh 2017 Incentive and Cost Recovery A – October 4, 2018 November 1, 2018 $ 10,283 $0.00600 /kwh Transmission Cost Recovery 2018 Annual Update–Updated Request R – May 7, 2020 January 1, 2021 $ 10,264 Various 2017 Rate Reset A – October 30, 2017 November 1, 2017 $ (3,311 ) Various Environmental Cost Recovery 2018 Annual Update A – November 29, 2018 December 1, 2018 $ - 0% of base Renewable Resource Adjustment 2019 Annual Update – Revised A – December 19, 2019 January 1, 2020 $ 12,506 $0.00467 /kwh 2018 Annual Update A – August 29, 2018 November 1, 2018 $ 5,886 $0.00219 /kwh North Dakota Renewable Resource Adjustment 2020 Annual Update A – March 18, 2020 April 1, 2020 $ 5,762 5.637% of base 2019 Annual Update A – May 1, 2019 June 1, 2019 $ (235 ) -0.224% of base 2018 Rate Reset for effect of TCJA A – February 27, 2018 March 1, 2018 $ 9,650 7.493% of base Transmission Cost Recovery 2019 Annual Update A – December 18, 2019 January 1, 2020 $ 5,739 Various 2018 Supplemental Update A – December 6, 2018 February 1, 2019 $ 4,801 Various 2018 Rate Reset for effect of TCJA A – February 27, 2018 March 1, 2018 $ 7,469 Various Environmental Cost Recovery 2019 Update A – October 22, 2019 November 1, 2019 $ - 0% of base 2018 Update A – December 19, 2018 February 1, 2019 $ (378 ) -0.310% of base 2018 Rate Reset for effect of TCJA A – February 27, 2018 March 1, 2018 $ 7,718 5.593% of base Generation Cost Recovery 2020 Annual Update A – June 10, 2020 July 1, 2020 $ 6,184 6.041% of base 2019 Initial Request A – May 15, 2019 July 1, 2019 $ 2,720 2.547% of base South Dakota Transmission Cost Recovery 2020 Annual Update A – February 19, 2020 March 1, 2020 $ 2,327 Various 2019 Rate Reset A – September 17, 2019 October 1, 2019 $ 2,046 Various 2019 Annual Update A – February 20, 2019 March 1, 2019 $ 1,638 Various 2018 Interim Rate Reset A – October 18, 2018 October 18, 2018 $ 1,171 Various Environmental Cost Recovery 2018 Interim Rate Reset A – October 18, 2018 October 18, 2018 $ (189 ) -$0.00075 /kwh Phase-In Rate Plan Recovery 2020 Annual Update R – June 1, 2020 September 1, 2020 $ 1,931 7.753% of base 2019 Initial Request A – August 21, 2019 September 1, 2019 $ 864 3.345% of base |
Schedule of Revenues Recorded under Rate Riders [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, Rate Rider (in thousands) 2020 2019 2020 2019 Minnesota Renewable Resource Recovery $ 3,088 $ 1,317 $ 6,342 $ 2,633 Conservation Improvement Program Costs and Incentives 1,521 1,841 2,607 2,728 Transmission Cost Recovery (314 ) (56 ) 401 585 Environmental Cost Recovery - - - (1 ) North Dakota Transmission Cost Recovery 840 874 2,322 2,646 Renewable Resource Adjustment 1,070 (93 ) 2,199 636 Generation Cost Recovery 900 222 1,848 470 Environmental Cost Recovery - (12 ) - 563 South Dakota Transmission Cost Recovery 371 371 933 844 Conservation Improvement Program Costs and Incentives 210 96 554 340 Environmental Cost Recovery - (23 ) - (27 ) Phase-In Rate Plan (670 ) - (24 ) - Total $ 7,016 $ 4,537 $ 17,182 $ 11,417 |
Note 4 - Regulatory Assets an_2
Note 4 - Regulatory Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Regulatory Assets and Liabilities [Table Text Block] | June 30, 2020 Remaining (in thousands) Current Long-Term Total Refund Period Regulatory Assets: Prior Service Costs and Actuarial Losses on Pensions and Other Postretirement Benefits 1 $ 9,018 $ 124,901 $ 133,919 see below Accumulated Asset Retirement Obligation (ARO) Accretion/Depreciation Adjustment 1 - 8,243 8,243 asset lives Minnesota Transmission Cost Recovery Rider Accrued Revenues 2 6,563 - 6,563 12 Conservation Improvement Program Costs and Incentives 2 276 3,553 3,829 27 MISO Schedule 26/26A Transmission Cost Recovery Rider True-ups 1 1,500 963 2,463 30 Nonservice Costs Components of Postretirement Benefits Capitalized for Ratemaking Purposes and Subject to Deferred Recovery 1 - 1,974 1,974 asset lives Minnesota Renewable Resource Rider Accrued Revenues 2 722 - 722 12 Debt Reacquisition Premiums 1 204 430 634 147 Big Stone II Unrecovered Project Costs – Minnesota 1 583 - 583 10 Minnesota SPP Transmission Cost Recovery Tracker 1 - 401 401 see below Deferred Marked-to-Market Losses 1 372 - 372 6 Big Stone II Unrecovered Project Costs – South Dakota 1 144 180 324 27 South Dakota Deferred Rate Case Expenses Subject to Recovery 1 138 177 315 28 North Dakota Generation Cost Recovery Rider Accrued Revenue 2 312 - 312 12 North Dakota Deferred Rate Case Expenses Subject to Recovery 1 122 183 305 30 Deferred Lease Expenses 1 - 58 58 33 Minnesota Environmental Cost Recovery Rider Accrued Revenues 2 4 - 4 12 Total Regulatory Assets $ 19,958 $ 141,063 $ 161,021 Regulatory Liabilities: Deferred Income Taxes $ - $ 138,517 $ 138,517 asset lives Accumulated Reserve for Estimated Removal Costs – Net of Salvage - 99,055 99,055 asset lives Refundable Fuel Clause Adjustment Revenues 10,241 - 10,241 12 North Dakota Transmission Cost Recovery Rider Accrued Refund 1,010 - 1,010 6 South Dakota Phase-In Rate Plan Rider Accrued Refund 783 - 783 2 Revenue for Rate Case Expenses Subject to Refund – Minnesota - 518 518 see below Prior Service Costs and Actuarial Gains on Postretirement Benefits 471 - 471 12 Minnesota Energy Intensive Trade Exposed Rider Accrued Refund 198 - 198 3 South Dakota Transmission Cost Recovery Rider Accrued Refund 159 - 159 8 North Dakota Renewable Resource Recovery Rider Accrued Refund 156 - 156 9 Other 5 70 75 162 Total Regulatory Liabilities $ 13,023 $ 238,160 $ 251,183 Net Regulatory Asset/(Liability) Position $ 6,935 $ (97,097 ) $ (90,162 ) December 31, 2019 (in thousands) Current Long-Term Total Remaining Refund Period Regulatory Assets: Prior Service Costs and Actuarial Losses on Pensions and Other Postretirement Benefits 1 $ 9,090 $ 129,102 $ 138,192 see below Accumulated Asset Retirement Obligation (ARO) Accretion/Depreciation Adjustment 1 - 7,772 7,772 asset lives Minnesota Transmission Cost Recovery Rider Accrued Revenues 2 4,208 - 4,208 12 Conservation Improvement Program Costs and Incentives 2 4,024 2,844 6,868 21 MISO Schedule 26/26A Transmission Cost Recovery Rider True-ups 1 2,033 968 3,001 24 Nonservice Costs Components of Postretirement Benefits Capitalized for Ratemaking Purposes and Subject to Deferred Recovery 1 - 1,681 1,681 asset lives Minnesota Renewable Resource Rider Accrued Revenues 2 131 - 131 12 Debt Reacquisition Premiums 1 201 548 749 153 Big Stone II Unrecovered Project Costs – Minnesota 1 715 225 940 16 Minnesota SPP Transmission Cost Recovery Tracker 1 - 202 202 see below Deferred Marked-to-Market Losses 1 743 - 743 12 Big Stone II Unrecovered Project Costs – South Dakota 1 144 253 397 33 South Dakota Deferred Rate Case Expenses Subject to Recovery 1 138 245 383 34 North Dakota Deferred Rate Case Expenses Subject to Recovery 1 122 244 366 36 Deferred Lease Expenses 1 - 54 54 39 Minnesota Environmental Cost Recovery Rider Accrued Revenues 2 4 - 4 12 South Dakota Transmission Cost Recovery Rider Accrued Revenues 2 97 - 97 2 Total Regulatory Assets $ 21,650 $ 144,138 $ 165,788 Regulatory Liabilities: Deferred Income Taxes $ - $ 141,707 $ 141,707 asset lives Accumulated Reserve for Estimated Removal Costs – Net of Salvage - 97,726 97,726 asset lives Refundable Fuel Clause Adjustment Revenues 3,982 - 3,982 12 North Dakota Transmission Cost Recovery Rider Accrued Refund 700 - 700 12 South Dakota Phase-In Rate Plan Rider Accrued Refund 355 - 355 9 Revenue for Rate Case Expenses Subject to Refund – Minnesota - 401 401 see below Prior Service Costs and Actuarial Gains on Postretirement Benefits 471 - 471 12 Minnesota Energy Intensive Trade Exposed Rider Accrued Refund 164 - 164 12 North Dakota Renewable Resource Recovery Rider Accrued Refund 1,515 - 1,515 12 North Dakota Generation Cost Recovery Rider Accrued Refund 287 - 287 6 Other 6 72 78 168 Total Regulatory Liabilities $ 7,480 $ 239,906 $ 247,386 Net Regulatory Asset/(Liability) Position $ 14,170 $ (95,768 ) $ (81,598 ) |
Note 5 - Common Shares and Ea_2
Note 5 - Common Shares and Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Common Stock Outstanding Roll Forward [Table Text Block] | Common Shares Outstanding, December 31, 2019 40,157,591 Issuances: At-the-Market Offering 500,684 Automatic Dividend Reinvestment and Share Purchase Plan: Dividends Reinvested 63,929 Cash Invested 30,345 Executive Stock Performance Awards (2017 awards earned) 62,497 Vesting of Restricted Stock Units 35,720 Employee Stock Purchase Plan: Cash Invested 13,432 Dividends Reinvested 4,835 Restricted Stock Issued to Directors 17,400 Directors Deferred Compensation 612 Retirements: Shares Withheld for Individual Income Tax Requirements (38,217 ) Common Shares Outstanding, June 30, 2020 40,848,828 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months ended June 30 Six Months ended June 30 2020 2019 2020 2019 Weighted Average Common Shares Outstanding – Basic 40,513,286 39,712,036 40,365,214 39,684,679 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 97,401 134,137 111,519 146,148 Underlying Shares Related to Nonvested Restricted Stock Units Granted to Employees 47,331 60,168 55,614 61,783 Shares Expected to be Issued Under the Employee Stock Purchase Plan 15,833 - 15,905 - Nonvested Restricted Shares 1,637 9,657 10,749 15,790 Shares Expected to be Issued Under the Deferred Compensation Program for Directors 1,273 1,833 1,548 2,099 Total Dilutive Shares 163,475 205,795 195,335 225,820 Weighted Average Common Shares Outstanding – Diluted 40,676,761 39,917,831 40,560,549 39,910,499 |
Note 6 - Share-based Payments (
Note 6 - Share-based Payments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Award Grant Date Shares/ Units Granted Weighted Average Grant-Date Fair Value per Award Vesting Restricted Stock Units Granted: With Dividend Equivalent: To Key Management Employees February 3, 2020 3,000 $ 54.0450 25% per year through February 6, 2024 To Executive Officers February 12, 2020 15,300 $ 54.0607 25% per year through February 6, 2024 Without Dividend Equivalent: To Nonexecutive Employees April 20, 2020 14,975 $ 40.18 100% April 8, 2024 Stock Performance Awards Granted: Under Executive Agreement February 12, 2020 47,600 $ 47.10 December 31, 2022 Under Legacy Agreement February 12, 2020 7,400 $ 52.20 December 31, 2022 Restricted Stock Granted to Nonemployee Directors April 20, 2020 17,400 $ 44.85 33% per year through April 8, 2023 |
Share-based Payment Arrangement, Activity [Table Text Block] | Three months ended Six months ended June 30, June 30, (in thousands) 2020 2019 2020 2019 Stock Performance Awards Granted to Executive Officers $ 712 $ 1,418 $ 2,412 $ 2,531 Restricted Stock Dividend Equivalent Units Granted to Executive Officers and Key Employees 106 383 785 810 Restricted Stock Granted to Nonemployee Directors 236 204 440 369 Restricted Stock Units Granted to Nonexecutive Employees 141 143 275 234 ESPP (15% discount) 42 - 95 - Totals $ 1,237 $ 2,148 $ 4,007 $ 3,944 |
Note 10 - Short-term and Long_2
