Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 30, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 0-53713 | |
Entity Registrant Name | OTTER TAIL CORPORATION | |
Entity Incorporation, State or Country Code | MN | |
Entity Tax Identification Number | 27-0383995 | |
Entity Address, Address Line One | 215 South Cascade Street | |
Entity Address, Address Line Two | 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 $5.00 per share | |
Trading Symbol | OTTR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 41,814,425 | |
Entity Central Index Key | 0001466593 | |
Amendment Flag | false | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2024 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS (un
CONSOLIDATED BALANCE SHEETS (unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets | ||
Cash and Cash Equivalents | $ 238,158 | $ 230,373 |
Receivables, net of allowance for credit losses | 195,674 | 157,143 |
Inventories | 148,194 | 149,701 |
Regulatory Assets | 9,175 | 16,127 |
Other Current Assets | 16,742 | 16,826 |
Total Current Assets | 607,943 | 570,170 |
Noncurrent Assets | ||
Investments | 66,110 | 62,516 |
Property, Plant and Equipment, net of accumulated depreciation | 2,459,189 | 2,418,375 |
Regulatory Assets | 96,682 | 95,715 |
Intangible Assets, net of accumulated amortization | 6,568 | 6,843 |
Goodwill | 37,572 | 37,572 |
Other Noncurrent Assets | 51,968 | 51,377 |
Total Noncurrent Assets | 2,718,089 | 2,672,398 |
Total Assets | 3,326,032 | 3,242,568 |
Current Liabilities | ||
Short-Term Debt | 0 | 81,422 |
Accounts Payable | 92,170 | 94,428 |
Accrued Salaries and Wages | 21,922 | 38,134 |
Accrued Taxes | 26,486 | 26,590 |
Regulatory Liabilities | 33,513 | 25,408 |
Other Current Liabilities | 34,383 | 43,775 |
Total Current Liabilities | 208,474 | 309,757 |
Noncurrent Liabilities | ||
Pension Benefit Liability | 32,945 | 33,101 |
Other Postretirement Benefits Liability | 27,501 | 27,676 |
Regulatory Liabilities | 277,056 | 276,547 |
Deferred Income Taxes | 246,560 | 237,273 |
Deferred Tax Credits | 14,985 | 15,172 |
Other Noncurrent Liabilities | 77,511 | 75,977 |
Total Noncurrent Liabilities | 676,558 | 665,746 |
Commitments and Contingencies (Note 9) | ||
Capitalization | ||
Long-Term Debt | 943,536 | 824,059 |
Shareholders' Equity | ||
Common Shares: 50,000,000 shares authorized, $5 par value; 41,783,750 and 41,710,521 outstanding at March 31, 2024 and December 31, 2023 | 208,918 | 208,553 |
Additional Paid-In Capital | 426,358 | 426,963 |
Retained Earnings | 861,127 | 806,342 |
Accumulated Other Comprehensive Income | 1,061 | 1,148 |
Total Shareholders' Equity | 1,497,464 | 1,443,006 |
Total Capitalization | 2,441,000 | 2,267,065 |
Total Liabilities and Shareholders' Equity | $ 3,326,032 | $ 3,242,568 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (unaudited) (Parentheticals) - $ / shares | Mar. 31, 2024 | Dec. 31, 2023 |
Shareholders' Equity | ||
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, par value (in dollars per share) | $ 5 | $ 5 |
Common stock, shares outstanding (in shares) | 41,783,750 | 41,710,521 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating Revenues | ||
Total Operating Revenues | $ 347,068 | $ 339,081 |
Operating Expenses | ||
Electric Production Fuel | 17,694 | 11,492 |
Electric Purchased Power | 22,521 | 41,825 |
Electric Operating and Maintenance Expenses | 47,977 | 45,549 |
Cost of Products Sold (excluding depreciation) | 114,723 | 112,369 |
Nonelectric Selling, General, and Administrative Expenses | 18,914 | 18,699 |
Depreciation and Amortization | 25,897 | 23,856 |
Electric Property Taxes | 4,367 | 4,621 |
Total Operating Expenses | 252,093 | 258,411 |
Operating Income | 94,975 | 80,670 |
Other Income and (Expense) | ||
Interest Expense | (9,850) | (9,415) |
Nonservice Components of Postretirement Benefits | 2,442 | 2,412 |
Other Income (Expense), net | 4,579 | 2,118 |
Income Before Income Taxes | 92,146 | 75,785 |
Income Tax Expense | 17,808 | 13,304 |
Net Income | $ 74,338 | $ 62,481 |
Weighted-Average Common Shares Outstanding: | ||
Basic (in shares) | 41,724 | 41,632 |
Diluted (in shares) | 42,033 | 41,977 |
Earnings Per Share: | ||
Basic (in dollars per share) | $ 1.78 | $ 1.50 |
Diluted (in dollars per share) | $ 1.77 | $ 1.49 |
Electric | ||
Operating Revenues | ||
Total Operating Revenues | $ 141,488 | $ 151,909 |
Product Sales | ||
Operating Revenues | ||
Total Operating Revenues | $ 205,580 | $ 187,172 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net Income | $ 74,338 | $ 62,481 |
Other Comprehensive Income (Loss): | ||
Unrealized Gain (Loss) on Available-for-Sale Securities, net of tax benefit (expense) of $3, and $(21) | (13) | 80 |
Pension and Other Postretirement Benefits, net of tax benefit of $26, and $9 | (74) | (26) |
Total Other Comprehensive Income (Loss) | (87) | 54 |
Total Comprehensive Income | $ 74,251 | $ 62,535 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized Gain (Loss) on Available-for-Sale Securities, tax benefit (expense) | $ 3 | $ (21) |
Pension and Other Postretirement Benefits, net of tax benefit | $ 26 | $ 9 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (unaudited) - USD ($) $ in Thousands | Total | Common Shares | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance (in shares) at Dec. 31, 2022 | 41,631,113 | ||||
Beginning balance at Dec. 31, 2022 | $ 1,217,317 | $ 208,156 | $ 423,034 | $ 585,212 | $ 915 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock Issued Under Share-Based Compensation Plans, net of shares withheld for employee taxes (in shares) | 53,413 | ||||
Stock Issued Under Share-Based Compensation Plans, net of shares withheld for employee taxes | (3,088) | $ 267 | (3,355) | ||
Net Income | 62,481 | 62,481 | |||
Other Comprehensive (Loss) Income | 54 | 54 | |||
Stock Compensation Expense | 5,269 | 5,269 | |||
Common Dividends | (18,256) | (18,256) | |||
Ending balance (in shares) at Mar. 31, 2023 | 41,684,526 | ||||
Ending balance at Mar. 31, 2023 | $ 1,263,777 | $ 208,423 | 424,948 | 629,437 | 969 |
Beginning balance (in shares) at Dec. 31, 2023 | 41,710,521 | 41,710,521 | |||
Beginning balance at Dec. 31, 2023 | $ 1,443,006 | $ 208,553 | 426,963 | 806,342 | 1,148 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock Issued Under Share-Based Compensation Plans, net of shares withheld for employee taxes (in shares) | 73,229 | ||||
Stock Issued Under Share-Based Compensation Plans, net of shares withheld for employee taxes | (5,754) | $ 365 | (6,119) | ||
Net Income | 74,338 | 74,338 | |||
Other Comprehensive (Loss) Income | (87) | (87) | |||
Stock Compensation Expense | 5,514 | 5,514 | |||
Common Dividends | $ (19,553) | (19,553) | |||
Ending balance (in shares) at Mar. 31, 2024 | 41,783,750 | 41,783,750 | |||
Ending balance at Mar. 31, 2024 | $ 1,497,464 | $ 208,918 | $ 426,358 | $ 861,127 | $ 1,061 |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||
Common Dividends (in dollars per share) | $ 0.4675 | $ 0.4375 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating Activities | ||
Net Income | $ 74,338 | $ 62,481 |
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: | ||
Depreciation and Amortization | 25,897 | 23,856 |
Deferred Tax Credits | (187) | (186) |
Deferred Income Taxes | 7,859 | 8,028 |
Investment Gains | (2,385) | (1,829) |
Stock Compensation Expense | 5,514 | 5,269 |
Other, Net | (874) | 93 |
Changes in Operating Assets and Liabilities: | ||
Receivables | (38,531) | (31,049) |
Inventories | 1,920 | 1,460 |
Regulatory Assets | 7,338 | 7,147 |
Other Assets | 537 | 5,278 |
Accounts Payable | 8,195 | (7,387) |
Accrued and Other Liabilities | (24,372) | (19,617) |
Regulatory Liabilities | 9,365 | 4,420 |
Pension and Other Postretirement Benefits | (2,701) | (2,411) |
Net Cash Provided by Operating Activities | 71,913 | 55,553 |
Investing Activities | ||
Capital Expenditures | (74,044) | (98,101) |
Proceeds from Disposal of Noncurrent Assets | 2,499 | 1,030 |
Cash Used for Investments and Other Assets | (4,331) | (3,308) |
Net Cash Used in Investing Activities | (75,876) | (100,379) |
Financing Activities | ||
Net Borrowings (Repayments) of Short-Term Debt | (81,422) | 52,650 |
Proceeds from Issuance of Long-Term Debt | 120,000 | 0 |
Dividends Paid | (19,553) | (18,256) |
Payments for Shares Withheld for Employee Tax Obligations | (5,754) | (3,088) |
Other, net | (1,523) | (1,396) |
Net Cash Provided by Financing Activities | 11,748 | 29,910 |
Net Change in Cash and Cash Equivalents | 7,785 | (14,916) |
Cash and Cash Equivalents at Beginning of Period | 230,373 | 118,996 |
Cash and Cash Equivalents at End of Period | 238,158 | 104,080 |
Supplemental Disclosure of Noncash Investing Activities | ||
Accrued Property, Plant and Equipment Additions | $ 7,667 | $ 10,346 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Overview Otter Tail Corporation (OTC) and its subsidiaries (collectively, the "Company", "us", "our" or "we") form a diverse, multi-platform business consisting of a vertically integrated, regulated utility with generation, transmission and distribution facilities complemented by manufacturing businesses providing metal fabrication for custom machine parts and metal components, manufacturing of extruded and thermoformed plastic products, and manufacturing of polyvinyl chloride (PVC) pipe products. We classify our business into three segments: Electric, Manufacturing and Plastics. Basis of Presentation The unaudited consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the SEC for interim reporting. