Otter Tail Corp [OTTR] Filings

10-Q 1 ottr-20220930.htm 10-Q ottr-20220930

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ Quarterly Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2022 or

☐ Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number 0-53713

OTTER TAIL CORPORATION

(Exact name of registrant as specified in its charter)


Minnesota (State or other jurisdiction of incorporation or organization)			27-0383995 (I.R.S. Employer Identification No.)

215 South Cascade Street, Box 496, Fergus Falls, Minnesota (Address of principal executive offices)			56538-0496 (Zip Code)

Registrant's telephone number, including area code: 866-410-8780

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Shares, par value $5.00 per share	OTTR	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large Accelerated Filer ☑

Accelerated Filer ☐

Non-Accelerated Filer ☐

Smaller Reporting Company ☐

Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date:

41,630,952 Common Shares ($5 par value) as of October 25, 2022.

Table of Contents


TABLE OF CONTENTS


	Description	Page

	Definitions	2
	Forward Looking Information	2
PART I
ITEM 1.	Financial Statements:
	Consolidated Balance Sheets	3
	Consolidated Statements of Income	4
	Consolidated Statements of Comprehensive Income	5
	Consolidated Statements of Shareholders’ Equity	6
	Consolidated Statements of Cash Flows	7
	Condensed Notes to Consolidated Financial Statements	8
ITEM 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
ITEM 3.	Quantitative and Qualitative Disclosures About Market Risk	32
ITEM 4.	Controls and Procedures	32
PART II
ITEM 1.	Legal Proceedings	32
ITEM 1A.	Risk Factors	32

ITEM 6.	Exhibits	33
Signatures		34

Table of Contents


DEFINITIONS

The following abbreviations or acronyms are used in the text.

AGI

Advanced Grid Infrastructure Rider

OTC

Otter Tail Corporation

ARP

Alternative Revenue Program

OTP

Otter Tail Power Company

BTD

BTD Manufacturing, Inc.

NDDEQ

North Dakota Department of Environmental Quality

CIP

Conservation Improvement Program

PIR

Phase-In Rider

EAR

Energy Adjustment Rider

PSLRA

Private Securities Litigation Reform Act of 1995

EPA

Environmental Protection Agency

PTC

Production Tax Credits

ESSRP

Executive Survivor and Supplemental Retirement Plan

PVC

Polyvinyl chloride

FERC

Federal Energy Regulatory Commission

RHR

Regional Haze Rule

GCR

Generation Cost Recovery Rider

ROE

Return on equity

ISO

Independent System Operator

RRR

Renewable Resource Rider

IRP

Integrated Resource Plan

SEC

Securities and Exchange Commission

kwh

kilowatt-hour

SOFR

Secured Overnight Funds Rate

Merricourt

Merricourt Wind Energy Center

T.O. Plastics

T.O. Plastics, Inc.

MISO

Midcontinent Independent System Operator, Inc.

TCR

Transmission Cost Recovery Rider

MPUC

Minnesota Public Utilities Commission


FORWARD-LOOKING INFORMATION

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "PSLRA"). When used in this Form 10-Q and in future filings by Otter Tail Corporation (the "Company") with the Securities and Exchange Commission (SEC), in the Company’s press releases and in oral statements, words such as “anticipate,” “believe,” “could,” “estimate,” “expect,” "future," "goal," “intend,” "likely," “may,” “outlook,” “plan,” “possible,” “potential,” "probable," "projected," “should,” "target," “will,” “would” or similar expressions are intended to identify forward-looking statements within the meaning of the PSLRA. Such statements are based on current expectations and assumptions and entail various risks and uncertainties that could cause actual results to differ materially from those expressed in such forward-looking statements. The Company’s risks and uncertainties include, among other things, uncertainty of the impact and duration of the COVID-19 pandemic, uncertainty of future investments and capital expenditures, rate base levels and rate base growth, long-term investment risk, seasonal weather patterns and extreme weather events, counterparty credit risk, future business volumes with key customers, reductions in our credit ratings, our ability to access capital markets on favorable terms, assumptions and costs relating to funding our employee benefit plans, our subsidiaries’ ability to make dividend payments, cyber security threats or data breaches, the impact of government legislation and regulation including foreign trade policy and environmental laws and regulations, the impact of climate change including compliance with legislative and regulatory changes to address climate change, operational and economic risks associated with our electric generating and manufacturing facilities, risks associated with energy markets, the availability and pricing of resource materials, inflation rates, attracting and maintaining a qualified and stable workforce, expectations regarding regulatory proceedings, and changing macroeconomic and industry conditions. These and other risks and uncertainties are more fully described in our filings with the SEC, including our most recently filed Annual Report on Form 10-K. Forward-looking statements speak only as of the date they are made, and we expressly disclaim any obligation to update any forward-looking information.