Note 10 - Short-term and Long-term Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Line of Credit Facilities [Table Text Block] | (in thousands) Line Limit In Use on June 30, Restricted due to Available on June 30, Available on Otter Tail Corporation Credit Agreement $ 170,000 $ 41,239 $ - $ 128,761 $ 164,000 OTP Credit Agreement 170,000 - 7,670 162,330 154,524 Total $ 340,000 $ 41,239 $ 7,670 $ 291,091 $ 318,524 |
Schedule of Debt [Table Text Block] | June 30 , 20 20 (in thousands) OTP Otter Tail Consolidated Short-Term Debt $ - $ 41,239 $ 41,239 Long-Term Debt: 3.55% December 15, 2026 $ 80,000 $ 80,000 Senior Unsecured Notes 4.63% December 1, 2021 $ 140,000 140,000 Senior Unsecured Notes 6.15% August 20, 2022 30,000 30,000 Senior Unsecured Notes 6.37% August 20, 2027 42,000 42,000 Senior Unsecured Notes 4.68% February 27, 2029 60,000 60,000 Senior Unsecured Notes 3.07% October 10, 2029 1 10,000 10,000 Senior Unsecured Notes 3.22% February 25, 2030 10,000 10,000 Senior Unsecured Notes 6.47% August 20, 2037 50,000 50,000 Senior Unsecured Notes 3.52% October 10, 2039 26,000 26,000 Senior Unsecured Notes 3.62% February 25, 2040 10,000 10,000 Senior Unsecured Notes 5.47% February 27, 2044 90,000 90,000 Senior Unsecured Notes 4.07% February 7, 2048 100,000 100,000 Senior Unsecured Notes 3.82% October 10, 2049 64,000 64,000 Senior Unsecured Notes 3.92% February 25, 2050 15,000 15,000 PACE Note, 2.54% March 18, 2021 261 261 Total $ 647,000 $ 80,261 $ 727,261 Less: Current Maturities net of Unamortized Debt Issuance Costs - 261 261 Unamortized Long-Term Debt Issuance Costs 2,281 330 2,611 Total Long-Term Debt net of Unamortized Debt Issuance Costs $ 644,719 $ 79,670 $ 724,389 Total Short-Term and Long-Term Debt (with current maturities) $ 644,719 $ 121,170 $ 765,889 December 31, 2019 (in thousands) Short-Term Debt $ - $ 6,000 $ 6,000 Long-Term Debt: 3.55% December 15, 2026 $ 80,000 $ 80,000 Senior Unsecured Notes 4.63% December 1, 2021 $ 140,000 140,000 Senior Unsecured Notes 6.15% August 20, 2022 30,000 30,000 Senior Unsecured Notes 6.37% August 20, 2027 42,000 42,000 Senior Unsecured Notes 4.68% February 27, 2029 60,000 60,000 Senior Unsecured Notes 3.07% October 10, 2029 1 10,000 10,000 Senior Unsecured Notes 6.47% August 20, 2037 50,000 50,000 Senior Unsecured Notes 3.52% October 10, 2039 26,000 26,000 Senior Unsecured Notes 5.47% February 27, 2044 90,000 90,000 Senior Unsecured Notes 4.07% February 7, 2048 100,000 100,000 Senior Unsecured Notes 3.82% October 10, 2049 64,000 64,000 PACE Note, 2.54% March 18, 2021 351 351 Total $ 612,000 $ 80,351 $ 692,351 Less: Current Maturities net of Unamortized Debt Issuance Costs - 183 183 Unamortized Long-Term Debt Issuance Costs 2,231 356 2,587 Total Long-Term Debt net of Unamortized Debt Issuance Costs $ 609,769 $ 79,812 $ 689,581 Total Short-Term and Long-Term Debt (with current maturities) $ 609,769 $ 85,995 $ 695,764 |
Note 11 - Pension Plan and Ot_2
Note 11 - Pension Plan and Other Postretirement Benefits (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Net Benefit Costs [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2020 2019 2020 2019 Service Cost—Benefit Earned During the Period $ 1,656 $ 1,373 $ 3,311 $ 2,746 Interest Cost on Projected Benefit Obligation 3,263 3,603 6,526 7,206 Expected Return on Assets (5,505 ) (5,324 ) (11,010 ) (10,649 ) Amortization of Prior-Service Cost: From Regulatory Asset - 2 - 3 From Other Comprehensive Income 1 - 2 - 4 Amortization of Net Actuarial Loss: From Regulatory Asset 2,231 1,162 4,462 2,325 From Other Comprehensive Income 1 55 26 110 53 Net Periodic Pension Cost 2 $ 1700 $ 844 $ 3,399 $ 1,688 1 Corporate cost included in nonservice cost components of postretirement benefits. 2 Allocation of costs: Service costs included in OTP capital expenditures $ 432 $ 336 $ 855 $ 726 Service costs included in electric operation and maintenance expenses 1,185 1,004 2,377 1,954 Service costs included in other nonelectric expenses 39 33 79 66 Nonservice costs capitalized as regulatory assets 12 (130 ) 23 (280 ) Nonservice costs included in n onservice cost components of postretirement benefits 32 (399 ) 65 (778 ) Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2020 2019 2020 2019 Service Cost—Benefit Earned During the Period $ 44 $ 104 $ 89 $ 209 Interest Cost on Projected Benefit Obligation 362 434 724 868 Amortization of Prior Service Cost: From Regulatory Asset - 1 - 2 From Other Comprehensive Income 1 - 4 - 8 Amortization of Net Actuarial Loss: From Regulatory Asset 24 31 47 62 From Other Comprehensive Income 1 85 88 171 175 Net Periodic Pension Cost 2 $ 515 $ 662 $ 1,031 $ 1,324 1 Amortization of prior service costs and net actuarial losses from other comprehensive income are included in n onservice cost components of postretirement benefits. 2 Allocation of Costs: Service costs included in electric operation and maintenance expenses $ - $ 26 $ - $ 52 Service costs included in other nonelectric expenses 44 78 89 157 Nonservice costs included in n onservice cost components of postretirement benefits 471 558 942 1,115 Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2020 2019 2020 2019 Service Cost—Benefit Earned During the Period $ 462 $ 322 $ 924 $ 643 Interest Cost on Projected Benefit Obligation 599 772 1,197 1,542 Amortization of Prior-Service Cost: From Regulatory Asset (1,170 ) - (2,339 ) - From Other Comprehensive Income 1 (29 ) - (58 ) - Amortization of Net Actuarial Loss: From Regulatory Asset 1,052 392 2,103 785 From Other Comprehensive Income 1 26 9 52 19 Net Periodic Postretirement Benefit Cost 2 $ 940 $ 1,495 $ 1,879 $ 2,989 Effect of Medicare Part D Subsidy $ 280 $ (44 ) $ 561 $ (89 ) 1 Corporate cost included in nonservice cost components of postretirement benefits. 2 Allocation of Costs: Service costs included in OTP capital expenditures $ 120 $ 79 $ 238 $ 170 Service costs included in electric operation and maintenance expenses 331 235 664 458 Service costs included in other nonelectric expenses 11 8 22 15 Nonservice costs capitalized as regulatory assets 124 288 246 621 Nonservice costs included in n onservice cost components of postretirement benefits 354 885 709 1,725 |
Note 12 - Fair Value of Finan_2
Note 12 - Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | June 30, 2020 December 31, 2019 (in thousands) Carrying Amount Fair Value Carrying Amount Fair Value Cash and Cash Equivalents $ 39,512 $ 39,512 $ 21,199 $ 21,199 Short-Term Debt (41,239 ) (41,239 ) (6,000 ) (6,000 ) Long-Term Debt including Current Maturities (724,650 ) (795,995 ) (689,764 ) (742,279 ) |
Note 14 - Income Tax Expense (T
Note 14 - Income Tax Expense (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Notes Tables | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2020 2019 2020 2019 Income Before Income Taxes $ 20,789 $ 18,769 $ 50,695 $ 50,721 Tax Computed at Company’s Net Composite Federal and State Statutory Rate ( 26% $ 5,405 $ 4,879 $ 13,181 $ 13,187 (Decreases) Increases in Tax from: Differences Reversing in Excess of Federal Rates (543 ) (774 ) (1,772 ) (1,757 ) Allowance for Funds Used During Construction – Equity (248 ) (94 ) (560 ) (180 ) Excess Tax Deduction – Equity Method Stock Awards - - (535 ) (827 ) North Dakota Wind Tax Credit Amortization – Net of Federal Taxes (258 ) (258 ) (516 ) (516 ) Research and Development and Other Tax Credits (333 ) (187 ) (387 ) (375 ) Corporate Owned Life Insurance (193 ) (150 ) 14 (559 ) Other Items – Net (22 ) (73 ) 21 (2 ) Income Tax Expense $ 3,808 $ 3,343 $ 9,446 $ 8,971 Effective Income Tax Rate 18.3 % 17.8 % 18.6 % 17.7 % |
Summary of Income Tax Contingencies [Table Text Block] | (in thousands) 2020 2019 Balance on January 1 $ 1,488 $ 1,282 Decreases Related to Tax Positions for Prior Years (42 ) - Increases Related to Tax Positions for Current Year 81 75 Uncertain Positions Resolved During Year - (42 ) Balance on June 30 $ 1,527 $ 1,315 |
Note 1 - Summary of Significa_3
Note 1 - Summary of Significant Accounting Policies (Details Textual) - Variable Interest Entity, Not Primary Beneficiary [Member] $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 50 |
Variable Interest Entity Reporting Entity Involvement, Maximum Loss Exposure, Percentage | 35.00% |
Note 1 - Summary of Significa_4
Note 1 - Summary of Significant Accounting Policies - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Inputs, Level 1 [Member] | ||
Total Assets | $ 3,010 | $ 3,949 |
Fair Value, Inputs, Level 1 [Member] | Equity Funds [Member] | ||
Investments | 1,450 | 1,586 |
Fair Value, Inputs, Level 1 [Member] | Money Market and Mutual Funds [Member] | ||
Other Assets | 1,560 | 2,363 |
Fair Value, Inputs, Level 2 [Member] | ||
Total Assets | 9,022 | 8,184 |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||
Investments | 3,062 | 2,124 |
Fair Value, Inputs, Level 2 [Member] | Government-backed and Government-sponsored Enterprises' Debt Securities [Member] | ||
Investments | $ 5,960 | $ 6,060 |
Note 1 - Summary of Significa_5
Note 1 - Summary of Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Finished Goods | $ 26,190 | $ 31,863 |
Work in Process | 14,418 | 16,508 |
Raw Material, Fuel and Supplies | 49,146 | 49,480 |
Total Inventories | $ 89,754 | $ 97,851 |
Note 1 - Summary of Significa_6
Note 1 - Summary of Significant Accounting Policies - Components of Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Gross Carrying Amount | $ 22,670 | $ 22,670 |
Accumulated Amortization | 11,967 | 11,380 |
Net Carrying Amount | 10,703 | 11,290 |
Customer Relationships [Member] | ||
Gross Carrying Amount | 22,491 | 22,491 |
Accumulated Amortization | 11,820 | 11,259 |
Net Carrying Amount | $ 10,671 | $ 11,232 |
Customer Relationships [Member] | Minimum [Member] | ||
Remaining Amortization Periods (Month) | 82 months | 88 months |
Customer Relationships [Member] | Maximum [Member] | ||
Remaining Amortization Periods (Month) | 182 months | 188 months |
Other Intangible Assets [Member] | ||
Gross Carrying Amount | $ 179 | $ 179 |
Accumulated Amortization | 147 | 121 |
Net Carrying Amount | $ 32 | $ 58 |
Other Intangible Assets [Member] | Minimum [Member] | ||
Remaining Amortization Periods (Month) | 2 months | 8 months |
Other Intangible Assets [Member] | Maximum [Member] | ||
Remaining Amortization Periods (Month) | 39 months | 45 months |
Note 1 - Summary of Significa_7
Note 1 - Summary of Significant Accounting Policies - Amortization Expense for Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Amortization Expense – Intangible Assets | $ 291 | $ 296 | $ 587 | $ 592 |
Note 1 - Summary of Significa_8
Note 1 - Summary of Significant Accounting Policies - Estimated Annual Amortization Expense for Intangible Assets (Details) $ in Thousands | Jun. 30, 2020USD ($) |
2020 | $ 1,140 |
2021 | 1,105 |
2022 | 1,105 |
2023 | 1,104 |
2024 | $ 1,099 |
Note 1 - Summary of Significa_9
Note 1 - Summary of Significant Accounting Policies - Supplemental Disclosure of Cash Flow Information (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Transactions Related to Capital Additions not Settled in Cash | $ 61,925 | $ 16,841 |
Note 1 - Summary of Signific_10