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles. In the opinion of management, we have included all adjustments, including normal recurring accruals, necessary for a fair presentation of the consolidated financial statements for the periods presented. The consolidated financial statements and condensed notes thereto should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Because of the seasonality of our businesses and other factors, the earnings for the three months ended March 31, 2024 should not be taken as an indication of earnings for all or any part of the balance of the current year or as an indication of earnings for future years. Use of Estimates We use estimates based on the best information available in recording transactions and balances resulting from business operations. As better information becomes available or actual amounts are known, the recorded estimates are revised. Consequently, operating results can be affected by revisions to prior accounting estimates. Reclassifications Certain reclassifications of amounts previously reported have been made to the accompanying consolidated statements of cash flows to maintain consistency and comparability between periods presented. Other, net operating cash flows previously reported for the three months ended March 31, 2023, included $1.8 million of investment gains, which are presented separately in the current period, and excluded $0.2 million of allowance for equity funds used during construction, which were previously presented separately. The reclassifications had no impact on previously reported net cash provided by operating activities, net cash used in investing activities, net cash used in financing activities, or cash and cash equivalents. Recent Accounting Pronouncements Segment Reporting. In November 2023, the Financial Accounting Standards Board (FASB) issued amended authoritative guidance codified in Accounting Standards Codification (ASC) 280, Segment Reporting. The amended guidance expands annual and interim disclosure requirements for reportable segments, primarily through expanded disclosures about significant segment expenses. The updated standard is effective for our annual periods beginning in 2024 and interim periods beginning in the first quarter of fiscal 2025. Adoption of the amended guidance must be applied retrospectively to all prior periods presented in the financial statements. We are currently evaluating the impact that the updated standard will have on our financial statement disclosures. Income Taxes. In December 2023, the FASB issued amended authoritative guidance codified in ASC 740, Income Taxes. The amended guidance requires additional disaggregated information in effective tax rate reconciliation disclosures and additional disaggregated information about income taxes paid. The updated standard is effective for our annual periods beginning in 2025. The amended guidance is to be applied on a prospective basis with the option to apply the standard retrospectively. We are currently evaluating the impact that the updated standard will have on our financial statement disclosures. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The classification of our business into three segments, Electric, Manufacturing and Plastics, is consistent with our business strategy, organizational structure and our internal reporting and review processes used by our chief operating decision maker to make decisions regarding allocation of resources, to assess operating performance and to make strategic decisions. Certain assets and costs are not allocated to our operating segments. Corporate operating costs include items such as corporate staff and overhead costs, the results of our captive insurance company and other items excluded from the measurement of operating segment performance. Corporate assets consist primarily of cash and cash equivalents, prepaid expenses, investments and fixed assets. Corporate is not an operating segment, rather it is added to operating segment totals to reconcile to consolidated amounts. Information for each segment and our unallocated corporate costs for the three months ended March 31, 2024 and 2023 are as follows: Three Months Ended March 31, (in thousands) 2024 2023 Operating Revenue Electric $ 141,488 $ 151,909 Manufacturing 99,380 106,782 Plastics 106,200 80,390 Total $ 347,068 $ 339,081 Net Income (Loss) Electric $ 22,470 $ 23,221 Manufacturing 5,261 6,862 Plastics 46,740 33,686 Corporate (133) (1,288) Total $ 74,338 $ 62,481 The following provides the identifiable assets by segment and corporate assets as of March 31, 2024 and December 31, 2023: (in thousands) March 31, December 31, Identifiable Assets Electric $ 2,586,318 $ 2,533,831 Manufacturing 263,408 251,343 Plastics 190,218 164,179 Corporate 286,088 293,215 Total $ 3,326,032 $ 3,242,568 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Presented below are our operating revenues from external customers, in total and by amounts arising from contracts with customers and alternative revenue program (ARP) arrangements, disaggregated by revenue source and segment for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Operating Revenues Electric Segment Retail: Residential $ 39,457 $ 43,972 Retail: Commercial and Industrial 83,028 90,489 Retail: Other 2,004 1,992 Total Retail 124,489 136,453 Transmission 12,214 12,107 Wholesale 3,465 1,838 Other 1,320 1,511 Total Electric Segment 141,488 151,909 Manufacturing Segment Metal Parts and Tooling 87,915 90,068 Plastic Products and Tooling 8,986 14,142 Scrap Metal 2,479 2,572 Total Manufacturing Segment 99,380 106,782 Plastics Segment PVC Pipe 106,200 80,390 Total Operating Revenue 347,068 339,081 Less: Non-contract Revenues Included Above Electric Segment - ARP Revenues (173) (1,210) Total Operating Revenues from Contracts with Customers $ 347,241 $ 340,291 |
Select Balance Sheet Informatio
Select Balance Sheet Information | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Select Balance Sheet Information | Select Balance Sheet Information Receivables and Allowance for Credit Losses Receivables as of March 31, 2024 and December 31, 2023 are as follows: (in thousands) March 31, December 31, Receivables Trade $ 165,717 $ 129,257 Other 8,909 9,084 Unbilled Receivables 23,066 21,324 Total Receivables 197,692 159,665 Less: Allowance for Credit Losses 2,018 2,522 Receivables, net of allowance for credit losses $ 195,674 $ 157,143 The following is a summary of activity in the allowance for credit losses for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Beginning Balance, January 1 $ 2,522 $ 1,648 Additions Charged to Expense 272 737 Reductions for Amounts Written Off, Net of Recoveries (776) (194) Ending Balance, March 31 $ 2,018 $ 2,191 Inventories Inventories consist of the following as of March 31, 2024 and December 31, 2023: (in thousands) March 31, December 31, Raw Material, Fuel and Supplies $ 75,058 $ 75,733 Work in Process 28,621 26,354 Finished Goods 44,515 47,614 Total Inventories $ 148,194 $ 149,701 Investments The following is a summary of our investments as of March 31, 2024 and December 31, 2023: (in thousands) March 31, December 31, Short-term Investments Corporate and Government Debt Securities $ 467 $ — Long-term Investments Corporate-Owned Life Insurance Policies 43,980 42,287 Corporate and Government Debt Securities 9,035 9,303 Money Market Funds 3,337 3,125 Mutual Funds 9,728 7,771 Other Investments 30 30 Total Long-term Investments 66,110 62,516 Total Investments $ 66,577 $ 62,516 The amount of unrealized gains and losses on debt securities as of March 31, 2024 and December 31, 2023 was not material and no unrealized losses were deemed to be other-than-temporary. In addition, the amount of unrealized gains and losses on marketable equity securities still held as of March 31, 2024 and December 31, 2023 was not material. Property, Plant and Equipment Major classes of property, plant and equipment as of March 31, 2024 and December 31, 2023 include: (in thousands) March 31, December 31, Electric Plant Electric Plant in Service $ 3,030,848 $ 2,989,881 Construction Work in Progress 143,505 137,212 Total Gross Electric Plant 3,174,353 3,127,093 Less Accumulated Depreciation and Amortization 864,826 851,148 Net Electric Plant 2,309,527 2,275,945 Nonelectric Property, Plant and Equipment Nonelectric Property, Plant and Equipment in Service 322,912 311,924 Construction Work in Progress 38,237 38,062 Total Gross Nonelectric Property, Plant and Equipment 361,149 349,986 Less Accumulated Depreciation and Amortization 211,487 207,556 Net Nonelectric Property, Plant and Equipment 149,662 142,430 Net Property, Plant and Equipment $ 2,459,189 $ 2,418,375 |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2024 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Regulatory Matters | Regulatory Matters Regulatory Assets and Liabilities The following presents our current and long-term regulatory assets and liabilities as of March 31, 2024 and December 31, 2023 and the period we expect to recover or refund such amounts: Period of March 31, 2024 December 31, 2023 (in thousands) Recovery/Refund Current Long-Term Current Long-Term Regulatory Assets Pension and Other Postretirement Benefit Plans 1 Various $ 154 $ 87,630 $ 154 $ 86,134 Alternative Revenue Program Riders 2 Up to 2 years 3,501 203 3,719 158 Asset Retirement Obligations 1 Asset lives — 107 — 87 Deferred Income Taxes Asset lives — 7,154 — 6,940 Fuel Clause Adjustments 1 Up to 1 year 4,075 — 7,294 — Derivative Instruments 1 Up to 1 year 248 — 4,210 — Other 1 Various 1,197 1,588 750 2,396 Total Regulatory Assets $ 9,175 $ 96,682 $ 16,127 $ 95,715 Regulatory Liabilities Deferred Income Taxes Asset lives $ — $ 134,779 $ — $ 136,022 Plant Removal Obligations Asset lives — 117,220 — 117,030 Fuel Clause Adjustments Up to 1 year 16,011 — 11,350 — Alternative Revenue Program Riders Up to 1 year 10,291 — 6,885 — North Dakota PTC Refunds Asset lives — 13,175 — 12,011 Pension and Other Postretirement Benefit Plans Various 6,138 11,608 6,138 11,307 Other Various 1,073 274 1,035 177 Total Regulatory Liabilities $ 33,513 $ 277,056 $ 25,408 $ 276,547 1 Costs subject to recovery without a rate of return. 2 Amounts eligible for recovery includes an incentive or rate of return. |
Short-Term and Long-Term Borrow
Short-Term and Long-Term Borrowings | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Short-Term and Long-Term Borrowings | Short-Term and Long-Term Borrowings The following is a summary of our outstanding short- and long-term borrowings by borrower, OTC or OTP, as of March 31, 2024 and December 31, 2023: Short-Term Debt The following is a summary of our lines of credit as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, (in thousands) Borrowing Limit Amount Outstanding Letters Amount Available Amount Available OTC Credit Agreement $ 170,000 $ — $ — $ 170,000 $ 170,000 OTP Credit Agreement 170,000 — 9,132 160,868 79,446 Total $ 340,000 $ — $ 9,132 $ 330,868 $ 249,446 Long-Term Debt The following is a summary of outstanding long-term debt by borrower as of March 31, 2024 and December 31, 2023: (in thousands) Borrower Debt Instrument Rate Maturity March 31, December 31, OTC Guaranteed Senior Notes 3.55 % 12/15/26 $ 80,000 $ 80,000 OTP Series 2007C Senior Unsecured Notes 6.37 % 08/02/27 42,000 42,000 OTP Series 2013A Senior Unsecured Notes 4.68 % 02/27/29 60,000 60,000 OTP Series 2019A Senior Unsecured Notes 3.07 % 10/10/29 10,000 10,000 OTP Series 2020A Senior Unsecured Notes 3.22 % 02/25/30 10,000 10,000 OTP Series 2020B Senior Unsecured Notes 3.22 % 08/20/30 40,000 40,000 OTP Series 2021A Senior Unsecured Notes 2.74 % 11/29/31 40,000 40,000 OTP Series 2024A Senior Unsecured Notes 5.48 % 04/01/34 60,000 — OTP Series 2007D Senior Unsecured Notes 6.47 % 08/20/37 50,000 50,000 OTP Series 2019B Senior Unsecured Notes 3.52 % 10/10/39 26,000 26,000 OTP Series 2020C Senior Unsecured Notes 3.62 % 02/25/40 10,000 10,000 OTP Series 2013B Senior Unsecured Notes 5.47 % 02/27/44 90,000 90,000 OTP Series 2018A Senior Unsecured Notes 4.07 % 02/07/48 100,000 