PART I. FINANCIAL INFORMATION


ITEM 1.			FINANCIAL STATEMENTS

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OTTER TAIL CORPORATION

CONSOLIDATED BALANCE SHEETS (unaudited)


(in thousands, except share data)	September 30, 2022		December 31, 2021

Assets
Current Assets
Cash and Cash Equivalents	$	72,987	$	1,537
Receivables, net of allowance for credit losses	193,797		174,953
Inventories	146,376		148,490
Regulatory Assets	29,921		27,342
Other Current Assets	17,412		17,032
Total Current Assets	460,493		369,354
Noncurrent Assets
Investments	52,966		56,690
Property, Plant and Equipment, net of accumulated depreciation	2,186,643		2,124,605
Regulatory Assets	116,593		125,508
Intangible Assets, net of accumulated amortization	8,218		9,044
Goodwill	37,572		37,572
Other Noncurrent Assets	35,419		32,057
Total Noncurrent Assets	2,437,411		2,385,476
Total Assets	$	2,897,904	$	2,754,830

Liabilities and Shareholders' Equity
Current Liabilities
Short-Term Debt	$	—	$	91,163
Current Maturities of Long-Term Debt	—		29,983
Accounts Payable	121,995		135,089
Accrued Salaries and Wages	27,454		31,704
Accrued Taxes	25,635		19,245
Regulatory Liabilities	21,114		24,844
Other Current Liabilities	45,655		55,671
Total Current Liabilities	241,853		387,699
Noncurrent Liabilities
Pension Benefit Liability	50,489		73,973
Other Postretirement Benefits Liability	67,352		66,481
Regulatory Liabilities	240,545		234,430
Deferred Income Taxes	212,838		188,268
Deferred Tax Credits	16,102		16,661
Other Noncurrent Liabilities	60,942		62,527
Total Noncurrent Liabilities	648,268		642,340
Commitments and Contingencies (Note 9)
Capitalization
Long-Term Debt, net of current maturities	823,760		734,014
Shareholders' Equity
Common Shares: 50,000,000 shares authorized, $5 par value; 41,630,952 and 41,551,524 outstanding at September 30, 2022 and December 31, 2021	208,155		207,758
Additional Paid-In Capital	422,448		419,760
Retained Earnings	560,398		369,783
Accumulated Other Comprehensive Loss	(6,978)		(6,524)
Total Shareholders' Equity	1,184,023		990,777
Total Capitalization	2,007,783		1,724,791
Total Liabilities and Shareholders' Equity	$	2,897,904	$	2,754,830

See accompanying notes to consolidated financial statements.

