In 1989 Otter Tail Power Company formed Mid-States Development to own and oversee its diversified businesses. Mid-States became Varistar in 1998. In 2001 the corporate name was changed to Otter Tail Corporation, with John Erickson as its president. Otter Tail Power Company became one of the sixteen operating companies within the corporation. John MacFarlane continued as chairman of the board of directors.
Change within the structure of the organization
In the early years of the decade, electric industry deregulation and retail choice seemed likely. Otter Tail Power Company functionally separated its energy supply, energy delivery, and energy services operations. Later, with the slowdown of electric industry deregulation, the company reintegrated the business units.
A major focus at this time involved evaluating role assignments to ensure strategically aligned resources. The company realigned division offices, implemented a virtual call center, and launched e-commerce self-service options. Doug Kjellerup was named the utility's new president until stroke prevented him from continuing in that role. Chuck MacFarlane was named president in 2003.
Change to the electric industry
Federal Energy Regulatory Commission rules required changes to high-voltage transmission systems. Midwest Independent Transmission System Operator, Inc. (MISO), authorized to oversee electric system reliability in the Midwest, began centrally dispatching electric generation across its 13-state territory in April 2005. Otter Tail Power Company spent two years preparing for the transition.
A proposal to build a new coal-fired power plant, Big Stone II, balances requirements for reliable and affordable electricity with concerns for a healthy environment and reduced carbon emissions.
Change in renewable energy focus
The Minnesota legislature established utility requirements for renewable energy in 2001 and again in 2007.
Along with two other utilities, Otter Tail Power Company helped erect North Dakota's largest wind farm in 2007. The Langdon Wind Energy Center is a 106-turbine facility with the capacity to generate 159 megawatts. Otter Tail Power Company owns 27 of the 1.5-megawatt turbines and purchases the electricity produced from another 13 turbines at the site, providing the power company a combined generating capacity of 60 megawatts. Otter Tail Power Company became part owner in an even larger project, the Ashtabula Wind Center in Barnes County, ND, in 2008.
Planning studies show more transmission will be necessary for renewable energy in the coming decade. Otter Tail Power Comapny, working with other utilities, is a participant in these high-voltage transmission projects. A high-voltage transmission line to link power suppliers in Minnesota, North Dakota, and Canada was completed in 2002. Another project, related to CapX 2020, is in progress.
One thing never changes
A constant amid all the change in the last decade is the company's unflinching commitment to integrity. Leaders and employees continue to follow the example of company founder Vernon Wright in this regard.