Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 13, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Otter Tail Corp | ||
Entity Central Index Key | 1466593 | ||
Trading Symbol | ottr | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-Known Seasoned Issuer | Yes | ||
Entity Common Stock, Shares Outstanding | 37,363,740 | ||
Entity Public Float | $1,048,982,831 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets | ||
Cash and Cash Equivalents | $2,007 | |
Accounts Receivable: | ||
Trade (less allowance for doubtful accounts of $1,048 for 2014 and $1,148 for 2013) | 60,172 | 57,828 |
Other | 13,179 | 9,787 |
Inventories | 85,203 | 72,627 |
Deferred Income Taxes | 49,482 | 35,325 |
Unbilled Revenues | 17,996 | 17,926 |
Regulatory Assets | 25,273 | 17,940 |
Other | 7,187 | 7,581 |
Assets of Discontinued Operations | 48,657 | 49,478 |
Total Current Assets | 307,149 | 270,499 |
Investments | 8,582 | 9,362 |
Other Assets | 30,111 | 28,834 |
Goodwill | 31,488 | 31,488 |
Other Intangibles--Net | 11,251 | 12,228 |
Deferred Debits | ||
Unamortized Debt Expense | 4,300 | 4,188 |
Regulatory Assets | 129,868 | 83,730 |
Total Deferred Debits | 134,168 | 87,918 |
Plant | ||
Electric Plant in Service | 1,545,112 | 1,460,884 |
Nonelectric Operations | 175,159 | 170,925 |
Construction Work in Progress | 248,677 | 187,462 |
Total Gross Plant | 1,968,948 | 1,819,271 |
Less Accumulated Depreciation and Amortization | 700,418 | 663,581 |
Net Plant | 1,268,530 | 1,155,690 |
Total Assets | 1,791,279 | 1,596,019 |
Current Liabilities | ||
Short-Term Debt | 10,854 | 51,195 |
Current Maturities of Long-Term Debt | 201 | 188 |
Accounts Payable | 107,013 | 96,109 |
Accrued Salaries and Wages | 19,256 | 18,957 |
Accrued Taxes | 13,793 | 12,227 |
Derivative Liabilities | 14,230 | 11,782 |
Other Accrued Liabilities | 8,793 | 6,532 |
Liabilities of Discontinued Operations | 27,559 | 39,283 |
Total Current Liabilities | 201,699 | 236,273 |
Pensions Benefit Liability | 102,711 | 69,743 |
Other Postretirement Benefits Liability | 53,638 | 45,221 |
Other Noncurrent Liabilities | 26,794 | 25,209 |
Commitments and Contingencies (note 9) | ||
Deferred Credits | ||
Deferred Income Taxes | 230,810 | 192,222 |
Deferred Tax Credits | 26,384 | 28,288 |
Regulatory Liabilities | 77,013 | 73,926 |
Other | 975 | 718 |
Total Deferred Credits | 335,182 | 295,154 |
Capitalization (page 69) | ||
Long-Term Debt, Net of Current Maturities | 498,489 | 389,589 |
Common Shares, Par Value $5 Per Share--Authorized, 50,000,000 Shares; Outstanding, 2014-37,218,053 Shares; 2013-36,271,696 Shares | 186,090 | 181,358 |
Premium on Common Shares | 278,436 | 255,759 |
Retained Earnings | 112,903 | 99,441 |
Accumulated Other Comprehensive Loss | -4,663 | -1,728 |
Total Common Equity | 572,766 | 534,830 |
Total Capitalization | 1,071,255 | 924,419 |
Total Liabilities and Equity | 1,791,279 | 1,596,019 |
Cumulative Preferred Shares | ||
Capitalization (page 69) | ||
Cumulative Shares | ||
Cumulative Preference Shares | ||
Capitalization (page 69) | ||
Cumulative Shares |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Trade, allowance for doubtful accounts (in dollars) | $1,048 | $1,148 |
Common shares, par value (in dollars per share) | $5 | $5 |
Common shares, authorized | 50,000,000 | 50,000,000 |
Common shares, outstanding | 37,218,053 | 36,271,696 |
Cumulative Preferred Shares | ||
Cumulative shares, authorized | 1,500,000 | 1,500,000 |
Cumulative shares, without par value (in dollars per share) | ||
Cumulative shares, outstanding | ||
Cumulative Preference Shares | ||
Cumulative shares, authorized | 1,000,000 | 1,000,000 |
Cumulative shares, without par value (in dollars per share) | ||
Cumulative shares, outstanding |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Revenues | |||
Electric | $407,629 | $373,462 | $350,689 |
Product Sales | 391,633 | 369,952 | 359,476 |
Total Operating Revenues | 799,262 | 743,414 | 710,165 |
Operating Expenses | |||
Production Fuel - Electric | 67,216 | 71,248 | 66,284 |
Purchased Power - Electric System Use | 65,848 | 52,006 | 49,184 |
Electric Operation and Maintenance Expenses | 141,936 | 133,395 | 121,069 |
Cost of Products Sold (depreciation included below) | 308,069 | 283,267 | 270,045 |
Other Nonelectric Expenses | 45,981 | 40,074 | 40,273 |
Asset Impairment Charge | 432 | ||
Depreciation and Amortization | 58,074 | 57,876 | 57,857 |
Property Taxes - Electric | 12,607 | 11,311 | 10,720 |
Total Operating Expenses | 699,731 | 649,177 | 615,864 |
Operating Income | 99,531 | 94,237 | 94,301 |
Interest Charges | 29,648 | 26,974 | 31,903 |
Loss on Early Retirement of Debt | 10,252 | 13,106 | |
Other Income | 3,557 | 4,100 | 3,915 |
Income Before Income Taxes - Continuing Operations | 73,440 | 61,111 | 53,207 |
Income Tax Expense - Continuing Operations | 16,557 | 12,516 | 7,173 |
Net Income from Continuing Operations | 56,883 | 48,595 | 46,034 |
Discontinued Operations | |||
Income (Loss) - net of Income Tax Expense of $3,952 in 2014, $1,036 in 2013 and $1,190 in 2012 | 6,445 | 2,060 | -13,669 |
Impairment Loss - net of Income Tax (Benefit) of $0 in 2014 and ($21,213) in 2012 | -5,605 | -32,107 | |
Gain (Loss) on Disposition - net of Income Tax Expense of $6 in 2013 and $315 in 2012 | 210 | -5,531 | |
Net Gain (Loss) from Discontinued Operations | 840 | 2,270 | -51,307 |
Total Net Income (Loss) | 57,723 | 50,865 | -5,273 |
Preferred Dividend Requirement and Other Adjustments | 513 | 736 | |
Earnings (Loss) Available for Common Shares | $57,723 | $50,352 | ($6,009) |
Average Number of Common Shares Outstanding--Basic (in shares) | 36,514 | 36,151 | 36,048 |
Average Number of Common Shares Outstanding--Diluted (in shares) | 36,753 | 36,355 | 36,242 |
Basic Earnings (Loss) Per Common Share: | |||
Continuing Operations (net of preferred dividend requirement) (in dollars per share) | $1.56 | $1.33 | $1.25 |
Discontinued Operations (in dollars per share) | $0.02 | $0.06 | ($1.42) |
Earnings Per Share, Basic, Total (in dollars per share) | $1.58 | $1.39 | ($0.17) |
Diluted Earnings (Loss) Per Common Share: | |||
Continuing Operations (net of preferred dividend requirement) (in dollars per share) | $1.55 | $1.33 | $1.25 |
Discontinued Operations (in dollars per share) | $0.02 | $0.06 | ($1.42) |
Earnings Per Share, Diluted, Total (in dollars per share) | $1.57 | $1.39 | ($0.17) |
Dividends Declared Per Common Share (in dollars per share) | $1.21 | $1.19 | $1.19 |
Consolidated_Statements_of_Inc1
Consolidated Statements of Income (Parentheticals) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement [Abstract] | |||
Income tax expense (benefit) on income from discontinued operations | $3,952 | $1,036 | $1,190 |
Income tax (benefit) on impairment loss on discontinued operations | 0 | -21,213 | |
Income tax expense of (loss) gain on disposition of discontinued operations | $6 | $315 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Income and Comprehensive Income [Abstract] | |||
Net Income (Loss) | $57,723 | $50,865 | ($5,273) |
Unrealized (Loss) Gain on Available-for-Sale Securities: | |||
Reversal of Previously Recognized Gains Realized on Sale of Investments and Included in Other Income During Period | -19 | -27 | |
(Losses) Gains Arising During Period | -14 | -77 | 154 |
Income Tax Benefit (Expense) | 12 | 36 | -53 |
Change in Unrealized Gains on Available-for-Sale Securities - net-of-tax | -21 | -68 | 101 |
Pension and Postretirement Benefit Plans: | |||
Actuarial (Losses) Gains Net of Regulatory Allocation Adjustment | -5,048 | 3,986 | -2,133 |
Amortization of Unrecognized Postretirement Benefit Costs (note 11) | 192 | 555 | 376 |
Income Tax Benefit (Expense) | 1,942 | -1,816 | 703 |
Pension and Postretirement Benefit Plans - net-of-tax | -2,914 | 2,725 | -1,054 |
Total Other Comprehensive (Loss) Income | -2,935 | 2,657 | -953 |
Total Comprehensive Income (Loss) | $54,788 | $53,522 | ($6,226) |
Consolidated_Statements_of_Com1
Consolidated Statements of Common Shareholders' Equity (USD $) | Common Shares | Premium On Common Shares | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Total | |
In Thousands, except Share data | ||||||
Balance at Dec. 31, 2011 | $180,509 | $253,123 | $141,248 | ($3,432) | [1] | $571,448 |
Balance (in shares) at Dec. 31, 2011 | 36,101,695 | |||||
Common Stock Issuances, Net of Expenses | 359 | 148 | 507 | |||
Common Stock Issuances, Net of Expenses (in shares) | 71,745 | |||||
Common Stock Retirements | -26 | -85 | -111 | |||
Common Stock Retirements (in shares) | -5,072 | |||||
Net Income (Loss) | -5,273 | -5,273 | ||||
Other Comprehensive Income (Loss) | -953 | -953 | ||||
Tax Benefit - Stock Compensation | -103 | -103 | ||||
Employee Stock Incentive Plan Expense | 435 | 435 | ||||
Premium on Purchase of Stock for Employee Purchase Plan | -222 | -222 | ||||
Cumulative Preferred Dividends | -736 | -736 | ||||
Common Dividends ($1.19 per share for the year ended December 2012, 2013 and $1.21 per share for 2014) | -43,018 | -43,018 | ||||
Balance at Dec. 31, 2012 | 180,842 | 253,296 | 92,221 | -4,385 | [1] | 521,974 |
Balance (in shares) at Dec. 31, 2012 | 36,168,368 | |||||
Common Stock Issuances, Net of Expenses | 562 | 2,095 | 2,657 | |||
Common Stock Issuances, Net of Expenses (in shares) | 112,512 | |||||
Common Stock Retirements | -46 | -177 | -223 | |||
Common Stock Retirements (in shares) | -9,184 | |||||
Net Income (Loss) | 50,865 | 50,865 | ||||
Other Comprehensive Income (Loss) | 2,657 | 2,657 | ||||
Tax Benefit - Stock Compensation | 299 | 299 | ||||
Employee Stock Incentive Plan Expense | 418 | 418 | ||||
Premium on Purchase of Stock for Employee Purchase Plan | -258 | -258 | ||||
Cumulative Preferred Dividends | -427 | -427 | ||||
Preferred Stock Issuance Expenses Transferred to Retained Earnings on Redemption of Preferred Shares | 86 | -86 | ||||
Common Dividends ($1.19 per share for the year ended December 2012, 2013 and $1.21 per share for 2014) | -43,132 | -43,132 | ||||
Balance at Dec. 31, 2013 | 181,358 | 255,759 | 99,441 | -1,728 | [1] | 534,830 |
Balance (in shares) at Dec. 31, 2013 | 36,271,696 | 36,271,696 | ||||
Common Stock Issuances, Net of Expenses | 4,857 | 21,057 | 25,914 | |||
Common Stock Issuances, Net of Expenses (in shares) | 971,286 | |||||
Common Stock Retirements | -125 | -465 | -590 | |||
Common Stock Retirements (in shares) | -24,929 | |||||
Net Income (Loss) | 57,723 | 57,723 | ||||
Other Comprehensive Income (Loss) | -2,935 | -2,935 | ||||
Tax Benefit - Stock Compensation | 302 | 302 | ||||
Employee Stock Incentive Plan Expense | 1,783 | 1,783 | ||||
Common Dividends ($1.19 per share for the year ended December 2012, 2013 and $1.21 per share for 2014) | -44,261 | -44,261 | ||||
Balance at Dec. 31, 2014 | $186,090 | $278,436 | $112,903 | ($4,663) | [1] | $572,766 |
Balance (in shares) at Dec. 31, 2014 | 37,218,053 | 37,218,053 | ||||
[1] | Accumulated Other Comprehensive Loss on December 31 is comprised of the following: (in thousands) 2014 2013 2012 Unrealized Gain on Marketable Equity Securities: Before Tax $ 40 $ 73 $ 177 Tax Effect (14) (26) (62) Unrealized Gain on Marketable Equity Securities Net-of-Tax 26 47 115 Unamortized Actuarial Losses, Prior Service Costs and Transition Obligation Related to Pension and Postretirement Benefits: Before Tax (7,815) (2,959) (7,500) Tax Effect 3,126 1,184 3,000 Unamortized Actuarial Losses and Transition Obligation Related to Pension and Postretirement Benefits Net-of-Tax (4,689) (1,775) (4,500)Accumulated Other Comprehensive Loss: Before Tax (7,775) (2,886) (7,323) Tax Effect 3,112 1,158 2,938 Net Accumulated Other Comprehensive Loss $ (4,663) $ (1,728) $ (4,385) See accompanying notes to consolidated financial statements. |
Consolidated_Statements_of_Com2
Consolidated Statements of Common Shareholders' Equity (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Before Tax | ($7,775) | ($2,886) | ($7,323) |
Accumulated Other Comprehensive Income (Loss), Tax Effect | 3,112 | 1,158 | 2,938 |
Accumulated Other Comprehensive Income (Loss), Net-of-Tax | -4,663 | -1,728 | -4,385 |
Unrealized Gain on Marketable Equity Securities: | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Before Tax | 40 | 73 | 177 |
Accumulated Other Comprehensive Income (Loss), Tax Effect | -14 | -26 | -62 |
Accumulated Other Comprehensive Income (Loss), Net-of-Tax | 26 | 47 | 115 |
Unamortized Actuarial Losses, Prior Service Costs and Transition Obligation Related to Pension and Postretirement Benefits: | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income (Loss), Before Tax | -7,815 | -2,959 | -7,500 |
Accumulated Other Comprehensive Income (Loss), Tax Effect | 3,126 | 1,184 | 3,000 |
Accumulated Other Comprehensive Income (Loss), Net-of-Tax | ($4,689) | ($1,775) | ($4,500) |
Consolidated_Statements_of_Com3
Consolidated Statements of Common Shareholders' Equity (Parentheticals 1) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Statement Of Stockholders' Equity [Abstract] | |||
Dividends Declared Per Common Share (in dollars per share) | $1.21 | $1.19 | $1.19 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities | |||
Net Income (Loss) | $57,723 | $50,865 | ($5,273) |
Adjustments to Reconcile Net Income (Loss) to Net Cash Provided by Operating Activities: | |||
Net (Gain) Loss from Sale of Discontinued Operations | -210 | 5,531 | |
Net (Income) Loss from Discontinued Operations | -840 | -2,060 | 45,776 |
Depreciation and Amortization | 58,074 | 57,876 | 57,857 |
Asset Impairment Charge | 432 | ||
Premium Paid for Early Retirement of Long-Term Debt | 9,889 | 12,500 | |
Deferred Tax Credits | -1,904 | -1,925 | -2,091 |
Deferred Income Taxes | 28,204 | 15,333 | 11,755 |
Change in Deferred Debits and Other Assets | -50,361 | 56,720 | -4,654 |
Discretionary Contribution to Pension Fund | -20,000 | -10,000 | -10,000 |
Change in Noncurrent Liabilities and Deferred Credits | 58,442 | -42,226 | 32,718 |
Allowance for Equity/Other Funds Used During Construction | -1,543 | -1,823 | -1,168 |
Change in Derivatives Net of Regulatory Deferral | 519 | 8 | 718 |
Stock Compensation Expense - Equity Awards | 1,783 | 1,456 | 1,311 |
Other-Net | 601 | 1,222 | 5,666 |
Cash (Used for) Provided by Current Assets and Current Liabilities: | |||
Change in Receivables | -4,647 | 4,033 | -4,041 |
Change in Inventories | -12,577 | -3,371 | -675 |
Change in Other Current Assets | -579 | -3,911 | -1,324 |
Change in Payables and Other Current Liabilities | 10,296 | 11,045 | 26,134 |
Change in Interest Payable and Income Taxes Receivable/Payable | 2,578 | -513 | -16,146 |
Net Cash Provided by Continuing Operations | 125,769 | 142,408 | 155,026 |
Net Cash (Used in) Provided by Discontinued Operations | -13,295 | 5,373 | 78,521 |
Net Cash Provided by Operating Activities | 112,474 | 147,781 | 233,547 |
Cash Flows from Investing Activities | |||
Capital Expenditures | -163,582 | -159,833 | -114,186 |
Proceeds from Disposal of Noncurrent Assets | 2,467 | 2,196 | 2,832 |
Net Increase in Other Investments | -2,785 | -1,845 | -1,184 |
Net Cash Used in Investing Activities - Continuing Operations | -163,900 | -159,482 | -112,538 |
Net Proceeds from Sale of Discontinued Operations | 12,842 | 42,229 | |
Net Cash Used in Investing Activities - Discontinued Operations | -596 | -2,557 | -13,268 |
Net Cash Used in Investing Activities | -164,496 | -149,197 | -83,577 |
Cash Flows from Financing Activities | |||
Change in Checks Written in Excess of Cash | 1,236 | ||
Net Short-Term (Repayments) Borrowings | -40,341 | 51,195 | |
Proceeds from Issuance of Common Stock | 26,259 | 1,821 | |
Common Stock Issuance Expenses | -673 | -3 | -370 |
Payments for Retirement of Capital Stock | -590 | -15,723 | -111 |
Proceeds from Issuance of Long-Term Debt | 150,000 | 40,900 | |
Short-Term and Long-Term Debt Issuance Expenses | -856 | -522 | -897 |
Payments for Retirement of Long-Term Debt | -41,088 | -72,981 | -50,224 |
Premium Paid for Early Retirement of Long-Term Debt | -9,889 | -12,500 | |
Dividends Paid and Other Distributions | -44,261 | -43,818 | -43,976 |
Net Cash Provided by (Used in) Financing Activities - Continuing Operations | 49,686 | -49,020 | -108,078 |
Net Cash Provided by (Used in) Financing Activities - Discontinued Operations | 1,178 | -4,278 | |
Net Cash Provided by (Used in) Financing Activities | 50,864 | -49,020 | -112,356 |
Net Change in Cash and Cash Equivalents - Discontinued Operations | -849 | -2,306 | -1,033 |
Net Change in Cash and Cash Equivalents | -2,007 | -52,742 | 36,581 |
Cash and Cash Equivalents at Beginning of Period | 2,007 | 54,749 | 18,168 |
Cash and Cash Equivalents at End of Period | $2,007 | $54,749 |
Consolidated_Statements_of_Cap
Consolidated Statements of Capitalization (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Capitalization [Line Items] | ||
Short-Term Debt | $10,854 | $51,195 |
Long-Term Debt | 498,691 | 389,778 |
Less: Current Maturities - Otter Tail Corporation | 201 | 188 |
Unamortized Debt Discount - Otter Tail Corporation | 1 | 1 |
Total Long-Term Debt | 498,489 | 389,589 |
Total Common Shareholders' Equity | 572,766 | 534,830 |
Total Capitalization | 1,071,255 | 924,419 |
Cumulative Preferred Shares | ||
Schedule of Capitalization [Line Items] | ||
Cumulative Shares | ||
Cumulative Preference Shares | ||
Schedule of Capitalization [Line Items] | ||
Cumulative Shares | ||
Otter Tail Corporation Credit Agreement | ||
Schedule of Capitalization [Line Items] | ||
Short-Term Debt | 10,854 | |
Otter Tail Power Company Credit Agreement | ||
Schedule of Capitalization [Line Items] | ||
Short-Term Debt | 51,195 | |
9.000% Notes, due December 15, 2016 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | 52,330 | 52,330 |
North Dakota Development Note, 3.95%, due April 1, 2018 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | 256 | 325 |
Partnership in Assisting Community Expansion (PACE) Note, 2.54%, due March 18, 2021 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | 1,105 | 1,223 |
Unsecured Term Loan - LIBOR plus 0.875%, due January 15, 2015 (early retired on February 27, 2014) | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | 40,900 | |
Senior Unsecured Notes 5.95%, Series A, due August 20, 2017 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | 33,000 | 33,000 |
Senior Unsecured Notes 4.63%, due December 1, 2021 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | 140,000 | 140,000 |
Senior Unsecured Notes 6.15%, Series B, due August 20, 2022 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | 30,000 | 30,000 |
Senior Unsecured Notes 6.37%, Series C, due August 20, 2027 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | 42,000 | 42,000 |
Senior Unsecured Notes 4.68%, Series A, due February 27, 2029 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | 60,000 | |
Senior Unsecured Notes 6.47%, Series D, due August 20, 2037 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | 50,000 | 50,000 |
Senior Unsecured Notes 5.47%, Series B, due February 27, 2044 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | 90,000 | |
Otter Tail Corporation | ||
Schedule of Capitalization [Line Items] | ||
Short-Term Debt | 10,854 | |
Long-Term Debt | 53,691 | 53,878 |
Less: Current Maturities - Otter Tail Corporation | 201 | 188 |
Unamortized Debt Discount - Otter Tail Corporation | 1 | 1 |
Total Long-Term Debt | 53,489 | 53,689 |
Total Capitalization | 626,255 | 588,519 |
Otter Tail Corporation | 9.000% Notes, due December 15, 2016 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | 52,330 | 52,330 |
Otter Tail Corporation | North Dakota Development Note, 3.95%, due April 1, 2018 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | 256 | 325 |
Otter Tail Corporation | Partnership in Assisting Community Expansion (PACE) Note, 2.54%, due March 18, 2021 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | 1,105 | 1,223 |
Otter Tail Power Company | ||
Schedule of Capitalization [Line Items] | ||
Short-Term Debt | 51,195 | |
Long-Term Debt | 445,000 | 335,900 |
Less: Current Maturities - Otter Tail Corporation | ||
Unamortized Debt Discount - Otter Tail Corporation | ||
Total Long-Term Debt | 445,000 | 335,900 |
Otter Tail Power Company | Unsecured Term Loan - LIBOR plus 0.875%, due January 15, 2015 (early retired on February 27, 2014) | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | 40,900 | |
Otter Tail Power Company | Senior Unsecured Notes 5.95%, Series A, due August 20, 2017 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | 33,000 | 33,000 |
Otter Tail Power Company | Senior Unsecured Notes 4.63%, due December 1, 2021 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | 140,000 | 140,000 |
Otter Tail Power Company | Senior Unsecured Notes 6.15%, Series B, due August 20, 2022 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | 30,000 | 30,000 |
Otter Tail Power Company | Senior Unsecured Notes 6.37%, Series C, due August 20, 2027 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | 42,000 | 42,000 |
Otter Tail Power Company | Senior Unsecured Notes 4.68%, Series A, due February 27, 2029 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | 60,000 | |
Otter Tail Power Company | Senior Unsecured Notes 6.47%, Series D, due August 20, 2037 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | 50,000 | 50,000 |
Otter Tail Power Company | Senior Unsecured Notes 5.47%, Series B, due February 27, 2044 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt | $90,000 |
Consolidated_Statements_of_Cap1
Consolidated Statements of Capitalization (Parentheticals) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
9.000% Notes, due December 15, 2016 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Interest Rate | 9.00% | 9.00% |
Long-Term Debt, Due Date | 15-Dec-16 | 15-Dec-16 |
North Dakota Development Note, 3.95%, due April 1, 2018 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Interest Rate | 3.95% | 3.95% |
Long-Term Debt, Due Date | 1-Apr-18 | 1-Apr-18 |
Partnership in Assisting Community Expansion (PACE) Note, 2.54%, due March 18, 2021 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Interest Rate | 2.54% | 2.54% |
Long-Term Debt, Due Date | 18-Mar-21 | 21-Mar-21 |
Unsecured Term Loan - LIBOR plus 0.875%, due January 15, 2015 (early retired on February 27, 2014) | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Due Date | 15-Jan-15 | |
Debt Instrument Retirement Date | 27-Feb-14 | |
Senior Unsecured Notes 5.95%, Series A, due August 20, 2017 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Interest Rate | 5.95% | 5.95% |
Long-Term Debt, Due Date | 20-Aug-17 | 20-Aug-17 |
Senior Unsecured Notes 4.63%, due December 1, 2021 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Interest Rate | 4.63% | 4.63% |
Long-Term Debt, Due Date | 1-Dec-21 | 1-Dec-21 |
Senior Unsecured Notes 6.15%, Series B, due August 20, 2022 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Interest Rate | 6.15% | 6.15% |
Long-Term Debt, Due Date | 20-Aug-22 | 20-Aug-22 |
Senior Unsecured Notes 6.37%, Series C, due August 20, 2027 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Interest Rate | 6.37% | 6.37% |
Long-Term Debt, Due Date | 20-Aug-27 | 20-Aug-27 |
Senior Unsecured Notes 4.68%, Series A, due February 27, 2029 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Interest Rate | 4.68% | 4.68% |
Long-Term Debt, Due Date | 27-Feb-29 | 27-Feb-29 |
Senior Unsecured Notes 6.47%, Series D, due August 20, 2037 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Interest Rate | 6.47% | 6.47% |
Long-Term Debt, Due Date | 20-Aug-37 | 20-Aug-37 |
Senior Unsecured Notes 5.47%, Series B, due February 27, 2044 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Interest Rate | 5.47% | 5.47% |
Long-Term Debt, Due Date | 27-Feb-44 | 27-Feb-44 |
Cumulative Preferred Shares | ||
Schedule of Capitalization [Line Items] | ||
Cumulative shares, without par value (in dollars per share) | ||
Cumulative shares, authorized | 1,500,000 | 1,500,000 |
Cumulative shares, outstanding | ||
Cumulative Preference Shares | ||
Schedule of Capitalization [Line Items] | ||
Cumulative shares, without par value (in dollars per share) | ||
Cumulative shares, authorized | 1,000,000 | 1,000,000 |
Cumulative shares, outstanding | ||
Otter Tail Corporation | 9.000% Notes, due December 15, 2016 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Interest Rate | 9.00% | 9.00% |
Long-Term Debt, Due Date | 15-Dec-16 | 15-Dec-16 |
Otter Tail Corporation | North Dakota Development Note, 3.95%, due April 1, 2018 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Interest Rate | 3.95% | 3.95% |
Long-Term Debt, Due Date | 1-Apr-18 | 1-Apr-18 |
Otter Tail Corporation | Partnership in Assisting Community Expansion (PACE) Note, 2.54%, due March 18, 2021 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Interest Rate | 2.54% | 2.54% |
Long-Term Debt, Due Date | 18-Mar-21 | 18-Mar-21 |
Otter Tail Power Company | Unsecured Term Loan - LIBOR plus 0.875%, due January 15, 2015 (early retired on February 27, 2014) | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Due Date | 15-Jan-15 | |
Debt Instrument Retirement Date | 27-Feb-14 | 27-Feb-14 |
Otter Tail Power Company | Senior Unsecured Notes 5.95%, Series A, due August 20, 2017 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Interest Rate | 5.95% | 5.95% |
Long-Term Debt, Due Date | 20-Aug-17 | 20-Aug-17 |
Otter Tail Power Company | Senior Unsecured Notes 4.63%, due December 1, 2021 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Interest Rate | 4.63% | 4.63% |
Long-Term Debt, Due Date | 1-Dec-21 | 1-Dec-21 |
Otter Tail Power Company | Senior Unsecured Notes 6.15%, Series B, due August 20, 2022 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Interest Rate | 6.15% | 6.15% |
Long-Term Debt, Due Date | 20-Aug-22 | 20-Aug-22 |
Otter Tail Power Company | Senior Unsecured Notes 6.37%, Series C, due August 20, 2027 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Interest Rate | 6.37% | 6.37% |
Long-Term Debt, Due Date | 20-Aug-27 | 20-Aug-27 |
Otter Tail Power Company | Senior Unsecured Notes 4.68%, Series A, due February 27, 2029 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Interest Rate | 4.68% | 4.68% |
Long-Term Debt, Due Date | 27-Feb-29 | 27-Feb-29 |
Otter Tail Power Company | Senior Unsecured Notes 6.47%, Series D, due August 20, 2037 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Interest Rate | 6.47% | 6.47% |
Long-Term Debt, Due Date | 20-Aug-27 | 20-Aug-37 |
Otter Tail Power Company | Senior Unsecured Notes 5.47%, Series B, due February 27, 2044 | ||
Schedule of Capitalization [Line Items] | ||
Long-Term Debt, Interest Rate | 5.47% | 5.47% |
Long-Term Debt, Due Date | 27-Feb-44 | 27-Feb-44 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies | ||||||||||||||||||||
Principles of Consolidation | |||||||||||||||||||||
The consolidated financial statements of Otter Tail Corporation and its wholly owned subsidiaries (the Company) include the accounts of the following segments: Electric, Manufacturing and Plastics. See note 2 to consolidated financial statements for further descriptions of the Company’s business segments. All intercompany balances and transactions have been eliminated in consolidation except profits on sales to the regulated electric utility company from nonregulated affiliates, which is in accordance with the requirements of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 980, Regulated Operations, (ASC 980). | |||||||||||||||||||||
Regulation and ASC 980 | |||||||||||||||||||||
The Company’s regulated electric utility company, Otter Tail Power Company (OTP), accounts for the financial effects of regulation in accordance with ASC 980. This standard allows for the recording of a regulatory asset or liability for costs and revenues that will be collected or refunded through the ratemaking process in the future. In accordance with regulatory treatment, OTP defers utility debt redemption premiums and amortizes such costs over the original life of the reacquired bonds. See note 4 to consolidated financial statements for further discussion. | |||||||||||||||||||||
OTP is subject to various state and federal agency regulations. The accounting policies followed by this business are subject to the Uniform System of Accounts of the Federal Energy Regulatory Commission (FERC). These accounting policies differ in some respects from those used by the Company’s nonelectric businesses. | |||||||||||||||||||||
Plant, Retirements and Depreciation | |||||||||||||||||||||
Utility plant is stated at original cost. The cost of additions includes contracted work, direct labor and materials, allocable overheads and allowance for funds used during construction. The amount of interest capitalized on electric utility plant was $689,000 in 2014, $1,002,000 in 2013 and $656,000 in 2012. The cost of depreciable units of property retired less salvage is charged to accumulated depreciation. Removal costs, when incurred, are charged against the accumulated reserve for estimated removal costs, a regulatory liability. Maintenance, repairs and replacement of minor items of property are charged to operating expenses. The provisions for utility depreciation for financial reporting purposes are made on the straight‑line method based on the estimated service lives of the properties (5 to 70 years). Such provisions as a percent of the average balance of depreciable electric utility property were 2.89% in 2014, 2.96% in 2013 and 2.98% in 2012. Gains or losses on group asset dispositions are taken to the accumulated provision for depreciation reserve and impact current and future depreciation rates. | |||||||||||||||||||||
Property and equipment of nonelectric operations are carried at historical cost and are depreciated on a straight‑line basis over the assets’ estimated useful lives (3 to 40 years). The cost of additions includes contracted work, direct labor and materials, allocable overheads and capitalized interest. No interest was capitalized on nonelectric plant in 2014, 2013 or 2012. Maintenance and repairs are expensed as incurred. Gains or losses on asset dispositions are included in the determination of operating income. | |||||||||||||||||||||
Jointly Owned Facilities | |||||||||||||||||||||
The consolidated balance sheets include OTP’s ownership interests in the assets and liabilities of Big Stone Plant (53.9%) and Coyote Station (35.0%). The following amounts are included in the Company’s December 31, 2014 and 2013 consolidated balance sheets: | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Big Stone Plant: | |||||||||||||||||||||
Electric Plant in Service | $ | 143,746 | $ | 142,780 | |||||||||||||||||
Construction Work in Progress | 160,809 | 94,913 | |||||||||||||||||||
Accumulated Depreciation | (86,211 | ) | (83,005 | ) | |||||||||||||||||
Net Plant | $ | 218,344 | $ | 154,688 | |||||||||||||||||
Coyote Station: | |||||||||||||||||||||
Electric Plant in Service | $ | 163,824 | $ | 162,095 | |||||||||||||||||
Construction Work in Progress | 1,725 | 303 | |||||||||||||||||||
Accumulated Depreciation | (99,364 | ) | (96,907 | ) | |||||||||||||||||
Net Plant | $ | 66,185 | $ | 65,491 | |||||||||||||||||
OTP is a joint owner, with other regional utilities, in three major transmission lines and two additional major planned transmission line projects with the following ownership interests: 14.8% in the Bemidji-Grand Rapids 230 kV line, approximately 14.1% in the Fargo-Monticello 345 kV line, approximately 4.8% in the Brookings-Southeast Twin Cities Multi-Value Project (MVP) 345 kV line, 50.0% in the Big Stone South to Brookings MVP 345 kV line and 50.0% in the Big Stone South to Ellendale MVP 345 kV line. The following amounts for the jointly-owned transmission facilities are included in the Company’s December 31, 2014 and 2013 consolidated balance sheets: | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Electric Plant in Service | $ | 68,648 | $ | 26,337 | |||||||||||||||||
Construction Work in Progress | 59,163 | 71,205 | |||||||||||||||||||
Accumulated Depreciation | (1,758 | ) | (837 | ) | |||||||||||||||||
Net Plant | $ | 126,053 | $ | 96,705 | |||||||||||||||||
The Company’s share of direct revenue and expenses of the jointly owned facilities is included in operating revenue and expenses in the consolidated statements of income. | |||||||||||||||||||||
Coyote Station Lignite Supply Agreement – Variable Interest Entity | |||||||||||||||||||||
In October 2012, the Coyote Station owners, including OTP, entered into a lignite sales agreement (LSA) with Coyote Creek Mining Company, L.L.C. (CCMC), a subsidiary of The North American Coal Corporation, for the purchase of coal to meet the coal supply requirements of Coyote Station for the period beginning in May 2016 and ending in December 2040. The price per ton to be paid by the Coyote Station owners under the LSA will reflect the cost of production, along with an agreed profit and capital charge. CCMC was formed for the purpose of mining lignite coal to meet the coal fuel supply requirements of Coyote Station from May 2016 through December 2040 and, based on the terms of the LSA, is considered a variable interest entity (VIE) due to the transfer of all operating and economic risk to the Coyote Station owners, as the agreement is structured so that the price of the coal would cover all costs of operations as well as future reclamation costs. The Coyote Station owners are also providing a guarantee of the value of the assets of CCMC as they would be required to buy certain assets at book value should they terminate the contract prior to the end of the contract term and are providing a guarantee of the value of the equity of CCMC in that they are required to buy the entity at the end of the contract term at equity value. Under current accounting standards, the primary beneficiary of a VIE is required to include the assets, liabilities, results of operations and cash flows of the VIE in its consolidated financial statements. No single owner of Coyote Station owns a majority interest in Coyote Station and none, individually, has the power to direct the activities that most significantly impact CCMC. Therefore, none of the owners individually, including OTP, is considered a primary beneficiary of the VIE and the Company is not required to include CCMC in its consolidated financial statements. | |||||||||||||||||||||
Under the LSA, all development period costs of the Coyote Creek coal mine incurred during the development period will be recovered from the Coyote Station owners over the full term of the production period, which commences with the first delivery of coal to Coyote Station, scheduled for May 2016, by being included in the cost of production. The development fee and the capital charge incurred during the development period will be recovered from the Coyote Station owners over the first 52 months of the production period by being included in the cost of production during those months. OTP’s 35% share of development period costs, development fees and capital charges incurred by CCMC through December 31, 2014 is $21.6 million. In the event the contract is terminated because regulations or legislation render the burning of coal cost prohibitive and the assets worthless, OTP’s maximum exposure to loss as a result of its involvement with CCMC as of December 31, 2014 could be as high as $21.6 million. | |||||||||||||||||||||
Recoverability of Long-Lived Assets | |||||||||||||||||||||
The Company reviews its long-lived assets whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. The Company determines potential impairment by comparing the carrying amount of the assets with net cash flows expected to be provided by operating activities of the business or related assets. If the sum of the expected future net cash flows is less than the carrying amount of the assets, the Company would recognize an impairment loss. Such an impairment loss would be measured as the amount by which the carrying amount exceeds the fair value of the asset, where fair value is based on the discounted cash flows expected to be generated by the asset. | |||||||||||||||||||||
In June 2012, the Company entered into a nonbinding letter of interest with Trinity Industries, Inc. (Trinity) to sell the fixed assets of IMD for $20 million, with the Company retaining IMD’s net working capital—approximately $66 million on June 30, 2012. On September 6, 2012 the Company entered into definitive agreements with Trinity to sell the fixed assets of IMD for $20 million. The agreed on price for the fixed assets was an indicator of the fair value of the assets under level 2 of the ASC fair value hierarchy and an indication of a decrease in the market value of the assets being sold, which were significantly impacted by a decline in market conditions in the wind energy industry. IMD had no tower orders for 2013 due to the expected expiration, at the end of 2012, of the Federal Production Tax Credit (PTC) for investments in renewable energy resources. These factors resulted in IMD recording a fair value adjustment of its long-lived assets to the indicated market price of $20 million and an asset impairment charge of $45.6 million ($27.5 million net-of-tax benefits), or $0.76 per share, in June 2012 broken down as follows: | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Long-Lived Assets (net of accumulated depreciation) | $ | 45,285 | |||||||||||||||||||
Goodwill | 288 | ||||||||||||||||||||
Total Asset Impairment Charges | $ | 45,573 | |||||||||||||||||||
The sales of IMD’s fixed assets were completed in 2012 with the effects of the related transactions reflected in discontinued operations in the Company’s 2012 consolidated financial statements. See note 16 to consolidated financial statements for further information. | |||||||||||||||||||||
Otter Tail Energy Services Company (OTESCO) recorded an asset impairment charge of $0.4 million in 2012 related to wind farm development rights at its Sheridan Ridge and Stutsman County sites in North Dakota based on the fair value of these assets declining to $0 as of March 31, 2012. | |||||||||||||||||||||
On February 8, 2013 the Company sold substantially all of the assets of Shrco, Inc. (Shrco), the Company’s former waterfront equipment manufacturer, subject to certain closing conditions. The Company recorded a $7.7 million ($4.6 million net-of-tax benefits), or $0.13 per share, asset impairment charge in December 2012 based on the indicated market value of Shrco’s assets broken down as follows: | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Long-Lived Assets (net of accumulated depreciation) | $ | 5,859 | |||||||||||||||||||
Inventory | 782 | ||||||||||||||||||||
Accrued Selling Costs | 1,106 | ||||||||||||||||||||
Total Impairment Charges | $ | 7,747 | |||||||||||||||||||
Income Taxes | |||||||||||||||||||||
Comprehensive interperiod income tax allocation is used for substantially all book and tax temporary differences. Deferred income taxes arise for all temporary differences between the book and tax basis of assets and liabilities. Deferred taxes are recorded using the tax rates scheduled by tax law to be in effect in the periods when the temporary differences reverse. The Company amortizes investment tax credits over the estimated lives of related property. The Company records income taxes in accordance with ASC Topic 740, Income Taxes, and has recognized in its consolidated financial statements the tax effects of all tax positions that are “more-likely-than-not” to be sustained on audit based solely on the technical merits of those positions as of the balance sheet date. The term “more-likely-than-not” means a likelihood of more than 50%. The Company classifies interest and penalties on tax uncertainties as components of the provision for income taxes. See note 14 to consolidated financial statements regarding the Company’s accounting for uncertain tax positions. | |||||||||||||||||||||
The Company also is required to assess the realizability of its deferred tax assets, taking into consideration the Company’s forecast of future taxable income, the reversal of other existing temporary differences, available net operating loss carryforwards and available tax planning strategies that could be implemented to realize the deferred tax assets. Based on this assessment, management must evaluate the need for, and amount of, valuation allowances against the Company’s deferred tax assets. To the extent facts and circumstances change in the future, adjustments to the valuation allowance may be required. | |||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||
Due to the diverse business operations of the Company, revenue recognition depends on the product produced and sold or service performed. The Company recognizes revenue when the earnings process is complete, evidenced by an agreement with the customer, there has been delivery and acceptance, the price is fixed or determinable and collectability is reasonably assured. In cases where significant obligations remain after delivery, revenue recognition is deferred until such obligations are fulfilled. Provisions for sales returns and warranty costs are recorded at the time of the sale based on historical information and current trends. In the case of derivative instruments, such as OTP’s forward energy contracts, marked-to-market and realized gains and losses are recognized on a net basis in revenue in accordance with ASC Topic 815, Derivatives and Hedging (ASC 815). Gains and losses on forward energy contracts subject to regulatory treatment, if any, are deferred and recognized on a net basis in revenue in the period realized. | |||||||||||||||||||||
For the Company’s operating companies recognizing revenue on certain products when shipped, those operating companies have no further obligation to provide services related to such product. The shipping terms used in these instances are FOB shipping point. | |||||||||||||||||||||
Customer electricity use is metered and bills are rendered monthly. Revenue is accrued for electricity consumed but not yet billed. Rate schedules applicable to substantially all customers include a fuel clause adjustment, under which the rates are adjusted to reflect changes in average cost of fuels and purchased power, and a surcharge for recovery of conservation-related expenses. Revenue is recognized for fuel and purchased power costs incurred in excess of amounts recovered in base rates but not yet billed through the fuel clause adjustment, for conservation program incentives and bonuses earned but not yet billed and for renewable resource, transmission-related and environmental incurred costs and investment returns approved for recovery through riders. | |||||||||||||||||||||
Revenues on wholesale electricity sales from Company-owned generating units are recognized when energy is delivered. For shared use of transmission facilities with certain regional transmission cooperatives, revenues are estimated. Bills are rendered based on anticipated usage and settlements are made later based on actual usage. Estimated revenues may be adjusted prior to settlement, or at the time of settlement, to reflect actual usage. | |||||||||||||||||||||
OTP’s unrealized gains and losses on forward energy contracts that do not meet the definition of capacity contracts are marked to market and reflected on a net basis in electric revenue on the Company’s consolidated statement of income. Under ASC 815, OTP’s forward energy contracts that do not meet the definition of a capacity contract and are subject to unplanned netting do not qualify for the normal purchase and sales exception from mark-to-market accounting. See note 5 to consolidated financial statements for further discussion. | |||||||||||||||||||||
Manufacturing operating revenues are recorded when products are shipped. | |||||||||||||||||||||
The Company’s construction companies, reported under discontinued operations in the accompanying financial statements, enter into fixed-price construction contracts. Revenues under these contracts are recognized on a percentage-of-completion basis. The method used to determine the progress of completion is based on the ratio of costs incurred to total estimated costs on construction projects. See note 16 to consolidated financial statements. | |||||||||||||||||||||
The following table summarizes costs incurred and billings and estimated earnings recognized on uncompleted contracts: | |||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Costs Incurred on Uncompleted Contracts | $ | 402,332 | $ | 361,487 | |||||||||||||||||
Less Billings to Date | (411,909 | ) | (377,608 | ) | |||||||||||||||||
Plus Estimated Earnings Recognized | 15,154 | 6,477 | |||||||||||||||||||
Net Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts | $ | 5,577 | $ | (9,644 | ) | ||||||||||||||||
The following costs and estimated earnings in excess of billings and billings in excess of costs and estimated earnings are included in the Company’s consolidated balance sheets under assets of discontinued operations and liabilities of discontinued operations: | |||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts | $ 8,133 | $ 4,063 | |||||||||||||||||||
Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts | (2,556) | (13,707) | |||||||||||||||||||
Net Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts | $ 5,577 | $ (9,644) | |||||||||||||||||||
The Company has a standard quarterly estimate at completion process in which management reviews the progress and performance of the Company’s contracts accounted for under percentage-of-completion accounting. As part of this process, management reviews include, but are not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities, and the related changes in estimates of revenues and costs. The risks and opportunities include management’s judgment about the ability and cost to achieve the schedule, technical requirements and other contract requirements. Management must make assumptions regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the contract, and performance by subcontractors, among other variables. Based on this analysis, any adjustments to net sales, costs of sales, and the related impact to operating income are recorded as necessary in the period they become known. These adjustments may result from positive program performance and an increase in operating profit during the performance of individual contracts if management determines it will be successful in mitigating risks surrounding the technical, schedule, and cost aspects of those contracts or realizing related opportunities. Likewise, these adjustments may result in a decrease in operating profit if management determines it will not be successful in mitigating these risks or realizing related opportunities. Changes in estimates of net sales, costs of sales, and the related impact to operating income are recognized using a cumulative catch-up, which recognizes, in the current period, the cumulative effect of the changes on current and prior periods based on a contract’s percent complete. A significant change in one or more of these estimates could affect the profitability of one or more of the Company’s contracts. If a loss is indicated at a point in time during a contract, a projected loss for the entire contract is estimated and recognized. | |||||||||||||||||||||
In 2012, Foley Company (Foley) experienced cost overruns in excess of estimated costs on several large projects. All of these projects were substantially completed as of December 31, 2012. Estimated costs on certain projects in excess of previous period estimates resulted in insignificant pretax charges in 2014 compared with $0.6 million in 2013 and $14.9 million in 2012. | |||||||||||||||||||||
Plastics operating revenues are recorded when the product is shipped. | |||||||||||||||||||||
Warranty Reserves | |||||||||||||||||||||
The Company establishes reserves for estimated product warranty costs at the time revenue is recognized based on historical warranty experience and additionally for any known product warranty issues. Certain products previously sold by the Company carried one to fifteen year warranties. Although the Company engaged in extensive product quality programs and processes, the Company’s warranty obligations have been and may in the future be affected by product failure rates, repair or field replacement costs and additional development costs incurred in correcting product failures. The warranty reserve balances as of December 31, 2014 and December 31, 2013 relate entirely to products that were produced by IMD and Shrco prior to the Company selling the assets of these companies and are included in liabilities of discontinued operations. See note 16 to consolidated financial statements. | |||||||||||||||||||||
Retainage | |||||||||||||||||||||
Assets of discontinued operations include the following amounts billed under contracts by the Company’s construction subsidiaries that have been retained by customers pending project completion: | |||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Accounts Receivable Retained by Customers | $ | 6,759 | $ | 7,125 | |||||||||||||||||
Shipping and Handling Costs | |||||||||||||||||||||
The Company includes revenues received for shipping and handling in operating revenues. Expenses paid for shipping and handling are recorded as part of cost of goods sold. | |||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||
The Company uses estimates based on the best information available in recording transactions and balances resulting from business operations. Estimates are used for such items as depreciable lives, asset impairment evaluations, tax provisions, collectability of trade accounts receivable, self-insurance programs, unbilled electric revenues, accrued renewable resource, transmission and environmental cost recovery rider revenues, valuations of forward energy contracts, percentage-of-completion, warranty reserves and actuarially determined benefits costs and liabilities. As better information becomes available (or actual amounts are known), the recorded estimates are revised. Consequently, operating results can be affected by revisions to prior accounting estimates. | |||||||||||||||||||||
Cash Equivalents | |||||||||||||||||||||
The Company considers all highly liquid debt instruments purchased with maturity of 90 days or less to be cash equivalents. | |||||||||||||||||||||
Investments | |||||||||||||||||||||
The following table provides a breakdown of the Company’s investments at December 31, 2014 and 2013: | |||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Cost Method: | |||||||||||||||||||||
Economic Development Loan Pools | $ | 174 | $ | 219 | |||||||||||||||||
Other | 129 | 158 | |||||||||||||||||||
Equity Method - Affordable Housing and Other Partnerships | 265 | 43 | |||||||||||||||||||
Marketable Securities Classified as Available-for-Sale | 8,014 | 8,942 | |||||||||||||||||||
Total Investments | $ | 8,582 | $ | 9,362 | |||||||||||||||||
The Company’s marketable securities classified as available-for-sale are held for insurance purposes and are reflected at their fair values on December 31, 2014. See further discussion below. | |||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||
The Company follows ASC Topic 820, Fair Value Measurements and Disclosures (ASC 820), for recurring fair value measurements. ASC 820 provides a single definition of fair value, requires enhanced disclosures about assets and liabilities measured at fair value and establishes a hierarchal framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value. The three levels defined by the hierarchy and examples of each level are as follows: | |||||||||||||||||||||
Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed by the New York Stock Exchange and commodity derivative contracts listed on the New York Mercantile Exchange (NYMEX). | |||||||||||||||||||||
Level 2 – Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, such as treasury securities with pricing interpolated from recent trades of similar securities, or priced with models using highly observable inputs, such as commodity options priced using observable forward prices and volatilities. | |||||||||||||||||||||
Level 3 – Significant inputs to pricing have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation and may include complex and subjective models and forecasts. | |||||||||||||||||||||
The following tables present, for each of the hierarchy levels, the Company’s assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2014 and December 31, 2013: | |||||||||||||||||||||
December 31, 2014 (in thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Current Assets – Other: | |||||||||||||||||||||
Forward Energy Contracts | $ | -- | $ | -- | $ | 257 | |||||||||||||||
Money Market and Mutual Funds - Nonqualified Retirement Savings Plan | 120 | ||||||||||||||||||||
Investments: | |||||||||||||||||||||
Corporate Debt Securities – Held by Captive Insurance Company | 6,761 | ||||||||||||||||||||
U.S. Government-Sponsored Enterprises’ Debt Securities – Held by Captive Insurance Company | 1,253 | ||||||||||||||||||||
Other Assets: | |||||||||||||||||||||
Money Market and Mutual Funds - Nonqualified Retirement Savings Plan | 593 | ||||||||||||||||||||
Total Assets | $ | 713 | $ | 8,014 | $ | 257 | |||||||||||||||
Liabilities: | |||||||||||||||||||||
Derivative Liabilities - Forward Gasoline Purchase Contracts | $ | -- | $ | 342 | $ | -- | |||||||||||||||
Derivative Liabilities - Forward Energy Contracts | -- | -- | 13,888 | ||||||||||||||||||
Total Liabilities | $ | -- | $ | 342 | $ | 13,888 | |||||||||||||||
December 31, 2013 (in thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Current Assets – Other: | |||||||||||||||||||||
Forward Energy Contracts | $ | -- | $ | -- | $ | 338 | |||||||||||||||
Forward Gasoline Purchase Contracts | 62 | ||||||||||||||||||||
Money Market and Mutual Funds - Nonqualified Retirement Savings Plan | 110 | ||||||||||||||||||||
Investments: | |||||||||||||||||||||
Corporate Debt Securities – Held by Captive Insurance Company | 7,671 | ||||||||||||||||||||
U.S. Government-Sponsored Enterprises’ Debt Securities – Held by Captive Insurance Company | 1,271 | ||||||||||||||||||||
Other Assets: | |||||||||||||||||||||
Money Market and Mutual Funds - Nonqualified Retirement Savings Plan | 866 | ||||||||||||||||||||
Total Assets | $ | 976 | $ | 9,004 | $ | 338 | |||||||||||||||
Liabilities: | |||||||||||||||||||||
Derivative Liabilities - Forward Energy Contracts | $ | -- | $ | 103 | $ | 11,679 | |||||||||||||||
Total Liabilities | $ | -- | $ | 103 | $ | 11,679 | |||||||||||||||
The valuation techniques and inputs used for the Level 2 fair value measurements in the table above are as follows: | |||||||||||||||||||||
Forward Energy Contracts – Prices used for the fair valuation of these forward purchases and sales of electricity, which have illiquid trading points, are indexed to a price at an active market. | |||||||||||||||||||||
Forward Gasoline Purchase Contracts – These contracts are priced based on NYMEX quoted prices for Reformulated Blendstock for Oxygenate Blending (RBOB) Gasoline contracts. Prices used for the fair valuation of these contracts are based on NYMEX daily reporting date quoted prices for RBOB contracts with the same settlement periods. | |||||||||||||||||||||
Corporate and U.S. Government-Sponsored Enterprises’ Debt Securities Held by the Company’s Captive Insurance Company – Fair values are determined on the basis of 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. | |||||||||||||||||||||
Fair values for OTP’s forward energy contracts with delivery points that are not at an active trading hub included in Level 3 of the fair value hierarchy in the table above as of December 31, 2014 and December 31, 2013, are based on prices indexed to observable prices at an active trading hub. Prices at illiquid trading points are based on a basis spread between that trading point and more liquid trading hub prices. These basis spreads are determined based on available market price information and the use of forward price curve models. The December 31, 2014 Level 3 forward electric basis spreads ranged from $2.50 to $7.97 per megawatt-hour under the active trading hub price. The weighted average price was $34.95 per megawatt-hour. | |||||||||||||||||||||
In the table above, the fair value of the Level 3 forward energy contracts in derivative asset and derivative liability positions as of December 31, 2014 are related to power purchase contracts where OTP intends to take or has taken physical delivery of the energy under the contract. When OTP takes physical delivery of the energy purchased under these contracts the costs incurred are subject to recovery in base rates and through fuel clause adjustments. Any derivative assets or liabilities and related gains or losses recorded as a result of the fair valuation of these power purchase contracts will not be realized and are 100% offset by regulatory liabilities and assets related to fuel clause adjustment treatment of purchased power costs. Therefore, the net impact of any recorded fair valuation gains or losses related to these contracts on the Company’s consolidated net income is $0 and the net income impact of any future fair valuation adjustments of these contracts will be $0. When energy is delivered under these contracts, they will be settled at the original contract price and any fair valuation gains or losses and related derivative assets or liabilities recorded over the life of the contracts will be reversed along with any offsetting regulatory liabilities or assets. Because of regulatory accounting treatment, any price volatility related to the fair valuation of these contracts had no impact on the Company’s reported consolidated net income for the years ended December 31, 2014 and 2013. | |||||||||||||||||||||
The following table presents changes in Level 3 forward energy contract derivative asset and liability fair valuations for the twelve-month periods ended December 31, 2014 and 2013: | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Forward Energy Contracts - Fair Values Beginning of Period | $ | (11,341 | ) | $ | (17,782 | ) | |||||||||||||||
Less: Amounts Reversed on Settlement of Contracts Entered into in Prior Periods | 2,785 | 7,943 | |||||||||||||||||||
Changes in Fair Value of Contracts Entered into in Prior Periods | 166 | (640 | ) | ||||||||||||||||||
Cumulative Fair Value Adjustments of Contracts Entered into in Prior Years at End of Period | (8,390 | ) | (10,479 | ) | |||||||||||||||||
Net Decrease in Value of Open Contracts Entered into in Current Period | (5,241 | ) | (862 | ) | |||||||||||||||||
Forward Energy Contracts - Net Derivative Liability Fair Values End of Period | $ | (13,631 | ) | $ | (11,341 | ) | |||||||||||||||
Inventories | |||||||||||||||||||||
The Electric segment inventories are reported at average cost. All other segments’ inventories are stated at the lower of cost (first‑in, first‑out) or market. Inventories consist of the following: | |||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Finished Goods | $ | 27,998 | $ | 20,649 | |||||||||||||||||
Work in Process | 10,628 | 9,942 | |||||||||||||||||||
Raw Material, Fuel and Supplies | 46,577 | 42,036 | |||||||||||||||||||
Total Inventories | $ | 85,203 | $ | 72,627 | |||||||||||||||||
Goodwill and Other Intangible Assets | |||||||||||||||||||||
The Company accounts for goodwill and other intangible assets in accordance with the requirements of ASC Topic 350, Intangibles—Goodwill and Other, measuring its goodwill and indefinite-lived intangible assets for impairment annually in the fourth quarter, and more often when events indicate the assets may be impaired. The Company does qualitative assessments of its reporting units with recorded goodwill to determine if it is more likely than not that the fair value of the reporting unit exceeds its book value. The Company also does quantitative assessments of its reporting units with recorded goodwill to determine the fair value of the reporting unit. | |||||||||||||||||||||
In the fourth quarter of 2012 the Company sold Moorhead Electric, Inc. (MEI), a subsidiary company that provided electrical contracting services. In connection with this sale, the Company disposed of $147,000 in goodwill associated with the purchase of MEI in 1992. With the classification of Aevenia in discontinued operations in 2014, the 2012 results of operations and cash flows of MEI are now reflected in discontinued operations. | |||||||||||||||||||||
In the fourth quarter of 2014 the Company entered into negotiations to sell its wholly owned subsidiary, Foley, a mechanical and prime contractor on industrial projects. As a result of an impairment indicator during the fourth quarter of 2014, the Company recorded a $5.6 million, or $0.15 per share, goodwill impairment charge. This impairment charge was based on the indicated offering price in a signed letter of intent for the purchase of Foley. The goodwill impairment loss is reflected in the results of discontinued operations and the remaining goodwill balance related to Foley is included in assets of discontinued operations. An assessment of the carrying amounts of the remaining goodwill of the Company’s reporting units reported under continuing operations as of December 31, 2014 indicated the fair values are substantially in excess of their respective book values and not impaired. | |||||||||||||||||||||
The following tables summarize changes to goodwill by business segment during 2014 and 2013: | |||||||||||||||||||||
Gross Balance | Accumulated | Balance | Adjustments | Balance | |||||||||||||||||
(in thousands) | 31-Dec-13 | Impairments | (net of impairments) | to Goodwill | (net of impairments) | ||||||||||||||||
31-Dec-13 | in 2014 | 31-Dec-14 | |||||||||||||||||||
Manufacturing | $ | 12,186 | $ | -- | $ | 12,186 | $ | -- | $ | 12,186 | |||||||||||
Plastics | 19,302 | -- | 19,302 | -- | 19,302 | ||||||||||||||||
Total | $ | 31,488 | $ | -- | $ | 31,488 | $ | -- | $ | 31,488 | |||||||||||
Gross Balance | Accumulated | Balance | Adjustments | Balance | |||||||||||||||||
(in thousands) | 31-Dec-12 | Impairments | (net of impairments) | to Goodwill | (net of impairments) | ||||||||||||||||
31-Dec-12 | in 2013 | 31-Dec-13 | |||||||||||||||||||
Manufacturing | $ | 12,186 | $ | -- | $ | 12,186 | $ | -- | $ | 12,186 | |||||||||||
Plastics | 19,302 | -- | 19,302 | -- | 19,302 | ||||||||||||||||
Total | $ | 31,488 | $ | -- | $ | 31,488 | $ | -- | $ | 31,488 | |||||||||||
Intangible assets with finite lives are amortized over their estimated useful lives and reviewed for impairment in accordance with requirements under ASC 360‑10‑35, Property, Plant, and Equipment—Overall—Subsequent Measurement. The following table summarizes the components of the Company’s intangible assets at December 31: | |||||||||||||||||||||
2014 (in thousands) | Gross Carrying | Accumulated | Net Carrying | Remaining | |||||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||||||
Periods | |||||||||||||||||||||
Amortizable Intangible Assets: | |||||||||||||||||||||
Customer Relationships | $ | 16,811 | $ | 5,784 | $ | 11,027 | 60-160 months | ||||||||||||||
Other Intangible Assets Including Contracts | 639 | 415 | 224 | 21 months | |||||||||||||||||
Total | $ | 17,450 | $ | 6,199 | $ | 11,251 | |||||||||||||||
2013 (in thousands) | |||||||||||||||||||||
Amortizable Intangible Assets: | |||||||||||||||||||||
Customer Relationships | $ | 16,811 | $ | 4,935 | $ | 11,876 | 72-172 months | ||||||||||||||
Other Intangible Assets Including Contracts | 772 | 420 | 352 | 33 months | |||||||||||||||||
Total | $ | 17,583 | $ | 5,355 | $ | 12,228 | |||||||||||||||
The amortization expense for these intangible assets was: | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||
Amortization Expense – Intangible Assets | $ | 977 | $ | 977 | $ | 981 | |||||||||||||||
The estimated annual amortization expense for these intangible assets for the next five years is: | |||||||||||||||||||||
(in thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||
Estimated Amortization Expense – Intangible Assets | $ | 977 | $ | 945 | $ | 849 | $ | 849 | $ | 849 | |||||||||||
Supplemental Disclosures of Cash Flow Information | |||||||||||||||||||||
As of December 31, | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Noncash Investing Activities: | |||||||||||||||||||||
Accounts Payable Outstanding Related to Capital Additions1 | $ | 24,526 | $ | 22,951 | |||||||||||||||||
Accounts Receivable Outstanding Related to Joint Plant Owner’s Share of Capital Additions2 | $ | 4,594 | $ | 3,264 | |||||||||||||||||
1Amounts are included in cash used for capital expenditures in subsequent periods when payables are settled. | |||||||||||||||||||||
2Amounts are deducted from cash used for capital expenditures in subsequent periods when cash is received. | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||
Cash Paid (Received) During the Year for: | |||||||||||||||||||||
Interest (net of amount capitalized) | $ | 26,364 | $ | 26,789 | $ | 30,741 | |||||||||||||||
Income Taxes | $ | 145 | $ | (453 | ) | $ | (353 | ) | |||||||||||||
New Accounting Standards | |||||||||||||||||||||
Accounting Standards Update (ASU) 2013-11 | |||||||||||||||||||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740) (ASC 740), Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which requires an entity with unrecognized tax benefits to present the unrecognized tax benefits as a reduction to a deferred tax asset related to a net operating loss carryforward, a similar tax loss, or a tax credit carryforward when such net operating loss carryforward, similar tax loss, or tax credit carryforward is available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position. The ASU 2013-11 amendments to ASC 740 are effective for fiscal years beginning after December 15, 2013. The Company adopted the reporting requirements in ASU 2013-11 in the first quarter of 2014 on a prospective basis and transferred $4.3 million of unrecognized tax benefits from other long-term liabilities to long-term deferred income taxes. | |||||||||||||||||||||
ASU 2014-09 | |||||||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (ASC 606). ASC 606 is a comprehensive, principles-based accounting standard which amends current revenue recognition guidance with the objective of improving revenue recognition requirements by providing a single comprehensive model to determine the measurement of revenue and the timing of revenue recognition. ASC 606 also requires expanded disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. | |||||||||||||||||||||