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OTTER TAIL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME (unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per-share amounts)	2022		2021		2022		2021

Operating Revenues
Electric	$	142,747	$	118,775	$	404,112	$	348,629
Product Sales	241,109		197,519		754,688		514,983
Total Operating Revenues	383,856		316,294		1,158,800		863,612
Operating Expenses
Electric Production Fuel	24,972		17,698		54,538		44,576
Electric Purchased Power	19,913		9,878		64,604		40,273
Electric Operating and Maintenance Expenses	39,799		36,465		126,460		114,615
Cost of Products Sold (excluding depreciation)	139,361		134,212		443,586		358,767
Other Nonelectric Expenses	16,524		16,224		50,981		45,587
Depreciation and Amortization	22,716		22,815		69,829		68,109
Electric Property Taxes	4,438		4,474		13,304		13,136
Total Operating Expenses	267,723		241,766		823,302		685,063
Operating Income	116,133		74,528		335,498		178,549
Other Income and Expense
Interest Charges	9,259		9,648		27,198		28,601
Nonservice Cost Components of Postretirement Benefits	(52)		505		(824)		1,511
Other Income (Expense), net	(174)		203		(802)		2,095
Income Before Income Taxes	106,752		64,578		308,322		150,532
Income Tax Expense	22,513		11,824		66,143		25,380
Net Income	$	84,239	$	52,754	$	242,179	$	125,152

Weighted-Average Common Shares Outstanding:
Basic	41,600		41,504		41,582		41,487
Diluted	41,974		41,869		41,930		41,795
Earnings Per Share:
Basic	$	2.02	$	1.27	$	5.82	$	3.02
Diluted	$	2.01	$	1.26	$	5.78	$	2.99

See accompanying notes to consolidated financial statements.

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OTTER TAIL CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021

Net Income	$	84,239	$	52,754	$	242,179	$	125,152
Other Comprehensive Income (Loss):
Unrealized Loss on Available-for-Sale Securities, net of tax benefit of $46, $7, $127, and $27	(171)		(26)		(476)		(101)
Pension and Other Postretirement Benefits, net of tax expense of $(37), $(51), $(8), and $(154)	106		146		22		437
Total Other Comprehensive Income (Loss)	(65)		120		(454)		336
Total Comprehensive Income	$	84,174	$	52,874	$	241,725	$	125,488

See accompanying notes to consolidated financial statements.

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OTTER TAIL CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (unaudited)


(in thousands, except common shares outstanding)	Common Shares Outstanding	Par Value, Common Shares		Additional Paid-In Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Shareholders' Equity

Balance, June 30, 2022	41,630,799	$	208,154	$	421,951	$	493,351	$	(6,913)	$	1,116,543

Stock Issued Under Share-Based Compensation Plans, net of shares withheld for employee taxes	153	1		(1)		—		—		—
Stock Issued Under Dividend Reinvestment and Stock Purchase Plans, net of expenses and repurchased shares	—	—		(132)		—		—		(132)
Net Income	—	—		—		84,239		—		84,239
Other Comprehensive Loss	—	—		—		—		(65)		(65)
Stock Compensation Expense	—	—		630		—		—		630
Common Dividends ($0.4125 per share)	—	—		—		(17,192)		—		(17,192)
Balance, September 30, 2022	41,630,952	$	208,155	$	422,448	$	560,398	$	(6,978)	$	1,184,023

Balance, June 30, 2021	41,538,709	$	207,694	$	417,870	$	297,850	$	(8,291)	$	915,123

Stock Issued Under Share-Based Compensation Plans, net of shares withheld for employee taxes	1,275	6		(132)		—		—		(126)

Net Income	—	—		—		52,754		—		52,754
Other Comprehensive Income	—	—		—		—		120		120
Stock Compensation Expense	—	—		830		—		—		830
Common Dividends ($0.39 per share)	—	—		—		(16,219)		—		(16,219)
Balance, September 30, 2021	41,539,984	$	207,700	$	418,568	$	334,385	$	(8,171)	$	952,482

Balance, December 31, 2021	41,551,524	$	207,758	$	419,760	$	369,783	$	(6,524)	$	990,777

Stock Issued Under Share-Based Compensation Plans, net of shares withheld for employee taxes	79,428	397		(3,321)		—		—		(2,924)
Stock Issued Under Dividend Reinvestment and Stock Purchase Plans, net of expenses and repurchased shares	—	—		(132)		—		—		(132)
Net Income	—	—		—		242,179		—		242,179
Other Comprehensive Loss	—	—		—		—		(454)		(454)
Stock Compensation Expense	—	—		6,141		—		—		6,141
Common Dividends ($1.2375 per share)	—	—		—		(51,564)		—		(51,564)
Balance, September 30, 2022	41,630,952	$	208,155	$	422,448	$	560,398	$	(6,978)	$	1,184,023

