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)