ASU 2014-09 amendments to the ASC are effective for fiscal years beginning after December 15, 2016. Application methods permitted are: (1) full retrospective, (2) retrospective using one or more practical expedients and (3) retrospective with the cumulative effect of initial application recognized at the date of initial application. Early application of the ASU amendments is not permitted. The Company is currently reviewing ASU 2014-09, identifying key impacts to its businesses, reviewing revenue streams and contracts to determine areas where the amendments in ASU 2014-09 will be applicable and evaluating transition options. |
Business_Combinations_Disposit
Business Combinations, Dispositions and Segment Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Business Combinations, Dispositions and Segment Information [Abstract] | |||||||||||||
Business Combinations, Dispositions and Segment Information | 2. Business Combinations, Dispositions and Segment Information | ||||||||||||
The Company acquired no new businesses in 2014, 2013 or 2012. | |||||||||||||
In execution of the Company’s announced strategy of realigning its business portfolio to reduce its risk profile and dedicate a greater portion of its resources toward electric utility operations, the Company sold several of its holdings in 2013 and 2012, and was in the process of negotiating the sales of Foley, its mechanical and prime contractor on industrial projects, and Aevenia, Inc. (Aevenia), its electrical design and construction services company, on December 31, 2014, which resulted in the removal of its Construction segment from continuing operations. The sale of substantially all of Shrco’s assets closed on February 8, 2013. On November 30, 2012 the Company completed the sale of the fixed assets of IMD, eliminating its Wind Energy segment. On February 29, 2012 the Company completed the sale of DMS Health Technologies, Inc. (DMS), its health services company, eliminating its Health Services segment. On January 18, 2012 the Company sold the assets of Aviva Sports, Inc. (Aviva), a wholly owned subsidiary of Shrco that sold various recreational products. | |||||||||||||
The results of operations of Shrco including Aviva, IMD, DMS, Wylie, Foley and Aevenia are reported as discontinued operations in the Company’s consolidated financial statements as of and for the years ended December 31, 2014, 2013 and 2012, and are summarized in note 16 to consolidated financial statements. | |||||||||||||
Segment Information | |||||||||||||
The accounting policies of the segments are described under note 1 – Summary of Significant Accounting Policies. The Company’s business structure currently includes the following three segments: Electric, Manufacturing and Plastics. The chart below indicates the companies included in each segment. | |||||||||||||
Electric includes the production, transmission, distribution and sale of electric energy in Minnesota, North Dakota and South Dakota by OTP. In addition, OTP is an active wholesale participant in the Midcontinent Independent System Operator, Inc. (MISO) markets. OTP’s operations have been the Company’s primary business since 1907. Prior to 2013, the Electric segment included OTESCO, which provided technical and engineering services. OTESCO ceased operations and did not record any operating revenues, expenses or net income in 2013 or 2014. | |||||||||||||
Manufacturing consists of businesses in the following manufacturing activities: contract machining, metal parts stamping and fabrication, and production of material and handling trays, horticultural containers and produce packaging. These businesses have manufacturing facilities in Illinois and Minnesota and sell products primarily in the United States. | |||||||||||||
Plastics consists of businesses producing polyvinyl chloride (PVC) pipe at plants in North Dakota and Arizona. The PVC pipe is sold primarily in the upper Midwest and Southwest regions of the United States. | |||||||||||||
OTP is a wholly owned subsidiary of the Company. All of the Company’s other businesses are owned by its wholly owned subsidiary, Varistar Corporation (Varistar). The Company’s corporate operating costs include items such as corporate staff and overhead costs, the results of the Company’s captive insurance company and other items excluded from the measurement of operating segment performance. Corporate assets consist primarily of cash, prepaid expenses, investments and fixed assets. Corporate is not an operating segment. Rather, it is added to operating segment totals to reconcile to totals on the Company’s consolidated financial statements. | |||||||||||||
No single customer accounted for over 10% of the Company’s consolidated revenues in 2014, 2013 or 2012. All of the Company’s long-lived assets are within the United States. | |||||||||||||
Percent of Sales Revenue by Country for the Year Ended December 31: | 2014 | 2013 | 2012 | ||||||||||
United States of America | 95.9 | % | 97.2 | % | 97.3 | % | |||||||
Mexico | 3 | % | 1.7 | % | 1.3 | % | |||||||
Canada | 0.9 | % | 1 | % | 1.4 | % | |||||||
All Other Countries (none greater than 0.05%) | 0.2 | % | 0.1 | % | 0 | % | |||||||
The Company evaluates the performance of its business segments and allocates resources to them based on earnings contribution and return on total invested capital. Information on continuing operations for the business segments for 2014, 2013 and 2012 is presented in the following table: | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Operating Revenue | |||||||||||||
Electric | $ | 407,743 | $ | 373,540 | $ | 350,765 | |||||||
Manufacturing | 219,583 | 204,997 | 208,965 | ||||||||||
Plastics | 172,050 | 164,957 | 150,517 | ||||||||||
Intersegment Eliminations | (114 | ) | (80 | ) | (82 | ) | |||||||
Total | $ | 799,262 | $ | 743,414 | $ | 710,165 | |||||||
Cost of Products Sold | |||||||||||||
Manufacturing | $ | 169,033 | $ | 154,235 | $ | 157,437 | |||||||
Plastics | 139,081 | 129,042 | 112,662 | ||||||||||
Intersegment Eliminations | (45 | ) | (10 | ) | (54 | ) | |||||||
Total | $ | 308,069 | $ | 283,267 | $ | 270,045 | |||||||
Other Nonelectric Expenses | |||||||||||||
Manufacturing | $ | 23,340 | $ | 18,820 | $ | 18,233 | |||||||
Plastics | 9,292 | 8,571 | 8,784 | ||||||||||
Corporate | 13,418 | 12,753 | 13,284 | ||||||||||
Intersegment Eliminations | (69 | ) | (70 | ) | (28 | ) | |||||||
Total | $ | 45,981 | $ | 40,074 | $ | 40,273 | |||||||
Depreciation and Amortization | |||||||||||||
Electric | $ | 44,076 | $ | 43,125 | $ | 42,051 | |||||||
Manufacturing | 10,518 | 11,194 | 12,208 | ||||||||||
Plastics | 3,364 | 3,350 | 3,118 | ||||||||||
Corporate | 116 | 207 | 480 | ||||||||||
Total | $ | 58,074 | $ | 57,876 | $ | 57,857 | |||||||
Operating Income (Loss) | |||||||||||||
Electric | $ | 76,060 | $ | 62,455 | $ | 61,025 | |||||||
Manufacturing | 16,692 | 20,748 | 21,087 | ||||||||||
Plastics | 20,313 | 23,994 | 25,953 | ||||||||||
Corporate | (13,534 | ) | (12,960 | ) | (13,764 | ) | |||||||
Total | $ | 99,531 | $ | 94,237 | $ | 94,301 | |||||||
Interest Charges | |||||||||||||
Electric | $ | 23,322 | $ | 17,461 | $ | 19,049 | |||||||
Manufacturing | 3,243 | 3,255 | 3,557 | ||||||||||
Plastics | 1,043 | 1,001 | 2,519 | ||||||||||
Corporate and Intersegment Eliminations | 2,040 | 5,257 | 6,778 | ||||||||||
Total | $ | 29,648 | $ | 26,974 | $ | 31,903 | |||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Income Tax Expense (Benefit) – Continuing Operations | |||||||||||||
Electric | $ | 11,029 | $ | 9,278 | $ | 5,862 | |||||||
Manufacturing | 4,117 | 6,047 | 6,954 | ||||||||||
Plastics | 7,301 | 9,249 | 9,393 | ||||||||||
Corporate | (5,890 | ) | (12,058 | ) | (15,036 | ) | |||||||
Total | $ | 16,557 | $ | 12,516 | $ | 7,173 | |||||||
Earnings (Loss) Available for Common Shares | |||||||||||||
Electric | $ | 43,684 | $ | 38,236 | $ | 38,341 | |||||||
Manufacturing | 9,361 | 11,457 | 10,676 | ||||||||||
Plastics | 12,085 | 13,809 | 14,113 | ||||||||||
Corporate | (8,247 | ) | (15,420 | ) | (17,832 | ) | |||||||
Discontinued Operations | 840 | 2,270 | (51,307 | ) | |||||||||
Total | $ | 57,723 | $ | 50,352 | $ | (6,009 | ) | ||||||
Capital Expenditures | |||||||||||||
Electric | $ | 148,719 | $ | 149,467 | $ | 101,919 | |||||||
Manufacturing | 11,252 | 7,046 | 9,311 | ||||||||||
Plastics | 3,567 | 3,273 | 2,819 | ||||||||||
Corporate | 44 | 47 | 137 | ||||||||||
Total | $ | 163,582 | $ | 159,833 | $ | 114,186 | |||||||
Identifiable Assets | |||||||||||||
Electric | $ | 1,472,647 | $ | 1,290,416 | $ | 1,226,145 | |||||||
Manufacturing | 130,701 | 119,302 | 114,933 | ||||||||||
Plastics | 87,356 | 76,853 | 78,855 | ||||||||||
Corporate | 51,918 | 59,970 | 112,616 | ||||||||||
Assets of Discontinued Operations | 48,657 | 49,478 | 69,788 | ||||||||||
Total | $ | 1,791,279 | $ | 1,596,019 | $ | 1,602,337 |
Rate_and_Regulatory_Matters
Rate and Regulatory Matters | 12 Months Ended |
Dec. 31, 2014 | |
Rate and Regulatory Matters [Abstract] | |
Rate and Regulatory Matters | 3. Rate and Regulatory Matters |
Below are descriptions of OTP’s major capital expenditure projects that have had, or will have, a significant impact on OTP’s revenue requirements, rates and alternative revenue recovery mechanisms, followed by summaries of specific electric rate or rider proceedings with the Minnesota Public Utilities Commission (MPUC), the North Dakota Public Service Commission (NDPSC), the South Dakota Public Utilities Commission (SDPUC) and the FERC, impacting OTP’s revenues in 2014, 2013 or 2012. | |
Major Capital Expenditure Projects | |
The Big Stone South – Brookings Project—This is a planned 345 kiloVolt (kV) transmission line that will extend approximately 70 miles between a proposed substation near Big Stone City, South Dakota and the Brookings County Substation near Brookings, South Dakota. OTP and Xcel Energy jointly developed this project. MISO approved this project as an MVP under the MISO Open Access Transmission, Energy and Operating Reserve Markets Tariff (MISO Tariff) in December 2011. MVPs are designed to enable the region to comply with energy policy mandates and to address reliability and economic issues affecting multiple areas within the MISO region. The cost allocation is designed to ensure that the costs of transmission projects with regional benefits are properly assigned to those who benefit. A Notice of Intent to Construct Facilities (NICF) was filed with the SDPUC on February 29, 2012. The SDPUC approved the certification for the northern portion of the route on April 9, 2013 and granted approval of a route permit for the southern portion of the line on February 18, 2014. On August 1, 2014 OTP and Xcel Energy entered into agreements to construct the project. This line is expected to be in service in 2017. | |
The Big Stone South – Ellendale Project—This is a proposed 345 kV transmission line that will extend 160 to 170 miles between a proposed substation near Big Stone City, South Dakota and a proposed substation near Ellendale, North Dakota. OTP is jointly developing this project with Montana-Dakota Utilities Co., a Division of MDU Resources Group, Inc. (MDU). MISO approved this project as an MVP under the MISO Tariff in December 2011. OTP and MDU jointly filed an NICF with the SDPUC in March of 2012. On August 25, 2013 the NDPSC granted Certificates of Public Convenience and Necessity to OTP and MDU for ten miles of the proposed line to be built in North Dakota. On July 10, 2014 the NDPSC approved a Certificate of Corridor Compatibility and a route permit for the North Dakota section of the proposed line. On August 22, 2014 the SDPUC issued an order approving the route permit for the South Dakota section of the proposed line. If the proposed project receives all the necessary approvals, OTP anticipates the line will be completed in 2019. | |
Capacity Expansion 2020 (CapX2020) Transmission Line Projects—CapX2020 is a joint initiative of eleven investor-owned, cooperative, and municipal utilities in Minnesota and the surrounding region to upgrade and expand the electric transmission grid to ensure continued reliable and affordable service. The CapX2020 companies identified four major transmission projects for the region: (1) the Fargo–Monticello 345 kV Project (the Fargo Project), (2) the Brookings–Southeast Twin Cities 345 kV Project (the Brookings Project), (3) the Bemidji–Grand Rapids 230 kV Project (the Bemidji Project), and (4) the Twin Cities–LaCrosse 345 kV Project. OTP is an investor in the Fargo Project, the Brookings Project and the Bemidji Project. Recovery of OTP’s CapX2020 transmission investments is through the MISO Tariff (the Brookings Project as an MVP) and, currently, Minnesota, North Dakota and South Dakota Transmission Cost Recovery (TCR) Riders. | |
The Fargo Project—The Monticello to St. Cloud portion of the Fargo Project was placed into service on December 21, 2011. The St. Cloud to Alexandria portion of the Fargo Project was placed into service on April 23, 2014. Construction is underway for the remaining portion of the project, which is expected to be in service in 2015. | |
The Brookings Project—The MISO granted unconditional approval of the Brookings Project as an MVP under the MISO Tariff in December 2011. The first phase of the 250 mile Brookings Project was energized in March 2014. Additional segments of the line were energized in April 2014. The entire project is expected to be in service in 2015. | |
The Bemidji Project—The Bemidji-Grand Rapids transmission line was fully energized and put into service on September 17, 2012. | |
Big Stone Plant Air Quality Control System (AQCS)—The South Dakota Department of Environment and Natural Resources determined that the Big Stone Plant is subject to Best-Available Retrofit Technology (BART) requirements of the Clean Air Act, based on air dispersion modeling indicating that Big Stone Plant’s emissions reasonably contribute to visibility impairment in national parks and wilderness areas in Minnesota, North Dakota, South Dakota and Michigan. | |
OTP is currently in the process of constructing the BART-compliant AQCS at Big Stone Plant for a current projected cost of approximately $384 million (OTP’s 53.9% share would be $207 million) with an expected commercial operation date of October 2015. OTP’s share of AQCS construction expenditures incurred through December 31, 2014 is $153 million, excluding Allowance for Funds Used During Construction (AFUDC). | |
Big Stone II Project—On June 30, 2005 OTP and a coalition of six other electric providers entered into several agreements for the development of a second electric generating unit, named Big Stone II, at the site of the existing Big Stone Plant near Milbank, South Dakota. On September 11, 2009 OTP announced its withdrawal—both as a participating utility and as the project’s lead developer—from Big Stone II. On November 2, 2009, the remaining Big Stone II participants announced the cancellation of the Big Stone II project. OTP requested jurisdictional recovery in Minnesota, North Dakota and South Dakota of amounts it had invested in the Big Stone II project at the time of its withdrawal, discussed below under the respective jurisdictional sections of this report. | |
Minnesota | |
2010 General Rate Case— OTP’s most recent general rate increase in Minnesota of approximately $5.0 million, or 1.6%, was granted by the MPUC in an order issued on April 25, 2011 and effective October 1, 2011. The MPUC’s written order included: (1) recovery of Big Stone II costs over five years, (2) moving recovery of wind farm assets from rider recovery to base rate recovery, (3) transfer of a portion of Minnesota Conservation Improvement Program (MNCIP) costs from rider recovery to base rate recovery, (4) transfer of the investment in two transmission lines from rider recovery to base rate recovery, and (5) changing the mechanism for providing customers with a credit for margins earned on asset-based wholesale sales of electricity from a credit to base rates to a credit to the Minnesota Fuel Clause Adjustment. Pursuant to the order, OTP’s allowed rate of return on rate base increased from 8.33% to 8.61% and its allowed rate of return on equity increased from 10.43% to 10.74%. | |
Renewable Energy Standards, Conservation, Renewable Resource Riders— Minnesota has a renewable energy standard which requires OTP to generate or procure sufficient renewable generation such that the following percentages of total retail electric sales to Minnesota customers come from qualifying renewable sources: 17% by 2016; 20% by 2020 and 25% by 2025. In addition, Minnesota law requires 1.5% of total Minnesota electric sales by public utilities to be supplied by solar energy by 2020. OTP is currently evaluating potential options for meeting that standard. Under certain circumstances and after consideration of costs and reliability issues, the MPUC may modify or delay implementation of the standards. OTP has acquired sufficient renewable resources to comply with Minnesota renewable energy standards. OTP’s compliance with the Minnesota renewable energy standard will be measured through the Midwest Renewable Energy Tracking System. | |
Under the Next Generation Energy Act of 2007, an automatic adjustment mechanism was established to allow Minnesota electric utilities to recover investments and costs incurred to satisfy the requirements of the renewable energy standard. The MPUC is authorized to approve a rate schedule rider to enable utilities to recover the costs of qualifying renewable energy projects that supply renewable energy to Minnesota customers. Cost recovery for qualifying renewable energy projects can be authorized outside of a rate case proceeding, provided that such renewable projects have received previous MPUC approval. Renewable resource costs eligible for recovery may include return on investment, depreciation, operation and maintenance costs, taxes, renewable energy delivery costs and other related expenses. | |
The costs for three major wind farms previously approved by the MPUC for recovery through OTP’s Minnesota Renewable Resource Adjustment (MNRRA) were moved to base rates as of October 1, 2011 under the MPUC’s April 25, 2011 general rate case order with the exception of the remaining balance of the MNRRA regulatory asset. OTP continued to collect the remaining regulatory asset balance through April 30, 2013, when the balance was near zero. On April 4, 2013 the MPUC authorized that any remaining unrecovered balance be retained as a regulatory asset to be recovered in OTP’s next general rate case. Effective May 1, 2013 the resource adjustment on OTP’s Minnesota customers’ bills no longer includes MNRRA costs. | |
Minnesota Conservation Improvement Programs—Under Minnesota law, every regulated public utility that furnishes electric service must make annual investments and expenditures in energy conservation improvements, or make a contribution to the state’s energy and conservation account, in an amount equal to at least 1.5% of its gross operating revenues from service provided in Minnesota. | |
The Minnesota Department of Commerce (MNDOC) may require a utility to make investments and expenditures in energy conservation improvements whenever it finds that the improvement will result in energy savings at a total cost to the utility less than the cost to the utility to produce or purchase an equivalent amount of a new supply of energy. Such MNDOC orders can be appealed to the MPUC. Investments made pursuant to such orders generally are recoverable costs in rate cases, even though ownership of the improvement may belong to the property owner rather than the utility. OTP recovers conservation related costs not included in base rates under the MNCIP through the use of an annual recovery mechanism approved by the MPUC. | |
On January 11, 2012 the MPUC approved the recovery of $3.5 million for 2010 MNCIP financial incentives. Beginning in January 2012, OTP’s MNCIP Conservation Cost Recovery Adjustment increased from 3.0% to 3.8% for all Minnesota retail electric customers. On March 30, 2012 OTP recognized an additional $0.4 million of incentive related to 2011 and submitted its annual 2011 financial incentive filing request for $2.6 million. In December 2012, the MPUC approved the recovery of $2.6 million in financial incentives for 2011 and also ordered a change in the MNCIP cost recovery methodology used by OTP from a percentage of a customer’s bill to an amount per kwh consumed. On January 1, 2013 OTP’s MNCIP surcharge decreased from 3.8% of the customer’s bill to $0.00142 per kwh, which equates to approximately 1.9% of a customer’s bill. OTP recognized $2.6 million of MNCIP financial incentives in 2012 and an additional $0.1 million in 2013 relating to 2012 program results. On October 10, 2013 the MPUC approved OTP’s 2012 financial incentive request for $2.7 million as well as its request for an updated surcharge rate to be implemented on November 1, 2013. OTP recognized $3.9 million in MNCIP financial incentives in 2013 related to the results of its conservation improvement programs in Minnesota in 2013. On April 1, 2014 OTP submitted its annual 2013 financial incentive filing request for $4.0 million along with a request for an updated surcharge rate. On September 26, 2014 the MPUC approved OTP’s 2013 financial incentive request for $4.0 million, an updated surcharge rate to be effective October 1, 2014, as well as a change to the carrying charge to be equal to the short term cost of debt set in OTP’s most recent general rate case. Based on preliminary results from the 2014 MNCIP program year, OTP is estimating a financial incentive for 2014 of $2.5 million. OTP is estimating a lower incentive for 2014 in response to the MPUC lowering the MNCIP financial incentive from approximately $0.09 per kwh saved for 2013-2015 to $0.07 per kwh saved for 2014-2016. Also, OTP estimates it saved approximately 3 million less kwhs in 2014 compared with 2013. OTP will request approval from the MPUC in an April 1, 2015 filing. | |
OTP had a regulatory asset of $8.2 million for allowable costs and financial incentives eligible for recovery through the MNCIP rider that had not been billed to Minnesota customers as of December 31, 2014. OTP’s Minnesota conservation recoverable costs and incentives totaled $7.8 million in 2014, $9.3 million in 2013 and $7.8 million in 2012. | |
Transmission Cost Recovery (TCR) Rider—In addition to the MNRRA rider, the Minnesota Public Utilities Act (the Act) provides a similar mechanism for automatic adjustment outside of a general rate proceeding to recover the costs of new transmission facilities that have been previously approved by the MPUC in a Certificate of Need (CON) proceeding, certified by the MPUC as a Minnesota priority transmission project, made to transmit the electricity generated from renewable generation sources ultimately used to provide service to the utility’s retail customers, or exempt from the requirement to obtain a Minnesota CON. The MPUC may also authorize cost recovery via such TCR riders for charges incurred by a utility under a federally approved tariff that accrue from other transmission owners’ regionally planned transmission projects that have been determined by the MISO to benefit the utility or integrated transmission system. The Act also authorizes TCR riders to recover the costs of new transmission facilities approved by the regulatory commission of the state in which the new transmission facilities are to be constructed, to the extent approval is required by the laws of that state, and determined by the MISO to benefit the utility or integrated transmission system. Such TCR riders allow a return on investment at the level approved in a utility’s last general rate case. Additionally, following approval of the rate schedule, the MPUC may approve annual rate adjustments filed pursuant to the rate schedule. OTP’s initial request for approval of a TCR rider was granted by the MPUC on January 7, 2010, and became effective February 1, 2010. | |
MISO regional cost allocation allows OTP to recover some of the costs of its transmission investment from other MISO customers. On March 26, 2012 the MPUC approved an update to OTP’s Minnesota TCR rider along with an all-in method for MISO regional cost allocations in which OTP’s retail customers would be responsible for the entire investment OTP made in transmission facilities that qualify for regional cost allocation under the MISO Tariff, with an offsetting credit for revenues received from other MISO utilities under the MISO Tariff for projects included in the TCR. OTP’s updated Minnesota TCR rider went into effect April 1, 2012. | |
On May 24, 2012 OTP filed a petition with the MPUC to seek a determination of eligibility for the inclusion of twelve additional transmission related projects in subsequent Minnesota TCR rider filings. On February 20, 2013 the MPUC approved three of the additional projects as eligible for recovery through the TCR rider. OTP filed its annual update to the TCR rider on February 7, 2013 to include the three new projects as well as updated costs associated with existing projects. In a written order issued on March 10, 2014, the MPUC approved OTP’s 2013 TCR rider update but disallowed recovery of capitalized internal costs, costs in excess of CON estimates and a carrying charge in the TCR rider. These items were removed from OTP’s Minnesota TCR rider effective March 1, 2014. OTP will be allowed to seek recovery of these costs in a future rate case. In response to the MPUC approval of OTP’s annual TCR update, OTP submitted a compliance filing in April 2014 reflecting the TCR rider revenue requirements changes relating to the MPUC’s ruling and requesting no rate change be implemented at the time. The MPUC approved OTP’s compliance filing on June 19, 2014. OTP filed its 2014 annual update on May 1, 2014. The MNDOC recommended approval of the 2014 update on September 24, 2014. On February 18, 2015 the MPUC approved OTP’s 2014 TCR rider annual update with an effective date of March 1, 2015. | |
OTP had a regulatory asset of $3.4 million for amounts eligible for recovery through the Minnesota TCR rider that had not been billed to Minnesota customers as of December 31, 2014. OTP recognized revenue for amounts eligible for recovery through the Minnesota TCR rider of $6.3 million in 2014, $2.9 million in 2013 and $2.4 million in 2012. | |
Environmental Cost Recovery (ECR) Rider—In a written order issued on January 23, 2012 the MPUC granted OTP’s petition for Advance Determination of Prudence (ADP) for costs associated with the design, construction and operation of the BART-compliant AQCS at Big Stone Plant attributable to serving OTP’s Minnesota customers. On May 24, 2013 legislation was enacted in Minnesota which allowed OTP to file an emission-reduction rider for recovery of the revenue requirements of the AQCS. The legislation authorizes the rider to allow a current return on investment, including Construction Work in Progress (CWIP), at the level approved in OTP’s most recent general rate case, unless a different return is determined by the MPUC to be in the public interest. On December 18, 2013 the MPUC granted approval of OTP’s Minnesota ECR rider for recovery of OTP’s Minnesota jurisdictional share of the revenue requirements of its investment in the Big Stone Plant AQCS effective January 1, 2014. The ECR rider recoverable revenue requirements include a current return on the project’s CWIP balance at the level approved in OTP’s most recent general rate case. OTP filed its 2014 annual update on July 31, 2014, requesting a $4.1 million annual increase in the rider from $6.1 million to $10.2 million. The MPUC approved OTP’s ECR rider annual update request on November 24, 2014, effective December 1, 2014. Because the effective date was two months behind the anticipated implementation date for the updated rate and a portion of the requested increase had been collected under the initial rate, the approved updated rate is based on a revenue requirement of $9.8 million. The rate will continue to be updated in annual filings with the MPUC until the costs are rolled into base rates at an undetermined future date. | |
OTP had a regulatory asset of $0.2 million for amounts eligible for recovery through the Minnesota ECR rider that had not been billed to Minnesota customers as of December 31, 2014. OTP recognized revenue for amounts eligible for recovery through the Minnesota ECR rider in 2014 of $6.9 million. | |
Big Stone II Project Cost Recovery—OTP requested recovery of the Minnesota portion of its Big Stone II development costs over a five-year period as part of its general rate case filed in Minnesota on April 2, 2010. In a written order issued on April 25, 2011, the MPUC authorized recovery of the Minnesota portion of Big Stone II generation development costs from Minnesota ratepayers over a 60-month recovery period which began on October 1, 2011. The amount of Big Stone II generation costs incurred by OTP that were deemed recoverable from Minnesota ratepayers as part of the rates established in that proceeding was $3.2 million. Because OTP was not allowed to earn a return on these deferred costs over the 60-month recovery period, the recoverable amount of $3.2 million was discounted to its present value of $2.8 million using OTP’s incremental borrowing rate, in accordance with ASC Topic 980, Regulated Operations (ASC 980) accounting requirements. Transmission-related project costs of $3.2 million remained in CWIP as active project costs at the time of the order. | |
Approximately $0.4 million of the total Minnesota jurisdictional share of Big Stone II transmission costs were transferred to the Big Stone South - Brookings MVP transmission line project in the first quarter of 2013. The remaining transmission costs, along with accumulated AFUDC, were transferred from CWIP to a regulatory asset account in May 2013, based on recovery granted in the April 25, 2011 order. Because OTP was not allowed to earn a return on these deferred costs over their anticipated recovery period, the recoverable amount of approximately $3.5 million was discounted to its present value using OTP’s incremental borrowing rate. In May 2013, OTP recorded a charge of $0.7 million related to the discount in accordance with ASC 980 accounting requirements. In June 2014, OTP recorded an additional discount of $0.3 million to reflect changes in the end date of the anticipated recovery period from September 2020 to December 2022. | |
North Dakota | |
General Rates—OTP’s most recent general rate increase in North Dakota of $3.6 million, or approximately 3.0%, was granted by the NDPSC in an order issued on November 25, 2009 and effective December 2009. | |
Renewable Resource Adjustment—OTP has a North Dakota Renewable Resource Adjustment (NDRRA) which enables OTP to recover the North Dakota share of its investments in renewable energy facilities it owns in North Dakota. This rider allows OTP to recover costs associated with new renewable energy projects as they are completed. On March 21, 2012 the NDPSC approved an update to OTP’s NDRRA effective April 1, 2012. The updated NDRRA recovered $9.9 million over the period April 1, 2012 through March 31, 2013. On December 28, 2012 OTP submitted its annual update to the NDRRA with a proposed effective date of April 1, 2013. The update resulted in a rate reduction, so the NDPSC did not issue an order suspending the rate change. Consequently, pursuant to statute, OTP was allowed to implement updated rates effective April 1, 2013. On July 10, 2013, the NDPSC approved the updated rates implemented on April 1, 2013. The NDPSC approved OTP’s most recent annual update to the NDRRA on March 12, 2014 with an effective date of April 1, 2014. The update approved on March 12, 2014 resulted in a 13.5% reduction in the NDRRA rate. On December 31, 2014 OTP submitted its annual update to the NDRRA with a proposed effective date of April 1, 2015. | |
OTP had a regulatory liability of $1.0 million as of December 31, 2014 for amounts billed to North Dakota customers that were subject to refund through the NDRRA rider. OTP recognized revenue for amounts eligible for recovery through the NDRRA rider of $7.5 million in 2014, $8.6 million in 2013 and $9.3 million in 2012. | |
Transmission Cost Recovery Rider—North Dakota law provides a mechanism for automatic adjustment outside of a general rate proceeding to recover jurisdictional capital and operating costs incurred by a public utility for new or modified electric transmission facilities. On April 29, 2011 OTP filed a request for an initial North Dakota TCR rider with the NDPSC, which was approved on April 25, 2012 and effective May 1, 2012. On August 31, 2012 OTP filed its annual update to the North Dakota TCR rider rate to reflect updated cost information associated with projects currently in the rider, as well as proposing to include costs associated with ten additional projects for recovery within the rider. The NDPSC approved the annual update on December 12, 2012 with an effective date of January 1, 2013. On August 30, 2013 OTP filed its annual update to its North Dakota TCR rider rate, which was approved on December 30, 2013 and became effective January 1, 2014. On August 29, 2014 OTP filed its annual update to the North Dakota TCR rider rate. Within this TCR filing, as required by the order for the North Dakota Big Stone II rider, OTP included the over-collection of North Dakota Big Stone II abandoned plant costs of $0.1 million. The NDPSC approved the annual update on December 17, 2014 with an effective date of January 1, 2015. | |
OTP had a regulatory asset of $0.9 million for amounts eligible for recovery through the North Dakota TCR rider that had not been billed to North Dakota customers as of December 31, 2014. OTP recognized revenue for amounts eligible for recovery through the North Dakota TCR rider of $5.8 million in 2014, $3.2 million in 2013 and $1.4 million in 2012. | |
Environmental Cost Recovery Rider—On May 9, 2012 the NDPSC approved OTP’s application for an ADP related to the Big Stone Plant AQCS. On February 8, 2013 OTP filed a request with the NDPSC for an ECR rider to recover OTP’s North Dakota jurisdictional share of the revenue requirements associated with its investment in the Big Stone Plant AQCS. On December 18, 2013 the NDPSC approved OTP’s North Dakota ECR rider based on revenue requirements through the 2013 calendar year and thereafter, with rates effective for bills rendered on or after January 1, 2014. On March 31, 2014 OTP filed its annual update to its North Dakota ECR rider rate. The update included a request to increase the ECR rider rate from 4.319% of base rates to 7.531% of base rates. On July 10, 2014 the NDPSC approved OTP’s 2014 ECR rider annual update request with an August 1, 2014 implementation date. | |
OTP had a regulatory asset of $0.7 million for amounts eligible for recovery through the North Dakota ECR rider that had not been billed to North Dakota customers as of December 31, 2014. OTP recognized revenue for amounts eligible for recovery through the North Dakota ECR rider of $5.9 million in 2014 and $2.3 million in 2013. | |
Big Stone II Project—In an order issued June 25, 2010, the NDPSC authorized recovery of Big Stone II development costs from North Dakota ratepayers, pursuant to a final settlement agreement filed June 23, 2010, between the NDPSC advocacy staff, OTP and the North Dakota Large Industrial Energy Group, Interveners. The terms of the settlement agreement indicate that OTP’s discontinuation of participation in the project was prudent and OTP should be authorized to recover the portion of costs it incurred related to the Big Stone II generation project. The total amount of Big Stone II generation costs incurred by OTP (which excluded $2.6 million of project transmission-related costs) was determined to be $10.1 million, of which $4.1 million represents North Dakota’s jurisdictional share. | |
OTP included in its total recovery amount a carrying charge of approximately $0.3 million on the North Dakota share of Big Stone II generation costs for the period from September 1, 2009 through the date the recovery of costs began based on OTP’s average 2009 AFUDC rate of 7.65%. Because OTP would not earn a return on these deferred costs over the 36-month recovery period, the recoverable amount of $4.3 million was discounted to its then present value of $3.9 million using OTP’s incremental borrowing rate, in accordance with ASC 980 accounting requirements. The North Dakota portion of Big Stone II generation costs was recovered over a 36-month period which began on August 1, 2010. | |
The North Dakota jurisdictional share of Big Stone II costs incurred by OTP related to transmission was $1.1 million. Approximately $0.3 million of the total North Dakota jurisdictional share of Big Stone II transmission costs were transferred to the Big Stone South - Brookings MVP during the first quarter of 2013. On July 30, 2013 the NDPSC approved OTP’s request to continue the Big Stone II cost recovery rates for an additional eight months through March 31, 2014 to recover the remaining North Dakota share of Big Stone II transmission-related costs plus accrued AFUDC totaling $1.0 million. As of April 1, 2014 North Dakota customer’s bills no longer include a charge for North Dakota share of Big Stone II costs. OTP had a regulatory liability of $0.1 million as of December 31, 2014 for amounts billed to North Dakota customers that will be refunded through the North Dakota TCR rider. | |
South Dakota | |
2010 General Rate Case—On April 21, 2011, the SDPUC issued a written order approving an overall revenue increase for OTP of approximately $643,000 (2.32%) and an overall rate of return on rate base of 8.50%. Final rates were effective with bills rendered on and after June 1, 2011. | |
Transmission Cost Recovery Rider—South Dakota law provides a mechanism for automatic adjustment outside of a general rate proceeding to recover jurisdictional capital and operating costs incurred by a public utility for new or modified electric transmission facilities. OTP submitted a request for an initial South Dakota TCR rider to the SDPUC on November 5, 2010. The South Dakota TCR was approved by the SDPUC and implemented on December 1, 2011. The SDPUC approved an annual update to OTP’s South Dakota TCR on April 23, 2013 with an effective date of May 1, 2013. The SDPUC approved OTP’s following annual update to its South Dakota TCR on February 18, 2014 with an effective date of March 1, 2014. OTP filed another annual update on October 31, 2014, which was approved by the SDPUC on February 13, 2015 with an effective date of March 1, 2015. | |
OTP had a regulatory liability of less than $0.1 million as of December 31, 2014 for amounts billed to South Dakota customers that were subject to refund through the South Dakota TCR rider. OTP recognized revenue for amounts eligible for recovery through the South Dakota TCR rider of $1.2 million in 2014, $0.8 million in 2013 and $0.4 million in 2012. | |
Environmental Cost Recovery Rider—On March 30, 2012 OTP requested approval from the SDPUC for an ECR rider to recover costs associated with the Big Stone Plant AQCS. On April 17, 2013 OTP filed a request to either suspend or withdraw this filing. The SDPUC approved withdrawing this filing on April 23, 2013. On August 29, 2014 OTP filed a new request with the SDPUC for an ECR rider to recover costs associated with new environmental measures including costs to comply with mercury and air toxics standards. On November 25, 2014 the SDPUC approved OTP’s ECR rider request to recover the costs of the Big Stone Plant AQCS and Hoot Lake Plant Mercury and Air Toxics Standards (MATS) projects, with an effective date of December 1, 2014. | |
OTP had a regulatory asset of less than $0.1 million for amounts eligible for recovery through the South Dakota ECR rider that had not been billed to South Dakota customers as of December 31, 2014. OTP recognized revenue for amounts eligible for recovery through the South Dakota ECR rider of $0.2 million in 2014. | |
Big Stone II Project—OTP requested recovery of the South Dakota portion of its Big Stone II development costs over a five-year period as part of its general rate case filed in South Dakota on August 20, 2010. In the first quarter of 2011, the SDPUC approved recovery of the South Dakota portion of Big Stone II generation development costs totaling approximately $1.0 million from South Dakota ratepayers over a ten-year period beginning in February 2011 with the implementation of interim rates. OTP is allowed to earn a return on the amount subject to recovery over the ten-year recovery period. Therefore, the South Dakota settlement amount is not discounted. OTP transferred the South Dakota portion of the remaining Big Stone II transmission costs to CWIP, with such costs subject to AFUDC and recovery in future FERC-approved MISO rates or retail rates. On July 31, 2012 the SDPUC approved the transfer of the Big Stone II transmission route permits to OTP. | |
A portion of the Big Stone II transmission costs were transferred out of CWIP in February 2013 to be included within the Big Stone South - Brookings MVP. On March 28, 2013 OTP filed a petition with the SDPUC requesting deferred accounting for the remaining unrecovered Big Stone II transmission costs until OTP’s next South Dakota general rate case. The petition was approved by the SDPUC on April 23, 2013 and in May 2013 OTP transferred the remaining South Dakota jurisdictional portion of unrecovered Big Stone II transmission costs plus accumulated AFUDC totaling $0.2 million from CWIP to the Big Stone II Unrecovered Project Costs – South Dakota regulatory asset accounts. | |
FERC | |
Wholesale power sales and transmission rates are subject to the jurisdiction of the FERC under the Federal Power Act of 1935, as amended. The FERC is an independent agency with jurisdiction over rates for wholesale electricity sales, transmission and sale of electric energy in interstate commerce, interconnection of facilities, and accounting policies and practices. Filed rates are effective after a one day suspension period, subject to ultimate approval by the FERC. | |
Effective January 1, 2010 the FERC authorized OTP’s implementation of a forward looking formula transmission rate under the MISO Tariff. OTP was also authorized by the FERC to recover in its formula rate (1) 100% of prudently incurred CWIP in rate base and (2) 100% of prudently incurred costs of transmission facilities that are cancelled or abandoned for reasons beyond OTP’s control (Abandoned Plant Recovery), as determined by the FERC subsequent to abandonment, specifically for three regional transmission CapX2020 projects in which OTP is a joint owner: the Fargo Project, the Bemidji Project and the Brookings Project. | |
Effective January 1, 2012, the FERC authorized OTP to recover 100% of prudently incurred CWIP and Abandoned Plant Recovery on two projects approved by MISO as MVPs in MISO’s 2011 Transmission Expansion Plan: the Big Stone South – Brookings MVP and the Big Stone South – Ellendale MVP. | |
Multi-Value Transmission Projects—On December 16, 2010 the FERC approved the cost allocation for a new classification of projects in the MISO region called MVPs. MVPs are designed to enable the region to comply with energy policy mandates and to address reliability and economic issues affecting multiple transmission zones within the MISO region. The cost allocation is designed to ensure that the costs of transmission projects with regional benefits are properly assigned to those who benefit. On October 20, 2011 the FERC reaffirmed the MVP cost allocation on rehearing. On June 7, 2013, in response to a challenge to the MVP cost allocation heard before the United States Court of Appeals, Seventh Circuit, the Court ruled in favor of MISO and MISO transmission owners, issuing an order affirming the FERC’s approval of the MVP cost allocation. On February 24, 2014 the U.S. Supreme Court denied petitions for a writ of certiorari of the Seventh Circuit’s decision upholding the FERC’s MVP orders. The petitioners did not seek rehearing. | |
On November 12, 2013 a group of industrial customers and other stakeholders filed a complaint with the FERC seeking to reduce the return on equity component of the transmission rates that MISO transmission owners, including OTP, may collect under the MISO Tariff. The complainants are seeking to reduce the current 12.38% return on equity used in MISO’s transmission rates to a proposed 9.15%. A group of MISO transmission owners have filed responses to the complaint, defending the current return on equity and seeking dismissal of the complaint. On October 16, 2014 the FERC issued an order finding that the current MISO return on equity may be unjust and unreasonable and setting the issue for hearing, subject to the outcome of settlement discussion. Settlement discussions did not resolve the dispute and the FERC set the proceeding to a Track II Hearing for complex cases that can take several months to decide, with a FERC decision anticipated in fall 2016 at the earliest. On November 6, 2014 a group of MISO transmission owners, including OTP, filed for a FERC incentive of an additional 50-basis points for Regional Transmission Organization (RTO) participation (RTO Adder). On January 5, 2015 the FERC granted the request, deferring collection of the RTO Adder until the resolution of the return on equity complaint proceeding. |
Regulatory_Assets_and_Liabilit
Regulatory Assets and Liabilities | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Regulatory Assets and Liabilities Disclosure [Abstract] | ||||||||||||||
Regulatory Assets and Liabilities | 4. Regulatory Assets and Liabilities | |||||||||||||
As a regulated entity, OTP accounts for the financial effects of regulation in accordance with ASC 980. This accounting standard allows for the recording of a regulatory asset or liability for costs that will be collected or refunded in the future as required under regulation. Additionally, ASC 980-605-25 provides for the recognition of revenues authorized for recovery outside of a general rate case under alternative revenue programs which provide for recovery of costs and incentives or returns on investment in such items as transmission infrastructure, renewable energy resources or conservation initiatives. The following tables indicate the amount of regulatory assets and liabilities recorded on the Company’s consolidated balance sheets: | ||||||||||||||
31-Dec-14 | Remaining | |||||||||||||
Recovery/ | ||||||||||||||
(in thousands) | Current | Long-Term | Total | Refund Period | ||||||||||
Regulatory Assets: | ||||||||||||||
Prior Service Costs and Actuarial Losses on Pensions and Other Postretirement Benefits1 | $ | 7,464 | $ | 101,526 | $ | 108,990 | see note | |||||||
Deferred Marked-to-Market Losses1 | 4,492 | 9,396 | 13,888 | 72 months | ||||||||||
Conservation Improvement Program Costs and Incentives2 | 5,843 | 2,500 | 8,343 | 18 months | ||||||||||
Accumulated ARO Accretion/Depreciation Adjustment1 | -- | 5,190 | 5,190 | asset lives | ||||||||||
Big Stone II Unrecovered Project Costs – Minnesota1 | 592 | 3,207 | 3,799 | 96 months | ||||||||||
Minnesota Transmission Rider Accrued Revenues2 | 943 | 2,455 | 3,398 | 24 months | ||||||||||
MISO Schedule 26/26A Transmission Cost Recovery Rider True-up1 | 2,585 | 807 | 3,392 | 24 months | ||||||||||
Debt Reacquisition Premiums1 | 351 | 1,890 | 2,241 | 213 months | ||||||||||
Deferred Income Taxes1 | -- | 2,086 | 2,086 | asset lives | ||||||||||
Recoverable Fuel and Purchased Power Costs1 | 1,114 | -- | 1,114 | 12 months | ||||||||||
North Dakota Transmission Rider Accrued Revenues2 | 859 | -- | 859 | 12 months | ||||||||||
Big Stone II Unrecovered Project Costs – South Dakota2 | 100 | 743 | 843 | 101 months | ||||||||||
North Dakota Environmental Cost Recovery Rider Accrued Revenues2 | 706 | -- | 706 | 12 months | ||||||||||
Minnesota Environmental Cost Recovery Rider Accrued Revenues2 | 186 | -- | 186 | 12 months | ||||||||||
Minnesota Renewable Resource Rider Accrued Revenues2 | -- | 68 | 68 | see note | ||||||||||
South Dakota Environmental Cost Recovery Rider Accrued Revenues2 | 38 | -- | 38 | 12 months | ||||||||||
Total Regulatory Assets | $ | 25,273 | $ | 129,868 | $ | 155,141 | ||||||||
Regulatory Liabilities: | ||||||||||||||
Accumulated Reserve for Estimated Removal Costs – Net of Salvage | $ | -- | $ | 74,237 | $ | 74,237 | asset lives | |||||||
Deferred Income Taxes | -- | 1,550 | 1,550 | asset lives | ||||||||||
North Dakota Renewable Resource Rider Accrued Refund | 933 | 85 | 1,018 | 15 months | ||||||||||
Revenue for Rate Case Expenses Subject to Refund – Minnesota | -- | 784 | 784 | see note | ||||||||||
Deferred Marked-to-Market Gains | -- | 257 | 257 | 67 months | ||||||||||
Big Stone II Over Recovered Project Costs – North Dakota | 147 | -- | 147 | 12 months | ||||||||||
Deferred Gain on Sale of Utility Property – Minnesota Portion | 6 | 100 | 106 | 228 months | ||||||||||
South Dakota Transmission Rider Accrued Refund | 48 | -- | 48 | 12 months | ||||||||||
South Dakota – Nonasset-Based Margin Sharing Excess | 24 | -- | 24 | 12 months | ||||||||||
Total Regulatory Liabilities | $ | 1,158 | $ | 77,013 | $ | 78,171 | ||||||||
Net Regulatory Asset Position | $ | 24,115 | $ | 52,855 | $ | 76,970 | ||||||||
1Costs subject to recovery without a rate of return. | ||||||||||||||
2Amount eligible for recovery under an alternative revenue program which includes an incentive or rate of return. | ||||||||||||||
31-Dec-13 | Remaining | |||||||||||||
Recovery/ | ||||||||||||||
(in thousands) | Current | Long-Term | Total | Refund Period | ||||||||||
Regulatory Assets: | ||||||||||||||
Prior Service Costs and Actuarial Losses on Pensions and Other Postretirement Benefits1 | $ | 4,095 | $ | 55,012 | $ | 59,107 | see note | |||||||
Deferred Marked-to-Market Losses1 | 3,008 | 8,674 | 11,682 | 60 months | ||||||||||
Conservation Improvement Program Costs and Incentives2 | 4,945 | 3,959 | 8,904 | 18 months | ||||||||||
Accumulated ARO Accretion/Depreciation Adjustment1 | -- | 4,646 | 4,646 | asset lives | ||||||||||
Big Stone II Unrecovered Project Costs – Minnesota1 | 558 | 3,967 | 4,525 | 81 months | ||||||||||
MISO Schedule 26/26A Transmission Cost Recovery Rider True-up1 | 1,351 | 1,753 | 3,104 | 24 months | ||||||||||
Debt Reacquisition Premiums1 | 351 | 2,241 | 2,592 | 225 months | ||||||||||
North Dakota Environmental Cost Recovery Rider Accrued Revenues2 | 2,331 | -- | 2,331 | 12 months | ||||||||||
Deferred Income Taxes1 | -- | 1,805 | 1,805 | asset lives | ||||||||||
Big Stone II Unrecovered Project Costs – South Dakota2 | 101 | 843 | 944 | 113 months | ||||||||||
North Dakota Renewable Resource Rider Accrued Revenues2 | -- | 762 | 762 | 15 months | ||||||||||
Recoverable Fuel and Purchased Power Costs1 | 760 | -- | 760 | 12 months | ||||||||||
Big Stone II Unrecovered Project Costs – North Dakota1 | 375 | -- | 375 | 3 months | ||||||||||
Minnesota Renewable Resource Rider Accrued Revenues2 | -- | 68 | 68 | see note | ||||||||||
South Dakota Transmission Rider Accrued Revenues2 | 32 | -- | 32 | 12 months | ||||||||||
Deferred Holding Company Formation Costs1 | 27 | -- | 27 | 6 months | ||||||||||
General Rate Case Recoverable Expenses – South Dakota1 | 6 | -- | 6 | 1 month | ||||||||||
Total Regulatory Assets | $ | 17,940 | $ | 83,730 | $ | 101,670 | ||||||||
Regulatory Liabilities: | ||||||||||||||
Accumulated Reserve for Estimated Removal Costs – Net of Salvage | $ | -- | $ | 71,454 | $ | 71,454 | asset lives | |||||||
Deferred Income Taxes | -- | 1,960 | 1,960 | asset lives | ||||||||||
Minnesota Transmission Rider Accrued Refund | 670 | -- | 670 | 12 months | ||||||||||
Revenue for Rate Case Expenses Subject to Refund – Minnesota | -- | 289 | 289 | see note | ||||||||||
North Dakota Renewable Resource Rider Accrued Refund | 261 | -- | 261 | 12 months | ||||||||||
North Dakota Transmission Rider Accrued Refund | 215 | -- | 215 | 12 months | ||||||||||
Deferred Marked-to-Market Gains | 6 | 117 | 123 | 56 months | ||||||||||
Deferred Gain on Sale of Utility Property – Minnesota Portion | 5 | 106 | 111 | 240 months | ||||||||||
South Dakota – Nonasset-Based Margin Sharing Excess | 38 | -- | 38 | 12 months | ||||||||||
Total Regulatory Liabilities | $ | 1,195 | $ | 73,926 | $ | 75,121 | ||||||||
Net Regulatory Asset Position | $ | 16,745 | $ | 9,804 | $ | 26,549 | ||||||||
1Costs subject to recovery without a rate of return. | ||||||||||||||
2Amount eligible for recovery under an alternative revenue program which includes an incentive or rate of return. | ||||||||||||||
The regulatory asset related to prior service costs and actuarial losses on pensions and other postretirement benefits represents benefit costs and actuarial losses subject to recovery through rates as they are expensed over the remaining service lives of active employees included in the plans. These unrecognized benefit costs and actuarial losses are required to be recognized as components of Accumulated Other Comprehensive Income in equity under ASC Topic 715, Compensation—Retirement Benefits, but are eligible for treatment as regulatory assets based on their probable recovery in future retail electric rates. | ||||||||||||||
All Deferred Marked-to-Market Gains and Losses recorded as of December 31, 2014 are related to forward purchases of energy scheduled for delivery through December 2020. | ||||||||||||||
Conservation Improvement Program Costs and Incentives represent mandated conservation expenditures and incentives recoverable through retail electric rates. | ||||||||||||||
The Accumulated ARO Accretion/Depreciation Adjustment will accrete and be amortized over the lives of property with asset retirement obligations. | ||||||||||||||
Big Stone II Unrecovered Project Costs – Minnesota are the Minnesota share of generation and transmission plant-related costs incurred by OTP related to its participation in the abandoned Big Stone II generation project. | ||||||||||||||
Minnesota Transmission Rider Accrued Revenues relate to revenues earned on qualifying transmission system facilities that have not been billed to Minnesota customers as of December 31, 2014. | ||||||||||||||
MISO Schedule 26/26A Transmission Cost Recovery Rider True-up relates to the over/under collection of revenue based on comparison of the expected versus actual construction on eligible projects in the period. The true-up also includes the state jurisdictional portion of MISO Schedule 26/26A for regional transmission cost recovery that was included in the calculation of the state transmission riders and subsequently adjusted to reflect actual billing amounts in the schedule. | ||||||||||||||
Debt Reacquisition Premiums are being recovered from OTP customers over the remaining original lives of the reacquired debt issues, the longest of which is 213 months. | ||||||||||||||
The regulatory assets and liabilities related to Deferred Income Taxes result from changes in statutory tax rates accounted for in accordance with ASC Topic 740. | ||||||||||||||
North Dakota Transmission Rider Accrued Revenues relate to revenues earned on qualifying transmission system facilities that have not been billed to North Dakota customers as of December 31, 2014. | ||||||||||||||
Big Stone II Unrecovered Project Costs – South Dakota are the South Dakota share of generation and transmission plant-related costs incurred by OTP related to its participation in the abandoned Big Stone II generation project. | ||||||||||||||
North Dakota Environmental Cost Recovery Rider Accrued Revenues relate to a return granted on the North Dakota share of amounts invested in the construction of the Big Stone Plant AQCS project, net of amounts billed under the rider. | ||||||||||||||
Minnesota Environmental Cost Recovery Rider Accrued Revenues relate to a return granted on the Minnesota share of amounts invested in the construction of the Big Stone Plant AQCS project, net of amounts billed under the rider. | ||||||||||||||
Minnesota Renewable Resource Rider Accrued Revenues relate to revenues earned on qualifying renewable resource costs incurred to serve Minnesota customers that have not been billed to Minnesota customers. On April 4, 2013 the MPUC approved OTP’s request to set the MNRRA rate to zero effective May 1, 2013 and authorized that any unrecovered balance be retained as a regulatory asset to be recovered in OTP’s next general rate case. | ||||||||||||||
South Dakota Environmental Cost Recovery Rider Accrued Revenues relate to a return granted on the South Dakota share of amounts invested in the construction of the Big Stone Plant AQCS project and Hoot Lake Plant MATS project, net of amounts billed under the rider. | ||||||||||||||
The Accumulated Reserve for Estimated Removal Costs – Net of Salvage is reduced as actual removal costs, net of salvage revenues, are incurred. | ||||||||||||||
The North Dakota Renewable Resource Rider Accrued Refund relates to amounts collected for qualifying renewable resource costs incurred to serve North Dakota customers that are refundable to North Dakota customers as of December 31, 2014. | ||||||||||||||
Revenue for Rate Case Expenses Subject to Refund – Minnesota relate to revenues collected under general rates to recover costs related to prior rate case proceedings in excess of the actual costs incurred, which are subject to refund. | ||||||||||||||
Big Stone II Over Recovered Project Costs – North Dakota represent amounts collected from North Dakota customers in excess of the North Dakota share of generation and transmission plant-related costs incurred by OTP related to its participation in the abandoned Big Stone II generation project. The December 31, 2014 liability will be refunded to North Dakota customers through an adjustment to revenue requirements under the North Dakota TCR rider. | ||||||||||||||
South Dakota Transmission Rider Accrued Refund relates to amounts collected for qualifying transmission system facilities and operating costs incurred to serve South Dakota customers that are refundable to South Dakota customers as of December 31, 2014. | ||||||||||||||
South Dakota – Nonasset-Based Margin Sharing Excess represents 25% of OTP’s South Dakota share of actual profit margins on nonasset-based wholesale sales of electricity. The excess margins accumulated annually will be subject to refund through future retail rate adjustments in South Dakota in the following year. | ||||||||||||||
If for any reason, OTP ceases to meet the criteria for application of guidance under ASC 980 for all or part of its operations, the regulatory assets and liabilities that no longer meet such criteria would be removed from the consolidated balance sheet and included in the consolidated statement of income as an extraordinary expense or income item in the period in which the application of guidance under ASC 980 ceases. |
Forward_Contracts_Classified_a
Forward Contracts Classified as Derivatives | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||
Forward Contracts Classified as Derivatives | 5. Forward Contracts Classified as Derivatives | ||||||||||||
Electricity Contracts | |||||||||||||
All of OTP’s wholesale purchases and sales of energy under forward contracts that do not meet the definition of capacity contracts are considered derivatives subject to mark-to-market accounting. OTP’s objective in entering into forward contracts for the purchase and sale of energy is to meet the energy requirements of its retail customers and to optimize the use of its generating and transmission facilities. OTP’s intent in entering into certain of these contracts is to settle them through the physical delivery of energy when physically possible and economically feasible. Prior to December 2014, OTP also entered into certain contracts for trading purposes with the intent to profit from fluctuations in market prices through the timing of purchases and sales. Effective December 31, 2014 OTP discontinued its trading activities not directly associated with serving retail customers. | |||||||||||||
Market prices used to value OTP’s forward contracts for the purchases and sales of electricity are determined by survey of counterparties or brokers used by OTP’s power services’ personnel responsible for contract pricing, as well as prices gathered from daily settlement prices published by the Intercontinental Exchange and CME Globex. For certain contracts, prices at illiquid trading points are based on a basis spread between that trading point and more liquid trading hub prices. These basis spreads are determined based on available market price information and the use of forward price curve models. The fair value measurements of these forward energy contracts fall into Level 3 of the fair value hierarchy set forth in ASC 820. | |||||||||||||
Electric operating revenues include wholesale electric sales and net unrealized derivative gains on forward energy contracts, the acquisition and settlement of financial transmission rights and congestion revenue rights options in the MISO and Electric Reliability Council of Texas (ERCOT) markets and daily settlements of virtual transactions in the MISO, ERCOT and California Independent Transmission System Operator markets, broken down as follows for the years ended December 31: | |||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Wholesale Sales - Company-Owned Generation | $ | 11,160 | $ | 14,846 | $ | 12,951 | |||||||
Revenue from Settled Contracts at Market Prices | 131,952 | 133,238 | 160,987 | ||||||||||
Market Cost of Settled Contracts | (130,908 | ) | (132,055 | ) | (159,500 | ) | |||||||
Net Margins on Settled Contracts at Market | 1,044 | 1,183 | 1,487 | ||||||||||
Marked-to-Market Gains on Settled Contracts | 263 | 3,039 | 7,864 | ||||||||||
Marked-to-Market Losses on Settled Contracts | (276 | ) | (2,722 | ) | (7,974 | ) | |||||||
Net Marked-to-Market (Losses) Gains on Settled Contracts | (13 | ) | 317 | (110 | ) | ||||||||
Unrealized Marked-to-Market Gains on Open Contracts | -- | 215 | 284 | ||||||||||
Unrealized Marked-to-Market Losses on Open Contracts | (-- | ) | (100 | ) | (235 | ) | |||||||
Net Unrealized Marked-to-Market Gains on Open Contracts | -- | 115 | 49 | ||||||||||
Wholesale Electric Revenue | $ | 12,191 | $ | 16,461 | $ | 14,377 | |||||||
The following tables show the effect of marking to market forward contracts for the purchase and sale of electricity and the location and fair value amounts of the related derivatives reported on the Company’s consolidated balance sheets as of December 31, 2014 and December 31, 2013, and the change in the Company’s consolidated balance sheet position from December 31, 2013 to December 31, 2014 and December 31, 2012 to December 31, 2013: | |||||||||||||
(in thousands) | 31-Dec-14 | 31-Dec-13 | |||||||||||
Other Current Asset – Marked-to-Market Gain | $ | 257 | $ | 338 | |||||||||
Regulatory Asset – Current Deferred Marked-to-Market Loss | 4,492 | 3,008 | |||||||||||
Regulatory Asset – Long-Term Deferred Marked-to-Market Loss | 9,396 | 8,674 | |||||||||||
Total Assets | 14,145 | 12,020 | |||||||||||
Current Liability – Marked-to-Market Loss | (13,888 | ) | (11,782 | ) | |||||||||
Regulatory Liability – Current Deferred Marked-to-Market Gain | -- | (6 | ) | ||||||||||
Regulatory Liability – Long-Term Deferred Marked-to-Market Gain | (257 | ) | (117 | ) | |||||||||
Total Liabilities | (14,145 | ) | (11,905 | ) | |||||||||
Net Fair Value of Marked-to-Market Energy Contracts | $ | -- | $ | 115 | |||||||||
(in thousands) | Year ended | Year ended | |||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||
Cumulative Fair Value Adjustments Included in Earnings - Beginning of Period | $ | 115 | $ | 49 | |||||||||
Less: Amounts Realized on Settlement of Contracts Entered into in Prior Periods | (72 | ) | (49 | ) | |||||||||
Changes in Fair Value of Contracts Entered into in Prior Periods | (43 | ) | -- | ||||||||||
Cumulative Fair Value Adjustments in Earnings of Contracts Entered into in Prior Years at End of Period | -- | -- | |||||||||||
Changes in Fair Value of Contracts Entered into in Current Period | -- | 115 | |||||||||||
Cumulative Fair Value Adjustments Included in Earnings - End of Period | $ | -- | $ | 115 | |||||||||
OTP has established guidelines and limits to manage credit risk associated with wholesale power and capacity purchases and sales. Specific limits are determined by a counterparty’s financial strength. Counterparties with investment grade credit ratings have minimum credit ratings of BBB- (Standard & Poor’s), Baa3 (Moody’s) or BBB- (Fitch). OTP had no exposure at December 31, 2014 to counterparties with investment grade or below investment grade credit ratings with respect to any of its forward energy contracts. | |||||||||||||
Individual counterparty exposures for certain contracts can be offset according to legally enforceable netting arrangements. However, the Company does not net offsetting payables and receivables or derivative assets and liabilities under legally enforceable netting arrangements on the face of its consolidated balance sheet. The amounts of derivative asset and derivative liability balances that were subject to legally enforceable netting arrangements as of December 31, 2014 and December 31, 2013 are indicated in the following table: | |||||||||||||
(in thousands) | 31-Dec-14 | 31-Dec-13 | |||||||||||
Derivative Assets Subject to Legally Enforceable Netting Arrangements | $ | 257 | $ | 400 | |||||||||
Derivative Liabilities Subject to Legally Enforceable Netting Arrangements | (14,230 | ) | (11,782 | ) | |||||||||
Net Balance Subject to Legally Enforceable Netting Arrangements | $ | (13,973 | ) | $ | (11,382 | ) | |||||||
The following table provides a breakdown of OTP’s credit risk standing on forward energy contracts in marked-to-market loss positions as of December 31, 2014 and December 31, 2013: | |||||||||||||
Current Liability – Marked-to-Market Loss (in thousands) | December 31, | December 31, | |||||||||||
2014 | 2013 | ||||||||||||
Loss Contracts Covered by Deposited Funds or Letters of Credit | $ | 45 | $ | -- | |||||||||
Contracts Requiring Cash Deposits if OTP’s Credit Falls Below Investment Grade1 | 13,888 | 11,679 | |||||||||||
Loss Contracts with No Ratings Triggers or Deposit Requirements | 297 | 103 | |||||||||||
Total Current Liability – Marked-to-Market Loss | $ | 14,230 | $ | 11,782 | |||||||||