Note 1 - Summary of Significant Accounting Policies - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Beginning Balance | $ 1,681 | $ 1,533 | $ 1,339 | $ 1,407 |
Additions Charged to Expense (net of recoveries) | 736 | 216 | 1,371 | 463 |
Reductions for Amounts Written Off | (317) | (58) | (610) | (179) |
Ending Balance | $ 2,100 | $ 1,691 | $ 2,100 | $ 1,691 |
Note 2 - Segment Information (D
Note 2 - Segment Information (Details Textual) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Number of Reportable Segments | 3 | ||||
Revenue, Segment Benchmark [Member] | Customer Concentration Risk [Member] | |||||
Number of Customers | 0 | ||||
Revenue, Segment Benchmark [Member] | Customer Concentration Risk [Member] | Electric [Member] | |||||
Number of Customers | 1 | ||||
Concentration Risk, Percentage | 11.90% | ||||
Revenue, Segment Benchmark [Member] | Customer Concentration Risk [Member] | Manufacturing [Member] | |||||
Number of Customers | 5 | ||||
Concentration Risk, Percentage | 54.00% | ||||
Revenue, Segment Benchmark [Member] | Customer Concentration Risk [Member] | Manufacturing [Member] | Customer that Manufactures and Sells Recreational Vehicles [Member] | |||||
Number of Customers | 1 | ||||
Concentration Risk, Percentage | 23.80% | ||||
Revenue, Segment Benchmark [Member] | Customer Concentration Risk [Member] | Manufacturing [Member] | Customer that Manufactures and Sells Lawn and Garden Equipment [Member] | |||||
Number of Customers | 1 | ||||
Concentration Risk, Percentage | 11.10% | ||||
Revenue, Segment Benchmark [Member] | Customer Concentration Risk [Member] | Plastics [Member] | |||||
Number of Customers | 2 | ||||
Revenue, Segment Benchmark [Member] | Customer Concentration Risk [Member] | Plastics [Member] | Customer One [Member] | |||||
Concentration Risk, Percentage | 25.30% | ||||
Revenue, Segment Benchmark [Member] | Customer Concentration Risk [Member] | Plastics [Member] | Customer Two [Member] | |||||
Concentration Risk, Percentage | 20.40% | ||||
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | UNITED STATES | |||||
Concentration Risk, Percentage | 98.90% | 98.50% | 99.00% | 98.80% |
Note 2 - Segment Information -
Note 2 - Segment Information - Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Total Operating Revenues | $ 192,756 | $ 229,203 | $ 427,503 | $ 475,175 | |
Interest charges | 8,662 | 7,825 | 16,785 | 15,651 | |
Income Taxes | 3,808 | 3,343 | 9,446 | 8,971 | |
Net Income (Loss) | 16,981 | 15,426 | 41,249 | 41,750 | |
Assets | 2,389,239 | 2,389,239 | $ 2,273,595 | ||
Operating Segments [Member] | Electric [Member] | |||||
Regulated operating revenues | 98,153 | 102,244 | 218,029 | 230,353 | |
Interest charges | 7,348 | 6,625 | 14,732 | 13,266 | |
Income Taxes | 2,579 | 1,037 | 6,199 | 5,808 | |
Net Income (Loss) | 13,306 | 7,502 | 29,488 | 26,202 | |
Assets | 2,054,523 | 2,054,523 | 1,931,525 | ||
Operating Segments [Member] | Electric [Member] | Retail [Member] | |||||
Revenue from Contracts with Customers | 85,344 | 87,976 | 192,034 | 202,931 | |
Changes in Accrued ARP Revenues | 209 | 369 | 122 | (680) | |
Regulated operating revenues | 85,553 | 88,345 | 192,156 | 202,251 | |
Operating Segments [Member] | Electric [Member] | Electric Transmission [Member] | |||||
Revenue from Contracts with Customers | 9,673 | 11,469 | 20,514 | 22,331 | |
Operating Segments [Member] | Electric [Member] | Wholesale [Member] | |||||
Revenue from Contracts with Customers | 765 | 941 | 1,641 | 2,468 | |
Operating Segments [Member] | Electric [Member] | Product and Service, Other [Member] | |||||
Revenue from Contracts with Customers | 2,162 | 1,489 | 3,718 | 3,303 | |
Operating Segments [Member] | Manufacturing [Member] | |||||
Revenue from Contracts with Customers | 45,948 | 73,496 | 114,427 | 151,318 | |
Interest charges | 554 | 646 | 1,108 | 1,230 | |
Income Taxes | (189) | 1,149 | 1,272 | 2,603 | |
Net Income (Loss) | 238 | 3,990 | 5,165 | 8,832 | |
Assets | 184,462 | 184,462 | 195,742 | ||
Operating Segments [Member] | Manufacturing [Member] | Metal Parts and Tooling [Member] | |||||
Revenue from Contracts with Customers | 37,267 | 62,541 | 94,478 | 129,265 | |
Operating Segments [Member] | Manufacturing [Member] | Plastic Products [Member] | |||||
Revenue from Contracts with Customers | 7,840 | 9,353 | 17,723 | 18,398 | |
Operating Segments [Member] | Manufacturing [Member] | Manufactured Product, Other [Member] | |||||
Revenue from Contracts with Customers | 841 | 1,602 | 2,226 | 3,655 | |
Operating Segments [Member] | Plastics [Member] | |||||
Revenue from Contracts with Customers | 48,679 | 53,476 | 95,076 | 93,534 | |
Interest charges | 186 | 215 | 334 | 364 | |
Income Taxes | 1,818 | 2,044 | 3,735 | 3,373 | |
Net Income (Loss) | 5,130 | 5,792 | 10,579 | 9,521 | |
Assets | 102,285 | 102,285 | 92,049 | ||
Corporate, Non-Segment [Member] | |||||
Interest charges | 574 | 339 | 611 | 791 | |
Income Taxes | (400) | (887) | (1,760) | (2,813) | |
Net Income (Loss) | (1,693) | (1,858) | (3,983) | (2,805) | |
Assets | 47,969 | 47,969 | $ 54,279 | ||
Intersegment Eliminations [Member] | |||||
Regulated operating revenues | $ (24) | $ (13) | $ (29) | $ (30) |
Note 3 - Rate and Regulatory _3
Note 3 - Rate and Regulatory Matters (Details Textual) - Otter Tail Power Company [Member] | May 01, 2020USD ($) | Jul. 16, 2019USD ($) | Jul. 09, 2019USD ($) | Jun. 11, 2019USD ($) | May 30, 2019USD ($) | Sep. 26, 2018USD ($) | Apr. 20, 2018USD ($) | Mar. 23, 2018USD ($) | Nov. 16, 2016USD ($) | Apr. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($) | Nov. 02, 2017USD ($) | May 01, 2017 |
EstimatedRecovery from MNCIP | $ 2,700,000 | ||||||||||||||
MISO ROE Incentive Subject to Recovery under Minnesota Transmission Cost Recovery Rider [Member] | |||||||||||||||
MISO Incentive ROE | $ 2,600,000 | ||||||||||||||
Minnesota Public Utilities Commission [Member] | The 2016 General Rate Case [Member] | |||||||||||||||
Percentage of Allowed Rate of Return on Rate Base | 7.5056% | ||||||||||||||
Percentage of Allowed Rate of Return on Equity | 9.41% | ||||||||||||||
North Dakota Public Service Commission [Member] | The 2010 General Rate Case [Member] | |||||||||||||||
General Rate Revenue Increase Requested | $ 13,100,000 | ||||||||||||||
North Dakota Public Service Commission [Member] | The 2017 General Rate Case [Member] | |||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 4,600,000 | $ 7,100,000 | |||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Percentage | 3.10% | 4.80% | |||||||||||||
General Rate Revenue Increase Requested, Decrease | $ 6,000,000 | ||||||||||||||
General Rate Revenue Increase Requested, Decrease, Amount Related to Tax Reform | 4,800,000 | ||||||||||||||
General Rate Revenue Increase Requested, Decrease, Amount Related to Updates Other Than Tax Reform | $ 1,200,000 | ||||||||||||||
Percentage of Requested Allowed Rate of Return on Equity | 9.77% | ||||||||||||||
Equity to Total Capitalization Ratio Basis for Return on Equity | 52.50% | ||||||||||||||
Refunds of Excess Revenues Collected, Amounts Collected Under Higher Interim Tax Rates | $ 800,000 | ||||||||||||||
South Dakota Public Utilities Commission [Member] | The 2018 General Rate Case [Member] | |||||||||||||||
Percentage of Allowed Rate of Return on Equity | 8.75% | ||||||||||||||
Public Utilities, Requested Rate Increase (Decrease), Amount | $ 3,300,000 | ||||||||||||||
Increase in Annual Non-fuel Rates Requested, Step One, Percentage | 10.10% | ||||||||||||||
Increase in Annual Non-fuel Rates Requested, Step Two, Percentage | 1.70% | ||||||||||||||
Contract with Customer, Liability, Revenue Recognized | $ 1,000,000 | ||||||||||||||
Annual Revenue Increase Approved | $ 2,200,000 | ||||||||||||||
Annual Revenue Requirement Shortfall Resulted from Understatement | $ 341,000 | ||||||||||||||
Authorized Return of Equity | 8.75% | ||||||||||||||
Percentage of Excess Weather-normalized Revenue, Refund to Customer | 50.00% | ||||||||||||||
Maximum ROE, Input for Refund to Customer | 9.50% | ||||||||||||||
Percentage of Any Earnings Above Maximum ROE | 100.00% | ||||||||||||||
Minnesota1 [Member] | Otter Tail Power Company's Minnesota Transmission Cost Recovery Rider [Member] | Forecast [Member] | |||||||||||||||
Deferred and Projected Transmission Costs Subject to Future Recovery | $ 13,400,000 | ||||||||||||||
Federal Energy Regulatory Commission [Member] | |||||||||||||||
Contract with Customer, Liability, Total | 2,900,000 | ||||||||||||||
Federal Energy Regulatory Commission [Member] | First Complaint Period [member] | |||||||||||||||
Contract with Customer, Refund Liability, Total | $ 100,000 | ||||||||||||||
Current Return on Equity Used in Transmission Rates | 10.32% | ||||||||||||||
Federal Energy Regulatory Commission [Member] | Second Complaint Period [Member] | |||||||||||||||
Contract with Customer, Refund Liability, Total | $ 1,500,000 | ||||||||||||||
Current Return on Equity Used in Transmission Rates | 12.38% | ||||||||||||||
Federal Energy Regulatory Commission [Member] | Complaint Period Beginning September 2016 [Member] | |||||||||||||||
Contract with Customer, Refund Liability, Total | $ 1,300,000 | ||||||||||||||
Current Return on Equity Used in Transmission Rates | 10.82% | ||||||||||||||
Astoria Station Project [Member] | |||||||||||||||
Current Project Capitalized Cost | $ 108,000,000 | ||||||||||||||
Expanded Capacity of Projects (MW) | 245 | ||||||||||||||
EDF [Member] | Merricourt Project [Member] | |||||||||||||||
Asset Purchase Agreement, Purchase Price | $ 37,700,000 | $ 37,700,000 | $ 34,700,000 | ||||||||||||
Turnkey Engineering, Procurement and Construction Services Agreement, Costs | $ 200,500,000 | ||||||||||||||
Current Project Capitalized Cost | $ 131,700,000 |
Note 3 - Rate and Regulatory _4
Note 3 - Rate and Regulatory Matters - Summary of Status of Updates for Previous Two Years for Various Rate Riders (Details) - Otter Tail Power Company [Member] $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)kWh | Jun. 30, 2019USD ($) | |
Annual Revenue | $ 7,016 | $ 4,537 | $ 17,182 | $ 11,417 |
Minnesota1 [Member] | Conservation Improvement Program Costs and Incentives [Member] | ||||
Annual Revenue | 1,521 | 1,841 | $ 2,607 | 2,728 |
Minnesota1 [Member] | Conservation Improvement Program Costs and Incentives [Member] | The 2019 Incentive and Cost Recovery [Member] | ||||
Request date | May 1, 2020 | |||
Effective Date Requested or Approved | Oct. 1, 2020 | |||
Annual Revenue | $ 8,247 | |||
Rate rider rate (Kilowatt-Hour) | kWh | 0.00485 | |||
Request date | May 1, 2020 | |||
Effective Date Requested or Approved | Oct. 1, 2020 | |||
Minnesota1 [Member] | Conservation Improvement Program Costs and Incentives [Member] | The 2018 Incentive and Cost Recovery [Member] | ||||
Effective Date Requested or Approved | Jan. 1, 2020 | |||
Annual Revenue | $ 11,926 | |||
Rate rider rate (Kilowatt-Hour) | kWh | 0.00710 | |||
Approval date | Dec. 27, 2019 | |||
Effective Date Requested or Approved | Jan. 1, 2020 | |||