100,000 OTP Series 2019C Senior Unsecured Notes 3.82 % 10/10/49 64,000 64,000 OTP Series 2020D Senior Unsecured Notes 3.92 % 02/25/50 15,000 15,000 OTP Series 2021B Senior Unsecured Notes 3.69 % 11/29/51 100,000 100,000 OTP Series 2022A Senior Unsecured Notes 3.77 % 05/20/52 90,000 90,000 OTP Series 2024B Senior Unsecured Notes 5.77 % 04/01/54 60,000 — Total $ 947,000 $ 827,000 Less: Unamortized Long-Term Debt Issuance Costs 3,464 2,941 Total Long-Term Debt, Net of Unamortized Debt Issuance Costs $ 943,536 $ 824,059 On March 28, 2024, OTP entered into a Note Purchase Agreement pursuant to which OTP issued, in a private placement transaction, $120.0 million of senior unsecured notes consisting of (a) $60.0 million of 5.48% Series 2024A Senior Unsecured Notes due April 1, 2034, and (b) $60.0 million of 5.77% Series 2024B Senior Unsecured Notes due April 1, 2054. Per the terms of the agreement, OTP may prepay all or any part of the notes (in an amount not less than 10% of the aggregate principal amount of the notes then outstanding in the case of a partial prepayment) at 100% of the principal amount so prepaid, together with unpaid accrued interest and a make-whole amount, as defined in the agreement; provided that no default or event of default exists under the agreement. Any prepayment made by the Company of all of the Series 2024A Notes then outstanding on or after January 1, 2034, or the Series 2024B Notes then outstanding on or after October 1, 2053, will be made without any make-whole amount. Consistent with other borrowings, the agreement contains a number of restrictions on the business of OTP, including restrictions on OTP’s ability to merge, sell substantially all assets, create or incur liens on assets, guarantee the obligations of any other party, and engage in certain transactions with affiliates. Financial Covenants Certain of OTC's and OTP's short- and long-term debt agreements require the borrower, whether OTC or OTP, to maintain certain financial covenants, including a maximum debt to total capitalization ratio of 0.60 to 1.00, a minimum interest and dividend coverage ratio of 1.50 to 1.00, and a maximum level of priority indebtedness. As of March 31, 2024, OTC and OTP were in compliance with these financial covenants. |
Employee Postretirement Benefit
Employee Postretirement Benefits | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Employee Postretirement Benefits | Employee Postretirement Benefits Pension Plan and Other Postretirement Benefits The Company sponsors a noncontributory funded pension plan (the "Pension Plan"), an unfunded, nonqualified Executive Survivor and Supplemental Retirement Plan (the "ESSRP"), both accounted for as defined benefit pension plans, and a postretirement healthcare plan accounted for as an other postretirement benefit plan. The following table includes the components of net periodic benefit cost (income) related to our defined benefit pension plans and other postretirement benefits for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, Pension Benefits (Pension Plan) Pension Benefits (ESSRP) Postretirement Benefits (in thousands) 2024 2023 2024 2023 2024 2023 Service Cost $ 972 $ 925 $ — $ 18 $ 123 $ 153 Interest Cost 4,297 4,109 474 314 400 669 Expected Return on Assets (6,380) (6,479) — — — — Amortization of Prior Service Cost — — — — (1,576) (1,433) Amortization of Net Actuarial Loss 40 — — — — — Net Periodic Benefit Cost (Income) $ (1,071) $ (1,445) $ 474 $ 332 $ (1,053) $ (611) The following table includes the impact of regulation on the recognition of periodic benefit cost (income) arising from pension and other postretirement benefits for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Net Periodic Benefit Cost (Income) $ (1,650) $ (1,724) Net Amount Amortized Due to the Effect of Regulation 303 408 Net Periodic Benefit Cost (Income) Recognized $ (1,347) $ (1,316) We had no minimum funding requirements for our Pension Plan or any other postretirement benefit plans as of December 31, 2023. We did not make any contributions to our Pension Plan during the three months ended March 31, 2024 and 2023. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's effective tax rate was 19.3% and 17.6% for each of the three months ended March 31, 2024 and 2023. These rates differed from the federal statutory rate of 21% primarily due to the impact of production tax credits associated with the energy generation of our wind and solar assets, partially offset by state taxes. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contingencies FERC Return on Equity (ROE). In November 2013 and February 2015, customers filed complaints with the Federal Energy Regulatory Commission (FERC) seeking to reduce the ROE component of the transmission rates that MISO transmission owners, including OTP, may collect under the MISO tariff rate. FERC's most recent order, issued on November 19, 2020, adopted a revised ROE methodology and set the base ROE at 10.02% (10.52% with an adder) effective for the fifteen-month period from November 2013 to February 2015 and on a prospective basis beginning in September 2016. The order also dismissed any complaints covering the period from February 2015 to May 2016. On August 9, 2022, the U.S. Court of Appeals for the District of Columbia Circuit vacated the FERC order citing a lack of reasoned explanation by FERC in its adoption of its revised ROE methodology as outlined in its November 2020 order. The U.S. Court of Appeals remanded the matter to FERC to reopen the proceedings. Significant uncertainty exists as to how FERC will proceed upon remand and there is no prescribed timeline under which FERC must act. As a result, we have deferred recognition of certain revenues and had a refund liability of $2.8 million as of March 31, 2024, which is included in other current liabilities on the consolidated balance sheet. This refund liability reflects our best estimate of amounts previously collected from customers under the MISO tariff rate that may be required to be refunded to customers once all regulatory and judicial proceedings are complete and a final ROE is established for the periods outlined above. Regional Haze Rule (RHR). The RHR was adopted in an effort to improve visibility in national parks and wilderness areas. The RHR requires states, in coordination with the Environmental Protection Agency (EPA) and other governmental agencies, to develop and implement plans to achieve natural visibility conditions. The second RHR implementation period covers the years 2018-2028. States are required to submit a state implementation plan to assess reasonable progress with the RHR and determine what additional emission reductions are appropriate, if any. Coyote Station, OTP's jointly owned coal-fired power plant in North Dakota, is subject to assessment in the second implementation period under the North Dakota state implementation plan. The North Dakota Department of Environmental Quality (NDDEQ) submitted its state implementation plan to the EPA for approval in August, 2022. In its plan, the NDDEQ concluded it is not reasonable to require additional emission controls during this planning period. The EPA has previously expressed disagreement with the NDDEQ's recommendation to forgo additional emission controls and has indicated that such a plan is not likely to be accepted. In June 2023, a coalition of environmental organizations filed a lawsuit against the EPA for failing to enforce the RHR. In response, the EPA proposed, through a consent decree filed in the U.S. District Court for the District of Columbia in March 2024, a timeline for it to act on 34 outstanding state implementation plans. Under the proposed consent decree the EPA would approve, deny, partially approve or issue a federal implementation plan at assigned dates between 2024 and 2026, including a final decision on the North Dakota state implementation plan by November 2024. We cannot predict with certainty the impact the state implementation plan may have on our business until the plan has been approved or otherwise acted on by the EPA. However, significant emission control investments could be required and the recovery of such costs from customers would require regulatory approval. Alternatively, investments in emission control equipment may prove to be uneconomic and result in the early retirement of or the sale of our interest in Coyote Station, subject to regulatory approval. We cannot estimate the ultimate financial effects such a retirement or sale may have on our consolidated operating results, financial position or cash flows, but such amounts could be material and the recovery of such costs in rates would be subject to regulatory approval. Self-Funding of Transmission Upgrades. The FERC has granted transmission owners within MISO the unilateral authority to determine the funding mechanism for interconnection transmission upgrades that are necessary to accommodate new generation facilities connecting to the electrical grid. Under existing FERC orders, transmission owners can unilaterally determine whether the generator pays the transmission owner in advance for the transmission upgrade or, alternatively, the transmission owner can elect to fund the upgrade and recover over time from the generator the cost of and a return on the upgrade investment (a self-funding). FERC’s orders granting transmission owners this unilateral funding authority have been judicially contested on the basis that transmission owners may be motivated to discriminate among generators in making funding determinations. In the most recent judicial proceedings, the petitioners argued to the U.S. Court of Appeals for the District of Columbia that FERC did not comply with a previous judicial order to fully develop a record regarding the risk of discrimination and the financial risk absorbed by transmission owners for generator-funded upgrades. On December 2, 2022, the Court of Appeals ruled in favor of the petitioners remanding the matter to FERC, instructing the agency to adequately explain the basis of its orders. The Court of Appeals decision did not vacate transmission owners’ unilateral funding authority. OTP, as a transmission owner in MISO, has exercised its authority and elected to self-fund previous transmission upgrades necessary to accommodate new system generation. Under such an election, OTP is recovering the cost of the transmission upgrade and a return on that investment from the generator over a contractual period of time. Should FERC, on remand from the Court of Appeals, eliminate transmission owners’ unilateral funding authority on either a prospective or retrospective basis, our financial results would be impacted. We cannot at this time reasonably predict the outcome of this matter given the uncertainty as to how and when FERC may respond to the judicial remand. Other Contingencies. We are party to litigation and regulatory matters arising in the normal course of business. We regularly analyze relevant information and, as necessary, estimate and record accrued liabilities for legal, regulatory enforcement and other matters in which a loss is probable of occurring and can be reasonably estimated. We believe the effect on our consolidated operating results, financial position and cash flows, if any, for the disposition of all matters pending as of March 31, 2024, other than those discussed above, will not be material. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Registration Statements On May 3, 2024, we filed a shelf registration statement with the SEC under which we may offer for sale, from time to time, either separately or together in any combination, equity, debt or other securities described in the shelf registration statement. No new debt or equity has been issued pursuant to the registration statement. The registration statement expires in May 2027. On May 3, 2024, we filed a second registration statement with the SEC for the issuance of up to 1,500,000 common shares under an Automatic Dividend Reinvestment and Share Purchase Plan, which provides shareholders, retail customers of OTP and other interested investors methods of purchasing our common shares by reinvesting their dividends or making optional cash investments. Shares purchased under the plan may be newly issued common shares or common shares purchased on the open market. The registration statement expires in May 2027. Dividend Restrictions OTC is a holding company with no significant operations of its own. The primary source of funds for payments of dividends to OTC's shareholders is from dividends paid or distributions made by OTC's subsidiaries. As a result of certain statutory limitations or regulatory or financing agreements, the amount of distributions allowed to be made by OTC's subsidiaries or the amount of dividends paid by OTC could be restricted. Both the OTC Credit Agreement and the OTP Credit Agreement contain restrictions on the payment of cash dividends upon a default or event of default, including failure to maintain certain financial covenants. As of March 31, 2024, we were in compliance with these financial covenants. Under the Federal Power Act, a public utility may not pay dividends from any funds properly included in a capital account. What constitutes “funds properly included in a capital account” is undefined in the Federal Power Act or the related regulations; however, the FERC has consistently interpreted the provision to allow dividends to be paid as long as i) the source of the dividends is clearly disclosed, ii) the dividend is not excessive and iii) there is no self-dealing on the part of corporate officials. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The following presents the changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 (in thousands) Pension and Other Postretirement Benefits Net Unrealized Gains (Losses) on Available-for-Sale Securities Total Pension and Other Postretirement Benefits Net Unrealized Gains (Losses) on Available-for-Sale Securities Total Balance, Beginning of Period $ 1,375 $ (227) $ 1,148 $ 1,334 $ (419) $ 915 Other Comprehensive (Loss) Income Before Reclassifications, net of tax — (24) (24) — 80 80 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (74) (1) 11 (2) (63) (26) (1) — (26) Total Other Comprehensive Income (Loss) (74) (13) (87) (26) 80 54 Balance, End of Period $ 1,301 $ (240) $ 1,061 $ 1,308 $ (339) $ 969 (1) Included in the computation of net periodic pension and other postretirement benefit costs. See Note 7. (2) Included in other income (expense), net on the accompanying consolidated statements of income. |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Payments | Share-Based Payments Stock Compensation Expense Stock-based compensation expense arising from our employee stock purchase plan and share-based compensation plans recognized within operating expenses in the consolidated statements of income amounted to $5.5 million and $5.3 million for the three months ended March 31, 2024 and 2023. Restricted Stock Awards. Restricted stock awards are granted to executive officers and other key employees and members of the Company's Board of Directors. The awards vest, depending on award recipient, either ratably over a period of three The following is a summary of stock award activity for the three months ended March 31, 2024: Shares Weighted-Average Nonvested, January 1, 2024 148,913 $ 56.48 Granted 18,175 90.67 Vested (16,283) 55.02 Forfeited — — Nonvested, March 31, 2024 150,805 $ 60.76 The fair value of vested awards was $1.5 million and $1.2 million during the three months ended March 31, 2024 and 2023. Stock Performance Awards. Stock performance awards are granted to executive officers and certain other key employees. The awards vest at the end of a three-year performance period. The number of common shares awarded, if any, at the end of the performance period ranges from zero to 150% of the target amount based on two performance measures: i) total shareholder return relative to a peer group and ii) ROE. Vesting of the awards is accelerated in certain circumstances, including on retirement. The number of common shares awarded on an accelerated vesting is based on actual performance at the end of the performance period. The grant date fair value of stock performance awards granted during the three months ended March 31, 2024 and 2023 was determined using a Monte Carlo fair value simulation model incorporating the following assumptions: 2024 2023 Risk-free interest rate 4.16 % 4.15 % Expected term (in years) 3 3 Expected volatility 35.10 % 34.00 % Dividend yield 2.40 % 2.50 % The risk-free interest rate was derived from yields on U.S. government bonds of a similar term. The expected term of the award is equal to the three-year performance period. Expected volatility was estimated based on actual historical volatility of our common stock. Dividend yield was estimated based on historical and future yield estimates. The following is a summary of stock performance award activity for the three months ended March 31, 2024 (share amounts reflect awards at target): Shares Weighted-Average Nonvested, January 1, 2024 194,200 $ 50.33 Granted 43,400 94.45 Vested (79,000) 38.34 Forfeited — — Nonvested, March 31, 2024 158,600 $ 68.37 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The numerator used in the calculation of both basic and diluted earnings per share is net income. The denominator used in the calculation of basic earnings per share is the weighted-average number of shares outstanding during the period. The denominator used in the calculation of diluted earnings per share is derived by adjusting basic shares outstanding for the dilutive effect of potential shares outstanding, which consist of time- and performance-based stock awards and employee stock purchase plan shares. The following includes the computation of the denominator for basic and diluted weighted-average shares outstanding for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Weighted-Average Common Shares Outstanding – Basic 41,724 41,632 Effect of Dilutive Securities: Stock Performance Awards 196 241 Restricted Stock Awards 111 102 Employee Stock Purchase Plan 2 2 Dilutive Effect of Potential Common Shares 309 345 Weighted-Average Common Shares Outstanding – Diluted 42,033 41,977 |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments OTP enters into derivative instruments to manage its exposure to future market energy price variability and reduce volatility in prices for our retail customers. These derivative instruments are not designated as qualifying hedging transactions but provide for an economic hedge against future market energy price variability. The instruments are recorded at fair value on the consolidated balance sheets. In accordance with rate-making and cost recovery processes, we recognize a regulatory asset or liability to defer losses or gains from derivative activity until settlement of the associated derivative instrument. As of March 31, 2024, OTP had multiple outstanding pay-fixed, receive-variable swap agreements with an aggregate notional amount of 54,000 megawatt-hours of electricity, with settlement dates extending to December 31, 2024. As of March 31, 2024, the fair value of these derivative instruments was $0.2 million, which is included in other current liabilities on the consolidated balance sheets. As of December 31, 2023, the fair value of these derivative instruments was $4.2 million, which is included in other current liabilities. During the three months ended March 31, 2024 and 2023, contracts matured and were settled in an aggregate amount of a $2.7 million loss and a $16.0 million loss, respectively. Gains and losses recognized on the settlement of derivative instruments are returned to, or recovered from, our electric customers through fuel recovery mechanisms in each state. When recognized in the consolidated statements of income, these gains or losses are included in electric purchased power. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following tables present our assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 classified by the input method used to measure fair value: (in thousands) Level 1 Level 2 Level 3 March 31, 2024 Assets: Investments: Money Market Funds $ 3,337 $ — $ — Mutual Funds 9,728 — — Corporate Debt Securities — 1,580 — Government-Backed and Government-Sponsored Enterprises’ Debt Securities — 7,922 — Total Assets $ 13,065 $ 9,502 $ — Liabilities: Derivative Instruments $ — $ 248 $ — Total Liabilities $ — $ 248 $ — December 31, 2023 Assets: Investments: Money Market Funds $ 3,125 $ — $ — Mutual Funds 7,771 — — Corporate Debt Securities — 1,579 — Government-Backed and Government-Sponsored Enterprises’ Debt Securities — 7,724 — Total Assets $ 10,896 $ 9,303 $ — Liabilities: Derivative Instruments — 4,210 — Total Liabilities $ — $ 4,210 $ — Level 1 fair value measurements are based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. The level 2 fair value measurements for government-backed and government-sponsored enterprises and corporate debt securities are determined based on valuations provided by a third-party pricing service which utilizes industry accepted valuation models and observable market inputs to determine valuation. Some valuations or model inputs used by the pricing service may be based on broker quotes. The level 2 fair value measurements for derivative instruments are determined by using inputs such as forward electric commodity prices, adjusted for location differences. These inputs are observable in the marketplace throughout the full term of the instrument, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace. In addition to assets recorded at fair value on a recurring basis, we also hold financial instruments that are not recorded at fair value in the consolidated balance sheets but for which disclosure of the fair value of these financial instruments is provided. The following reflects the carrying value and estimated fair value of these assets and liabilities as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 (in thousands) Carrying Fair Value Carrying Fair Value Assets: Cash and Cash Equivalents $ 238,158 $ 238,158 $ 230,373 $ 230,373 Total 238,158 238,158 230,373 230,373 Liabilities: Short-Term Debt — — 81,422 81,422 Long-Term Debt 943,536 820,840 824,059 710,839 Total $ 943,536 $ 820,840 $ 905,481 $ 792,261 The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash Equivalents: The carrying amount approximates fair value because of the short-term maturity of those instruments. Short-Term Debt: The carrying amount approximates fair value because the debt obligations are short-term and the balances outstanding are subject to variable rates of interest which reset frequently, a Level 2 fair value input. Long-Term Debt: The fair value of long-term debt is estimated based on current market indications for borrowings of similar maturities with similar terms, a Level 2 fair value input. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income | $ 74,338 | $ 62,481 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Paul Knutson [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On February 22, 2024, Paul Knutson, the Company’s Vice President, Human Resources, entered into a written plan in accordance with Rule 10b5-1 under the Exchange Act, for the sale of shares of the Company’s common stock. The plan was entered into during an open trading window in accordance with the Company’s policies regarding transactions in the Company’s securities and is intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act. The plan provides for the potential sale of up to 4,000 shares of the Company’s common stock between May 24, 2024 and December 31, 2024. |
Name | Paul Knutson |
Title | Vice President, Human Resources |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | February 22, 2024 |
Arrangement Duration | 221 days |
Aggregate Available | 4,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the SEC for interim reporting. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles. In the opinion of management, we have included all adjustments, including normal recurring accruals, necessary for a fair presentation of the consolidated financial statements for the periods presented. The consolidated financial statements and condensed notes thereto should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. Because of the seasonality of our businesses and other factors, the earnings for the three months ended March 31, 2024 should not be taken as an indication of earnings for all or any part of the balance of the current year or as an indication of earnings for future years. |
Use of Estimates | Use of Estimates We use estimates based on the best information available in recording transactions and balances resulting from business operations. As better information becomes available or actual amounts are known, the recorded estimates are revised. Consequently, operating results can be affected by revisions to prior accounting estimates. |
Reclassifications | Reclassifications Certain reclassifications of amounts previously reported have been made to the accompanying consolidated statements of cash flows to maintain consistency and comparability between periods presented. Other, net operating cash flows previously reported for the three months ended March 31, 2023, included $1.8 million of investment gains, which are presented separately in the current period, and excluded $0.2 million of allowance for equity funds used during construction, which were previously presented separately. The reclassifications had no impact on previously reported net cash provided by operating activities, net cash used in investing activities, net cash used in financing activities, or cash and cash equivalents. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Segment Reporting. In November 2023, the Financial Accounting Standards Board (FASB) issued amended authoritative guidance codified in Accounting Standards Codification (ASC) 280, Segment Reporting. The amended guidance expands annual and interim disclosure requirements for reportable segments, primarily through expanded disclosures about significant segment expenses. The updated standard is effective for our annual periods beginning in 2024 and interim periods beginning in the first quarter of fiscal 2025. Adoption of the amended guidance must be applied retrospectively to all prior periods presented in the financial statements. We are currently evaluating the impact that the updated standard will have on our financial statement disclosures. Income Taxes. In December 2023, the FASB issued amended authoritative guidance codified in ASC 740, Income Taxes. The amended guidance requires additional disaggregated information in effective tax rate reconciliation disclosures and additional disaggregated information about income taxes paid. The updated standard is effective for our annual periods beginning in 2025. The amended guidance is to be applied on a prospective basis with the option to apply the standard retrospectively. We are currently evaluating the impact that the updated standard will have on our financial statement disclosures. |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Information for each segment and our unallocated corporate costs for the three months ended March 31, 2024 and 2023 are as follows: Three Months Ended March 31, (in thousands) 2024 2023 Operating Revenue Electric $ 141,488 $ 151,909 Manufacturing 99,380 106,782 Plastics 106,200 80,390 Total $ 347,068 $ 339,081 Net Income (Loss) Electric $ 22,470 $ 23,221 Manufacturing 5,261 6,862 Plastics 46,740 33,686 Corporate (133) (1,288) Total $ 74,338 $ 62,481 The following provides the identifiable assets by segment and corporate assets as of March 31, 2024 and December 31, 2023: (in thousands) March 31, December 31, Identifiable Assets Electric $ 2,586,318 $ 2,533,831 Manufacturing 263,408 251,343 Plastics 190,218 164,179 Corporate 286,088 293,215 Total $ 3,326,032 $ 3,242,568 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Presented below are our operating revenues from external customers, in total and by amounts arising from contracts with customers and alternative revenue program (ARP) arrangements, disaggregated by revenue source and segment for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Operating Revenues Electric Segment Retail: Residential $ 39,457 $ 43,972 Retail: Commercial and Industrial 83,028 90,489 Retail: Other 2,004 1,992 Total Retail 124,489 136,453 Transmission 12,214 12,107 Wholesale 3,465 1,838 Other 1,320 1,511 Total Electric Segment 141,488 151,909 Manufacturing Segment Metal Parts and Tooling 87,915 90,068 Plastic Products and Tooling 8,986 14,142 Scrap Metal 2,479 2,572 Total Manufacturing Segment 99,380 106,782 Plastics Segment PVC Pipe 106,200 80,390 Total Operating Revenue 347,068 339,081 Less: Non-contract Revenues Included Above Electric Segment - ARP Revenues (173) (1,210) Total Operating Revenues from Contracts with Customers $ 347,241 $ 340,291 |
Select Balance Sheet Informat_2
Select Balance Sheet Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Receivables | Receivables as of March 31, 2024 and December 31, 2023 are as follows: (in thousands) March 31, December 31, Receivables Trade $ 165,717 $ 129,257 Other 8,909 9,084 Unbilled Receivables 23,066 21,324 Total Receivables 197,692 159,665 Less: Allowance for Credit Losses 2,018 2,522 Receivables, net of allowance for credit losses $ 195,674 $ 157,143 |
Schedule of Activity in Allowance for Credit Losses | The following is a summary of activity in the allowance for credit losses for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Beginning Balance, January 1 $ 2,522 $ 1,648 Additions Charged to Expense 272 737 Reductions for Amounts Written Off, Net of Recoveries (776) (194) Ending Balance, March 31 $ 2,018 $ 2,191 |
Schedule of Inventories | Inventories consist of the following as of March 31, 2024 and December 31, 2023: (in thousands) March 31, December 31, Raw Material, Fuel and Supplies $ 75,058 $ 75,733 Work in Process 28,621 26,354 Finished Goods 44,515 47,614 Total Inventories $ 148,194 $ 149,701 |
Schedule of Investments | The following is a summary of our investments as of March 31, 2024 and December 31, 2023: (in thousands) March 31, December 31, Short-term Investments Corporate and Government Debt Securities $ 467 $ — Long-term Investments Corporate-Owned Life Insurance Policies 43,980 42,287 Corporate and Government Debt Securities 9,035 9,303 Money Market Funds 3,337 3,125 Mutual Funds 9,728 7,771 Other Investments 30 30 Total Long-term Investments 66,110 62,516 Total Investments $ 66,577 $ 62,516 |
Schedule of Property, Plant and Equipment | Major classes of property, plant and equipment as of March 31, 2024 and December 31, 2023 include: (in thousands) March 31, December 31, Electric Plant Electric Plant in Service $ 3,030,848 $ 2,989,881 Construction Work in Progress 143,505 137,212 Total Gross Electric Plant 3,174,353 3,127,093 Less Accumulated Depreciation and Amortization 864,826 851,148 Net Electric Plant 2,309,527 2,275,945 Nonelectric Property, Plant and Equipment Nonelectric Property, Plant and Equipment in Service 322,912 311,924 Construction Work in Progress 38,237 38,062 Total Gross Nonelectric Property, Plant and Equipment 361,149 349,986 Less Accumulated Depreciation and Amortization 211,487 207,556 Net Nonelectric Property, Plant and Equipment 149,662 142,430 Net Property, Plant and Equipment $ 2,459,189 $ 2,418,375 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Regulatory Assets and Liabilities Disclosure [Abstract] | |
Schedule of Regulatory Assets and Liabilities | The following presents our current and long-term regulatory assets and liabilities as of March 31, 2024 and December 31, 2023 and the period we expect to recover or refund such amounts: Period of March 31, 2024 December 31, 2023 (in thousands) Recovery/Refund Current Long-Term Current Long-Term Regulatory Assets Pension and Other Postretirement Benefit Plans 1 Various $ 154 $ 87,630 $ 154 $ 86,134 Alternative Revenue Program Riders 2 Up to 2 years 3,501 203 3,719 158 Asset Retirement Obligations 1 Asset lives — 107 — 87 Deferred Income Taxes Asset lives — 7,154 — 6,940 Fuel Clause Adjustments 1 Up to 1 year 4,075 — 7,294 — Derivative Instruments 1 Up to 1 year 248 — 4,210 — Other 1 Various 1,197 1,588 750 2,396 Total Regulatory Assets $ 9,175 $ 96,682 $ 16,127 $ 95,715 Regulatory Liabilities Deferred Income Taxes Asset lives $ — $ 134,779 $ — $ 136,022 Plant Removal Obligations Asset lives — 117,220 — 117,030 Fuel Clause Adjustments Up to 1 year 16,011 — 11,350 — Alternative Revenue Program Riders Up to 1 year 10,291 — 6,885 — North Dakota PTC Refunds Asset lives — 13,175 — 12,011 Pension and Other Postretirement Benefit Plans Various 6,138 11,608 6,138 11,307 Other Various 1,073 274 1,035 177 Total Regulatory Liabilities $ 33,513 $ 277,056 $ 25,408 $ 276,547 1 Costs subject to recovery without a rate of return. 2 Amounts eligible for recovery includes an incentive or rate of return. |