1Certain OTP derivative energy contracts contain provisions that require an investment grade credit rating from each of the major credit rating agencies on OTP’s debt. If OTP’s debt ratings were to fall below investment grade, the counterparties to these forward energy contracts could request the immediate deposit of cash to cover contracts in net liability positions. | |||||||||||||
Contracts Requiring Cash Deposits if OTP’s Credit Falls Below Investment Grade | $ | 13,888 | $ | 11,679 | |||||||||
Offsetting Gains with Counterparties under Master Netting Agreements | (257 | ) | (117 | ) | |||||||||
Reporting Date Deposit Requirement if Credit Risk Feature Triggered | $ | 13,631 | $ | 11,562 |
Common_Shares_and_Earnings_Per
Common Shares and Earnings Per Share | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Stockholders Equity and Earnings Per Share [Abstract] | |||||
Common Shares and Earnings Per Share | 6. Common Shares and Earnings Per Share | ||||
Shelf Registration | |||||
On May 11, 2012 the Company filed a shelf registration statement with the U.S. Securities and Exchange Commission (SEC) under which it 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, including common shares of the Company. | |||||
Common Share Distribution Agreement | |||||
On May 14, 2012 the Company entered into a Distribution Agreement (the Agreement) with J.P. Morgan Securities (JPMS) under which the Company may offer and sell its common shares from time to time through JPMS, as the Company’s distribution agent for the offer and sale of the shares, up to an aggregate sales price of $75 million. | |||||
Under the Agreement, the Company will designate the minimum price and maximum number of shares to be sold through JPMS on any given trading day or over a specified period of trading days, and JPMS will use commercially reasonable efforts to sell such shares on such days, subject to certain conditions. Sales of the shares, if any, will be made by means of ordinary brokers’ transactions on the NASDAQ Global Select Market at market prices or as otherwise agreed with JPMS. The Company may also agree to sell shares to JPMS, as principal for its own account, on terms agreed by the Company and JPMS in a separate agreement at the time of sale. JPMS will receive from the Company a commission of 2% of the gross sales price per share for any shares sold through it as the Company’s distribution agent under the Agreement. | |||||
The Company is not obligated to sell and JPMS is not obligated to buy or sell any of the shares under the Agreement. The shares, if issued, will be issued pursuant to the Company’s existing shelf registration statement, as amended. In 2014, the Company began selling common shares using its At-the-Market offering program under the Agreement. | |||||
2014 Common Stock Activity | |||||
In 2014, in addition to selling common shares under the At-the-Market offering program, the Company also began issuing shares to meet the requirements of its Automatic Dividend Reinvestment and Share Purchase Plan, Employee Stock Purchase Plan and Employee Stock Ownership Plan, rather than purchasing shares in the open market. Following is a reconciliation of the Company’s common shares outstanding from December 31, 2013 through December 31, 2014: | |||||
Common Shares Outstanding, December 31, 2013 | 36,271,696 | ||||
Issuances: | |||||
At-the-Market Offering | 519,636 | ||||
Automatic Dividend Reinvestment and Share Purchase Plan: | |||||
Dividends Reinvested | 180,818 | ||||
Cash Invested | 81,533 | ||||
Employee Stock Purchase Plan: | |||||
Cash Invested | 39,222 | ||||
Dividends Reinvested | 25,694 | ||||
Restricted Stock Issued to Employees | 26,700 | ||||
Employee Stock Ownership Plan | 22,650 | ||||
Executive Stock Performance Awards (2011-2013 shares earned) | 22,630 | ||||
Stock Options Exercised | 20,800 | ||||
Restricted Stock Issued to Directors | 16,800 | ||||
Vesting of Restricted Stock Units | 14,305 | ||||
Directors Deferred Compensation | 498 | ||||
Retirements: | |||||
Shares Withheld for Individual Income Tax Requirements | (20,554 | ) | |||
Forfeiture of Unvested Restricted Stock | (4,375 | ) | |||
Common Shares Outstanding, December 31, 2014 | 37,218,053 | ||||
2014 Stock Incentive Plan | |||||
The 2014 Stock Incentive Plan (2014 Incentive Plan), which was approved by the Company’s shareholders in April 2014, provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, performance awards, and other stock and stock-based awards. A total of 1,900,000 common shares were authorized for granting stock awards under the 2014 Incentive Plan, of which 1,685,653 were available for issuance as of December 31, 2014. The 2014 Incentive Plan terminates on December 13, 2023. | |||||
Employee Stock Purchase Plan | |||||
The 1999 Employee Stock Purchase Plan (Purchase Plan) allows eligible employees to purchase the Company’s common shares at 85% of the market price at the end of each six-month purchase period. On April 16, 2012, the Company’s shareholders approved an amendment to the Purchase Plan, increasing the number of shares available under the Purchase Plan from 900,000 common shares to 1,400,000 common shares and making certain other changes to the terms of the Purchase Plan. Of the 1,400,000 common shares authorized to be issued under the Purchase Plan, 460,264 were available for purchase as of December 31, 2014. At the discretion of the Company, shares purchased under the Purchase Plan can be either new issue shares or shares purchased in the open market. To provide shares for purchases for the Purchase Plan, 39,222 common shares were issued in 2014, 43,837 common shares were purchased in the open market in 2013 and 60,439 common shares were purchased in the open market in 2012. The shares to be purchased by employees participating in the Purchase Plan were not material to the calculation of diluted earnings per share during the investment period. | |||||
Dividend Reinvestment and Share Purchase Plan | |||||
On May 11, 2012 the Company filed a shelf registration statement with the SEC for the issuance of up to 1,500,000 common shares pursuant to the Company’s Automatic Dividend Reinvestment and Share Purchase Plan (the Plan), which permits shares purchased by shareholders, customers or residents of certain states who participate in the Plan to be either new issue common shares or common shares purchased in the open market. In 2014, 288,045 new common shares were issued and 7,480 common shares were purchased in the open market to provide shares for the plan. Common shares purchased in the open market to provide shares for the Plan totaled 284,632 in 2013 and 258,092 in 2012, leaving 661,751 common shares available for issuance under the Plan as of December 31, 2014. | |||||
Earnings Per Share | |||||
The numerator used in the calculation of both basic and diluted earnings per common share is earnings available for common shares with no adjustments in 2014, 2013 or 2012. The denominator used in the calculation of basic earnings per common share is the weighted average number of common shares outstanding during the period excluding nonvested restricted shares granted to the Company’s directors and employees, which are considered contingently returnable and not outstanding for the purpose of calculating basic earnings per share. The denominator used in the calculation of diluted earnings per common share is derived by adjusting outstanding shares for the following: (1) all potentially dilutive stock options, (2) underlying shares related to nonvested restricted stock units granted to employees, (3) nonvested restricted shares, (4) shares expected to be awarded for stock performance awards granted to executive officers, and (5) shares expected to be issued under the deferred compensation program for directors. Adjustments to the denominator used to calculate diluted earnings per share of 238,162 shares, 203,583 shares and 194,240 shares in 2014, 2013 and 2012, respectively, resulted in no differences greater than $0.01 between basic and diluted earnings per share in total or from continuing or discontinued operations in each of the years ended December 31, 2014, 2013 and 2012. | |||||
The following outstanding stock options with exercise prices greater than the average market price of the underlying shares were excluded from the calculation of diluted earnings per share for the years ended December 31, 2014, 2013 and 2012: | |||||
Year | Options Outstanding | Range of Exercise Prices | |||
2014 | -- | -- | |||
2013 | -- | -- | |||
2012 | 92,497 | $24.93 – $27.245 |
ShareBased_Payments
Share-Based Payments | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||
Disclosure Of Compensation Related Costs, Share-Based Payments [Abstract] | ||||||||||||||||||||||||||||||
Share-Based Payments | 7. Share-Based Payments | |||||||||||||||||||||||||||||
Purchase Plan | ||||||||||||||||||||||||||||||
The Purchase Plan allows employees through payroll withholding to purchase shares of the Company’s common stock at a 15% discount from the average market price on the last day of a six month investment period. Under ASC Topic 718, Compensation—Stock Compensation (ASC 718), the Company is required to record compensation expense related to the 15% discount. The 15% discount resulted in compensation expense of $175,000 in 2014, $143,000 in 2013 and $179,000 in 2012. The 15% discount is not taxable to the employee and is not a deductible expense for tax purposes for the Company. | ||||||||||||||||||||||||||||||
Stock Options Granted Under the 1999 Incentive Plan | ||||||||||||||||||||||||||||||
The Company has granted 2,041,500 options for the purchase of the Company’s common stock under the 1999 Stock Incentive Plan (1999 Incentive Plan). All of the options granted had vested or were forfeited as of December 31, 2007. The exercise price of the options granted was the average market price of the Company’s common stock on the grant date. Under ASC 718 accounting requirements, compensation expense is recorded based on the estimated fair value of the options on their grant date using a fair-value option pricing model. Under ASC 718 accounting requirements, the fair value of the options granted has been recorded as compensation expense over the requisite service period (the vesting period of the options). The estimated fair value of all options granted under the 1999 Incentive Plan was based on the Black-Scholes option pricing model. | ||||||||||||||||||||||||||||||
The following table provides information about options outstanding as of December 31, 2014: | ||||||||||||||||||||||||||||||
Exercise Price | Outstanding and | Remaining Contractual Life | ||||||||||||||||||||||||||||
Exercisable as of | ||||||||||||||||||||||||||||||
12/31/14 | ||||||||||||||||||||||||||||||
$24.93 | 12,750 | Expire on April 10, 2015 | ||||||||||||||||||||||||||||
Presented below is a summary of the stock options activity: | ||||||||||||||||||||||||||||||
Stock Option Activity | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Options | Average | Options | Average | Options | Average | |||||||||||||||||||||||||
Exercise | Exercise | Exercise | ||||||||||||||||||||||||||||
Price | Price | Price | ||||||||||||||||||||||||||||
Outstanding, Beginning of Year | 34,700 | $ | 25.69 | 92,497 | $ | 26.59 | 156,397 | $ | 28.53 | |||||||||||||||||||||
Granted | -- | -- | -- | -- | -- | -- | ||||||||||||||||||||||||
Exercised | 20,800 | 26.11 | 56,109 | 27.12 | -- | -- | ||||||||||||||||||||||||
Forfeited or Expired | 1,150 | 26.495 | 1,688 | 27.245 | 63,900 | 31.34 | ||||||||||||||||||||||||
Outstanding, End of Year | 12,750 | 24.93 | 34,700 | 25.69 | 92,497 | 26.59 | ||||||||||||||||||||||||
Exercisable, End of Year | 12,750 | 24.93 | 34,700 | 25.69 | 92,497 | 26.59 | ||||||||||||||||||||||||
Cash Received for Options Exercised | $543,000 | $1,522,000 | -- | |||||||||||||||||||||||||||
Intrinsic Value of Options Exercised | 89,000 | 152,000 | -- | |||||||||||||||||||||||||||
Fair Value of Options Granted During Year | none granted | none granted | none granted | |||||||||||||||||||||||||||
Restricted Stock Granted to Directors | ||||||||||||||||||||||||||||||
Under the 1999 Incentive Plan and the 2014 Incentive Plan, restricted shares of the Company’s common stock have been granted to members of the Company’s board of directors as a form of compensation. Under ASC 718 accounting requirements, compensation expense related to restricted shares is based on the fair value of the restricted shares on their grant dates. On April 14, 2014 the Company’s board of directors granted 16,800 shares of restricted stock to the Company’s nonemployee directors. The grant-date fair value of each share of restricted stock granted on April 14, 2014 was $29.41 per share, the average of the high and low market price on the date of grant. The restricted shares granted in 2014 vest 25% per year on April 8 of each year in the period 2015 through 2018 and are eligible for full dividend and voting rights. Restricted shares not vested and dividends on those restricted shares are subject to forfeiture under the terms of the restricted stock award agreement. | ||||||||||||||||||||||||||||||
Presented below is a summary of the status of directors’ restricted stock awards for the years ended December 31: | ||||||||||||||||||||||||||||||
Directors’ Restricted Stock Awards | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||||||||
Grant-Date | Grant-Date | Grant-Date | ||||||||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | ||||||||||||||||||||||||||||
Nonvested, Beginning of Year | 42,483 | $ | 25.03 | 56,900 | $ | 21.84 | 54,250 | $ | 23.26 | |||||||||||||||||||||
Granted | 16,800 | 29.41 | 17,333 | 30.77 | 24,000 | 21.32 | ||||||||||||||||||||||||
Vested | 21,233 | 24.11 | 29,750 | 21.87 | 21,350 | 24.86 | ||||||||||||||||||||||||
Forfeited | -- | 2,000 | 31.03 | -- | ||||||||||||||||||||||||||
Nonvested, End of Year | 38,050 | 27.47 | 42,483 | 25.03 | 56,900 | 21.84 | ||||||||||||||||||||||||
Compensation Expense Recognized | $416,000 | $611,000 | $552,000 | |||||||||||||||||||||||||||
Fair Value of Shares Vested in Year | 512,000 | 651,000 | 531,000 | |||||||||||||||||||||||||||
Restricted Stock Granted to Employees | ||||||||||||||||||||||||||||||
Under the 1999 Incentive Plan and 2014 Incentive Plan, restricted shares of the Company’s common stock have been granted to employees as a form of compensation. Under ASC 718 accounting requirements, compensation expense related to restricted shares is based on the fair value of the restricted shares on their grant dates. On April 14, 2014 the Company’s board of directors granted 26,700 shares of restricted stock to the Company’s executive officers under the 2014 Incentive Plan. The restricted shares vest 25% per year on April 8 of each year in the period 2015 through 2018 and are eligible for full dividend and voting rights. Restricted shares not vested and dividends on those restricted shares are subject to forfeiture under the terms of the restricted stock award agreement. The grant-date fair value of each share of restricted stock granted in 2014 was $29.41 per share, the average of the high and low market price on the date of grant. | ||||||||||||||||||||||||||||||
Presented below is a summary of the status of employees’ restricted stock awards for the years ended December 31: | ||||||||||||||||||||||||||||||
Employees’ Restricted Stock Awards | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||||||||
Grant-Date | Grant-Date | Grant-Date | ||||||||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | ||||||||||||||||||||||||||||
Nonvested, Beginning of Year | 48,315 | $ | 25.04 | 47,645 | $ | 21.82 | 34,868 | $ | 22.86 | |||||||||||||||||||||
Granted | 26,700 | 29.41 | 17,000 | 31.03 | 26,120 | 21.48 | ||||||||||||||||||||||||
Awards Vested | 25,360 | 24.8 | 16,330 | 21.89 | 11,518 | 24.14 | ||||||||||||||||||||||||
Forfeited | 4,375 | 28.03 | -- | 1,825 | 22.2 | |||||||||||||||||||||||||
Nonvested, End of Year | 45,280 | 27.46 | 48,315 | 25.04 | 47,645 | 21.82 | ||||||||||||||||||||||||
Compensation Expense Recognized | $998,000 | $427,000 | $325,000 | |||||||||||||||||||||||||||
Fair Value of Awards Vested | 629,000 | 358,000 | 278,000 | |||||||||||||||||||||||||||
Stock-based compensation expense recognized in 2014 for the Company’s restricted stock awards reflects the accelerated recognition of expense for outstanding and unvested restricted stock awards of executives who are, or will be, eligible for retirement, as defined in the restricted stock award agreements, prior to the vesting dates of the awards. | ||||||||||||||||||||||||||||||
Restricted Stock Units Granted to Employees | ||||||||||||||||||||||||||||||
On April 14, 2014 the Company’s board of directors granted 11,800 restricted stock units to key employees under the 2014 Incentive Plan payable in common shares on April 8, 2018, the date the units vest. The grant-date fair value of each restricted stock unit was $24.95 per share based on the average of the high and low market price of the Company’s common stock on April 14, 2014, discounted for the value of the dividend exclusion over the four-year vesting period. | ||||||||||||||||||||||||||||||
Presented below is a summary of the status of employees’ restricted stock unit awards for the years ended December 31: | ||||||||||||||||||||||||||||||
Employees’ Restricted Stock Unit Awards | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Restricted | Weighted | Restricted | Weighted | Restricted | Weighted | |||||||||||||||||||||||||
Stock | Average | Stock | Average | Stock | Average | |||||||||||||||||||||||||
Units | Grant-Date | Units | Grant-Date | Units | Grant-Date | |||||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | ||||||||||||||||||||||||||||
Nonvested, Beginning of Year | 56,180 | $ | 19.79 | 60,665 | $ | 18.11 | 73,815 | $ | 20.95 | |||||||||||||||||||||
Granted | 11,800 | 24.95 | 15,150 | 25.3 | 15,800 | 17.66 | ||||||||||||||||||||||||
Reinstated | 75 | 30.81 | -- | -- | ||||||||||||||||||||||||||
Vested | 14,305 | 18.05 | 17,535 | 18.73 | 20,750 | 27.13 | ||||||||||||||||||||||||
Forfeited | 7,850 | 18.9 | 2,100 | 19.88 | 8,200 | 19.97 | ||||||||||||||||||||||||
Nonvested, End of Year | 45,900 | 21.82 | 56,180 | 19.79 | 60,665 | 18.11 | ||||||||||||||||||||||||
Compensation Expense Recognized | $194,000 | $275,000 | $256,000 | |||||||||||||||||||||||||||
Fair Value of Units Converted in Year | 258,000 | 328,000 | 563,000 | |||||||||||||||||||||||||||
Stock Performance Awards granted to Executive Officers | ||||||||||||||||||||||||||||||
The Compensation Committee of the Company’s board of directors has approved stock performance award agreements under the 1999 Incentive Plan and the 2014 Incentive Plan for the Company’s executive officers. Under these agreements, the officers could be awarded shares of the Company’s common stock based on the Company’s total shareholder return relative to that of its peer group of companies in the Edison Electric Institute (EEI) Index over a three-year period beginning on January 1 of the year the awards are granted. The number of shares earned, if any, will be awarded and issued at the end of each three-year performance measurement period. The participants have no voting or dividend rights under these award agreements until the shares are issued at the end of the performance measurement period. The terms of the outstanding awards dictate that these awards be classified and accounted for as liability awards, in accordance with the requirements of ASC 718, with compensation measured over the performance period based on the fair value of the award at the end of each reporting period subsequent to the grant date. | ||||||||||||||||||||||||||||||
On April 14, 2014 the Company’s board of directors granted performance share awards to the Company’s executive officers under the 2014 Incentive Plan for the 2014-2016 performance measurement period. | ||||||||||||||||||||||||||||||
The table below provides a summary of stock performance awards granted and amounts expensed related to the stock performance awards: | ||||||||||||||||||||||||||||||
Performance | Maximum | Shares Used | Average | Expense Recognized | Shares | |||||||||||||||||||||||||
Period | Shares Subject | To Estimate | Grant-Date | in the Year Ended December 31, | Awarded | |||||||||||||||||||||||||
To Award | Expense | Fair Value | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
2014-2016 | 159,450 | 106,300 | $ | 22.94 | $ | 1,422,000 | $ | -- | $ | -- | -- | |||||||||||||||||||
2013-2015 | 90,600 | 45,300 | $ | 37.51 | 458,000 | 580,000 | -- | -- | ||||||||||||||||||||||
2012-2014 | 148,400 | 74,200 | $ | 21.75 | 142,000 | 1,686,000 | 1,001,000 | 89,991 | ||||||||||||||||||||||
2011-2013 | 90,600 | 45,300 | $ | 23.61 | -- | 412,000 | 254,000 | 48,730 | ||||||||||||||||||||||
2010-2012 | 138,800 | 69,400 | $ | 20.97 | -- | -- | -- | 49,500 | ||||||||||||||||||||||
Total | $ | 2,022,000 | $ | 2,678,000 | $ | 1,255,000 | 188,221 | |||||||||||||||||||||||
Stock-based payment expense recognized in 2014 reflects the accelerated recognition of expense for outstanding and unvested awards of executives who are, or will be, eligible for retirement, as defined in the performance award agreements, prior to the vesting dates of the awards. | ||||||||||||||||||||||||||||||
In connection with the resignation of executive officers in May 2014 and March 2012, the following unvested stock performance awards were forfeited: 8,900 granted in 2014, 4,900 granted in 2013, 6,600 granted in 2012, 3,300 granted in 2011 and 4,000 granted in 2010. | ||||||||||||||||||||||||||||||
The shares awarded shown in the table above for the 2012-2014 performance period reflect shares received in 2015 by active participants in the plan on December 31, 2014, based on the Company achieving a ranking of 21 out of 48 companies in its EEI peer group and a resulting payout at 121.28% of target. | ||||||||||||||||||||||||||||||
The shares awarded shown in the table above for the 2011-2013 performance period include shares received in 2014 by active participants in the plan on December 31, 2013, based on the Company achieving a ranking of 22 out of 49 companies in its EEI peer group and a resulting payout at 117.86% of target. The shares awarded shown in the table above for the 2011-2013 performance period also include 26,100 shares received by a participant under an executive employment agreement on resignation in 2011. | ||||||||||||||||||||||||||||||
The Company’s 2010-2012 total shareholder return ranking resulted in no incentive share awards for the Company’s active plan participants for the 2010-2012 performance measurement period. The shares awarded shown in the table above for the 2010-2012 performance periods reflect only shares received under executive employment agreements. | ||||||||||||||||||||||||||||||
As of December 31, 2014 the total remaining unrecognized amount of compensation expense related to stock-based compensation for all of the Company’s stock-based payment programs was approximately $3.0 million (before income taxes), which will be amortized over a weighted average period of 1.9 years. |
Retained_Earnings_and_Dividend
Retained Earnings and Dividend Restriction | 12 Months Ended |
Dec. 31, 2014 | |
Retained Earnings Restrictions [Abstract] | |
Retained Earnings and Dividend Restriction | 8. Retained Earnings and Dividend Restriction |
The Company is a holding company with no significant operations of its own. The primary source of funds for payments of dividends to the Company’s shareholders is from dividends paid or distributions made by the Company’s subsidiaries. As a result of certain statutory limitations or regulatory or financing agreements, restrictions could occur on the amount of distributions allowed to be made by the Company’s subsidiaries. | |
Both the Company and OTP credit agreements contain restrictions on the payment of cash dividends upon a default or event of default. An event of default would be considered to have occurred if the Company did not meet certain financial covenants. As of December 31, 2014 the Company was in compliance with the debt covenants. See note 10 to consolidated financial statements for further information on the 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, FERC has consistently interpreted the provision to allow dividends to be paid as long as (1) the source of the dividends is clearly disclosed, (2) the dividend is not excessive and (3) there is no self-dealing on the part of corporate officials. | |
The MPUC indirectly limits the amount of dividends OTP can pay to the Company by requiring an equity‑to‑total‑capitalization ratio between 45.0% and 55.0%. OTP’s equity to total capitalization ratio including short-term debt was 49.8% as of December 31, 2014. Total capitalization for OTP cannot currently exceed $987 million. |
Commitments_and_Contingencies_
Commitments and Contingencies of Continuing Operations | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||
Commitments and Contingencies of Continuing Operations | 9. Commitments and Contingencies of Continuing Operations | ||||||||||||||||||||||||
Construction and Other Purchase Commitments | |||||||||||||||||||||||||
At December 31, 2014 OTP had commitments under contracts in connection with construction programs extending into 2018 of approximately $106.6 million. | |||||||||||||||||||||||||
Electric Utility Capacity and Energy Requirements and Coal and Delivery Contracts | |||||||||||||||||||||||||
OTP has commitments for the purchase of capacity and energy requirements under agreements extending into 2039. OTP has contracts providing for the purchase and delivery of a significant portion of its current coal requirements. OTP’s current coal purchase agreements, under which OTP is committed to the minimum purchase amounts or to make payments in lieu thereof, expire in 2015, 2016, 2017 and 2040. Fuel clause adjustment mechanisms lessen the risk of loss from market price changes because they provide for recovery of most fuel costs. See table below for schedule of commitments. | |||||||||||||||||||||||||
Operating Leases | |||||||||||||||||||||||||
OTP has obligations to make future operating lease payments primarily related to land leases and coal rail-car leases. The Company’s nonelectric companies have obligations to make future operating lease payments primarily related to leases of buildings and manufacturing equipment. Rent expense from continuing operations was $10,165,000, $8,560,000 and $7,951,000 for 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
The amounts of the Company’s construction program commitments and commitments under capacity and energy agreements, coal and coal delivery contracts and operating leases for continuing operations as of December 31, 2014, are as follows: | |||||||||||||||||||||||||
Construction Program Commitments | Capacity and Energy Requirements | Coal and Freight Purchase | Operating Leases | ||||||||||||||||||||||
(in thousands) | Commitments | OTP | Nonelectric | Total | |||||||||||||||||||||
2015 | $ | 48,708 | $ | 34,383 | $ | 49,739 | $ | 1,958 | $ | 5,114 | $ | 7,072 | |||||||||||||
2016 | 40,653 | 22,812 | 22,943 | 1,371 | 4,056 | 5,427 | |||||||||||||||||||
2017 | 17,163 | 22,123 | 28,146 | 978 | 3,333 | 4,311 | |||||||||||||||||||
2018 | 100 | 22,729 | 23,135 | 990 | 2,744 | 3,734 | |||||||||||||||||||
2019 | -- | 24,532 | 23,072 | 1,002 | 1,223 | 2,225 | |||||||||||||||||||
Beyond 2019 | -- | 217,359 | 598,742 | 10,824 | 3,766 | 14,590 | |||||||||||||||||||
Total | $ | 106,624 | $ | 343,938 | $ | 745,777 | $ | 17,123 | $ | 20,236 | $ | 37,359 | |||||||||||||
Contingencies | |||||||||||||||||||||||||
Contingencies, by their nature, relate to uncertainties that require the Company’s management to exercise judgment both in assessing the likelihood a liability has been incurred as well as in estimating the amount of potential loss. The most significant contingencies impacting the Company’s consolidated financial statements are those related to environmental remediation and litigation matters. Should all of these known items result in liabilities being incurred, the loss could be as high as $2.0 million. | |||||||||||||||||||||||||
On June 21, 2010 the EPA published a proposed rule that outlines two possible options to regulate disposal of coal ash generated from the combustion of coal by electric utilities under the Resource Conservation and Recovery Act (RCRA). In one option, the EPA would propose to list coal ash destined for disposal in landfills or surface impoundments as “special wastes” subject to regulation under Subtitle C of RCRA. Subtitle C regulations set forth the EPA’s hazardous waste regulatory program, which regulates the generation, handling, transport and disposal of wastes. Under the other proposed regulatory option, the EPA would regulate the disposal of coal ash under Subtitle D of RCRA, the regulatory program for nonhazardous solid wastes. On December 19, 2014 the EPA announced a final rule following the Subtitle D nonhazardous provisions. The rule requires OTP to complete certain actions, such as installing additional groundwater monitoring wells and investigating whether existing surface impoundments meet defined location restrictions, in order to determine whether existing surface impoundments should be retired or retrofitted with liners. Therefore, the cost impact of this rule will not be known until those actions are completed. Existing landfill cells can continue to operate as designed, but future expansions will require composite liner and leachate collection systems. The EPA is also considering future regulation of coal ash under Subtitle C. Publication of the final rule will open a 90-day window within which petitions for judicial review may be filed in the D.C. Circuit. Challenges by environmental groups are possible and the outcome of such challenges cannot be predicted. Thus, uncertainty regarding the status of this rule is likely to continue for some time. | |||||||||||||||||||||||||
Other | |||||||||||||||||||||||||
The Company is a party to litigation arising in the normal course of business. The Company regularly analyzes current information and, as necessary, provides accruals for liabilities that are probable of occurring and that can be reasonably estimated. The Company believes the effect on its consolidated results of operations, financial position and cash flows, if any, for the disposition of all matters pending as of December 31, 2014 will not be material. |
ShortTerm_and_LongTerm_Borrowi
Short-Term and Long-Term Borrowings and Preferred Stock Redemption | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||
Short-Term and Long-Term Borrowings and Preferred Stock Redemption | 10. Short-Term and Long-Term Borrowings and Preferred Stock Redemption | ||||||||||||||||||||
Short-Term Debt | |||||||||||||||||||||
The following table presents the status of the Company’s lines of credit as of December 31, 2014 and December 31, 2013: | |||||||||||||||||||||
(in thousands) | Line Limit | In Use on | Restricted due to | Available on | Available on | ||||||||||||||||
December 31, | Outstanding | December 31, | December 31, | ||||||||||||||||||
2014 | Letters of Credit | 2014 | 2013 | ||||||||||||||||||
Otter Tail Corporation Credit Agreement | $ | 150,000 | $ | 10,854 | $ | 274 | $ | 138,872 | $ | 149,341 | |||||||||||
OTP Credit Agreement | 170,000 | -- | 560 | 169,440 | 116,975 | ||||||||||||||||
Total | $ | 320,000 | $ | 10,854 | $ | 834 | $ | 308,312 | $ | 266,316 | |||||||||||
Under the Otter Tail Corporation Credit Agreement (as defined below), the maximum amount of debt outstanding in 2014 was $41,348,000 on October 16, 2014 and the average daily balance of debt outstanding during 2014 was $17,868,000. The weighted average interest rate paid on debt outstanding under the Otter Tail Corporation Credit Agreement during 2014 was 1.9% compared with 1.9% in 2013. Under the OTP Credit Agreement (as defined below), the maximum amount of debt outstanding in 2014 was $97,000,000 on February 13, 2014 and the average daily balance of debt outstanding during 2014 was $12,815,000. The weighted average interest rate paid on debt outstanding under the OTP Credit Agreement during 2014 was 1.4% compared with 1.4% in 2013. The weighted average interest rate on consolidated short-term debt outstanding on December 31, 2014 was 1.9%. | |||||||||||||||||||||
On October 29, 2012 the Company entered into a Third Amended and Restated Credit Agreement (the Otter Tail Corporation Credit Agreement), which is an unsecured $150 million revolving credit facility that may be increased to $250 million on the terms and subject to the conditions described in the Otter Tail Corporation Credit Agreement. On November 3, 2014 the Otter Tail Corporation Credit Agreement was amended to extend its expiration date by one year from October 29, 2018 to October 29, 2019. The Company can draw on this credit facility to refinance certain indebtedness and support its operations and the operations of its subsidiaries. Borrowings under the Otter Tail Corporation Credit Agreement bear interest at LIBOR plus 1.75%, subject to adjustment based on the Company’s senior unsecured credit ratings. The Company is required to pay commitment fees based on the average daily unused amount available to be drawn under the revolving credit facility. The Otter Tail Corporation Credit Agreement contains a number of restrictions on the Company and the businesses of Varistar and its subsidiaries, including restrictions on the Company’s and Varistar’s ability to merge, sell assets, make investments, create or incur liens on assets, guarantee the obligations of certain other parties and engage in transactions with related parties. The Otter Tail Corporation Credit Agreement also contains affirmative covenants and events of default, and financial covenants as described below under the heading “Financial Covenants.” The Otter Tail Corporation Credit Agreement does not include provisions for the termination of the agreement or the acceleration of repayment of amounts outstanding due to changes in the Company’s credit ratings. The Company’s obligations under the Otter Tail Corporation Credit Agreement are guaranteed by certain of the Company’s subsidiaries. Outstanding letters of credit issued by the Company under the Otter Tail Corporation Credit Agreement can reduce the amount available for borrowing under the line by up to $40 million. | |||||||||||||||||||||
On October 29, 2012 OTP entered into a Second Amended and Restated Credit Agreement (the OTP Credit Agreement), providing for an unsecured $170 million revolving credit facility that may be increased to $250 million on the terms and subject to the conditions described in the OTP Credit Agreement. On November 3, 2014 the OTP Credit Agreement was amended to extend its expiration date by one year from October 29, 2018 to October 29, 2019. OTP can draw on this credit facility to support the working capital needs and other capital requirements of its operations, including letters of credit in an aggregate amount not to exceed $50 million outstanding at any time. Borrowings under this line of credit bear interest at LIBOR plus 1.25%, subject to adjustment based on the ratings of OTP’s senior unsecured debt. OTP is required to pay commitment fees based on the average daily unused amount available to be drawn under the revolving credit facility. The OTP Credit Agreement contains a number of restrictions on the business of OTP, including restrictions on its ability to merge, sell assets, make investments, create or incur liens on assets, guarantee the obligations of any other party, and engage in transactions with related parties. The OTP Credit Agreement also contains affirmative covenants and events of default, and financial covenants as described below under the heading “Financial Covenants.” The OTP Credit Agreement does not include provisions for the termination of the agreement or the acceleration of repayment of amounts outstanding due to changes in OTP’s credit ratings. OTP’s obligations under the OTP Credit Agreement are not guaranteed by any other party. | |||||||||||||||||||||
Long-Term Debt Retirements, Preferred Stock Redemption and Debt Issuances | |||||||||||||||||||||
Debt Retirements and Preferred Stock Redemption | |||||||||||||||||||||
On March 1, 2013 OTP entered into a Credit Agreement (the Loan Agreement) with JPMorgan Chase Bank, N.A. (JPMorgan) providing for a $40.9 million unsecured term loan (the Term Loan) to OTP originally due on June 1, 2014, which was fully drawn on March 1, 2013. The Loan Agreement was amended on October 29, 2013 to extend the due date on the Term Loan to January 15, 2015. Borrowings under the Loan Agreement bore interest at LIBOR plus 0.875%. On March 1, 2013 OTP utilized approximately $25.1 million of Term Loan proceeds to fund the redemption price for all of the 4.65% Grant County, South Dakota Pollution Control Refunding Revenue Bonds and 4.85% Mercer County, North Dakota Pollution Control Refunding Revenue Bonds outstanding on that date, in each case for which OTP paid debt service. All such bonds had been called for redemption in full on March 1, 2013. Also on March 1, 2013, OTP utilized approximately $15.7 million of Term Loan proceeds to satisfy an intercompany note to the Company that had a balance and interest rate designed to equate to the balances and dividend rates of the Company’s cumulative preferred shares. Those cumulative preferred shares were redeemed on March 1, 2013 for $15.7 million, including $0.2 million in call premiums charged to equity and included with preferred dividends paid and as part of the Company’s preferred dividend requirement for the year ended December 31, 2013. On February 27, 2014 OTP used a portion of the proceeds from the issuance of notes under the 2013 Note Purchase Agreement (as defined below) to retire early the Term Loan. | |||||||||||||||||||||
On November 6 and 25, 2013 the Company purchased, in two separate transactions, $12,933,000 and $34,737,000, respectively, of its outstanding 9.000% notes due 2016 (the 2016 Notes), originally issued in the aggregate principal amount of $100 million. The purchased 2016 Notes (the Purchased 2016 Notes) were subsequently retired and are no longer outstanding. The remaining $52,300,000 principal amount of 2016 Notes outstanding, unless redeemed early or otherwise repaid, will mature and become due and payable on December 15, 2016. The price paid for the Purchased 2016 Notes was $59,404,000, which includes the principal amount of the Purchased 2016 Notes, plus accrued interest of $1,845,000 through the respective purchase dates and a negotiated premium of $9,889,000 (which is less than the premium the Company would have been required to pay to redeem them under the terms of the 2016 Notes). The Company used cash on hand to fund the purchase of the Purchased 2016 Notes. The amount of the debt retired as a result of these transactions is approximately equivalent to the remaining amount of debt that was associated with the operating companies the Company divested over the last two years. On repayment, $363,000 in unamortized debt expense related to the 2016 Notes was immediately recognized as expense along with the $9,889,000 negotiated premium which, in total, reduced diluted earnings per share by $0.17 in 2013. | |||||||||||||||||||||
On July 13, 2012 the Company prepaid in full its outstanding $50 million, 8.89% Senior Unsecured Note due November 30, 2017 (the Cascade Note) issued pursuant to the Note Purchase Agreement dated as of February 23, 2007, as amended, between the Company and Cascade Investment, L.L.C. (Cascade). Immediately before the prepayment, the Cascade Note bore interest at 8.89% annually. The price paid by the Company to prepay the Cascade Note was $63,031,000, which included the principal amount of the Cascade Note plus accrued interest of $531,000 and a negotiated prepayment premium of $12,500,000. The Company used funds available under the Otter Tail Corporation Credit Agreement for the prepayment. This early retirement reflects the Company’s desire to lower its long-term debt outstanding given its recent divestitures. On repayment, $606,000 in unamortized debt expense related to this note was immediately recognized as expense along with the $12,500,000 negotiated prepayment premium which, in total, reduced diluted earnings per share by $0.22 in 2012. | |||||||||||||||||||||
2013 Note Purchase Agreement | |||||||||||||||||||||
On August 14, 2013 OTP entered into a Note Purchase Agreement (the 2013 Note Purchase Agreement) pursuant to which OTP has agreed to issue to the purchasers named therein, in a private placement transaction, $60 million aggregate principal amount of OTP’s 4.68% Series A Senior Unsecured Notes due February 27, 2029 (the Series A Notes) and $90 million aggregate principal amount of OTP’s 5.47% Series B Senior Unsecured Notes due February 27, 2044 (the Series B Notes and, together with the Series A Notes, the Notes). The Notes were issued on February 27, 2014. OTP used a portion of the proceeds of the Notes to retire early the Term Loan as discussed above and to repay OTP’s short-term debt outstanding on February 27, 2014. The remaining proceeds of the Notes were used to pay fees and expenses related to the issuance of the Notes and for other general purposes, including construction program expenditures. | |||||||||||||||||||||
The 2013 Note Purchase Agreement states that 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 prepaid, together with accrued interest and a make-whole amount, provided that if no default or event of default under the 2013 Note Purchase Agreement exists, any optional prepayment made by OTP of (i) all of the Series A Notes then outstanding on or after November 27, 2028 or (ii) all of the Series B Notes then outstanding on or after November 27, 2043, will be made at 100% of the principal prepaid but without any make-whole amount. In addition, the 2013 Note Purchase Agreement states OTP must offer to prepay all of the outstanding Notes at 100% of the principal amount together with unpaid accrued interest in the event of a change of control of OTP. | |||||||||||||||||||||
The 2013 Note Purchase Agreement contains a number of restrictions on the business of OTP, including restrictions on OTP’s ability to merge, sell assets, create or incur liens on assets, guarantee the obligations of any other party, and engage in transactions with related parties. The 2013 Note Purchase Agreement also contains affirmative covenants and events of default, as well as certain financial covenants as described below under the heading “Financial Covenants.” The 2013 Note Purchase Agreement does not include provisions for the termination of the agreement or the acceleration of repayment of amounts outstanding due to changes in OTP’s credit ratings. The 2013 Note Purchase Agreement includes a “most favored lender” provision generally requiring that in the event OTP’s existing credit agreement or any renewal, extension or replacement thereof, at any time contains any financial covenant or other provision providing for limitations on interest expense and such a covenant is not contained in the 2013 Note Purchase Agreement under substantially similar terms or would be more beneficial to the holders of the Notes than any analogous provision contained in the 2013 Note Purchase Agreement (an “Additional Covenant”), then unless waived by the Required Holders (as defined in the 2013 Note Purchase Agreement), the Additional Covenant will be deemed to be incorporated into the 2013 Note Purchase Agreement. The 2013 Note Purchase Agreement also provides for the amendment, modification or deletion of an Additional Covenant if such Additional Covenant is amended or modified under or deleted from the OTP credit agreement, provided that no default or event of default has occurred and is continuing. | |||||||||||||||||||||
2007 and 2011 Note Purchase Agreements | |||||||||||||||||||||
On December 1, 2011, OTP issued $140 million aggregate principal amount of its 4.63% Senior Unsecured Notes due December 1, 2021 pursuant to a Note Purchase Agreement dated as of July 29, 2011 (the 2011 Note Purchase Agreement). OTP also has outstanding its $155 million senior unsecured notes issued in four series consisting of $33 million aggregate principal amount of 5.95% Senior Unsecured Notes, Series A, due 2017; $30 million aggregate principal amount of 6.15% Senior Unsecured Notes, Series B, due 2022; $42 million aggregate principal amount of 6.37% Senior Unsecured Notes, Series C, due 2027; and $50 million aggregate principal amount of 6.47% Senior Unsecured Notes, Series D, due 2037 (collectively, the 2007 Notes). The 2007 Notes were issued pursuant to a Note Purchase Agreement dated as of August 20, 2007 (the 2007 Note Purchase Agreement). | |||||||||||||||||||||
The 2011 Note Purchase Agreement and the 2007 Note Purchase Agreement each states that OTP may prepay all or any part of the notes issued thereunder (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 prepaid, together with accrued interest and a make-whole amount. The 2011 Note Purchase Agreement states in the event of a transfer of utility assets put event, the noteholders thereunder have the right to require OTP to repurchase the notes held by them in full, together with accrued interest and a make-whole amount, on the terms and conditions specified in the 2011 Note Purchase Agreement. The 2011 Note Purchase Agreement and the 2007 Note Purchase Agreement each also states that OTP must offer to prepay all of the outstanding notes issued thereunder at 100% of the principal amount together with unpaid accrued interest in the event of a change of control of OTP. The note purchase agreements contain a number of restrictions on OTP, including restrictions on OTP’s ability to merge, sell assets, create or incur liens on assets, guarantee the obligations of any other party, and engage in transactions with related parties. The note purchase agreements also include affirmative covenants and events of default, and certain financial covenants as described below under the heading “Financial Covenants.” | |||||||||||||||||||||
Shelf Registration | |||||||||||||||||||||
On May 11, 2012 the Company filed a shelf registration statement with the SEC under which it may offer for sale, from time to time, either separately or together in any combination, equity and/or debt securities described in the shelf registration statement, which expires on May 10, 2015. | |||||||||||||||||||||
The aggregate amounts of maturities on bonds outstanding and other long‑term obligations at December 31, 2014 for each of the next five years are: | |||||||||||||||||||||
(in thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||
Aggregate Amounts of Debt Maturities | $ | 201 | $ | 52,544 | $ | 33,228 | $ | 187 | $ | 172 | |||||||||||
The following tables provide a breakdown of the assignment of the Company’s consolidated short-term and long-term debt outstanding as of December 31, 2014 and December 31, 2013: | |||||||||||||||||||||
December 31, 2014 (in thousands) | OTP | Otter Tail | Otter Tail | ||||||||||||||||||
Corporation | Corporation Consolidated | ||||||||||||||||||||
Short-Term Debt | $ | -- | $ | 10,854 | $ | 10,854 | |||||||||||||||
Long-Term Debt: | |||||||||||||||||||||
9.000% Notes, due December 15, 2016 | $ | 52,330 | $ | 52,330 | |||||||||||||||||
Senior Unsecured Notes 5.95%, Series A, due August 20, 2017 | $ | 33,000 | 33,000 | ||||||||||||||||||
Senior Unsecured Notes 4.63%, due December 1, 2021 | 140,000 | 140,000 | |||||||||||||||||||
Senior Unsecured Notes 6.15%, Series B, due August 20, 2022 | 30,000 | 30,000 | |||||||||||||||||||
Senior Unsecured Notes 6.37%, Series C, due August 20, 2027 | 42,000 | 42,000 | |||||||||||||||||||
Senior Unsecured Notes 4.68%, Series A, due February 27, 2029 | 60,000 | 60,000 | |||||||||||||||||||
Senior Unsecured Notes 6.47%, Series D, due August 20, 2037 | 50,000 | 50,000 | |||||||||||||||||||
Senior Unsecured Notes 5.47%, Series B, due February 27, 2044 | 90,000 | 90,000 | |||||||||||||||||||
North Dakota Development Note, 3.95%, due April 1, 2018 | -- | 256 | 256 | ||||||||||||||||||
Partnership in Assisting Community Expansion (PACE) Note, 2.54%, due March 18, 2021 | -- | 1,105 | 1,105 | ||||||||||||||||||
Total | $ | 445,000 | $ | 53,691 | $ | 498,691 | |||||||||||||||
Less: Current Maturities | -- | 201 | 201 | ||||||||||||||||||
Unamortized Debt Discount | -- | 1 | 1 | ||||||||||||||||||
Total Long-Term Debt | $ | 445,000 | $ | 53,489 | $ | 498,489 | |||||||||||||||
Total Short-Term and Long-Term Debt (with current maturities) | $ | 445,000 | $ | 64,544 | $ | 509,544 | |||||||||||||||
December 31, 2013 (in thousands) | OTP | Otter Tail | Otter Tail | ||||||||||||||||||
Corporation | Corporation Consolidated | ||||||||||||||||||||
Short-Term Debt | $ | 51,195 | $ | -- | $ | 51,195 | |||||||||||||||
Long-Term Debt: | |||||||||||||||||||||
Unsecured Term Loan - LIBOR plus 0.875%, due January 15, 2015 | $ | 40,900 | $ | 40,900 | |||||||||||||||||
9.000% Notes, due December 15, 2016 | $ | 52,330 | 52,330 | ||||||||||||||||||
Senior Unsecured Notes 5.95%, Series A, due August 20, 2017 | 33,000 | 33,000 | |||||||||||||||||||
Senior Unsecured Notes 4.63%, due December 1, 2021 | 140,000 | 140,000 | |||||||||||||||||||
Senior Unsecured Notes 6.15%, Series B, due August 20, 2022 | 30,000 | 30,000 | |||||||||||||||||||
Senior Unsecured Notes 6.37%, Series C, due August 20, 2027 | 42,000 | 42,000 | |||||||||||||||||||
Senior Unsecured Notes 6.47%, Series D, due August 20, 2037 | 50,000 | 50,000 | |||||||||||||||||||
North Dakota Development Note, 3.95%, due April 1, 2018 | -- | 325 | 325 | ||||||||||||||||||
Partnership in Assisting Community Expansion (PACE) Note, 2.54%, due March 18, 2021 | -- | 1,223 | 1,223 | ||||||||||||||||||
Total | $ | 335,900 | $ | 53,878 | $ | 389,778 | |||||||||||||||
Less: Current Maturities | -- | 188 | 188 | ||||||||||||||||||
Unamortized Debt Discount | -- | 1 | 1 | ||||||||||||||||||
Total Long-Term Debt | $ | 335,900 | $ | 53,689 | $ | 389,589 | |||||||||||||||
Total Short-Term and Long-Term Debt (with current maturities) | $ | 387,095 | $ | 53,877 | $ | 440,972 | |||||||||||||||
Financial Covenants | |||||||||||||||||||||
The Company and OTP were in compliance with the financial covenants in their debt agreements as of December 31, 2014. | |||||||||||||||||||||
No Credit or Note Purchase Agreement contains any provisions that would trigger an acceleration of the related debt as a result of changes in the credit rating levels assigned to the related obligor by rating agencies. | |||||||||||||||||||||
The Company’s and OTP’s borrowing agreements are subject to certain financial covenants. Specifically: | |||||||||||||||||||||
● | Under the Otter Tail Corporation Credit Agreement, the Company may not permit the ratio of its Interest-bearing Debt to Total Capitalization to be greater than 0.60 to 1.00 or permit its Interest and Dividend Coverage Ratio to be less than 1.50 to 1.00 (each measured on a consolidated basis), as provided in the Otter Tail Corporation Credit Agreement. | ||||||||||||||||||||
● | Under the OTP Credit Agreement and the Loan Agreement (when in effect), OTP may not permit the ratio of its Interest-bearing Debt to Total Capitalization to be greater than 0.60 to 1.00. | ||||||||||||||||||||
● | Under the 2007 Note Purchase Agreement and 2011 Note Purchase Agreement, OTP may not permit the ratio of its Consolidated Debt to Total Capitalization to be greater than 0.60 to 1.00 or permit its Interest and Dividend Coverage Ratio to be less than 1.50 to 1.00, in each case as provided in the related borrowing agreement, and OTP may not permit its Priority Debt to exceed 20% of its Total Capitalization, as provided in the related agreement. | ||||||||||||||||||||
● | Under the 2013 Note Purchase Agreement, OTP may not permit its Interest-bearing Debt to exceed 60% of Total Capitalization and may not permit its Priority Indebtedness to exceed 20% of its Total Capitalization, each as provided in the 2013 Note Purchase Agreement. |
Pension_Plan_and_Other_Postret
Pension Plan and Other Postretirement Benefits | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||
Pension Plan and Other Postretirement Benefits | 11. Pension Plan and Other Postretirement Benefits | ||||||||||||||||||||||||
For valuation of the Company’s pension and other postretirement benefit plans’ projected benefit obligations as of December 31, 2014, the Company adopted updated and modified mortality tables and an updated and modified mortality improvement scale that reflect longer life expectancies for plan participants. The adoption of the updated and modified mortality tables and mortality improvement scale in 2014 increased the Company’s pension and other postretirement benefit obligations from projected benefit obligations that would have been rendered using the mortality tables the Company had been using since 2005. Although the adoption of the updated and modified tables and improvement scale will have the effect of increasing the estimated and recognized cost of future benefit payments in the near term, the ultimate cost recognized will be determined by the actual level and duration of future benefit payments. | |||||||||||||||||||||||||
Pension Plan | |||||||||||||||||||||||||
The Company’s noncontributory funded pension plan covers substantially all corporate employees and OTP nonunion employees hired prior to January 1, 2006, and all union employees of OTP hired prior to November 1, 2013, excluding Coyote Station employees. Coyote Station employees hired before January 1, 2009 are covered under the plan. The plan provides 100% vesting after five vesting years of service and for retirement compensation at age 65, with reduced compensation in cases of retirement prior to age 62. The Company reserves the right to discontinue the plan but no change or discontinuance may affect the pensions theretofore vested. | |||||||||||||||||||||||||
The pension plan has a trustee who is responsible for pension payments to retirees and a separate pension fund manager responsible for managing the plan’s assets. An independent actuary assists the Company in performing the necessary actuarial valuations for the plan. | |||||||||||||||||||||||||
The plan assets consist of common stock and bonds of public companies, U.S. government securities, cash and cash equivalents and alternative investments. None of the plan assets are invested in common stock or debt securities of the Company. | |||||||||||||||||||||||||
Components of net periodic pension benefit cost: | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Service Cost–Benefit Earned During the Period | $ | 4,666 | $ | 5,594 | $ | 5,084 | |||||||||||||||||||
Interest Cost on Projected Benefit Obligation | 13,111 | 12,123 | 12,465 | ||||||||||||||||||||||
Expected Return on Assets | (16,743 | ) | (14,521 | ) | (14,430 | ) | |||||||||||||||||||
Amortization of Prior Service Cost: | |||||||||||||||||||||||||
From Regulatory Asset | 257 | 333 | 398 | ||||||||||||||||||||||
From Other Comprehensive Income1 | 7 | 9 | 11 | ||||||||||||||||||||||
Amortization of Net Actuarial Loss: | |||||||||||||||||||||||||
From Regulatory Asset | 3,400 | 6,600 | 4,910 | ||||||||||||||||||||||
From Other Comprehensive Income1 | 83 | 176 | 131 | ||||||||||||||||||||||
Net Periodic Pension Cost | $ | 4,781 | $ | 10,314 | $ | 8,569 | |||||||||||||||||||
1Corporate cost included in Other Nonelectric Expenses. | |||||||||||||||||||||||||
Weighted average assumptions used to determine net periodic pension cost for the year ended December 31: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Discount Rate | 5.3 | % | 4.5 | % | 5.15 | % | |||||||||||||||||||
Long-Term Rate of Return on Plan Assets | 7.75 | % | 7.75 | % | 8 | % | |||||||||||||||||||
Rate of Increase in Future Compensation Level | 3.13 | % | 3.13 | % | 3.38 | % | |||||||||||||||||||
The following table presents amounts recognized in the consolidated balance sheets as of December 31: | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Regulatory Assets: | |||||||||||||||||||||||||
Unrecognized Prior Service Cost | $ | 518 | $ | 776 | |||||||||||||||||||||
Unrecognized Actuarial Loss | 97,722 | 56,051 | |||||||||||||||||||||||
Total Regulatory Assets | $ | 98,240 | $ | 56,827 | |||||||||||||||||||||
Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||||
Unrecognized Prior Service Cost | $ | 21 | $ | 28 | |||||||||||||||||||||
Unrecognized Actuarial Loss | 899 | 448 | |||||||||||||||||||||||
Total Accumulated Other Comprehensive Loss | $ | 920 | $ | 476 | |||||||||||||||||||||
Noncurrent Liability | $ | 67,061 | $ | 40,422 | |||||||||||||||||||||
Funded status as of December 31: | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Accumulated Benefit Obligation | $ | (273,903 | ) | $ | (224,365 | ) | |||||||||||||||||||
Projected Benefit Obligation | $ | (311,650 | ) | $ | (254,039 | ) | |||||||||||||||||||
Fair Value of Plan Assets | 244,589 | 213,617 | |||||||||||||||||||||||
Funded Status | $ | (67,061 | ) | $ | (40,422 | ) | |||||||||||||||||||
The following tables provide a reconciliation of the changes in the fair value of plan assets and the plan’s benefit obligations over the two-year period ended December 31, 2014: | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Reconciliation of Fair Value of Plan Assets: | |||||||||||||||||||||||||
Fair Value of Plan Assets at January 1 | $ | 213,617 | $ | 191,018 | |||||||||||||||||||||
Actual Return on Plan Assets | 21,874 | 23,044 | |||||||||||||||||||||||
Discretionary Company Contributions | 20,000 | 10,000 | |||||||||||||||||||||||
Benefit Payments | (10,902 | ) | (10,445 | ) | |||||||||||||||||||||
Fair Value of Plan Assets at December 31 | $ | 244,589 | $ | 213,617 | |||||||||||||||||||||
Estimated Asset Return | 9.6 | % | 11.8 | % | |||||||||||||||||||||
Reconciliation of Projected Benefit Obligation: | |||||||||||||||||||||||||
Projected Benefit Obligation at January 1 | $ | 254,039 | $ | 275,634 | |||||||||||||||||||||
Service Cost | 4,666 | 5,594 | |||||||||||||||||||||||
Interest Cost | 13,111 | 12,123 | |||||||||||||||||||||||
Benefit Payments | (10,902 | ) | (10,445 | ) | |||||||||||||||||||||
Actuarial Loss (Gain) | 50,736 | (28,867 | ) | ||||||||||||||||||||||
Projected Benefit Obligation at December 31 | $ | 311,650 | $ | 254,039 | |||||||||||||||||||||
Weighted average assumptions used to determine benefit obligations at December 31: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Discount Rate | 4.35 | % | 5.3 | % | |||||||||||||||||||||
Rate of Increase in Future Compensation Level | 3.13 | % | 3.13 | % | |||||||||||||||||||||
The assumed rate of return on pension fund assets used for the determination of 2015 net periodic pension cost is 7.75%. The assumed long-term rate of return on plan assets is based primarily on asset category studies using historical market return and volatility data with forward looking estimates based on existing financial market conditions and forecasts of capital markets. Modest excess return expectations versus some market indices are incorporated into the return projections based on the actively managed structure of the investment programs and their records of achieving such returns historically. The Company reviews its rate of return on plan asset assumptions annually. The assumptions are largely based on the asset category rate-of-return assumptions developed annually with the Company’s pension plan investment advisors, as well as input from actuaries who work with the pension plan. | |||||||||||||||||||||||||
Market-related value of plan assets—The Company’s expected return on plan assets is determined based on the expected long-term rate of return on plan assets and the market-related value of plan assets. | |||||||||||||||||||||||||
The Company bases actuarial determination of pension plan expense or income on a market-related valuation of assets, which reduces year-to-year volatility. This market-related valuation calculation recognizes investment gains or losses over a five-year period from the year in which they occur. Investment gains or losses for this purpose are the difference between the expected return calculated using the market-related value of assets and the actual return based on the fair value of assets. Since the market-related valuation calculation recognizes gains or losses over a five-year period, the future value of the market-related assets will be impacted as previously deferred gains or losses are recognized. | |||||||||||||||||||||||||
Measurement Dates: | 2014 | 2013 | |||||||||||||||||||||||
Net Periodic Pension Cost | 1-Jan-14 | 1-Jan-13 | |||||||||||||||||||||||
End of Year Benefit Obligations | January 1, 2014 projected to December 31, 2014 | January 1, 2013 projected to December 31, 2013 | |||||||||||||||||||||||
Market Value of Assets | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
The estimated amounts of unrecognized net actuarial losses and prior service costs to be amortized from regulatory assets and accumulated other comprehensive loss into the net periodic pension cost in 2015 are: | |||||||||||||||||||||||||
(in thousands) | 2015 | ||||||||||||||||||||||||
Decrease in Regulatory Assets: | |||||||||||||||||||||||||
Amortization of Unrecognized Prior Service Cost | $ | 189 | |||||||||||||||||||||||
Amortization of Unrecognized Actuarial Loss | 6,529 | ||||||||||||||||||||||||
Decrease in Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||||
Amortization of Unrecognized Prior Service Cost | 5 | ||||||||||||||||||||||||
Amortization of Unrecognized Actuarial Loss | 161 | ||||||||||||||||||||||||
Total Estimated Amortization | $ | 6,884 | |||||||||||||||||||||||
Cash flows—The Company had no minimum funding requirement as of December 31, 2014, but made a discretionary plan contribution of $10,000,000 in January 2015. | |||||||||||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid out from plan assets: | |||||||||||||||||||||||||
(in thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | Years | |||||||||||||||||||
2020-2024 | |||||||||||||||||||||||||
$ | 11,858 | $ | 12,462 | $ | 13,116 | $ | 13,941 | $ | 14,665 | $ | 85,322 | ||||||||||||||
The following objectives guide the investment strategy of the Company’s pension plan (the Plan): | |||||||||||||||||||||||||
● | The assets of the Plan will be invested in accordance with all applicable laws in a manner consistent with fiduciary standards including Employee Retirement Income Security Act standards (if applicable). Specifically: | ||||||||||||||||||||||||
o | The safeguards and diversity that a prudent investor would adhere to must be present in the investment program. | ||||||||||||||||||||||||
o | All transactions undertaken on behalf of the Plan must be in the best interest of plan participants and their beneficiaries. | ||||||||||||||||||||||||
● | The primary objective of the Plan is to provide a source of retirement income for its participants and beneficiaries. | ||||||||||||||||||||||||
● | The near-term primary financial objective of the Plan is to improve the funded status of the Plan. | ||||||||||||||||||||||||
● | A secondary financial objective is to minimize pension funding and expense volatility where possible. | ||||||||||||||||||||||||
The asset allocation strategy developed by the Company’s Retirement Plans Administration Committee (the Committee) is based on the current needs of the Plan and the objectives listed above. An asset/liability review is conducted annually or as often as necessary to assess the impact of various asset allocations on funded status and other financial variables. The current needs of the Plan, the overall investment objectives above, the investment preferences and risk tolerance of the Committee and the desired degree of diversification suggest the need for an investment allocation including multiple asset classes. | |||||||||||||||||||||||||
The asset allocation in the table below contains guideline percentages, at market value, of the total Plan invested in various asset classes. The Permitted Range is a guide and will at times not reflect the actual asset allocation as this will be dictated by market conditions, the independent actions of the Committee and/or Investment Managers and required cash flows to and from the Plan. The Permitted Range anticipates this fluctuation and provides flexibility for the Investment Managers’ portfolios to vary around the target without the need for immediate rebalancing. The Investment Manager will proactively monitor the asset allocation and will direct the purchases and sales to remain within the stated ranges. | |||||||||||||||||||||||||
The policy of the Plan is to invest assets in accordance with the allocations shown below: | |||||||||||||||||||||||||
Permitted Range | |||||||||||||||||||||||||
Asset Class / PBO Funded Status | < 100% PBO | 100% PBO | 105% PBO | >0% PBO | |||||||||||||||||||||
Equity | 30% - 65 | % | 25% - 60 | % | 20% - 55 | % | 15% - 50 | % | |||||||||||||||||
Investment Grade Fixed Income | 35% - 75 | % | 40% - 80 | % | 45% - 85 | % | 50% - 90 | % | |||||||||||||||||
Below Investment Grade Fixed Income* | 0% - 15 | % | 0% - 15 | % | 0% - 15 | % | 0% - 15 | % | |||||||||||||||||
Other** | 0% - 20 | % | 0% - 20 | % | 0% - 20 | % | 0% - 20 | % | |||||||||||||||||
* Includes (but not limited to) High Yield Bond Fund and Emerging Markets Debt funds. | |||||||||||||||||||||||||
** Other category may include cash, alternatives, and/or other investment strategies that may be classified other than equity or fixed income, such as the Dynamic Asset Allocation fund. | |||||||||||||||||||||||||
The Company’s pension plan asset allocations at December 31, 2014 and 2013, by asset category are as follows: | |||||||||||||||||||||||||
Asset Allocation | 2014 | 2013 | |||||||||||||||||||||||
Large Capitalization Equity Securities | 21 | % | 21 | % | |||||||||||||||||||||
International Equity Securities | 18.9 | % | 21.7 | % | |||||||||||||||||||||
Small and Mid-Capitalization Equity Securities | 7.9 | % | 8.5 | % | |||||||||||||||||||||
SEI Dynamic Asset Allocation Fund | 5.5 | % | 5.2 | % | |||||||||||||||||||||
Equity Securities | 53.3 | % | 56.4 | % | |||||||||||||||||||||
Fixed-Income Securities and Cash | 42.7 | % | 39.3 | % | |||||||||||||||||||||
Other - SEI Special Situation Collective Investment Trust | 4 | % | 4.3 | % | |||||||||||||||||||||
100 | % | 100 | % | ||||||||||||||||||||||
Fair Value Measurements of Pension Fund Assets | |||||||||||||||||||||||||