Minnesota1 [Member] | Conservation Improvement Program Costs and Incentives [Member] | The 2017 Incentive and Cost Recovery [Member] | ||||
Effective Date Requested or Approved | Nov. 1, 2018 | |||
Annual Revenue | $ 10,283 | |||
Rate rider rate (Kilowatt-Hour) | kWh | 0.00600 | |||
Approval date | Oct. 4, 2018 | |||
Effective Date Requested or Approved | Nov. 1, 2018 | |||
Minnesota1 [Member] | Transmission Cost Recovery Rider [Member] | ||||
Annual Revenue | (314) | (56) | $ 401 | 585 |
Minnesota1 [Member] | Transmission Cost Recovery Rider [Member] | The 2018 Annual Update [Member] | ||||
Request date | May 7, 2020 | |||
Effective Date Requested or Approved | Jan. 1, 2021 | |||
Annual Revenue | $ 10,264 | |||
Request date | May 7, 2020 | |||
Effective Date Requested or Approved | Jan. 1, 2021 | |||
Minnesota1 [Member] | Transmission Cost Recovery Rider [Member] | The 2017 Rate Reset [Member] | ||||
Effective Date Requested or Approved | Nov. 1, 2017 | |||
Annual Revenue | $ (3,311) | |||
Approval date | Oct. 30, 2017 | |||
Effective Date Requested or Approved | Nov. 1, 2017 | |||
Minnesota1 [Member] | Environmental Cost Recovery Rider [Member] | ||||
Annual Revenue | 0 | 0 | $ 0 | (1) |
Minnesota1 [Member] | Environmental Cost Recovery Rider [Member] | The 2018 Annual Update [Member] | ||||
Effective Date Requested or Approved | Dec. 1, 2018 | |||
Annual Revenue | $ 0 | |||
Approval date | Nov. 29, 2018 | |||
Effective Date Requested or Approved | Dec. 1, 2018 | |||
Rate of base | 0.00% | |||
Minnesota1 [Member] | Renewable Resource Adjustment [Member] | ||||
Annual Revenue | 3,088 | 1,317 | $ 6,342 | 2,633 |
Minnesota1 [Member] | Renewable Resource Adjustment [Member] | The 2018 Annual Update [Member] | ||||
Effective Date Requested or Approved | Nov. 1, 2018 | |||
Annual Revenue | $ 5,886 | |||
Rate rider rate (Kilowatt-Hour) | kWh | 0.00219 | |||
Approval date | Aug. 29, 2018 | |||
Effective Date Requested or Approved | Nov. 1, 2018 | |||
Minnesota1 [Member] | Renewable Resource Adjustment [Member] | The 2019 Annual Update - Revised [Member] | ||||
Effective Date Requested or Approved | Jan. 1, 2020 | |||
Annual Revenue | $ 12,506 | |||
Rate rider rate (Kilowatt-Hour) | kWh | 0.00467 | |||
Approval date | Dec. 19, 2019 | |||
Effective Date Requested or Approved | Jan. 1, 2020 | |||
North Dakota 1 [Member] | Transmission Cost Recovery Rider [Member] | ||||
Annual Revenue | 840 | 874 | $ 2,322 | 2,646 |
North Dakota 1 [Member] | Transmission Cost Recovery Rider [Member] | The 2019 Annual Update [Member] | ||||
Effective Date Requested or Approved | Jan. 1, 2020 | |||
Annual Revenue | $ 5,739 | |||
Approval date | Dec. 18, 2019 | |||
Effective Date Requested or Approved | Jan. 1, 2020 | |||
North Dakota 1 [Member] | Transmission Cost Recovery Rider [Member] | The 2018 Rate Reset for Effect of TCJA [Member] | ||||
Effective Date Requested or Approved | Mar. 1, 2018 | |||
Annual Revenue | $ 7,469 | |||
Approval date | Feb. 27, 2018 | |||
Effective Date Requested or Approved | Mar. 1, 2018 | |||
North Dakota 1 [Member] | Transmission Cost Recovery Rider [Member] | The 2018 Supplemental Update [Member] | ||||
Effective Date Requested or Approved | Feb. 1, 2019 | |||
Annual Revenue | $ 4,801 | |||
Approval date | Dec. 6, 2018 | |||
Effective Date Requested or Approved | Feb. 1, 2019 | |||
North Dakota 1 [Member] | Environmental Cost Recovery Rider [Member] | ||||
Annual Revenue | 0 | (12) | $ 0 | 563 |
North Dakota 1 [Member] | Environmental Cost Recovery Rider [Member] | The 2018 Annual Update [Member] | ||||
Effective Date Requested or Approved | Feb. 1, 2019 | |||
Annual Revenue | $ (378) | |||
Approval date | Dec. 19, 2018 | |||
Effective Date Requested or Approved | Feb. 1, 2019 | |||
Rate of base | (0.31%) | |||
North Dakota 1 [Member] | Environmental Cost Recovery Rider [Member] | The 2019 Annual Update [Member] | ||||
Effective Date Requested or Approved | Nov. 1, 2019 | |||
Annual Revenue | $ 0 | |||
Approval date | Oct. 22, 2019 | |||
Effective Date Requested or Approved | Nov. 1, 2019 | |||
Rate of base | 0.00% | |||
North Dakota 1 [Member] | Environmental Cost Recovery Rider [Member] | The 2018 Rate Reset for Effect of TCJA [Member] | ||||
Effective Date Requested or Approved | Mar. 1, 2018 | |||
Annual Revenue | $ 7,718 | |||
Approval date | Feb. 27, 2018 | |||
Effective Date Requested or Approved | Mar. 1, 2018 | |||
Rate of base | 5.593% | |||
North Dakota 1 [Member] | Renewable Resource Adjustment [Member] | ||||
Annual Revenue | 1,070 | (93) | $ 2,199 | 636 |
North Dakota 1 [Member] | Renewable Resource Adjustment [Member] | The 2020 Annual Update [Member] | ||||
Effective Date Requested or Approved | Apr. 1, 2020 | |||
Annual Revenue | $ 5,762 | |||
Approval date | Mar. 18, 2020 | |||
Effective Date Requested or Approved | Apr. 1, 2020 | |||
Rate of base | 5.637% | |||
North Dakota 1 [Member] | Renewable Resource Adjustment [Member] | The 2019 Annual Update [Member] | ||||
Effective Date Requested or Approved | Jun. 1, 2019 | |||
Annual Revenue | $ (235) | |||
Approval date | May 1, 2019 | |||
Effective Date Requested or Approved | Jun. 1, 2019 | |||
Rate of base | (0.224%) | |||
North Dakota 1 [Member] | Renewable Resource Adjustment [Member] | The 2018 Rate Reset for Effect of TCJA [Member] | ||||
Effective Date Requested or Approved | Mar. 1, 2018 | |||
Annual Revenue | $ 9,650 | |||
Approval date | Feb. 27, 2018 | |||
Effective Date Requested or Approved | Mar. 1, 2018 | |||
Rate of base | 7.493% | |||
North Dakota 1 [Member] | Generation Cost Recovery [Member] | ||||
Annual Revenue | 900 | 222 | $ 1,848 | 470 |
North Dakota 1 [Member] | Generation Cost Recovery [Member] | The 2020 Annual Update [Member] | ||||
Request date | Jun. 10, 2020 | |||
Effective Date Requested or Approved | Jul. 1, 2020 | |||
Annual Revenue | $ 6,184 | |||
Request date | Jun. 10, 2020 | |||
Effective Date Requested or Approved | Jul. 1, 2020 | |||
Rate of base | 6.041% | |||
North Dakota 1 [Member] | Generation Cost Recovery [Member] | The 2019 Initial Request [Member] | ||||
Effective Date Requested or Approved | Jul. 1, 2019 | |||
Annual Revenue | $ 2,720 | |||
Approval date | May 15, 2019 | |||
Effective Date Requested or Approved | Jul. 1, 2019 | |||
Rate of base | 2.547% | |||
South Dakota 1 [Member] | Conservation Improvement Program Costs and Incentives [Member] | ||||
Annual Revenue | 210 | 96 | $ 554 | 340 |
South Dakota 1 [Member] | Transmission Cost Recovery Rider [Member] | ||||
Annual Revenue | 371 | 371 | $ 933 | 844 |
South Dakota 1 [Member] | Transmission Cost Recovery Rider [Member] | The 2020 Annual Update [Member] | ||||
Effective Date Requested or Approved | Mar. 1, 2020 | |||
Annual Revenue | $ 2,327 | |||
Approval date | Feb. 19, 2020 | |||
Effective Date Requested or Approved | Mar. 1, 2020 | |||
South Dakota 1 [Member] | Transmission Cost Recovery Rider [Member] | The 2019 Annual Update [Member] | ||||
Effective Date Requested or Approved | Mar. 1, 2019 | |||
Annual Revenue | $ 1,638 | |||
Approval date | Feb. 20, 2019 | |||
Effective Date Requested or Approved | Mar. 1, 2019 | |||
South Dakota 1 [Member] | Transmission Cost Recovery Rider [Member] | The 2019 Rate Reset [Member] | ||||
Effective Date Requested or Approved | Oct. 1, 2019 | |||
Annual Revenue | $ 2,046 | |||
Approval date | Sep. 17, 2019 | |||
Effective Date Requested or Approved | Oct. 1, 2019 | |||
South Dakota 1 [Member] | Transmission Cost Recovery Rider [Member] | The 2018 Interim Rate Reset [Member] | ||||
Effective Date Requested or Approved | Oct. 18, 2018 | |||
Annual Revenue | $ 1,171 | |||
Approval date | Oct. 18, 2018 | |||
Effective Date Requested or Approved | Oct. 18, 2018 | |||
South Dakota 1 [Member] | Environmental Cost Recovery Rider [Member] | ||||
Annual Revenue | 0 | (23) | $ 0 | (27) |
South Dakota 1 [Member] | Environmental Cost Recovery Rider [Member] | The 2018 Interim Rate Reset [Member] | ||||
Effective Date Requested or Approved | Oct. 18, 2018 | |||
Annual Revenue | $ (189) | |||
Rate rider rate (Kilowatt-Hour) | kWh | (0.00075) | |||
Approval date | Oct. 18, 2018 | |||
Effective Date Requested or Approved | Oct. 18, 2018 | |||
South Dakota 1 [Member] | Phase-in Rate Plan Recovery [Member] | The 2020 Annual Update [Member] | ||||
Request date | Jun. 1, 2020 | |||
Effective Date Requested or Approved | Sep. 1, 2020 | |||
Annual Revenue | $ 1,931 | |||
Request date | Jun. 1, 2020 | |||
Effective Date Requested or Approved | Sep. 1, 2020 | |||
Rate of base | 7.753% | |||
South Dakota 1 [Member] | Phase-In Rate Plan [Member] | ||||
Annual Revenue | $ (670) | $ 0 | $ (24) | $ 0 |
South Dakota 1 [Member] | Phase-In Rate Plan [Member] | The 2019 Initial Request [Member] | ||||
Effective Date Requested or Approved | Sep. 1, 2019 | |||
Annual Revenue | $ 864 | |||
Approval date | Aug. 21, 2019 | |||
Effective Date Requested or Approved | Sep. 1, 2019 | |||
Rate of base | 3.345% |
Note 3 - Rate and Regulatory _5
Note 3 - Rate and Regulatory Matters - Summary of Revenues Recorded Under Rate Riders (Details) - Otter Tail Power Company [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues recorded under rate riders | $ 7,016 | $ 4,537 | $ 17,182 | $ 11,417 |
Renewable Resource Adjustment [Member] | Minnesota1 [Member] | ||||
Revenues recorded under rate riders | 3,088 | 1,317 | 6,342 | 2,633 |
Renewable Resource Adjustment [Member] | North Dakota 1 [Member] | ||||
Revenues recorded under rate riders | 1,070 | (93) | 2,199 | 636 |
Conservation Improvement Program Costs and Incentives [Member] | Minnesota1 [Member] | ||||
Revenues recorded under rate riders | 1,521 | 1,841 | 2,607 | 2,728 |
Conservation Improvement Program Costs and Incentives [Member] | South Dakota 1 [Member] | ||||
Revenues recorded under rate riders | 210 | 96 | 554 | 340 |
Transmission Cost Recovery Rider [Member] | Minnesota1 [Member] | ||||
Revenues recorded under rate riders | (314) | (56) | 401 | 585 |
Transmission Cost Recovery Rider [Member] | North Dakota 1 [Member] | ||||
Revenues recorded under rate riders | 840 | 874 | 2,322 | 2,646 |
Transmission Cost Recovery Rider [Member] | South Dakota 1 [Member] | ||||
Revenues recorded under rate riders | 371 | 371 | 933 | 844 |
Environmental Cost Recovery Rider [Member] | Minnesota1 [Member] | ||||
Revenues recorded under rate riders | 0 | 0 | 0 | (1) |
Environmental Cost Recovery Rider [Member] | North Dakota 1 [Member] | ||||
Revenues recorded under rate riders | 0 | (12) | 0 | 563 |
Environmental Cost Recovery Rider [Member] | South Dakota 1 [Member] | ||||
Revenues recorded under rate riders | 0 | (23) | 0 | (27) |
Generation Cost Recovery [Member] | North Dakota 1 [Member] | ||||
Revenues recorded under rate riders | 900 | 222 | 1,848 | 470 |
Phase-In Rate Plan [Member] | South Dakota 1 [Member] | ||||
Revenues recorded under rate riders | $ (670) | $ 0 | $ (24) | $ 0 |
Note 4 - Regulatory Assets an_3
Note 4 - Regulatory Assets and Liabilities - Amount of Regulatory Assets and Liabilities Recorded on Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | ||