Short-Term and Long-Term Borr_2
Short-Term and Long-Term Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Line of Credit Facilities | The following is a summary of our lines of credit as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, (in thousands) Borrowing Limit Amount Outstanding Letters Amount Available Amount Available OTC Credit Agreement $ 170,000 $ — $ — $ 170,000 $ 170,000 OTP Credit Agreement 170,000 — 9,132 160,868 79,446 Total $ 340,000 $ — $ 9,132 $ 330,868 $ 249,446 |
Schedule of Debt | The following is a summary of outstanding long-term debt by borrower as of March 31, 2024 and December 31, 2023: (in thousands) Borrower Debt Instrument Rate Maturity March 31, December 31, OTC Guaranteed Senior Notes 3.55 % 12/15/26 $ 80,000 $ 80,000 OTP Series 2007C Senior Unsecured Notes 6.37 % 08/02/27 42,000 42,000 OTP Series 2013A Senior Unsecured Notes 4.68 % 02/27/29 60,000 60,000 OTP Series 2019A Senior Unsecured Notes 3.07 % 10/10/29 10,000 10,000 OTP Series 2020A Senior Unsecured Notes 3.22 % 02/25/30 10,000 10,000 OTP Series 2020B Senior Unsecured Notes 3.22 % 08/20/30 40,000 40,000 OTP Series 2021A Senior Unsecured Notes 2.74 % 11/29/31 40,000 40,000 OTP Series 2024A Senior Unsecured Notes 5.48 % 04/01/34 60,000 — OTP Series 2007D Senior Unsecured Notes 6.47 % 08/20/37 50,000 50,000 OTP Series 2019B Senior Unsecured Notes 3.52 % 10/10/39 26,000 26,000 OTP Series 2020C Senior Unsecured Notes 3.62 % 02/25/40 10,000 10,000 OTP Series 2013B Senior Unsecured Notes 5.47 % 02/27/44 90,000 90,000 OTP Series 2018A Senior Unsecured Notes 4.07 % 02/07/48 100,000 100,000 OTP Series 2019C Senior Unsecured Notes 3.82 % 10/10/49 64,000 64,000 OTP Series 2020D Senior Unsecured Notes 3.92 % 02/25/50 15,000 15,000 OTP Series 2021B Senior Unsecured Notes 3.69 % 11/29/51 100,000 100,000 OTP Series 2022A Senior Unsecured Notes 3.77 % 05/20/52 90,000 90,000 OTP Series 2024B Senior Unsecured Notes 5.77 % 04/01/54 60,000 — Total $ 947,000 $ 827,000 Less: Unamortized Long-Term Debt Issuance Costs 3,464 2,941 Total Long-Term Debt, Net of Unamortized Debt Issuance Costs $ 943,536 $ 824,059 |
Employee Postretirement Benef_2
Employee Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Cost (Income) | The following table includes the components of net periodic benefit cost (income) related to our defined benefit pension plans and other postretirement benefits for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, Pension Benefits (Pension Plan) Pension Benefits (ESSRP) Postretirement Benefits (in thousands) 2024 2023 2024 2023 2024 2023 Service Cost $ 972 $ 925 $ — $ 18 $ 123 $ 153 Interest Cost 4,297 4,109 474 314 400 669 Expected Return on Assets (6,380) (6,479) — — — — Amortization of Prior Service Cost — — — — (1,576) (1,433) Amortization of Net Actuarial Loss 40 — — — — — Net Periodic Benefit Cost (Income) $ (1,071) $ (1,445) $ 474 $ 332 $ (1,053) $ (611) The following table includes the impact of regulation on the recognition of periodic benefit cost (income) arising from pension and other postretirement benefits for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Net Periodic Benefit Cost (Income) $ (1,650) $ (1,724) Net Amount Amortized Due to the Effect of Regulation 303 408 Net Periodic Benefit Cost (Income) Recognized $ (1,347) $ (1,316) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Changes in Accumulated Other Comprehensive Income (Loss) | The following presents the changes in accumulated other comprehensive income (loss) for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, 2024 2023 (in thousands) Pension and Other Postretirement Benefits Net Unrealized Gains (Losses) on Available-for-Sale Securities Total Pension and Other Postretirement Benefits Net Unrealized Gains (Losses) on Available-for-Sale Securities Total Balance, Beginning of Period $ 1,375 $ (227) $ 1,148 $ 1,334 $ (419) $ 915 Other Comprehensive (Loss) Income Before Reclassifications, net of tax — (24) (24) — 80 80 Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (74) (1) 11 (2) (63) (26) (1) — (26) Total Other Comprehensive Income (Loss) (74) (13) (87) (26) 80 54 Balance, End of Period $ 1,301 $ (240) $ 1,061 $ 1,308 $ (339) $ 969 (1) Included in the computation of net periodic pension and other postretirement benefit costs. See Note 7. (2) Included in other income (expense), net on the accompanying consolidated statements of income. |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Nonvested Restricted Stock Shares Activity | The following is a summary of stock award activity for the three months ended March 31, 2024: Shares Weighted-Average Nonvested, January 1, 2024 148,913 $ 56.48 Granted 18,175 90.67 Vested (16,283) 55.02 Forfeited — — Nonvested, March 31, 2024 150,805 $ 60.76 |
Schedule of Share-Based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions | The grant date fair value of stock performance awards granted during the three months ended March 31, 2024 and 2023 was determined using a Monte Carlo fair value simulation model incorporating the following assumptions: 2024 2023 Risk-free interest rate 4.16 % 4.15 % Expected term (in years) 3 3 Expected volatility 35.10 % 34.00 % Dividend yield 2.40 % 2.50 % |
Schedule of Share-based Compensation Arrangements by Share-based Payment Award | The following is a summary of stock performance award activity for the three months ended March 31, 2024 (share amounts reflect awards at target): Shares Weighted-Average Nonvested, January 1, 2024 194,200 $ 50.33 Granted 43,400 94.45 Vested (79,000) 38.34 Forfeited — — Nonvested, March 31, 2024 158,600 $ 68.37 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following includes the computation of the denominator for basic and diluted weighted-average shares outstanding for the three months ended March 31, 2024 and 2023: Three Months Ended March 31, (in thousands) 2024 2023 Weighted-Average Common Shares Outstanding – Basic 41,724 41,632 Effect of Dilutive Securities: Stock Performance Awards 196 241 Restricted Stock Awards 111 102 Employee Stock Purchase Plan 2 2 Dilutive Effect of Potential Common Shares 309 345 Weighted-Average Common Shares Outstanding – Diluted 42,033 41,977 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present our assets and liabilities measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 classified by the input method used to measure fair value: (in thousands) Level 1 Level 2 Level 3 March 31, 2024 Assets: Investments: Money Market Funds $ 3,337 $ — $ — Mutual Funds 9,728 — — Corporate Debt Securities — 1,580 — Government-Backed and Government-Sponsored Enterprises’ Debt Securities — 7,922 — Total Assets $ 13,065 $ 9,502 $ — Liabilities: Derivative Instruments $ — $ 248 $ — Total Liabilities $ — $ 248 $ — December 31, 2023 Assets: Investments: Money Market Funds $ 3,125 $ — $ — Mutual Funds 7,771 — — Corporate Debt Securities — 1,579 — Government-Backed and Government-Sponsored Enterprises’ Debt Securities — 7,724 — Total Assets $ 10,896 $ 9,303 $ — Liabilities: Derivative Instruments — 4,210 — Total Liabilities $ — $ 4,210 $ — |
Schedule of Fair Value of Assets and Liabilities | The following reflects the carrying value and estimated fair value of these assets and liabilities as of March 31, 2024 and December 31, 2023: March 31, 2024 December 31, 2023 (in thousands) Carrying Fair Value Carrying Fair Value Assets: Cash and Cash Equivalents $ 238,158 $ 238,158 $ 230,373 $ 230,373 Total 238,158 238,158 230,373 230,373 Liabilities: Short-Term Debt — — 81,422 81,422 Long-Term Debt 943,536 820,840 824,059 710,839 Total $ 943,536 $ 820,840 $ 905,481 $ 792,261 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | |
Accounting Policies [Abstract] | ||
Number of operating segments | segment | 3 | |
Number of reportable segments | segment | 3 | |
Investment gains | $ | $ 2,385 | $ 1,829 |
Allowance for equity funds used during construction | $ | $ 200 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Number of reportable segments | 3 |
Segment Information - Schedule
Segment Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Segment Reporting Information [Line Items] | |||
Operating Revenue | $ 347,068 | $ 339,081 | |
Net Income (Loss) | 74,338 | 62,481 | |
Identifiable Assets | 3,326,032 | $ 3,242,568 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Net Income (Loss) | (133) | (1,288) | |
Identifiable Assets | 286,088 | 293,215 | |
Electric | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 141,488 | 151,909 | |
Electric | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 141,488 | 151,909 | |
Net Income (Loss) | 22,470 | 23,221 | |
Identifiable Assets | 2,586,318 | 2,533,831 | |
Manufacturing | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 99,380 | 106,782 | |
Manufacturing | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 99,380 | 106,782 | |
Net Income (Loss) | 5,261 | 6,862 | |
Identifiable Assets | 263,408 | 251,343 | |
Plastics | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 106,200 | 80,390 | |
Plastics | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 106,200 | 80,390 | |
Net Income (Loss) | 46,740 | $ 33,686 | |
Identifiable Assets | $ 190,218 | $ 164,179 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total Operating Revenues | $ 347,068 | $ 339,081 |
Total Operating Revenues from Contracts with Customers | 347,241 | 340,291 |
Electric | ||
Disaggregation of Revenue [Line Items] | ||
Total Operating Revenues | 141,488 | 151,909 |
Electric Segment - ARP Revenues | (173) | (1,210) |
Manufacturing | ||
Disaggregation of Revenue [Line Items] | ||
Total Operating Revenues | 99,380 | 106,782 |
Plastics | ||
Disaggregation of Revenue [Line Items] | ||
Total Operating Revenues | 106,200 | 80,390 |
Total Retail | Electric | ||
Disaggregation of Revenue [Line Items] | ||
Total Operating Revenues | 124,489 | 136,453 |
Retail: Residential | Electric | ||
Disaggregation of Revenue [Line Items] | ||
Total Operating Revenues | 39,457 | 43,972 |
Retail: Commercial and Industrial | Electric | ||
Disaggregation of Revenue [Line Items] | ||
Total Operating Revenues | 83,028 | 90,489 |
Retail: Other | Electric | ||