ASC 715, Compensation – Retirement Benefits, requires disclosures about pension plan assets identified by the three levels of the fair value hierarchy established by ASC 820-10-35. The three levels defined by the hierarchy and examples of each level are as follows: | |||||||||||||||||||||||||
Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed by the New York Stock Exchange and commodity derivative contracts listed on the New York Mercantile Exchange. | |||||||||||||||||||||||||
Level 2 – Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, such as treasury securities with pricing interpolated from recent trades of similar securities, or priced with models using highly observable inputs, such as commodity options priced using observable forward prices and volatilities. | |||||||||||||||||||||||||
Level 3 – Significant inputs to pricing have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation and may include complex and subjective models and forecasts. | |||||||||||||||||||||||||
The following table presents, for each of these hierarchy levels, the Company’s pension fund assets measured at fair value as of December 31, 2014 and 2013: | |||||||||||||||||||||||||
2014 (in thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||||
Large Capitalization Equity Securities Mutual Fund | $ | 51,404 | |||||||||||||||||||||||
International Equity Securities Mutual Funds | 46,287 | ||||||||||||||||||||||||
Small and Mid-Capitalization Equity Securities Mutual Fund | 19,189 | ||||||||||||||||||||||||
SEI Dynamic Asset Allocation Mutual Fund | 13,543 | ||||||||||||||||||||||||
Fixed Income Securities Mutual Funds | 104,360 | ||||||||||||||||||||||||
Cash Management – Money Market Fund | 5 | ||||||||||||||||||||||||
SEI Special Situation Collective Investment Trust Fund | $ | 9,801 | |||||||||||||||||||||||
Total Assets | $ | 234,788 | $ | 9,801 | $ | -- | |||||||||||||||||||
2013 (in thousands) | |||||||||||||||||||||||||
Large Capitalization Equity Securities Mutual Fund | $ | 44,882 | |||||||||||||||||||||||
International Equity Securities Mutual Funds | 46,412 | ||||||||||||||||||||||||
Small and Mid-Capitalization Equity Securities Mutual Fund | 18,151 | ||||||||||||||||||||||||
SEI Dynamic Asset Allocation Mutual Fund | 11,159 | ||||||||||||||||||||||||
Fixed Income Securities Mutual Funds | 83,843 | ||||||||||||||||||||||||
Cash Management – Money Market Fund | -- | ||||||||||||||||||||||||
SEI Special Situation Collective Investment Trust Fund | $ | 9,170 | |||||||||||||||||||||||
Total Assets | $ | 204,447 | $ | 9,170 | $ | -- | |||||||||||||||||||
The investments held by the SEI Special Situation Collective Investment Trust on December 31, 2014 and 2013 consisted of investments primarily in hedge funds that pursue alternative strategies, private equity funds and hybrid funds, as well as investments directly in other securities and financial instruments, with the objective of achieving high returns balanced against an appropriate level of volatility and market exposure over a full market cycle. The net asset value of the SEI Special Situations Collective Investment Trust is determined by using the fair value of the portfolio as of the close of business at the end of the year. The fair value of the fund is calculated independently by the fund’s administrator and is reviewed by the Company. | |||||||||||||||||||||||||
Executive Survivor and Supplemental Retirement Plan (ESSRP) | |||||||||||||||||||||||||
The ESSRP is an unfunded, nonqualified benefit plan for executive officers and certain key management employees. The ESSRP provides defined benefit payments to these employees on their retirements for life or to their beneficiaries on their deaths for a 15-year postretirement period. Life insurance carried on certain plan participants is payable to the Company on the employee’s death. There are no plan assets in this nonqualified benefit plan due to the nature of the plan. | |||||||||||||||||||||||||
Components of net periodic pension benefit cost: | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Service Cost–Benefit Earned During the Period | $ | 51 | $ | 51 | $ | 45 | |||||||||||||||||||
Interest Cost on Projected Benefit Obligation | 1,520 | 1,408 | 1,479 | ||||||||||||||||||||||
Amortization of Prior Service Cost: | |||||||||||||||||||||||||
From Regulatory Asset | 22 | 22 | 22 | ||||||||||||||||||||||
From Other Comprehensive Income1 | 51 | 51 | 51 | ||||||||||||||||||||||
Amortization of Net Actuarial Loss: | |||||||||||||||||||||||||
From Regulatory Asset | 142 | 208 | 175 | ||||||||||||||||||||||
From Other Comprehensive Income2 | 46 | 313 | 152 | ||||||||||||||||||||||
Net Periodic Pension Cost | $ | 1,832 | $ | 2,053 | $ | 1,924 | |||||||||||||||||||
1Amortization of Prior Service Costs from Other Comprehensive Income Charged to: | |||||||||||||||||||||||||
Electric Operation and Maintenance Expenses | $ | 20 | $ | 20 | $ | 20 | |||||||||||||||||||
Other Nonelectric Expenses | 31 | 31 | 31 | ||||||||||||||||||||||
2Amortization of Net Actuarial Loss from Other Comprehensive Income Charged to: | |||||||||||||||||||||||||
Electric Operation and Maintenance Expenses | $ | 132 | $ | 193 | $ | 162 | |||||||||||||||||||
Other Nonelectric Expenses | (86 | ) | 120 | (10 | ) | ||||||||||||||||||||
Weighted average assumptions used to determine net periodic pension cost for the year ended December 31: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Discount Rate | 5.3 | % | 4.5 | % | 5.15 | % | |||||||||||||||||||
Rate of Increase in Future Compensation Level | 3.18 | % | 3.19 | % | 4.59 | % | |||||||||||||||||||
The following table presents amounts recognized in the consolidated balance sheets as of December 31: | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Regulatory Assets: | |||||||||||||||||||||||||
Unrecognized Prior Service Cost | $ | 91 | $ | 113 | |||||||||||||||||||||
Unrecognized Actuarial Loss | 3,238 | 1,971 | |||||||||||||||||||||||
Total Regulatory Assets | $ | 3,329 | $ | 2,084 | |||||||||||||||||||||
Projected Benefit Obligation Liability – Net Amount Recognized | $ | (35,650 | ) | $ | (29,321 | ) | |||||||||||||||||||
Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||||
Unrecognized Prior Service Cost | $ | 210 | $ | 261 | |||||||||||||||||||||
Unrecognized Actuarial Loss | 6,881 | 2,465 | |||||||||||||||||||||||
Total Accumulated Other Comprehensive Loss | $ | 7,091 | $ | 2,726 | |||||||||||||||||||||
The following tables provide a reconciliation of the changes in the fair value of plan assets and the plan’s projected benefit obligations over the two-year period ended December 31, 2014 and a statement of the funded status as of December 31 of both years: | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Reconciliation of Fair Value of Plan Assets: | |||||||||||||||||||||||||
Fair Value of Plan Assets at January 1 | $ | -- | $ | -- | |||||||||||||||||||||
Actual Return on Plan Assets | -- | -- | |||||||||||||||||||||||
Employer Contributions | 1,113 | 1,137 | |||||||||||||||||||||||
Benefit Payments | (1,113 | ) | (1,137 | ) | |||||||||||||||||||||
Fair Value of Plan Assets at December 31 | $ | -- | $ | -- | |||||||||||||||||||||
Reconciliation of Projected Benefit Obligation: | |||||||||||||||||||||||||
Projected Benefit Obligation at January 1 | $ | 29,321 | $ | 31,925 | |||||||||||||||||||||
Service Cost | 51 | 51 | |||||||||||||||||||||||
Interest Cost | 1,520 | 1,408 | |||||||||||||||||||||||
Benefit Payments | (1,113 | ) | (1,137 | ) | |||||||||||||||||||||
Plan Amendments | -- | -- | |||||||||||||||||||||||
Actuarial Loss (Gain) | 5,871 | (2,926 | ) | ||||||||||||||||||||||
Projected Benefit Obligation at December 31 | $ | 35,650 | $ | 29,321 | |||||||||||||||||||||
Reconciliation of Funded Status: | |||||||||||||||||||||||||
Funded Status at December 31 | $ | (35,650 | ) | $ | (29,321 | ) | |||||||||||||||||||
Unrecognized Net Actuarial Loss | 10,119 | 4,436 | |||||||||||||||||||||||
Unrecognized Prior Service Cost | 301 | 374 | |||||||||||||||||||||||
Cumulative Employer Contributions in Excess of Net Periodic Benefit Cost | $ | (25,230 | ) | $ | (24,511 | ) | |||||||||||||||||||
Weighted average assumptions used to determine benefit obligations at December 31: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Discount Rate | 4.35 | % | 5.3 | % | |||||||||||||||||||||
Rate of Increase in Future Compensation Level | 3.15 | % | 3.18 | % | |||||||||||||||||||||
The estimated amounts of unrecognized net actuarial losses and prior service costs to be amortized from regulatory assets and accumulated other comprehensive loss into the net periodic pension cost for the ESSRP in 2015 are: | |||||||||||||||||||||||||
(in thousands) | 2015 | ||||||||||||||||||||||||
Decrease in Regulatory Assets: | |||||||||||||||||||||||||
Amortization of Unrecognized Prior Service Cost | $ | 16 | |||||||||||||||||||||||
Amortization of Unrecognized Actuarial Loss | 334 | ||||||||||||||||||||||||
Decrease in Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||||
Amortization of Unrecognized Prior Service Cost | 38 | ||||||||||||||||||||||||
Amortization of Unrecognized Actuarial Loss | 602 | ||||||||||||||||||||||||
Total Estimated Amortization | $ | 990 | |||||||||||||||||||||||
Cash flows—The ESSRP is unfunded and has no assets; contributions are equal to the benefits paid to plan participants. The following benefit payments, which reflect future service, as appropriate, are expected to be paid: | |||||||||||||||||||||||||
Years | |||||||||||||||||||||||||
(in thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | |||||||||||||||||||
$ | 1,178 | $ | 1,399 | $ | 1,376 | $ | 1,423 | $ | 1,516 | $ | 10,904 | ||||||||||||||
Other Postretirement Benefits | |||||||||||||||||||||||||
The Company provides a portion of health insurance and life insurance benefits for retired OTP and corporate employees. Substantially all of the Company’s electric utility and corporate employees may become eligible for health insurance benefits if they reach age 55 and have 10 years of service. On adoption of Statement of Financial Accounting Standards No. 106, Employers’ Accounting for Postretirement Benefits Other Than Pensions, in January 1993, the Company elected to recognize its transition obligation related to postretirement benefits earned of approximately $14,964,000 over a period of 20 years. The transition obligation was fully recognized by December 31, 2012. There are no plan assets. | |||||||||||||||||||||||||
Components of net periodic postretirement benefit cost: | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Service Cost–Benefit Earned During the Period | $ | 1,055 | $ | 1,421 | $ | 1,544 | |||||||||||||||||||
Interest Cost on Projected Benefit Obligation | 2,200 | 2,050 | 2,574 | ||||||||||||||||||||||
Amortization of Transition Obligation | |||||||||||||||||||||||||
From Regulatory Asset | -- | -- | 729 | ||||||||||||||||||||||
From Other Comprehensive Income1 | -- | -- | 19 | ||||||||||||||||||||||
Amortization of Prior Service Cost | |||||||||||||||||||||||||
From Regulatory Asset | 205 | 205 | 206 | ||||||||||||||||||||||
From Other Comprehensive Income1 | 5 | 5 | 5 | ||||||||||||||||||||||
Amortization of Net Actuarial Loss | |||||||||||||||||||||||||
From Regulatory Asset | -- | 24 | 642 | ||||||||||||||||||||||
From Other Comprehensive Income1 | -- | 1 | 17 | ||||||||||||||||||||||
Net Periodic Postretirement Benefit Cost | $ | 3,465 | $ | 3,706 | $ | 5,736 | |||||||||||||||||||
Effect of Medicare Part D Subsidy | $ | (948 | ) | $ | (1,806 | ) | $ | (2,039 | ) | ||||||||||||||||
1Corporate cost included in Other Nonelectric Expenses. | |||||||||||||||||||||||||
Weighted average assumptions used to determine net periodic postretirement benefit cost for the year ended December 31: | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Discount Rate | 5.1 | % | 4.25 | % | 5.05 | % | |||||||||||||||||||
The following table presents amounts recognized in the consolidated balance sheets as of December 31: | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Regulatory Asset: | |||||||||||||||||||||||||
Unrecognized Prior Service Cost | $ | 335 | $ | 540 | |||||||||||||||||||||
Unrecognized Net Actuarial Loss (Gain) | 7,086 | (344 | ) | ||||||||||||||||||||||
Net Regulatory Asset | $ | 7,421 | $ | 196 | |||||||||||||||||||||
Projected Benefit Obligation Liability – Net Amount Recognized | $ | (53,638 | ) | $ | (45,221 | ) | |||||||||||||||||||
Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||||
Unrecognized Prior Service Cost | $ | 13 | $ | 18 | |||||||||||||||||||||
Unrecognized Net Actuarial Gain | (209 | ) | (261 | ) | |||||||||||||||||||||
Accumulated Other Comprehensive Gain | $ | (196 | ) | $ | (243 | ) | |||||||||||||||||||
The following tables provide a reconciliation of the changes in the fair value of plan assets and the plan’s projected benefit obligations and accrued postretirement benefit cost over the two-year period ended December 31, 2014: | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||
Reconciliation of Fair Value of Plan Assets: | |||||||||||||||||||||||||
Fair Value of Plan Assets at January 1 | $ | -- | $ | -- | |||||||||||||||||||||
Actual Return on Plan Assets | -- | -- | |||||||||||||||||||||||
Company Contributions | 2,320 | 2,012 | |||||||||||||||||||||||
Benefit Payments (Net of Medicare Part D Subsidy) | (5,017 | ) | (4,626 | ) | |||||||||||||||||||||
Participant Premium Payments | 2,697 | 2,614 | |||||||||||||||||||||||
Fair Value of Plan Assets at December 31 | $ | -- | $ | -- | |||||||||||||||||||||
Reconciliation of Projected Benefit Obligation: | |||||||||||||||||||||||||
Projected Benefit Obligation at January 1 | $ | 45,221 | $ | 58,883 | |||||||||||||||||||||
Service Cost (Net of Medicare Part D Subsidy) | 1,055 | 1,421 | |||||||||||||||||||||||
Interest Cost (Net of Medicare Part D Subsidy) | 2,200 | 2,050 | |||||||||||||||||||||||
Benefit Payments (Net of Medicare Part D Subsidy) | (5,017 | ) | (4,626 | ) | |||||||||||||||||||||
Participant Premium Payments | 2,697 | 2,614 | |||||||||||||||||||||||
Actuarial Loss (Gain) | 7,482 | (15,121 | ) | ||||||||||||||||||||||
Projected Benefit Obligation at December 31 | $ | 53,638 | $ | 45,221 | |||||||||||||||||||||
Reconciliation of Accrued Postretirement Cost: | |||||||||||||||||||||||||
Accrued Postretirement Cost at January 1 | $ | (45,268 | ) | $ | (43,574 | ) | |||||||||||||||||||
Expense | (3,465 | ) | (3,706 | ) | |||||||||||||||||||||
Net Company Contribution | 2,320 | 2,012 | |||||||||||||||||||||||
Accrued Postretirement Cost at December 31 | $ | (46,413 | ) | $ | (45,268 | ) | |||||||||||||||||||
Weighted average assumptions used to determine benefit obligations at December 31: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Discount Rate | 4.2 | % | 5.1 | % | |||||||||||||||||||||
Assumed healthcare cost-trend rates as of December 31: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
Healthcare Cost-Trend Rate Assumed for Next Year Pre-65 | 6.32 | % | 6.47 | % | |||||||||||||||||||||
Healthcare Cost-Trend Rate Assumed for Next Year Post-65 | 6.63 | % | 6.82 | % | |||||||||||||||||||||
Rate at Which the Cost-Trend Rate is Assumed to Decline | 5 | % | 5 | % | |||||||||||||||||||||
Year the Rate Reaches the Ultimate Trend Rate | 2025 | 2025 | |||||||||||||||||||||||
Assumed healthcare cost-trend rates have a significant effect on the amounts reported for healthcare plans. A one-percentage-point change in assumed healthcare cost-trend rates for 2014 would have the following effects: | |||||||||||||||||||||||||
(in thousands) | 1 Point | 1 Point | |||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||||
Effect on the Postretirement Benefit Obligation | $ | 7,442 | $ | (6,088 | ) | ||||||||||||||||||||
Effect on Total of Service and Interest Cost | $ | 516 | $ | (414 | ) | ||||||||||||||||||||
Effect on Expense | $ | 516 | $ | (606 | ) | ||||||||||||||||||||
Measurement Dates: | 2014 | 2013 | |||||||||||||||||||||||
Net Periodic Postretirement Benefit Cost | 1-Jan-14 | 1-Jan-13 | |||||||||||||||||||||||
End of Year Benefit Obligations | January 1, 2014 projected to December 31, 2014 | January 1, 2013 projected to December 31, 2013 | |||||||||||||||||||||||
The estimated net amounts of unrecognized prior service cost to be amortized from regulatory assets and accumulated other comprehensive loss into the net periodic postretirement benefit cost in 2015 are: | |||||||||||||||||||||||||
(in thousands) | 2015 | ||||||||||||||||||||||||
Decrease in Regulatory Assets: | |||||||||||||||||||||||||
Amortization of Unrecognized Prior Service Cost | $ | 205 | |||||||||||||||||||||||
Amortization of Unrecognized Actuarial Loss | 191 | ||||||||||||||||||||||||
Decrease in Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||||
Amortization of Unrecognized Prior Service Cost | 5 | ||||||||||||||||||||||||
Amortization of Unrecognized Actuarial Loss | 5 | ||||||||||||||||||||||||
Total Estimated Amortization | $ | 406 | |||||||||||||||||||||||
Cash flows—The Company expects to contribute $2.6 million net of expected employee contributions for the payment of retiree medical benefits and Medicare Part D subsidy receipts in 2015. The Company expects to receive a Medicare Part D subsidy from the Federal government of approximately $456,000 in 2015. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: | |||||||||||||||||||||||||
Years | |||||||||||||||||||||||||
(in thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | |||||||||||||||||||
$ | 2,638 | $ | 2,762 | $ | 2,925 | $ | 3,086 | $ | 3,247 | $ | 17,281 | ||||||||||||||
401K Plan | |||||||||||||||||||||||||
The Company sponsors a 401K plan for the benefit of all corporate and subsidiary company employees. Contributions made to these plans by the Company and its subsidiary companies included in continuing operations totaled $3,171,000 for 2014, $2,748,000 for 2013 and $2,283,000 for 2012. | |||||||||||||||||||||||||
Employee Stock Ownership Plan | |||||||||||||||||||||||||
The Company has a stock ownership plan for the benefit of all its electric utility employees. Contributions made by the Company were $696,000 for 2014, $705,000 for 2013 and $735,000 for 2012. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Fair Value of Financial Instruments | 12. Fair Value of Financial Instruments | ||||||||||||||||
The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: | |||||||||||||||||
Cash and Short‑Term Investments—The carrying amount approximates fair value because of the short‑term maturity of those instruments. | |||||||||||||||||
Short-Term Debt—The carrying amount approximates fair value because the debt obligations are short-term and the balances outstanding as of December 31, 2014 and December 31, 2013 related to the Otter Tail Corporation Credit Agreement and the OTP Credit Agreement were subject to variable interest rates of LIBOR plus 1.75% and LIBOR plus 1.25%, respectively, which approximate market rates. | |||||||||||||||||
Long‑Term Debt including Current Maturities—The fair value of the Company’s and OTP’s long-term debt is estimated based on the current market indications of rates available to the Company for the issuance of debt. The Company’s long-term debt subject to variable interest rates approximates fair value. The fair value measurements of the Company’s long-term debt issues fall into level 2 of the fair value hierarchy set forth in ASC 820. | |||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||
(in thousands) | Carrying | Fair Value | Carrying | Fair Value | |||||||||||||
Amount | Amount | ||||||||||||||||
Cash and Cash Equivalents | $ | -- | $ | -- | $ | 2,007 | $ | 2,007 | |||||||||
Short‑Term Debt | (10,854 | ) | (10,854 | ) | (51,195 | ) | (51,195 | ) | |||||||||
Long‑Term Debt including Current Maturities | (498,690 | ) | (600,828 | ) | (389,777 | ) | (427,796 | ) |
Property_Plant_and_Equipment
Property, Plant and Equipment | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment | 13. Property, Plant and Equipment | ||||||||
(in thousands) | December 31, | December 31, | |||||||
2014 | 2013 | ||||||||
Electric Plant in Service | |||||||||
Production | $ | 690,024 | $ | 679,067 | |||||
Transmission | 323,496 | 270,606 | |||||||
Distribution | 438,489 | 421,803 | |||||||
General | 93,103 | 89,408 | |||||||
Electric Plant in Service | 1,545,112 | 1,460,884 | |||||||
Construction Work in Progress | 240,170 | 184,780 | |||||||
Total Gross Electric Plant | 1,785,282 | 1,645,664 | |||||||
Less Accumulated Depreciation and Amortization | 584,956 | 554,818 | |||||||
Net Electric Plant | $ | 1,200,326 | $ | 1,090,846 | |||||
Nonelectric Operations Plant | |||||||||
Equipment | $ | 135,007 | $ | 131,075 | |||||
Buildings and Leasehold Improvements | 36,558 | 36,420 | |||||||
Land | 3,594 | 3,430 | |||||||
Nonelectric Operations Plant | 175,159 | 170,925 | |||||||
Construction Work in Progress | 8,507 | 2,682 | |||||||
Total Gross Nonelectric Plant | 183,666 | 173,607 | |||||||
Less Accumulated Depreciation and Amortization | 115,462 | 108,763 | |||||||
Net Nonelectric Operations Plant | $ | 68,204 | $ | 64,844 | |||||
Net Plant | $ | 1,268,530 | $ | 1,155,690 | |||||
The estimated service lives for rate-regulated properties is 5 to 70 years. For nonelectric property the estimated useful lives are from 3 to 40 years. | |||||||||
Service Life Range | |||||||||
(years) | Low | High | |||||||
Electric Fixed Assets: | |||||||||
Production Plant | 34 | 62 | |||||||
Transmission Plant | 40 | 55 | |||||||
Distribution Plant | 15 | 55 | |||||||
General Plant | 5 | 70 | |||||||
Nonelectric Fixed Assets: | |||||||||
Equipment | 3 | 12 | |||||||
Buildings and Leasehold Improvements | 7 | 40 |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
Income Taxes | 14. Income Taxes | ||||||||||||||||||||
The total income tax expense differs from the amount computed by applying the federal income tax rate (35% in 2014, 2013 and 2012) to net income before total income tax expense for the following reasons: | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||
Tax Computed at Federal Statutory Rate – Continuing Operations | $ | 25,704 | $ | 21,389 | $ | 18,622 | |||||||||||||||
Increases (Decreases) in Tax from: | |||||||||||||||||||||
Federal PTCs | (7,517 | ) | (6,612 | ) | (6,695 | ) | |||||||||||||||
State Income Taxes Net of Federal Income Tax Expense (Benefit) | 1,993 | 1,561 | (249 | ) | |||||||||||||||||
Section 199 Domestic Production Activities Deduction | (1,026 | ) | -- | -- | |||||||||||||||||
North Dakota Wind Tax Credit Amortization – Net of Federal Taxes | (849 | ) | (863 | ) | (891 | ) | |||||||||||||||
Dividend Received/Paid Deduction | (622 | ) | (632 | ) | (656 | ) | |||||||||||||||
Investment Tax Credit Amortization | (597 | ) | (597 | ) | (720 | ) | |||||||||||||||
Allowance for Funds Used During Construction - Equity | (505 | ) | (638 | ) | (409 | ) | |||||||||||||||
Corporate Owned Life Insurance | (354 | ) | (856 | ) | (585 | ) | |||||||||||||||
Tax Depreciation - Treasury Grant for Wind Farms | (152 | ) | (304 | ) | (304 | ) | |||||||||||||||
Differences Reversing in Excess of Federal Rates | (106 | ) | (100 | ) | (143 | ) | |||||||||||||||
Impact of Medicare Part D Change | -- | -- | (584 | ) | |||||||||||||||||
Permanent and Other Differences | 588 | 168 | (213 | ) | |||||||||||||||||
Total Income Tax Expense – Continuing Operations | $ | 16,557 | $ | 12,516 | $ | 7,173 | |||||||||||||||
Income Tax Expense (Benefit) – Discontinued Operations – U.S. | 3,952 | 1,042 | (19,707 | ) | |||||||||||||||||
Income Tax Expense (Benefit) – Continuing and Discontinued Operations | $ | 20,509 | $ | 13,558 | $ | (12,534 | ) | ||||||||||||||
Overall Effective Federal, State and Foreign Income Tax Rate | 26.2 | % | 21 | % | 70.4 | % | |||||||||||||||
Income Tax Expense From Continuing Operations Includes the Following: | |||||||||||||||||||||
Current Federal Income Taxes | $ | 124 | $ | 146 | $ | (3,198 | ) | ||||||||||||||
Current State Income Taxes | 5 | 37 | (361 | ) | |||||||||||||||||
Deferred Federal Income Taxes | 21,044 | 17,488 | 15,877 | ||||||||||||||||||
Deferred State Income Taxes | 4,347 | 2,917 | 3,161 | ||||||||||||||||||
Federal PTCs | (7,517 | ) | (6,612 | ) | (6,695 | ) | |||||||||||||||
North Dakota Wind Tax Credit Amortization – Net of Federal Taxes | (849 | ) | (863 | ) | (891 | ) | |||||||||||||||
Investment Tax Credit Amortization | (597 | ) | (597 | ) | (720 | ) | |||||||||||||||
Total | $ | 16,557 | $ | 12,516 | $ | 7,173 | |||||||||||||||
Income (Loss) Before Income Taxes – U.S. | $ | 78,232 | $ | 63,924 | $ | (13,426 | ) | ||||||||||||||
Income (Loss) Before Income Taxes – Foreign (Discontinued Operations) | -- | 499 | (4,381 | ) | |||||||||||||||||
Total Income (Loss) Before Income Taxes – Continuing and Discontinued Operations | $ | 78,232 | $ | 64,423 | $ | (17,807 | ) | ||||||||||||||
The Company’s deferred tax assets and liabilities were composed of the following on December 31: | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Deferred Tax Assets | |||||||||||||||||||||
Retirement Benefits Liabilities | $ | 42,706 | $ | 39,524 | |||||||||||||||||
Benefit Liabilities | 42,479 | 39,480 | |||||||||||||||||||
North Dakota Wind Tax Credits | 41,783 | 42,241 | |||||||||||||||||||
Federal PTCs | 30,189 | 33,620 | |||||||||||||||||||
Cost of Removal | 29,089 | 27,926 | |||||||||||||||||||
Differences Related to Property | 10,505 | 9,462 | |||||||||||||||||||
Net Operating Loss Carryforward | 7,842 | 15,151 | |||||||||||||||||||
Vacation Accrual | 2,154 | 1,843 | |||||||||||||||||||
Investment Tax Credits | 1,549 | 1,960 | |||||||||||||||||||
Other | 1,915 | 4,045 | |||||||||||||||||||
Total Deferred Tax Assets | $ | 210,211 | $ | 215,252 | |||||||||||||||||
Deferred Tax Liabilities | |||||||||||||||||||||
Differences Related to Property | $ | (313,959 | ) | $ | (302,852 | ) | |||||||||||||||
Retirement Benefits Regulatory Asset | (42,706 | ) | (39,524 | ) | |||||||||||||||||
Excess Tax over Book Pension | (12,928 | ) | (6,977 | ) | |||||||||||||||||
North Dakota Wind Tax Credits | (11,543 | ) | (11,543 | ) | |||||||||||||||||
Impact of State Net Operating Losses on Federal Taxes | (2,745 | ) | (3,088 | ) | |||||||||||||||||
Regulatory Asset | (2,087 | ) | (1,805 | ) | |||||||||||||||||
Other | (5,571 | ) | (6,360 | ) | |||||||||||||||||
Total Deferred Tax Liabilities | $ | (391,539 | ) | $ | (372,149 | ) | |||||||||||||||
Deferred Income Taxes | $ | (181,328 | ) | $ | (156,897 | ) | |||||||||||||||
Federal PTCs are earned as wind energy is generated based on a per kwh rate prescribed in applicable federal statutes. OTP’s kwh generation from its wind turbines eligible for PTCs increased 13.8% in 2014 compared with 2013. North Dakota wind energy credits are based on dollars invested in qualifying facilities and are being recognized on a straight-line basis over 25 years. | |||||||||||||||||||||
Schedule of expiration of tax credits and tax net operating losses available as of December 31, 2014: | |||||||||||||||||||||
(in thousands) | Amount | 2015 | 2016 | 2017 | 2024-33 | ||||||||||||||||
United States | |||||||||||||||||||||
Federal Tax Credits | $ | 31,913 | $ | -- | $ | -- | $ | -- | $ | 31,913 | |||||||||||
State Net Operating Losses | 5,829 | -- | -- | -- | 5,829 | ||||||||||||||||
State Tax Credits | 38,654 | 2,339 | 2,339 | 389 | 33,587 | ||||||||||||||||
The carryforward period on a portion of the North Dakota wind tax credits from the Langdon wind project is five years. OTP has adjusted its Deferred Tax Assets and Deferred Tax Credits by $5.1 million for potential unused North Dakota wind tax credits related to the Langdon wind project. | |||||||||||||||||||||
The following table summarizes the activity related to our unrecognized tax benefits: | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||
Balance on January 1 | $ | 4,239 | $ | 4,436 | $ | 12,138 | |||||||||||||||
Increases Related to Tax Positions for Prior Years | 120 | 98 | -- | ||||||||||||||||||
Decreases Related to Tax Positions for Prior Years | (4,142 | ) | (295 | ) | (6,802 | ) | |||||||||||||||
Increases Related to Tax Positions for Current Year | 5 | -- | -- | ||||||||||||||||||
Uncertain Positions Resolved During Year | -- | -- | (900 | ) | |||||||||||||||||
Balance on December 31 | $ | 222 | $ | 4,239 | $ | 4,436 | |||||||||||||||
The balance of unrecognized tax benefits as of December 31, 2014 would reduce the Company’s effective tax rate if recognized. The total amount of unrecognized tax benefits as of December 31, 2014 is not expected to change significantly within the next 12 months. The Company classifies interest and penalties on tax uncertainties as components of the provision for income taxes in our consolidated statement of income. There was no amount accrued for interest on tax uncertainties as of December 31, 2014. | |||||||||||||||||||||
The Company and its subsidiaries file a consolidated U.S. federal income tax return and various state and foreign income tax returns. As of December 31, 2014, with limited exceptions, the Company is no longer subject to examinations by taxing authorities for tax years prior to 2011. On September 13, 2013 the IRS and U.S. Treasury issued final regulations on the deductibility and capitalization of expenditures related to tangible property, generally effective for tax years beginning on or after January 1, 2014. Taxpayers were allowed to elect early adoption of the regulations for the 2012 or 2013 tax year. Deferred tax liabilities at December 31, 2014 are not materially affected by the regulations. The final regulations do not impact the effect of Revenue Procedure 2013-24 issued on April 30, 2013, which provided guidance for repairs related to generation property. Among other things, the Revenue Procedure listed units of property and material components of units of property for purposes of analyzing repair versus capitalization issues. The Company will adopt Revenue Procedure 2013-24 and the final tangible property regulations for income tax filings for tax year 2014. |
Asset_Retirement_Obligations_A
Asset Retirement Obligations (AROs) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Asset Retirement Obligation Disclosure [Abstract] | |||||||||
Asset Retirement Obligations (AROs) | 15. Asset Retirement Obligations (AROs) | ||||||||
The Company’s AROs are related to OTP’s coal-fired generation plants and its 92 wind turbines located in North Dakota. The AROs include items such as site restoration, closure of ash pits, and removal of certain structures, generators, asbestos and storage tanks. The Company has legal obligations associated with the retirement of a variety of other long-lived tangible assets used in electric operations where the estimated settlement costs are individually and collectively immaterial. The Company has no assets legally restricted for the settlement of any of its AROs. | |||||||||
OTP recorded no new AROs in 2014. | |||||||||
Reconciliations of carrying amounts of the present value of the Company’s legal AROs, capitalized asset retirement costs and related accumulated depreciation and a summary of settlement activity for the years ended December 31, 2014 and 2013 are presented in the following table: | |||||||||
(in thousands) | 2014 | 2013 | |||||||
Asset Retirement Obligations | |||||||||
Beginning Balance | $ | 5,661 | $ | 5,207 | |||||
New Obligations Recognized | -- | -- | |||||||
Adjustments Due to Revisions in Cash Flow Estimates | 1,582 | -- | |||||||
Accrued Accretion | 478 | 454 | |||||||
Settlements | -- | -- | |||||||
Ending Balance | $ | 7,721 | $ | 5,661 | |||||
Asset Retirement Costs Capitalized | |||||||||
Beginning Balance | $ | 1,477 | $ | 1,477 | |||||
New Obligations Recognized | -- | -- | |||||||
Adjustments Due to Revisions in Cash Flow Estimates | 1,582 | -- | |||||||
Settlements | -- | -- | |||||||
Ending Balance | $ | 3,059 | $ | 1,477 | |||||
Accumulated Depreciation - Asset Retirement Costs Capitalized | |||||||||
Beginning Balance | $ | 462 | $ | 407 | |||||
New Obligations Recognized | -- | -- | |||||||
Adjustments Due to Revisions in Cash Flow Estimates | -- | -- | |||||||
Depreciation Expense | 65 | 55 | |||||||
Settlements | -- | -- | |||||||
Ending Balance | $ | 527 | $ | 462 | |||||
Settlements | None | None | |||||||
Original Capitalized Asset Retirement Cost - Retired | $ | -- | $ | -- | |||||
Accumulated Depreciation | -- | -- | |||||||
Asset Retirement Obligation | $ | -- | $ | -- | |||||
Settlement Cost | -- | -- | |||||||
Gain on Settlement – Deferred Under Regulatory Accounting | $ | -- | $ | -- |
Discontinued_Operations
Discontinued Operations | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||
Discontinued Operations | 16. Discontinued Operations | ||||||||||||||||||||||||||||||||||||
On December 31, 2014 the Company was in the process of negotiating the sales of Foley and Aevenia, our Construction segment subsidiaries. The Company has entered into signed letters of intent to sell Aevenia and Foley and expects to close on the respective transactions by the end of the first quarter of 2015. These companies’ assets met the criteria to be classified as held for sale on December 31, 2014 and, as such, the companies are being reported as discontinued operations as of December 31, 2014. | |||||||||||||||||||||||||||||||||||||
On February 8, 2013 the Company sold substantially all the assets of Shrco, formerly included in the Company’s Manufacturing segment, for approximately $13.0 million in cash and received a working capital true-up of approximately $2.4 million in June 2013. On January 18, 2012 the Company sold the assets of Aviva, a subsidiary of Shrco, for $0.3 million in cash. For discontinued operations reporting, Aviva’s results are included in Shrco’s consolidated results. | |||||||||||||||||||||||||||||||||||||
On November 30, 2012 the Company completed the sale of the assets of IMD for total proceeds, net of commissions and selling costs, of $18.1 million. Prior to the sale, IMD was the only remaining entity in the Company’s former Wind Energy segment. | |||||||||||||||||||||||||||||||||||||
On February 29, 2012 the Company completed the sale of DMS, its health services company, for $24.0 million in cash net of commissions and selling costs, which was reduced by a $1.7 million working capital settlement paid to the buyer in February 2013. The DMS working capital settlement was estimated to be $1.9 million at the time of the sale. The final settlement resulted in the Company recording a $0.2 million gain on the sale of DMS in the first quarter of 2013. DMS was the only business in the Company’s former Health Services segment. | |||||||||||||||||||||||||||||||||||||
On December 29, 2011 the Company completed the sale of Wylie for approximately $25.0 million in cash. Wylie and IMD made up the Company’s former Wind Energy segment. | |||||||||||||||||||||||||||||||||||||
On May 6, 2011 the Company completed the sale of IPH for approximately $86.0 million in cash. IPH was the only business in the Company’s former Food Ingredient Processing segment. | |||||||||||||||||||||||||||||||||||||
The Company’s Wind Energy, Health Services, Food Ingredient Processing and Construction segments were eliminated as a result of the sales of IMD, DMS and IPH and the classifications of Foley and Aevenia as discontinued operations. The financial position, results of operations, and cash flows of Foley, Aevenia, IMD, Wylie, Shrco, DMS and IPH are reported as discontinued operations in the Company’s consolidated financial statements. Following are summary presentations of the results of discontinued operations for the years ended December 31, 2014, 2013 and 2012 and major components of assets and liabilities of discontinued operations as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||||||||
For the Year Ended December 31, 2014 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Foley | Aevenia | IMD | Shrco | Intercompany Transactions Adjustment | Total | |||||||||||||||||||||||||||||||
Operating Revenues | $ | 105,333 | $ | 44,527 | $ | -- | $ | -- | $ | -- | $ | 149,860 | |||||||||||||||||||||||||
Operating Expenses | 100,826 | 40,297 | 19 | (180 | ) | (960 | ) | 140,002 | |||||||||||||||||||||||||||||
Asset Impairment Charge | 5,605 | -- | -- | -- | -- | 5,605 | |||||||||||||||||||||||||||||||
Interest Expense | 510 | 184 | -- | -- | (694 | ) | -- | ||||||||||||||||||||||||||||||
Other (Deductions) Income | (38 | ) | 304 | -- | 277 | (4 | ) | 539 | |||||||||||||||||||||||||||||
Income Tax Expense (Benefit) | 1,388 | 1,729 | (8 | ) | 183 | 660 | 3,952 | ||||||||||||||||||||||||||||||
Net (Loss) Income | $ | (3,034 | ) | $ | 2,621 | $ | (11 | ) | $ | 274 | $ | 990 | $ | 840 | |||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Foley | Aevenia | IMD | Wylie | Shrco | DMS | Intercompany Transactions Adjustment | Total | |||||||||||||||||||||||||||||
Operating Revenues | $ | 110,097 | $ | 39,813 | $ | -- | $ | -- | $ | 2,016 | $ | -- | $ | (11 | ) | $ | 151,915 | ||||||||||||||||||||
Operating Expenses | 109,036 | 38,257 | (988 | ) | 640 | 2,622 | (269 | ) | (11 | ) | 149,287 | ||||||||||||||||||||||||||
Interest Expense | 249 | 207 | -- | -- | -- | -- | (452 | ) | 4 | ||||||||||||||||||||||||||||
Other Income (Deductions) | 4 | (5 | ) | 412 | -- | 67 | -- | (5 | ) | 473 | |||||||||||||||||||||||||||
Income Tax Expense (Benefit) | 331 | 518 | 370 | (256 | ) | (213 | ) | 108 | 179 | 1,037 | |||||||||||||||||||||||||||
Net Income (Loss) from Operations | 485 | 826 | 1,030 | (384 | ) | (326 | ) | 161 | 268 | 2,060 | |||||||||||||||||||||||||||
Gain on Disposition Before Taxes | -- | -- | -- | -- | 16 | 200 | -- | 216 | |||||||||||||||||||||||||||||
Income Tax Expense on Disposition | -- | -- | -- | -- | 6 | -- | -- | 6 | |||||||||||||||||||||||||||||
Net Gain on Disposition | -- | -- | -- | -- | 10 | 200 | -- | 210 | |||||||||||||||||||||||||||||
Net Income (Loss) | $ | 485 | $ | 826 | $ | 1,030 | $ | (384 | ) | $ | (316 | ) | $ | 361 | $ | 268 | $ | 2,270 | |||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Foley | Aevenia | IMD | Wylie | Shrco | DMS | IPH | Intercompany Transactions Adjustment | Total | ||||||||||||||||||||||||||||
Operating Revenues | $ | 93,598 | $ | 55,494 | $ | 186,151 | $ | -- | $ | 32,563 | $ | 16,362 | $ | -- | $ | (2,032 | ) | $ | 382,136 | ||||||||||||||||||
Operating Expenses | 109,493 | 51,873 | 184,462 | 179 | 36,163 | 14,741 | -- | (2,032 | ) | 394,879 | |||||||||||||||||||||||||||
Asset Impairment Charge | -- | -- | 45,573 | -- | 7,747 | -- | -- | -- | 53,320 | ||||||||||||||||||||||||||||
Interest Expense | 689 | 351 | 5,787 | -- | 1,553 | 279 | -- | (8,482 | ) | 177 | |||||||||||||||||||||||||||
Other Income | -- | 169 | 135 | -- | 15 | 122 | -- | -- | 441 | ||||||||||||||||||||||||||||
Income Tax (Benefit) Expense | (6,630 | ) | 1,174 | (15,792 | ) | 13 | (4,021 | ) | 1,734 | 106 | 3,393 | (20,023 | ) | ||||||||||||||||||||||||
Net (Loss) Income from Operations | (9,954 | ) | 2,265 | (33,744 | ) | (192 | ) | (8,864 | ) | (270 | ) | (106 | ) | 5,089 | (45,776 | ) | |||||||||||||||||||||
Loss on Disposition Before Taxes | -- | -- | -- | (62 | ) | -- | (5,154 | ) | -- | -- | (5,216 | ) | |||||||||||||||||||||||||
Income Tax Expense (Benefit) on Disposition | -- | -- | -- | 460 | -- | (145 | ) | -- | -- | 315 | |||||||||||||||||||||||||||
Net Loss on Disposition | -- | -- | -- | (522 | ) | -- | (5,009 | ) | -- | -- | (5,531 | ) | |||||||||||||||||||||||||
Net (Loss) Income | $ | (9,954 | ) | $ | 2,265 | $ | (33,744 | ) | $ | (714 | ) | $ | (8,864 | ) | $ | (5,279 | ) | $ | (106 | ) | $ | 5,089 | $ | (51,307 | ) | ||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Foley | Aevenia | IMD | Shrco | Total | ||||||||||||||||||||||||||||||||
Current Assets | $ | 29,897 | $ | 5,277 | $ | -- | $ | -- | $ | 35,174 | |||||||||||||||||||||||||||
Goodwill and Intangibles | 2,814 | -- | -- | -- | 2,814 | ||||||||||||||||||||||||||||||||
Net Plant | 4,445 | 6,224 | -- | -- | 10,669 | ||||||||||||||||||||||||||||||||
Assets of Discontinued Operations | $ | 37,156 | $ | 11,501 | $ | -- | $ | -- | $ | 48,657 | |||||||||||||||||||||||||||
Current Liabilities | $ | 17,114 | $ | 2,916 | $ | 1,840 | $ | 994 | $ | 22,864 | |||||||||||||||||||||||||||
Deferred Income Taxes | 2,065 | 2,630 | -- | -- | 4,695 | ||||||||||||||||||||||||||||||||
Liabilities of Discontinued Operations | $ | 19,179 | $ | 5,546 | $ | 1,840 | $ | 994 | $ | 27,559 | |||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Foley | Aevenia | IMD | Shrco | Total | ||||||||||||||||||||||||||||||||
Current Assets | $ | 21,408 | $ | 8,123 | $ | -- | $ | 38 | $ | 29,569 | |||||||||||||||||||||||||||
Goodwill and Intangibles | 8,420 | 163 | -- | -- | 8,583 | ||||||||||||||||||||||||||||||||
Net Plant | 5,225 | 6,101 | -- | -- | 11,326 | ||||||||||||||||||||||||||||||||
Assets of Discontinued Operations | $ | 35,053 | $ | 14,387 | $ | -- | $ | 38 | $ | 49,478 | |||||||||||||||||||||||||||
Current Liabilities | $ | 29,766 | $ | 2,499 | $ | 2,196 | $ | 1,441 | $ | 35,902 | |||||||||||||||||||||||||||
Deferred Income Taxes | 1,892 | 1,489 | -- | -- | 3,381 | ||||||||||||||||||||||||||||||||
Liabilities of Discontinued Operations | $ | 31,658 | $ | 3,988 | $ | 2,196 | $ | 1,441 | $ | 39,283 | |||||||||||||||||||||||||||
Included in current liabilities of discontinued operations are warranty reserves. Details regarding the warranty reserves follow: | |||||||||||||||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||||||||||||||
Warranty Reserve Balance, Beginning of Year | $ | 3,087 | $ | 5,027 | |||||||||||||||||||||||||||||||||
Provision for Warranties Issued During the Year | -- | 188 | |||||||||||||||||||||||||||||||||||
Less Settlements Made During the Year | (372 | ) | (715 | ) | |||||||||||||||||||||||||||||||||
Decrease in Warranty Estimates for Prior Years | (188 | ) | (1,413 | ) | |||||||||||||||||||||||||||||||||
Warranty Reserve Balance, End of Year | $ | 2,527 | $ | 3,087 | |||||||||||||||||||||||||||||||||
The warranty reserve balances as of December 31, 2014 and December 31, 2013 relate entirely to products produced by the Company’s former wind tower and waterfront equipment manufacturing companies. Expenses associated with remediation activities of these companies could be substantial. Although the assets of these companies have been sold and their operating results are reported under discontinued operations in the Company’s consolidated statements of income, the Company retains responsibility for warranty claims related to the products they produced prior to the sales of these companies. For wind towers, the potential exists for multiple claims based on one defect repeated throughout the production process or for claims where the cost to repair or replace the defective part is highly disproportionate to the original cost of the part. For example, if the Company is required to cover remediation expenses in addition to regular warranty coverage, the Company could be required to accrue additional expenses and experience additional unplanned cash expenditures which could adversely affect the Company’s consolidated results of operations and financial condition. | |||||||||||||||||||||||||||||||||||||
Commitments under operating lease obligations for Foley and Aevenia totaled $1.9 million on December 31, 2014. |
Subsequent_Events
Subsequent Events | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Subsequent Events [Abstract] | ||||||||||
Subsequent Events | 17. Subsequent Events | |||||||||
Stock Incentive Awards | ||||||||||
On February 6, 2015 the Company’s board of directors granted the following stock incentive awards to the Company’s executive officers under the 2014 Stock Incentive Plan: | ||||||||||
Award | Shares/Units Granted | Weighted Average | Vesting | |||||||
Grant-Date | ||||||||||
Fair Value | ||||||||||
per Award | ||||||||||
Restricted Stock Units Granted to Executive Officers | 20,900 | $ | 31.675 | 25% per year through February 6, 2019 | ||||||
Restricted Stock Units Granted to Executive Officer | 6,400 | $ | 31.675 | 100% on February 6, 2020 | ||||||
Stock Performance Awards Granted to Executive Officers | 77,500 | $ | 26.99 | 31-Dec-17 | ||||||
The vesting of restricted stock units is accelerated in the event of a change in control, disability, death or retirement or, subject to proration in certain cases. All restricted stock units granted to executive officers are eligible to receive dividend equivalent payments on all unvested awards over the awards respective vesting periods, subject to forfeiture under the terms of the restricted stock unit award agreements. The grant-date fair value of each restricted stock unit was the average of the high and low market price per share on the date of grant. | ||||||||||
Under the performance share awards the aggregate award for performance at target is 77,500 shares. For target performance the Company’s executive officers would earn an aggregate of 51,667 common shares based on the Company’s total shareholder return relative to the total shareholder return of the companies that comprise the Edison Electric Institute Index over the performance measurement period of January 1, 2015 through December 31, 2017, with the beginning and ending share values based on the average closing price of a share of the Company’s common stock for the 20 trading days immediately following January 1, 2015 and the average closing price for the 20 trading days immediately preceding January 1, 2018. The Company’s executive officers would also earn an aggregate of 25,833 common shares for achieving the target set for the Company’s 3-year average adjusted return on equity. Actual payment may range from zero to 150% of the target amount, or up to 116,250 common shares. The executive officers have no voting or dividend rights related to these shares until the shares, if any, are issued at the end of the performance period. The terms of these awards are such that the entire award will be classified and accounted for as a liability, as required under ASC 718, and will be measured over the performance period based on the fair value of the award at the end of each reporting period subsequent to the grant date. | ||||||||||
Under the 2015 Performance Award Agreements, payment and the amount of payment in the event of retirement, resignation for good reason or involuntary termination without cause is to be made at the end of the performance period based on actual performance, subject to proration in certain cases, except that the payment of performance awards granted to certain officers who are parties to Executive Employment Agreements with the Company is to be made at target at the date of any such event. | ||||||||||
The end of the period over which compensation expense is recognized for the above share-based awards for the individual grantees is the shorter of the indicated vesting period for the respective awards or the date the grantee becomes eligible for retirement as defined in their award agreement. | ||||||||||
Sale of Aevenia | ||||||||||
On February 24, 2015 the Company entered into an agreement to sell Aevenia for $25 million in cash plus adjustments for working capital and final assets to be determined within 90 days of closing. The sale of Aevenia is subject to certain closing conditions and is expected to close by February 28, 2015. |
SCHEDULE_1_CONDENSED_FINANCIAL
SCHEDULE 1 - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | SCHEDULE 1 - CONDENSED FINANCIAL INFORMATION OF REGISTRANT | ||||||||||||||||||||||||
OTTER TAIL CORPORATION (PARENT COMPANY) | |||||||||||||||||||||||||
Condensed Balance Sheets, December 31 | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||
Current Assets | |||||||||||||||||||||||||
Cash and Cash Equivalents | $ | -- | $ | 7,907 | |||||||||||||||||||||
Accounts Receivable from Subsidiaries | 4,651 | 1,736 | |||||||||||||||||||||||
Interest Receivable from Subsidiaries | 191 | 192 | |||||||||||||||||||||||
Notes Receivable from Subsidiaries | 13,553 | 5,703 | |||||||||||||||||||||||
Deferred Income Taxes | 13,895 | 28,853 | |||||||||||||||||||||||
Other | 1,105 | 947 | |||||||||||||||||||||||
Total Current Assets | 33,395 | 45,338 | |||||||||||||||||||||||
Investments in Subsidiaries | 605,242 | 541,291 | |||||||||||||||||||||||
Notes Receivable from Subsidiaries | 52,060 | 52,249 | |||||||||||||||||||||||
Deferred Income Taxes | 36,632 | 25,861 | |||||||||||||||||||||||
Other Assets | 27,365 | 25,456 | |||||||||||||||||||||||
Total Assets | $ | 754,694 | $ | 690,195 | |||||||||||||||||||||
LIABILITIES AND EQUITY | |||||||||||||||||||||||||
Current Liabilities | |||||||||||||||||||||||||
Accounts Payable to Subsidiaries | $ | 5,990 | $ | 5,961 | |||||||||||||||||||||
Notes Payable to Subsidiaries | 67,218 | 62,562 | |||||||||||||||||||||||
Other | 18,371 | 5,122 | |||||||||||||||||||||||
Total Current Liabilities | 91,579 | 73,645 | |||||||||||||||||||||||
Other Noncurrent Liabilities | 36,860 | 28,031 | |||||||||||||||||||||||
Commitments and Contingencies | |||||||||||||||||||||||||
Capitalization | |||||||||||||||||||||||||
Long-Term Debt, Net of Current Maturities | 53,489 | 53,689 | |||||||||||||||||||||||
Common Shareholder Equity | 572,766 | 534,830 | |||||||||||||||||||||||
Total Capitalization | 626,255 | 588,519 | |||||||||||||||||||||||
Total Liabilities and Equity | $ | 754,694 | $ | 690,195 | |||||||||||||||||||||
See accompanying notes to condensed financial statements. | |||||||||||||||||||||||||
OTTER TAIL CORPORATION (PARENT COMPANY) | |||||||||||||||||||||||||
Condensed Statements of Income--For the Years Ended December 31 | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Operating Loss | |||||||||||||||||||||||||
Revenue | $ | -- | $ | -- | $ | -- | |||||||||||||||||||
Operating Expenses | 12,593 | 14,150 | 15,197 | ||||||||||||||||||||||
Operating Loss | (12,593 | ) | (14,150 | ) | (15,197 | ) | |||||||||||||||||||
Other Income (Expense) | |||||||||||||||||||||||||
Equity Income in Earnings of Subsidiaries | 64,926 | 66,468 | 8,430 | ||||||||||||||||||||||
Loss on Early Retirement of Debt | -- | (10,252 | ) | (13,106 | ) | ||||||||||||||||||||
Interest Charges | (6,326 | ) | (9,940 | ) | (13,994 | ) | |||||||||||||||||||
Interest Charges to Subsidiaries | (117 | ) | (494 | ) | (512 | ) | |||||||||||||||||||
Interest Income from Subsidiaries | 4,980 | 5,318 | 15,700 | ||||||||||||||||||||||
Other Income | 1,379 | 1,413 | 1,426 | ||||||||||||||||||||||
Total Other Income (Expense) | 64,842 | 52,513 | (2,056 | ) | |||||||||||||||||||||
Income Before Income Taxes – Continuing Operations | 52,249 | 38,363 | (17,253 | ) | |||||||||||||||||||||
Income Tax Benefit | (5,474 | ) | (12,502 | ) | (11,980 | ) | |||||||||||||||||||
Net Income (Loss) from Continuing Operations | 57,723 | 50,865 | (5,273 | ) | |||||||||||||||||||||
Net Income (Loss) from Discontinued Operations | -- | -- | -- | ||||||||||||||||||||||
Total Net Income (Loss) | 57,723 | 50,865 | (5,273 | ) | |||||||||||||||||||||
Preferred Dividend Requirement and Other Adjustments | -- | 513 | 736 | ||||||||||||||||||||||
Income (Loss) Available for Common Shares | $ | 57,723 | $ | 50,352 | $ | (6,009 | ) | ||||||||||||||||||
See accompanying notes to condensed financial statements. | |||||||||||||||||||||||||
OTTER TAIL CORPORATION (PARENT COMPANY) | |||||||||||||||||||||||||
Condensed Statements of Cash Flows--For the Years Ended December 31 | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Cash Flows from Operating Activities | |||||||||||||||||||||||||
Net Cash Provided by Operating Activities | $ | 47,697 | $ | 70,376 | $ | 43,904 | |||||||||||||||||||
Cash Flows from Investing Activities | |||||||||||||||||||||||||
(Investment in Subsidiaries) Return of Capital | (44,000 | ) | 150,381 | (137,726 | ) | ||||||||||||||||||||
Debt (Issued to) Repaid by Subsidiaries | (7,662 | ) | (141,919 | ) | 239,452 | ||||||||||||||||||||
Cash Used in Investing Activities | (44 | ) | (37 | ) | (69 | ) | |||||||||||||||||||
Net Cash (Used in) Provided by Investing Activities | (51,706 | ) | 8,425 | 101,657 | |||||||||||||||||||||
Cash Flows from Financing Activities | |||||||||||||||||||||||||
Change in Checks Written in Excess of Cash | 215 | - | - | ||||||||||||||||||||||
Net Short-Term Borrowings | 10,854 | - | - | ||||||||||||||||||||||
Borrowings from Subsidiaries | 4,656 | - | - | ||||||||||||||||||||||
Proceeds from Issuance of Common Stock | 26,259 | 1,821 | - | ||||||||||||||||||||||
Common Stock Issuance Expenses | (673 | ) | (3 | ) | (370 | ) | |||||||||||||||||||
Payments for Retirement of Capital Stock | (590 | ) | (15,723 | ) | (111 | ) | |||||||||||||||||||
Short-Term and Long-Term Debt Issuance Expenses | (170 | ) | (238 | ) | (700 | ) | |||||||||||||||||||
Payments for Retirement of Long-Term Debt | (188 | ) | (47,846 | ) | (50,164 | ) | |||||||||||||||||||
Premium Paid for Early Retirement of Long-Term Debt | -- | (9,889 | ) | (12,500 | ) | ||||||||||||||||||||
Dividends Paid and Other Distributions | (44,261 | ) | (43,818 | ) | (43,976 | ) | |||||||||||||||||||
Net Cash Used in Financing Activities | (3,898 | ) | (115,696 | ) | (107,821 | ) | |||||||||||||||||||
Net Change in Cash and Cash Equivalents | (7,907 | ) | (36,895 | ) | 37,740 | ||||||||||||||||||||
Cash and Cash Equivalents at Beginning of Period | 7,907 | 44,802 | 7,062 | ||||||||||||||||||||||
Cash and Cash Equivalents at End of Period | $ | -- | $ | 7,907 | $ | 44,802 | |||||||||||||||||||
See accompanying notes to condensed financial statements. | |||||||||||||||||||||||||
Otter Tail Corporation (Parent Company) | |||||||||||||||||||||||||
Notes to Condensed Financial Statements | |||||||||||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012 | |||||||||||||||||||||||||
Incorporated by reference are Otter Tail Corporation’s consolidated statements of comprehensive income and common shareholders’ equity in Part II, Item 8. | |||||||||||||||||||||||||
Basis of Presentation | |||||||||||||||||||||||||
The condensed financial information of Otter Tail Corporation is presented to comply with Rule 12-04 of Regulation S-X. The unconsolidated condensed financial statements do not reflect all of the information and notes normally included with financial statements prepared in accordance with GAAP. Therefore, these condensed financial statements should be read with the consolidated financial statements and related notes included in this Annual Report on Form 10-K. | |||||||||||||||||||||||||
Otter Tail Corporation’s investments in subsidiaries are presented under the equity method of accounting. Under this method, the assets and liabilities of subsidiaries are not consolidated. The investments in net assets of the subsidiaries are recorded in the balance sheets. The income (loss) from operations of the subsidiaries is reported on a net basis as equity income (loss) in earnings of subsidiaries. | |||||||||||||||||||||||||
Related Party Transactions | |||||||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||
(in thousands) | Accounts | Interest | Current | Long-Term | Accounts | Current | |||||||||||||||||||
Receivable | Receivable | Notes | Notes | Payable | Notes | ||||||||||||||||||||
Receivable | Receivable | Payable | |||||||||||||||||||||||
Otter Tail Power Company | $ | 3,599 | $ | -- | $ | -- | $ | -- | $ | 42 | $ | -- | |||||||||||||
Vinyltech Corporation | 2 | 32 | -- | 8,500 | -- | 13,995 | |||||||||||||||||||
Northern Pipe Products, Inc. | -- | 8 | -- | 3,360 | -- | 9,233 | |||||||||||||||||||
BTD Manufacturing, Inc. | 33 | 107 | -- | 28,500 | -- | 55 | |||||||||||||||||||
IMD, Inc. | -- | -- | 1,602 | -- | -- | -- | |||||||||||||||||||
Shrco, Inc. | -- | -- | -- | -- | -- | 378 | |||||||||||||||||||
T.O. Plastics, Inc. | -- | 28 | -- | 7,400 | -- | 6,477 | |||||||||||||||||||
Aevenia, Inc. | 86 | 7 | -- | 1,800 | -- | -- | |||||||||||||||||||
Foley Company | 35 | 9 | 11,951 | 2,500 | -- | 6,004 | |||||||||||||||||||
Varistar Corporation | 816 | -- | -- | -- | 5,948 | 31,076 | |||||||||||||||||||
Otter Tail Assurance Limited | 80 | -- | -- | -- | -- | -- | |||||||||||||||||||
$ | 4,651 | $ | 191 | $ | 13,553 | $ | 52,060 | $ | 5,990 | $ | 67,218 | ||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
(in thousands) | Accounts | Interest | Current | Long-Term | Accounts | Current | |||||||||||||||||||
Receivable | Receivable | Notes | Notes | Payable | Notes | ||||||||||||||||||||
Receivable | Receivable | Payable | |||||||||||||||||||||||
Otter Tail Power Company | $ | 1,346 | $ | -- | $ | -- | $ | -- | $ | 11 | $ | -- | |||||||||||||
Vinyltech Corporation | -- | 32 | -- | 8,500 | -- | 17,285 | |||||||||||||||||||
Northern Pipe Products, Inc. | -- | 9 | -- | 3,549 | -- | 11,948 | |||||||||||||||||||
BTD Manufacturing, Inc. | 7 | 107 | -- | 28,500 | -- | 3,985 | |||||||||||||||||||
IMD, Inc. | -- | -- | 1,266 | -- | -- | -- | |||||||||||||||||||
Shrco, Inc. | 2 | -- | 3,889 | -- | -- | -- | |||||||||||||||||||
T.O. Plastics, Inc. | -- | 28 | -- | 7,400 | 1 | 4,705 | |||||||||||||||||||
Aevenia, Inc. | -- | 7 | 548 | 1,800 | 1 | -- | |||||||||||||||||||
Foley Company | 44 | 9 | -- | 2,500 | -- | 5,343 | |||||||||||||||||||
Varistar Corporation | -- | -- | -- | -- | 5,948 | 19,296 | |||||||||||||||||||
Otter Tail Assurance Limited | 337 | -- | -- | -- | -- | -- | |||||||||||||||||||
$ | 1,736 | $ | 192 | $ | 5,703 | $ | 52,249 | $ | 5,961 | $ | 62,562 | ||||||||||||||
Dividends | |||||||||||||||||||||||||
Dividends paid to Otter Tail Corporation (the Parent) from its subsidiaries were as follows: | |||||||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Cash Dividends Paid to Parent by Subsidiaries | $ | 44,261 | $ | 91,693 | $ | 43,018 |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||
Principles of Consolidation | Principles of Consolidation | ||||||||||||||||||||
The consolidated financial statements of Otter Tail Corporation and its wholly owned subsidiaries (the Company) include the accounts of the following segments: Electric, Manufacturing and Plastics. See note 2 to consolidated financial statements for further descriptions of the Company’s business segments. All intercompany balances and transactions have been eliminated in consolidation except profits on sales to the regulated electric utility company from nonregulated affiliates, which is in accordance with the requirements of Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 980, Regulated Operations, (ASC 980). | |||||||||||||||||||||
Regulation and ASC 980 | Regulation and ASC 980 | ||||||||||||||||||||
The Company’s regulated electric utility company, Otter Tail Power Company (OTP), accounts for the financial effects of regulation in accordance with ASC 980. This standard allows for the recording of a regulatory asset or liability for costs and revenues that will be collected or refunded through the ratemaking process in the future. In accordance with regulatory treatment, OTP defers utility debt redemption premiums and amortizes such costs over the original life of the reacquired bonds. See note 4 to consolidated financial statements for further discussion. | |||||||||||||||||||||
OTP is subject to various state and federal agency regulations. The accounting policies followed by this business are subject to the Uniform System of Accounts of the Federal Energy Regulatory Commission (FERC). These accounting policies differ in some respects from those used by the Company’s nonelectric businesses. | |||||||||||||||||||||
Plant, Retirements and Depreciation | Plant, Retirements and Depreciation | ||||||||||||||||||||
Utility plant is stated at original cost. The cost of additions includes contracted work, direct labor and materials, allocable overheads and allowance for funds used during construction. The amount of interest capitalized on electric utility plant was $689,000 in 2014, $1,002,000 in 2013 and $656,000 in 2012. The cost of depreciable units of property retired less salvage is charged to accumulated depreciation. Removal costs, when incurred, are charged against the accumulated reserve for estimated removal costs, a regulatory liability. Maintenance, repairs and replacement of minor items of property are charged to operating expenses. The provisions for utility depreciation for financial reporting purposes are made on the straight‑line method based on the estimated service lives of the properties (5 to 70 years). Such provisions as a percent of the average balance of depreciable electric utility property were 2.89% in 2014, 2.96% in 2013 and 2.98% in 2012. Gains or losses on group asset dispositions are taken to the accumulated provision for depreciation reserve and impact current and future depreciation rates. | |||||||||||||||||||||
Property and equipment of nonelectric operations are carried at historical cost and are depreciated on a straight‑line basis over the assets’ estimated useful lives (3 to 40 years). The cost of additions includes contracted work, direct labor and materials, allocable overheads and capitalized interest. No interest was capitalized on nonelectric plant in 2014, 2013 or 2012. Maintenance and repairs are expensed as incurred. Gains or losses on asset dispositions are included in the determination of operating income. | |||||||||||||||||||||
Jointly Owned Facilities | Jointly Owned Facilities | ||||||||||||||||||||
The consolidated balance sheets include OTP’s ownership interests in the assets and liabilities of Big Stone Plant (53.9%) and Coyote Station (35.0%). The following amounts are included in the Company’s December 31, 2014 and 2013 consolidated balance sheets: | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Big Stone Plant: | |||||||||||||||||||||
Electric Plant in Service | $ | 143,746 | $ | 142,780 | |||||||||||||||||
Construction Work in Progress | 160,809 | 94,913 | |||||||||||||||||||
Accumulated Depreciation | (86,211 | ) | (83,005 | ) | |||||||||||||||||
Net Plant | $ | 218,344 | $ | 154,688 | |||||||||||||||||
Coyote Station: | |||||||||||||||||||||
Electric Plant in Service | $ | 163,824 | $ | 162,095 | |||||||||||||||||
Construction Work in Progress | 1,725 | 303 | |||||||||||||||||||
Accumulated Depreciation | (99,364 | ) | (96,907 | ) | |||||||||||||||||
Net Plant | $ | 66,185 | $ | 65,491 | |||||||||||||||||
OTP is a joint owner, with other regional utilities, in three major transmission lines and two additional major planned transmission line projects with the following ownership interests: 14.8% in the Bemidji-Grand Rapids 230 kV line, approximately 14.1% in the Fargo-Monticello 345 kV line, approximately 4.8% in the Brookings-Southeast Twin Cities Multi-Value Project (MVP) 345 kV line, 50.0% in the Big Stone South to Brookings MVP 345 kV line and 50.0% in the Big Stone South to Ellendale MVP 345 kV line. The following amounts for the jointly-owned transmission facilities are included in the Company’s December 31, 2014 and 2013 consolidated balance sheets: | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Electric Plant in Service | $ | 68,648 | $ | 26,337 | |||||||||||||||||
Construction Work in Progress | 59,163 | 71,205 | |||||||||||||||||||
Accumulated Depreciation | (1,758 | ) | (837 | ) | |||||||||||||||||
Net Plant | $ | 126,053 | $ | 96,705 | |||||||||||||||||
The Company’s share of direct revenue and expenses of the jointly owned facilities is included in operating revenue and expenses in the consolidated statements of income. | |||||||||||||||||||||
Coyote Station Lignite Supply Agreement - Variable Interest Entity | Coyote Station Lignite Supply Agreement – Variable Interest Entity | ||||||||||||||||||||
In October 2012, the Coyote Station owners, including OTP, entered into a lignite sales agreement (LSA) with Coyote Creek Mining Company, L.L.C. (CCMC), a subsidiary of The North American Coal Corporation, for the purchase of coal to meet the coal supply requirements of Coyote Station for the period beginning in May 2016 and ending in December 2040. The price per ton to be paid by the Coyote Station owners under the LSA will reflect the cost of production, along with an agreed profit and capital charge. CCMC was formed for the purpose of mining lignite coal to meet the coal fuel supply requirements of Coyote Station from May 2016 through December 2040 and, based on the terms of the LSA, is considered a variable interest entity (VIE) due to the transfer of all operating and economic risk to the Coyote Station owners, as the agreement is structured so that the price of the coal would cover all costs of operations as well as future reclamation costs. The Coyote Station owners are also providing a guarantee of the value of the assets of CCMC as they would be required to buy certain assets at book value should they terminate the contract prior to the end of the contract term and are providing a guarantee of the value of the equity of CCMC in that they are required to buy the entity at the end of the contract term at equity value. Under current accounting standards, the primary beneficiary of a VIE is required to include the assets, liabilities, results of operations and cash flows of the VIE in its consolidated financial statements. No single owner of Coyote Station owns a majority interest in Coyote Station and none, individually, has the power to direct the activities that most significantly impact CCMC. Therefore, none of the owners individually, including OTP, is considered a primary beneficiary of the VIE and the Company is not required to include CCMC in its consolidated financial statements. | |||||||||||||||||||||
Under the LSA, all development period costs of the Coyote Creek coal mine incurred during the development period will be recovered from the Coyote Station owners over the full term of the production period, which commences with the first delivery of coal to Coyote Station, scheduled for May 2016, by being included in the cost of production. The development fee and the capital charge incurred during the development period will be recovered from the Coyote Station owners over the first 52 months of the production period by being included in the cost of production during those months. OTP’s 35% share of development period costs, development fees and capital charges incurred by CCMC through December 31, 2014 is $21.6 million. In the event the contract is terminated because regulations or legislation render the burning of coal cost prohibitive and the assets worthless, OTP’s maximum exposure to loss as a result of its involvement with CCMC as of December 31, 2014 could be as high as $21.6 million. | |||||||||||||||||||||
Recoverability of Long-Lived Assets | Recoverability of Long-Lived Assets | ||||||||||||||||||||