Regulatory Assets - Current | $ 19,958 | $ 21,650 | |
Regulatory Assets - Long -Term | 141,063 | 144,138 | |
Regulatory Assets - Total | 161,021 | 165,788 | |
Regulatory Liabilities - Current | 13,023 | 7,480 | |
Regulatory Liabilities - Long -Term | 238,160 | 239,906 | |
Regulatory Liabilities - Total | 251,183 | 247,386 | |
Net Regulatory Asset Position - Current | 6,935 | 14,170 | |
Net Regulatory Asset Position - Long-Term | (97,097) | (95,768) | |
Net Regulatory Asset/(Liability) Position | (90,162) | (81,598) | |
Deferred Income Taxes [Member] | |||
Regulatory Liabilities - Current | 0 | 0 | |
Regulatory Liabilities - Long -Term | 138,517 | 141,707 | |
Regulatory Liabilities - Total | 138,517 | 141,707 | |
Accumulated Reserve for Estimated Removal Costs - Net of Salvage [Member] | |||
Regulatory Liabilities - Current | 0 | 0 | |
Regulatory Liabilities - Long -Term | 99,055 | 97,726 | |
Regulatory Liabilities - Total | 99,055 | 97,726 | |
Refundable Fuel Clause Adjustment Revenues [Member] | |||
Regulatory Liabilities - Current | 10,241 | 3,982 | |
Regulatory Liabilities - Long -Term | 0 | 0 | |
Regulatory Liabilities - Total | $ 10,241 | $ 3,982 | |
Regulatory Liabilities - Remaining Recovery/Refund Period (Month) | 12 months | 12 months | |
North Dakota Transmission Cost Recovery Rider Accrued Refund [Member] | |||
Regulatory Liabilities - Current | $ 1,010 | $ 700 | |
Regulatory Liabilities - Long -Term | 0 | 0 | |
Regulatory Liabilities - Total | $ 1,010 | $ 700 | |
Regulatory Liabilities - Remaining Recovery/Refund Period (Month) | 6 months | 12 months | |
South Dakota Phase-in Rate Plan Rider Accrued Refund [Member] | |||
Regulatory Liabilities - Current | $ 783 | $ 355 | |
Regulatory Liabilities - Long -Term | 0 | 0 | |
Regulatory Liabilities - Total | $ 783 | $ 355 | |
Regulatory Liabilities - Remaining Recovery/Refund Period (Month) | 2 months | 9 months | |
Revenue for Rate Case Expenses Subject to Refund - Minnesota [Member] | |||
Regulatory Liabilities - Current | $ 0 | $ 0 | |
Regulatory Liabilities - Long -Term | 518 | 401 | |
Regulatory Liabilities - Total | 518 | 401 | |
Prior Service Costs and Actuarial Losses on Pensions and Other Postretirement Benefits [Member] | |||
Regulatory Liabilities - Current | 471 | 471 | |
Regulatory Liabilities - Long -Term | 0 | 0 | |
Regulatory Liabilities - Total | $ 471 | $ 471 | |
Regulatory Liabilities - Remaining Recovery/Refund Period (Month) | 12 months | 12 months | |
Minnesota Energy Intensive Trade Exposed Rider Accrued Refund [Member] | |||
Regulatory Liabilities - Current | $ 198 | $ 164 | |
Regulatory Liabilities - Long -Term | 0 | 0 | |
Regulatory Liabilities - Total | $ 198 | $ 164 | |
Regulatory Liabilities - Remaining Recovery/Refund Period (Month) | 3 months | 12 months | |
South Dakota Transmission Cost Recovery Rider Accrued Refund [Member] | |||
Regulatory Liabilities - Current | $ 159 | ||
Regulatory Liabilities - Long -Term | 0 | ||
Regulatory Liabilities - Total | $ 159 | ||
Regulatory Liabilities - Remaining Recovery/Refund Period (Month) | 8 months | ||
North Dakota Renewable Resource Recovery Rider Accrued Refund [Member] | |||
Regulatory Liabilities - Current | $ 156 | $ 1,515 | |
Regulatory Liabilities - Long -Term | 0 | 0 | |
Regulatory Liabilities - Total | $ 156 | $ 1,515 | |
Regulatory Liabilities - Remaining Recovery/Refund Period (Month) | 9 months | 12 months | |
North Dakota Generation Cost Recovery Rider Accrued Refund [Member] | |||
Regulatory Liabilities - Current | $ 287 | ||
Regulatory Liabilities - Long -Term | 0 | ||
Regulatory Liabilities - Total | $ 287 | ||
Regulatory Liabilities - Remaining Recovery/Refund Period (Month) | 6 months | ||
Other [Member] | |||
Regulatory Liabilities - Current | $ 5 | $ 6 | |
Regulatory Liabilities - Long -Term | 70 | 72 | |
Regulatory Liabilities - Total | $ 75 | $ 78 | |
Regulatory Liabilities - Remaining Recovery/Refund Period (Month) | 162 months | 168 months | |
Prior Service Costs and Actuarial Losses on Pensions and Other Postretirement Benefits [Member] | |||
Regulatory Assets - Current | [1] | $ 9,018 | $ 9,090 |
Regulatory Assets - Long -Term | [1] | 124,901 | 129,102 |
Regulatory Assets - Total | [1] | 133,919 | 138,192 |
Accumulated Asset Retirement Obligation (ARO) Accretion/Depreciation Adjustment [Member] | |||
Regulatory Assets - Current | [1] | 0 | 0 |
Regulatory Assets - Long -Term | [1] | 8,243 | 7,772 |
Regulatory Assets - Total | [2] | 8,243 | 7,772 |
Minnesota Transmission Cost Recovery Rider Accrued Revenues [Member] | |||
Regulatory Assets - Current | [2] | 6,563 | 4,208 |
Regulatory Assets - Long -Term | [2] | 0 | 0 |
Regulatory Assets - Total | [2] | $ 6,563 | $ 4,208 |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [2] | 12 months | 12 months |
Conservation Improvement Program Costs and Incentives [Member] | |||
Regulatory Assets - Current | [2] | $ 276 | $ 4,024 |
Regulatory Assets - Long -Term | [2] | 3,553 | 2,844 |
Regulatory Assets - Total | [2] | $ 3,829 | $ 6,868 |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [2] | 27 months | 21 months |
MISO Schedule 26/26A Transmission Cost Recovery Rider True-up [Member] | |||
Regulatory Assets - Current | [1] | $ 1,500 | $ 2,033 |
Regulatory Assets - Long -Term | [1] | 963 | 968 |
Regulatory Assets - Total | [1] | $ 2,463 | $ 3,001 |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [1] | 30 months | 24 months |
Nonservice Costs Components of Postretirement Benefits Capitalized for Ratemaking Purposes and Subject to Deferred Recovery [Member] | |||
Regulatory Assets - Current | [1] | $ 0 | $ 0 |
Regulatory Assets - Long -Term | [1] | 1,974 | 1,681 |
Regulatory Assets - Total | [1] | 1,974 | 1,681 |
Minnesota Renewable Resource Rider Accrued Revenues [Member] | |||
Regulatory Assets - Current | [2] | 722 | 131 |
Regulatory Assets - Long -Term | [2] | 0 | 0 |
Regulatory Assets - Total | [2] | $ 722 | $ 131 |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [1] | 12 months | 12 months |
Debt Reacquisition Premiums [Member] | |||
Regulatory Assets - Current | [1] | $ 204 | $ 201 |
Regulatory Assets - Long -Term | [1] | 430 | 548 |
Regulatory Assets - Total | [1] | $ 634 | $ 749 |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [1] | 147 months | 153 months |
Big Stone II Unrecovered Project Costs - Minnesota [Member] | |||
Regulatory Assets - Current | [1] | $ 583 | $ 715 |
Regulatory Assets - Long -Term | [1] | 0 | 225 |
Regulatory Assets - Total | [1] | $ 583 | $ 940 |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [1] | 10 months | 16 months |
Minnesota SPP Transmission Cost Recovery Tracker [Member] | |||
Regulatory Assets - Current | [1] | $ 0 | $ 0 |
Regulatory Assets - Long -Term | [1] | 401 | 202 |
Regulatory Assets - Total | [1] | 401 | 202 |
Deferred Marked-to-Market Losses [Member] | |||
Regulatory Assets - Current | [1] | 372 | 743 |
Regulatory Assets - Total | [1] | $ 372 | $ 743 |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [1] | 6 months | 12 months |
Big Stone II Unrecovered Project Costs - South Dakota [Member] | |||
Regulatory Assets - Current | [1] | $ 144 | $ 144 |
Regulatory Assets - Long -Term | [1] | 180 | 253 |
Regulatory Assets - Total | [1] | $ 324 | $ 397 |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [1] | 27 months | 33 months |
South Dakota Deferred Rate Case Expenses Subject to Recovery [Member] | |||
Regulatory Assets - Current | [1] | $ 138 | $ 138 |
Regulatory Assets - Long -Term | [1] | 177 | 245 |
Regulatory Assets - Total | [1] | $ 315 | $ 383 |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [1] | 28 months | 34 months |
North Dakota Generation Cost Recovery Rider Accrued Revenues [Member] | |||
Regulatory Assets - Current | [2] | $ 312 | |
Regulatory Assets - Long -Term | [2] | 0 | |
Regulatory Assets - Total | [2] | $ 312 | |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [2] | 12 months | |
North Dakota Deferred Rate Case Expenses Subject to Recovery [Member] | |||
Regulatory Assets - Current | [1] | $ 122 | $ 122 |
Regulatory Assets - Long -Term | [1] | 183 | 244 |
Regulatory Assets - Total | [1] | $ 305 | $ 366 |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [1] | 30 months | 36 months |
Deferred Lease Expenses [Member] | |||
Regulatory Assets - Current | [1] | $ 0 | $ 0 |
Regulatory Assets - Long -Term | [1] | 58 | 54 |
Regulatory Assets - Total | [1] | $ 58 | $ 54 |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [1] | 33 months | 39 months |
Minnesota Environmental Cost Recovery Rider Accrued Revenues [Member] | |||
Regulatory Assets - Current | [2] | $ 4 | $ 4 |
Regulatory Assets - Long -Term | [2] | 0 | 0 |
Regulatory Assets - Total | [2] | $ 4 | $ 4 |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [2] | 12 months | 12 months |
South Dakota Transmission Cost Recovery Rider Accrued Revenues [Member] | |||
Regulatory Assets - Current | [2] | $ 97 | |
Regulatory Assets - Long -Term | [2] | 0 | |
Regulatory Assets - Total | [2] | $ 97 | |
Regulatory Assets - Remaining Recovery/Refund Period (Month) | [2] | 2 months | |
[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 Ea_3
Note 5 - Common Shares and Earnings Per Share (Details Textual) - Distribution Agreement With KeyBanc [Member] | Nov. 08, 2019USD ($) |
Sale of Stock, Maximum Aggregate Sales Price | $ 75,000,000 |
Sale of Stock, Commission Percent | 2.00% |
Note 5 - Common Shares and Ea_4
Note 5 - Common Shares and Earnings Per Share - Reconciliation of Company's Common Shares (Details) | 6 Months Ended |
Jun. 30, 2020shares | |
Common Share Outstanding, Beginning Balance (in shares) | 40,157,591 |
Dividends Reinvested (in shares) | 63,929 |
Cash Invested (in shares) | 30,345 |
Vesting of Restricted Stock Units (in shares) | 35,720 |
Cash Invested (in shares) | 13,432 |
Dividends Reinvested (in shares) | 4,835 |
Restricted Stock Issued to Directors (in shares) | 17,400 |
Directors Deferred Compensation (in shares) | 612 |
Shares Withheld for Individual Income Tax Requirements (in shares) | (38,217) |
Common Shares Outstanding, ending balance (in shares) | 40,848,828 |
Performance Awards 2017 [Member] | |
Executive Stock Performance Awards (2017 awards earned) (in shares) | 62,497 |
At the Market Offering [Member] | |
At-the-Market Offering (in shares) | 500,684 |
Note 5 - Common Shares and Ea_5
Note 5 - Common Shares and Earnings Per Share - Reconciliation of Weighted Average Common Shares Outstanding (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Weighted Average Common Shares Outstanding – Basic (in shares) | 40,513,286 | 39,712,036 | 40,365,214 | 39,684,679 |
Shares Expected to be Awarded for Stock Performance Awards Granted to Executive Officers based on Measurement Period-to-Date Performance (in shares) | 97,401 | 134,137 | 111,519 | 146,148 |
Underlying Shares Related to Nonvested Restricted Stock Units Granted to Employees (in shares) | 47,331 | 60,168 | 55,614 | 61,783 |
Shares Expected to be Issued Under the Employee Stock Purchase Plan (in shares) | 15,833 | 0 | 15,905 | 0 |