Disaggregation of Revenue [Line Items] | ||
Total Operating Revenues | 2,004 | 1,992 |
Transmission | Electric | ||
Disaggregation of Revenue [Line Items] | ||
Total Operating Revenues | 12,214 | 12,107 |
Wholesale | Electric | ||
Disaggregation of Revenue [Line Items] | ||
Total Operating Revenues | 3,465 | 1,838 |
Other | Electric | ||
Disaggregation of Revenue [Line Items] | ||
Total Operating Revenues | 1,320 | 1,511 |
Metal Parts and Tooling | Manufacturing | ||
Disaggregation of Revenue [Line Items] | ||
Total Operating Revenues | 87,915 | 90,068 |
Plastic Products and Tooling | Manufacturing | ||
Disaggregation of Revenue [Line Items] | ||
Total Operating Revenues | 8,986 | 14,142 |
Scrap Metal | Manufacturing | ||
Disaggregation of Revenue [Line Items] | ||
Total Operating Revenues | $ 2,479 | $ 2,572 |
Select Balance Sheet Informat_3
Select Balance Sheet Information - Schedule of Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Trade | $ 165,717 | $ 129,257 | ||
Other | 8,909 | 9,084 | ||
Unbilled Receivables | 23,066 | 21,324 | ||
Total Receivables | 197,692 | 159,665 | ||
Less: Allowance for Credit Losses | 2,018 | 2,522 | $ 2,191 | $ 1,648 |
Receivables, net of allowance for credit losses | $ 195,674 | $ 157,143 |
Select Balance Sheet Informat_4
Select Balance Sheet Information - Summary of Activity in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Beginning Balance, January 1 | $ 2,522 | $ 1,648 |
Additions Charged to Expense | 272 | 737 |
Reductions for Amounts Written Off, Net of Recoveries | (776) | (194) |
Ending Balance, March 31 | $ 2,018 | $ 2,191 |
Select Balance Sheet Informat_5
Select Balance Sheet Information - Schedule of Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw Material, Fuel and Supplies | $ 75,058 | $ 75,733 |
Work in Process | 28,621 | 26,354 |
Finished Goods | 44,515 | 47,614 |
Total Inventories | $ 148,194 | $ 149,701 |
Select Balance Sheet Informat_6
Select Balance Sheet Information - Schedule of Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Short-term Investments | ||
Corporate and Government Debt Securities | $ 467 | $ 0 |
Long-term Investments | ||
Corporate-Owned Life Insurance Policies | 43,980 | 42,287 |
Corporate and Government Debt Securities | 9,035 | 9,303 |
Money Market Funds | 3,337 | 3,125 |
Mutual Funds | 9,728 | 7,771 |
Other Investments | 30 | 30 |
Total Long-term Investments | 66,110 | 62,516 |
Total Investments | $ 66,577 | $ 62,516 |
Select Balance Sheet Informat_7
Select Balance Sheet Information - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, net of accumulated depreciation | $ 2,459,189 | $ 2,418,375 |
Electric Plant | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,174,353 | 3,127,093 |
Less Accumulated Depreciation and Amortization | 864,826 | 851,148 |
Property, Plant and Equipment, net of accumulated depreciation | 2,309,527 | 2,275,945 |
Nonelectric Property, Plant and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 361,149 | 349,986 |
Less Accumulated Depreciation and Amortization | 211,487 | 207,556 |
Property, Plant and Equipment, net of accumulated depreciation | 149,662 | 142,430 |
Electric Plant in Service | Electric Plant | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,030,848 | 2,989,881 |
Construction Work in Progress | Electric Plant | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 143,505 | 137,212 |
Construction Work in Progress | Nonelectric Property, Plant and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 38,237 | 38,062 |
Nonelectric Property, Plant and Equipment in Service | Nonelectric Property, Plant and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 322,912 | $ 311,924 |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Regulatory Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets - current | $ 9,175 | $ 16,127 |
Regulatory assets, long-term | 96,682 | 95,715 |
Regulatory liabilities, current | 33,513 | 25,408 |
Regulatory liabilities, long -term | 277,056 | 276,547 |
Deferred Income Taxes | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Regulatory liabilities, current | 0 | 0 |
Regulatory liabilities, long -term | 134,779 | 136,022 |
Plant Removal Obligations | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Regulatory liabilities, current | 0 | 0 |
Regulatory liabilities, long -term | 117,220 | 117,030 |
Fuel Clause Adjustments | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Regulatory liabilities, current | 16,011 | 11,350 |
Regulatory liabilities, long -term | $ 0 | 0 |
Regulatory liabilities - Remaining Recovery/Refund Period | 1 year | |
Alternative Revenue Program Riders | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Regulatory liabilities, current | $ 10,291 | 6,885 |
Regulatory liabilities, long -term | $ 0 | 0 |
Regulatory liabilities - Remaining Recovery/Refund Period | 1 year | |
North Dakota PTC Refunds | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Regulatory liabilities, current | $ 0 | 0 |
Regulatory liabilities, long -term | 13,175 | 12,011 |
Pension and Other Postretirement Benefit Plans | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Regulatory liabilities, current | 6,138 | 6,138 |
Regulatory liabilities, long -term | 11,608 | 11,307 |
Other | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Regulatory liabilities, current | 1,073 | 1,035 |
Regulatory liabilities, long -term | 274 | 177 |
Pension and Other Postretirement Benefit Plans | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets - current | 154 | 154 |
Regulatory assets, long-term | 87,630 | 86,134 |
Alternative Revenue Program Riders | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets - current | 3,501 | 3,719 |
Regulatory assets, long-term | $ 203 | 158 |
Regulatory assets - Remaining Recovery/Refund Period | 2 years | |
Asset Retirement Obligations | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets - current | $ 0 | 0 |
Regulatory assets, long-term | 107 | 87 |
Deferred Income Taxes | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets - current | 0 | 0 |
Regulatory assets, long-term | 7,154 | 6,940 |
Fuel Clause Adjustments | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets - current | 4,075 | 7,294 |
Regulatory assets, long-term | $ 0 | 0 |
Regulatory assets - Remaining Recovery/Refund Period | 1 year | |
Derivative Instruments | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets - current | $ 248 | 4,210 |
Regulatory assets, long-term | $ 0 | 0 |
Regulatory assets - Remaining Recovery/Refund Period | 1 year | |
Other | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||
Regulatory assets - current | $ 1,197 | 750 |
Regulatory assets, long-term | $ 1,588 | $ 2,396 |
Short-Term and Long-Term Borr_3
Short-Term and Long-Term Borrowings - Lines of Credit (Details) - USD ($) | Mar. 31, 2024 | Dec. 31, 2023 |
Line of Credit Facility [Line Items] | ||
Borrowing Limit | $ 340,000,000 | |
Amount Outstanding | 0 | $ 81,422,000 |
Letters of Credit | 9,132,000 | |
Amount Available | 330,868,000 | 249,446,000 |
OTC Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Borrowing Limit | 170,000,000 | |
Amount Outstanding | 0 | |
Letters of Credit | 0 | |
Amount Available | 170,000,000 | 170,000,000 |
OTP Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Borrowing Limit | 170,000,000 | |
Amount Outstanding | 0 | |
Letters of Credit | 9,132,000 | |
Amount Available | $ 160,868,000 | $ 79,446,000 |
Short-Term and Long-Term Borr_4
Short-Term and Long-Term Borrowings - Breakdown of Outstanding Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 947,000 | $ 827,000 |
Unamortized Long-Term Debt Issuance Costs | 3,464 | 2,941 |
Total Long-Term Debt, Net of Unamortized Debt Issuance Costs | $ 943,536 | 824,059 |
Guaranteed Senior Notes | ||
Debt Instrument [Line Items] | ||
Rate | 3.55% | |
Long-term debt | $ 80,000 | 80,000 |
Series 2007C Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Rate | 6.37% | |
Long-term debt | $ 42,000 | 42,000 |
Series 2013A Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Rate | 4.68% | |
Long-term debt | $ 60,000 | 60,000 |
Series 2019A Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Rate | 3.07% | |
Long-term debt | $ 10,000 | 10,000 |
Series 2020A Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Rate | 3.22% | |
Long-term debt | $ 10,000 | 10,000 |
Series 2020B Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Rate | 3.22% | |
Long-term debt | $ 40,000 | 40,000 |
Series 2021A Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Rate | 2.74% | |
Long-term debt | $ 40,000 | 40,000 |
Series 2024A Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Rate | 5.48% | |
Long-term debt | $ 60,000 | 0 |
Series 2007D Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Rate | 6.47% | |
Long-term debt | $ 50,000 | 50,000 |
Series 2019B Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Rate | 3.52% | |
Long-term debt | $ 26,000 | 26,000 |
Series 2020C Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Rate | 3.62% | |
Long-term debt | $ 10,000 | 10,000 |
Series 2013B Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Rate | 5.47% | |
Long-term debt | $ 90,000 | 90,000 |
Series 2018A Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Rate | 4.07% | |
Long-term debt | $ 100,000 | 100,000 |
Series 2019C Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Rate | 3.82% | |
Long-term debt | $ 64,000 | 64,000 |
Series 2020D Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Rate | 3.92% | |
Long-term debt | $ 15,000 | 15,000 |
Series 2021B Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Rate | 3.69% | |
Long-term debt | $ 100,000 | 100,000 |
Series 2022A Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Rate | 3.77% | |
Long-term debt | $ 90,000 | 90,000 |
Series 2024B Senior Unsecured Notes | ||
Debt Instrument [Line Items] | ||
Rate | 5.77% | |
Long-term debt | $ 60,000 | $ 0 |
Short-Term and Long-Term Borr_5
Short-Term and Long-Term Borrowings - Narrative (Details) - USD ($) | Mar. 28, 2024 | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 947,000,000 | $ 827,000,000 | |
Debt instrument, redemption price, percentage of principal amount redeemed (as a percent) | 10% | ||
Debt instrument, redemption price, percentage (as a percent) | 100% | ||
Maximum | |||
Debt Instrument [Line Items] | |||
Debt to total capitalization ratio | 0.60 | ||
Minimum | |||
Debt Instrument [Line Items] | |||
Interest and dividend coverage ratio | 1.50 | ||
Series 2024A Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 60,000,000 | 0 | |
Interest rate (as a percent) | 5.48% | ||
Series 2024B Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 60,000,000 | $ 0 | |
Interest rate (as a percent) | 5.77% | ||
Senior Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 120,000,000 | ||
Senior Notes | Series 2024A Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 60,000,000 | ||