The Company reviews its long-lived assets whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable. The Company determines potential impairment by comparing the carrying amount of the assets with net cash flows expected to be provided by operating activities of the business or related assets. If the sum of the expected future net cash flows is less than the carrying amount of the assets, the Company would recognize an impairment loss. Such an impairment loss would be measured as the amount by which the carrying amount exceeds the fair value of the asset, where fair value is based on the discounted cash flows expected to be generated by the asset. | |||||||||||||||||||||
In June 2012, the Company entered into a nonbinding letter of interest with Trinity Industries, Inc. (Trinity) to sell the fixed assets of IMD for $20 million, with the Company retaining IMD’s net working capital—approximately $66 million on June 30, 2012. On September 6, 2012 the Company entered into definitive agreements with Trinity to sell the fixed assets of IMD for $20 million. The agreed on price for the fixed assets was an indicator of the fair value of the assets under level 2 of the ASC fair value hierarchy and an indication of a decrease in the market value of the assets being sold, which were significantly impacted by a decline in market conditions in the wind energy industry. IMD had no tower orders for 2013 due to the expected expiration, at the end of 2012, of the Federal Production Tax Credit (PTC) for investments in renewable energy resources. These factors resulted in IMD recording a fair value adjustment of its long-lived assets to the indicated market price of $20 million and an asset impairment charge of $45.6 million ($27.5 million net-of-tax benefits), or $0.76 per share, in June 2012 broken down as follows: | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Long-Lived Assets (net of accumulated depreciation) | $ | 45,285 | |||||||||||||||||||
Goodwill | 288 | ||||||||||||||||||||
Total Asset Impairment Charges | $ | 45,573 | |||||||||||||||||||
The sales of IMD’s fixed assets were completed in 2012 with the effects of the related transactions reflected in discontinued operations in the Company’s 2012 consolidated financial statements. See note 16 to consolidated financial statements for further information. | |||||||||||||||||||||
Otter Tail Energy Services Company (OTESCO) recorded an asset impairment charge of $0.4 million in 2012 related to wind farm development rights at its Sheridan Ridge and Stutsman County sites in North Dakota based on the fair value of these assets declining to $0 as of March 31, 2012. | |||||||||||||||||||||
On February 8, 2013 the Company sold substantially all of the assets of Shrco, Inc. (Shrco), the Company’s former waterfront equipment manufacturer, subject to certain closing conditions. The Company recorded a $7.7 million ($4.6 million net-of-tax benefits), or $0.13 per share, asset impairment charge in December 2012 based on the indicated market value of Shrco’s assets broken down as follows: | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Long-Lived Assets (net of accumulated depreciation) | $ | 5,859 | |||||||||||||||||||
Inventory | 782 | ||||||||||||||||||||
Accrued Selling Costs | 1,106 | ||||||||||||||||||||
Total Impairment Charges | $ | 7,747 | |||||||||||||||||||
Income Taxes | Income Taxes | ||||||||||||||||||||
Comprehensive interperiod income tax allocation is used for substantially all book and tax temporary differences. Deferred income taxes arise for all temporary differences between the book and tax basis of assets and liabilities. Deferred taxes are recorded using the tax rates scheduled by tax law to be in effect in the periods when the temporary differences reverse. The Company amortizes investment tax credits over the estimated lives of related property. The Company records income taxes in accordance with ASC Topic 740, Income Taxes, and has recognized in its consolidated financial statements the tax effects of all tax positions that are “more-likely-than-not” to be sustained on audit based solely on the technical merits of those positions as of the balance sheet date. The term “more-likely-than-not” means a likelihood of more than 50%. The Company classifies interest and penalties on tax uncertainties as components of the provision for income taxes. See note 14 to consolidated financial statements regarding the Company’s accounting for uncertain tax positions. | |||||||||||||||||||||
The Company also is required to assess the realizability of its deferred tax assets, taking into consideration the Company’s forecast of future taxable income, the reversal of other existing temporary differences, available net operating loss carryforwards and available tax planning strategies that could be implemented to realize the deferred tax assets. Based on this assessment, management must evaluate the need for, and amount of, valuation allowances against the Company’s deferred tax assets. To the extent facts and circumstances change in the future, adjustments to the valuation allowance may be required. | |||||||||||||||||||||
Revenue Recognition | Revenue Recognition | ||||||||||||||||||||
Due to the diverse business operations of the Company, revenue recognition depends on the product produced and sold or service performed. The Company recognizes revenue when the earnings process is complete, evidenced by an agreement with the customer, there has been delivery and acceptance, the price is fixed or determinable and collectability is reasonably assured. In cases where significant obligations remain after delivery, revenue recognition is deferred until such obligations are fulfilled. Provisions for sales returns and warranty costs are recorded at the time of the sale based on historical information and current trends. In the case of derivative instruments, such as OTP’s forward energy contracts, marked-to-market and realized gains and losses are recognized on a net basis in revenue in accordance with ASC Topic 815, Derivatives and Hedging (ASC 815). Gains and losses on forward energy contracts subject to regulatory treatment, if any, are deferred and recognized on a net basis in revenue in the period realized. | |||||||||||||||||||||
For the Company’s operating companies recognizing revenue on certain products when shipped, those operating companies have no further obligation to provide services related to such product. The shipping terms used in these instances are FOB shipping point. | |||||||||||||||||||||
Customer electricity use is metered and bills are rendered monthly. Revenue is accrued for electricity consumed but not yet billed. Rate schedules applicable to substantially all customers include a fuel clause adjustment, under which the rates are adjusted to reflect changes in average cost of fuels and purchased power, and a surcharge for recovery of conservation-related expenses. Revenue is recognized for fuel and purchased power costs incurred in excess of amounts recovered in base rates but not yet billed through the fuel clause adjustment, for conservation program incentives and bonuses earned but not yet billed and for renewable resource, transmission-related and environmental incurred costs and investment returns approved for recovery through riders. | |||||||||||||||||||||
Revenues on wholesale electricity sales from Company-owned generating units are recognized when energy is delivered. For shared use of transmission facilities with certain regional transmission cooperatives, revenues are estimated. Bills are rendered based on anticipated usage and settlements are made later based on actual usage. Estimated revenues may be adjusted prior to settlement, or at the time of settlement, to reflect actual usage. | |||||||||||||||||||||
OTP’s unrealized gains and losses on forward energy contracts that do not meet the definition of capacity contracts are marked to market and reflected on a net basis in electric revenue on the Company’s consolidated statement of income. Under ASC 815, OTP’s forward energy contracts that do not meet the definition of a capacity contract and are subject to unplanned netting do not qualify for the normal purchase and sales exception from mark-to-market accounting. See note 5 to consolidated financial statements for further discussion. | |||||||||||||||||||||
Manufacturing operating revenues are recorded when products are shipped. | |||||||||||||||||||||
The Company’s construction companies, reported under discontinued operations in the accompanying financial statements, enter into fixed-price construction contracts. Revenues under these contracts are recognized on a percentage-of-completion basis. The method used to determine the progress of completion is based on the ratio of costs incurred to total estimated costs on construction projects. See note 16 to consolidated financial statements. | |||||||||||||||||||||
The following table summarizes costs incurred and billings and estimated earnings recognized on uncompleted contracts: | |||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Costs Incurred on Uncompleted Contracts | $ | 402,332 | $ | 361,487 | |||||||||||||||||
Less Billings to Date | (411,909 | ) | (377,608 | ) | |||||||||||||||||
Plus Estimated Earnings Recognized | 15,154 | 6,477 | |||||||||||||||||||
Net Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts | $ | 5,577 | $ | (9,644 | ) | ||||||||||||||||
The following costs and estimated earnings in excess of billings and billings in excess of costs and estimated earnings are included in the Company’s consolidated balance sheets under assets of discontinued operations and liabilities of discontinued operations: | |||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts | $ 8,133 | $ 4,063 | |||||||||||||||||||
Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts | (2,556) | (13,707) | |||||||||||||||||||
Net Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts | $ 5,577 | $ (9,644) | |||||||||||||||||||
The Company has a standard quarterly estimate at completion process in which management reviews the progress and performance of the Company’s contracts accounted for under percentage-of-completion accounting. As part of this process, management reviews include, but are not limited to, any outstanding key contract matters, progress towards completion and the related program schedule, identified risks and opportunities, and the related changes in estimates of revenues and costs. The risks and opportunities include management’s judgment about the ability and cost to achieve the schedule, technical requirements and other contract requirements. Management must make assumptions regarding labor productivity and availability, the complexity of the work to be performed, the availability of materials, the length of time to complete the contract, and performance by subcontractors, among other variables. Based on this analysis, any adjustments to net sales, costs of sales, and the related impact to operating income are recorded as necessary in the period they become known. These adjustments may result from positive program performance and an increase in operating profit during the performance of individual contracts if management determines it will be successful in mitigating risks surrounding the technical, schedule, and cost aspects of those contracts or realizing related opportunities. Likewise, these adjustments may result in a decrease in operating profit if management determines it will not be successful in mitigating these risks or realizing related opportunities. Changes in estimates of net sales, costs of sales, and the related impact to operating income are recognized using a cumulative catch-up, which recognizes, in the current period, the cumulative effect of the changes on current and prior periods based on a contract’s percent complete. A significant change in one or more of these estimates could affect the profitability of one or more of the Company’s contracts. If a loss is indicated at a point in time during a contract, a projected loss for the entire contract is estimated and recognized. | |||||||||||||||||||||
In 2012, Foley Company (Foley) experienced cost overruns in excess of estimated costs on several large projects. All of these projects were substantially completed as of December 31, 2012. Estimated costs on certain projects in excess of previous period estimates resulted in insignificant pretax charges in 2014 compared with $0.6 million in 2013 and $14.9 million in 2012. | |||||||||||||||||||||
Plastics operating revenues are recorded when the product is shipped. | |||||||||||||||||||||
Warranty Reserves | Warranty Reserves | ||||||||||||||||||||
The Company establishes reserves for estimated product warranty costs at the time revenue is recognized based on historical warranty experience and additionally for any known product warranty issues. Certain products previously sold by the Company carried one to fifteen year warranties. Although the Company engaged in extensive product quality programs and processes, the Company’s warranty obligations have been and may in the future be affected by product failure rates, repair or field replacement costs and additional development costs incurred in correcting product failures. The warranty reserve balances as of December 31, 2014 and December 31, 2013 relate entirely to products that were produced by IMD and Shrco prior to the Company selling the assets of these companies and are included in liabilities of discontinued operations. See note 16 to consolidated financial statements. | |||||||||||||||||||||
Retainage | Retainage | ||||||||||||||||||||
Assets of discontinued operations include the following amounts billed under contracts by the Company’s construction subsidiaries that have been retained by customers pending project completion: | |||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Accounts Receivable Retained by Customers | $ | 6,759 | $ | 7,125 | |||||||||||||||||
Shipping and Handling Costs | Shipping and Handling Costs | ||||||||||||||||||||
The Company includes revenues received for shipping and handling in operating revenues. Expenses paid for shipping and handling are recorded as part of cost of goods sold. | |||||||||||||||||||||
Use of Estimates | Use of Estimates | ||||||||||||||||||||
The Company uses estimates based on the best information available in recording transactions and balances resulting from business operations. Estimates are used for such items as depreciable lives, asset impairment evaluations, tax provisions, collectability of trade accounts receivable, self-insurance programs, unbilled electric revenues, accrued renewable resource, transmission and environmental cost recovery rider revenues, valuations of forward energy contracts, percentage-of-completion, warranty reserves and actuarially determined benefits costs and liabilities. As better information becomes available (or actual amounts are known), the recorded estimates are revised. Consequently, operating results can be affected by revisions to prior accounting estimates. | |||||||||||||||||||||
Cash Equivalents | Cash Equivalents | ||||||||||||||||||||
The Company considers all highly liquid debt instruments purchased with maturity of 90 days or less to be cash equivalents. | |||||||||||||||||||||
Investments | Investments | ||||||||||||||||||||
The following table provides a breakdown of the Company’s investments at December 31, 2014 and 2013: | |||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Cost Method: | |||||||||||||||||||||
Economic Development Loan Pools | $ | 174 | $ | 219 | |||||||||||||||||
Other | 129 | 158 | |||||||||||||||||||
Equity Method - Affordable Housing and Other Partnerships | 265 | 43 | |||||||||||||||||||
Marketable Securities Classified as Available-for-Sale | 8,014 | 8,942 | |||||||||||||||||||
Total Investments | $ | 8,582 | $ | 9,362 | |||||||||||||||||
The Company’s marketable securities classified as available-for-sale are held for insurance purposes and are reflected at their fair values on December 31, 2014. See further discussion below. | |||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | ||||||||||||||||||||
The Company follows ASC Topic 820, Fair Value Measurements and Disclosures (ASC 820), for recurring fair value measurements. ASC 820 provides a single definition of fair value, requires enhanced disclosures about assets and liabilities measured at fair value and establishes a hierarchal framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value. The three levels defined by the hierarchy and examples of each level are as follows: | |||||||||||||||||||||
Level 1 – Quoted prices are available in active markets for identical assets or liabilities as of the reported date. The types of assets and liabilities included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as equities listed by the New York Stock Exchange and commodity derivative contracts listed on the New York Mercantile Exchange (NYMEX). | |||||||||||||||||||||
Level 2 – Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets and liabilities included in Level 2 are typically either comparable to actively traded securities or contracts, such as treasury securities with pricing interpolated from recent trades of similar securities, or priced with models using highly observable inputs, such as commodity options priced using observable forward prices and volatilities. | |||||||||||||||||||||
Level 3 – Significant inputs to pricing have little or no observability as of the reporting date. The types of assets and liabilities included in Level 3 are those with inputs requiring significant management judgment or estimation and may include complex and subjective models and forecasts. | |||||||||||||||||||||
The following tables present, for each of the hierarchy levels, the Company’s assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2014 and December 31, 2013: | |||||||||||||||||||||
December 31, 2014 (in thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Current Assets – Other: | |||||||||||||||||||||
Forward Energy Contracts | $ | -- | $ | -- | $ | 257 | |||||||||||||||
Money Market and Mutual Funds - Nonqualified Retirement Savings Plan | 120 | ||||||||||||||||||||
Investments: | |||||||||||||||||||||
Corporate Debt Securities – Held by Captive Insurance Company | 6,761 | ||||||||||||||||||||
U.S. Government-Sponsored Enterprises’ Debt Securities – Held by Captive Insurance Company | 1,253 | ||||||||||||||||||||
Other Assets: | |||||||||||||||||||||
Money Market and Mutual Funds - Nonqualified Retirement Savings Plan | 593 | ||||||||||||||||||||
Total Assets | $ | 713 | $ | 8,014 | $ | 257 | |||||||||||||||
Liabilities: | |||||||||||||||||||||
Derivative Liabilities - Forward Gasoline Purchase Contracts | $ | -- | $ | 342 | $ | -- | |||||||||||||||
Derivative Liabilities - Forward Energy Contracts | -- | -- | 13,888 | ||||||||||||||||||
Total Liabilities | $ | -- | $ | 342 | $ | 13,888 | |||||||||||||||
December 31, 2013 (in thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Current Assets – Other: | |||||||||||||||||||||
Forward Energy Contracts | $ | -- | $ | -- | $ | 338 | |||||||||||||||
Forward Gasoline Purchase Contracts | 62 | ||||||||||||||||||||
Money Market and Mutual Funds - Nonqualified Retirement Savings Plan | 110 | ||||||||||||||||||||
Investments: | |||||||||||||||||||||
Corporate Debt Securities – Held by Captive Insurance Company | 7,671 | ||||||||||||||||||||
U.S. Government-Sponsored Enterprises’ Debt Securities – Held by Captive Insurance Company | 1,271 | ||||||||||||||||||||
Other Assets: | |||||||||||||||||||||
Money Market and Mutual Funds - Nonqualified Retirement Savings Plan | 866 | ||||||||||||||||||||
Total Assets | $ | 976 | $ | 9,004 | $ | 338 | |||||||||||||||
Liabilities: | |||||||||||||||||||||
Derivative Liabilities - Forward Energy Contracts | $ | -- | $ | 103 | $ | 11,679 | |||||||||||||||
Total Liabilities | $ | -- | $ | 103 | $ | 11,679 | |||||||||||||||
The valuation techniques and inputs used for the Level 2 fair value measurements in the table above are as follows: | |||||||||||||||||||||
Forward Energy Contracts – Prices used for the fair valuation of these forward purchases and sales of electricity, which have illiquid trading points, are indexed to a price at an active market. | |||||||||||||||||||||
Forward Gasoline Purchase Contracts – These contracts are priced based on NYMEX quoted prices for Reformulated Blendstock for Oxygenate Blending (RBOB) Gasoline contracts. Prices used for the fair valuation of these contracts are based on NYMEX daily reporting date quoted prices for RBOB contracts with the same settlement periods. | |||||||||||||||||||||
Corporate and U.S. Government-Sponsored Enterprises’ Debt Securities Held by the Company’s Captive Insurance Company – Fair values are determined on the basis of 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. | |||||||||||||||||||||
Fair values for OTP’s forward energy contracts with delivery points that are not at an active trading hub included in Level 3 of the fair value hierarchy in the table above as of December 31, 2014 and December 31, 2013, are based on prices indexed to observable prices at an active trading hub. Prices at illiquid trading points are based on a basis spread between that trading point and more liquid trading hub prices. These basis spreads are determined based on available market price information and the use of forward price curve models. The December 31, 2014 Level 3 forward electric basis spreads ranged from $2.50 to $7.97 per megawatt-hour under the active trading hub price. The weighted average price was $34.95 per megawatt-hour. | |||||||||||||||||||||
In the table above, the fair value of the Level 3 forward energy contracts in derivative asset and derivative liability positions as of December 31, 2014 are related to power purchase contracts where OTP intends to take or has taken physical delivery of the energy under the contract. When OTP takes physical delivery of the energy purchased under these contracts the costs incurred are subject to recovery in base rates and through fuel clause adjustments. Any derivative assets or liabilities and related gains or losses recorded as a result of the fair valuation of these power purchase contracts will not be realized and are 100% offset by regulatory liabilities and assets related to fuel clause adjustment treatment of purchased power costs. Therefore, the net impact of any recorded fair valuation gains or losses related to these contracts on the Company’s consolidated net income is $0 and the net income impact of any future fair valuation adjustments of these contracts will be $0. When energy is delivered under these contracts, they will be settled at the original contract price and any fair valuation gains or losses and related derivative assets or liabilities recorded over the life of the contracts will be reversed along with any offsetting regulatory liabilities or assets. Because of regulatory accounting treatment, any price volatility related to the fair valuation of these contracts had no impact on the Company’s reported consolidated net income for the years ended December 31, 2014 and 2013. | |||||||||||||||||||||
The following table presents changes in Level 3 forward energy contract derivative asset and liability fair valuations for the twelve-month periods ended December 31, 2014 and 2013: | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Forward Energy Contracts - Fair Values Beginning of Period | $ | (11,341 | ) | $ | (17,782 | ) | |||||||||||||||
Less: Amounts Reversed on Settlement of Contracts Entered into in Prior Periods | 2,785 | 7,943 | |||||||||||||||||||
Changes in Fair Value of Contracts Entered into in Prior Periods | 166 | (640 | ) | ||||||||||||||||||
Cumulative Fair Value Adjustments of Contracts Entered into in Prior Years at End of Period | (8,390 | ) | (10,479 | ) | |||||||||||||||||
Net Decrease in Value of Open Contracts Entered into in Current Period | (5,241 | ) | (862 | ) | |||||||||||||||||
Forward Energy Contracts - Net Derivative Liability Fair Values End of Period | $ | (13,631 | ) | $ | (11,341 | ) | |||||||||||||||
Inventories | Inventories | ||||||||||||||||||||
The Electric segment inventories are reported at average cost. All other segments’ inventories are stated at the lower of cost (first‑in, first‑out) or market. Inventories consist of the following: | |||||||||||||||||||||
December 31, | December 31, | ||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Finished Goods | $ | 27,998 | $ | 20,649 | |||||||||||||||||
Work in Process | 10,628 | 9,942 | |||||||||||||||||||
Raw Material, Fuel and Supplies | 46,577 | 42,036 | |||||||||||||||||||
Total Inventories | $ | 85,203 | $ | 72,627 | |||||||||||||||||
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets | ||||||||||||||||||||
The Company accounts for goodwill and other intangible assets in accordance with the requirements of ASC Topic 350, Intangibles—Goodwill and Other, measuring its goodwill and indefinite-lived intangible assets for impairment annually in the fourth quarter, and more often when events indicate the assets may be impaired. The Company does qualitative assessments of its reporting units with recorded goodwill to determine if it is more likely than not that the fair value of the reporting unit exceeds its book value. The Company also does quantitative assessments of its reporting units with recorded goodwill to determine the fair value of the reporting unit. | |||||||||||||||||||||
In the fourth quarter of 2012 the Company sold Moorhead Electric, Inc. (MEI), a subsidiary company that provided electrical contracting services. In connection with this sale, the Company disposed of $147,000 in goodwill associated with the purchase of MEI in 1992. With the classification of Aevenia in discontinued operations in 2014, the 2012 results of operations and cash flows of MEI are now reflected in discontinued operations. | |||||||||||||||||||||
In the fourth quarter of 2014 the Company entered into negotiations to sell its wholly owned subsidiary, Foley, a mechanical and prime contractor on industrial projects. As a result of an impairment indicator during the fourth quarter of 2014, the Company recorded a $5.6 million, or $0.15 per share, goodwill impairment charge. This impairment charge was based on the indicated offering price in a signed letter of intent for the purchase of Foley. The goodwill impairment loss is reflected in the results of discontinued operations and the remaining goodwill balance related to Foley is included in assets of discontinued operations. An assessment of the carrying amounts of the remaining goodwill of the Company’s reporting units reported under continuing operations as of December 31, 2014 indicated the fair values are substantially in excess of their respective book values and not impaired. | |||||||||||||||||||||
The following tables summarize changes to goodwill by business segment during 2014 and 2013: | |||||||||||||||||||||
Gross Balance | Accumulated | Balance | Adjustments | Balance | |||||||||||||||||
(in thousands) | 31-Dec-13 | Impairments | (net of impairments) | to Goodwill | (net of impairments) | ||||||||||||||||
31-Dec-13 | in 2014 | 31-Dec-14 | |||||||||||||||||||
Manufacturing | $ | 12,186 | $ | -- | $ | 12,186 | $ | -- | $ | 12,186 | |||||||||||
Plastics | 19,302 | -- | 19,302 | -- | 19,302 | ||||||||||||||||
Total | $ | 31,488 | $ | -- | $ | 31,488 | $ | -- | $ | 31,488 | |||||||||||
Gross Balance | Accumulated | Balance | Adjustments | Balance | |||||||||||||||||
(in thousands) | 31-Dec-12 | Impairments | (net of impairments) | to Goodwill | (net of impairments) | ||||||||||||||||
31-Dec-12 | in 2013 | 31-Dec-13 | |||||||||||||||||||
Manufacturing | $ | 12,186 | $ | -- | $ | 12,186 | $ | -- | $ | 12,186 | |||||||||||
Plastics | 19,302 | -- | 19,302 | -- | 19,302 | ||||||||||||||||
Total | $ | 31,488 | $ | -- | $ | 31,488 | $ | -- | $ | 31,488 | |||||||||||
Intangible assets with finite lives are amortized over their estimated useful lives and reviewed for impairment in accordance with requirements under ASC 360‑10‑35, Property, Plant, and Equipment—Overall—Subsequent Measurement. The following table summarizes the components of the Company’s intangible assets at December 31: | |||||||||||||||||||||
2014 (in thousands) | Gross Carrying | Accumulated | Net Carrying | Remaining | |||||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||||||
Periods | |||||||||||||||||||||
Amortizable Intangible Assets: | |||||||||||||||||||||
Customer Relationships | $ | 16,811 | $ | 5,784 | $ | 11,027 | 60-160 months | ||||||||||||||
Other Intangible Assets Including Contracts | 639 | 415 | 224 | 21 months | |||||||||||||||||
Total | $ | 17,450 | $ | 6,199 | $ | 11,251 | |||||||||||||||
2013 (in thousands) | |||||||||||||||||||||
Amortizable Intangible Assets: | |||||||||||||||||||||
Customer Relationships | $ | 16,811 | $ | 4,935 | $ | 11,876 | 72-172 months | ||||||||||||||
Other Intangible Assets Including Contracts | 772 | 420 | 352 | 33 months | |||||||||||||||||
Total | $ | 17,583 | $ | 5,355 | $ | 12,228 | |||||||||||||||
The amortization expense for these intangible assets was: | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||
Amortization Expense – Intangible Assets | $ | 977 | $ | 977 | $ | 981 | |||||||||||||||
The estimated annual amortization expense for these intangible assets for the next five years is: | |||||||||||||||||||||
(in thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | ||||||||||||||||
Estimated Amortization Expense – Intangible Assets | $ | 977 | $ | 945 | $ | 849 | $ | 849 | $ | 849 | |||||||||||
Supplemental Disclosures of Cash Flow Information | Supplemental Disclosures of Cash Flow Information | ||||||||||||||||||||
As of December 31, | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Noncash Investing Activities: | |||||||||||||||||||||
Accounts Payable Outstanding Related to Capital Additions1 | $ | 24,526 | $ | 22,951 | |||||||||||||||||
Accounts Receivable Outstanding Related to Joint Plant Owner’s Share of Capital Additions2 | $ | 4,594 | $ | 3,264 | |||||||||||||||||
1Amounts are included in cash used for capital expenditures in subsequent periods when payables are settled. | |||||||||||||||||||||
2Amounts are deducted from cash used for capital expenditures in subsequent periods when cash is received. | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||
Cash Paid (Received) During the Year for: | |||||||||||||||||||||
Interest (net of amount capitalized) | $ | 26,364 | $ | 26,789 | $ | 30,741 | |||||||||||||||
Income Taxes | $ | 145 | $ | (453 | ) | $ | (353 | ) | |||||||||||||
New Accounting Standards | New Accounting Standards | ||||||||||||||||||||
Accounting Standards Update (ASU) 2013-11 | |||||||||||||||||||||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740) (ASC 740), Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which requires an entity with unrecognized tax benefits to present the unrecognized tax benefits as a reduction to a deferred tax asset related to a net operating loss carryforward, a similar tax loss, or a tax credit carryforward when such net operating loss carryforward, similar tax loss, or tax credit carryforward is available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position. The ASU 2013-11 amendments to ASC 740 are effective for fiscal years beginning after December 15, 2013. The Company adopted the reporting requirements in ASU 2013-11 in the first quarter of 2014 on a prospective basis and transferred $4.3 million of unrecognized tax benefits from other long-term liabilities to long-term deferred income taxes. | |||||||||||||||||||||
ASU 2014-09 | |||||||||||||||||||||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (ASC 606). ASC 606 is a comprehensive, principles-based accounting standard which amends current revenue recognition guidance with the objective of improving revenue recognition requirements by providing a single comprehensive model to determine the measurement of revenue and the timing of revenue recognition. ASC 606 also requires expanded disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. | |||||||||||||||||||||
ASU 2014-09 amendments to the ASC are effective for fiscal years beginning after December 15, 2016. Application methods permitted are: (1) full retrospective, (2) retrospective using one or more practical expedients and (3) retrospective with the cumulative effect of initial application recognized at the date of initial application. Early application of the ASU amendments is not permitted. The Company is currently reviewing ASU 2014-09, identifying key impacts to its businesses, reviewing revenue streams and contracts to determine areas where the amendments in ASU 2014-09 will be applicable and evaluating transition options. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Schedule for ownership share of jointly owned facilities | The consolidated balance sheets include OTP’s ownership interests in the assets and liabilities of Big Stone Plant (53.9%) and Coyote Station (35.0%). The following amounts are included in the Company’s December 31, 2014 and 2013 consolidated balance sheets: | ||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Big Stone Plant: | |||||||||||||||||||||
Electric Plant in Service | $ | 143,746 | $ | 142,780 | |||||||||||||||||
Construction Work in Progress | 160,809 | 94,913 | |||||||||||||||||||
Accumulated Depreciation | (86,211 | ) | (83,005 | ) | |||||||||||||||||
Net Plant | $ | 218,344 | $ | 154,688 | |||||||||||||||||
Coyote Station: | |||||||||||||||||||||
Electric Plant in Service | $ | 163,824 | $ | 162,095 | |||||||||||||||||
Construction Work in Progress | 1,725 | 303 | |||||||||||||||||||
Accumulated Depreciation | (99,364 | ) | (96,907 | ) | |||||||||||||||||
Net Plant | $ | 66,185 | $ | 65,491 | |||||||||||||||||
OTP is a joint owner, with other regional utilities, in three major transmission lines and two additional major planned transmission line projects with the following ownership interests: 14.8% in the Bemidji-Grand Rapids 230 kV line, approximately 14.1% in the Fargo-Monticello 345 kV line, approximately 4.8% in the Brookings-Southeast Twin Cities Multi-Value Project (MVP) 345 kV line, 50.0% in the Big Stone South to Brookings MVP 345 kV line and 50.0% in the Big Stone South to Ellendale MVP 345 kV line. The following amounts for the jointly-owned transmission facilities are included in the Company’s December 31, 2014 and 2013 consolidated balance sheets: | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Electric Plant in Service | $ | 68,648 | $ | 26,337 | |||||||||||||||||
Construction Work in Progress | 59,163 | 71,205 | |||||||||||||||||||
Accumulated Depreciation | (1,758 | ) | (837 | ) | |||||||||||||||||
Net Plant | $ | 126,053 | $ | 96,705 | |||||||||||||||||
Schedule of costs incurred and billings and estimated earnings | December 31, | December 31, | |||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Costs Incurred on Uncompleted Contracts | $ | 402,332 | $ | 361,487 | |||||||||||||||||
Less Billings to Date | (411,909 | ) | (377,608 | ) | |||||||||||||||||
Plus Estimated Earnings Recognized | 15,154 | 6,477 | |||||||||||||||||||
Net Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts | $ | 5,577 | $ | (9,644 | ) | ||||||||||||||||
Schedule of costs and estimated earnings in excess of billings and billings in excess of costs and estimated earnings | December 31, | December 31, | |||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts | $ 8,133 | $ 4,063 | |||||||||||||||||||
Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts | (2,556) | (13,707) | |||||||||||||||||||
Net Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts | $ 5,577 | $ (9,644) | |||||||||||||||||||
Schedule of accounts receivable retained by customers pending project completion | December 31, | December 31, | |||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Accounts Receivable Retained by Customers | $ | 6,759 | $ | 7,125 | |||||||||||||||||
Schedule of breakdown of Investments | December 31, | December 31, | |||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Cost Method: | |||||||||||||||||||||
Economic Development Loan Pools | $ | 174 | $ | 219 | |||||||||||||||||
Other | 129 | 158 | |||||||||||||||||||
Equity Method - Affordable Housing and Other Partnerships | 265 | 43 | |||||||||||||||||||
Marketable Securities Classified as Available-for-Sale | 8,014 | 8,942 | |||||||||||||||||||
Total Investments | $ | 8,582 | $ | 9,362 | |||||||||||||||||
Schedule of assets and liabilities that are measured at fair value on a recurring basis | December 31, 2014 (in thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets: | |||||||||||||||||||||
Current Assets – Other: | |||||||||||||||||||||
Forward Energy Contracts | $ | -- | $ | -- | $ | 257 | |||||||||||||||
Money Market and Mutual Funds - Nonqualified Retirement Savings Plan | 120 | ||||||||||||||||||||
Investments: | |||||||||||||||||||||
Corporate Debt Securities – Held by Captive Insurance Company | 6,761 | ||||||||||||||||||||
U.S. Government-Sponsored Enterprises’ Debt Securities – Held by Captive Insurance Company | 1,253 | ||||||||||||||||||||
Other Assets: | |||||||||||||||||||||
Money Market and Mutual Funds - Nonqualified Retirement Savings Plan | 593 | ||||||||||||||||||||
Total Assets | $ | 713 | $ | 8,014 | $ | 257 | |||||||||||||||
Liabilities: | |||||||||||||||||||||
Derivative Liabilities - Forward Gasoline Purchase Contracts | $ | -- | $ | 342 | $ | -- | |||||||||||||||
Derivative Liabilities - Forward Energy Contracts | -- | -- | 13,888 | ||||||||||||||||||
Total Liabilities | $ | -- | $ | 342 | $ | 13,888 | |||||||||||||||
December 31, 2013 (in thousands) | Level 1 | Level 2 | Level 3 | ||||||||||||||||||
Assets: | |||||||||||||||||||||
Current Assets – Other: | |||||||||||||||||||||
Forward Energy Contracts | $ | -- | $ | -- | $ | 338 | |||||||||||||||
Forward Gasoline Purchase Contracts | 62 | ||||||||||||||||||||
Money Market and Mutual Funds - Nonqualified Retirement Savings Plan | 110 | ||||||||||||||||||||
Investments: | |||||||||||||||||||||
Corporate Debt Securities – Held by Captive Insurance Company | 7,671 | ||||||||||||||||||||
U.S. Government-Sponsored Enterprises’ Debt Securities – Held by Captive Insurance Company | 1,271 | ||||||||||||||||||||
Other Assets: | |||||||||||||||||||||
Money Market and Mutual Funds - Nonqualified Retirement Savings Plan | 866 | ||||||||||||||||||||
Total Assets | $ | 976 | $ | 9,004 | $ | 338 | |||||||||||||||
Liabilities: | |||||||||||||||||||||
Derivative Liabilities - Forward Energy Contracts | $ | -- | $ | 103 | $ | 11,679 | |||||||||||||||
Total Liabilities | $ | -- | $ | 103 | $ | 11,679 | |||||||||||||||
Schedule of derivative asset and liability fair valuations | (in thousands) | 2014 | 2013 | ||||||||||||||||||
Forward Energy Contracts - Fair Values Beginning of Period | $ | (11,341 | ) | $ | (17,782 | ) | |||||||||||||||
Less: Amounts Reversed on Settlement of Contracts Entered into in Prior Periods | 2,785 | 7,943 | |||||||||||||||||||
Changes in Fair Value of Contracts Entered into in Prior Periods | 166 | (640 | ) | ||||||||||||||||||
Cumulative Fair Value Adjustments of Contracts Entered into in Prior Years at End of Period | (8,390 | ) | (10,479 | ) | |||||||||||||||||
Net Decrease in Value of Open Contracts Entered into in Current Period | (5,241 | ) | (862 | ) | |||||||||||||||||
Forward Energy Contracts - Net Derivative Liability Fair Values End of Period | $ | (13,631 | ) | $ | (11,341 | ) | |||||||||||||||
Schedule of inventories | December 31, | December 31, | |||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Finished Goods | $ | 27,998 | $ | 20,649 | |||||||||||||||||
Work in Process | 10,628 | 9,942 | |||||||||||||||||||
Raw Material, Fuel and Supplies | 46,577 | 42,036 | |||||||||||||||||||
Total Inventories | $ | 85,203 | $ | 72,627 | |||||||||||||||||
Schedule of changes to goodwill by business segment | Gross Balance | Accumulated | Balance | Adjustments | Balance | ||||||||||||||||
(in thousands) | 31-Dec-13 | Impairments | (net of impairments) | to Goodwill | (net of impairments) | ||||||||||||||||
31-Dec-13 | in 2014 | 31-Dec-14 | |||||||||||||||||||
Manufacturing | $ | 12,186 | $ | -- | $ | 12,186 | $ | -- | $ | 12,186 | |||||||||||
Plastics | 19,302 | -- | 19,302 | -- | 19,302 | ||||||||||||||||
Total | $ | 31,488 | $ | -- | $ | 31,488 | $ | -- | $ | 31,488 | |||||||||||
Gross Balance | Accumulated | Balance | Adjustments | Balance | |||||||||||||||||
(in thousands) | 31-Dec-12 | Impairments | (net of impairments) | to Goodwill | (net of impairments) | ||||||||||||||||
31-Dec-12 | in 2013 | 31-Dec-13 | |||||||||||||||||||
Manufacturing | $ | 12,186 | $ | -- | $ | 12,186 | $ | -- | $ | 12,186 | |||||||||||
Plastics | 19,302 | -- | 19,302 | -- | 19,302 | ||||||||||||||||
Total | $ | 31,488 | $ | -- | $ | 31,488 | $ | -- | $ | 31,488 | |||||||||||
Schedule of components of intangible assets | 2014 (in thousands) | Gross Carrying | Accumulated | Net Carrying | Remaining | ||||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||||||
Periods | |||||||||||||||||||||
Amortizable Intangible Assets: | |||||||||||||||||||||
Customer Relationships | $ | 16,811 | $ | 5,784 | $ | 11,027 | 60-160 months | ||||||||||||||
Other Intangible Assets Including Contracts | 639 | 415 | 224 | 21 months | |||||||||||||||||
Total | $ | 17,450 | $ | 6,199 | $ | 11,251 | |||||||||||||||
2013 (in thousands) | |||||||||||||||||||||
Amortizable Intangible Assets: | |||||||||||||||||||||
Customer Relationships | $ | 16,811 | $ | 4,935 | $ | 11,876 | 72-172 months | ||||||||||||||
Other Intangible Assets Including Contracts | 772 | 420 | 352 | 33 months | |||||||||||||||||
Total | $ | 17,583 | $ | 5,355 | $ | 12,228 | |||||||||||||||
Schedule of amortization expense for intangible assets | (in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||
Amortization Expense – Intangible Assets | $ | 977 | $ | 977 | $ | 981 | |||||||||||||||
Schedule of estimated annual amortization expense for intangible assets | (in thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||
Estimated Amortization Expense – Intangible Assets | $ | 977 | $ | 945 | $ | 849 | $ | 849 | $ | 849 | |||||||||||
Schedule of supplemental disclosure of cash flow information | As of December 31, | ||||||||||||||||||||
(in thousands) | 2014 | 2013 | |||||||||||||||||||
Noncash Investing Activities: | |||||||||||||||||||||
Accounts Payable Outstanding Related to Capital Additions1 | $ | 24,526 | $ | 22,951 | |||||||||||||||||
Accounts Receivable Outstanding Related to Joint Plant Owner’s Share of Capital Additions2 | $ | 4,594 | $ | 3,264 | |||||||||||||||||
1Amounts are included in cash used for capital expenditures in subsequent periods when payables are settled. | |||||||||||||||||||||
2Amounts are deducted from cash used for capital expenditures in subsequent periods when cash is received. | |||||||||||||||||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||
Cash Paid (Received) During the Year for: | |||||||||||||||||||||
Interest (net of amount capitalized) | $ | 26,364 | $ | 26,789 | $ | 30,741 | |||||||||||||||
Income Taxes | $ | 145 | $ | (453 | ) | $ | (353 | ) | |||||||||||||
IMD, Inc. | |||||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Schedule of impairment charges | (in thousands) | ||||||||||||||||||||
Long-Lived Assets (net of accumulated depreciation) | $ | 45,285 | |||||||||||||||||||
Goodwill | 288 | ||||||||||||||||||||
Total Asset Impairment Charges | $ | 45,573 | |||||||||||||||||||
Shrco, Inc. | |||||||||||||||||||||
Significant Accounting Policies [Line Items] | |||||||||||||||||||||
Schedule of impairment charges | (in thousands) | ||||||||||||||||||||
Long-Lived Assets (net of accumulated depreciation) | $ | 5,859 | |||||||||||||||||||
Inventory | 782 | ||||||||||||||||||||
Accrued Selling Costs | 1,106 | ||||||||||||||||||||
Total Impairment Charges | $ | 7,747 |
Business_Combinations_Disposit1
Business Combinations, Dispositions and Segment Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Business Combinations, Dispositions and Segment Information [Abstract] | |||||||||||||
Schedule of percent of consolidated sales revenue by country | Percent of Sales Revenue by Country for the Year Ended December 31: | 2014 | 2013 | 2012 | |||||||||
United States of America | 95.9 | % | 97.2 | % | 97.3 | % | |||||||
Mexico | 3 | % | 1.7 | % | 1.3 | % | |||||||
Canada | 0.9 | % | 1 | % | 1.4 | % | |||||||
All Other Countries (none greater than 0.05%) | 0.2 | % | 0.1 | % | 0 | % | |||||||
Schedule of information by business segments | (in thousands) | 2014 | 2013 | 2012 | |||||||||
Operating Revenue | |||||||||||||
Electric | $ | 407,743 | $ | 373,540 | $ | 350,765 | |||||||
Manufacturing | 219,583 | 204,997 | 208,965 | ||||||||||
Plastics | 172,050 | 164,957 | 150,517 | ||||||||||
Intersegment Eliminations | (114 | ) | (80 | ) | (82 | ) | |||||||
Total | $ | 799,262 | $ | 743,414 | $ | 710,165 | |||||||
Cost of Products Sold | |||||||||||||
Manufacturing | $ | 169,033 | $ | 154,235 | $ | 157,437 | |||||||
Plastics | 139,081 | 129,042 | 112,662 | ||||||||||
Intersegment Eliminations | (45 | ) | (10 | ) | (54 | ) | |||||||
Total | $ | 308,069 | $ | 283,267 | $ | 270,045 | |||||||
Other Nonelectric Expenses | |||||||||||||
Manufacturing | $ | 23,340 | $ | 18,820 | $ | 18,233 | |||||||
Plastics | 9,292 | 8,571 | 8,784 | ||||||||||
Corporate | 13,418 | 12,753 | 13,284 | ||||||||||
Intersegment Eliminations | (69 | ) | (70 | ) | (28 | ) | |||||||
Total | $ | 45,981 | $ | 40,074 | $ | 40,273 | |||||||
Depreciation and Amortization | |||||||||||||
Electric | $ | 44,076 | $ | 43,125 | $ | 42,051 | |||||||
Manufacturing | 10,518 | 11,194 | 12,208 | ||||||||||
Plastics | 3,364 | 3,350 | 3,118 | ||||||||||
Corporate | 116 | 207 | 480 | ||||||||||
Total | $ | 58,074 | $ | 57,876 | $ | 57,857 | |||||||
Operating Income (Loss) | |||||||||||||
Electric | $ | 76,060 | $ | 62,455 | $ | 61,025 | |||||||
Manufacturing | 16,692 | 20,748 | 21,087 | ||||||||||
Plastics | 20,313 | 23,994 | 25,953 | ||||||||||
Corporate | (13,534 | ) | (12,960 | ) | (13,764 | ) | |||||||
Total | $ | 99,531 | $ | 94,237 | $ | 94,301 | |||||||
Interest Charges | |||||||||||||
Electric | $ | 23,322 | $ | 17,461 | $ | 19,049 | |||||||
Manufacturing | 3,243 | 3,255 | 3,557 | ||||||||||
Plastics | 1,043 | 1,001 | 2,519 | ||||||||||
Corporate and Intersegment Eliminations | 2,040 | 5,257 | 6,778 | ||||||||||
Total | $ | 29,648 | $ | 26,974 | $ | 31,903 | |||||||
(in thousands) | 2014 | 2013 | 2012 | ||||||||||
Income Tax Expense (Benefit) – Continuing Operations | |||||||||||||
Electric | $ | 11,029 | $ | 9,278 | $ | 5,862 | |||||||
Manufacturing | 4,117 | 6,047 | 6,954 | ||||||||||
Plastics | 7,301 | 9,249 | 9,393 | ||||||||||
Corporate | (5,890 | ) | (12,058 | ) | (15,036 | ) | |||||||
Total | $ | 16,557 | $ | 12,516 | $ | 7,173 | |||||||
Earnings (Loss) Available for Common Shares | |||||||||||||
Electric | $ | 43,684 | $ | 38,236 | $ | 38,341 | |||||||
Manufacturing | 9,361 | 11,457 | 10,676 | ||||||||||
Plastics | 12,085 | 13,809 | 14,113 | ||||||||||
Corporate | (8,247 | ) | (15,420 | ) | (17,832 | ) | |||||||
Discontinued Operations | 840 | 2,270 | (51,307 | ) | |||||||||
Total | $ | 57,723 | $ | 50,352 | $ | (6,009 | ) | ||||||
Capital Expenditures | |||||||||||||
Electric | $ | 148,719 | $ | 149,467 | $ | 101,919 | |||||||
Manufacturing | 11,252 | 7,046 | 9,311 | ||||||||||
Plastics | 3,567 | 3,273 | 2,819 | ||||||||||
Corporate | 44 | 47 | 137 | ||||||||||
Total | $ | 163,582 | $ | 159,833 | $ | 114,186 | |||||||
Identifiable Assets | |||||||||||||
Electric | $ | 1,472,647 | $ | 1,290,416 | $ | 1,226,145 | |||||||
Manufacturing | 130,701 | 119,302 | 114,933 | ||||||||||
Plastics | 87,356 | 76,853 | 78,855 | ||||||||||
Corporate | 51,918 | 59,970 | 112,616 | ||||||||||
Assets of Discontinued Operations | 48,657 | 49,478 | 69,788 | ||||||||||
Total | $ | 1,791,279 | $ | 1,596,019 | $ | 1,602,337 |
Regulatory_Assets_and_Liabilit1
Regulatory Assets and Liabilities (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Regulatory Assets and Liabilities Disclosure [Abstract] | ||||||||||||||
Schedule of amount of regulatory assets and liabilities | 31-Dec-14 | Remaining | ||||||||||||
Recovery/ | ||||||||||||||
(in thousands) | Current | Long-Term | Total | Refund Period | ||||||||||
Regulatory Assets: | ||||||||||||||
Prior Service Costs and Actuarial Losses on Pensions and Other Postretirement Benefits1 | $ | 7,464 | $ | 101,526 | $ | 108,990 | see note | |||||||
Deferred Marked-to-Market Losses1 | 4,492 | 9,396 | 13,888 | 72 months | ||||||||||
Conservation Improvement Program Costs and Incentives2 | 5,843 | 2,500 | 8,343 | 18 months | ||||||||||
Accumulated ARO Accretion/Depreciation Adjustment1 | -- | 5,190 | 5,190 | asset lives | ||||||||||
Big Stone II Unrecovered Project Costs – Minnesota1 | 592 | 3,207 | 3,799 | 96 months | ||||||||||
Minnesota Transmission Rider Accrued Revenues2 | 943 | 2,455 | 3,398 | 24 months | ||||||||||
MISO Schedule 26/26A Transmission Cost Recovery Rider True-up1 | 2,585 | 807 | 3,392 | 24 months | ||||||||||
Debt Reacquisition Premiums1 | 351 | 1,890 | 2,241 | 213 months | ||||||||||
Deferred Income Taxes1 | -- | 2,086 | 2,086 | asset lives | ||||||||||
Recoverable Fuel and Purchased Power Costs1 | 1,114 | -- | 1,114 | 12 months | ||||||||||
North Dakota Transmission Rider Accrued Revenues2 | 859 | -- | 859 | 12 months | ||||||||||
Big Stone II Unrecovered Project Costs – South Dakota2 | 100 | 743 | 843 | 101 months | ||||||||||
North Dakota Environmental Cost Recovery Rider Accrued Revenues2 | 706 | -- | 706 | 12 months | ||||||||||
Minnesota Environmental Cost Recovery Rider Accrued Revenues2 | 186 | -- | 186 | 12 months | ||||||||||
Minnesota Renewable Resource Rider Accrued Revenues2 | -- | 68 | 68 | see note | ||||||||||
South Dakota Environmental Cost Recovery Rider Accrued Revenues2 | 38 | -- | 38 | 12 months | ||||||||||
Total Regulatory Assets | $ | 25,273 | $ | 129,868 | $ | 155,141 | ||||||||
Regulatory Liabilities: | ||||||||||||||
Accumulated Reserve for Estimated Removal Costs – Net of Salvage | $ | -- | $ | 74,237 | $ | 74,237 | asset lives | |||||||
Deferred Income Taxes | -- | 1,550 | 1,550 | asset lives | ||||||||||
North Dakota Renewable Resource Rider Accrued Refund | 933 | 85 | 1,018 | 15 months | ||||||||||
Revenue for Rate Case Expenses Subject to Refund – Minnesota | -- | 784 | 784 | see note | ||||||||||
Deferred Marked-to-Market Gains | -- | 257 | 257 | 67 months | ||||||||||
Big Stone II Over Recovered Project Costs – North Dakota | 147 | -- | 147 | 12 months | ||||||||||
Deferred Gain on Sale of Utility Property – Minnesota Portion | 6 | 100 | 106 | 228 months | ||||||||||
South Dakota Transmission Rider Accrued Refund | 48 | -- | 48 | 12 months | ||||||||||
South Dakota – Nonasset-Based Margin Sharing Excess | 24 | -- | 24 | 12 months | ||||||||||
Total Regulatory Liabilities | $ | 1,158 | $ | 77,013 | $ | 78,171 | ||||||||
Net Regulatory Asset Position | $ | 24,115 | $ | 52,855 | $ | 76,970 | ||||||||
1Costs subject to recovery without a rate of return. | ||||||||||||||
2Amount eligible for recovery under an alternative revenue program which includes an incentive or rate of return. | ||||||||||||||
31-Dec-13 | Remaining | |||||||||||||
Recovery/ | ||||||||||||||
(in thousands) | Current | Long-Term | Total | Refund Period | ||||||||||
Regulatory Assets: | ||||||||||||||
Prior Service Costs and Actuarial Losses on Pensions and Other Postretirement Benefits1 | $ | 4,095 | $ | 55,012 | $ | 59,107 | see note | |||||||
Deferred Marked-to-Market Losses1 | 3,008 | 8,674 | 11,682 | 60 months | ||||||||||
Conservation Improvement Program Costs and Incentives2 | 4,945 | 3,959 | 8,904 | 18 months | ||||||||||
Accumulated ARO Accretion/Depreciation Adjustment1 | -- | 4,646 | 4,646 | asset lives | ||||||||||
Big Stone II Unrecovered Project Costs – Minnesota1 | 558 | 3,967 | 4,525 | 81 months | ||||||||||
MISO Schedule 26/26A Transmission Cost Recovery Rider True-up1 | 1,351 | 1,753 | 3,104 | 24 months | ||||||||||
Debt Reacquisition Premiums1 | 351 | 2,241 | 2,592 | 225 months | ||||||||||
North Dakota Environmental Cost Recovery Rider Accrued Revenues2 | 2,331 | -- | 2,331 | 12 months | ||||||||||
Deferred Income Taxes1 | -- | 1,805 | 1,805 | asset lives | ||||||||||
Big Stone II Unrecovered Project Costs – South Dakota2 | 101 | 843 | 944 | 113 months | ||||||||||
North Dakota Renewable Resource Rider Accrued Revenues2 | -- | 762 | 762 | 15 months | ||||||||||
Recoverable Fuel and Purchased Power Costs1 | 760 | -- | 760 | 12 months | ||||||||||
Big Stone II Unrecovered Project Costs – North Dakota1 | 375 | -- | 375 | 3 months | ||||||||||
Minnesota Renewable Resource Rider Accrued Revenues2 | -- | 68 | 68 | see note | ||||||||||
South Dakota Transmission Rider Accrued Revenues2 | 32 | -- | 32 | 12 months | ||||||||||
Deferred Holding Company Formation Costs1 | 27 | -- | 27 | 6 months | ||||||||||
General Rate Case Recoverable Expenses – South Dakota1 | 6 | -- | 6 | 1 month | ||||||||||
Total Regulatory Assets | $ | 17,940 | $ | 83,730 | $ | 101,670 | ||||||||
Regulatory Liabilities: | ||||||||||||||
Accumulated Reserve for Estimated Removal Costs – Net of Salvage | $ | -- | $ | 71,454 | $ | 71,454 | asset lives | |||||||
Deferred Income Taxes | -- | 1,960 | 1,960 | asset lives | ||||||||||
Minnesota Transmission Rider Accrued Refund | 670 | -- | 670 | 12 months | ||||||||||
Revenue for Rate Case Expenses Subject to Refund – Minnesota | -- | 289 | 289 | see note | ||||||||||
North Dakota Renewable Resource Rider Accrued Refund | 261 | -- | 261 | 12 months | ||||||||||
North Dakota Transmission Rider Accrued Refund | 215 | -- | 215 | 12 months | ||||||||||
Deferred Marked-to-Market Gains | 6 | 117 | 123 | 56 months | ||||||||||
Deferred Gain on Sale of Utility Property – Minnesota Portion | 5 | 106 | 111 | 240 months | ||||||||||
South Dakota – Nonasset-Based Margin Sharing Excess | 38 | -- | 38 | 12 months | ||||||||||
Total Regulatory Liabilities | $ | 1,195 | $ | 73,926 | $ | 75,121 | ||||||||
Net Regulatory Asset Position | $ | 16,745 | $ | 9,804 | $ | 26,549 | ||||||||
1Costs subject to recovery without a rate of return. | ||||||||||||||
2Amount eligible for recovery under an alternative revenue program which includes an incentive or rate of return. |
Forward_Contracts_Classified_a1
Forward Contracts Classified as Derivatives (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||
Schedule of electric wholesale revenues | (in thousands) | 2014 | 2013 | 2012 | |||||||||
Wholesale Sales - Company-Owned Generation | $ | 11,160 | $ | 14,846 | $ | 12,951 | |||||||
Revenue from Settled Contracts at Market Prices | 131,952 | 133,238 | 160,987 | ||||||||||
Market Cost of Settled Contracts | (130,908 | ) | (132,055 | ) | (159,500 | ) | |||||||
Net Margins on Settled Contracts at Market | 1,044 | 1,183 | 1,487 | ||||||||||
Marked-to-Market Gains on Settled Contracts | 263 | 3,039 | 7,864 | ||||||||||
Marked-to-Market Losses on Settled Contracts | (276 | ) | (2,722 | ) | (7,974 | ) | |||||||
Net Marked-to-Market (Losses) Gains on Settled Contracts | (13 | ) | 317 | (110 | ) | ||||||||
Unrealized Marked-to-Market Gains on Open Contracts | -- | 215 | 284 | ||||||||||
Unrealized Marked-to-Market Losses on Open Contracts | (-- | ) | (100 | ) | (235 | ) | |||||||
Net Unrealized Marked-to-Market Gains on Open Contracts | -- | 115 | 49 | ||||||||||
Wholesale Electric Revenue | $ | 12,191 | $ | 16,461 | $ | 14,377 | |||||||
Schedule for fair value amounts of the company's forward energy contracts classified as derivatives and reconciliation of changes in balance sheet position | (in thousands) | 31-Dec-14 | 31-Dec-13 | ||||||||||
Other Current Asset – Marked-to-Market Gain | $ | 257 | $ | 338 | |||||||||
Regulatory Asset – Current Deferred Marked-to-Market Loss | 4,492 | 3,008 | |||||||||||
Regulatory Asset – Long-Term Deferred Marked-to-Market Loss | 9,396 | 8,674 | |||||||||||
Total Assets | 14,145 | 12,020 | |||||||||||
Current Liability – Marked-to-Market Loss | (13,888 | ) | (11,782 | ) | |||||||||
Regulatory Liability – Current Deferred Marked-to-Market Gain | -- | (6 | ) | ||||||||||
Regulatory Liability – Long-Term Deferred Marked-to-Market Gain | (257 | ) | (117 | ) | |||||||||
Total Liabilities | (14,145 | ) | (11,905 | ) | |||||||||
Net Fair Value of Marked-to-Market Energy Contracts | $ | -- | $ | 115 | |||||||||
(in thousands) | Year ended | Year ended | |||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||
Cumulative Fair Value Adjustments Included in Earnings - Beginning of Period | $ | 115 | $ | 49 | |||||||||
Less: Amounts Realized on Settlement of Contracts Entered into in Prior Periods | (72 | ) | (49 | ) | |||||||||
Changes in Fair Value of Contracts Entered into in Prior Periods | (43 | ) | -- | ||||||||||
Cumulative Fair Value Adjustments in Earnings of Contracts Entered into in Prior Years at End of Period | -- | -- | |||||||||||
Changes in Fair Value of Contracts Entered into in Current Period | -- | 115 | |||||||||||
Cumulative Fair Value Adjustments Included in Earnings - End of Period | $ | -- | $ | 115 | |||||||||
Schedule of derivative asset and derivative liability balances subject to legally enforceable netting arrangements | (in thousands) | 31-Dec-14 | 31-Dec-13 | ||||||||||
Derivative Assets Subject to Legally Enforceable Netting Arrangements | $ | 257 | $ | 400 | |||||||||
Derivative Liabilities Subject to Legally Enforceable Netting Arrangements | (14,230 | ) | (11,782 | ) | |||||||||
Net Balance Subject to Legally Enforceable Netting Arrangements | $ | (13,973 | ) | $ | (11,382 | ) | |||||||
Schedule of breakdown of OTP's credit risk standing on forward energy contracts in marked-to-market loss positions | Current Liability – Marked-to-Market Loss (in thousands) | December 31, | December 31, | ||||||||||
2014 | 2013 | ||||||||||||
Loss Contracts Covered by Deposited Funds or Letters of Credit | $ | 45 | $ | -- | |||||||||
Contracts Requiring Cash Deposits if OTP’s Credit Falls Below Investment Grade1 | 13,888 | 11,679 | |||||||||||
Loss Contracts with No Ratings Triggers or Deposit Requirements | 297 | 103 | |||||||||||
Total Current Liability – Marked-to-Market Loss | $ | 14,230 | $ | 11,782 | |||||||||
1Certain OTP derivative energy contracts contain provisions that require an investment grade credit rating from each of the major credit rating agencies on OTP’s debt. If OTP’s debt ratings were to fall below investment grade, the counterparties to these forward energy contracts could request the immediate deposit of cash to cover contracts in net liability positions. | |||||||||||||
Contracts Requiring Cash Deposits if OTP’s Credit Falls Below Investment Grade | $ | 13,888 | $ | 11,679 | |||||||||
Offsetting Gains with Counterparties under Master Netting Agreements | (257 | ) | (117 | ) | |||||||||
Reporting Date Deposit Requirement if Credit Risk Feature Triggered | $ | 13,631 | $ | 11,562 |
Common_Shares_and_Earnings_Per1
Common Shares and Earnings Per Share (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Stockholders Equity and Earnings Per Share [Abstract] | |||||
Schedule of reconciliation of Company's common shares outstanding | Common Shares Outstanding, December 31, 2013 | 36,271,696 | |||
Issuances: | |||||
At-the-Market Offering | 519,636 | ||||
Automatic Dividend Reinvestment and Share Purchase Plan: | |||||
Dividends Reinvested | 180,818 | ||||
Cash Invested | 81,533 | ||||
Employee Stock Purchase Plan: | |||||
Cash Invested | 39,222 | ||||
Dividends Reinvested | 25,694 | ||||
Restricted Stock Issued to Employees | 26,700 | ||||
Employee Stock Ownership Plan | 22,650 | ||||
Executive Stock Performance Awards (2011-2013 shares earned) | 22,630 | ||||
Stock Options Exercised | 20,800 | ||||
Restricted Stock Issued to Directors | 16,800 | ||||
Vesting of Restricted Stock Units | 14,305 | ||||
Directors Deferred Compensation | 498 | ||||
Retirements: | |||||
Shares Withheld for Individual Income Tax Requirements | (20,554 | ) | |||
Forfeiture of Unvested Restricted Stock | (4,375 | ) | |||
Common Shares Outstanding, December 31, 2014 | 37,218,053 | ||||
Schedule of outstanding stock options excluded from the calculation of diluted earnings per share | Year | Options Outstanding | Range of Exercise Prices | ||
2014 | -- | -- | |||
2013 | -- | -- | |||
2012 | 92,497 | $24.93 – $27.245 |
ShareBased_Payments_Tables
Share-Based Payments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||
Schedule of stock options outstanding | Exercise Price | Outstanding and | Remaining Contractual Life | |||||||||||||||||||||||||||
Exercisable as of | ||||||||||||||||||||||||||||||
12/31/14 | ||||||||||||||||||||||||||||||
$24.93 | 12,750 | Expire on April 10, 2015 | ||||||||||||||||||||||||||||
Schedule of stock options activity | Stock Option Activity | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Options | Average | Options | Average | Options | Average | |||||||||||||||||||||||||
Exercise | Exercise | Exercise | ||||||||||||||||||||||||||||
Price | Price | Price | ||||||||||||||||||||||||||||
Outstanding, Beginning of Year | 34,700 | $ | 25.69 | 92,497 | $ | 26.59 | 156,397 | $ | 28.53 | |||||||||||||||||||||
Granted | -- | -- | -- | -- | -- | -- | ||||||||||||||||||||||||
Exercised | 20,800 | 26.11 | 56,109 | 27.12 | -- | -- | ||||||||||||||||||||||||
Forfeited or Expired | 1,150 | 26.495 | 1,688 | 27.245 | 63,900 | 31.34 | ||||||||||||||||||||||||
Outstanding, End of Year | 12,750 | 24.93 | 34,700 | 25.69 | 92,497 | 26.59 | ||||||||||||||||||||||||
Exercisable, End of Year | 12,750 | 24.93 | 34,700 | 25.69 | 92,497 | 26.59 | ||||||||||||||||||||||||
Cash Received for Options Exercised | $543,000 | $1,522,000 | -- | |||||||||||||||||||||||||||
Intrinsic Value of Options Exercised | 89,000 | 152,000 | -- | |||||||||||||||||||||||||||
Fair Value of Options Granted During Year | none granted | none granted | none granted | |||||||||||||||||||||||||||
Schedule of the status of directors' restricted stock awards | Directors’ Restricted Stock Awards | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||||||||
Grant-Date | Grant-Date | Grant-Date | ||||||||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | ||||||||||||||||||||||||||||
Nonvested, Beginning of Year | 42,483 | $ | 25.03 | 56,900 | $ | 21.84 | 54,250 | $ | 23.26 | |||||||||||||||||||||
Granted | 16,800 | 29.41 | 17,333 | 30.77 | 24,000 | 21.32 | ||||||||||||||||||||||||
Vested | 21,233 | 24.11 | 29,750 | 21.87 | 21,350 | 24.86 | ||||||||||||||||||||||||
Forfeited | -- | 2,000 | 31.03 | -- | ||||||||||||||||||||||||||
Nonvested, End of Year | 38,050 | 27.47 | 42,483 | 25.03 | 56,900 | 21.84 | ||||||||||||||||||||||||
Compensation Expense Recognized | $416,000 | $611,000 | $552,000 | |||||||||||||||||||||||||||
Fair Value of Shares Vested in Year | 512,000 | 651,000 | 531,000 | |||||||||||||||||||||||||||
Schedule of status of employees' restricted stock awards | ||||||||||||||||||||||||||||||
Employees’ Restricted Stock Awards | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | |||||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||||||||
Grant-Date | Grant-Date | Grant-Date | ||||||||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | ||||||||||||||||||||||||||||
Nonvested, Beginning of Year | 48,315 | $ | 25.04 | 47,645 | $ | 21.82 | 34,868 | $ | 22.86 | |||||||||||||||||||||
Granted | 26,700 | 29.41 | 17,000 | 31.03 | 26,120 | 21.48 | ||||||||||||||||||||||||
Awards Vested | 25,360 | 24.8 | 16,330 | 21.89 | 11,518 | 24.14 | ||||||||||||||||||||||||
Forfeited | 4,375 | 28.03 | -- | 1,825 | 22.2 | |||||||||||||||||||||||||
Nonvested, End of Year | 45,280 | 27.46 | 48,315 | 25.04 | 47,645 | 21.82 | ||||||||||||||||||||||||
Compensation Expense Recognized | $998,000 | $427,000 | $325,000 | |||||||||||||||||||||||||||
Fair Value of Awards Vested | 629,000 | 358,000 | 278,000 | |||||||||||||||||||||||||||
Schedule of status of employees' restricted stock unit awards | ||||||||||||||||||||||||||||||
Employees’ Restricted Stock Unit Awards | 2014 | 2013 | 2012 | |||||||||||||||||||||||||||
Restricted | Weighted | Restricted | Weighted | Restricted | Weighted | |||||||||||||||||||||||||
Stock | Average | Stock | Average | Stock | Average | |||||||||||||||||||||||||
Units | Grant-Date | Units | Grant-Date | Units | Grant-Date | |||||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | ||||||||||||||||||||||||||||
Nonvested, Beginning of Year | 56,180 | $ | 19.79 | 60,665 | $ | 18.11 | 73,815 | $ | 20.95 | |||||||||||||||||||||
Granted | 11,800 | 24.95 | 15,150 | 25.3 | 15,800 | 17.66 | ||||||||||||||||||||||||
Reinstated | 75 | 30.81 | -- | -- | ||||||||||||||||||||||||||
Vested | 14,305 | 18.05 | 17,535 | 18.73 | 20,750 | 27.13 | ||||||||||||||||||||||||
Forfeited | 7,850 | 18.9 | 2,100 | 19.88 | 8,200 | 19.97 | ||||||||||||||||||||||||
Nonvested, End of Year | 45,900 | 21.82 | 56,180 | 19.79 | 60,665 | 18.11 | ||||||||||||||||||||||||
Compensation Expense Recognized | $194,000 | $275,000 | $256,000 | |||||||||||||||||||||||||||
Fair Value of Units Converted in Year | 258,000 | 328,000 | 563,000 | |||||||||||||||||||||||||||
Executive Officers | ||||||||||||||||||||||||||||||
Schedule of stock performance awards granted and amounts expensed related to the stock performance awards | Performance | Maximum | Shares Used | Average | Expense Recognized | Shares | ||||||||||||||||||||||||
Period | Shares Subject | To Estimate | Grant-Date | in the Year Ended December 31, | Awarded | |||||||||||||||||||||||||
To Award | Expense | Fair Value | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
2014-2016 | 159,450 | 106,300 | $ | 22.94 | $ | 1,422,000 | $ | -- | $ | -- | -- | |||||||||||||||||||
2013-2015 | 90,600 | 45,300 | $ | 37.51 | 458,000 | 580,000 | -- | -- | ||||||||||||||||||||||
2012-2014 | 148,400 | 74,200 | $ | 21.75 | 142,000 | 1,686,000 | 1,001,000 | 89,991 | ||||||||||||||||||||||
2011-2013 | 90,600 | 45,300 | $ | 23.61 | -- | 412,000 | 254,000 | 48,730 | ||||||||||||||||||||||
2010-2012 | 138,800 | 69,400 | $ | 20.97 | -- | -- | -- | 49,500 | ||||||||||||||||||||||
Total | $ | 2,022,000 | $ | 2,678,000 | $ | 1,255,000 | 188,221 |
Commitments_and_Contingencies_1
Commitments and Contingencies of Continuing Operations (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||
Schedule of amounts of commitments under construction programs, capacity and energy agreements, coal and coal delivery contracts and operating leases | Construction Program Commitments | Capacity and Energy Requirements | Coal and Freight Purchase | Operating Leases | |||||||||||||||||||||