Nonvested Restricted Shares (in shares) | 1,637 | 9,657 | 10,749 | 15,790 |
Shares Expected to be Issued Under the Deferred Compensation Program for Directors (in shares) | 1,273 | 1,833 | 1,548 | 2,099 |
Total Dilutive Shares (in shares) | 163,475 | 205,795 | 195,335 | 225,820 |
Weighted Average Common Shares Outstanding – Diluted (in shares) | 40,676,761 | 39,917,831 | 40,560,549 | 39,910,499 |
Note 6 - Share-based Payments_2
Note 6 - Share-based Payments (Details Textual) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($)shares | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount, Total | $ | $ 4.8 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition (Year) | 2 years 3 months 18 days |
Stock Performance Awards [Member] | Executive Officer [Member] | The 2014 Stock Incentive Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 55,000 |
Period Specified for Average Adjusted Return (Year) | 3 years |
Number of Trading Days (Day) | 20 days |
Number of Shares Authorized for Actual Payment (in shares) | 82,500 |
Stock Performance Awards [Member] | Executive Officer [Member] | The 2014 Stock Incentive Plan [Member] | Minimum [Member] | |
Percentage of Target Amount as Actual Payment | 0.00% |
Stock Performance Awards [Member] | Executive Officer [Member] | The 2014 Stock Incentive Plan [Member] | Maximum [Member] | |
Percentage of Target Amount as Actual Payment | 150.00% |
Stock Performance Awards [Member] | Executive Officer [Member] | The 2014 Stock Incentive Plan [Member] | Share-based Payment Arrangement, Tranche One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 27,500 |
Stock Performance Awards [Member] | Executive Officer [Member] | The 2014 Stock Incentive Plan [Member] | Share-based Payment Arrangement, Tranche Two [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 27,500 |
Note 6 - Share-based Payments -
Note 6 - Share-based Payments - Stock Incentive Awards Granted to Officers Under the 2014 Stock Incentive Plan (Details) | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Restricted Stock Units (RSUs) [Member] | The 2014 Stock Incentive Plan [Member] | February 3, 2020 [Member] | Management [Member] | |
Shares/units granted (in shares) | shares | 3,000 |
Shares/units granted, weighted average grant-date fair value per award (in dollars per share) | $ / shares | $ 54.0450 |
Shares/units granted, vesting date | 25% per year through February 6, 2024 |
Restricted Stock Units (RSUs) [Member] | The 2014 Stock Incentive Plan [Member] | February 12, 2020 [Member] | Executive Officer [Member] | |
Shares/units granted (in shares) | shares | 15,300 |
Shares/units granted, weighted average grant-date fair value per award (in dollars per share) | $ / shares | $ 54.0607 |
Shares/units granted, vesting date | 25% per year through February 6, 2024 |
Restricted Stock Units (RSUs) [Member] | The 2014 Stock Incentive Plan [Member] | April 20, 2020 [Member] | Non-executive Employees [Member] | |
Shares/units granted (in shares) | shares | 14,975 |
Shares/units granted, weighted average grant-date fair value per award (in dollars per share) | $ / shares | $ 40.18 |
Shares/units granted, vesting date | 100% April 8, 2024 |
Performance Shares [Member] | The 2014 Stock Incentive Plan [Member] | February 12, 2020 [Member] | |
Shares/units granted (in shares) | shares | 47,600 |
Shares/units granted, weighted average grant-date fair value per award (in dollars per share) | $ / shares | $ 47.10 |
Shares/units granted, vesting date | December 31, 2022 |
Performance Shares [Member] | The 2014 Stock Incentive Plan Under Legacy Agreement [Member] | February 12, 2020 [Member] | |
Shares/units granted (in shares) | shares | 7,400 |
Shares/units granted, weighted average grant-date fair value per award (in dollars per share) | $ / shares | $ 52.20 |
Shares/units granted, vesting date | December 31, 2022 |
Restricted Stock [Member] | The 2014 Stock Incentive Plan [Member] | April 20, 2020 [Member] | Nonemployee Directors [Member] | |
Shares/units granted (in shares) | shares | 17,400 |
Shares/units granted, weighted average grant-date fair value per award (in dollars per share) | $ / shares | $ 44.85 |
Shares/units granted, vesting date | 33% per year through April 8, 2023 |
Note 6 - Share-based Payments_3
Note 6 - Share-based Payments - Stock Incentive Awards Granted to Officers Under the 2014 Stock Incentive Plan (Details) (Parentheticals) - The 2014 Stock Incentive Plan [Member] | 6 Months Ended |
Jun. 30, 2020 | |
Management [Member] | Restricted Stock Units (RSUs) [Member] | February 3, 2020 [Member] | |
Shares/units granted, vesting percentage | 25.00% |
Executive Officer [Member] | Restricted Stock Units (RSUs) [Member] | February 12, 2020 [Member] | |
Shares/units granted, vesting percentage | 25.00% |
Non-executive Employees [Member] | Restricted Stock Units (RSUs) [Member] | April 20, 2020 [Member] | |
Shares/units granted, vesting percentage | 100.00% |
Nonemployee Directors [Member] | Restricted Stock [Member] | April 20, 2020 [Member] | |
Shares/units granted, vesting percentage | 33.00% |
Note 6 - Share-based Payments_4
Note 6 - Share-based Payments - Amounts of Compensation Expense Recognized Under Stock-based Payment Programs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Stock compensation expense | $ 1,237 | $ 2,148 | $ 4,007 | $ 3,944 |
Stock Performance Awards [Member] | Executive Officer [Member] | ||||
Stock compensation expense | 712 | 1,418 | 2,412 | 2,531 |
Restricted Stock Units (RSUs) [Member] | Executive Officers and Key Employees [Member] | ||||
Stock compensation expense | 106 | 383 | 785 | 810 |
Restricted Stock Units (RSUs) [Member] | Nonemployee Directors [Member] | ||||
Stock compensation expense | 236 | 204 | 440 | 369 |
Restricted Stock Units (RSUs) [Member] | Non-executive Employees [Member] | ||||
Stock compensation expense | 141 | 143 | 275 | 234 |
Employee Stock Purchase Plan [Member] | ||||
Stock compensation expense | $ 42 | $ 0 | $ 95 | $ 0 |
Note 7 - Retained Earnings an_2
Note 7 - Retained Earnings and Dividend Restriction (Details Textual) - USD ($) | 6 Months Ended | |
Jun. 30, 2020 | Dec. 31, 2019 | |
Capitalization, Long-term Debt and Equity, Total | $ 1,546,444,000 | $ 1,471,063,000 |
Otter Tail Power Company [Member] | Minnesota Public Utilities Commission [Member] | Minimum [Member] | ||
Public Utilities, Requested Equity Capital Structure, Percentage | 47.50% | |
Otter Tail Power Company [Member] | Minnesota Public Utilities Commission [Member] | Maximum [Member] | ||
Public Utilities, Requested Equity Capital Structure, Percentage | 58.10% | |
Otter Tail Power Company [Member] | Maximum Allowed Capitalization Under Minnesota Capital Structure Filing [Member] | ||
Equity to Total Capitalization Ratio | 52.90% | |
Net Assets Restricted from Distribution | $ 549,000,000 | |
Capitalization, Long-term Debt and Equity, Total | $ 1,704,607,000 |
Note 9 - Commitments and Cont_2
Note 9 - Commitments and Contingencies (Details Textual) - USD ($) $ in Millions | Jul. 30, 2020 | Oct. 01, 2019 | Jun. 30, 2020 | Dec. 31, 2019 |
Otter Tail Power Company [Member] | Federal Energy Regulatory Commission[Member] | ||||
Estimated Liability of Refund Obligation | $ 2.9 | |||
Otter Tail Power Company [Member] | Hoot Lake and Seven Hydroelectric Plants [Member] | Subsequent Event [Member] | ||||
Reduction in Depreciable Lives, Increase in Depreciation Expense | $ 1.4 | |||
Otter Tail Power Company [Member] | Construction Programs [Member] | ||||
Contract Expiration Year | 2022 | 2021 | ||
Long-term Purchase Commitment, Amount | $ 185 | $ 317 | ||
Otter Tail Power Company [Member] | Coal Purchase Commitments 2 [Member] | ||||
Contract Expiration Year | 2040 | |||
Otter Tail Power Company [Member] | OTP Land Easements Through 2034 [Member] | ||||
Long-term Purchase Commitment, Amount | $ 9.9 | |||
T.O Plastics [Member] | Supply Agreement [Member] | ||||
Long-term Purchase Commitment, Period (Year) | 6 years | |||
Long-term Purchase Commitment, Minimum Annual Amount | $ 1.9 |
Note 10 - Short-term and Long_3
Note 10 - Short-term and Long-term Borrowings (Details Textual) - Otter Tail Power Company [Member] - USD ($) | Feb. 25, 2020 | Jun. 30, 2020 | Sep. 12, 2019 |
The 2019 Note Purchase Agreement [Member] | |||
Proceeds from Issuance of Debt | $ 35,000,000 | ||
Debt Instrument, Prepayment, Minimum Percentage of Aggregate Principal Amount | 10.00% | ||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||
Interest-bearing Debt, Maximum Percentage of Total Capitalization | 60.00% | ||
Priority Debt to Total Capitalization | 20.00% | ||
The 2019 Note Purchase Agreement [Member] | Senior Unsecured Note [Member[ | |||
Debt Instrument, Face Amount | $ 175,000,000 | ||
Series 2019 A Senior Unsecured Note Due October 10, 2029 [Member] | |||
Debt Instrument, Face Amount | $ 10,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.07% | ||
Series 2019 B Senior Unsecured Note Due October 10, 2039 [Member] | |||
Debt Instrument, Face Amount | $ 26,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.52% | ||
Series 2019 C Senior Unsecured Note Due October 10, 2049 [Member] | |||
Debt Instrument, Face Amount | $ 64,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.82% | ||
Series 2020 A Senior Unsecured Notes Due February 25, 2030 [Member] | |||
Debt Instrument, Face Amount | $ 10,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.22% | ||
Series 2020 B Senior Unsecured Notes Due August 20, 2030 [Member] | |||
Debt Instrument, Face Amount | $ 40,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.22% | ||
Series 2020 C Senior Unsecured Notes Due February 25, 2040 [Member] | |||
Debt Instrument, Face Amount | $ 10,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.62% | ||
Series 2020 D Senior Unsecured Notes Due February 25, 2050 [Member] | |||
Debt Instrument, Face Amount | $ 15,000,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.92% |
Note 10 - Short-term and Long_4
Note 10 - Short-term and Long-term Borrowings - Status of Lines of Credit (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Line Limit | $ 340,000 | |
In Use | 41,239 | |
Restricted due to Outstanding Letters of Credit | 7,670 | |
Available | 291,091 | $ 318,524 |
Otter Tail Corporation Credit Agreement [Member] | ||
Line Limit | 170,000 | |
In Use | 41,239 | |
Restricted due to Outstanding Letters of Credit | 0 | |
Available | 128,761 | 164,000 |
OTP Credit Agreement [Member] | ||
Line Limit | 170,000 | |
In Use | 0 | |
Restricted due to Outstanding Letters of Credit | 7,670 | |
Available | $ 162,330 | $ 154,524 |
Note 10 - Short-term and Long_5
Note 10 - Short-term and Long-term Borrowings - Breakdown of Assignment of Consolidated Short-term and Long-term Debt Outstanding (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | |
Short-Term Debt | $ 41,239 | $ 6,000 | |
Long-Term Debt | 727,261 | 692,351 | |
Less: Current Maturities net of Unamortized Debt Issuance Costs | 261 | 183 | |
Unamortized Long-Term Debt Issuance Costs | 2,611 | 2,587 | |
Total Long-Term Debt net of Unamortized Debt Issuance Costs | 724,389 | 689,581 | |
