With250 MW of wind generation that already provides 19% of the company's retailsales, Otter Tail Power Co.plans to add up to 200 MW of additional wind capacity before 2021. The additionwould put the company's wind resources to nearly 30%, according to companyexecutives.
Duringits first-quarter 2016 earnings conference call on May 3, President and CEOChuck MacFarlane told analyststhat Otter Tail Power also plans to add enough solar to power 1.5% of itsMinnesota electric retail sales by 2020, equating to approximately 30 MW of newsolar.
OtterTail Power expects to file an updated resource plan in Minnesota on June 1.
OtterTail had plans toinvest $858 million in Otter Tail Power between 2016 and 2020.
"Thiswill result in a compound average annual growth rate in rate base of more 8%from 2016 to 2020," MacFarlane said. "[N]atural gas generation andrenewable generation projects will account for the majority of this rate baseexpansion with most eligible for construction cost recovery duringconstruction."
Thecompany also plans to relicense its portfolio of five small hydroelectricplants on the Otter Tail River near Fergus Falls. The plants are combined underone FERC license and must be re-licensed by 2021.
"Wehave begun the relicensing effort, which takes four years to five years,"MacFarlane added.
OtterTail continues to target 2016 EPS in a range of $1.50 to $1.65. Thecompany net income fromcontinuing operations of $14.5 million, or 38 cents per share, in the firstquarter, representing an increase from $13.8 million, or 37 cents per share, inthe comparable quarter of 2015.