(in thousands) | Commitments | OTP | Nonelectric | Total | |||||||||||||||||||||
2015 | $ | 48,708 | $ | 34,383 | $ | 49,739 | $ | 1,958 | $ | 5,114 | $ | 7,072 | |||||||||||||
2016 | 40,653 | 22,812 | 22,943 | 1,371 | 4,056 | 5,427 | |||||||||||||||||||
2017 | 17,163 | 22,123 | 28,146 | 978 | 3,333 | 4,311 | |||||||||||||||||||
2018 | 100 | 22,729 | 23,135 | 990 | 2,744 | 3,734 | |||||||||||||||||||
2019 | -- | 24,532 | 23,072 | 1,002 | 1,223 | 2,225 | |||||||||||||||||||
Beyond 2019 | -- | 217,359 | 598,742 | 10,824 | 3,766 | 14,590 | |||||||||||||||||||
Total | $ | 106,624 | $ | 343,938 | $ | 745,777 | $ | 17,123 | $ | 20,236 | $ | 37,359 |
ShortTerm_and_LongTerm_Borrowi1
Short-Term and Long-Term Borrowings and Preferred Stock Redemption (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||
Schedule of lines of credit | (in thousands) | Line Limit | In Use on | Restricted due to | Available on | Available on | |||||||||||||||
December 31, | Outstanding | December 31, | December 31, | ||||||||||||||||||
2014 | Letters of Credit | 2014 | 2013 | ||||||||||||||||||
Otter Tail Corporation Credit Agreement | $ | 150,000 | $ | 10,854 | $ | 274 | $ | 138,872 | $ | 149,341 | |||||||||||
OTP Credit Agreement | 170,000 | -- | 560 | 169,440 | 116,975 | ||||||||||||||||
Total | $ | 320,000 | $ | 10,854 | $ | 834 | $ | 308,312 | $ | 266,316 | |||||||||||
Schedule of aggregate amounts of maturities on bonds outstanding and other long-term obligations | (in thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||
Aggregate Amounts of Debt Maturities | $ | 201 | $ | 52,544 | $ | 33,228 | $ | 187 | $ | 172 | |||||||||||
Schedule of short-term and long-term debt outstanding | December 31, 2014 (in thousands) | OTP | Otter Tail | Otter Tail | |||||||||||||||||
Corporation | Corporation Consolidated | ||||||||||||||||||||
Short-Term Debt | $ | -- | $ | 10,854 | $ | 10,854 | |||||||||||||||
Long-Term Debt: | |||||||||||||||||||||
9.000% Notes, due December 15, 2016 | $ | 52,330 | $ | 52,330 | |||||||||||||||||
Senior Unsecured Notes 5.95%, Series A, due August 20, 2017 | $ | 33,000 | 33,000 | ||||||||||||||||||
Senior Unsecured Notes 4.63%, due December 1, 2021 | 140,000 | 140,000 | |||||||||||||||||||
Senior Unsecured Notes 6.15%, Series B, due August 20, 2022 | 30,000 | 30,000 | |||||||||||||||||||
Senior Unsecured Notes 6.37%, Series C, due August 20, 2027 | 42,000 | 42,000 | |||||||||||||||||||
Senior Unsecured Notes 4.68%, Series A, due February 27, 2029 | 60,000 | 60,000 | |||||||||||||||||||
Senior Unsecured Notes 6.47%, Series D, due August 20, 2037 | 50,000 | 50,000 | |||||||||||||||||||
Senior Unsecured Notes 5.47%, Series B, due February 27, 2044 | 90,000 | 90,000 | |||||||||||||||||||
North Dakota Development Note, 3.95%, due April 1, 2018 | -- | 256 | 256 | ||||||||||||||||||
Partnership in Assisting Community Expansion (PACE) Note, 2.54%, due March 18, 2021 | -- | 1,105 | 1,105 | ||||||||||||||||||
Total | $ | 445,000 | $ | 53,691 | $ | 498,691 | |||||||||||||||
Less: Current Maturities | -- | 201 | 201 | ||||||||||||||||||
Unamortized Debt Discount | -- | 1 | 1 | ||||||||||||||||||
Total Long-Term Debt | $ | 445,000 | $ | 53,489 | $ | 498,489 | |||||||||||||||
Total Short-Term and Long-Term Debt (with current maturities) | $ | 445,000 | $ | 64,544 | $ | 509,544 | |||||||||||||||
December 31, 2013 (in thousands) | OTP | Otter Tail | Otter Tail | ||||||||||||||||||
Corporation | Corporation Consolidated | ||||||||||||||||||||
Short-Term Debt | $ | 51,195 | $ | -- | $ | 51,195 | |||||||||||||||
Long-Term Debt: | |||||||||||||||||||||
Unsecured Term Loan - LIBOR plus 0.875%, due January 15, 2015 | $ | 40,900 | $ | 40,900 | |||||||||||||||||
9.000% Notes, due December 15, 2016 | $ | 52,330 | 52,330 | ||||||||||||||||||
Senior Unsecured Notes 5.95%, Series A, due August 20, 2017 | 33,000 | 33,000 | |||||||||||||||||||
Senior Unsecured Notes 4.63%, due December 1, 2021 | 140,000 | 140,000 | |||||||||||||||||||
Senior Unsecured Notes 6.15%, Series B, due August 20, 2022 | 30,000 | 30,000 | |||||||||||||||||||
Senior Unsecured Notes 6.37%, Series C, due August 20, 2027 | 42,000 | 42,000 | |||||||||||||||||||
Senior Unsecured Notes 6.47%, Series D, due August 20, 2037 | 50,000 | 50,000 | |||||||||||||||||||
North Dakota Development Note, 3.95%, due April 1, 2018 | -- | 325 | 325 | ||||||||||||||||||
Partnership in Assisting Community Expansion (PACE) Note, 2.54%, due March 18, 2021 | -- | 1,223 | 1,223 | ||||||||||||||||||
Total | $ | 335,900 | $ | 53,878 | $ | 389,778 | |||||||||||||||
Less: Current Maturities | -- | 188 | 188 | ||||||||||||||||||
Unamortized Debt Discount | -- | 1 | 1 | ||||||||||||||||||
Total Long-Term Debt | $ | 335,900 | $ | 53,689 | $ | 389,589 | |||||||||||||||
Total Short-Term and Long-Term Debt (with current maturities) | $ | 387,095 | $ | 53,877 | $ | 440,972 |
Pension_Plan_and_Other_Postret1
Pension Plan and Other Postretirement Benefits (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Pension Plan | |||||||||||||||||||||||||
Schedule of components of net periodic benefit cost | (in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Service Cost–Benefit Earned During the Period | $ | 4,666 | $ | 5,594 | $ | 5,084 | |||||||||||||||||||
Interest Cost on Projected Benefit Obligation | 13,111 | 12,123 | 12,465 | ||||||||||||||||||||||
Expected Return on Assets | (16,743 | ) | (14,521 | ) | (14,430 | ) | |||||||||||||||||||
Amortization of Prior Service Cost: | |||||||||||||||||||||||||
From Regulatory Asset | 257 | 333 | 398 | ||||||||||||||||||||||
From Other Comprehensive Income1 | 7 | 9 | 11 | ||||||||||||||||||||||
Amortization of Net Actuarial Loss: | |||||||||||||||||||||||||
From Regulatory Asset | 3,400 | 6,600 | 4,910 | ||||||||||||||||||||||
From Other Comprehensive Income1 | 83 | 176 | 131 | ||||||||||||||||||||||
Net Periodic Pension Cost | $ | 4,781 | $ | 10,314 | $ | 8,569 | |||||||||||||||||||
1Corporate cost included in Other Nonelectric Expenses. | |||||||||||||||||||||||||
Schedule of weighted-average assumptions used to determine net periodic benefit cost | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Discount Rate | 5.3 | % | 4.5 | % | 5.15 | % | |||||||||||||||||||
Long-Term Rate of Return on Plan Assets | 7.75 | % | 7.75 | % | 8 | % | |||||||||||||||||||
Rate of Increase in Future Compensation Level | 3.13 | % | 3.13 | % | 3.38 | % | |||||||||||||||||||
Schedule of amounts recognized in consolidated balance sheets | (in thousands) | 2014 | 2013 | ||||||||||||||||||||||
Regulatory Assets: | |||||||||||||||||||||||||
Unrecognized Prior Service Cost | $ | 518 | $ | 776 | |||||||||||||||||||||
Unrecognized Actuarial Loss | 97,722 | 56,051 | |||||||||||||||||||||||
Total Regulatory Assets | $ | 98,240 | $ | 56,827 | |||||||||||||||||||||
Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||||
Unrecognized Prior Service Cost | $ | 21 | $ | 28 | |||||||||||||||||||||
Unrecognized Actuarial Loss | 899 | 448 | |||||||||||||||||||||||
Total Accumulated Other Comprehensive Loss | $ | 920 | $ | 476 | |||||||||||||||||||||
Noncurrent Liability | $ | 67,061 | $ | 40,422 | |||||||||||||||||||||
Schedule of funded status | (in thousands) | 2014 | 2013 | ||||||||||||||||||||||
Accumulated Benefit Obligation | $ | (273,903 | ) | $ | (224,365 | ) | |||||||||||||||||||
Projected Benefit Obligation | $ | (311,650 | ) | $ | (254,039 | ) | |||||||||||||||||||
Fair Value of Plan Assets | 244,589 | 213,617 | |||||||||||||||||||||||
Funded Status | $ | (67,061 | ) | $ | (40,422 | ) | |||||||||||||||||||
Schedule of reconciliation of changes in fair value of plan assets and plan's benefit obligations | (in thousands) | 2014 | 2013 | ||||||||||||||||||||||
Reconciliation of Fair Value of Plan Assets: | |||||||||||||||||||||||||
Fair Value of Plan Assets at January 1 | $ | 213,617 | $ | 191,018 | |||||||||||||||||||||
Actual Return on Plan Assets | 21,874 | 23,044 | |||||||||||||||||||||||
Discretionary Company Contributions | 20,000 | 10,000 | |||||||||||||||||||||||
Benefit Payments | (10,902 | ) | (10,445 | ) | |||||||||||||||||||||
Fair Value of Plan Assets at December 31 | $ | 244,589 | $ | 213,617 | |||||||||||||||||||||
Estimated Asset Return | 9.6 | % | 11.8 | % | |||||||||||||||||||||
Reconciliation of Projected Benefit Obligation: | |||||||||||||||||||||||||
Projected Benefit Obligation at January 1 | $ | 254,039 | $ | 275,634 | |||||||||||||||||||||
Service Cost | 4,666 | 5,594 | |||||||||||||||||||||||
Interest Cost | 13,111 | 12,123 | |||||||||||||||||||||||
Benefit Payments | (10,902 | ) | (10,445 | ) | |||||||||||||||||||||
Actuarial Loss (Gain) | 50,736 | (28,867 | ) | ||||||||||||||||||||||
Projected Benefit Obligation at December 31 | $ | 311,650 | $ | 254,039 | |||||||||||||||||||||
Schedule of weighted average assumptions used to determine benefit obligations | 2014 | 2013 | |||||||||||||||||||||||
Discount Rate | 4.35 | % | 5.3 | % | |||||||||||||||||||||
Rate of Increase in Future Compensation Level | 3.13 | % | 3.13 | % | |||||||||||||||||||||
Schedule of measurement dates | Measurement Dates: | 2014 | 2013 | ||||||||||||||||||||||
Net Periodic Pension Cost | 1-Jan-14 | 1-Jan-13 | |||||||||||||||||||||||
End of Year Benefit Obligations | January 1, 2014 projected to December 31, 2014 | January 1, 2013 projected to December 31, 2013 | |||||||||||||||||||||||
Market Value of Assets | 31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||
Schedule of estimated amounts of unrecognized net actuarial losses and prior service costs to be amortized | (in thousands) | 2015 | |||||||||||||||||||||||
Decrease in Regulatory Assets: | |||||||||||||||||||||||||
Amortization of Unrecognized Prior Service Cost | $ | 189 | |||||||||||||||||||||||
Amortization of Unrecognized Actuarial Loss | 6,529 | ||||||||||||||||||||||||
Decrease in Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||||
Amortization of Unrecognized Prior Service Cost | 5 | ||||||||||||||||||||||||
Amortization of Unrecognized Actuarial Loss | 161 | ||||||||||||||||||||||||
Total Estimated Amortization | $ | 6,884 | |||||||||||||||||||||||
Schedule of benefit payments, which reflect expected future service, as appropriate, expected to be paid out from plan assets | (in thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | Years | ||||||||||||||||||
2020-2024 | |||||||||||||||||||||||||
$ | 11,858 | $ | 12,462 | $ | 13,116 | $ | 13,941 | $ | 14,665 | $ | 85,322 | ||||||||||||||
Schedule of allocation targets and tactical ranges reflecting investment policy statement approved by BAC | Permitted Range | ||||||||||||||||||||||||
Asset Class / PBO Funded Status | < 100% PBO | 100% PBO | 105% PBO | >0% PBO | |||||||||||||||||||||
Equity | 30% - 65 | % | 25% - 60 | % | 20% - 55 | % | 15% - 50 | % | |||||||||||||||||
Investment Grade Fixed Income | 35% - 75 | % | 40% - 80 | % | 45% - 85 | % | 50% - 90 | % | |||||||||||||||||
Below Investment Grade Fixed Income* | 0% - 15 | % | 0% - 15 | % | 0% - 15 | % | 0% - 15 | % | |||||||||||||||||
Other** | 0% - 20 | % | 0% - 20 | % | 0% - 20 | % | 0% - 20 | % | |||||||||||||||||
* Includes (but not limited to) High Yield Bond Fund and Emerging Markets Debt funds. | |||||||||||||||||||||||||
** Other category may include cash, alternatives, and/or other investment strategies that may be classified other than equity or fixed income, such as the Dynamic Asset Allocation fund. | |||||||||||||||||||||||||
Schedule Of pension plan asset allocations by asset category | Asset Allocation | 2014 | 2013 | ||||||||||||||||||||||
Large Capitalization Equity Securities | 21 | % | 21 | % | |||||||||||||||||||||
International Equity Securities | 18.9 | % | 21.7 | % | |||||||||||||||||||||
Small and Mid-Capitalization Equity Securities | 7.9 | % | 8.5 | % | |||||||||||||||||||||
SEI Dynamic Asset Allocation Fund | 5.5 | % | 5.2 | % | |||||||||||||||||||||
Equity Securities | 53.3 | % | 56.4 | % | |||||||||||||||||||||
Fixed-Income Securities and Cash | 42.7 | % | 39.3 | % | |||||||||||||||||||||
Other - SEI Special Situation Collective Investment Trust | 4 | % | 4.3 | % | |||||||||||||||||||||
100 | % | 100 | % | ||||||||||||||||||||||
Schedule of pension fund assets measured at fair value | 2014 (in thousands) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||
Large Capitalization Equity Securities Mutual Fund | $ | 51,404 | |||||||||||||||||||||||
International Equity Securities Mutual Funds | 46,287 | ||||||||||||||||||||||||
Small and Mid-Capitalization Equity Securities Mutual Fund | 19,189 | ||||||||||||||||||||||||
SEI Dynamic Asset Allocation Mutual Fund | 13,543 | ||||||||||||||||||||||||
Fixed Income Securities Mutual Funds | 104,360 | ||||||||||||||||||||||||
Cash Management – Money Market Fund | 5 | ||||||||||||||||||||||||
SEI Special Situation Collective Investment Trust Fund | $ | 9,801 | |||||||||||||||||||||||
Total Assets | $ | 234,788 | $ | 9,801 | $ | -- | |||||||||||||||||||
2013 (in thousands) | |||||||||||||||||||||||||
Large Capitalization Equity Securities Mutual Fund | $ | 44,882 | |||||||||||||||||||||||
International Equity Securities Mutual Funds | 46,412 | ||||||||||||||||||||||||
Small and Mid-Capitalization Equity Securities Mutual Fund | 18,151 | ||||||||||||||||||||||||
SEI Dynamic Asset Allocation Mutual Fund | 11,159 | ||||||||||||||||||||||||
Fixed Income Securities Mutual Funds | 83,843 | ||||||||||||||||||||||||
Cash Management – Money Market Fund | -- | ||||||||||||||||||||||||
SEI Special Situation Collective Investment Trust Fund | $ | 9,170 | |||||||||||||||||||||||
Total Assets | $ | 204,447 | $ | 9,170 | $ | -- | |||||||||||||||||||
Executive Survivor and Supplemental Retirement Plan (ESSRP) | |||||||||||||||||||||||||
Schedule of components of net periodic benefit cost | (in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Service Cost–Benefit Earned During the Period | $ | 51 | $ | 51 | $ | 45 | |||||||||||||||||||
Interest Cost on Projected Benefit Obligation | 1,520 | 1,408 | 1,479 | ||||||||||||||||||||||
Amortization of Prior Service Cost: | |||||||||||||||||||||||||
From Regulatory Asset | 22 | 22 | 22 | ||||||||||||||||||||||
From Other Comprehensive Income1 | 51 | 51 | 51 | ||||||||||||||||||||||
Amortization of Net Actuarial Loss: | |||||||||||||||||||||||||
From Regulatory Asset | 142 | 208 | 175 | ||||||||||||||||||||||
From Other Comprehensive Income2 | 46 | 313 | 152 | ||||||||||||||||||||||
Net Periodic Pension Cost | $ | 1,832 | $ | 2,053 | $ | 1,924 | |||||||||||||||||||
1Amortization of Prior Service Costs from Other Comprehensive Income Charged to: | |||||||||||||||||||||||||
Electric Operation and Maintenance Expenses | $ | 20 | $ | 20 | $ | 20 | |||||||||||||||||||
Other Nonelectric Expenses | 31 | 31 | 31 | ||||||||||||||||||||||
2Amortization of Net Actuarial Loss from Other Comprehensive Income Charged to: | |||||||||||||||||||||||||
Electric Operation and Maintenance Expenses | $ | 132 | $ | 193 | $ | 162 | |||||||||||||||||||
Other Nonelectric Expenses | (86 | ) | 120 | (10 | ) | ||||||||||||||||||||
Schedule of weighted-average assumptions used to determine net periodic benefit cost | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Discount Rate | 5.3 | % | 4.5 | % | 5.15 | % | |||||||||||||||||||
Rate of Increase in Future Compensation Level | 3.18 | % | 3.19 | % | 4.59 | % | |||||||||||||||||||
Schedule of amounts recognized in consolidated balance sheets | (in thousands) | 2014 | 2013 | ||||||||||||||||||||||
Regulatory Assets: | |||||||||||||||||||||||||
Unrecognized Prior Service Cost | $ | 91 | $ | 113 | |||||||||||||||||||||
Unrecognized Actuarial Loss | 3,238 | 1,971 | |||||||||||||||||||||||
Total Regulatory Assets | $ | 3,329 | $ | 2,084 | |||||||||||||||||||||
Projected Benefit Obligation Liability – Net Amount Recognized | $ | (35,650 | ) | $ | (29,321 | ) | |||||||||||||||||||
Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||||
Unrecognized Prior Service Cost | $ | 210 | $ | 261 | |||||||||||||||||||||
Unrecognized Actuarial Loss | 6,881 | 2,465 | |||||||||||||||||||||||
Total Accumulated Other Comprehensive Loss | $ | 7,091 | $ | 2,726 | |||||||||||||||||||||
Schedule of reconciliation of changes in fair value of plan assets and plan's benefit obligations | (in thousands) | 2014 | 2013 | ||||||||||||||||||||||
Reconciliation of Fair Value of Plan Assets: | |||||||||||||||||||||||||
Fair Value of Plan Assets at January 1 | $ | -- | $ | -- | |||||||||||||||||||||
Actual Return on Plan Assets | -- | -- | |||||||||||||||||||||||
Employer Contributions | 1,113 | 1,137 | |||||||||||||||||||||||
Benefit Payments | (1,113 | ) | (1,137 | ) | |||||||||||||||||||||
Fair Value of Plan Assets at December 31 | $ | -- | $ | -- | |||||||||||||||||||||
Reconciliation of Projected Benefit Obligation: | |||||||||||||||||||||||||
Projected Benefit Obligation at January 1 | $ | 29,321 | $ | 31,925 | |||||||||||||||||||||
Service Cost | 51 | 51 | |||||||||||||||||||||||
Interest Cost | 1,520 | 1,408 | |||||||||||||||||||||||
Benefit Payments | (1,113 | ) | (1,137 | ) | |||||||||||||||||||||
Plan Amendments | -- | -- | |||||||||||||||||||||||
Actuarial Loss (Gain) | 5,871 | (2,926 | ) | ||||||||||||||||||||||
Projected Benefit Obligation at December 31 | $ | 35,650 | $ | 29,321 | |||||||||||||||||||||
Reconciliation of Funded Status: | |||||||||||||||||||||||||
Funded Status at December 31 | $ | (35,650 | ) | $ | (29,321 | ) | |||||||||||||||||||
Unrecognized Net Actuarial Loss | 10,119 | 4,436 | |||||||||||||||||||||||
Unrecognized Prior Service Cost | 301 | 374 | |||||||||||||||||||||||
Cumulative Employer Contributions in Excess of Net Periodic Benefit Cost | $ | (25,230 | ) | $ | (24,511 | ) | |||||||||||||||||||
Schedule of weighted average assumptions used to determine benefit obligations | 2014 | 2013 | |||||||||||||||||||||||
Discount Rate | 4.35 | % | 5.3 | % | |||||||||||||||||||||
Rate of Increase in Future Compensation Level | 3.15 | % | 3.18 | % | |||||||||||||||||||||
Schedule of estimated amounts of unrecognized net actuarial losses and prior service costs to be amortized | (in thousands) | 2015 | |||||||||||||||||||||||
Decrease in Regulatory Assets: | |||||||||||||||||||||||||
Amortization of Unrecognized Prior Service Cost | $ | 16 | |||||||||||||||||||||||
Amortization of Unrecognized Actuarial Loss | 334 | ||||||||||||||||||||||||
Decrease in Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||||
Amortization of Unrecognized Prior Service Cost | 38 | ||||||||||||||||||||||||
Amortization of Unrecognized Actuarial Loss | 602 | ||||||||||||||||||||||||
Total Estimated Amortization | $ | 990 | |||||||||||||||||||||||
Schedule of benefit payments, which reflect expected future service, as appropriate, expected to be paid out from plan assets | Years | ||||||||||||||||||||||||
(in thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | |||||||||||||||||||
$ | 1,178 | $ | 1,399 | $ | 1,376 | $ | 1,423 | $ | 1,516 | $ | 10,904 | ||||||||||||||
Other Postretirement Benefits | |||||||||||||||||||||||||
Schedule of components of net periodic benefit cost | (in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||||||
Service Cost–Benefit Earned During the Period | $ | 1,055 | $ | 1,421 | $ | 1,544 | |||||||||||||||||||
Interest Cost on Projected Benefit Obligation | 2,200 | 2,050 | 2,574 | ||||||||||||||||||||||
Amortization of Transition Obligation | |||||||||||||||||||||||||
From Regulatory Asset | -- | -- | 729 | ||||||||||||||||||||||
From Other Comprehensive Income1 | -- | -- | 19 | ||||||||||||||||||||||
Amortization of Prior Service Cost | |||||||||||||||||||||||||
From Regulatory Asset | 205 | 205 | 206 | ||||||||||||||||||||||
From Other Comprehensive Income1 | 5 | 5 | 5 | ||||||||||||||||||||||
Amortization of Net Actuarial Loss | |||||||||||||||||||||||||
From Regulatory Asset | -- | 24 | 642 | ||||||||||||||||||||||
From Other Comprehensive Income1 | -- | 1 | 17 | ||||||||||||||||||||||
Net Periodic Postretirement Benefit Cost | $ | 3,465 | $ | 3,706 | $ | 5,736 | |||||||||||||||||||
Effect of Medicare Part D Subsidy | $ | (948 | ) | $ | (1,806 | ) | $ | (2,039 | ) | ||||||||||||||||
1Corporate cost included in Other Nonelectric Expenses. | |||||||||||||||||||||||||
Schedule of weighted-average assumptions used to determine net periodic benefit cost | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Discount Rate | 5.1 | % | 4.25 | % | 5.05 | % | |||||||||||||||||||
Schedule of amounts recognized in consolidated balance sheets | (in thousands) | 2014 | 2013 | ||||||||||||||||||||||
Regulatory Asset: | |||||||||||||||||||||||||
Unrecognized Prior Service Cost | $ | 335 | $ | 540 | |||||||||||||||||||||
Unrecognized Net Actuarial Loss (Gain) | 7,086 | (344 | ) | ||||||||||||||||||||||
Net Regulatory Asset | $ | 7,421 | $ | 196 | |||||||||||||||||||||
Projected Benefit Obligation Liability – Net Amount Recognized | $ | (53,638 | ) | $ | (45,221 | ) | |||||||||||||||||||
Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||||
Unrecognized Prior Service Cost | $ | 13 | $ | 18 | |||||||||||||||||||||
Unrecognized Net Actuarial Gain | (209 | ) | (261 | ) | |||||||||||||||||||||
Accumulated Other Comprehensive Gain | $ | (196 | ) | $ | (243 | ) | |||||||||||||||||||
Schedule of reconciliation of changes in fair value of plan assets and plan's benefit obligations | (in thousands) | 2014 | 2013 | ||||||||||||||||||||||
Reconciliation of Fair Value of Plan Assets: | |||||||||||||||||||||||||
Fair Value of Plan Assets at January 1 | $ | -- | $ | -- | |||||||||||||||||||||
Actual Return on Plan Assets | -- | -- | |||||||||||||||||||||||
Company Contributions | 2,320 | 2,012 | |||||||||||||||||||||||
Benefit Payments (Net of Medicare Part D Subsidy) | (5,017 | ) | (4,626 | ) | |||||||||||||||||||||
Participant Premium Payments | 2,697 | 2,614 | |||||||||||||||||||||||
Fair Value of Plan Assets at December 31 | $ | -- | $ | -- | |||||||||||||||||||||
Reconciliation of Projected Benefit Obligation: | |||||||||||||||||||||||||
Projected Benefit Obligation at January 1 | $ | 45,221 | $ | 58,883 | |||||||||||||||||||||
Service Cost (Net of Medicare Part D Subsidy) | 1,055 | 1,421 | |||||||||||||||||||||||
Interest Cost (Net of Medicare Part D Subsidy) | 2,200 | 2,050 | |||||||||||||||||||||||
Benefit Payments (Net of Medicare Part D Subsidy) | (5,017 | ) | (4,626 | ) | |||||||||||||||||||||
Participant Premium Payments | 2,697 | 2,614 | |||||||||||||||||||||||
Actuarial Loss (Gain) | 7,482 | (15,121 | ) | ||||||||||||||||||||||
Projected Benefit Obligation at December 31 | $ | 53,638 | $ | 45,221 | |||||||||||||||||||||
Reconciliation of Accrued Postretirement Cost: | |||||||||||||||||||||||||
Accrued Postretirement Cost at January 1 | $ | (45,268 | ) | $ | (43,574 | ) | |||||||||||||||||||
Expense | (3,465 | ) | (3,706 | ) | |||||||||||||||||||||
Net Company Contribution | 2,320 | 2,012 | |||||||||||||||||||||||
Accrued Postretirement Cost at December 31 | $ | (46,413 | ) | $ | (45,268 | ) | |||||||||||||||||||
Schedule of weighted average assumptions used to determine benefit obligations | 2014 | 2013 | |||||||||||||||||||||||
Discount Rate | 4.2 | % | 5.1 | % | |||||||||||||||||||||
Schedule of healthcare cost-trend rates | 2014 | 2013 | |||||||||||||||||||||||
Healthcare Cost-Trend Rate Assumed for Next Year Pre-65 | 6.32 | % | 6.47 | % | |||||||||||||||||||||
Healthcare Cost-Trend Rate Assumed for Next Year Post-65 | 6.63 | % | 6.82 | % | |||||||||||||||||||||
Rate at Which the Cost-Trend Rate is Assumed to Decline | 5 | % | 5 | % | |||||||||||||||||||||
Year the Rate Reaches the Ultimate Trend Rate | 2025 | 2025 | |||||||||||||||||||||||
Schedule of effects of one percentage change in assumed healthcare cost-trend rates | (in thousands) | 1 Point | 1 Point | ||||||||||||||||||||||
Increase | Decrease | ||||||||||||||||||||||||
Effect on the Postretirement Benefit Obligation | $ | 7,442 | $ | (6,088 | ) | ||||||||||||||||||||
Effect on Total of Service and Interest Cost | $ | 516 | $ | (414 | ) | ||||||||||||||||||||
Effect on Expense | $ | 516 | $ | (606 | ) | ||||||||||||||||||||
Schedule of measurement dates | Measurement Dates: | 2014 | 2013 | ||||||||||||||||||||||
Net Periodic Postretirement Benefit Cost | 1-Jan-14 | 1-Jan-13 | |||||||||||||||||||||||
End of Year Benefit Obligations | January 1, 2014 projected to December 31, 2014 | January 1, 2013 projected to December 31, 2013 | |||||||||||||||||||||||
Schedule of estimated amounts of unrecognized net actuarial losses and prior service costs to be amortized | (in thousands) | 2015 | |||||||||||||||||||||||
Decrease in Regulatory Assets: | |||||||||||||||||||||||||
Amortization of Unrecognized Prior Service Cost | $ | 205 | |||||||||||||||||||||||
Amortization of Unrecognized Actuarial Loss | 191 | ||||||||||||||||||||||||
Decrease in Accumulated Other Comprehensive Loss: | |||||||||||||||||||||||||
Amortization of Unrecognized Prior Service Cost | 5 | ||||||||||||||||||||||||
Amortization of Unrecognized Actuarial Loss | 5 | ||||||||||||||||||||||||
Total Estimated Amortization | $ | 406 | |||||||||||||||||||||||
Schedule of benefit payments, which reflect expected future service, as appropriate, expected to be paid out from plan assets | Years | ||||||||||||||||||||||||
(in thousands) | 2015 | 2016 | 2017 | 2018 | 2019 | 2020-2024 | |||||||||||||||||||
$ | 2,638 | $ | 2,762 | $ | 2,925 | $ | 3,086 | $ | 3,247 | $ | 17,281 |
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||
Schedule of long-term debt including current maturities | 31-Dec-14 | 31-Dec-13 | |||||||||||||||
(in thousands) | Carrying | Fair Value | Carrying | Fair Value | |||||||||||||
Amount | Amount | ||||||||||||||||
Cash and Cash Equivalents | $ | -- | $ | -- | $ | 2,007 | $ | 2,007 | |||||||||
Short‑Term Debt | (10,854 | ) | (10,854 | ) | (51,195 | ) | (51,195 | ) | |||||||||
Long‑Term Debt including Current Maturities | (498,690 | ) | (600,828 | ) | (389,777 | ) | (427,796 | ) |
Property_Plant_and_Equipment_T
Property, Plant and Equipment (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Schedule of property, plant and equipment | (in thousands) | December 31, | December 31, | ||||||
2014 | 2013 | ||||||||
Electric Plant in Service | |||||||||
Production | $ | 690,024 | $ | 679,067 | |||||
Transmission | 323,496 | 270,606 | |||||||
Distribution | 438,489 | 421,803 | |||||||
General | 93,103 | 89,408 | |||||||
Electric Plant in Service | 1,545,112 | 1,460,884 | |||||||
Construction Work in Progress | 240,170 | 184,780 | |||||||
Total Gross Electric Plant | 1,785,282 | 1,645,664 | |||||||
Less Accumulated Depreciation and Amortization | 584,956 | 554,818 | |||||||
Net Electric Plant | $ | 1,200,326 | $ | 1,090,846 | |||||
Nonelectric Operations Plant | |||||||||
Equipment | $ | 135,007 | $ | 131,075 | |||||
Buildings and Leasehold Improvements | 36,558 | 36,420 | |||||||
Land | 3,594 | 3,430 | |||||||
Nonelectric Operations Plant | 175,159 | 170,925 | |||||||
Construction Work in Progress | 8,507 | 2,682 | |||||||
Total Gross Nonelectric Plant | 183,666 | 173,607 | |||||||
Less Accumulated Depreciation and Amortization | 115,462 | 108,763 | |||||||
Net Nonelectric Operations Plant | $ | 68,204 | $ | 64,844 | |||||
Net Plant | $ | 1,268,530 | $ | 1,155,690 | |||||
Schedule of estimated service lives for properties | Service Life Range | ||||||||
(years) | Low | High | |||||||
Electric Fixed Assets: | |||||||||
Production Plant | 34 | 62 | |||||||
Transmission Plant | 40 | 55 | |||||||
Distribution Plant | 15 | 55 | |||||||
General Plant | 5 | 70 | |||||||
Nonelectric Fixed Assets: | |||||||||
Equipment | 3 | 12 | |||||||
Buildings and Leasehold Improvements | 7 | 40 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
Schedule of income from continuing operations before income taxes and income tax expense | (in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||
Tax Computed at Federal Statutory Rate – Continuing Operations | $ | 25,704 | $ | 21,389 | $ | 18,622 | |||||||||||||||
Increases (Decreases) in Tax from: | |||||||||||||||||||||
Federal PTCs | (7,517 | ) | (6,612 | ) | (6,695 | ) | |||||||||||||||
State Income Taxes Net of Federal Income Tax Expense (Benefit) | 1,993 | 1,561 | (249 | ) | |||||||||||||||||
Section 199 Domestic Production Activities Deduction | (1,026 | ) | -- | -- | |||||||||||||||||
North Dakota Wind Tax Credit Amortization – Net of Federal Taxes | (849 | ) | (863 | ) | (891 | ) | |||||||||||||||
Dividend Received/Paid Deduction | (622 | ) | (632 | ) | (656 | ) | |||||||||||||||
Investment Tax Credit Amortization | (597 | ) | (597 | ) | (720 | ) | |||||||||||||||
Allowance for Funds Used During Construction - Equity | (505 | ) | (638 | ) | (409 | ) | |||||||||||||||
Corporate Owned Life Insurance | (354 | ) | (856 | ) | (585 | ) | |||||||||||||||
Tax Depreciation - Treasury Grant for Wind Farms | (152 | ) | (304 | ) | (304 | ) | |||||||||||||||
Differences Reversing in Excess of Federal Rates | (106 | ) | (100 | ) | (143 | ) | |||||||||||||||
Impact of Medicare Part D Change | -- | -- | (584 | ) | |||||||||||||||||
Permanent and Other Differences | 588 | 168 | (213 | ) | |||||||||||||||||
Total Income Tax Expense – Continuing Operations | $ | 16,557 | $ | 12,516 | $ | 7,173 | |||||||||||||||
Income Tax Expense (Benefit) – Discontinued Operations – U.S. | 3,952 | 1,042 | (19,707 | ) | |||||||||||||||||
Income Tax Expense (Benefit) – Continuing and Discontinued Operations | $ | 20,509 | $ | 13,558 | $ | (12,534 | ) | ||||||||||||||
Overall Effective Federal, State and Foreign Income Tax Rate | 26.2 | % | 21 | % | 70.4 | % | |||||||||||||||
Income Tax Expense From Continuing Operations Includes the Following: | |||||||||||||||||||||
Current Federal Income Taxes | $ | 124 | $ | 146 | $ | (3,198 | ) | ||||||||||||||
Current State Income Taxes | 5 | 37 | (361 | ) | |||||||||||||||||
Deferred Federal Income Taxes | 21,044 | 17,488 | 15,877 | ||||||||||||||||||
Deferred State Income Taxes | 4,347 | 2,917 | 3,161 | ||||||||||||||||||
Federal PTCs | (7,517 | ) | (6,612 | ) | (6,695 | ) | |||||||||||||||
North Dakota Wind Tax Credit Amortization – Net of Federal Taxes | (849 | ) | (863 | ) | (891 | ) | |||||||||||||||
Investment Tax Credit Amortization | (597 | ) | (597 | ) | (720 | ) | |||||||||||||||
Total | $ | 16,557 | $ | 12,516 | $ | 7,173 | |||||||||||||||
Income (Loss) Before Income Taxes – U.S. | $ | 78,232 | $ | 63,924 | $ | (13,426 | ) | ||||||||||||||
Income (Loss) Before Income Taxes – Foreign (Discontinued Operations) | -- | 499 | (4,381 | ) | |||||||||||||||||
Total Income (Loss) Before Income Taxes – Continuing and Discontinued Operations | $ | 78,232 | $ | 64,423 | $ | (17,807 | ) | ||||||||||||||
Schedule of deferred tax assets and liabilities | (in thousands) | 2014 | 2013 | ||||||||||||||||||
Deferred Tax Assets | |||||||||||||||||||||
Retirement Benefits Liabilities | $ | 42,706 | $ | 39,524 | |||||||||||||||||
Benefit Liabilities | 42,479 | 39,480 | |||||||||||||||||||
North Dakota Wind Tax Credits | 41,783 | 42,241 | |||||||||||||||||||
Federal PTCs | 30,189 | 33,620 | |||||||||||||||||||
Cost of Removal | 29,089 | 27,926 | |||||||||||||||||||
Differences Related to Property | 10,505 | 9,462 | |||||||||||||||||||
Net Operating Loss Carryforward | 7,842 | 15,151 | |||||||||||||||||||
Vacation Accrual | 2,154 | 1,843 | |||||||||||||||||||
Investment Tax Credits | 1,549 | 1,960 | |||||||||||||||||||
Other | 1,915 | 4,045 | |||||||||||||||||||
Total Deferred Tax Assets | $ | 210,211 | $ | 215,252 | |||||||||||||||||
Deferred Tax Liabilities | |||||||||||||||||||||
Differences Related to Property | $ | (313,959 | ) | $ | (302,852 | ) | |||||||||||||||
Retirement Benefits Regulatory Asset | (42,706 | ) | (39,524 | ) | |||||||||||||||||
Excess Tax over Book Pension | (12,928 | ) | (6,977 | ) | |||||||||||||||||
North Dakota Wind Tax Credits | (11,543 | ) | (11,543 | ) | |||||||||||||||||
Impact of State Net Operating Losses on Federal Taxes | (2,745 | ) | (3,088 | ) | |||||||||||||||||
Regulatory Asset | (2,087 | ) | (1,805 | ) | |||||||||||||||||
Other | (5,571 | ) | (6,360 | ) | |||||||||||||||||
Total Deferred Tax Liabilities | $ | (391,539 | ) | $ | (372,149 | ) | |||||||||||||||
Deferred Income Taxes | $ | (181,328 | ) | $ | (156,897 | ) | |||||||||||||||
Schedule of tax credits and tax net operating losses available | (in thousands) | Amount | 2015 | 2016 | 2017 | 2024-33 | |||||||||||||||
United States | |||||||||||||||||||||
Federal Tax Credits | $ | 31,913 | $ | -- | $ | -- | $ | -- | $ | 31,913 | |||||||||||
State Net Operating Losses | 5,829 | -- | -- | -- | 5,829 | ||||||||||||||||
State Tax Credits | 38,654 | 2,339 | 2,339 | 389 | 33,587 | ||||||||||||||||
Schedule of activity related to unrecognized tax benefits | (in thousands) | 2014 | 2013 | 2012 | |||||||||||||||||
Balance on January 1 | $ | 4,239 | $ | 4,436 | $ | 12,138 | |||||||||||||||
Increases Related to Tax Positions for Prior Years | 120 | 98 | -- | ||||||||||||||||||
Decreases Related to Tax Positions for Prior Years | (4,142 | ) | (295 | ) | (6,802 | ) | |||||||||||||||
Increases Related to Tax Positions for Current Year | 5 | -- | -- | ||||||||||||||||||
Uncertain Positions Resolved During Year | -- | -- | (900 | ) | |||||||||||||||||
Balance on December 31 | $ | 222 | $ | 4,239 | $ | 4,436 |
Asset_Retirement_Obligations_A1
Asset Retirement Obligations (AROs) (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Asset Retirement Obligation Disclosure [Abstract] | |||||||||
Schedule of reconciliations of carrying amounts of present value of legal AROs, capitalized asset retirement costs and related accumulated depreciation and summary of settlement activity | (in thousands) | 2014 | 2013 | ||||||
Asset Retirement Obligations | |||||||||
Beginning Balance | $ | 5,661 | $ | 5,207 | |||||
New Obligations Recognized | -- | -- | |||||||
Adjustments Due to Revisions in Cash Flow Estimates | 1,582 | -- | |||||||
Accrued Accretion | 478 | 454 | |||||||
Settlements | -- | -- | |||||||
Ending Balance | $ | 7,721 | $ | 5,661 | |||||
Asset Retirement Costs Capitalized | |||||||||
Beginning Balance | $ | 1,477 | $ | 1,477 | |||||
New Obligations Recognized | -- | -- | |||||||
Adjustments Due to Revisions in Cash Flow Estimates | 1,582 | -- | |||||||
Settlements | -- | -- | |||||||
Ending Balance | $ | 3,059 | $ | 1,477 | |||||
Accumulated Depreciation - Asset Retirement Costs Capitalized | |||||||||
Beginning Balance | $ | 462 | $ | 407 | |||||
New Obligations Recognized | -- | -- | |||||||
Adjustments Due to Revisions in Cash Flow Estimates | -- | -- | |||||||
Depreciation Expense | 65 | 55 | |||||||
Settlements | -- | -- | |||||||
Ending Balance | $ | 527 | $ | 462 | |||||
Settlements | None | None | |||||||
Original Capitalized Asset Retirement Cost - Retired | $ | -- | $ | -- | |||||
Accumulated Depreciation | -- | -- | |||||||
Asset Retirement Obligation | $ | -- | $ | -- | |||||
Settlement Cost | -- | -- | |||||||
Gain on Settlement – Deferred Under Regulatory Accounting | $ | -- | $ | -- |
Discontinued_Operations_Tables
Discontinued Operations (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Income and Gains and Losses from Disposition of Discontinued Operations and Schedule of Major Components of Assets and Liabilities of Discontinued Operations | For the Year Ended December 31, 2014 | ||||||||||||||||||||||||||||||||||||
(in thousands) | Foley | Aevenia | IMD | Shrco | Intercompany Transactions Adjustment | Total | |||||||||||||||||||||||||||||||
Operating Revenues | $ | 105,333 | $ | 44,527 | $ | -- | $ | -- | $ | -- | $ | 149,860 | |||||||||||||||||||||||||
Operating Expenses | 100,826 | 40,297 | 19 | (180 | ) | (960 | ) | 140,002 | |||||||||||||||||||||||||||||
Asset Impairment Charge | 5,605 | -- | -- | -- | -- | 5,605 | |||||||||||||||||||||||||||||||
Interest Expense | 510 | 184 | -- | -- | (694 | ) | -- | ||||||||||||||||||||||||||||||
Other (Deductions) Income | (38 | ) | 304 | -- | 277 | (4 | ) | 539 | |||||||||||||||||||||||||||||
Income Tax Expense (Benefit) | 1,388 | 1,729 | (8 | ) | 183 | 660 | 3,952 | ||||||||||||||||||||||||||||||
Net (Loss) Income | $ | (3,034 | ) | $ | 2,621 | $ | (11 | ) | $ | 274 | $ | 990 | $ | 840 | |||||||||||||||||||||||
For the Year Ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Foley | Aevenia | IMD | Wylie | Shrco | DMS | Intercompany Transactions Adjustment | Total | |||||||||||||||||||||||||||||
Operating Revenues | $ | 110,097 | $ | 39,813 | $ | -- | $ | -- | $ | 2,016 | $ | -- | $ | (11 | ) | $ | 151,915 | ||||||||||||||||||||
Operating Expenses | 109,036 | 38,257 | (988 | ) | 640 | 2,622 | (269 | ) | (11 | ) | 149,287 | ||||||||||||||||||||||||||
Interest Expense | 249 | 207 | -- | -- | -- | -- | (452 | ) | 4 | ||||||||||||||||||||||||||||
Other Income (Deductions) | 4 | (5 | ) | 412 | -- | 67 | -- | (5 | ) | 473 | |||||||||||||||||||||||||||
Income Tax Expense (Benefit) | 331 | 518 | 370 | (256 | ) | (213 | ) | 108 | 179 | 1,037 | |||||||||||||||||||||||||||
Net Income (Loss) from Operations | 485 | 826 | 1,030 | (384 | ) | (326 | ) | 161 | 268 | 2,060 | |||||||||||||||||||||||||||
Gain on Disposition Before Taxes | -- | -- | -- | -- | 16 | 200 | -- | 216 | |||||||||||||||||||||||||||||
Income Tax Expense on Disposition | -- | -- | -- | -- | 6 | -- | -- | 6 | |||||||||||||||||||||||||||||
Net Gain on Disposition | -- | -- | -- | -- | 10 | 200 | -- | 210 | |||||||||||||||||||||||||||||
Net Income (Loss) | $ | 485 | $ | 826 | $ | 1,030 | $ | (384 | ) | $ | (316 | ) | $ | 361 | $ | 268 | $ | 2,270 | |||||||||||||||||||
For the Year Ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Foley | Aevenia | IMD | Wylie | Shrco | DMS | IPH | Intercompany Transactions Adjustment | Total | ||||||||||||||||||||||||||||
Operating Revenues | $ | 93,598 | $ | 55,494 | $ | 186,151 | $ | -- | $ | 32,563 | $ | 16,362 | $ | -- | $ | (2,032 | ) | $ | 382,136 | ||||||||||||||||||
Operating Expenses | 109,493 | 51,873 | 184,462 | 179 | 36,163 | 14,741 | -- | (2,032 | ) | 394,879 | |||||||||||||||||||||||||||
Asset Impairment Charge | -- | -- | 45,573 | -- | 7,747 | -- | -- | -- | 53,320 | ||||||||||||||||||||||||||||
Interest Expense | 689 | 351 | 5,787 | -- | 1,553 | 279 | -- | (8,482 | ) | 177 | |||||||||||||||||||||||||||
Other Income | -- | 169 | 135 | -- | 15 | 122 | -- | -- | 441 | ||||||||||||||||||||||||||||
Income Tax (Benefit) Expense | (6,630 | ) | 1,174 | (15,792 | ) | 13 | (4,021 | ) | 1,734 | 106 | 3,393 | (20,023 | ) | ||||||||||||||||||||||||
Net (Loss) Income from Operations | (9,954 | ) | 2,265 | (33,744 | ) | (192 | ) | (8,864 | ) | (270 | ) | (106 | ) | 5,089 | (45,776 | ) | |||||||||||||||||||||
Loss on Disposition Before Taxes | -- | -- | -- | (62 | ) | -- | (5,154 | ) | -- | -- | (5,216 | ) | |||||||||||||||||||||||||
Income Tax Expense (Benefit) on Disposition | -- | -- | -- | 460 | -- | (145 | ) | -- | -- | 315 | |||||||||||||||||||||||||||
Net Loss on Disposition | -- | -- | -- | (522 | ) | -- | (5,009 | ) | -- | -- | (5,531 | ) | |||||||||||||||||||||||||
Net (Loss) Income | $ | (9,954 | ) | $ | 2,265 | $ | (33,744 | ) | $ | (714 | ) | $ | (8,864 | ) | $ | (5,279 | ) | $ | (106 | ) | $ | 5,089 | $ | (51,307 | ) | ||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Foley | Aevenia | IMD | Shrco | Total | ||||||||||||||||||||||||||||||||
Current Assets | $ | 29,897 | $ | 5,277 | $ | -- | $ | -- | $ | 35,174 | |||||||||||||||||||||||||||
Goodwill and Intangibles | 2,814 | -- | -- | -- | 2,814 | ||||||||||||||||||||||||||||||||
Net Plant | 4,445 | 6,224 | -- | -- | 10,669 | ||||||||||||||||||||||||||||||||
Assets of Discontinued Operations | $ | 37,156 | $ | 11,501 | $ | -- | $ | -- | $ | 48,657 | |||||||||||||||||||||||||||
Current Liabilities | $ | 17,114 | $ | 2,916 | $ | 1,840 | $ | 994 | $ | 22,864 | |||||||||||||||||||||||||||
Deferred Income Taxes | 2,065 | 2,630 | -- | -- | 4,695 | ||||||||||||||||||||||||||||||||
Liabilities of Discontinued Operations | $ | 19,179 | $ | 5,546 | $ | 1,840 | $ | 994 | $ | 27,559 | |||||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Foley | Aevenia | IMD | Shrco | Total | ||||||||||||||||||||||||||||||||
Current Assets | $ | 21,408 | $ | 8,123 | $ | -- | $ | 38 | $ | 29,569 | |||||||||||||||||||||||||||
Goodwill and Intangibles | 8,420 | 163 | -- | -- | 8,583 | ||||||||||||||||||||||||||||||||
Net Plant | 5,225 | 6,101 | -- | -- | 11,326 | ||||||||||||||||||||||||||||||||
Assets of Discontinued Operations | $ | 35,053 | $ | 14,387 | $ | -- | $ | 38 | $ | 49,478 | |||||||||||||||||||||||||||
Current Liabilities | $ | 29,766 | $ | 2,499 | $ | 2,196 | $ | 1,441 | $ | 35,902 | |||||||||||||||||||||||||||
Deferred Income Taxes | 1,892 | 1,489 | -- | -- | 3,381 | ||||||||||||||||||||||||||||||||
Liabilities of Discontinued Operations | $ | 31,658 | $ | 3,988 | $ | 2,196 | $ | 1,441 | $ | 39,283 | |||||||||||||||||||||||||||
Schedule of warranty reserves | (in thousands) | 2014 | 2013 | ||||||||||||||||||||||||||||||||||
Warranty Reserve Balance, Beginning of Year | $ | 3,087 | $ | 5,027 | |||||||||||||||||||||||||||||||||
Provision for Warranties Issued During the Year | -- | 188 | |||||||||||||||||||||||||||||||||||
Less Settlements Made During the Year | (372 | ) | (715 | ) | |||||||||||||||||||||||||||||||||
Decrease in Warranty Estimates for Prior Years | (188 | ) | (1,413 | ) | |||||||||||||||||||||||||||||||||
Warranty Reserve Balance, End of Year | $ | 2,527 | $ | 3,087 |
Subsequent_Events_Tables
Subsequent Events (Tables) | 12 Months Ended | |||||||||
Dec. 31, 2014 | ||||||||||
Subsequent Events [Abstract] | ||||||||||
Schedule of stock incentive awards under the 2014 Stock Incentive Plan | Award | Shares/Units Granted | Weighted Average | Vesting | ||||||
Grant-Date | ||||||||||
Fair Value | ||||||||||
per Award | ||||||||||
Restricted Stock Units Granted to Executive Officers | 20,900 | $ | 31.675 | 25% per year through February 6, 2019 | ||||||
Restricted Stock Units Granted to Executive Officer | 6,400 | $ | 31.675 | 100% on February 6, 2020 | ||||||
Stock Performance Awards Granted to Executive Officers | 77,500 | $ | 26.99 | 31-Dec-17 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies - OTP's Ownership Interests in Jointly Owned Facilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Big Stone Plant | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Electric Plant in Service | $143,746 | $142,780 |
Construction Work in Progress | 160,809 | 94,913 |
Accumulated Depreciation | -86,211 | -83,005 |
Net Plant | 218,344 | 154,688 |
Coyote Station | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Electric Plant in Service | 163,824 | 162,095 |
Construction Work in Progress | 1,725 | 303 |
Accumulated Depreciation | -99,364 | -96,907 |
Net Plant | 66,185 | 65,491 |
Jointly-owned transmission facilities | ||
Jointly Owned Utility Plant Interests [Line Items] | ||
Electric Plant in Service | 68,648 | 26,337 |
Construction Work in Progress | 59,163 | 71,205 |
Accumulated Depreciation | -1,758 | -837 |
Net Plant | $126,053 | $96,705 |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Asset impairment charge of IMD (Details 1) (USD $) | 12 Months Ended | 1 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 | Jun. 30, 2012 |
Significant Accounting Policies [Line Items] | ||
Total Asset Impairment Charges | $432 | |
IMD, Inc. | ||
Significant Accounting Policies [Line Items] | ||
Long-Lived Assets (net of accumulated depreciation) | 45,285 | |
Goodwill | 288 | |
Total Asset Impairment Charges | $45,573 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Asset impairment charge of Shrco (Details 2) (USD $) | 12 Months Ended | 1 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2012 |
Significant Accounting Policies [Line Items] | ||
Total Asset Impairment Charges | $432 | |
Shrco, Inc. | ||
Significant Accounting Policies [Line Items] | ||
Long-Lived Assets (net of accumulated depreciation) | 5,859 | |
Inventory | 782 | |
Accrued Selling Costs | 1,106 | |
Total Asset Impairment Charges | $7,747 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Summary of Costs Incurred and Billings and Estimated Earnings Recognized on Uncompleted Contracts (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ||
Costs Incurred on Uncompleted Contracts | $402,332 | $361,487 |
Less Billings to Date | -411,909 | -377,608 |
Plus Estimated Earnings Recognized | 15,154 | 6,477 |
Net Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts | $5,577 | ($9,644) |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Costs and Estimated Earnings in Excess of Billings that are Included in Consolidated Balance Sheets (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ||
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts | $8,133 | $4,063 |
Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts | -2,556 | -13,707 |
Net Billings in Excess of Costs and Estimated Earnings on Uncompleted Contracts | $5,577 | ($9,644) |
Summary_of_Significant_Account8
Summary of Significant Accounting Policies - Accounts Receivable Retained by Customers Pending Project Completion (Details 5) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ||
Accounts Receivable Retained by Customers | $6,759 | $7,125 |
Summary_of_Significant_Account9
Summary of Significant Accounting Policies - Breakdown of Investments (Details 6) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Investments [Line Items] | ||
Marketable Securities Classified as Available-for-Sale | $8,014 | $8,942 |
Total Investments | 8,582 | 9,362 |
Economic Development Loan Pools | ||
Schedule of Investments [Line Items] | ||
Cost Method | 174 | 219 |
Other | ||
Schedule of Investments [Line Items] | ||
Cost Method | 129 | 158 |
Affordable Housing and Other Partnerships | ||
Schedule of Investments [Line Items] | ||
Equity Method | $265 | $43 |
Recovered_Sheet1
Summary of Significant Accounting Policies - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details 7) (Fair Value, Measurements, Recurring, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Level 1 | ||
Assets: | ||
Total Assets | $713 | $976 |
Liabilities: | ||
Derivative Liabilities | ||
Total Liabilities | ||
Level 1 | Forward Energy Contracts | ||
Assets: | ||
Derivative Assets | ||
Total Assets | ||
Liabilities: | ||
Derivative Liabilities | ||
Level 1 | Money Market and Mutual Funds | ||
Assets: | ||
Other Current Assets - Nonqualified Retirement Savings Plan | 120 | 110 |
Other Assets - Nonqualified Retirement Savings Plan | 593 | 866 |
Level 2 | ||
Assets: | ||
Total Assets | 8,014 | 9,004 |
Liabilities: | ||
Total Liabilities | 342 | 103 |
Level 2 | Forward Energy Contracts | ||
Assets: | ||
Derivative Assets | ||
Total Assets | ||
Liabilities: | ||
Derivative Liabilities | 103 | |
Level 2 | Forward Gasoline Purchase Contracts | ||
Assets: | ||
Derivative Assets | 62 | |
Liabilities: | ||
Derivative Liabilities | 342 | |
Level 2 | Corporate Debt Securities | ||
Assets: | ||
Investments of Captive Insurance Company | 6,761 | 7,671 |
Level 2 | U.S. Government-Sponsored Enterprises' Debt Securities | ||
Assets: | ||
Investments of Captive Insurance Company | 1,253 | 1,271 |
Level 3 | ||
Assets: | ||
Total Assets | 257 | 338 |
Liabilities: | ||
Total Liabilities | 13,888 | 11,679 |
Level 3 | Forward Energy Contracts | ||
Assets: | ||
Derivative Assets | 257 | 338 |
Liabilities: | ||
Derivative Liabilities | $13,888 | $11,679 |
Recovered_Sheet2
Summary of Significant Accounting Policies - Changes in Level 3 forward energy contract derivative asset and liability fair valuations (Details 8) (Forward Energy Contracts, Level 3, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Forward Energy Contracts | Level 3 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Forward Energy Contracts - Fair Values Beginning of Period | ($11,341) | ($17,782) |
Less: Amounts Reversed on Settlement of Contracts Entered into in Prior Periods | 2,785 | 7,943 |
Changes in Fair Value of Contracts Entered into in Prior Periods | 166 | -640 |
Cumulative Fair Value Adjustments of Contracts Entered into in Prior Years at End of Period | -8,390 | -10,479 |
Net Decrease in Value of Open Contracts Entered into in Current Period | -5,241 | -862 |
Forward Energy Contracts - Net Derivative Liability Fair Values End of Period | ($13,631) | ($11,341) |
Recovered_Sheet3
Summary of Significant Accounting Policies - Inventories (Details 9) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounting Policies [Abstract] | ||
Finished Goods | $27,998 | $20,649 |
Work in Process | 10,628 | 9,942 |
Raw Material, Fuel and Supplies | 46,577 | 42,036 |
Total Inventories | $85,203 | $72,627 |
Recovered_Sheet4
Summary of Significant Accounting Policies - Summary of Changes to Goodwill by Business Segment (Details 10) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Line Items] | |||
Gross Balance | $31,488 | $31,488 | |
Accumulated Impairments | |||
Goodwill [Roll Forward] | |||
Balance (net of impairments) | 31,488 | 31,488 | |
Adjustments to Goodwill | |||
Balance (net of impairments) | 31,488 | 31,488 | |
Manufacturing | |||
Goodwill [Line Items] | |||
Gross Balance | 12,186 | 12,186 | |
Accumulated Impairments | |||
Goodwill [Roll Forward] | |||
Balance (net of impairments) | 12,186 | 12,186 | |
Adjustments to Goodwill | |||
Balance (net of impairments) | 12,186 | 12,186 | |
Plastics | |||
Goodwill [Line Items] | |||
Gross Balance | 19,302 | 19,302 | |
Accumulated Impairments | |||
Goodwill [Roll Forward] | |||
Balance (net of impairments) | 19,302 | 19,302 | |
Adjustments to Goodwill | |||
Balance (net of impairments) | $19,302 | $19,302 |
Recovered_Sheet5
Summary of Significant Accounting Policies - Components of Intangible Assets (Details 11) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Amortizable Intangible Assets: | ||
Amortized Intangible Assets, Gross Carrying Amount | 17,450 | 17,583 |
Amortized Intangible Assets, Accumulated Amortization | 6,199 | 5,355 |
Amortized Intangible Assets, Net Carrying Amount | 11,251 | 12,228 |
Customer Relationships | ||
Amortizable Intangible Assets: | ||
Amortized Intangible Assets, Gross Carrying Amount | 16,811 | 16,811 |
Amortized Intangible Assets, Accumulated Amortization | 5,784 | 4,935 |
Amortized Intangible Assets, Net Carrying Amount | 11,027 | 11,876 |
Customer Relationships | Minimum | ||
Amortizable Intangible Assets: | ||
Amortization Periods | 60 months | 72 months |
Customer Relationships | Maximum | ||
Amortizable Intangible Assets: | ||
Amortization Periods | 160 months | 172 months |
Other Intangible Assets Including Contracts | ||
Amortizable Intangible Assets: | ||
Amortized Intangible Assets, Gross Carrying Amount | 639 | 772 |
Amortized Intangible Assets, Accumulated Amortization | 415 | 420 |
Amortized Intangible Assets, Net Carrying Amount | 224 | 352 |
Amortization Periods | 21 months | 33 months |
Recovered_Sheet6
Summary of Significant Accounting Policies - Amortization Expense for Intangible Assets (Details 12) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounting Policies [Abstract] | |||
Amortization Expense - Intangible Assets | $977 | $977 | $981 |
Recovered_Sheet7
Summary of Significant Accounting Policies - Estimated Amortization Expense for Intangible Assets (Details 13) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Accounting Policies [Abstract] | |
2015 | $977 |
2016 | 945 |
2017 | 849 |
2018 | 849 |
2019 | $849 |
Recovered_Sheet8
Summary of Significant Accounting Policies - Supplemental Disclosure of Cash Flow Information of Noncash Investing Activities (Details 14) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Noncash Investing Activities: | ||||
Accounts Payable Outstanding Related to Capital Additions | $24,526 | [1] | $22,951 | [1] |
Accounts Receivable Outstanding Related to Joint Plant Owner's Share of Capital Additions | $4,594 | [2] | $3,264 | [2] |
[1] | Amounts are included in cash used for capital expenditures in subsequent periods when payables are settled. | |||
[2] | Amounts are deducted from cash used for capital expenditures in subsequent periods when cash is received. |
Recovered_Sheet9
Summary of Significant Accounting Policies - Supplemental Disclosure of Cash Flow Information Of Cash Paid During Year (Details 15) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Paid (Received) During the Year for: | |||
Interest (net of amount capitalized) | $26,364 | $26,789 | $30,741 |
Income Taxes | $145 | ($453) | ($353) |
Recovered_Sheet10
Summary of Significant Accounting Policies (Detail Textuals) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | |||
Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Jun. 30, 2012 | Sep. 06, 2012 | Dec. 31, 2012 | Mar. 31, 2012 | |
Significant Accounting Policies [Line Items] | |||||||
Asset Impairment Charge | $432,000 | ||||||
Big Stone Plant | |||||||
Significant Accounting Policies [Line Items] | |||||||
Ownership interests | 53.90% | ||||||
Coyote Station | |||||||
Significant Accounting Policies [Line Items] | |||||||
Ownership interests | 35.00% | ||||||
Minimum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Product warranty period (in years) | 1 year | ||||||
Maximum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Product warranty period (in years) | 15 years | ||||||
Electric Plant | |||||||
Significant Accounting Policies [Line Items] | |||||||
Interest capitalized on a plant | 656,000 | 689,000 | 1,002,000 | ||||
Provisions for utility depreciation | 2.98% | 2.89% | 2.96% | ||||
Electric Plant | Minimum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives of Property and equipment | 5 years | ||||||
Electric Plant | Maximum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives of Property and equipment | 70 years | ||||||
Nonelectric Plant | Minimum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives of Property and equipment | 3 years | ||||||
Nonelectric Plant | Maximum | |||||||
Significant Accounting Policies [Line Items] | |||||||
Estimated useful lives of Property and equipment | 40 years | ||||||
IMD, Inc. | |||||||
Significant Accounting Policies [Line Items] | |||||||
Asset Impairment Charge | 45,573,000 | ||||||
Fair value of IMD's long lived assets | 20,000,000 | ||||||
Noncash asset impairment charges (in dollars per share) | $0.76 | ||||||
Noncash asset impairment charge (Net of tax benefit) | 27,500,000 | ||||||
IMD, Inc. | Nonbinding letter of interest with Trinity Industries, Inc. (Trinity) | |||||||
Significant Accounting Policies [Line Items] | |||||||
Nonbinding selling price IMD fixed assets | 20,000,000 | ||||||
Working capital net of IMD | 66,000,000 | ||||||
IMD, Inc. | Definitive agreements with Trinity Industries, Inc. (Trinity) | |||||||
Significant Accounting Policies [Line Items] | |||||||
Selling price of IMD's fixed assets | 20,000,000 | ||||||
Otter Tail Energy Services Company | |||||||
Significant Accounting Policies [Line Items] | |||||||
Asset Impairment Charge | 400,000 | ||||||
Fair value of assets | 0 | ||||||
Shrco, Inc. | |||||||
Significant Accounting Policies [Line Items] | |||||||
Asset Impairment Charge | 7,747,000 | ||||||
Noncash asset impairment charges (in dollars per share) | $0.13 | ||||||
Noncash asset impairment charge (Net of tax benefit) | 4,600,000 | ||||||
Otter Tail Power Company | Forward Electricity Contracts | Level 3 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Electric inputs minimum deviation below active trading hub price per megawatt-hour | 2.5 | ||||||
Electric inputs maximum deviation below active trading hub price per megawatt-hour | 7.97 | ||||||
Electric inputs weighted average price per megawatt-hour | 34.95 | ||||||
Percentage of offset by regulatory liabilities and assets of fuel clause adjustment treatment of fuel costs | 100.00% | ||||||
Net impact of recorded fair valuation gains or losses related to derivative contract | 0 | ||||||
Net income impact of future fair valuation adjustments of contracts | 0 | ||||||
Otter Tail Power Company | Fargo Project | |||||||
Significant Accounting Policies [Line Items] | |||||||
Ownership interests | 14.10% | ||||||
Otter Tail Power Company | Fargo Project | Capacity Expansion 2020 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Expanded capacity of projects | 345 | ||||||
Otter Tail Power Company | Brookings Project | |||||||
Significant Accounting Policies [Line Items] | |||||||
Ownership interests | 4.80% | ||||||
Otter Tail Power Company | Brookings Project | Capacity Expansion 2020 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Expanded capacity of projects | 345 | ||||||
Otter Tail Power Company | Bemidji Project | |||||||
Significant Accounting Policies [Line Items] | |||||||
Ownership interests | 14.80% | ||||||
Otter Tail Power Company | Bemidji Project | Capacity Expansion 2020 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Expanded capacity of projects | 230 | ||||||
Otter Tail Power Company | Big Stone South - Brookings MVP | |||||||
Significant Accounting Policies [Line Items] | |||||||
Ownership interests | 50.00% | ||||||
Otter Tail Power Company | Big Stone South - Brookings MVP | Capacity Expansion 2020 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Expanded capacity of projects | 345 | ||||||
Otter Tail Power Company | Big Stone South - Ellendale MVP | |||||||
Significant Accounting Policies [Line Items] | |||||||
Ownership interests | 50.00% | ||||||
Otter Tail Power Company | Big Stone South - Ellendale MVP | Capacity Expansion 2020 | |||||||
Significant Accounting Policies [Line Items] | |||||||
Expanded capacity of projects | 345 |
Recovered_Sheet11
Summary of Significant Accounting Policies (Detail Textuals 1) (Coyote Creek Mining Company, L.L.C. (CCMC), Lignite Sales Agreement, Otter Tail Power Company, USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2014 |
Coyote Creek Mining Company, L.L.C. (CCMC) | Lignite Sales Agreement | Otter Tail Power Company | |
Significant Accounting Policies [Line Items] | |
Amortization method | straight-line basis |
Amortization period | 52 months |
Percentage of development period costs, development fees and capital charge incurred by CCMC | 35.00% |
Amount of development period costs, development fees and capital charges incurred by CCMC | $21.60 |
Recovered_Sheet12
Summary of Significant Accounting Policies (Detail Textuals 2) (USD $) | 12 Months Ended | 3 Months Ended | |||
Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Significant Accounting Policies [Line Items] | |||||
Asset Impairment Charge | $432,000 | ||||
Unrecognized tax benefits | 4,436,000 | 222,000 | 4,239,000 | 4,436,000 | 12,138,000 |
Foley Company | |||||
Significant Accounting Policies [Line Items] | |||||
Estimated costs on certain projects in excess of previous period estimates, Pretax charge | 14,900,000 | 600,000 | |||
Asset Impairment Charge | 5,600,000 | ||||
Goodwill impairment charges per share | $0.15 | ||||
Moorhead Electric, Inc. (MEI) | |||||
Significant Accounting Policies [Line Items] | |||||
Disposal of goodwill in connection with sale of MEI | $147,000 |
Business_Combinations_Disposit2
Business Combinations, Dispositions and Segment Information - Percent of Sales Revenue by Country (Details) (Sales) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
United States Of America | |||
Percentage of sales revenue | 95.90% | 97.20% | 97.30% |
Mexico | |||
Percentage of sales revenue | 3.00% | 1.70% | 1.30% |
Canada | |||
Percentage of sales revenue | 0.90% | 1.00% | 1.40% |
All Other Countries (none greater than 0.05%) | |||
Percentage of sales revenue | 0.20% | 0.10% | 0.00% |
Business_Combinations_Disposit3
Business Combinations, Dispositions and Segment Information - Information on Continuing Operations for Business Segments (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||
Operating Revenue | $799,262 | $743,414 | $710,165 |
Cost of Products Sold | 308,069 | 283,267 | 270,045 |
Other Nonelectric Expenses | 45,981 | 40,074 | 40,273 |
Depreciation and Amortization | 58,074 | 57,876 | 57,857 |
Operating Income (Loss) | 99,531 | 94,237 | 94,301 |
Interest Charges | 29,648 | 26,974 | 31,903 |
Income Tax Expense (Benefit) - Continuing Operations | 16,557 | 12,516 | 7,173 |
Earnings (Loss) Available for Common Shares | 57,723 | 50,352 | -6,009 |
Capital Expenditures | 163,582 | 159,833 | 114,186 |
Identifiable Assets | 1,791,279 | 1,596,019 | 1,602,337 |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | -114 | -80 | -82 |
Cost of Products Sold | -45 | -10 | -54 |
Other Nonelectric Expenses | -69 | -70 | -28 |
Corporate and Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Interest Charges | 2,040 | 5,257 | 6,778 |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Other Nonelectric Expenses | 13,418 | 12,753 | 13,284 |
Depreciation and Amortization | 116 | 207 | 480 |
Operating Income (Loss) | -13,534 | -12,960 | -13,764 |
Income Tax Expense (Benefit) - Continuing Operations | -5,890 | -12,058 | -15,036 |
Earnings (Loss) Available for Common Shares | -8,247 | -15,420 | -17,832 |
Capital Expenditures | 44 | 47 | 137 |
Identifiable Assets | 51,918 | 59,970 | 112,616 |
Discontinued Operations | |||
Segment Reporting Information [Line Items] | |||
Earnings (Loss) Available for Common Shares | 840 | 2,270 | -51,307 |
Identifiable Assets | 48,657 | 49,478 | 69,788 |
Electric | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 407,743 | 373,540 | 350,765 |
Depreciation and Amortization | 44,076 | 43,125 | 42,051 |
Operating Income (Loss) | 76,060 | 62,455 | 61,025 |
Interest Charges | 23,322 | 17,461 | 19,049 |
Income Tax Expense (Benefit) - Continuing Operations | 11,029 | 9,278 | 5,862 |
Earnings (Loss) Available for Common Shares | 43,684 | 38,236 | 38,341 |
Capital Expenditures | 148,719 | 149,467 | 101,919 |
Identifiable Assets | 1,472,647 | 1,290,416 | 1,226,145 |
Manufacturing | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 219,583 | 204,997 | 208,965 |
Cost of Products Sold | 169,033 | 154,235 | 157,437 |
Other Nonelectric Expenses | 23,340 | 18,820 | 18,233 |
Depreciation and Amortization | 10,518 | 11,194 | 12,208 |
Operating Income (Loss) | 16,692 | 20,748 | 21,087 |
Interest Charges | 3,243 | 3,255 | 3,557 |
Income Tax Expense (Benefit) - Continuing Operations | 4,117 | 6,047 | 6,954 |
Earnings (Loss) Available for Common Shares | 9,361 | 11,457 | 10,676 |
Capital Expenditures | 11,252 | 7,046 | 9,311 |
Identifiable Assets | 130,701 | 119,302 | 114,933 |
Plastics | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Operating Revenue | 172,050 | 164,957 | 150,517 |
Cost of Products Sold | 139,081 | 129,042 | 112,662 |
Other Nonelectric Expenses | 9,292 | 8,571 | 8,784 |
Depreciation and Amortization | 3,364 | 3,350 | 3,118 |
Operating Income (Loss) | 20,313 | 23,994 | 25,953 |
Interest Charges | 1,043 | 1,001 | 2,519 |
Income Tax Expense (Benefit) - Continuing Operations | 7,301 | 9,249 | 9,393 |
Earnings (Loss) Available for Common Shares | 12,085 | 13,809 | 14,113 |
Capital Expenditures | 3,567 | 3,273 | 2,819 |
Identifiable Assets | $87,356 | $76,853 | $78,855 |
Business_Combinations_Disposit4
Business Combinations, Dispositions and Segment Information (Detail Textuals) | 12 Months Ended |
Dec. 31, 2014 | |
Segment | |
Business Combinations, Dispositions and Segment Information [Abstract] | |
Number of segments | 3 |
Rate_and_Regulatory_Matters_De
Rate and Regulatory Matters (Detail Textuals) (Otter Tail Power Company) | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2011 | Jan. 31, 2012 | Jan. 01, 2010 | |
Investor | mi | kV | |||
Project | mi | ||||
Capacity Expansion 2020 | |||||
Regulatory Matters [Line Items] | |||||
Number of investor | 11 | ||||
Number of Major Transmission Line Projects | 4 | ||||
Capacity Expansion 2020 | Big Stone South - Brookings MVP | |||||
Regulatory Matters [Line Items] | |||||
Expanded capacity of projects | 345 | ||||
Capacity Expansion 2020 | Big Stone South - Ellendale MVP | |||||
Regulatory Matters [Line Items] | |||||
Expanded capacity of projects | 345 | ||||
Capacity Expansion 2020 | Bemidji Project | |||||
Regulatory Matters [Line Items] | |||||
Expanded capacity of projects | 230 | ||||
Capacity Expansion 2020 | Brookings Project | |||||
Regulatory Matters [Line Items] | |||||
Expanded capacity of projects | 345 | ||||
Extended distance of transmission line | 250 | ||||
Capacity Expansion 2020 | Twin Cities La Crosse | |||||
Regulatory Matters [Line Items] | |||||
Expanded capacity of projects | 345 | ||||
Capacity Expansion 2020 | Fargo Project | |||||
Regulatory Matters [Line Items] | |||||
Expanded capacity of projects | 345 | ||||
Federal Energy Regulatory Commission | |||||
Regulatory Matters [Line Items] | |||||
Percentage of prudently incurred costs of construction work in progress, authorized for recovery by formula transmission rate | 100.00% | 100.00% | |||
Federal Energy Regulatory Commission | Big Stone South - Brookings MVP | |||||
Regulatory Matters [Line Items] | |||||
Expanded capacity of projects | 345 | ||||
Extended distance of transmission line | 70 | ||||
Federal Energy Regulatory Commission | Big Stone South - Ellendale MVP | |||||
Regulatory Matters [Line Items] | |||||
Expanded capacity of projects | 345 | ||||
Federal Energy Regulatory Commission | Big Stone South - Ellendale MVP | Minimum | |||||
Regulatory Matters [Line Items] | |||||
Extended distance of transmission line | 160 | ||||
Federal Energy Regulatory Commission | Big Stone South - Ellendale MVP | Maximum | |||||
Regulatory Matters [Line Items] | |||||
Extended distance of transmission line | 170 |
Rate_and_Regulatory_Matters_De1
Rate and Regulatory Matters (Detail Textuals 1) (USD $) | 1 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2005 | Dec. 31, 2014 |
Project | ||
Otter Tail Power Company | Big Stone II Cost Recovery | ||
Regulatory Matters [Line Items] | ||
Number of other electric providers entered in agreement for development of project | 6 | |
Big Stone AQCS Project BART - compliant AQCS | ||
Regulatory Matters [Line Items] | ||
Current projected cost | $384 | |
Big Stone AQCS Project BART - compliant AQCS | Otter Tail Power Company | ||
Regulatory Matters [Line Items] | ||
Current projected cost | 207 | |
Percentage of projected cost | 53.90% | |
Construction expenditures | $153 |
Rate_and_Regulatory_Matters_De2
Rate and Regulatory Matters (Detail Textuals 2) (USD $) | 0 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 0 Months Ended | ||||||||||||||
Oct. 01, 2011 | Dec. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 30, 2012 | Feb. 20, 2013 | 24-May-12 | Jul. 30, 2014 | Jul. 31, 2014 | Jun. 30, 2014 | 31-May-13 | Apr. 25, 2011 | Mar. 31, 2013 | Apr. 02, 2010 | Jan. 11, 2012 | Oct. 10, 2013 | Sep. 26, 2014 | Apr. 01, 2014 | |
Project | Project | ||||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||||