Total Short-Term and Long-Term Debt (with current maturities) | 765,889 | 695,764 | |
Short-Term Debt | 41,239 | 6,000 | |
The 3.55% Guaranteed Senior Notes, Due December 15, 2026 [Member] | |||
Long-Term Debt | $ 80,000 | $ 80,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.55% | 3.55% | |
Senior Unsecured Notes 4.63%, Series 2011A, due December 1, 2021 [Member] | |||
Long-Term Debt | $ 140,000 | $ 140,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.63% | 4.63% | |
Senior Unsecured Notes 6.15%, Series 2007B, due August 20, 2022 [Member] | |||
Long-Term Debt | $ 30,000 | $ 30,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.15% | 6.15% | |
Senior Unsecured Notes 6.37%, Series C, Due August 20, 2027 [Member] | |||
Long-Term Debt | $ 42,000 | $ 42,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.37% | 6.37% | |
Senior Unsecured Notes 4.68%, Series 2013A, due February 27, 2029 [Member] | |||
Long-Term Debt | $ 60,000 | $ 60,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.68% | 4.68% | |
Senior Unsecured Notes 3.07%, Series 2019A, due October 10, 2029 [Member] | |||
Long-Term Debt | [1] | $ 10,000 | $ 10,000 |
Debt Instrument, Interest Rate, Stated Percentage | 3.07% | 3.07% | |
Senior Unsecured Notes 3.22%, Series 2020A, due February 25, 2030 [Member] | |||
Long-Term Debt | $ 10,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.22% | ||
Senior Unsecured Notes 6.47%, Series 2007D, due August 20, 2037 [Member] | |||
Long-Term Debt | $ 50,000 | $ 50,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.47% | 6.47% | |
Senior Unsecured Notes 3.52%, Series 2019B, Due October 10, 2039 [Member] | |||
Long-Term Debt | $ 26,000 | $ 26,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.52% | 3.52% | |
Senior Unsecured Notes 3.62%. Series 2020C, due February 25, 2040 [Member] | |||
Long-Term Debt | $ 10,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.62% | ||
Senior Unsecured Notes 5.47%, Series 2013B, due February 27, 2044 [Member] | |||
Long-Term Debt | $ 90,000 | $ 90,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.47% | 5.47% | |
Senior Unsecured Notes 4.07%, Series 2018A, Due February 7, 2048 [Member] | |||
Long-Term Debt | $ 100,000 | $ 100,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.07% | 4.07% | |
Senior Unsecured Notes 3.82%, Series 2019C, due October 10, 2049 [Member] | |||
Long-Term Debt | $ 64,000 | $ 64,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.82% | 3.82% | |
Senior Unsecured Notes 3.92%, Series 2020D, due February 25, 2050 [Member] | |||
Long-Term Debt | $ 15,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.92% | ||
PACE Note, 2.54%, due March 18, 2021 [Member] | |||
Long-Term Debt | $ 261 | $ 351 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.54% | 2.54% | |
Parent Company [Member] | |||
Short-Term Debt | $ 41,239 | $ 6,000 | |
Long-Term Debt | 80,261 | 80,351 | |
Less: Current Maturities net of Unamortized Debt Issuance Costs | 261 | 183 | |
Unamortized Long-Term Debt Issuance Costs | 330 | 356 | |
Total Long-Term Debt net of Unamortized Debt Issuance Costs | 79,670 | 79,812 | |
Total Short-Term and Long-Term Debt (with current maturities) | 121,170 | 85,995 | |
Short-Term Debt | 41,239 | 6,000 | |
Parent Company [Member] | The 3.55% Guaranteed Senior Notes, Due December 15, 2026 [Member] | |||
Long-Term Debt | $ 80,000 | $ 80,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.55% | 3.55% | |
Parent Company [Member] | PACE Note, 2.54%, due March 18, 2021 [Member] | |||
Long-Term Debt | $ 261 | $ 351 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.54% | 2.54% | |
Otter Tail Power Company [Member] | |||
Long-Term Debt | $ 647,000 | $ 612,000 | |
Unamortized Long-Term Debt Issuance Costs | 2,281 | 2,231 | |
Total Long-Term Debt net of Unamortized Debt Issuance Costs | 644,719 | 609,769 | |
Total Short-Term and Long-Term Debt (with current maturities) | 644,719 | 609,769 | |
Otter Tail Power Company [Member] | Senior Unsecured Notes 4.63%, Series 2011A, due December 1, 2021 [Member] | |||
Long-Term Debt | $ 140,000 | $ 140,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.63% | 4.63% | |
Otter Tail Power Company [Member] | Senior Unsecured Notes 6.15%, Series 2007B, due August 20, 2022 [Member] | |||
Long-Term Debt | $ 30,000 | $ 30,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.15% | 6.15% | |
Otter Tail Power Company [Member] | Senior Unsecured Notes 6.37%, Series C, Due August 20, 2027 [Member] | |||
Long-Term Debt | $ 42,000 | $ 42,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.37% | 6.37% | |
Otter Tail Power Company [Member] | Senior Unsecured Notes 4.68%, Series 2013A, due February 27, 2029 [Member] | |||
Long-Term Debt | $ 60,000 | $ 60,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.68% | 4.68% | |
Otter Tail Power Company [Member] | Senior Unsecured Notes 3.07%, Series 2019A, due October 10, 2029 [Member] | |||
Long-Term Debt | [1] | $ 10,000 | $ 10,000 |
Debt Instrument, Interest Rate, Stated Percentage | 3.07% | 3.07% | |
Otter Tail Power Company [Member] | Senior Unsecured Notes 3.22%, Series 2020A, due February 25, 2030 [Member] | |||
Long-Term Debt | $ 10,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.22% | ||
Otter Tail Power Company [Member] | Senior Unsecured Notes 6.47%, Series 2007D, due August 20, 2037 [Member] | |||
Long-Term Debt | $ 50,000 | $ 50,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.47% | 6.47% | |
Otter Tail Power Company [Member] | Senior Unsecured Notes 3.52%, Series 2019B, Due October 10, 2039 [Member] | |||
Long-Term Debt | $ 26,000 | $ 26,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.52% | 3.52% | |
Otter Tail Power Company [Member] | Senior Unsecured Notes 3.62%. Series 2020C, due February 25, 2040 [Member] | |||
Long-Term Debt | $ 10,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.62% | ||
Otter Tail Power Company [Member] | Senior Unsecured Notes 5.47%, Series 2013B, due February 27, 2044 [Member] | |||
Long-Term Debt | $ 90,000 | $ 90,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.47% | 5.47% | |
Otter Tail Power Company [Member] | Senior Unsecured Notes 4.07%, Series 2018A, Due February 7, 2048 [Member] | |||
Long-Term Debt | $ 100,000 | $ 100,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.07% | 4.07% | |
Otter Tail Power Company [Member] | Senior Unsecured Notes 3.82%, Series 2019C, due October 10, 2049 [Member] | |||
Long-Term Debt | $ 64,000 | $ 64,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.82% | 3.82% | |
Otter Tail Power Company [Member] | Senior Unsecured Notes 3.92%, Series 2020D, due February 25, 2050 [Member] | |||
Long-Term Debt | $ 15,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.92% | ||
[1] | Holder is COBANK, a cooperative lender. Interest payments are subject to cash credits which may result in a lower effective interest rate. |
Note 10 - Short-term and Long_6
Note 10 - Short-term and Long-term Borrowings - Breakdown of Assignment of Consolidated Short-term and Long-term Debt Outstanding (Details) (Parentheticals) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
The 3.55% Guaranteed Senior Notes, Due December 15, 2026 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.55% | 3.55% |
Long-Term Debt, Due Date | Dec. 15, 2026 | Dec. 15, 2026 |
Senior Unsecured Notes 4.63%, Series 2011A, due December 1, 2021 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.63% | 4.63% |
Long-Term Debt, Due Date | Dec. 1, 2021 | Dec. 1, 2021 |
Senior Unsecured Notes 6.15%, Series 2007B, due August 20, 2022 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 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] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.37% | 6.37% |
Long-Term Debt, Due Date | Aug. 20, 2027 | Aug. 20, 2027 |
Senior Unsecured Notes 4.68%, Series 2013A, due February 27, 2029 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.68% | 4.68% |
Long-Term Debt, Due Date | Feb. 27, 2029 | Feb. 27, 2029 |
Senior Unsecured Notes 3.07%, Series 2019A, due October 10, 2029 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.07% | 3.07% |
Long-Term Debt, Due Date | Oct. 10, 2029 | Oct. 10, 2029 |
Senior Unsecured Notes 3.22%, Series 2020A, due February 25, 2030 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.22% | |
Long-Term Debt, Due Date | Feb. 25, 2030 | |
Senior Unsecured Notes 6.47%, Series 2007D, due August 20, 2037 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.47% | 6.47% |
Long-Term Debt, Due Date | Aug. 20, 2037 | Aug. 20, 2037 |
Senior Unsecured Notes 3.52%, Series 2019B, Due October 10, 2039 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.52% | 3.52% |
Long-Term Debt, Due Date | Oct. 10, 2039 | Oct. 10, 2039 |
Senior Unsecured Notes 3.62%. Series 2020C, due February 25, 2040 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.62% | |
Long-Term Debt, Due Date | Feb. 25, 2040 | |
Senior Unsecured Notes 5.47%, Series 2013B, due February 27, 2044 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.47% | 5.47% |
Long-Term Debt, Due Date | Feb. 27, 2044 | Feb. 27, 2044 |
Senior Unsecured Notes 4.07%, Series 2018A, Due February 7, 2048 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.07% | 4.07% |
Long-Term Debt, Due Date | Feb. 7, 2048 | Feb. 7, 2048 |
Senior Unsecured Notes 3.82%, Series 2019C, due October 10, 2049 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.82% | 3.82% |
Long-Term Debt, Due Date | Oct. 10, 2049 | Oct. 10, 2049 |
Senior Unsecured Notes 3.92%, Series 2020D, due February 25, 2050 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.92% | |
Long-Term Debt, Due Date | Feb. 25, 2050 | |
PACE Note, 2.54%, due March 18, 2021 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.54% | 2.54% |
Long-Term Debt, Due Date | Mar. 18, 2021 | Mar. 18, 2021 |
Parent Company [Member] | The 3.55% Guaranteed Senior Notes, Due December 15, 2026 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.55% | 3.55% |
Long-Term Debt, Due Date | Dec. 15, 2026 | Dec. 15, 2026 |
Parent Company [Member] | PACE Note, 2.54%, due March 18, 2021 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.54% | 2.54% |
Long-Term Debt, Due Date | Mar. 18, 2021 | Mar. 18, 2021 |
Otter Tail Power Company [Member] | Senior Unsecured Notes 4.63%, Series 2011A, due December 1, 2021 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.63% | 4.63% |
Long-Term Debt, Due Date | Dec. 1, 2021 | Dec. 1, 2021 |
Otter Tail Power Company [Member] | Senior Unsecured Notes 6.15%, Series 2007B, due August 20, 2022 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.15% | 6.15% |
Long-Term Debt, Due Date | Aug. 20, 2022 | Aug. 20, 2022 |
Otter Tail Power Company [Member] | Senior Unsecured Notes 6.37%, Series C, Due August 20, 2027 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.37% | 6.37% |
Long-Term Debt, Due Date | Aug. 20, 2027 | Aug. 20, 2027 |
Otter Tail Power Company [Member] | Senior Unsecured Notes 4.68%, Series 2013A, due February 27, 2029 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.68% | 4.68% |