Interest rate (as a percent) | 5.48% | ||
Senior Notes | Series 2024B Senior Unsecured Notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 60,000,000 | ||
Interest rate (as a percent) | 5.77% |
Employee Postretirement Benef_3
Employee Postretirement Benefits - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Net Periodic Benefit Cost (Income) | $ (1,650) | $ (1,724) |
Pension Benefits (Pension Plan) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | 972 | 925 |
Interest Cost | 4,297 | 4,109 |
Expected Return on Assets | (6,380) | (6,479) |
Amortization of Prior Service Cost | 0 | 0 |
Amortization of Net Actuarial Loss | 40 | 0 |
Net Periodic Benefit Cost (Income) | (1,071) | (1,445) |
Pension Benefits (ESSRP) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | 0 | 18 |
Interest Cost | 474 | 314 |
Expected Return on Assets | 0 | 0 |
Amortization of Prior Service Cost | 0 | 0 |
Amortization of Net Actuarial Loss | 0 | 0 |
Net Periodic Benefit Cost (Income) | 474 | 332 |
Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost | 123 | 153 |
Interest Cost | 400 | 669 |
Expected Return on Assets | 0 | 0 |
Amortization of Prior Service Cost | (1,576) | (1,433) |
Amortization of Net Actuarial Loss | 0 | 0 |
Net Periodic Benefit Cost (Income) | $ (1,053) | $ (611) |
Employee Postretirement Benef_4
Employee Postretirement Benefits - Composition of Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Retirement Benefits [Abstract] | ||
Net Periodic Benefit Cost (Income) | $ (1,650) | $ (1,724) |
Net Amount Amortized Due to the Effect of Regulation | 303 | 408 |
Net Periodic Benefit Cost (Income) Recognized | $ (1,347) | $ (1,316) |
Employee Postretirement Benef_5
Employee Postretirement Benefits - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Retirement Benefits [Abstract] | ||
Pension contribution | $ 0 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate (as a percent) | 19.30% | 17.60% |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Otter Tail Power Company $ in Millions | 1 Months Ended |
Mar. 31, 2024 USD ($) plan | |
Federal Energy Regulatory Commission | |
Other Commitments [Line Items] | |
Estimated liability of refund obligation | $ | $ 2.8 |
Environmental Protection Agency | |
Other Commitments [Line Items] | |
Number of outstanding state implementation plans, timeline provided by regulatory agency | plan | 34 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
May 03, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | |
Class of Stock [Line Items] | |||
Total capitalization | $ 2,441,000 | $ 2,267,065 | |
Otter Tail Power Company | |||
Class of Stock [Line Items] | |||
Equity to total capitalization ratio | 53.20% | ||
Net assets restricted from distribution | $ 807,000 | ||
Minimum | Otter Tail Power Company | Minnesota Public Utilities Commission | |||
Class of Stock [Line Items] | |||
Public utilities, requested equity capital structure (as a percent) | 48.30% | ||
Maximum | Otter Tail Power Company | |||
Class of Stock [Line Items] | |||
Total capitalization | $ 2,000,000 | ||
Maximum | Otter Tail Power Company | Minnesota Public Utilities Commission | |||
Class of Stock [Line Items] | |||
Public utilities, requested equity capital structure (as a percent) | 59.10% | ||
Second Shelf Registration | Subsequent Event | |||
Class of Stock [Line Items] | |||
Shelf registration (in shares) | 1,500,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 1,443,006 | $ 1,217,317 |
Other Comprehensive (Loss) Income Before Reclassifications, net of tax | (24) | 80 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (63) | (26) |
Total Other Comprehensive Income (Loss) | (87) | 54 |
Ending balance | 1,497,464 | 1,263,777 |
Pension and Other Postretirement Benefits | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 1,375 | 1,334 |
Other Comprehensive (Loss) Income Before Reclassifications, net of tax | 0 | 0 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | (74) | (26) |
Total Other Comprehensive Income (Loss) | (74) | (26) |
Ending balance | 1,301 | 1,308 |
Net Unrealized Gains (Losses) on Available-for-Sale Securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | (227) | (419) |
Other Comprehensive (Loss) Income Before Reclassifications, net of tax | (24) | 80 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | 11 | 0 |
Total Other Comprehensive Income (Loss) | (13) | 80 |
Ending balance | (240) | (339) |
Accumulated Other Comprehensive Income (Loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 1,148 | 915 |
Total Other Comprehensive Income (Loss) | (87) | 54 |
Ending balance | $ 1,061 | $ 969 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 USD ($) measure | Mar. 31, 2023 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based payment arrangement, expense | $ 5.5 | $ 5.3 |
Restricted Stock Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Cliff awards vesting period (in years) | 4 years | |
Fair value of awards vested | $ 1.5 | 1.2 |
Restricted Stock Awards | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period (in years) | 3 years | |
Restricted Stock Awards | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period (in years) | 4 years | |
Stock Performance Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period (in years) | 3 years | |
Fair value of awards vested | $ 11.1 | $ 5.3 |
Number of performance measures | measure | 2 | |
Stock Performance Awards | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of target amount as actual payment (as a percent) | 0% | |
Stock Performance Awards | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of target amount as actual payment (as a percent) | 150% |
Share-Based Payments - Summary
Share-Based Payments - Summary of Restricted Stock Awards and Stock Performance Awards (Details) | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Restricted Stock Awards | |
Shares | |
Beginning of year (in shares) | shares | 148,913 |
Granted (in shares) | shares | 18,175 |
Vested (in shares) | shares | (16,283) |
Forfeited (in shares) | shares | 0 |
End of year (in shares) | shares | 150,805 |
Weighted-Average Grant-Date Fair Value | |
Beginning of year (in dollars per share) | $ / shares | $ 56.48 |
Granted (in dollars per share) | $ / shares | 90.67 |
Vested (in dollars per share) | $ / shares | 55.02 |
Forfeited (in dollars per share) | $ / shares | 0 |
End of year (in dollars per share) | $ / shares | $ 60.76 |
Stock Performance Awards | |
Shares | |
Beginning of year (in shares) | shares | 194,200 |
Granted (in shares) | shares | 43,400 |
Vested (in shares) | shares | (79,000) |
Forfeited (in shares) | shares | 0 |
End of year (in shares) | shares | 158,600 |
Weighted-Average Grant-Date Fair Value | |
Beginning of year (in dollars per share) | $ / shares | $ 50.33 |
Granted (in dollars per share) | $ / shares | 94.45 |
Vested (in dollars per share) | $ / shares | 38.34 |
Forfeited (in dollars per share) | $ / shares | 0 |
End of year (in dollars per share) | $ / shares | $ 68.37 |
Share-Based Payments - Weighted
Share-Based Payments - Weighted-Average Assumptions (Details) - Stock Performance Awards | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 4.16% | 4.15% |
Expected term (in years) | 3 years | 3 years |
Expected volatility | 35.10% | 34% |
Dividend yield | 2.40% | 2.50% |
Earnings Per Share (Details)
Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||
Weighted-Average Common Shares Outstanding – Basic (in shares) | 41,724 | 41,632 |
Effect of Dilutive Securities: | ||
Total Dilutive Shares (in shares) | 309 | 345 |
Weighted-Average Common Shares Outstanding – Diluted (in shares) | 42,033 | 41,977 |
Stock Performance Awards | ||
Effect of Dilutive Securities: | ||
Effect of Dilutive Securities (in shares) | 196 | 241 |
Restricted Stock Awards | ||
Effect of Dilutive Securities: | ||
Effect of Dilutive Securities (in shares) | 111 | 102 |
Employee Stock Purchase Plan | ||
Effect of Dilutive Securities: | ||
Effect of Dilutive Securities (in shares) | 2 | 2 |
Derivative Instruments (Details
Derivative Instruments (Details) MWh in Thousands, $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 USD ($) MWh | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount of outstanding swap agreements | MWh | 54 | ||
Derivative liability | $ 0.2 | $ 4.2 | |
Swap | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Loss on derivatives, net | $ 2.7 | $ 16 |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Fair Value Measurements, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Investments: | ||
Mutual Funds | $ 9,728 | $ 7,771 |
Corporate and Government Debt Securities | 9,035 | 9,303 |
Level 1 | Fair Value, Recurring | ||
Investments: | ||
Money Market Funds | 3,337 | 3,125 |
Mutual Funds | 9,728 | 7,771 |
Total Assets | 13,065 | 10,896 |
Liabilities: | ||
Derivative Instruments | 0 | 0 |
Total | 0 | 0 |
Level 1 | Fair Value, Recurring | Corporate Debt Securities | ||
Investments: | ||
Corporate and Government Debt Securities | 0 | 0 |
Level 1 | Fair Value, Recurring | Government-Backed and Government-Sponsored Enterprises’ Debt Securities | ||
Investments: | ||
Corporate and Government Debt Securities | 0 | 0 |
Level 2 | Fair Value, Recurring | ||
Investments: | ||
Money Market Funds | 0 | 0 |
Mutual Funds | 0 | 0 |
Total Assets | 9,502 | 9,303 |
Liabilities: | ||
Derivative Instruments | 248 | 4,210 |
Total | 248 | 4,210 |
Level 2 | Fair Value, Recurring | Corporate Debt Securities | ||
Investments: | ||
Corporate and Government Debt Securities | 1,580 | 1,579 |
Level 2 | Fair Value, Recurring | Government-Backed and Government-Sponsored Enterprises’ Debt Securities | ||
Investments: | ||
Corporate and Government Debt Securities | 7,922 | 7,724 |
Level 3 | Fair Value, Recurring | ||
Investments: | ||
Money Market Funds | 0 | 0 |
Mutual Funds | 0 | 0 |
Total Assets | 0 | 0 |
Liabilities: | ||
Derivative Instruments | 0 | 0 |
Total | 0 | 0 |
Level 3 | Fair Value, Recurring | Corporate Debt Securities | ||
Investments: | ||
Corporate and Government Debt Securities | 0 | 0 |
Level 3 | Fair Value, Recurring | Government-Backed and Government-Sponsored Enterprises’ Debt Securities | ||
Investments: | ||
Corporate and Government Debt Securities | $ 0 | $ 0 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Fair Value of Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Carrying Amount | ||
Assets: | ||
Cash and Cash Equivalents | $ 238,158 | $ 230,373 |
Total Assets | 238,158 | 230,373 |
Liabilities: | ||
Short-Term Debt | 0 | 81,422 |
Long-Term Debt | 943,536 | 824,059 |
Total | 943,536 | 905,481 |
Fair Value | ||
Assets: | ||
Cash and Cash Equivalents | 238,158 | 230,373 |
Total Assets | 238,158 | 230,373 |
Liabilities: | ||
Short-Term Debt | 0 | 81,422 |
Long-Term Debt | 820,840 | 710,839 |
Total | $ 820,840 | $ 792,261 |