Regulatory asset | 155,141,000 | $101,670,000 | |||||||||||||||||||
Otter Tail Power Company | Minnesota Public Utilities Commission | Big Stone Project | |||||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||||
Big Stone II Investment cost incurred, recovery period | 60 months | ||||||||||||||||||||
Otter Tail Power Company | Minnesota Public Utilities Commission | Renewable Resource Cost Recovery Rider | Fiscal Year 2016 | |||||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||||
Percentage of qualifying renewable energy to be supplied in proportion to aggregate energy supplies in Minnesota | 17.00% | ||||||||||||||||||||
Otter Tail Power Company | Minnesota Public Utilities Commission | Renewable Resource Cost Recovery Rider | Fiscal Year 2020 | |||||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||||
Percentage of qualifying renewable energy to be supplied in proportion to aggregate energy supplies in Minnesota | 20.00% | ||||||||||||||||||||
Percentage of total electric revenue to be supplied by solar energy as per 2013 legislature | 1.50% | ||||||||||||||||||||
Otter Tail Power Company | Minnesota Public Utilities Commission | Renewable Resource Cost Recovery Rider | Fiscal Year 2025 | |||||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||||
Percentage of qualifying renewable energy to be supplied in proportion to aggregate energy supplies in Minnesota | 25.00% | ||||||||||||||||||||
Otter Tail Power Company | Minnesota Public Utilities Commission | Renewable Energy Standards Conservation Renewable Resource Riders Converted At Base Rate | |||||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||||
Number of wind farms | 3 | ||||||||||||||||||||
Otter Tail Power Company | Minnesota Public Utilities Commission | Conservation Improvement Program | |||||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||||
Financial incentives approved | 3,500,000 | ||||||||||||||||||||
Percentage of conservation cost recovery adjustment | 3.80% | 3.00% | |||||||||||||||||||
Financial incentives recognized during period | 3,900,000 | ||||||||||||||||||||
Conservation improvement programs previous surcharge | 3.80% | ||||||||||||||||||||
Revised conservation improvement programs surcharge per kwh | 0.00142 | ||||||||||||||||||||
Decrease in percentage of customers bill | 1.90% | ||||||||||||||||||||
Estimated financial incentive | 2,500,000 | ||||||||||||||||||||
Decrease in estimation of kilowatt-hours for financial incentives | 3,000,000 | ||||||||||||||||||||
Regulatory asset | 8,200,000 | ||||||||||||||||||||
Conservation costs recoverable and incentives earned | 7,800,000 | 9,300,000 | 7,800,000 | ||||||||||||||||||
Otter Tail Power Company | Minnesota Public Utilities Commission | Conservation Improvement Program | Minimum | |||||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||||
Percentage of operating revenue from service to be invested in energy conservation in Minnesota | 1.50% | ||||||||||||||||||||
Otter Tail Power Company | Minnesota Public Utilities Commission | Conservation Improvement Program | Fiscal Year 2012 | |||||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||||
Financial incentives recognized during period | 100,000 | 2,600,000 | |||||||||||||||||||
Financial incentive filing request | 2,700,000 | ||||||||||||||||||||
Otter Tail Power Company | Minnesota Public Utilities Commission | Conservation Improvement Program | Fiscal Year 2013 | |||||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||||
Financial incentive filing request | 4,000,000 | ||||||||||||||||||||
Financial incentive request approved | 4,000,000 | ||||||||||||||||||||
Otter Tail Power Company | Minnesota Public Utilities Commission | Conservation Improvement Program | Fiscal Year 2011 | |||||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||||
Financial incentives recognized during period | 400,000 | ||||||||||||||||||||
Financial incentive filing request | 2,600,000 | ||||||||||||||||||||
Otter Tail Power Company | Minnesota Public Utilities Commission | Conservation Improvement Program | Fiscal Year 2013 To 2015 | |||||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||||
Lower Estimated Incentives | 0.09 | ||||||||||||||||||||
Otter Tail Power Company | Minnesota Public Utilities Commission | Conservation Improvement Program | Fiscal Year 2014 To 2016 | |||||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||||
Lower Estimated Incentives | 0.07 | ||||||||||||||||||||
Otter Tail Power Company | Minnesota Public Utilities Commission | Transmission Cost Recovery Rider | |||||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||||
Regulatory asset | 3,400,000 | ||||||||||||||||||||
Number of additional transmission related projects | 12 | ||||||||||||||||||||
Number of additional projects approved | 3 | ||||||||||||||||||||
Amount of recognized revenue for amounts eligible for recovery | 6,300,000 | 2,900,000 | 2,400,000 | ||||||||||||||||||
Otter Tail Power Company | Minnesota Public Utilities Commission | Environmental Cost Recovery Rider | |||||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||||
Regulatory asset | 200,000 | ||||||||||||||||||||
Amount of recognized revenue for amounts eligible for recovery | 6,900,000 | ||||||||||||||||||||
Annual revenue requirement | 9,800,000 | 6,100,000 | 10,200,000 | ||||||||||||||||||
Annual increase in revenue requirement | 4,100,000 | ||||||||||||||||||||
Otter Tail Power Company | Minnesota Public Utilities Commission | Big Stone II Project Cost Recovery | |||||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||||
Recoverable amount of generation costs | 3,200,000 | ||||||||||||||||||||
Present value of recoverable amount of generation costs | 2,800,000 | ||||||||||||||||||||
Project transmission related costs | 3,200,000 | ||||||||||||||||||||
Regulators jurisdictional share of Big Stone II transmission costs transferred | 400,000 | ||||||||||||||||||||
Recoverable amount of deferred costs | 3,500,000 | ||||||||||||||||||||
Discounted present value of recoverable deferred costs | 300,000 | 700,000 | |||||||||||||||||||
Otter Tail Power Company | Minnesota Public Utilities Commission | 2010 General Rate Case | |||||||||||||||||||||
Regulatory Matters [Line Items] | |||||||||||||||||||||
General rate revenue increase approved | $5,000,000 | ||||||||||||||||||||
Percentage of increase in base rate revenue approved by rate authority | 1.60% | ||||||||||||||||||||
Number of transmission lines approved for transfer of investments from rider recovery to base rate recovery | 2 | ||||||||||||||||||||
Big Stone II Investment cost incurred, recovery period | 5 years | 5 years | |||||||||||||||||||
Public utilities allowed rate of return prior to approval of increase in base rate | 8.33% | ||||||||||||||||||||
Public utilities allowed rate of return subsequent to approval of increase in base rate | 8.61% | ||||||||||||||||||||
Public utilities allowed rate of return on equity prior to approval of increase in base rate | 10.43% | ||||||||||||||||||||
Public utilities allowed rate of return on equity subsequent to approval of increase in base rate | 10.74% |
Rate_and_Regulatory_Matters_De3
Rate and Regulatory Matters (Detail Textuals 3) (USD $) | 1 Months Ended | 0 Months Ended | 12 Months Ended | 1 Months Ended | ||||||
Jun. 25, 2010 | Mar. 12, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2012 | Mar. 31, 2014 | Jul. 30, 2013 | Nov. 25, 2009 | |
Project | ||||||||||
Regulatory Matters [Line Items] | ||||||||||
Regulatory Liabilities | $78,171,000 | $75,121,000 | ||||||||
Regulatory asset | 155,141,000 | 101,670,000 | ||||||||
Otter Tail Power Company | North Dakota Public Service Commission | Big Stone II Cost Recovery | ||||||||||
Regulatory Matters [Line Items] | ||||||||||
Regulatory Liabilities | 100,000 | |||||||||
Project transmission related costs | 2,600,000 | |||||||||
Big Stone II generation costs | 10,100,000 | |||||||||
Regulators jurisdictional share of transmission costs | 1,100,000 | |||||||||
Regulators jurisdictional share of Big Stone II transmission costs transferred | 300,000 | |||||||||
Regulators jurisdictional share | 4,100,000 | |||||||||
Public utilities, allowance for funds used during construction, rate | 7.65% | |||||||||
Big Stone II Investment cost incurred, recovery period | 36 months | |||||||||
Recoverable amount of generation costs | 4,300,000 | |||||||||
Present value of recoverable amount of generation costs | 3,900,000 | |||||||||
Carrying charge of Big Stone II generation cost including in total recovery amount | 300,000 | |||||||||
Transmission cost plus accrued AFUDC | 1,000,000 | |||||||||
Otter Tail Power Company | North Dakota Public Service Commission | Renewable Resource Cost Recovery Rider | ||||||||||
Regulatory Matters [Line Items] | ||||||||||
Expected cost recovery from customers | 9,900,000 | |||||||||
Percentage of reduction in the NDRRA | 13.50% | |||||||||
Regulatory Liabilities | 1,000,000 | |||||||||
Amount of recognized revenue for amounts eligible for recovery | 7,500,000 | 8,600,000 | 9,300,000 | |||||||
Otter Tail Power Company | North Dakota Public Service Commission | Transmission Cost Recovery Rider | ||||||||||
Regulatory Matters [Line Items] | ||||||||||
Amount of recognized revenue for amounts eligible for recovery | 5,800,000 | 3,200,000 | 1,400,000 | |||||||
Number of additional transmission related projects | 10 | |||||||||
Regulatory asset | 900,000 | |||||||||
Abandoned plant costs | 100,000 | |||||||||
Otter Tail Power Company | North Dakota Public Service Commission | Environmental Cost Recovery Rider | ||||||||||
Regulatory Matters [Line Items] | ||||||||||
Amount of recognized revenue for amounts eligible for recovery | 5,900,000 | 2,300,000 | ||||||||
Regulatory asset | 700,000 | |||||||||
Otter Tail Power Company | North Dakota Public Service Commission | Environmental Cost Recovery Rider | Minimum | ||||||||||
Regulatory Matters [Line Items] | ||||||||||
Percentage of ECR rider rate | 4.32% | |||||||||
Otter Tail Power Company | North Dakota Public Service Commission | Environmental Cost Recovery Rider | Maximum | ||||||||||
Regulatory Matters [Line Items] | ||||||||||
Percentage of ECR rider rate | 7.53% | |||||||||
Otter Tail Power Company | North Dakota Public Service Commission | 2010 General Rate Case | ||||||||||
Regulatory Matters [Line Items] | ||||||||||
General rate revenue increase approved | $3,600,000 | |||||||||
Percentage of increase in base rate revenue approved by MPUC | 3.00% |
Rate_and_Regulatory_Matters_De4
Rate and Regulatory Matters (Detail Textuals 4) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | 1 Months Ended | 0 Months Ended | ||||||
31-May-13 | Aug. 20, 2010 | Mar. 31, 2011 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 21, 2011 | Nov. 06, 2014 | Nov. 12, 2013 | Jan. 31, 2012 | Jan. 01, 2010 | |
Regulatory Matters [Line Items] | |||||||||||
Regulatory asset | $155,141,000 | $101,670,000 | |||||||||
Regulatory Liabilities | 78,171,000 | 75,121,000 | |||||||||
Otter Tail Power Company | South Dakota Public Utilities Commission | Big Stone II Cost Recovery | |||||||||||
Regulatory Matters [Line Items] | |||||||||||
Big Stone II Investment cost incurred, recovery period | 10 years | ||||||||||
Recovery of Big Stone II generation development costs approved | 1,000,000 | ||||||||||
Recovery period of Big Stone II development costs | 5 years | ||||||||||
Jurisdictional portion of unrecovered transmission costs and AFUDC transferred | 200,000 | ||||||||||
Otter Tail Power Company | South Dakota Public Utilities Commission | Transmission Cost Recovery Rider | |||||||||||
Regulatory Matters [Line Items] | |||||||||||
Regulatory Liabilities | 100,000 | ||||||||||
Amount of recognized revenue for amounts eligible for recovery | 1,200,000 | 800,000 | 400,000 | ||||||||
Otter Tail Power Company | South Dakota Public Utilities Commission | Environmental Cost Recovery Rider | |||||||||||
Regulatory Matters [Line Items] | |||||||||||
Regulatory asset | 100,000 | ||||||||||
Amount of recognized revenue for amounts eligible for recovery | 200,000 | ||||||||||
Otter Tail Power Company | South Dakota Public Utilities Commission | 2010 General Rate Case | |||||||||||
Regulatory Matters [Line Items] | |||||||||||
General rate revenue increase approved | 643,000 | ||||||||||
Percentage of increase in base rate revenue approved by MPUC | 2.32% | ||||||||||
Otter Tail Power Company | South Dakota Public Utilities Commission | 2010 General Rate Case | Big Stone II Cost Recovery | |||||||||||
Regulatory Matters [Line Items] | |||||||||||
Public utilities, allowance for funds used during construction, rate | 8.50% | ||||||||||
Otter Tail Power Company | Federal Energy Regulatory Commission | |||||||||||
Regulatory Matters [Line Items] | |||||||||||
Percentage of prudently incurred costs of construction work in progress, authorized for recovery by formula transmission rate | 100.00% | 100.00% | |||||||||
Proposed reduced return on equity used in transmission rates | 9.15% | ||||||||||
Current return on equity used in transmission rates | 12.38% | ||||||||||
Additional Incentive Basis Point | 50-basis points |
Regulatory_Assets_and_Liabilit2
Regulatory Assets and Liabilities - Amount of Regulatory Assets and Liabilities Recorded on Consolidated Balance Sheet (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | $25,273 | $17,940 | ||
Regulatory Liabilities - Current | 1,158 | 1,195 | ||
Net Regulatory Assets - Current | 24,115 | 16,745 | ||
Regulatory Assets - Long-Term | 129,868 | 83,730 | ||
Regulatory Liabilities - Long-Term | 77,013 | 73,926 | ||
Net Regulatory Assets - Long-Term | 52,855 | 9,804 | ||
Regulatory Assets - Total | 155,141 | 101,670 | ||
Regulatory Liabilities - Total | 78,171 | 75,121 | ||
Net Regulatory Asset Position | 76,970 | 26,549 | ||
Prior Service Costs and Actuarial Losses on Pensions and Other Postretirement Benefits | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | 7,464 | [1] | 4,095 | [1] |
Regulatory Assets - Long-Term | 101,526 | [1] | 55,012 | [1] |
Regulatory Assets - Total | 108,990 | [1] | 59,107 | [1] |
Regulatory Assets - Long term - Remaining Recovery/Refund Period | see note | [1] | see note | [1] |
Deferred Marked-to-Market Losses | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | 4,492 | [1] | 3,008 | [1] |
Regulatory Assets - Long-Term | 9,396 | [1] | 8,674 | [1] |
Regulatory Assets - Total | 13,888 | [1] | 11,682 | [1] |
Regulatory Assets - Remaining Recovery/Refund Period | 72 months | [1] | 60 months | [1] |
Conservation Improvement Program Costs and Incentives | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | 5,843 | [2] | 4,945 | [2] |
Regulatory Assets - Long-Term | 2,500 | [2] | 3,959 | [2] |
Regulatory Assets - Total | 8,343 | [2] | 8,904 | [2] |
Regulatory Assets - Remaining Recovery/Refund Period | 18 months | [2] | 18 months | [2] |
Accumulated ARO Accretion/Depreciation Adjustment | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | [1] | [1] | ||
Regulatory Assets - Long-Term | 5,190 | [1] | 4,646 | [1] |
Regulatory Assets - Total | 5,190 | [1] | 4,646 | [1] |
Regulatory Assets - Long term - Remaining Recovery/Refund Period | asset lives | [1] | asset lives | [1] |
Big Stone II Unrecovered Project Costs - Minnesota | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | 592 | [1] | 558 | [1] |
Regulatory Assets - Long-Term | 3,207 | [1] | 3,967 | [1] |
Regulatory Assets - Total | 3,799 | [1] | 4,525 | [1] |
Regulatory Assets - Remaining Recovery/Refund Period | 96 months | [1] | 81 months | [1] |
Minnesota Transmission Rider Accrued Revenues | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | 943 | [2] | ||
Regulatory Assets - Long-Term | 2,455 | [2] | ||
Regulatory Assets - Total | 3,398 | [2] | ||
Regulatory Assets - Remaining Recovery/Refund Period | 24 months | [2] | ||
MISO Schedule 26/26A Transmission Cost Recovery Rider True-up | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | 2,585 | [1] | 1,351 | [1] |
Regulatory Assets - Long-Term | 807 | [1] | 1,753 | [1] |
Regulatory Assets - Total | 3,392 | [1] | 3,104 | [1] |
Regulatory Assets - Remaining Recovery/Refund Period | 24 months | [1] | 24 months | [1] |
Debt Reacquisition Premiums | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | 351 | [1] | 351 | [1] |
Regulatory Assets - Long-Term | 1,890 | [1] | 2,241 | [1] |
Regulatory Assets - Total | 2,241 | [1] | 2,592 | [1] |
Regulatory Assets - Remaining Recovery/Refund Period | 213 months | [1] | 225 months | [1] |
North Dakota Environmental Cost Recovery Rider Accrued Revenues | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | 706 | [2] | 2,331 | [2] |
Regulatory Assets - Long-Term | [2] | [2] | ||
Regulatory Assets - Total | 706 | [2] | 2,331 | [2] |
Regulatory Assets - Remaining Recovery/Refund Period | 12 months | [2] | 12 months | [2] |
Minnesota Environmental Cost Recovery Rider Accrued Revenues | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | 186 | [2] | ||
Regulatory Assets - Long-Term | [2] | |||
Regulatory Assets - Total | 186 | [2] | ||
Regulatory Assets - Remaining Recovery/Refund Period | 12 months | [2] | ||
Deferred Income Taxes | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | [1] | [1] | ||
Regulatory Liabilities - Current | [1] | |||
Regulatory Assets - Long-Term | 2,086 | [1] | 1,805 | [1] |
Regulatory Liabilities - Long-Term | 1,550 | [1] | 1,960 | |
Regulatory Assets - Total | 2,086 | [1] | 1,805 | [1] |
Regulatory Liabilities - Total | 1,550 | [1] | 1,960 | |
Regulatory Assets - Long term - Remaining Recovery/Refund Period | asset lives | [1] | asset lives | [1] |
Regulatory Liabilities - Long-Term - Remaining Recovery/Refund Period | asset lives | [1] | asset lives | |
Big Stone II Unrecovered Project Costs - South Dakota | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | 100 | [2] | 101 | [2] |
Regulatory Assets - Long-Term | 743 | [2] | 843 | [2] |
Regulatory Assets - Total | 843 | [2] | 944 | [2] |
Regulatory Assets - Remaining Recovery/Refund Period | 101 months | [2] | 113 months | [2] |
North Dakota Renewable Resource Rider Accrued Revenues | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | [2] | |||
Regulatory Assets - Long-Term | 762 | [2] | ||
Regulatory Assets - Total | 762 | [2] | ||
Regulatory Assets - Remaining Recovery/Refund Period | 15 months | [2] | ||
Recoverable Fuel and Purchased Power Costs | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | 1,114 | [1] | 760 | [1] |
Regulatory Assets - Long-Term | [1] | [1] | ||
Regulatory Assets - Total | 1,114 | [1] | 760 | [1] |
Regulatory Assets - Remaining Recovery/Refund Period | 12 months | [1] | 12 months | [1] |
Big Stone II Unrecovered Project Costs - North Dakota | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | 375 | [1] | ||
Regulatory Liabilities - Current | 147 | |||
Regulatory Assets - Long-Term | [1] | |||
Regulatory Liabilities - Long-Term | ||||
Regulatory Assets - Total | 375 | [1] | ||
Regulatory Liabilities - Total | 147 | |||
Regulatory Assets - Remaining Recovery/Refund Period | 3 months | [1] | ||
Regulatory Liabilities - Remaining Recovery/Refund Period | 12 months | |||
Minnesota Renewable Resource Rider Accrued Revenues | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | [2] | [2] | ||
Regulatory Assets - Long-Term | 68 | [2] | 68 | [2] |
Regulatory Assets - Total | 68 | [2] | 68 | [2] |
Regulatory Assets - Long term - Remaining Recovery/Refund Period | see note | [2] | see note | [2] |
South Dakota Environmental Cost Recovery Rider Accrued Revenues | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | 38 | [2] | ||
Regulatory Assets - Long-Term | [2] | |||
Regulatory Assets - Total | 38 | [2] | ||
Regulatory Assets - Remaining Recovery/Refund Period | 12 months | [2] | ||
South Dakota Transmission Rider Accrued Revenues | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | 32 | [2] | ||
Regulatory Assets - Long-Term | [2] | |||
Regulatory Assets - Total | 32 | [2] | ||
Regulatory Assets - Remaining Recovery/Refund Period | 12 months | [2] | ||
Deferred Holding Company Formation Costs | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | 27 | [1] | ||
Regulatory Assets - Long-Term | [1] | |||
Regulatory Assets - Total | 27 | [1] | ||
Regulatory Assets - Remaining Recovery/Refund Period | 6 months | [1] | ||
Accumulated Reserve for Estimated Removal Costs - Net of Salvage | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Liabilities - Current | ||||
Regulatory Liabilities - Long-Term | 74,237 | 71,454 | ||
Regulatory Liabilities - Total | 74,237 | 71,454 | ||
Regulatory Liabilities - Long-Term - Remaining Recovery/Refund Period | asset lives | asset lives | ||
Minnesota Transmission Rider Accrued Refund | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Liabilities - Current | 670 | |||
Regulatory Liabilities - Long-Term | ||||
Regulatory Liabilities - Total | 670 | |||
Regulatory Liabilities - Remaining Recovery/Refund Period | 12 months | |||
Revenue for Rate Case Expenses Subject to Refund - Minnesota | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Liabilities - Current | ||||
Regulatory Liabilities - Long-Term | 784 | 289 | ||
Regulatory Liabilities - Total | 784 | 289 | ||
Regulatory Liabilities - Long-Term - Remaining Recovery/Refund Period | see note | see note | ||
North Dakota Renewable Resource Rider Accrued Refund | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Liabilities - Current | 933 | 261 | ||
Regulatory Liabilities - Long-Term | 85 | |||
Regulatory Liabilities - Total | 1,018 | 261 | ||
Regulatory Liabilities - Remaining Recovery/Refund Period | 15 months | 12 months | ||
North Dakota Transmission Rider Accrued Refund | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Liabilities - Current | 215 | |||
Regulatory Liabilities - Long-Term | ||||
Regulatory Liabilities - Total | 215 | |||
Regulatory Liabilities - Remaining Recovery/Refund Period | 12 months | |||
Deferred Marked-to-Market Gains | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Liabilities - Current | 6 | |||
Regulatory Liabilities - Long-Term | 257 | 117 | ||
Regulatory Liabilities - Total | 257 | 123 | ||
Regulatory Liabilities - Remaining Recovery/Refund Period | 67 months | 56 months | ||
Deferred Gain on Sale of Utility Property - Minnesota Portion | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Liabilities - Current | 6 | 5 | ||
Regulatory Liabilities - Long-Term | 100 | 106 | ||
Regulatory Liabilities - Total | 106 | 111 | ||
Regulatory Liabilities - Remaining Recovery/Refund Period | 228 months | 240 months | ||
South Dakota - Nonasset-Based Margin Sharing Excess | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Liabilities - Current | 24 | 38 | ||
Regulatory Liabilities - Long-Term | ||||
Regulatory Liabilities - Total | 24 | 38 | ||
Regulatory Liabilities - Remaining Recovery/Refund Period | 12 months | 12 months | ||
General Rate Case Recoverable Expenses - South Dakota | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | 6 | [1] | ||
Regulatory Assets - Long-Term | [1] | |||
Regulatory Assets - Total | 6 | [1] | ||
Regulatory Assets - Remaining Recovery/Refund Period | 1 month | [1] | ||
North Dakota Transmission Rider Accrued Revenues | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Assets - Current | 859 | [2] | ||
Regulatory Assets - Long-Term | [2] | |||
Regulatory Assets - Total | 859 | [2] | ||
Regulatory Assets - Remaining Recovery/Refund Period | 12 months | [2] | ||
South Dakota Transmission Rider Accrued Refund | ||||
Schedule of Regulatory Assets and Liabilities [Line Items] | ||||
Regulatory Liabilities - Current | 48 | |||
Regulatory Liabilities - Long-Term | ||||
Regulatory Liabilities - Total | $48 | |||
Regulatory Liabilities - Remaining Recovery/Refund Period | 12 months | |||
[1] | Costs subject to recovery without a rate of return. | |||
[2] | Amount eligible for recovery under an alternative revenue program which includes an incentive or rate of return. |
Regulatory_Assets_and_Liabilit3
Regulatory Assets and Liabilities (Detail Textuals) | 12 Months Ended |
Dec. 31, 2014 | |
Debt Reacquisition Premiums | |
Schedule of Regulatory Assets and Liabilities [Line Items] | |
Regulatory assets long term, remaining recovery/refund period | 213 months |
Otter Tail Power Company | South Dakota - Nonasset-Based Margin Sharing Excess | |
Schedule of Regulatory Assets and Liabilities [Line Items] | |
Share of actual profit margins on nonasset-based wholesale sales of electricity | 25.00% |
Forward_Contracts_Classified_a2
Forward Contracts Classified as Derivatives - Electric Operating Revenue (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Wholesale Sales - Company-Owned Generation | $11,160 | $14,846 | $12,951 |
Revenue from Settled Contracts at Market Prices | 131,952 | 133,238 | 160,987 |
Market Cost of Settled Contracts | -130,908 | -132,055 | -159,500 |
Net Margins on Settled Contracts at Market | 1,044 | 1,183 | 1,487 |
Marked-to-Market Gains on Settled Contracts | 263 | 3,039 | 7,864 |
Marked-to-Market Losses on Settled Contracts | -276 | -2,722 | -7,974 |
Net Marked-to-Market Gains (Losses) on Settled Contracts | -13 | 317 | -110 |
Unrealized Marked-to-Market Gains on Open Contracts | 215 | 284 | |
Unrealized Marked-to-Market Losses on Open Contracts | -100 | -235 | |
Net Unrealized Marked-to-Market Gains on Open Contracts | 115 | 49 | |
Wholesale Electric Revenue | $12,191 | $16,461 | $14,377 |
Forward_Contracts_Classified_a3
Forward Contracts Classified as Derivatives - Effect of Marking to Market Forward Contracts for Purchase and Sale of Electricity and Location and Fair Value Amounts of Related Derivatives (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Derivatives, Fair Value [Line Items] | |||
Regulatory Asset - Current Deferred Marked-to-Market Loss | $25,273 | $17,940 | |
Regulatory Asset - Long-Term Deferred Marked-to-Market Loss | 129,868 | 83,730 | |
Current Liability - Marked-to-Market Loss | -14,230 | -11,782 | |
Regulatory Liability - Current Deferred Marked-to-Market Gain | -1,158 | -1,195 | |
Regulatory Liability - Long-Term Deferred Marked-to-Market Gain | -77,013 | -73,926 | |
Forward Electricity Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Other Current Asset - Marked-to-Market Gain | 257 | 338 | |
Total Assets | 14,145 | 12,020 | |
Current Liability - Marked-to-Market Loss | -13,888 | -11,782 | |
Total Liabilities | -14,145 | -11,905 | |
Net Fair Value of Marked-to-Market Energy Contracts | 115 | 49 | |
Forward Electricity Contracts | Deferred Marked-to-Market Loss | |||
Derivatives, Fair Value [Line Items] | |||
Regulatory Asset - Current Deferred Marked-to-Market Loss | 4,492 | 3,008 | |
Regulatory Asset - Long-Term Deferred Marked-to-Market Loss | 9,396 | 8,674 | |
Forward Electricity Contracts | Deferred Marked-to-Market Gain | |||
Derivatives, Fair Value [Line Items] | |||
Regulatory Liability - Current Deferred Marked-to-Market Gain | -6 | ||
Regulatory Liability - Long-Term Deferred Marked-to-Market Gain | ($257) | ($117) |
Forward_Contracts_Classified_a4
Forward Contracts Classified as Derivatives - Change in Consolidated Balance Sheet Location and Fair Values of Forward Contracts for Purchase and Sale of Electricity (Details 2) (Forward Electricity Contracts, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Forward Electricity Contracts | ||
Derivatives Fair Value [Roll Forward] | ||
Cumulative Fair Value Adjustments Included in Earnings - Beginning of Period | $115 | $49 |
Less: Amounts Realized on Settlement of Contracts Entered into in Prior Periods | -72 | -49 |
Changes in Fair Value of Contracts Entered into in Prior Periods | -43 | |
Cumulative Fair Value Adjustments in Earnings of Contracts Entered into in Prior Years at End of Period | ||
Changes in Fair Value of Contracts Entered into in Current Period | 115 | |
Cumulative Fair Value Adjustments Included in Earnings - End of Period | $115 |
Forward_Contracts_Classified_a5
Forward Contracts Classified as Derivatives - Amount of derivative asset and derivative liability balances subject to legally enforceable netting arrangements (Details 3) (Legally enforceable netting arrangements, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Legally enforceable netting arrangements | ||
Fair Value, Concentration of Risk, Financial Statement Captions [Line Items] | ||
Derivative Assets Subject to Legally Enforceable Netting Arrangements | $257 | $400 |
Derivative Liabilities Subject to Legally Enforceable Netting Arrangements | -14,230 | -11,782 |
Net Balance Subject to Legally Enforceable Netting Arrangements | ($13,973) | ($11,382) |
Forward_Contracts_Classified_a6
Forward Contracts Classified as Derivatives - Breakdown of OTP's Credit Risk Standing on Forward Energy Contracts in Marked-to-Market Loss Positions (Details 4) (Otter Tail Power Company, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Otter Tail Power Company | ||||
Current Liability - Marked-to-Market Loss (in thousands) | ||||
Loss Contracts Covered by Deposited Funds or Letters of Credit | $45 | |||
Contracts Requiring Cash Deposits if OTP's Credit Falls Below Investment Grade | 13,888 | [1] | 11,679 | [1] |
Loss Contracts with No Ratings Triggers or Deposit Requirements | 297 | 103 | ||
Total Current Liability - Marked-to-Market Loss | $14,230 | $11,782 | ||
[1] | Certain OTP derivative energy contracts contain provisions that require an investment grade credit rating from each of the major credit rating agencies on OTP's debt. If OTP's debt ratings were to fall below investment grade, the counterparties to these forward energy contracts could request the immediate deposit of cash to cover contracts in net liability positions. Contracts Requiring Cash Deposits if OTP's Credit Falls Below Investment Grade $13,888 $11,679 Offsetting Gains with Counterparties under Master Netting Agreements (257) (117) Reporting Date Deposit Requirement if Credit Risk Feature Triggered $13,631 $11,562 |
Forward_Contracts_Classified_a7
Forward Contracts Classified as Derivatives - Breakdown of OTP's Credit Risk Standing on Forward Energy Contracts in Marked-to-Market Loss Positions (Parentheticals) (Details 4) (Otter Tail Power Company, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Otter Tail Power Company | ||||
Credit Derivatives [Line Items] | ||||
Contracts Requiring Cash Deposits if OTP's Credit Falls Below Investment Grade | $13,888 | [1] | $11,679 | [1] |
Offsetting Gains with Counterparties under Master Netting Agreements | -257 | -117 | ||
Reporting Date Deposit Requirement if Credit Risk Feature Triggered | $13,631 | $11,562 | ||
[1] | Certain OTP derivative energy contracts contain provisions that require an investment grade credit rating from each of the major credit rating agencies on OTP's debt. If OTP's debt ratings were to fall below investment grade, the counterparties to these forward energy contracts could request the immediate deposit of cash to cover contracts in net liability positions. Contracts Requiring Cash Deposits if OTP's Credit Falls Below Investment Grade $13,888 $11,679 Offsetting Gains with Counterparties under Master Netting Agreements (257) (117) Reporting Date Deposit Requirement if Credit Risk Feature Triggered $13,631 $11,562 |
Common_Shares_and_Earnings_Per2
Common Shares and Earnings Per Share - Reconciliation of Common Shares Outstanding (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders Equity and Earnings Per Share [Abstract] | |
Balance (in shares) | 36,271,696 |
Issuances: | |
At-the-Market Offering | 519,636 |
Automatic Dividend Reinvestment and Share Purchase Plan: | |
Dividends Reinvested | 180,818 |
Cash Invested | 81,533 |
Employee Stock Purchase Plan: | |
Cash Invested | 39,222 |
Dividends Reinvested | 25,694 |
Restricted Stock Issued to Employees | 26,700 |
Employee Stock Ownership Plan | 22,650 |
Executive Stock Performance Awards (2011-2013 shares earned) | 22,630 |
Stock Options Exercised | 20,800 |
Restricted Stock Issued to Directors | 16,800 |
Vesting of Restricted Stock Units | 14,305 |
Directors Deferred Compensation | 498 |
Retirements: | |
Shares Withheld for Individual Income Tax Requirements | -20,554 |
Forfeiture of Unvested Restricted Stock | -4,375 |
Balance (in shares) | 37,218,053 |
Common_Shares_and_Earnings_Per3
Common Shares and Earnings Per Share - Outstanding Stock Options with Exercise Prices Greater than Average Market Price Excluded from Calculation of Diluted Earnings per Share (Details 1) (Stock options, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Options Outstanding | 92,497 | ||
Range of Exercise Prices, Lower Range | $24.93 | ||
Range of Exercise Prices, Upper Range | $27.25 |
Common_Shares_and_Earnings_Per4
Common Shares and Earnings Per Share (Detail Textuals) (USD $) | 12 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 11-May-12 | 14-May-12 |
Stockholders Equity Note [Line Items] | |||||
Common shares issued for cash | 39,222 | ||||
Adjustments to denominator diluted earnings per share | 238,162 | 203,583 | 194,240 | ||
Maximum per share differences between basic and diluted earnings per share in total or from continuing or discontinued operations | $0.01 | $0.01 | $0.01 | ||
1999 Employee Stock Purchase Plan | |||||
Stockholders Equity Note [Line Items] | |||||
Percentage of market price for eligible employees to purchase shares at the end of each six month purchase period | 85.00% | ||||
Common shares authorized for granting stock awards | 1,400,000 | ||||
Common shares available for grant | 460,264 | ||||
Common shares issued for cash | 39,222 | ||||
Purchase of shares in open market | 43,837 | 60,439 | |||
1999 Employee Stock Purchase Plan | Previously Reported | |||||
Stockholders Equity Note [Line Items] | |||||
Common shares authorized for granting stock awards | 900,000 | ||||
Dividend Reinvestment and Share Purchase Plan | |||||
Stockholders Equity Note [Line Items] | |||||
Common shares available for grant | 661,751 | ||||
Common shares issued for cash | 288,045 | ||||
Purchase of shares in open market | 7,480 | 284,632 | 258,092 | ||
Shelf registration for issuance of common shares | 1,500,000 | ||||
2014 Stock Incentive Plan | |||||
Stockholders Equity Note [Line Items] | |||||
Common shares authorized for granting stock awards | 1,900,000 | ||||
Common shares available for grant | 1,685,653 | ||||
Distribution Agreement | J.P. Morgan Securities Inc. (JPMS) | |||||
Stockholders Equity Note [Line Items] | |||||
Agreement with distribution agent for offer and sale of shares, aggregate sales price | $75 | ||||
Percentage of commission on gross sales price | 2.00% |
ShareBased_Payments_Informatio
Share-Based Payments - Information about Stock Options Outstanding (Details) (Stock options, USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise Price | $24.93 | $25.69 | $26.59 | $28.53 |
Exercise price $24.93 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Exercise Price | $24.93 | |||
Outstanding and Exercisable | 12,750 | |||
Remaining Contractual Life | Expire on April 10, 2015 |
ShareBased_Payments_Summary_of
Share-Based Payments - Summary of Stock Options Activity (Details 1) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Outstanding [Roll Forward] | |||
Exercised | 20,800 | ||
Stock options | |||
Share-Based Compensation Arrangement By Share-Based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, Beginning of Year | 34,700 | 92,497 | 156,397 |
Granted | |||
Exercised | 20,800 | 56,109 | |
Forfeited or Expired | 1,150 | 1,688 | 63,900 |
Outstanding, End of Year | 12,750 | 34,700 | 92,497 |
Exercisable, End of Year | 12,750 | 34,700 | 92,497 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding, Beginning of Year | $25.69 | $26.59 | $28.53 |
Granted | |||
Exercised | $26.11 | $27.12 | |
Forfeited or Expired | $26.50 | $27.25 | $31.34 |
Outstanding, End of Year | $24.93 | $25.69 | $26.59 |
Exercisable, End of Year | $24.93 | $25.69 | $26.59 |
Cash Received for Options Exercised | $543,000 | $1,522,000 | |
Intrinsic Value of Options Exercised | $89,000 | $152,000 | |
Fair Value of Options Granted During Year | none granted | none granted | none granted |
ShareBased_Payments_Summary_of1
Share-Based Payments - Summary of Status of Directors' Restricted Stock Awards (Details 2) (Director, Restricted Stock, USD $) | 0 Months Ended | 12 Months Ended | ||
Apr. 14, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Director | Restricted Stock | ||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Nonvested, Number Of Shares [Roll Forward] | ||||
Nonvested, Beginning of Year | 42,483 | 56,900 | 54,250 | |
Shares/Units Granted | 16,800 | 16,800 | 17,333 | 24,000 |
Vested | 21,233 | 29,750 | 21,350 | |
Forfeited | 2,000 | |||
Nonvested, End of Year | 38,050 | 42,483 | 56,900 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Nonvested, Beginning of Year | $25.03 | $21.84 | $23.26 | |
Weighted Average Grant-Date Fair Value per Award | $29.41 | $29.41 | $30.77 | $21.32 |
Vested | $24.11 | $21.87 | $24.86 | |
Forfeited | $31.03 | |||
Nonvested, End of Year | $27.47 | $25.03 | $21.84 | |
Compensation Expense Recognized | $416,000 | $611,000 | $552,000 | |
Fair Value of Shares Vested in Year | $512,000 | $651,000 | $531,000 |
ShareBased_Payments_Summary_of2
Share-Based Payments - Summary of Status of Employees' Restricted Stock Awards (Details 3) (Employee, Restricted Stock, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee | Restricted Stock | |||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Nonvested, Number Of Shares [Roll Forward] | |||
Nonvested, Beginning of Year | 48,315 | 47,645 | 34,868 |
Shares/Units Granted | 26,700 | 17,000 | 26,120 |
Awards Vested | 25,360 | 16,330 | 11,518 |
Forfeited | 4,375 | 1,825 | |
Nonvested, End of Year | 45,280 | 48,315 | 47,645 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Nonvested, Beginning of Year | $25.04 | $21.82 | $22.86 |
Weighted Average Grant-Date Fair Value per Award | $29.41 | $31.03 | $21.48 |
Awards Vested | $24.80 | $21.89 | $24.14 |
Forfeited | $28.03 | $22.20 | |
Nonvested, End of Year | $27.46 | $25.04 | $21.82 |
Compensation Expense Recognized | $998,000 | $427,000 | $325,000 |
Fair Value Of Awards Vested | $629,000 | $358,000 | $278,000 |
ShareBased_Payments_Summary_of3
Share-Based Payments - Summary of Status of Employees' Restricted Stock Unit Awards (Details 4) (Restricted Stock Units (RSU), Employee, USD $) | 0 Months Ended | 12 Months Ended | ||
Apr. 14, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock Units (RSU) | Employee | ||||
Share-Based Compensation Arrangement By Share-Based Payment Award, Equity Instruments Other Than Options, Nonvested, Number Of Shares [Roll Forward] | ||||
Nonvested, Beginning of Year | 56,180 | 60,665 | 73,815 | |
Granted | 11,800 | 11,800 | 15,150 | 15,800 |
Reinstated | 75 | |||
Vested | 14,305 | 17,535 | 20,750 | |
Forfeited | 7,850 | 2,100 | 8,200 | |
Nonvested, End of Year | 45,900 | 56,180 | 60,665 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||
Nonvested, Beginning of Year | $19.79 | $18.11 | $20.95 | |
Granted | $24.95 | $24.95 | $25.30 | $17.66 |
Reinstated | $30.81 | |||
Vested | $18.05 | $18.73 | $27.13 | |
Forfeited | $18.90 | $19.88 | $19.97 | |
Nonvested, End of Year | $21.82 | $19.79 | $18.11 | |
Compensation Expense Recognized | $194,000 | $275,000 | $256,000 | |
Fair Value of Units Converted in Year | $258,000 | $328,000 | $563,000 |
ShareBased_Payments_Summary_of4
Share-Based Payments - Summary of Stock Performance Awards Granted and Amounts Expensed (Details 5) (USD $) | 12 Months Ended | 60 Months Ended | 36 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares Awarded | 22,630 | ||||||
Executive Officers | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Expense Recognized | 2,022,000 | $2,678,000 | $1,255,000 | ||||
Shares Awarded | 188,221 | ||||||
Executive Officers | Performance Period 2014 To 2016 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum Shares Subject To Award | 159,450 | 159,450 | 159,450 | ||||
Shares Used To Estimate Expense | 106,300 | 106,300 | 106,300 | ||||
Average Grant Date Fair Value | 22.94 | 22.94 | $22.94 | ||||
Expense Recognized | 1,422,000 | ||||||
Executive Officers | Performance Period 2014 To 2016 | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance Period | 2014 | ||||||
Executive Officers | Performance Period 2014 To 2016 | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance Period | 2016 | ||||||
Executive Officers | Performance Period 2013 To 2015 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum Shares Subject To Award | 90,600 | 90,600 | 90,600 | ||||
Shares Used To Estimate Expense | 45,300 | 45,300 | 45,300 | ||||
Average Grant Date Fair Value | 37.51 | 37.51 | $37.51 | ||||
Expense Recognized | 458,000 | 580,000 | |||||
Executive Officers | Performance Period 2013 To 2015 | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance Period | 2013 | ||||||
Executive Officers | Performance Period 2013 To 2015 | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance Period | 2015 | ||||||
Executive Officers | Performance Period 2012 To 2014 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum Shares Subject To Award | 148,400 | 148,400 | 148,400 | ||||
Shares Used To Estimate Expense | 74,200 | 74,200 | 74,200 | ||||
Average Grant Date Fair Value | 21.75 | 21.75 | $21.75 | ||||
Expense Recognized | 142,000 | 1,686,000 | 1,001,000 | ||||
Shares Awarded | 89,991 | ||||||
Executive Officers | Performance Period 2012 To 2014 | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance Period | 2012 | ||||||
Executive Officers | Performance Period 2012 To 2014 | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance Period | 2014 | ||||||
Executive Officers | Performance Period 2011 To 2013 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum Shares Subject To Award | 90,600 | 90,600 | 90,600 | ||||
Shares Used To Estimate Expense | 45,300 | 45,300 | 45,300 | ||||
Average Grant Date Fair Value | 23.61 | 23.61 | $23.61 | ||||
Expense Recognized | 412,000 | 254,000 | |||||
Shares Awarded | 48,730 | ||||||
Executive Officers | Performance Period 2011 To 2013 | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance Period | 2011 | ||||||
Executive Officers | Performance Period 2011 To 2013 | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance Period | 2013 | ||||||
Executive Officers | Performance Period 2010 To 2012 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum Shares Subject To Award | 138,800 | 138,800 | 138,800 | ||||
Shares Used To Estimate Expense | 69,400 | 69,400 | 69,400 | ||||
Average Grant Date Fair Value | 20.97 | 20.97 | $20.97 | ||||
Expense Recognized | |||||||
Shares Awarded | 49,500 | ||||||
Executive Officers | Performance Period 2010 To 2012 | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance Period | 2010 | ||||||
Executive Officers | Performance Period 2010 To 2012 | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance Period | 2012 |
ShareBased_Payments_Detail_Tex
Share-Based Payments (Detail Textuals) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Discount from average market price to purchase shares | 15.00% | ||
Investment period | 6 months | ||
Stock compensation expense | $175,000 | $143,000 | $179,000 |
1999 Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of options to purchase common stock | 2,041,500 |
ShareBased_Payments_Detail_Tex1
Share-Based Payments (Detail Textuals 1) (USD $) | 0 Months Ended | 12 Months Ended | ||
Apr. 14, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock | Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 16,800 | 16,800 | 17,333 | 24,000 |
Forfeited | 2,000 | |||
Vesting percentage | 25.00% | |||
Grant date fair value of each share of stock awards | $29.41 | $29.41 | $30.77 | $21.32 |
Restricted Stock | Director | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting date | 8-Apr-15 | |||
Restricted Stock | Director | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting date | 8-Apr-18 | |||
Restricted Stock | Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 26,700 | 17,000 | 26,120 | |
Forfeited | 4,375 | 1,825 | ||
Grant date fair value of each share of stock awards | $29.41 | $31.03 | $21.48 | |
Restricted Stock | Executive Officers | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 26,700 | |||
Vesting percentage | 25.00% | |||
Grant date fair value of each share of stock awards | $29.41 | |||
Restricted Stock | Executive Officers | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting date | 8-Apr-15 | |||
Restricted Stock | Executive Officers | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting date | 8-Apr-18 | |||
Restricted Stock Units (RSU) | Employee | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted | 11,800 | 11,800 | 15,150 | 15,800 |
Forfeited | 7,850 | 2,100 | 8,200 | |
Vesting date | 8-Apr-18 | |||
Grant date fair value of each share of stock awards | $24.95 | $24.95 | $25.30 | $17.66 |
Unvested stock performance awards | Executive Officers | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Forfeited | 8,900 | |||
Unvested stock performance awards | Executive Officers | Granted in 2013 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Forfeited | 4,900 | |||
Unvested stock performance awards | Executive Officers | Granted in 2012 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Forfeited | 6,600 | |||
Unvested stock performance awards | Executive Officers | Granted in 2011 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Forfeited | 3,300 | |||
Unvested stock performance awards | Executive Officers | Granted in 2010 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Forfeited | 4,000 |
ShareBased_Payments_Detail_Tex2
Share-Based Payments (Detail Textuals 2) (USD $) | 12 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized amount of compensation expense related to stock-based compensation | $3 | |
Weighted-average period of amortization | 1 year 10 months 24 days | |
Chief Executive Officer | Performance Period 2012 To 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payout target percentage | 121.28% | |
Chief Executive Officer | Performance Period 2011 To 2013 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Awarded | 26,100 | |
Payout target percentage | 117.86% |
Retained_Earnings_and_Dividend1
Retained Earnings and Dividend Restriction (Detail Textuals) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Retained Earnings Restriction [Line Items] | ||
Total Capitalization | 1,071,255 | $924,419 |
OTP | ||
Retained Earnings Restriction [Line Items] | ||
Equity to total capitalization ratio | 49.80% | |
OTP | Minimum | ||
Retained Earnings Restriction [Line Items] | ||
Required equity to total capitalization ratio to limit dividend payment | 45.00% | |
OTP | Maximum | ||
Retained Earnings Restriction [Line Items] | ||
Required equity to total capitalization ratio to limit dividend payment | 55.00% | |
Total Capitalization | 987,000 |
Commitments_and_Contingencies_2
Commitments and Contingencies of Continuing Operations - Amounts of Commitments under Construction Programs, Capacity and Energy Requirements, Coal and Coal Delivery Contracts and Operating Leases (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Operating Leases | |
2015 | $7,072 |
2016 | 5,427 |
2017 | 4,311 |
2018 | 3,734 |
2019 | 2,225 |
Beyond 2019 | 14,590 |
Total | 37,359 |
OTP | |
Operating Leases | |
2015 | 1,958 |
2016 | 1,371 |
2017 | 978 |
2018 | 990 |
2019 | 1,002 |
Beyond 2019 | 10,824 |
Total | 17,123 |
OTP | Capacity and Energy Requirements | |
Purchase Commitments | |
2015 | 34,383 |
2016 | 22,812 |
2017 | 22,123 |
2018 | 22,729 |
2019 | 24,532 |
Beyond 2019 | 217,359 |
Total | 343,938 |
OTP | Coal and Freight Purchase Commitments | |
Purchase Commitments | |
2015 | 49,739 |
2016 | 22,943 |
2017 | 28,146 |
2018 | 23,135 |
2019 | 23,072 |
Beyond 2019 | 598,742 |
Total | 745,777 |
OTP | Construction Program Commitments | |
Purchase Commitments | |
2015 | 48,708 |
2016 | 40,653 |
2017 | 17,163 |
2018 | 100 |
2019 | |
Beyond 2019 | |
Total | 106,624 |
Nonelectric | |
Operating Leases | |
2015 | 5,114 |
2016 | 4,056 |
2017 | 3,333 |
2018 | 2,744 |
2019 | 1,223 |
Beyond 2019 | 3,766 |
Total | $20,236 |
Commitments_and_Contingencies_3
Commitments and Contingencies of Continuing Operations (Detail Textuals) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Commitments and Contingencies Disclosure [Line Items] | |||
Rent expense from continuing operations | $10,165,000 | $8,560,000 | $7,951,000 |
Loss Contingency, range of possible loss, maximum | 2,000,000 | ||
OTP | Construction Programs | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Commitment under contracts aggregate amount | $106,600,000 | ||
OTP | Capacity and Energy Requirements | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Contracts expiration year | 2039 | ||
OTP | Coal and Freight Purchase Commitments | |||
Commitments and Contingencies Disclosure [Line Items] | |||
Contracts expiration year | 2015, 2016, 2017 and 2040 |
ShortTerm_and_LongTerm_Borrowi2
Short-Term and Long-Term Borrowings and Preferred Stock Redemption - Status of Lines of Credit (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Line of Credit Facility [Line Items] | ||
Line Limit | $320,000 | |
In Use | 10,854 | |
Restricted due to Outstanding Letters of Credit | 834 | |
Available | 308,312 | 266,316 |
Otter Tail Corporation Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Line Limit | 150,000 | |
In Use | 10,854 | |
Restricted due to Outstanding Letters of Credit | 274 | |
Available | 138,872 | 149,341 |
OTP Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Line Limit | 170,000 | |
In Use | ||
Restricted due to Outstanding Letters of Credit | 560 | |
Available | $169,440 | $116,975 |
ShortTerm_and_LongTerm_Borrowi3
Short-Term and Long-Term Borrowings and Preferred Stock Redemption - Aggregate Amounts of Maturities on Bonds Outstanding and Other Long-Term Obligations (Details 1) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | |
Aggregate amounts of debt maturities in 2015 | $201 |
Aggregate amounts of debt maturities in 2016 | 52,544 |
Aggregate amounts of debt maturities in 2017 | 33,228 |
Aggregate amounts of debt maturities in 2018 | 187 |
Aggregate amounts of debt maturities in 2019 | $172 |
ShortTerm_and_LongTerm_Borrowi4
Short-Term and Long-Term Borrowings and Preferred Stock Redemption - Breakdown of Assignment of Company's Consolidated Short-Term and Long-Term Debt Outstanding (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Short-Term Debt | $10,854 | $51,195 |
Long-Term Debt | 498,691 | 389,778 |
Less: Current Maturities - Otter Tail Corporation | 201 | 188 |
Unamortized Debt Discount | 1 | 1 |
Total Long-Term Debt | 498,489 | 389,589 |
Total Short-Term and Long-Term Debt (with current maturities) | 509,544 | 440,972 |
Unsecured Term Loan - LIBOR plus 0.875%, due January 15, 2015 (early retired on February 27, 2014) | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 40,900 | |
9.000% Notes, due December 15, 2016 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 52,330 | 52,330 |
Senior Unsecured Notes 5.95%, Series A, due August 20, 2017 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 33,000 | 33,000 |
Senior Unsecured Notes 4.63%, due December 1, 2021 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 140,000 | 140,000 |
Senior Unsecured Notes 6.15%, Series B, due August 20, 2022 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 30,000 | 30,000 |
Senior Unsecured Notes 6.37%, Series C, due August 20, 2027 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 42,000 | 42,000 |
Senior Unsecured Notes 4.68%, Series A, due February 27, 2029 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 60,000 | |
Senior Unsecured Notes 6.47%, Series D, due August 20, 2037 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 50,000 | 50,000 |
Senior Unsecured Notes 5.47%, Series B, due February 27, 2044 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 90,000 | |
North Dakota Development Note, 3.95%, due April 1, 2018 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 256 | 325 |
Partnership in Assisting Community Expansion (PACE) Note, 2.54%, due March 18, 2021 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 1,105 | 1,223 |
OTP | ||
Debt Instrument [Line Items] | ||
Short-Term Debt | 51,195 | |
Long-Term Debt | 445,000 | 335,900 |
Less: Current Maturities - Otter Tail Corporation | ||
Unamortized Debt Discount | ||
Total Long-Term Debt | 445,000 | 335,900 |
Total Short-Term and Long-Term Debt (with current maturities) | 445,000 | 387,095 |
OTP | Unsecured Term Loan - LIBOR plus 0.875%, due January 15, 2015 (early retired on February 27, 2014) | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 40,900 | |
OTP | Senior Unsecured Notes 5.95%, Series A, due August 20, 2017 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 33,000 | 33,000 |
OTP | Senior Unsecured Notes 4.63%, due December 1, 2021 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 140,000 | 140,000 |
OTP | Senior Unsecured Notes 6.15%, Series B, due August 20, 2022 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 30,000 | 30,000 |
OTP | Senior Unsecured Notes 6.37%, Series C, due August 20, 2027 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 42,000 | 42,000 |
OTP | Senior Unsecured Notes 4.68%, Series A, due February 27, 2029 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 60,000 | |
OTP | Senior Unsecured Notes 6.47%, Series D, due August 20, 2037 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 50,000 | 50,000 |
OTP | Senior Unsecured Notes 5.47%, Series B, due February 27, 2044 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 90,000 | |
OTP | North Dakota Development Note, 3.95%, due April 1, 2018 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | ||
OTP | Partnership in Assisting Community Expansion (PACE) Note, 2.54%, due March 18, 2021 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | ||
Otter Tail Corporation | ||
Debt Instrument [Line Items] | ||
Short-Term Debt | 10,854 | |
Long-Term Debt | 53,691 | 53,878 |
Less: Current Maturities - Otter Tail Corporation | 201 | 188 |
Unamortized Debt Discount | 1 | 1 |
Total Long-Term Debt | 53,489 | 53,689 |
Total Short-Term and Long-Term Debt (with current maturities) | 64,544 | 53,877 |
Otter Tail Corporation | 9.000% Notes, due December 15, 2016 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 52,330 | 52,330 |
Otter Tail Corporation | North Dakota Development Note, 3.95%, due April 1, 2018 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | 256 | 325 |
Otter Tail Corporation | Partnership in Assisting Community Expansion (PACE) Note, 2.54%, due March 18, 2021 | ||
Debt Instrument [Line Items] | ||
Long-Term Debt | $1,105 | $1,223 |
ShortTerm_and_LongTerm_Borrowi5
Short-Term and Long-Term Borrowings and Preferred Stock Redemption - Breakdown of Assignment of Company's Consolidated Short-Term and Long-Term Debt Outstanding (Parentheticals) (Details 2) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Nov. 25, 2013 | Nov. 06, 2013 | |
Unsecured Term Loan - LIBOR plus 0.875%, due January 15, 2015 (early retired on February 27, 2014) | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Due Date | 15-Jan-15 | |||
Description of variable rate basis | LIBOR | |||
Basis spread on variable rate | 0.88% | |||
9.000% Notes, due December 15, 2016 | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Interest Rate | 9.00% | 9.00% | 9.00% | 9.00% |
Long-Term Debt, Due Date | 15-Dec-16 | 15-Dec-16 | ||
Senior Unsecured Notes 5.95%, Series A, due August 20, 2017 | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Interest Rate | 5.95% | 5.95% | ||
Long-Term Debt, Due Date | 20-Aug-17 | 20-Aug-17 | ||
Senior Unsecured Notes 4.63%, due December 1, 2021 | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Interest Rate | 4.63% | 4.63% | ||
Long-Term Debt, Due Date | 1-Dec-21 | 1-Dec-21 | ||
Senior Unsecured Notes 6.15%, Series B, due August 20, 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Interest Rate | 6.15% | 6.15% | ||
Long-Term Debt, Due Date | 20-Aug-22 | 20-Aug-22 | ||
Senior Unsecured Notes 6.37%, Series C, due August 20, 2027 | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Interest Rate | 6.37% | 6.37% | ||
Long-Term Debt, Due Date | 20-Aug-27 | 20-Aug-27 | ||
Senior Unsecured Notes 4.68%, Series A, due February 27, 2029 | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Interest Rate | 4.68% | |||
Long-Term Debt, Due Date | 27-Feb-29 | |||
Senior Unsecured Notes 6.47%, Series D, due August 20, 2037 | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Interest Rate | 6.47% | 6.47% | ||
Long-Term Debt, Due Date | 20-Aug-37 | 20-Aug-37 | ||
Senior Unsecured Notes 5.47%, Series B, due February 27, 2044 | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Interest Rate | 5.47% | |||
Long-Term Debt, Due Date | 27-Feb-44 | |||
North Dakota Development Note, 3.95%, due April 1, 2018 | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Interest Rate | 3.95% | 3.95% | ||
Long-Term Debt, Due Date | 1-Apr-18 | 1-Apr-18 | ||
Partnership in Assisting Community Expansion (PACE) Note, 2.54%, due March 18, 2021 | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Interest Rate | 2.54% | 2.54% | ||
Long-Term Debt, Due Date | 18-Mar-21 | 18-Mar-21 | ||
OTP | Unsecured Term Loan - LIBOR plus 0.875%, due January 15, 2015 (early retired on February 27, 2014) | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Due Date | 15-Jan-15 | |||
Description of variable rate basis | LIBOR | |||
Basis spread on variable rate | 0.88% | |||
OTP | Senior Unsecured Notes 5.95%, Series A, due August 20, 2017 | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Interest Rate | 5.95% | 5.95% | ||
Long-Term Debt, Due Date | 20-Aug-17 | 20-Aug-17 | ||
OTP | Senior Unsecured Notes 4.63%, due December 1, 2021 | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Interest Rate | 4.63% | 4.63% | ||
Long-Term Debt, Due Date | 1-Dec-21 | 1-Dec-21 | ||
OTP | Senior Unsecured Notes 6.15%, Series B, due August 20, 2022 | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Interest Rate | 6.15% | 6.15% | ||
Long-Term Debt, Due Date | 20-Aug-22 | 20-Aug-22 | ||
OTP | Senior Unsecured Notes 6.37%, Series C, due August 20, 2027 | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Interest Rate | 6.37% | 6.37% | ||
Long-Term Debt, Due Date | 20-Aug-27 | 20-Aug-27 | ||
OTP | Senior Unsecured Notes 4.68%, Series A, due February 27, 2029 | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Interest Rate | 4.68% | |||
Long-Term Debt, Due Date | 27-Feb-29 | |||
OTP | Senior Unsecured Notes 6.47%, Series D, due August 20, 2037 | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Interest Rate | 6.47% | 6.47% | ||
Long-Term Debt, Due Date | 20-Aug-27 | 20-Aug-37 | ||
OTP | Senior Unsecured Notes 5.47%, Series B, due February 27, 2044 | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Interest Rate | 5.47% | |||
Long-Term Debt, Due Date | 27-Feb-44 | |||
Otter Tail Corporation | 9.000% Notes, due December 15, 2016 | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Interest Rate | 9.00% | 9.00% | ||
Long-Term Debt, Due Date | 15-Dec-16 | 15-Dec-16 | ||
Otter Tail Corporation | North Dakota Development Note, 3.95%, due April 1, 2018 | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Interest Rate | 3.95% | 3.95% | ||
Long-Term Debt, Due Date | 1-Apr-18 | 1-Apr-18 | ||
Otter Tail Corporation | Partnership in Assisting Community Expansion (PACE) Note, 2.54%, due March 18, 2021 | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Interest Rate | 2.54% | 2.54% | ||
Long-Term Debt, Due Date | 18-Mar-21 | 18-Mar-21 |
ShortTerm_and_LongTerm_Borrowi6
Short-Term and Long-Term Borrowings and Preferred Stock Redemption (Detail Textuals) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Oct. 29, 2012 | |
Line of Credit Facility [Line Items] | |||
Weighted average interest rate paid on short-term debt | 1.90% | ||
Line Limit | $320,000,000 | ||
Otter Tail Corporation Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Maximum amount of debt outstanding | 41,348,000 | ||
Average daily balance of debt outstanding | 17,868,000 | ||
Weighted average interest rate paid on short-term debt | 1.90% | 1.90% | |
Line Limit | 150,000,000 | ||
Reduced line of credit facility, borrowing capacity | 40,000,000 | ||
Line of credit facility, description of variable rate basis | LIBOR | ||
Line of credit facility, basis spread on variable rate | 1.75% | ||
Otter Tail Corporation Credit Agreement | Unsecured revolving credit facility | |||
Line of Credit Facility [Line Items] | |||
Line Limit | 150,000,000 | ||
Line of credit facility, Maximum borrowing capacity, subject to conditions | 250,000,000 | ||
OTP Credit Agreement | |||
Line of Credit Facility [Line Items] | |||
Maximum amount of debt outstanding | 97,000,000 | ||
Average daily balance of debt outstanding | 12,815,000 | ||
Weighted average interest rate paid on short-term debt | 1.40% | 1.40% | |
Line Limit | 170,000,000 | ||
Line of credit facility, maximum amount of letters of credit outstanding at any time | 50,000,000 | ||
Line of credit facility, description of variable rate basis | LIBOR | ||
Line of credit facility, basis spread on variable rate | 1.25% | ||
OTP Credit Agreement | Unsecured revolving credit facility | |||
Line of Credit Facility [Line Items] | |||
Line Limit | 170,000,000 | ||
Line of credit facility, Maximum borrowing capacity, subject to conditions | $250,000,000 |
ShortTerm_and_LongTerm_Borrowi7
Short-Term and Long-Term Borrowings and Preferred Stock Redemption (Detail Textuals 1) (USD $) | 12 Months Ended | 0 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Mar. 01, 2013 | Mar. 01, 2013 |
Cumulative Preferred Shares | |||
Debt Instrument [Line Items] | |||
Redemption amount of preferred stock equal to proceeds from term loan | $15.70 | ||
Preferred stock redemption, call premiums | 0.2 | ||
Otter Tail Power Company | J P Morgan Chase Bank | Unsecured Term Loan | |||
Debt Instrument [Line Items] | |||
Term loan borrowed for funding | 40.9 | ||
Variable interest rate | LIBOR | ||
Basis spread on variable rate | 0.88% | ||
Otter Tail Power Company | J P Morgan Chase Bank | Unsecured Term Loan | 4.65 % Grant County, South Dakota and 4.85 % Mercer County, North Dakota Pollution Control Refunding Revenue Bonds | |||
Debt Instrument [Line Items] | |||
Term loan borrowed for funding | 25.1 | ||
Otter Tail Power Company | J P Morgan Chase Bank | Unsecured Term Loan | Intercompany Note | |||
Debt Instrument [Line Items] | |||
Term loan borrowed for funding | $15.70 |
ShortTerm_and_LongTerm_Borrowi8
Short-Term and Long-Term Borrowings and Preferred Stock Redemption (Detail Textuals 2) (USD $) | 12 Months Ended | 0 Months Ended | |||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 13, 2012 | Nov. 06, 2013 | Nov. 25, 2013 | Dec. 31, 2011 | |||
Transaction | |||||||||
Debt Instrument [Line Items] | |||||||||
Remaining principal amount of notes outstanding unless redeemed early or otherwise repaid | $498,691,000 | $389,778,000 | |||||||
Financial covenants of debt | The Company’s and OTP’s borrowing agreements are subject to certain financial covenants. Specifically: | ||||||||
● | Under the Otter Tail Corporation Credit Agreement, the Company may not permit the ratio of its Interest-bearing Debt to Total Capitalization to be greater than 0.60 to 1.00 or permit its Interest and Dividend Coverage Ratio to be less than 1.50 to 1.00 (each measured on a consolidated basis), as provided in the Otter Tail Corporation Credit Agreement. | ||||||||
● | Under the OTP Credit Agreement and the Loan Agreement (when in effect), OTP may not permit the ratio of its Interest-bearing Debt to Total Capitalization to be greater than 0.60 to 1.00. | ||||||||
● | Under the 2007 Note Purchase Agreement and 2011 Note Purchase Agreement, OTP may not permit the ratio of its Consolidated Debt to Total Capitalization to be greater than 0.60 to 1.00 or permit its Interest and Dividend Coverage Ratio to be less than 1.50 to 1.00, in each case as provided in the related borrowing agreement, and OTP may not permit its Priority Debt to exceed 20% of its Total Capitalization, as provided in the related agreement. | ||||||||
● | Under the 2013 Note Purchase Agreement, OTP may not permit its Interest-bearing Debt to exceed 60% of Total Capitalization and may not permit its Priority Indebtedness to exceed 20% of its Total Capitalization, each as provided in the 2013 Note Purchase Agreement. | ||||||||
Income (loss) from continuing operations per diluted share | $1.55 | $1.33 | $1.25 | ||||||
Otter Tail Power Company | |||||||||
Debt Instrument [Line Items] | |||||||||
Remaining principal amount of notes outstanding unless redeemed early or otherwise repaid | 445,000,000 | 335,900,000 | |||||||
Cascade Investment, L.L.C. (Cascade) | |||||||||
Debt Instrument [Line Items] | |||||||||
Income (loss) from continuing operations per diluted share | $0.22 | ||||||||
Partnership in Assisting Community Expansion (PACE) Note, 2.54%, due March 18, 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Remaining principal amount of notes outstanding unless redeemed early or otherwise repaid | 1,105,000 | 1,223,000 | |||||||
Interest rate of original debt repurchased | 2.54% | 2.54% | |||||||
North Dakota Development Note, 3.95%, due April 1, 2018 | |||||||||
Debt Instrument [Line Items] | |||||||||
Remaining principal amount of notes outstanding unless redeemed early or otherwise repaid | 256,000 | 325,000 | |||||||
Interest rate of original debt repurchased | 3.95% | 3.95% | |||||||
Senior Unsecured Notes 4.63%, due December 1, 2021 | |||||||||
Debt Instrument [Line Items] | |||||||||
Remaining principal amount of notes outstanding unless redeemed early or otherwise repaid | 140,000,000 | 140,000,000 | |||||||
Interest rate of original debt repurchased | 4.63% | 4.63% | |||||||
Senior Unsecured Notes 4.63%, due December 1, 2021 | Otter Tail Power Company | |||||||||
Debt Instrument [Line Items] | |||||||||
Remaining principal amount of notes outstanding unless redeemed early or otherwise repaid | 140,000,000 | 140,000,000 | |||||||
Interest rate of original debt repurchased | 4.63% | 4.63% | |||||||
Senior Unsecured Notes 5.95%, Series A, due August 20, 2017 | |||||||||
Debt Instrument [Line Items] | |||||||||
Remaining principal amount of notes outstanding unless redeemed early or otherwise repaid | 33,000,000 | 33,000,000 | |||||||
Interest rate of original debt repurchased | 5.95% | 5.95% | |||||||
Senior Unsecured Notes 5.95%, Series A, due August 20, 2017 | Otter Tail Power Company | |||||||||