Long-Term Debt, Due Date | Feb. 27, 2029 | Feb. 27, 2029 |
Otter Tail Power Company [Member] | Senior Unsecured Notes 3.07%, Series 2019A, due October 10, 2029 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.07% | 3.07% |
Long-Term Debt, Due Date | Oct. 10, 2029 | Oct. 10, 2029 |
Otter Tail Power Company [Member] | Senior Unsecured Notes 3.22%, Series 2020A, due February 25, 2030 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.22% | |
Long-Term Debt, Due Date | Feb. 25, 2030 | |
Otter Tail Power Company [Member] | Senior Unsecured Notes 6.47%, Series 2007D, due August 20, 2037 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.47% | 6.47% |
Long-Term Debt, Due Date | Aug. 20, 2037 | Aug. 20, 2037 |
Otter Tail Power Company [Member] | Senior Unsecured Notes 3.52%, Series 2019B, Due October 10, 2039 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.52% | 3.52% |
Long-Term Debt, Due Date | Oct. 10, 2039 | Oct. 10, 2039 |
Otter Tail Power Company [Member] | Senior Unsecured Notes 3.62%. Series 2020C, due February 25, 2040 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.62% | |
Long-Term Debt, Due Date | Feb. 25, 2040 | |
Otter Tail Power Company [Member] | Senior Unsecured Notes 5.47%, Series 2013B, due February 27, 2044 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.47% | 5.47% |
Long-Term Debt, Due Date | Feb. 27, 2044 | Feb. 27, 2044 |
Otter Tail Power Company [Member] | Senior Unsecured Notes 4.07%, Series 2018A, Due February 7, 2048 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.07% | 4.07% |
Long-Term Debt, Due Date | Feb. 7, 2048 | Feb. 7, 2048 |
Otter Tail Power Company [Member] | Senior Unsecured Notes 3.82%, Series 2019C, due October 10, 2049 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.82% | 3.82% |
Long-Term Debt, Due Date | Oct. 10, 2049 | Oct. 10, 2049 |
Otter Tail Power Company [Member] | Senior Unsecured Notes 3.92%, Series 2020D, due February 25, 2050 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.92% | |
Long-Term Debt, Due Date | Feb. 25, 2050 |
Note 11 - Pension Plan and Ot_3
Note 11 - Pension Plan and Other Postretirement Benefits (Details Textual) $ in Millions | 1 Months Ended |
Jan. 31, 2020USD ($) | |
Pension Plan [Member] | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | $ 11.2 |
Note 11 - Pension Plan and Ot_4
Note 11 - Pension Plan and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Pension Plan [Member] | |||||
Service Cost—Benefit Earned During the Period | $ 1,656 | $ 1,373 | $ 3,311 | $ 2,746 | |
Interest Cost on Projected Benefit Obligation | 3,263 | 3,603 | 6,526 | 7,206 | |
Expected Return on Assets | (5,505) | (5,324) | (11,010) | (10,649) | |
From Regulatory Asset | 0 | 2 | 0 | 3 | |
From Other Comprehensive Income | [1] | 0 | 2 | 0 | 4 |
From Regulatory Asset | 2,231 | 1,162 | 4,462 | 2,325 | |
From Other Comprehensive Income | [1] | 55 | 26 | 110 | 53 |
Net Periodic Pension Cost | [2] | 1,700 | 844 | 3,399 | 1,688 |
From Other Comprehensive Income | [1] | 55 | 26 | 110 | 53 |
From Regulatory Asset | (2,231) | (1,162) | (4,462) | (2,325) | |
Pension Plan [Member] | Costs Included in Electric Operation and Maintenance Expenses [Member] | |||||
Net Periodic Pension Cost | 1,185 | 1,004 | 2,377 | 1,954 | |
Pension Plan [Member] | Costs Included in OTP Capital Expenditures [Member] | |||||
Net Periodic Pension Cost | 432 | 336 | 855 | 726 | |
Pension Plan [Member] | Costs Included in Other Nonelectric Expenses [Member] | |||||
Net Periodic Pension Cost | 39 | 33 | 79 | 66 | |
Pension Plan [Member] | Nonservice Costs Included in Nonservice Cost Components of Postretirement Benefits [Member] | |||||
Net Periodic Pension Cost | 32 | (399) | 65 | (778) | |
Pension Plan [Member] | Nonservice Costs Capitalized as Regulatory Assets [Member] | |||||
Net Periodic Pension Cost | 12 | (130) | 23 | (280) | |
Executive Survivor and Supplemental Retirement Plan [Member] | |||||
Service Cost—Benefit Earned During the Period | 44 | 104 | 89 | 209 | |
Interest Cost on Projected Benefit Obligation | 362 | 434 | 724 | 868 | |
From Regulatory Asset | 0 | 1 | 0 | 2 | |
From Other Comprehensive Income | [3] | 0 | 4 | 0 | 8 |
From Regulatory Asset | 24 | 31 | 47 | 62 | |
From Other Comprehensive Income | [3] | 85 | 88 | 171 | 175 |
Net Periodic Pension Cost | [4] | 515 | 662 | 1,031 | 1,324 |
From Other Comprehensive Income | [3] | 85 | 88 | 171 | 175 |
From Regulatory Asset | (24) | (31) | (47) | (62) | |
Executive Survivor and Supplemental Retirement Plan [Member] | Costs Included in Electric Operation and Maintenance Expenses [Member] | |||||
Net Periodic Pension Cost | 0 | 26 | 0 | 52 | |
Executive Survivor and Supplemental Retirement Plan [Member] | Costs Included in Other Nonelectric Expenses [Member] | |||||
Net Periodic Pension Cost | 44 | 78 | 89 | 157 | |
Executive Survivor and Supplemental Retirement Plan [Member] | Nonservice Costs Included in Nonservice Cost Components of Postretirement Benefits [Member] | |||||
Net Periodic Pension Cost | 471 | 558 | 942 | 1,115 | |
Other Postretirement Benefits Plan [Member] | |||||
Service Cost—Benefit Earned During the Period | 462 | 322 | 924 | 643 | |
Interest Cost on Projected Benefit Obligation | 599 | 772 | 1,197 | 1,542 | |
From Regulatory Asset | (1,170) | 0 | (2,339) | 0 | |
From Other Comprehensive Income | [1] | (29) | 0 | (58) | 0 |
From Regulatory Asset | (1,052) | (392) | (2,103) | (785) | |
From Other Comprehensive Income | [1] | 26 | 9 | 52 | 19 |
Net Periodic Pension Cost | [5] | 940 | 1,495 | 1,879 | 2,989 |
From Other Comprehensive Income | [1] | 26 | 9 | 52 | 19 |
From Regulatory Asset | 1,052 | 392 | 2,103 | 785 | |
Effect of Medicare Part D Subsidy | 280 | (44) | 561 | (89) | |
Other Postretirement Benefits Plan [Member] | Costs Included in Electric Operation and Maintenance Expenses [Member] | |||||
Net Periodic Pension Cost | 331 | 235 | 664 | 458 | |
Other Postretirement Benefits Plan [Member] | Costs Included in OTP Capital Expenditures [Member] | |||||
Net Periodic Pension Cost | 120 | 79 | 238 | 170 | |
Other Postretirement Benefits Plan [Member] | Costs Included in Other Nonelectric Expenses [Member] | |||||
Net Periodic Pension Cost | 11 | 8 | 22 | 15 | |
Other Postretirement Benefits Plan [Member] | Nonservice Costs Included in Nonservice Cost Components of Postretirement Benefits [Member] | |||||
Net Periodic Pension Cost | 354 | 885 | 709 | 1,725 | |
Other Postretirement Benefits Plan [Member] | Nonservice Costs Capitalized as Regulatory Assets [Member] | |||||
Net Periodic Pension Cost | $ 124 | $ 288 | $ 246 | $ 621 | |
[1] | Corporate cost included in nonservice cost components of postretirement benefits. | ||||
[2] | Allocation of costs: Service costs included in OTP capital expenditures $ 432 $ 336 $ 855 $ 726 Service costs included in electric operation and maintenance expenses 1,185 1,004 2,377 1,954 Service costs included in other nonelectric expenses 39 33 79 66 Nonservice costs capitalized as regulatory assets 12 (130 ) 23 (280 ) Nonservice costs included in nonservice cost components of postretirement benefits 32 (399 ) 65 (778 ) | ||||
[3] | Amortization of prior service costs and net actuarial losses from other comprehensive income are included in nonservice cost components of postretirement benefits. | ||||
[4] | Allocation of Costs: Service costs included in electric operation and maintenance expenses $ - $ 26 $ - $ 52 Service costs included in other nonelectric expenses 44 78 89 157 Nonservice costs included in nonservice cost components of postretirement benefits 471 558 942 1,115 | ||||
[5] | Allocation of Costs: Service costs included in OTP capital expenditures $ 120 $ 79 $ 238 $ 170 Service costs included in electric operation and maintenance expenses 331 235 664 458 Service costs included in other nonelectric expenses 11 8 22 15 Nonservice costs capitalized as regulatory assets 124 288 246 621 Nonservice costs included in nonservice cost components of postretirement benefits 354 885 709 1,725 |
Note 12 - Fair Value of Finan_3
Note 12 - Fair Value of Financial Instruments (Details Textual) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Otter Tail Corporation Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | 1.50% |
Note 12 - Fair Value of Finan_4
Note 12 - Fair Value of Financial Instruments - Summary of Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Reported Value Measurement [Member] | ||
Cash and Cash Equivalents | $ 39,512 | $ 21,199 |
Short-Term Debt | (41,239) | (6,000) |
Long-Term Debt including Current Maturities | (724,650) | (689,764) |
Estimate of Fair Value Measurement [Member] | ||
Cash and Cash Equivalents | 39,512 | 21,199 |
Short-Term Debt | (41,239) | (6,000) |
Long-Term Debt including Current Maturities | $ (795,995) | $ (742,279) |
Note 14 - Income Tax Expense (D
Note 14 - Income Tax Expense (Details Textual) - USD ($) | Aug. 01, 2020 | Jun. 30, 2020 |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | $ 725,000 | |
Domestic Tax Authority [Member] | Subsequent Event [Member] | ||
Open Tax Year | 2016 2017 2018 2019 | |
State and Local Jurisdiction [Member] | Subsequent Event [Member] | North Dakota Department of Revenue [Member] | ||
Open Tax Year | 2016 2017 2018 2019 | |
State and Local Jurisdiction [Member] | Subsequent Event [Member] | Minnesota Department of Revenue [Member] | ||
Open Tax Year | 2016 2017 2018 2019 |
Note 14 - Income Tax Expense -
Note 14 - Income Tax Expense - Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Before Income Taxes | $ 20,789 | $ 18,769 | $ 50,695 | $ 50,721 |
Tax Computed at Company’s Net Composite Federal and State Statutory Rate (26%) | 5,405 | 4,879 | 13,181 | 13,187 |
(Decreases) Increases in Tax from: | ||||
Differences Reversing in Excess of Federal Rates | (543) | (774) | (1,772) | (1,757) |
Allowance for Funds Used During Construction – Equity | (248) | (94) | (560) | (180) |
Excess Tax Deduction – Equity Method Stock Awards | 0 | 0 | (535) | (827) |
North Dakota Wind Tax Credit Amortization – Net of Federal Taxes | (258) | (258) | (516) | (516) |
Research and Development and Other Tax Credits | (333) | (187) | (387) | (375) |
Corporate Owned Life Insurance | (193) | (150) | 14 | (559) |
Other Items – Net | (22) | (73) | 21 | (2) |
Income Tax Expense | $ 3,808 | $ 3,343 | $ 9,446 | $ 8,971 |
Effective Income Tax Rate | 18.30% | 17.80% | 18.60% | 17.70% |
Note 14 - Income Tax Expense _2
Note 14 - Income Tax Expense - Effective Income Tax Rate (Details) (Parentheticals) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Composite Federal and State Statutory Rate | 26.00% | 26.00% | 26.00% | 26.00% |
Note 14 - Income Tax Expense _3
Note 14 - Income Tax Expense - Unrecognized Tax Benefit Activity (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Balance, beginning | $ 1,488 | $ 1,282 |
Decreases Related to Tax Positions for Prior Years | (42) | 0 |
Increases Related to Tax Positions for Current Year | 81 | 75 |
Uncertain Positions Resolved During Year | 0 | (42) |
Balance, ending | $ 1,527 | $ 1,315 |