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John MacFarlane offered our invocation. After reciting The Four Way Test, President Zack called on Brian to tell us of a similar, albeit Three Way Test, that Socrates (469 - 399 B.C.) constructed approximately 2400 years ago: 1) Does it pass the filter of truth? 2) Does it pass the filter of being a good thing? and 3) finally, a filter of utility - will it be useful? Lisa, as our new service projects coordinator, announced the need for people to fill volunteer positions in the Salvation Army's kitchen on Thursdays from 11:30 a.m. to about 12:30 p.m. She did so the prior Thursday and was kept busy but nothing difficult. President Zack then asked that our guests be introduced, with John hosting Lieutenant Josh Boyer from the Salvation Army, Mark bringing Dean Lee from Otter Tail Power, and Ken having as his guest John DiLorando (sp?), working for the same media company and visiting from Tuscon, Arizona. Our lone virtual attendee was Lois. There was a Rotary Minute Quiz, with two of three questions answered correctly. Jamie reminded us that peach sale sheets showing who has bought and whether they have paid or not will need to be turned in on the 9th, with any new sales after that to be subsequently reported. Zack led off the bragging, noting his daughter participated in the Center for the Arts production of Legally Blonde and it was a great show, with Lisa subsequently noting that her daughter also was in the play and everyone did a great job. Tim paid for missing the prior week's meeting but really to brag about all children and grand and great grandchildren visiting -- a total of 28. Buzz was enjoying his 87th birthday and we sang to him, but his brag had to do with a great grandson being born the day before, at a healthy 9.5 pounds. Ken talked about The Daily Journal celebrating its 150th birthday (the actual anniversary date was July 24th) at Spies Riverfront Park on what is now this past Friday, with free music, hot dogs and chips being served up. Finally, Kathy paid a scooter buck as she was leaving on a trip across the pond. Our speaker was Preston Riewer, a Senior Resource Planner (as is Dean Lee) at OTP. Preston grew up in the Bertha - Hewitt area and started working for the company in 2020. Otter Tail has approximately 130,000 customers, with the population of the communities it serves averaging less than 400. He told us summer peak usually maxes out at 800 megawatts, while in the winter it usually is around 1000, higher this past winter. Its generation fleet in 2005, now and projected for 2030 is as follows:  Preston, Dean and one other person are responsible for the company's Integrated Resource Plan, which is the foundation for how the company will continue to serve its customers. The three priorities reflected in the plan are reliability, affordability, and environmental responsibility. The process involved seven stages: 1) model development alternatives; 2) engage stakeholders; 3) do a sensitivity (market) analysis; 4) develop a preferred plan; 5) make a regulatory filing; 6) obtain approval by the Public Utilities Commission; and 7) execute the project plan. It usually takes 18 to 24 months to just complete Stages 5 and 6, with the entire process taking 5 to 15 years. Otter Tail made its initial filing on September 1, 2021, and supplemented that on March 31, 2023. Right now, the process is in regulatory limbo, with OTP hoping to hear something from the PUC in early 2024. The initial filing proposed 1) adding duel fuel capability at Astoria Station, so instead of just natural gas there would be tanks for fuel oil to cover any service interruptions; 2) adding 150 megawatts of solar generation; 3) adding 100 megawatts of wind generation; and 4) commencing the process to withdraw from a 35% ownership interest in Coyote Station (a 500-megawatt coal facility) in 2028. Since that plan was submitted utilities are now being required to change their annual capacity construct from being based on the summer peak load to one with four separate seasonal capacity requirements. In addition, the Inflation Reduction Act was adopted and it includes production and investment credits. Finally, there has been a 15% increase in the company's capacity requirements based on the construction of three new facilities by private concerns in North Dakota. As a result, the plan was changed in March of 2023 to substitute liquified natural gas to onsite fuel capability at Astoria, increase new solar generation to 200 megawatts and new wind production to 200 megawatts, and the effort to withdraw from ownership of the Coyote Station will now only proceed if large capital expenditures for it are required. In response to a question, Preston indicated the cost of generation assets, except the Hoot Lake Solar plant, are recovered through utility rates approved for the three states in which Otter Tail operates - Minnesota, North Dakota and South Dakota. The cost of the Hoot Lake solar development is solely allocated to Minnesota rates. |
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