Debt Instrument [Line Items] | |||||||||
Remaining principal amount of notes outstanding unless redeemed early or otherwise repaid | 33,000,000 | 33,000,000 | |||||||
Interest rate of original debt repurchased | 5.95% | 5.95% | |||||||
Senior Unsecured Notes 6.15%, Series B, due August 20, 2022 | |||||||||
Debt Instrument [Line Items] | |||||||||
Remaining principal amount of notes outstanding unless redeemed early or otherwise repaid | 30,000,000 | 30,000,000 | |||||||
Interest rate of original debt repurchased | 6.15% | 6.15% | |||||||
Senior Unsecured Notes 6.15%, Series B, due August 20, 2022 | Otter Tail Power Company | |||||||||
Debt Instrument [Line Items] | |||||||||
Remaining principal amount of notes outstanding unless redeemed early or otherwise repaid | 30,000,000 | 30,000,000 | |||||||
Interest rate of original debt repurchased | 6.15% | 6.15% | |||||||
Senior Unsecured Notes 6.37%, Series C, due August 20, 2027 | |||||||||
Debt Instrument [Line Items] | |||||||||
Remaining principal amount of notes outstanding unless redeemed early or otherwise repaid | 42,000,000 | 42,000,000 | |||||||
Interest rate of original debt repurchased | 6.37% | 6.37% | |||||||
Senior Unsecured Notes 6.37%, Series C, due August 20, 2027 | Otter Tail Power Company | |||||||||
Debt Instrument [Line Items] | |||||||||
Remaining principal amount of notes outstanding unless redeemed early or otherwise repaid | 42,000,000 | 42,000,000 | |||||||
Interest rate of original debt repurchased | 6.37% | 6.37% | |||||||
Senior Unsecured Notes 6.47%, Series D, due August 20, 2037 | |||||||||
Debt Instrument [Line Items] | |||||||||
Remaining principal amount of notes outstanding unless redeemed early or otherwise repaid | 50,000,000 | 50,000,000 | |||||||
Interest rate of original debt repurchased | 6.47% | 6.47% | |||||||
Senior Unsecured Notes 6.47%, Series D, due August 20, 2037 | Otter Tail Power Company | |||||||||
Debt Instrument [Line Items] | |||||||||
Remaining principal amount of notes outstanding unless redeemed early or otherwise repaid | 50,000,000 | 50,000,000 | |||||||
Interest rate of original debt repurchased | 6.47% | 6.47% | |||||||
2016 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Original debt issued, principal amount | 100,000,000 | ||||||||
Remaining principal amount of notes outstanding unless redeemed early or otherwise repaid | 52,330,000 | 52,330,000 | |||||||
Interest rate of original debt repurchased | 9.00% | 9.00% | 9.00% | 9.00% | |||||
Negotiated prepayment premium pursuant to the Note Purchase Agreement | 9,889,000 | ||||||||
Unamortized debt expense recognized pursuant to the Note Purchase Agreement | 363,000 | ||||||||
Income (loss) from continuing operations per diluted share | $0.17 | ||||||||
Amount of the original debt repurchased | 12,933,000 | 34,737,000 | |||||||
Price paid for repurchase of debt | 59,404,000 | ||||||||
Principal and accrued interest of purchased notes | 1,845,000 | ||||||||
Negotiated premium of repurchase notes | 9,889,000 | ||||||||
Number of repurchase transaction | 2 | ||||||||
Divesture Period | 2 years | ||||||||
2007 and 2011 Note Purchase Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of required payment for whole prepayment | 100.00% | ||||||||
2007 and 2011 Note Purchase Agreement | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt to total capitalization ratio | 1 | ||||||||
Interest and dividend coverage ratio | 1.5 | ||||||||
Priority debt to total capitalization | 20.00% | ||||||||
2007 and 2011 Note Purchase Agreement | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of required payment for partial prepayment | 10.00% | ||||||||
Debt to total capitalization ratio | 0.6 | ||||||||
Interest and dividend coverage ratio | 1 | ||||||||
2007 and 2011 Note Purchase Agreement | Senior Unsecured Notes 6.63%, due December 1, 2011 | Otter Tail Power Company | |||||||||
Debt Instrument [Line Items] | |||||||||
Original debt issued, principal amount | 140,000,000 | ||||||||
Interest rate of original debt repurchased | 4.63% | ||||||||
2007 Note Purchase Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Percentage of required payment in the event of change in control | 100.00% | ||||||||
2007 Note Purchase Agreement | Unsecured Senior Notes | Otter Tail Power Company | |||||||||
Debt Instrument [Line Items] | |||||||||
Original debt issued, principal amount | 155,000,000 | ||||||||
2007 Note Purchase Agreement | Senior Unsecured Notes 5.95%, Series A, due August 20, 2017 | Otter Tail Power Company | |||||||||
Debt Instrument [Line Items] | |||||||||
Original debt issued, principal amount | 33,000,000 | ||||||||
Interest rate of original debt repurchased | 5.95% | ||||||||
2007 Note Purchase Agreement | Senior Unsecured Notes 6.15%, Series B, due August 20, 2022 | Otter Tail Power Company | |||||||||
Debt Instrument [Line Items] | |||||||||
Original debt issued, principal amount | 30,000,000 | ||||||||
Interest rate of original debt repurchased | 6.15% | ||||||||
2007 Note Purchase Agreement | Senior Unsecured Notes 6.37%, Series C, due August 20, 2027 | Otter Tail Power Company | |||||||||
Debt Instrument [Line Items] | |||||||||
Original debt issued, principal amount | 42,000,000 | ||||||||
Interest rate of original debt repurchased | 6.37% | ||||||||
2007 Note Purchase Agreement | Senior Unsecured Notes 6.47%, Series D, due August 20, 2037 | Otter Tail Power Company | |||||||||
Debt Instrument [Line Items] | |||||||||
Original debt issued, principal amount | 50,000,000 | ||||||||
Interest rate of original debt repurchased | 6.47% | ||||||||
Cascade Note Purchase Agreement | 8.89% Senior Unsecured Note due November 30, 2017 | |||||||||
Debt Instrument [Line Items] | |||||||||
Prepayment of cascade note pursuant to the Note Purchase Agreement | 50,000,000 | ||||||||
Effective interest rate during the period | 8.89% | ||||||||
Price paid for early repayment of debt | 63,031,000 | ||||||||
Accrued interest pursuant to the Note Purchase Agreement | 531,000 | ||||||||
Negotiated prepayment premium pursuant to the Note Purchase Agreement | 12,500,000 | ||||||||
Unamortized debt expense recognized pursuant to the Note Purchase Agreement | $606,000 | ||||||||
Otter Tail Corporation Credit Agreement | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt to total capitalization ratio | 1 | ||||||||
Interest and dividend coverage ratio | 1.5 | ||||||||
Otter Tail Corporation Credit Agreement | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt to total capitalization ratio | 0.6 | ||||||||
Interest and dividend coverage ratio | 1 | ||||||||
OTP Credit Agreement | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt to total capitalization ratio | 1 | ||||||||
OTP Credit Agreement | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt to total capitalization ratio | 0.6 |
ShortTerm_and_LongTerm_Borrowi9
Short-Term and Long-Term Borrowings and Preferred Stock Redemption (Detail Textuals 3) (Otter Tail Power Company, Note Purchase Agreement 2013, USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Aug. 14, 2013 |
Debt Instrument [Line Items] | ||
Debt instrument description of prepayment | The 2013 Note Purchase Agreement states that 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 prepaid, together with accrued interest and a make-whole amount, provided that if no default or event of default under the 2013 Note Purchase Agreement exists, any optional prepayment made by OTP of (i) all of the Series A Notes then outstanding on or after November 27, 2028 or (ii) all of the Series B Notes then outstanding on or after November 27, 2043, will be made at 100% of the principal prepaid but without any make-whole amount. | |
Interest bearing debt, maximum percentage of total capitalization | 60.00% | |
Priority indebtedness, maximum percentage of total capitalization | 20.00% | |
Series A Senior Unsecured Notes due on February 27, 2029 | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount of note | $60 | |
Debt instrument, interest rate | 4.68% | |
Series B Senior Unsecured Notes due on February 27, 2044 | ||
Debt Instrument [Line Items] | ||
Aggregate principal amount of note | $90 | |
Debt instrument, interest rate | 5.47% |
Pension_Plan_and_Other_Postret2
Pension Plan and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Pension Plan | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service Cost--Benefit Earned During the Period | $4,666 | $5,594 | $5,084 | |||
Interest Cost on Projected Benefit Obligation | 13,111 | 12,123 | 12,465 | |||
Expected Return on Assets | -16,743 | -14,521 | -14,430 | |||
Amortization of Prior-Service Cost: | ||||||
From Regulatory Asset | 257 | 333 | 398 | |||
From Other Comprehensive Income | 7 | [1] | 9 | [1] | 11 | [1] |
Amortization of Net Actuarial Loss (Net of Medicare Part D Subsidy): | ||||||
From Regulatory Asset | 3,400 | 6,600 | 4,910 | |||
From Other Comprehensive Income | 83 | [1] | 176 | [1] | 131 | [1] |
Net Periodic Cost | 4,781 | 10,314 | 8,569 | |||
Executive Survivor and Supplemental Retirement Plan (ESSRP) | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service Cost--Benefit Earned During the Period | 51 | 51 | 45 | |||
Interest Cost on Projected Benefit Obligation | 1,520 | 1,408 | 1,479 | |||
Amortization of Prior-Service Cost: | ||||||
From Regulatory Asset | 22 | 22 | 22 | |||
From Other Comprehensive Income | 51 | [2] | 51 | [2] | 51 | [2] |
Amortization of Net Actuarial Loss (Net of Medicare Part D Subsidy): | ||||||
From Regulatory Asset | 142 | 208 | 175 | |||
From Other Comprehensive Income | 46 | [3] | 313 | [3] | 152 | [3] |
Net Periodic Cost | 1,832 | 2,053 | 1,924 | |||
Other Postretirement Benefits | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Service Cost (Net of Medicare Part D Subsidy) | 1,055 | 1,421 | 1,544 | |||
Interest Cost (Net of Medicare Part D Subsidy) | 2,200 | 2,050 | 2,574 | |||
Amortization of Transition Obligation | ||||||
From Regulatory Asset | 729 | |||||
From Other Comprehensive Income | [1] | [1] | 19 | [1] | ||
Amortization of Prior-Service Cost: | ||||||
From Regulatory Asset | 205 | 205 | 206 | |||
From Other Comprehensive Income | 5 | [1] | 5 | [1] | 5 | [1] |
Amortization of Net Actuarial Loss (Net of Medicare Part D Subsidy): | ||||||
From Regulatory Asset | 24 | 642 | ||||
From Other Comprehensive Income | [1] | 1 | [1] | 17 | [1] | |
Net Periodic Cost | 3,465 | 3,706 | 5,736 | |||
Effect of Medicare Part D Subsidy | ($948) | ($1,806) | ($2,039) | |||
[1] | Corporate cost included in Other Nonelectric Expenses. | |||||
[2] | Amortization of Prior Service Costs from Other Comprehensive Income Charged to: Electric Operation and Maintenance Expenses $ 20 $ 20 $ 20 Other Nonelectric Expenses 31 31 31 | |||||
[3] | Amortization of Net Actuarial Loss from Other Comprehensive Income Charged to: Electric Operation and Maintenance Expenses $ 132 $ 193 $ 162 Other Nonelectric Expenses (86) 120 (10) |
Pension_Plan_and_Other_Postret3
Pension Plan and Other Postretirement Benefits - Components of Net Periodic Benefit Cost (Parentheticals) (Details) (Executive Survivor and Supplemental Retirement Plan (ESSRP), USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Amortization of Prior Service Costs from Other Comprehensive Income | $51 | [1] | $51 | [1] | $51 | [1] |
Amortization of Net Actuarial Loss from Other Comprehensive Income | 46 | [2] | 313 | [2] | 152 | [2] |
Electric Operation and Maintenance Expenses | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Amortization of Prior Service Costs from Other Comprehensive Income | 20 | 20 | 20 | |||
Amortization of Net Actuarial Loss from Other Comprehensive Income | 132 | 193 | 162 | |||
Other Nonelectric Expenses | ||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||
Amortization of Prior Service Costs from Other Comprehensive Income | 31 | 31 | 31 | |||
Amortization of Net Actuarial Loss from Other Comprehensive Income | ($86) | $120 | ($10) | |||
[1] | Amortization of Prior Service Costs from Other Comprehensive Income Charged to: Electric Operation and Maintenance Expenses $ 20 $ 20 $ 20 Other Nonelectric Expenses 31 31 31 | |||||
[2] | Amortization of Net Actuarial Loss from Other Comprehensive Income Charged to: Electric Operation and Maintenance Expenses $ 132 $ 193 $ 162 Other Nonelectric Expenses (86) 120 (10) |
Pension_Plan_and_Other_Postret4
Pension Plan and Other Postretirement Benefits - Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost (Details 1) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount Rate | 5.30% | 4.50% | 5.15% |
Long-Term Rate of Return on Plan Assets | 7.75% | 7.75% | 8.00% |
Rate of Increase in Future Compensation Level | 3.13% | 3.13% | 3.38% |
Executive Survivor and Supplemental Retirement Plan (ESSRP) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount Rate | 5.30% | 4.50% | 5.15% |
Rate of Increase in Future Compensation Level | 3.18% | 3.19% | 4.59% |
Other Postretirement Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount Rate | 5.10% | 4.25% | 5.05% |
Pension_Plan_and_Other_Postret5
Pension Plan and Other Postretirement Benefits - Amounts Recognized in Consolidated Balance Sheets (Details 2) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Pension Plan | |||
Regulatory Assets: | |||
Unrecognized Prior Service Cost | $518 | $776 | |
Unrecognized Net Actuarial Loss (Gain) | 97,722 | 56,051 | |
Total Regulatory Assets | 98,240 | 56,827 | |
Projected Benefit Obligation | -311,650 | -254,039 | -275,634 |
Accumulated Other Comprehensive Loss: | |||
Unrecognized Prior Service Cost | 21 | 28 | |
Unrecognized Actuarial Loss (Gain) | 899 | 448 | |
Total Accumulated Other Comprehensive Loss | 920 | 476 | |
Noncurrent Liability | 67,061 | 40,422 | |
Executive Survivor and Supplemental Retirement Plan (ESSRP) | |||
Regulatory Assets: | |||
Unrecognized Prior Service Cost | 91 | 113 | |
Unrecognized Net Actuarial Loss (Gain) | 3,238 | 1,971 | |
Total Regulatory Assets | 3,329 | 2,084 | |
Projected Benefit Obligation | -35,650 | -29,321 | -31,925 |
Accumulated Other Comprehensive Loss: | |||
Unrecognized Prior Service Cost | 210 | 261 | |
Unrecognized Actuarial Loss (Gain) | 6,881 | 2,465 | |
Total Accumulated Other Comprehensive Loss | 7,091 | 2,726 | |
Other Postretirement Benefits | |||
Regulatory Assets: | |||
Unrecognized Prior Service Cost | 335 | 540 | |
Unrecognized Net Actuarial Loss (Gain) | 7,086 | -344 | |
Total Regulatory Assets | 7,421 | 196 | |
Projected Benefit Obligation | -53,638 | -45,221 | -58,883 |
Accumulated Other Comprehensive Loss: | |||
Unrecognized Prior Service Cost | 13 | 18 | |
Unrecognized Actuarial Loss (Gain) | -209 | -261 | |
Total Accumulated Other Comprehensive Loss | ($196) | ($243) |
Pension_Plan_and_Other_Postret6
Pension Plan and Other Postretirement Benefits - Funded Status (Details 3) (Pension Plan, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Accumulated Benefit Obligation | ($273,903) | ($224,365) | |
Projected Benefit Obligation | -311,650 | -254,039 | -275,634 |
Fair Value of Plan Assets | 244,589 | 213,617 | 191,018 |
Funded Status | ($67,061) | ($40,422) |
Pension_Plan_and_Other_Postret7
Pension Plan and Other Postretirement Benefits - Reconciliation of Changes in Fair Value of Plan Assets and Plan's Benefit Obligations (Details 4) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Plan | |||
Reconciliation of Fair Value of Plan Assets: | |||
Fair Value of Plan Assets at January 1 | $213,617,000 | $191,018,000 | |
Actual Return on Plan Assets | 21,874,000 | 23,044,000 | |
Employer Contributions | 20,000,000 | 10,000,000 | |
Benefit Payments | -10,902,000 | -10,445,000 | |
Fair Value of Plan Assets at December 31 | 244,589,000 | 213,617,000 | 191,018,000 |
Estimated Asset Return | 9.60% | 11.80% | |
Reconciliation of Projected Benefit Obligation: | |||
Projected Benefit Obligation at January 1 | 254,039,000 | 275,634,000 | |
Service Cost | 4,666,000 | 5,594,000 | 5,084,000 |
Interest Cost | 13,111,000 | 12,123,000 | 12,465,000 |
Benefit Payments | -10,902,000 | -10,445,000 | |
Actuarial (Gain) Loss | 50,736,000 | -28,867,000 | |
Projected Benefit Obligation at December 31 | 311,650,000 | 254,039,000 | 275,634,000 |
Reconciliation of Funded Status: | |||
Funded Status | -67,061,000 | -40,422,000 | |
Expense | -4,781,000 | -10,314,000 | -8,569,000 |
Employer Contributions | 20,000,000 | 10,000,000 | |
Executive Survivor and Supplemental Retirement Plan (ESSRP) | |||
Reconciliation of Fair Value of Plan Assets: | |||
Fair Value of Plan Assets at January 1 | |||
Actual Return on Plan Assets | |||
Employer Contributions | 1,113,000 | 1,137,000 | |
Benefit Payments (Net of Medicare Part D Subsidy) | -1,113,000 | -1,137,000 | |
Fair Value of Plan Assets at December 31 | |||
Reconciliation of Projected Benefit Obligation: | |||
Projected Benefit Obligation at January 1 | 29,321,000 | 31,925,000 | |
Service Cost | 51,000 | 51,000 | 45,000 |
Interest Cost | 1,520,000 | 1,408,000 | 1,479,000 |
Benefit Payments (Net of Medicare Part D Subsidy) | -1,113,000 | -1,137,000 | |
Plan Amendments | |||
Actuarial (Gain) Loss | 5,871,000 | -2,926,000 | |
Projected Benefit Obligation at December 31 | 35,650,000 | 29,321,000 | 31,925,000 |
Reconciliation of Funded Status: | |||
Funded Status | -35,650,000 | -29,321,000 | |
Expense | -1,832,000 | -2,053,000 | -1,924,000 |
Unrecognized Net Actuarial Loss | 10,119,000 | 4,436,000 | |
Employer Contributions | 1,113,000 | 1,137,000 | |
Unrecognized Prior Service Cost | 301,000 | 374,000 | |
Cumulative Employer Contributions in Excess of Net Periodic Benefit Cost | -25,230,000 | -24,511,000 | |
Other Postretirement Benefits | |||
Reconciliation of Fair Value of Plan Assets: | |||
Fair Value of Plan Assets at January 1 | |||
Actual Return on Plan Assets | |||
Employer Contributions | 2,320,000 | 2,012,000 | |
Benefit Payments (Net of Medicare Part D Subsidy) | -5,017,000 | -4,626,000 | |
Participant Premium Payments | 2,697,000 | 2,614,000 | |
Fair Value of Plan Assets at December 31 | |||
Reconciliation of Projected Benefit Obligation: | |||
Projected Benefit Obligation at January 1 | 45,221,000 | 58,883,000 | |
Service Cost (Net of Medicare Part D Subsidy) | 1,055,000 | 1,421,000 | 1,544,000 |
Interest Cost (Net of Medicare Part D Subsidy) | 2,200,000 | 2,050,000 | 2,574,000 |
Benefit Payments (Net of Medicare Part D Subsidy) | -5,017,000 | -4,626,000 | |
Participant Premium Payments | 2,697,000 | 2,614,000 | |
Actuarial (Gain) Loss | 7,482,000 | -15,121,000 | |
Projected Benefit Obligation at December 31 | 53,638,000 | 45,221,000 | 58,883,000 |
Reconciliation of Funded Status: | |||
Accrued Postretirement Cost at January 1 | -45,268,000 | -43,574,000 | |
Expense | -3,465,000 | -3,706,000 | -5,736,000 |
Employer Contributions | 2,320,000 | 2,012,000 | |
Accrued Postretirement Cost at December 31 | ($46,413,000) | ($45,268,000) | ($43,574,000) |
Pension_Plan_and_Other_Postret8
Pension Plan and Other Postretirement Benefits - Weighted-Average Assumptions Used to Determine Benefit Obligations (Details 5) | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount Rate | 4.35% | 5.30% |
Rate of Increase in Future Compensation Level | 3.13% | 3.13% |
Executive Survivor and Supplemental Retirement Plan (ESSRP) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount Rate | 4.35% | 5.30% |
Rate of Increase in Future Compensation Level | 3.15% | 3.18% |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount Rate | 4.20% | 5.10% |
Pension_Plan_and_Other_Postret9
Pension Plan and Other Postretirement Benefits - Measurement Dates (Details 6) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net Periodic Pension Cost | 1-Jan-14 | 1-Jan-13 |
Market Value of Assets | 31-Dec-14 | 31-Dec-13 |
Pension Plan | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
End of Year Benefit Obligations | 1-Jan-14 | 1-Jan-13 |
Pension Plan | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
End of Year Benefit Obligations | 31-Dec-14 | 31-Dec-13 |
Other Postretirement Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net Periodic Pension Cost | 1-Jan-14 | 1-Jan-13 |
Other Postretirement Benefits | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
End of Year Benefit Obligations | 1-Jan-14 | 1-Jan-13 |
Other Postretirement Benefits | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
End of Year Benefit Obligations | 31-Dec-14 | 31-Dec-13 |
Recovered_Sheet13
Pension Plan and Other Postretirement Benefits - Estimated Amounts of Unrecognized Net Actuarial Losses and Prior Service Costs to be Amortized (Details 7) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Pension Plan | |
Decrease in Regulatory Assets: | |
Amortization of Unrecognized Prior Service Cost | $189 |
Amortization of Unrecognized Actuarial Loss | 6,529 |
Decrease in Accumulated Other Comprehensive Loss: | |
Amortization of Unrecognized Prior Service Cost | 5 |
Amortization of Unrecognized Actuarial Loss | 161 |
Total Estimated Amortization | 6,884 |
Executive Survivor and Supplemental Retirement Plan (ESSRP) | |
Decrease in Regulatory Assets: | |
Amortization of Unrecognized Prior Service Cost | 16 |
Amortization of Unrecognized Actuarial Loss | 334 |
Decrease in Accumulated Other Comprehensive Loss: | |
Amortization of Unrecognized Prior Service Cost | 38 |
Amortization of Unrecognized Actuarial Loss | 602 |
Total Estimated Amortization | 990 |
Other Postretirement Benefits | |
Decrease in Regulatory Assets: | |
Amortization of Unrecognized Prior Service Cost | 205 |
Amortization of Unrecognized Actuarial Loss | 191 |
Decrease in Accumulated Other Comprehensive Loss: | |
Amortization of Unrecognized Prior Service Cost | 5 |
Amortization of Unrecognized Actuarial Loss | 5 |
Total Estimated Amortization | $406 |
Recovered_Sheet14
Pension Plan and Other Postretirement Benefits - Benefit Payments, which Reflect Expected Future Service, as Appropriate, Expected to be Paid out from Plan Assets (Details 8) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | $11,858 |
2016 | 12,462 |
2017 | 13,116 |
2018 | 13,941 |
2019 | 14,665 |
Years 2020-2024 | 85,322 |
Executive Survivor and Supplemental Retirement Plan (ESSRP) | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | 1,178 |
2016 | 1,399 |
2017 | 1,376 |
2018 | 1,423 |
2019 | 1,516 |
Years 2020-2024 | 10,904 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2015 | 2,638 |
2016 | 2,762 |
2017 | 2,925 |
2018 | 3,086 |
2019 | 3,247 |
Years 2020-2024 | $17,281 |
Recovered_Sheet15
Pension Plan and Other Postretirement Benefits - The policy of the Plan is to invest assets in accordance with the allocations (Details 9) (Pension Plan) | 12 Months Ended | |
Dec. 31, 2014 | ||
Equity | less than 100% PBO | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 30.00% | |
Equity | less than 100% PBO | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 65.00% | |
Equity | 100% PBO | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 25.00% | |
Equity | 100% PBO | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 60.00% | |
Equity | 105% PBO | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 20.00% | |
Equity | 105% PBO | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 55.00% | |
Equity | >0% PBO | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 15.00% | |
Equity | >0% PBO | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 50.00% | |
Investment Grade Fixed Income | less than 100% PBO | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 35.00% | |
Investment Grade Fixed Income | less than 100% PBO | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 75.00% | |
Investment Grade Fixed Income | 100% PBO | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 40.00% | |
Investment Grade Fixed Income | 100% PBO | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 80.00% | |
Investment Grade Fixed Income | 105% PBO | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 45.00% | |
Investment Grade Fixed Income | 105% PBO | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 85.00% | |
Investment Grade Fixed Income | >0% PBO | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 50.00% | |
Investment Grade Fixed Income | >0% PBO | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 90.00% | |
Below Investment Grade Fixed Income | less than 100% PBO | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 0.00% | [1] |
Below Investment Grade Fixed Income | less than 100% PBO | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 15.00% | [1] |
Below Investment Grade Fixed Income | 100% PBO | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 0.00% | [1] |
Below Investment Grade Fixed Income | 100% PBO | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 15.00% | [1] |
Below Investment Grade Fixed Income | 105% PBO | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 0.00% | [1] |
Below Investment Grade Fixed Income | 105% PBO | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 15.00% | [1] |
Below Investment Grade Fixed Income | >0% PBO | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 0.00% | [1] |
Below Investment Grade Fixed Income | >0% PBO | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 15.00% | [1] |
Other | less than 100% PBO | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 0.00% | [2] |
Other | less than 100% PBO | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 20.00% | [2] |
Other | 100% PBO | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 0.00% | [2] |
Other | 100% PBO | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 20.00% | [2] |
Other | 105% PBO | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 0.00% | [2] |
Other | 105% PBO | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 20.00% | [2] |
Other | >0% PBO | Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 0.00% | [2] |
Other | >0% PBO | Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset Allocation | 20.00% | [2] |
[1] | Includes (but not limited to) High Yield Bond Fund and Emerging Markets Debt funds. | |
[2] | Other category may include cash, alternatives, and/or other investment strategies that may be classified other than equity or fixed income, such as the Dynamic Asset Allocation fund. |
Recovered_Sheet16
Pension Plan and Other Postretirement Benefits - Pension Plan Asset Allocations by Asset Category (Details 10) (Pension Plan) | Dec. 31, 2014 | Dec. 31, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 100.00% | 100.00% |
Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 53.30% | 56.40% |
Large Capitalization Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 21.00% | 21.00% |
International Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 18.90% | 21.70% |
Small and Mid-Capitalization Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 7.90% | 8.50% |
SEI Dynamic Asset Allocation Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 5.50% | 5.20% |
Fixed-Income Securities and Cash | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 42.70% | 39.30% |
Other - SEI Special Situation Collective Investment Trust | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Actual Plan Asset Allocations | 4.00% | 4.30% |
Recovered_Sheet17
Pension Plan and Other Postretirement Benefits - Pension Fund Assets Measured at Fair Value (Details 11) (Pension Plan, USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | $244,589 | $213,617 | $191,018 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 234,788 | 204,447 | |
Level 1 | Large Capitalization Equity Securities Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 51,404 | 44,882 | |
Level 1 | International Equity Securities Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 46,287 | 46,412 | |
Level 1 | Small and Mid-Capitalization Equity Securities Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 19,189 | 18,151 | |
Level 1 | SEI Dynamic Asset Allocation Mutual Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 13,543 | 11,159 | |
Level 1 | Fixed Income Securities Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 104,360 | 83,843 | |
Level 1 | Cash Management - Money Market Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 5 | ||
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 9,801 | 9,170 | |
Level 2 | SEI Special Situation Collective Investment Trust Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets | 9,801 | 9,170 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Total Assets |
Recovered_Sheet18
Pension Plan and Other Postretirement Benefits - Healthcare Cost-Trend Rates (Details 12) (Other Postretirement Benefits) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Rate at Which the Cost-Trend Rate is Assumed to Decline | 5.00% | 5.00% |
Year the Rate Reaches the Ultimate Trend Rate | 2025 | 2025 |
Pre-65 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Healthcare Cost-Trend Rate Assumed for Next Year | 6.32% | 6.47% |
Post-65 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Healthcare Cost-Trend Rate Assumed for Next Year | 6.63% | 6.82% |
Recovered_Sheet19
Pension Plan and Other Postretirement Benefits - Effects of One Percentage Change in Assumed healthcare Cost-Trend Rates (Details 13) (Other Postretirement Benefits, USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Other Postretirement Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
Effect of 1 point increase on the Postretirement Benefit Obligation | $7,442 |
Effect of 1 point increase on Total of Service and Interest Cost | 516 |
Effect of 1 point increase on Expense | 516 |
Effect of 1 point decrease on the Postretirement Benefit Obligation | -6,088 |
Effect of 1 point decrease on Total of Service and Interest Cost | -414 |
Effect of 1 point decrease on Expense | ($606) |
Recovered_Sheet20
Pension Plan and Other Postretirement Benefits (Detail Textuals) (USD $) | 12 Months Ended | 1 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2015 | Jan. 31, 1993 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Contributions made to 401K plan by the companies | $3,171,000 | $2,748,000 | $2,283,000 | ||
Contributions made by the company to employee stock ownership plan | 696,000 | 705,000 | 735,000 | ||
Pension Plan | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan, vesting percentage | 100.00% | ||||
Defined benefit plan vesting period | 5 years | ||||
Assumed rate of return on pension fund assets for the determination of 2015 net periodic pension cost | 7.75% | ||||
Plan contribution | 20,000,000 | 10,000,000 | |||
Pension Plan | Subsequent Event | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan contribution | 10,000,000 | ||||
Executive Survivor and Supplemental Retirement Plan (ESSRP) | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan contribution | 1,113,000 | 1,137,000 | |||
Period of benefit payments to the beneficiaries on their deaths | 15 years | ||||
Other Postretirement Benefits | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Plan contribution | 2,320,000 | 2,012,000 | |||
Health insurance benefits, requisite age | 55 years | ||||
Health insurance benefits, requisite service period | 10 years | ||||
Estimated future employer contributions in the next fiscal year | 2,600,000 | ||||
Medicare part D subsidy expected to received in 2015 | 456,000 | ||||
Other Postretirement Benefits Transition Obligation | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Benefit obligation liability recognized | $14,964,000 | ||||
Benefits earned recognition period | 20 years |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments - Long-term debt including current maturities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | $2,007 | |
Short-Term Debt | -10,854 | -51,195 |
Long-Term Debt including Current Maturities | -498,690 | -389,777 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and Cash Equivalents | 2,007 | |
Short-Term Debt | -10,854 | -51,195 |
Long-Term Debt including Current Maturities | ($600,828) | ($427,796) |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Detail Textuals) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Otter Tail Corporation Credit Agreement | ||
Fair Value Of Financial Instruments [Line Items] | ||
Line of credit facility, description of variable rate basis | LIBOR | |
Basis spread on variable rate | 1.75% | |
OTP Credit Agreement | ||
Fair Value Of Financial Instruments [Line Items] | ||
Line of credit facility, description of variable rate basis | LIBOR | |
Basis spread on variable rate | 1.25% |
Property_Plant_and_Equipment_D
Property, Plant and Equipment (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ||
Total Gross Plant | $1,968,948 | $1,819,271 |
Less Accumulated Depreciation and Amortization | 700,418 | 663,581 |
Net Plant | 1,268,530 | 1,155,690 |
Electric Plant | ||
Property, Plant and Equipment [Line Items] | ||
Total Gross Plant | 1,785,282 | 1,645,664 |
Less Accumulated Depreciation and Amortization | 584,956 | 554,818 |
Net Plant | 1,200,326 | 1,090,846 |
Electric Plant | Production Plant | ||
Property, Plant and Equipment [Line Items] | ||
Total Gross Plant | 690,024 | 679,067 |
Electric Plant | Transmission Plant | ||
Property, Plant and Equipment [Line Items] | ||
Total Gross Plant | 323,496 | 270,606 |
Electric Plant | Distribution Plant | ||
Property, Plant and Equipment [Line Items] | ||
Total Gross Plant | 438,489 | 421,803 |
Electric Plant | General Plant | ||
Property, Plant and Equipment [Line Items] | ||
Total Gross Plant | 93,103 | 89,408 |
Electric Plant | Electric Plant In Service | ||
Property, Plant and Equipment [Line Items] | ||
Total Gross Plant | 1,545,112 | 1,460,884 |
Electric Plant | Construction In Progress | ||
Property, Plant and Equipment [Line Items] | ||
Total Gross Plant | 240,170 | 184,780 |
Nonelectric Plant | ||
Property, Plant and Equipment [Line Items] | ||
Total Gross Plant | 183,666 | 173,607 |
Less Accumulated Depreciation and Amortization | 115,462 | 108,763 |
Net Plant | 68,204 | 64,844 |
Nonelectric Plant | Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total Gross Plant | 135,007 | 131,075 |
Nonelectric Plant | Buildings And Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total Gross Plant | 36,558 | 36,420 |
Nonelectric Plant | Land | ||
Property, Plant and Equipment [Line Items] | ||
Total Gross Plant | 3,594 | 3,430 |
Nonelectric Plant | Nonelectric Operations Plant | ||
Property, Plant and Equipment [Line Items] | ||
Total Gross Plant | 175,159 | 170,925 |
Nonelectric Plant | Construction In Progress | ||
Property, Plant and Equipment [Line Items] | ||
Total Gross Plant | $8,507 | $2,682 |
Property_Plant_and_Equipment_E
Property, Plant and Equipment - Estimated Service Lives for Properties (Details 1) | 12 Months Ended |
Dec. 31, 2014 | |
Electric Plant | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Electric Plant | Minimum | Production Plant | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 34 years |
Electric Plant | Minimum | Transmission Plant | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Electric Plant | Minimum | Distribution Plant | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Electric Plant | Minimum | General Plant | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Electric Plant | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 70 years |
Electric Plant | Maximum | Production Plant | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 62 years |
Electric Plant | Maximum | Transmission Plant | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 55 years |
Electric Plant | Maximum | Distribution Plant | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 55 years |
Electric Plant | Maximum | General Plant | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 70 years |
Nonelectric Plant | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Nonelectric Plant | Minimum | Equipment | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Nonelectric Plant | Minimum | Buildings And Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 7 years |
Nonelectric Plant | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Nonelectric Plant | Maximum | Equipment | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 12 years |
Nonelectric Plant | Maximum | Buildings And Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Property_Plant_and_Equipment_D1
Property, Plant and Equipment (Detail Textuals) | 12 Months Ended |
Dec. 31, 2014 | |
Electric Plant | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 70 years |
Electric Plant | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Nonelectric Plant | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 40 years |
Nonelectric Plant | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Income_Taxes_Income_Tax_Expens
Income Taxes - Income Tax Expense (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Tax Computed at Federal Statutory Rate - Continuing Operations | $25,704 | $21,389 | $18,622 |
Increases (Decreases) in Tax from: | |||
Federal PTCs | -7,517 | -6,612 | -6,695 |
State Income Taxes Net of Federal Income Tax Expense (Benefit) | 1,993 | 1,561 | -249 |
Section 199 Domestic Production Activities Deduction | -1,026 | ||
North Dakota Wind Tax Credit Amortization - Net of Federal Taxes | -849 | -863 | -891 |
Dividend Received/Paid Deduction | -622 | -632 | -656 |
Investment Tax Credit Amortization | -597 | -597 | -720 |
Allowance for Funds Used During Construction - Equity | -505 | -638 | -409 |
Corporate Owned Life Insurance | -354 | -856 | -585 |
Tax Depreciation - Treasury Grant for Wind Farms | -152 | -304 | -304 |
Differences Reversing in Excess of Federal Rates | -106 | -100 | -143 |
Impact of Medicare Part D Change | -584 | ||
Permanent and Other Differences | 588 | 168 | -213 |
Total Income Tax Expense - Continuing Operations | 16,557 | 12,516 | 7,173 |
Income Tax Expense (Benefit) - Discontinued Operations - U.S. | 3,952 | 1,042 | -19,707 |
Income Tax Expense (Benefit) - Continuing and Discontinued Operations | 20,509 | 13,558 | -12,534 |
Overall Effective Federal, State and Foreign Income Tax Rate | 26.20% | 21.00% | 70.40% |
Income Tax Expense From Continuing Operations Includes the Following: | |||
Current Federal Income Taxes | 124 | 146 | -3,198 |
Current State Income Taxes | 5 | 37 | -361 |
Deferred Federal Income Taxes | 21,044 | 17,488 | 15,877 |
Deferred State Income Taxes | 4,347 | 2,917 | 3,161 |
Federal PTCs | -7,517 | -6,612 | -6,695 |
North Dakota Wind Tax Credit Amortization - Net of Federal Taxes | -849 | -863 | -891 |
Investment Tax Credit Amortization | -597 | -597 | -720 |
Total | 16,557 | 12,516 | 7,173 |
Income (Loss) Before Income Taxes - U.S. | 78,232 | 63,924 | -13,426 |
Income (Loss) Before Income Taxes - Foreign (Discontinued Operations) | 499 | -4,381 | |
Total Income (Loss) Before Income Taxes - Continuing and Discontinued Operations | $78,232 | $64,423 | ($17,807) |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets and Liabilities (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred Tax Assets | ||
Retirement Benefits Liabilities | $42,706 | $39,524 |
Benefit Liabilities | 42,479 | 39,480 |
North Dakota Wind Tax Credits | 41,783 | 42,241 |
Federal PTCs | 30,189 | 33,620 |
Cost of Removal | 29,089 | 27,926 |
Differences Related to Property | 10,505 | 9,462 |
Net Operating Loss Carryforward | 7,842 | 15,151 |
Vacation Accrual | 2,154 | 1,843 |
Investment Tax Credits | 1,549 | 1,960 |
Other | 1,915 | 4,045 |
Total Deferred Tax Assets | 210,211 | 215,252 |
Deferred Tax Liabilities | ||
Differences Related to Property | -313,959 | -302,852 |
Retirement Benefits Regulatory Asset | -42,706 | -39,524 |
Excess Tax over Book Pension | -12,928 | -6,977 |
North Dakota Wind Tax Credits | -11,543 | -11,543 |
Impact of State Net Operating Losses on Federal Taxes | -2,745 | -3,088 |
Regulatory Asset | -2,087 | -1,805 |
Other | -5,571 | -6,360 |
Total Deferred Tax Liabilities | -391,539 | -372,149 |
Deferred Income Taxes | ($181,328) | ($156,897) |
Income_Taxes_Expiration_of_Tax
Income Taxes - Expiration of Tax Net Operating Losses and Tax Credits Available (Details 2) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Federal Tax Credits | |
Tax Credit Carryforward [Abstract] | |
Tax Credits, Amount | $31,913 |
Tax Credits, Year of Expiration 2015 | |
Tax Credits, Year of Expiration 2016 | |
Tax Credits, Year of Expiration 2017 | |
Tax Credits, Year of Expiration 2024-33 | 31,913 |
State Tax Credits | |
Tax Credit Carryforward [Abstract] | |
Tax Credits, Amount | 38,654 |
Tax Credits, Year of Expiration 2015 | 2,339 |
Tax Credits, Year of Expiration 2016 | 2,339 |
Tax Credits, Year of Expiration 2017 | 389 |
Tax Credits, Year of Expiration 2024-33 | 33,587 |
State Net Operating Losses | |
Net Operating Loss Carryforward [Abstract] | |
Net Operating Losses, Amount | 5,829 |
Net Operating Losses, Year of Expiration 2015 | |
Net Operating Losses, Year of Expiration 2016 | |
Net Operating Losses, Year of Expiration 2017 | |
Net Operating Losses, Year of Expiration 2024-33 | $5,829 |
Income_Taxes_Summary_of_Activi
Income Taxes - Summary of Activity Related to Unrecognized Tax benefit (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance on January 1 | $4,239 | $4,436 | $12,138 |
Increases Related to Tax Positions for Prior Years | 120 | 98 | |
Decreases Related to Tax Positions for Prior Years | -4,142 | -295 | -6,802 |
Increases Related to Tax Positions for Current Year | 5 | ||
Uncertain Positions Resolved During Year | -900 | ||
Balance on December 31 | $222 | $4,239 | $4,436 |
Income_Taxes_Detail_Textuals
Income Taxes (Detail Textuals) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||
Federal income tax rate | 35.00% | 35.00% | 35.00% |
Carryforward period on a portion of the North Dakota wind tax credits from the Langdon wind project | 5 years | ||
Adjustment of deferred tax assets and deferred tax credits for unused North Dakota wind tax credits from Langdon wind project | $5.10 | ||
Period for unrecognized tax benefits not expected change | 12 months | ||
Increase in percentage of production tax credits | 13.80% | ||
Wind tax credits amortization period | 25 years |
Asset_Retirement_Obligations_R
Asset Retirement Obligations - Reconciliations of Carrying Amounts of Present Value of Legal AROs, Capitalized Asset Retirement Costs and Related Accumulated Depreciation and Summary of Settlement Activity (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Asset Retirement Obligations | ||
Beginning Balance | $5,661 | $5,207 |
New Obligations Recognized | ||
Adjustments Due to Revisions in Cash Flow Estimates | 1,582 | |
Accrued Accretion | 478 | 454 |
Settlements | ||
Ending Balance | 7,721 | 5,661 |
Asset Retirement Costs Capitalized | ||
Beginning Balance | 1,477 | 1,477 |
New Obligations Recognized | ||
Adjustments Due to Revisions in Cash Flow Estimates | 1,582 | |
Settlements | ||
Ending Balance | 3,059 | 1,477 |
Accumulated Depreciation - Asset Retirement Costs Capitalized | ||
Beginning Balance | 462 | 407 |
New Obligations Recognized | ||
Adjustments Due to Revisions in Cash Flow Estimates | ||
Depreciation Expense | 65 | 55 |
Settlements | ||
Ending Balance | 527 | 462 |
Settlements | ||
Original Capitalized Asset Retirement Cost - Retired | ||
Accumulated Depreciation | ||
Asset Retirement Obligation | ||
Settlement Cost | ||
Gain on Settlement - Deferred Under Regulatory Accounting |
Asset_Retirement_Obligations_D
Asset Retirement Obligations (Detail Textuals) (North Dakota) | Dec. 31, 2014 |
Turbine | |
North Dakota | |
Asset Retirement Obligations [Line Items] | |
Number of wind turbines | 92 |
Discontinued_Operations_Result
Discontinued Operations - Results of Discontinued Operations (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Operating Revenues | $149,860 | $151,915 | $382,136 |
Operating Expenses | 140,002 | 149,287 | 394,879 |
Asset Impairment Charge | 5,605 | 53,320 | |
Interest Expense | 4 | 177 | |
Other (Deductions) Income | 539 | 473 | 441 |
Income Tax (Benefit) Expense | 3,952 | 1,037 | -20,023 |
Net Gain (Loss) | 840 | 2,060 | -45,776 |
(Loss) Gain on Disposition Before Taxes | 216 | -5,216 | |
Income Tax Expense (Benefit) on Disposition | 6 | 315 | |
Net Gain (Loss) on Disposition | 210 | -5,531 | |
Net Gain (Loss) from Discontinued Operations | 840 | 2,270 | -51,307 |
Foley | Disposal Group, Held-for-sale or Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Operating Revenues | 105,333 | 110,097 | 93,598 |
Operating Expenses | 100,826 | 109,036 | 109,493 |
Asset Impairment Charge | 5,605 | ||
Interest Expense | 510 | 249 | 689 |
Other (Deductions) Income | -38 | 4 | |
Income Tax (Benefit) Expense | 1,388 | 331 | -6,630 |
Net Gain (Loss) | -3,034 | 485 | -9,954 |
(Loss) Gain on Disposition Before Taxes | |||
Income Tax Expense (Benefit) on Disposition | |||
Net Gain (Loss) on Disposition | |||
Net Gain (Loss) from Discontinued Operations | 485 | -9,954 | |
Aevenia | Disposal Group, Held-for-sale or Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Operating Revenues | 44,527 | 39,813 | 55,494 |
Operating Expenses | 40,297 | 38,257 | 51,873 |
Asset Impairment Charge | |||
Interest Expense | 184 | 207 | 351 |
Other (Deductions) Income | 304 | -5 | 169 |
Income Tax (Benefit) Expense | 1,729 | 518 | 1,174 |
Net Gain (Loss) | 2,621 | 826 | 2,265 |
(Loss) Gain on Disposition Before Taxes | |||
Income Tax Expense (Benefit) on Disposition | |||
Net Gain (Loss) on Disposition | |||
Net Gain (Loss) from Discontinued Operations | 826 | 2,265 | |
IMD | Disposal Group, Held-for-sale or Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Operating Revenues | 186,151 | ||
Operating Expenses | 19 | -988 | 184,462 |
Asset Impairment Charge | 45,573 | ||
Interest Expense | 5,787 | ||
Other (Deductions) Income | 412 | 135 | |
Income Tax (Benefit) Expense | -8 | 370 | -15,792 |
Net Gain (Loss) | -11 | 1,030 | -33,744 |
(Loss) Gain on Disposition Before Taxes | |||
Income Tax Expense (Benefit) on Disposition | |||
Net Gain (Loss) on Disposition | |||
Net Gain (Loss) from Discontinued Operations | 1,030 | -33,744 | |
Wylie | Disposal Group, Held-for-sale or Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Operating Revenues | |||
Operating Expenses | 640 | 179 | |
Asset Impairment Charge | |||
Interest Expense | |||
Other (Deductions) Income | |||
Income Tax (Benefit) Expense | -256 | 13 | |
Net Gain (Loss) | -384 | -192 | |
(Loss) Gain on Disposition Before Taxes | -62 | ||
Income Tax Expense (Benefit) on Disposition | 460 | ||
Net Gain (Loss) on Disposition | -522 | ||
Net Gain (Loss) from Discontinued Operations | -384 | -714 | |
Shrco | Disposal Group, Held-for-sale or Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Operating Revenues | 2,016 | 32,563 | |
Operating Expenses | -180 | 2,622 | 36,163 |
Asset Impairment Charge | 7,747 | ||
Interest Expense | 1,553 | ||
Other (Deductions) Income | 277 | 67 | 15 |
Income Tax (Benefit) Expense | 183 | -213 | -4,021 |
Net Gain (Loss) | 274 | -326 | -8,864 |
(Loss) Gain on Disposition Before Taxes | 16 | ||
Income Tax Expense (Benefit) on Disposition | 6 | ||
Net Gain (Loss) on Disposition | 10 | ||
Net Gain (Loss) from Discontinued Operations | -316 | -8,864 | |
DMS | Disposal Group, Held-for-sale or Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Operating Revenues | 16,362 | ||
Operating Expenses | -269 | 14,741 | |
Asset Impairment Charge | |||
Interest Expense | 279 | ||
Other (Deductions) Income | 122 | ||
Income Tax (Benefit) Expense | 108 | 1,734 | |
Net Gain (Loss) | 161 | -270 | |
(Loss) Gain on Disposition Before Taxes | 200 | -5,154 | |
Income Tax Expense (Benefit) on Disposition | -145 | ||
Net Gain (Loss) on Disposition | 200 | -5,009 | |
Net Gain (Loss) from Discontinued Operations | 361 | -5,279 | |
IPH | Disposal Group, Held-for-sale or Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Operating Revenues | |||
Operating Expenses | |||
Asset Impairment Charge | |||
Interest Expense | |||
Other (Deductions) Income | |||
Income Tax (Benefit) Expense | 106 | ||
Net Gain (Loss) | -106 | ||
(Loss) Gain on Disposition Before Taxes | |||
Income Tax Expense (Benefit) on Disposition | |||
Net Gain (Loss) on Disposition | |||
Net Gain (Loss) from Discontinued Operations | -106 | ||
Intercompany Transactions Adjustment | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Operating Revenues | -11 | -2,032 | |
Operating Expenses | -960 | -11 | -2,032 |
Asset Impairment Charge | |||
Interest Expense | -694 | -452 | -8,482 |
Other (Deductions) Income | -4 | -5 | |
Income Tax (Benefit) Expense | 660 | 179 | 3,393 |
Net Gain (Loss) | 990 | 268 | 5,089 |
(Loss) Gain on Disposition Before Taxes | |||
Income Tax Expense (Benefit) on Disposition | |||
Net Gain (Loss) on Disposition | |||
Net Gain (Loss) from Discontinued Operations | $268 | $5,089 |
Discontinued_Operations_Major_
Discontinued Operations - Major Components of Assets and Liabilities of Discontinued Operations (Details 1) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Current Assets | $35,174 | $29,569 |
Goodwill and Intangibles | 2,814 | 8,583 |
Net Plant | 10,669 | 11,326 |
Assets of Discontinued Operations | 48,657 | 49,478 |
Current Liabilities | 22,864 | 35,902 |
Deferred Income Taxes | 4,695 | 3,381 |
Liabilities of Discontinued Operations | 27,559 | 39,283 |
Foley | Disposal Group, Held-for-sale or Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Current Assets | 29,897 | 21,408 |
Goodwill and Intangibles | 2,814 | 8,420 |
Net Plant | 4,445 | 5,225 |
Assets of Discontinued Operations | 37,156 | 35,053 |
Current Liabilities | 17,114 | 29,766 |
Deferred Income Taxes | 2,065 | 1,892 |
Liabilities of Discontinued Operations | 19,179 | 31,658 |
Aevenia | Disposal Group, Held-for-sale or Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Current Assets | 5,277 | 8,123 |
Goodwill and Intangibles | 163 | |
Net Plant | 6,224 | 6,101 |
Assets of Discontinued Operations | 11,501 | 14,387 |
Current Liabilities | 2,916 | 2,499 |
Deferred Income Taxes | 2,630 | 1,489 |
Liabilities of Discontinued Operations | 5,546 | 3,988 |
IMD | Disposal Group, Held-for-sale or Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Current Assets | ||
Goodwill and Intangibles | ||
Net Plant | ||
Assets of Discontinued Operations | ||
Current Liabilities | 1,840 | 2,196 |
Deferred Income Taxes | ||
Liabilities of Discontinued Operations | 1,840 | 2,196 |
Shrco | Disposal Group, Held-for-sale or Disposed of by Sale | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Current Assets | 38 | |
Goodwill and Intangibles | ||
Net Plant | ||
Assets of Discontinued Operations | 38 | |
Current Liabilities | 994 | 1,441 |
Deferred Income Taxes | ||
Liabilities of Discontinued Operations | $994 | $1,441 |
Discontinued_Operations_Warran
Discontinued Operations - Warranty Reserves (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Discontinued Operations and Disposal Groups [Abstract] | ||
Warranty Reserve Balance, Beginning of Year | $3,087 | $5,027 |
Provision for Warranties Issued During the Year | 188 | |
Less Settlements Made During the Year | -372 | -715 |
Decrease in Warranty Estimates for Prior Years | -188 | -1,413 |
Warranty Reserve Balance, End of Year | $2,527 | $3,087 |
Discontinued_Operations_Detail
Discontinued Operations (Detail Textuals) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | ||||||
Dec. 31, 2013 | Dec. 31, 2012 | Feb. 08, 2013 | Jun. 30, 2013 | Nov. 30, 2012 | 6-May-11 | Dec. 29, 2011 | Jan. 18, 2012 | Feb. 28, 2013 | Feb. 29, 2012 | Mar. 31, 2013 | Dec. 31, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Proceeds from sale of business | $12,842,000 | $42,229,000 | ||||||||||
Disposal Group, Held-for-sale or Disposed of by Sale | Shrco | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Proceeds from sale of business | 13,000,000 | |||||||||||
Amount of working capital true up received | 2,400,000 | |||||||||||
Disposal Group, Held-for-sale or Disposed of by Sale | IMD | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Proceeds from sale of business | 18,100,000 | |||||||||||
Disposal Group, Held-for-sale or Disposed of by Sale | IPH | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Proceeds from sale of business | 86,000,000 | |||||||||||
Disposal Group, Held-for-sale or Disposed of by Sale | Wylie | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Proceeds from sale of business | 25,000,000 | |||||||||||
Disposal Group, Held-for-sale or Disposed of by Sale | Aviva | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Proceeds from sale of business | 300,000 | |||||||||||
Disposal Group, Held-for-sale or Disposed of by Sale | DMS | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Proceeds from sale of business | 24,000,000 | |||||||||||
Amount of working capital settlement paid | 1,700,000 | |||||||||||
Value of working capital settlement paid | 1,900,000 | |||||||||||
Gain on working capital settlement | 200,000 | |||||||||||
Disposal Group, Held-for-sale or Disposed of by Sale | Foley and Aevenia | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Commitments under operating lease obligations | $1,900,000 |
Subsequent_Events_Summary_of_s
Subsequent Events - Summary of stock incentive awards to executive officers under the 2014 Stock Incentive Plan (Details) (Subsequent Event, 2014 Stock Incentive Plan, Executive Officers, USD $) | 12 Months Ended |
Feb. 06, 2015 | |
Restricted Stock Units (RSU) | 25% per year through February 6, 2019 | |
Subsequent Event [Line Items] | |
Shares/Units Granted | 20,900 |
Weighted Average Grant-Date Fair Value per Award | $31.68 |
Vesting percentage | 25.00% |
Vesting date | 6-Feb-19 |
Restricted Stock Units (RSU) | 100% on February 6, 2020 | |
Subsequent Event [Line Items] | |
Shares/Units Granted | 6,400 |
Weighted Average Grant-Date Fair Value per Award | $31.68 |
Vesting percentage | 100.00% |
Vesting date | 6-Feb-20 |
Stock Performance Awards | December 31, 2017 | |
Subsequent Event [Line Items] | |
Shares/Units Granted | 77,500 |
Weighted Average Grant-Date Fair Value per Award | $26.99 |
Vesting date | 31-Dec-17 |
Subsequent_Events_Detail_Textu
Subsequent Events (Detail Textuals) (2014 Stock Incentive Plan) | 12 Months Ended | |
Feb. 06, 2015 | Dec. 31, 2014 | |
Subsequent Event [Line Items] | ||
Target number of shares awarded | 1,900,000 | |
Subsequent Event | Stock Performance Awards | ||
Subsequent Event [Line Items] | ||
Number of trading days | 20 days | |
Period specified for average adjusted return | 3 years | |
Subsequent Event | Executive Officers | Stock Performance Awards | ||
Subsequent Event [Line Items] | ||
Target number of shares awarded | 77,500 | |
Maximum number of common shares authorized for payment | 116,250 | |
Subsequent Event | Executive Officers | Stock Performance Awards | Minimum | ||
Subsequent Event [Line Items] | ||
Actual payment percentage of target amount | 0.00% | |
Subsequent Event | Executive Officers | Stock Performance Awards | Maximum | ||
Subsequent Event [Line Items] | ||
Actual payment percentage of target amount | 150.00% | |
Subsequent Event | Executive Officers | Stock Performance Awards | Performance Target One | ||
Subsequent Event [Line Items] | ||
Target number of shares awarded | 51,667 | |
Basis for achieving performance target, description | Based on the Company's total shareholder return relative to the total shareholder return of the companies that comprise the Edison Electric Institute Index over the performance measurement period of January 1, 2015 through December 31, 2017, with the beginning and ending share values based on the average closing price of a share of the Company's common stock for the 20 trading days immediately following January 1, 2015 and the average closing price for the 20 trading days immediately preceding January 1, 2018. | |
Subsequent Event | Executive Officers | Stock Performance Awards | Performance Target Two | ||
Subsequent Event [Line Items] | ||
Target number of shares awarded | 25,833 | |
Basis for achieving performance target, description | Achieving the target set for the Company's 3-year average adjusted return on equity |
Subsequent_Events_Detail_Textu1
Subsequent Events (Detail Textuals 1) (Subsequent Event, Aevenia, USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Feb. 24, 2015 |
Subsequent Event | Aevenia | |
Subsequent Event [Line Items] | |
Proceeds from sale of Aevenia before working capital and other adjustments | $25 |
Consideration for sale of business, description | agreement to sell Aevenia for $25 million in cash plus adjustments for working capital and final assets to be determined within 90 days of closing |
SCHEDULE_1_Condensed_Balance_S
SCHEDULE 1 Condensed Balance Sheets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Current Assets | ||||
Cash and Cash Equivalents | $2,007 | $54,749 | $18,168 | |
Deferred Income Taxes | 49,482 | 35,325 | ||
Other | 7,187 | 7,581 | ||
Total Current Assets | 307,149 | 270,499 | ||
Investments in Subsidiaries | 8,582 | 9,362 | ||
Other Assets | 30,111 | 28,834 | ||
Total Assets | 1,791,279 | 1,596,019 | 1,602,337 | |
Current Liabilities | ||||
Other | 8,793 | 6,532 | ||
Total Current Liabilities | 201,699 | 236,273 | ||
Other Noncurrent Liabilities | 26,794 | 25,209 | ||
Commitments and Contingencies | ||||
Capitalization | ||||
Long-Term Debt, Net of Current Maturities | 498,489 | 389,589 | ||
Common Shareholder Equity | 186,090 | 181,358 | ||
Total Capitalization | 1,071,255 | 924,419 | ||
Total Liabilities and Equity | 1,791,279 | 1,596,019 | ||
OTTER TAIL CORPORATION (PARENT COMPANY) | ||||
Current Assets | ||||
Cash and Cash Equivalents | 7,907 | 44,802 | 7,062 | |
Accounts Receivable from Subsidiaries | 4,651 | 1,736 | ||
Interest Receivable from Subsidiaries | 191 | 192 | ||
Notes Receivable from Subsidiaries | 13,553 | 5,703 | ||
Deferred Income Taxes | 13,895 | 28,853 | ||
Other | 1,105 | 947 | ||
Total Current Assets | 33,395 | 45,338 | ||
Investments in Subsidiaries | 605,242 | 541,291 | ||
Notes Receivable from Subsidiaries | 52,060 | 52,249 | ||
Deferred Income Taxes | 36,632 | 25,861 | ||
Other Assets | 27,365 | 25,456 | ||
Total Assets | 754,694 | 690,195 | ||
Current Liabilities | ||||
Accounts Payable to Subsidiaries | 5,990 | 5,961 | ||
Notes Payable to Subsidiaries | 67,218 | 62,562 | ||
Other | 18,371 | 5,122 | ||
Total Current Liabilities | 91,579 | 73,645 | ||
Other Noncurrent Liabilities | 36,860 | 28,031 | ||
Commitments and Contingencies | ||||
Capitalization | ||||
Long-Term Debt, Net of Current Maturities | 53,489 | 53,689 | ||
Common Shareholder Equity | 572,766 | 534,830 | ||
Total Capitalization | 626,255 | 588,519 | ||
Total Liabilities and Equity | $754,694 | $690,195 |
SCHEDULE_1_Condensed_Statement
SCHEDULE 1 Condensed Statements of Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Loss | |||
Revenue | $799,262 | $743,414 | $710,165 |
Operating Expenses | 699,731 | 649,177 | 615,864 |
Operating Loss | 99,531 | 94,237 | 94,301 |
Other Income (Expense) | |||
Loss on Early Retirement of Debt | -10,252 | -13,106 | |
Interest Charges | -29,648 | -26,974 | -31,903 |
Other Income | 3,557 | 4,100 | 3,915 |
Income Before Income Taxes - Continuing Operations | 73,440 | 61,111 | 53,207 |
Income Tax Benefit | 16,557 | 12,516 | 7,173 |
Net Income (Loss) from Continuing Operations | 56,883 | 48,595 | 46,034 |
Net Income (Loss) from Discontinued Operations | 840 | 2,270 | -51,307 |
Total Net Income (Loss) | 57,723 | 50,865 | -5,273 |
Income (Loss) Available for Common Shares | 57,723 | 50,352 | -6,009 |
OTTER TAIL CORPORATION (PARENT COMPANY) | |||
Operating Loss | |||
Revenue | |||
Operating Expenses | 12,593 | 14,150 | 15,197 |
Operating Loss | -12,593 | -14,150 | -15,197 |
Other Income (Expense) | |||
Equity Income in Earnings of Subsidiaries | 64,926 | 66,468 | 8,430 |
Loss on Early Retirement of Debt | -10,252 | -13,106 | |
Interest Charges | -6,326 | -9,940 | -13,994 |
Interest Charges to Subsidiaries | -117 | -494 | -512 |
Interest Income from Subsidiaries | 4,980 | 5,318 | 15,700 |
Other Income | 1,379 | 1,413 | 1,426 |
Total Other Income (Expense) | 64,842 | 52,513 | -2,056 |
Income Before Income Taxes - Continuing Operations | 52,249 | 38,363 | -17,253 |
Income Tax Benefit | -5,474 | -12,502 | -11,980 |
Net Income (Loss) from Continuing Operations | 57,723 | 50,865 | -5,273 |
Net Income (Loss) from Discontinued Operations | |||
Total Net Income (Loss) | 57,723 | 50,865 | -5,273 |
Preferred Dividend Requirement and Other Adjustments | 513 | 736 | |
Income (Loss) Available for Common Shares | $57,723 | $50,352 | ($6,009) |
SCHEDULE_1_Condensed_Statement1
SCHEDULE 1 Condensed Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash Flows from Operating Activities | |||
Net Cash Provided by Operating Activities | $112,474 | $147,781 | $233,547 |
Cash Flows from Investing Activities | |||
(Investment in Subsidiaries) Return of Capital | 2,785 | 1,845 | 1,184 |
Net Cash (Used in) Provided by Investing Activities | -164,496 | -149,197 | -83,577 |
Cash Flows from Financing Activities | |||
Change in Checks Written in Excess of Cash | 1,236 | ||
Net Short-Term Borrowings | -40,341 | 51,195 | |
Proceeds from Issuance of Common Stock | 26,259 | 1,821 | |
Common Stock Issuance Expenses | -673 | -3 | -370 |
Payments for Retirement of Capital Stock | -590 | -15,723 | -111 |
Short-Term and Long-Term Debt Issuance Expenses | -856 | -522 | -897 |
Payments for Retirement of Long-Term Debt | -41,088 | -72,981 | -50,224 |
Premium Paid for Early Retirement of Long-Term Debt | -9,889 | -12,500 | |
Dividends Paid and Other Distributions | -44,261 | -43,818 | -43,976 |
Net Cash Used in Financing Activities | 50,864 | -49,020 | -112,356 |
Net Change in Cash and Cash Equivalents | -2,007 | -52,742 | 36,581 |
Cash and Cash Equivalents at Beginning of Period | 2,007 | 54,749 | 18,168 |
Cash and Cash Equivalents at End of Period | 2,007 | 54,749 | |
OTTER TAIL CORPORATION (PARENT COMPANY) | |||
Cash Flows from Operating Activities | |||
Net Cash Provided by Operating Activities | 47,697 | 70,376 | 43,904 |
Cash Flows from Investing Activities | |||
(Investment in Subsidiaries) Return of Capital | -44,000 | 150,381 | -137,726 |
Debt (Issued to) Repaid by Subsidiaries | -7,662 | -141,919 | 239,452 |
Cash Used in Investing Activities | -44 | -37 | -69 |
Net Cash (Used in) Provided by Investing Activities | -51,706 | 8,425 | 101,657 |
Cash Flows from Financing Activities | |||
Change in Checks Written in Excess of Cash | 215 | ||
Net Short-Term Borrowings | 10,854 | ||
Borrowings from Subsidiaries | 4,656 | ||
Proceeds from Issuance of Common Stock | 26,259 | 1,821 | |
Common Stock Issuance Expenses | -673 | -3 | -370 |
Payments for Retirement of Capital Stock | -590 | -15,723 | -111 |
Short-Term and Long-Term Debt Issuance Expenses | -170 | -238 | -700 |
Payments for Retirement of Long-Term Debt | -188 | -47,846 | -50,164 |
Premium Paid for Early Retirement of Long-Term Debt | -9,889 | -12,500 | |
Dividends Paid and Other Distributions | -44,261 | -43,818 | -43,976 |
Net Cash Used in Financing Activities | -3,898 | -115,696 | -107,821 |
Net Change in Cash and Cash Equivalents | -7,907 | -36,895 | 37,740 |
Cash and Cash Equivalents at Beginning of Period | 7,907 | 44,802 | 7,062 |
Cash and Cash Equivalents at End of Period | $7,907 | $44,802 |
SCHEDULE_1_Related_Party_Trans
SCHEDULE 1 Related Party Transactions (Details) (OTTER TAIL CORPORATION (PARENT COMPANY), USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Condensed Financial Statements, Captions [Line Items] | ||
Accounts Receivable | $4,651 | $1,736 |
Interest Receivable | 191 | 192 |
Current Notes Receivable | 13,553 | 5,703 |
Long-Term Notes Receivable | 52,060 | 52,249 |
Accounts Payable | 5,990 | 5,961 |
Current Notes Payable | 67,218 | 62,562 |
Otter Tail Power Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Accounts Receivable | 3,599 | 1,346 |
Interest Receivable | ||
Current Notes Receivable | ||
Long-Term Notes Receivable | ||
Accounts Payable | 42 | 11 |
Current Notes Payable | ||
Vinyltech Corporation | ||
Condensed Financial Statements, Captions [Line Items] | ||
Accounts Receivable | 2 | |
Interest Receivable | 32 | 32 |
Current Notes Receivable | ||
Long-Term Notes Receivable | 8,500 | 8,500 |
Accounts Payable | ||
Current Notes Payable | 13,995 | 17,285 |
Northern Pipe Products, Inc. | ||
Condensed Financial Statements, Captions [Line Items] | ||
Accounts Receivable | ||
Interest Receivable | 8 | 9 |
Current Notes Receivable | ||
Long-Term Notes Receivable | 3,360 | 3,549 |
Accounts Payable | ||
Current Notes Payable | 9,233 | 11,948 |
BTD Manufacturing, Inc. | ||
Condensed Financial Statements, Captions [Line Items] | ||
Accounts Receivable | 33 | 7 |
Interest Receivable | 107 | 107 |
Current Notes Receivable | ||
Long-Term Notes Receivable | 28,500 | 28,500 |
Accounts Payable | ||
Current Notes Payable | 55 | 3,985 |
IMD, Inc. | ||
Condensed Financial Statements, Captions [Line Items] | ||
Accounts Receivable | ||
Interest Receivable | ||
Current Notes Receivable | 1,602 | 1,266 |
Long-Term Notes Receivable | ||
Accounts Payable | ||
Current Notes Payable | ||
Shrco, Inc. | ||
Condensed Financial Statements, Captions [Line Items] | ||
Accounts Receivable | 2 | |
Interest Receivable | ||
Current Notes Receivable | 3,889 | |
Long-Term Notes Receivable | ||
Accounts Payable | ||
Current Notes Payable | 378 | |
T.O. Plastics, Inc. | ||
Condensed Financial Statements, Captions [Line Items] | ||
Accounts Receivable | ||
Interest Receivable | 28 | 28 |
Current Notes Receivable | ||
Long-Term Notes Receivable | 7,400 | 7,400 |
Accounts Payable | 1 | |
Current Notes Payable | 6,477 | 4,705 |
Aevenia, Inc | ||
Condensed Financial Statements, Captions [Line Items] | ||
Accounts Receivable | 86 | |
Interest Receivable | 7 | 7 |
Current Notes Receivable | 548 | |
Long-Term Notes Receivable | 1,800 | 1,800 |
Accounts Payable | 1 | |
Current Notes Payable | ||
Foley Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Accounts Receivable | 35 | 44 |
Interest Receivable | 9 | 9 |
Current Notes Receivable | 11,951 | |
Long-Term Notes Receivable | 2,500 | 2,500 |
Accounts Payable | ||
Current Notes Payable | 6,004 | 5,343 |
Varistar Corporation | ||
Condensed Financial Statements, Captions [Line Items] | ||
Accounts Receivable | 816 | |
Interest Receivable | ||
Current Notes Receivable | ||
Long-Term Notes Receivable | ||
Accounts Payable | 5,948 | 5,948 |
Current Notes Payable | 31,076 | 19,296 |
Otter Tail Assurance Limited | ||
Condensed Financial Statements, Captions [Line Items] | ||
Accounts Receivable | 80 | 337 |
Interest Receivable | ||
Current Notes Receivable | ||
Long-Term Notes Receivable | ||
Accounts Payable | ||
Current Notes Payable |
SCHEDULE_1_Dividends_Details
SCHEDULE 1 Dividends (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |||
Cash Dividends Paid to Parent by Subsidiaries | $44,261 | $91,693 | $43,018 |