Climate Change Data

Otter Tail Power Company

Climate Impact & Sustainability Data (2023)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:2.6 million tons CO2e (2023)
Scope 1 Emissions:2,400,902 tCO2e
Scope 2 Emissions:60,751 tCO2e
Scope 3 Emissions:1,074,279 tCO2e
Renewable Energy Share:37% (owned and contracted generation, excludes MISO market purchases)
Water Consumption:910.2 million gallons consumptive, 38.8 million gallons non-consumptive (2023)
Waste Generated:5.2 metric tons of hazardous waste disposed (2023)
Carbon Intensity:1,176.6 pounds per megawatt hour (2023)

ESG Focus Areas

  • Energy and Environment
  • Social
  • Governance

Environmental Achievements

  • Completed the 49-MW Hoot Lake Solar facility, bringing nearly 40 percent of owned and contracted energy generation from renewable resources.
  • Purchased Ashtabula III Wind Energy Center, adding 62 MW of nameplate capacity to owned generation assets.
  • Began plans to upgrade and refurbish wind turbines, expecting approximately 164 GWh of additional energy.
  • Reduced SO2 emissions by 62%, NOx emissions by 79%, and Hg emissions by 88% from 2005 levels.
  • Completed Hoot Lake Plant’s decommissioning and site restoration.
  • Closed coal ash landfill by installing a geomembrane cap and drainage system.

Social Achievements

  • Installed 480 of 174,000 advanced metering infrastructure (AMI) meters.
  • Launched the Uplift program providing credits on electric bills for Minnesota residential customers receiving Energy Assistance.
  • Added maternity and parental leave policies for non-union employees.
  • Updated vacation policies to better serve employees.
  • Minnesota customers saved 61,444 MWH of energy and South Dakota customers saved 6,650 MWH through energy conservation programs.

Governance Achievements

  • Nine of ten Otter Tail Corporation board members were independent in 2023.
  • Regularly reviews significant and emerging risks, including cybersecurity and climate change.

Climate Goals & Targets

Long-term Goals:
  • Reduce carbon emissions from owned generation resources 97% by 2050.
  • Approximately 70% of energy delivery mix will be renewables by 2050.
Medium-term Goals:
  • Own or contract energy generation that is 55% renewable by 2030 (excludes MISO market purchases).
  • Reduce carbon emissions from owned generation resources 50% by 2030.
Short-term Goals:
  • Install remaining 174,000 AMI meters by early 2025.

Environmental Challenges

  • Increased costs to maintain a safe and reliable system while meeting growing electricity demand.
  • Changes in customer mix.
  • Cybersecurity incidents posing a threat to customer, employee, and vendor data privacy and reliable operation of the electric system.
  • Evolving regulations for fossil fuel-fired plants (Greenhouse gas regulations, Regional Haze Rule, Mercury and Air Toxics Standards Rule, Coal Combustion Residuals Rule).
Mitigation Strategies
  • Increased capital spending in the replacement of aging transmission and distribution assets.
  • Strategic Overhead to Underground program.
  • Enhanced preventative and responsive processes to reduce wildfire risk.
  • Exploring transmission and distribution technologies for more efficient and responsible operations.
  • Submitting grant applications for Infrastructure Investment and Jobs Act funding.
  • Adopting, revising, and maintaining policies, processes, controls, and technologies to address cybersecurity threats.
  • Regular testing of cybersecurity policies, processes, controls, and technologies.
  • Active participation in boards of directors and programs to address cybersecurity.
  • Evaluating the impact of evolving regulations and working with states to develop implementation plans.

Supply Chain Management

Responsible Procurement
  • Otter Tail Power Company Contractor Code of Business Ethics
  • Otter Tail Power Company Contractor Safety Policy
  • Otter Tail Corporation Human Rights Policy
  • Federal Equal Opportunity requirements

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, SASB, TCFD

Awards & Recognition

  • 2023 Minnesota Governor’s Workplace Safety Silver Award
  • 2023 Minnesota Erosion Control Association Environmental Excellence award (Hoot Lake Solar)