The  70s

Demand for electricity in Otter Tail Power Company's service area continued to grow at a rapid rate in the 1970s. Kilowatt-hour sales increased at an average of ten percent a year, which included sales to other power suppliers. That load growth was driven by a significant increase in total electric homes and commercial buildings and the addition of some large industrial customers. The pipeline pumping stations in northern Minnesota and a barley malting plant at Spiritwood, North Dakota wer the two largest customers.

The decade of the 1970s was a period of rapid inflation in the nation's economy. Some years it soared into double digits. From 1970 to 1979 wages and prices more than doubled. That forced the company to apply for large rate increases, which were not always granted in full. Inflation increased construction costs and the new Coyote Generating Station was a good example. Completed in 1981 it was a twin to the Big Stone Plant, which was completed in 1975, but it cost more than 2 ½ times as much.

To avoid building expensive new power plants and transmission lines Otter Tail Power Company began an extensive load-management program. The objective was to shave peak loads by removing interruptible loads, such as water heating and space heating, from the system during peak-load periods. The company did that with radio receiver switches. Space heating customers were encouraged to install heat-storage systems or dual-fuel systems that used oil or gas for fuel in cold weather. If they complied and agreed to being interrupted the company rewarded them with a lower rate.

In 1972 MAPP changed its name from Mid-Continent Area Power Planners to Mid-Continent Area Power Pool as it became a power pool instead of a planning organization. Otter Tail Power Company did not join the new organization immediately because of legal concerns. Those concerns eventually were resolved and the company became a member of the new MAPP in 1979.

In 1970 government contractors moved in to install an anti-ballistic missile complex in northeastern North Dakota. The complex was designed to intercept and destroy incoming enemy missiles. That project brought 1,300 workers and their families to the area. The population of Langdon, the only large town near the complex, increased from 2,200 to 5,000 almost overnight. The contractor provided temporary housing but the city had to expand its school system and municipal services to accommodate those workers. In 1975 congress voted to close down the anti-ballistic missile complex and all those workers left. Otter Tail Power Company lost a lot of customers.

The company was looking for opportunities to diversify into businesses outside the utility field. One such opportunity came in 1970 when the company was able to purchase Ord Corporation, a manufacturer of mobile homes in Pelican Rapids, Minnesota. The timing was bad, however. Inflation drove interest rates so high that prospective buyers couldn't afford the financing. After several years of losses, the company sold Ord Corporation in 1975 for less than the original purchase price.

In 1973 Otter Tail Power Company sold its interest in the Fergus Falls Holiday Inn for a profit. Up to that time diversification had not been successful.

The 1970s brought new opportunities for the company's female employees who were encouraged to apply for positions that traditionally had been held by men.

In 1979 the company completed the new warehouse in Wahpeton, North Dakota. The new facility served as a receiving and distribution center for line and substation materials. It gave the company greater purchasing flexibility and better inventory control.

Written by Myron Broschat, Otter Tail Power Company retiree, using a nnual reports as sources.