Balance, December 31, 2020	41,469,879	$	207,349	$	414,246	$	257,878	$	(8,507)	$	870,966

Stock Issued Under Share-Based Compensation Plans, net of shares withheld for employee taxes	70,105	351		(1,965)		—		—		(1,614)
Stock Issued Under Dividend Reinvestment and Stock Purchase Plans, net of expenses and repurchased shares	—	—		(67)		—		—		(67)
Net Income	—	—		—		125,152		—		125,152
Other Comprehensive Income	—	—		—		—		336		336
Stock Compensation Expense	—	—		6,354		—		—		6,354
Common Dividends ($1.17 per share)	—	—		—		(48,645)		—		(48,645)
Balance, September 30, 2021	41,539,984	$	207,700	$	418,568	$	334,385	$	(8,171)	$	952,482

See accompanying notes to consolidated financial statements.

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OTTER TAIL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)


	Nine Months Ended September 30,
(in thousands)	2022		2021

Operating Activities
Net Income	$	242,179	$	125,152
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization	69,829		68,109
Deferred Tax Credits	(558)		(558)
Deferred Income Taxes	23,648		18,835
Discretionary Contribution to Pension Plan	(20,000)		(10,000)
Allowance for Equity Funds Used During Construction	(938)		(427)
Stock Compensation Expense	6,141		6,354
Other, Net	5,477		(2,747)
Changes in Operating Assets and Liabilities:
Receivables	(18,845)		(64,800)
Inventories	3,632		(22,450)
Regulatory Assets	170		5,301
Other Assets	1,789		(18,708)
Accounts Payable	(10,681)		30,921
Accrued and Other Liabilities	(13,970)		12,027
Regulatory Liabilities	(1,208)		2,350
Pension and Other Postretirement Benefits	1,308		5,393
Net Cash Provided by Operating Activities	287,973		154,752
Investing Activities
Capital Expenditures	(123,227)		(117,312)
Proceeds from Disposal of Noncurrent Assets	3,803		5,819
Cash Used for Investments and Other Assets	(8,132)		(5,591)
Net Cash Used in Investing Activities	(127,556)		(117,084)
Financing Activities
Net Borrowings (Repayments) on Short-Term Debt	(91,163)		16,860

Proceeds from Issuance of Long-Term Debt	90,000		—
Payments for Retirement of Long-Term Debt	(30,000)		(169)
Dividends Paid	(51,564)		(48,645)
Payments for Shares Withheld for Employee Tax Obligations	(2,942)		(1,633)
Other, net	(3,298)		(3,972)
Net Cash Used in Financing Activities	(88,967)		(37,559)
Net Change in Cash and Cash Equivalents	71,450		109
Cash and Cash Equivalents at Beginning of Period	1,537		1,163
Cash and Cash Equivalents at End of Period	$	72,987	$	1,272





Supplemental Disclosure of Noncash Investing Activities
Accrued Property, Plant and Equipment Additions	$	12,438	$	14,358

See accompanying notes to consolidated financial statements

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OTTER TAIL CORPORATION

CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

1. Summary of Significant Accounting Policies

Overview

Otter Tail Corporation (OTC) and its subsidiaries (collectively, the "Company", "us", "our" or "we") form a diverse, multi-platform business consisting of a vertically integrated, regulated utility with generation, transmission and distribution facilities complemented by manufacturing businesses providing metal fabrication for custom machine parts and metal components, manufacturing of extruded and thermoformed plastic products, and manufacturing of polyvinyl chloride (PVC) pipe products. We classify our business into three segments: Electric, Manufacturing and Plastics.

Basis of Presentation

The unaudited consolidated financial statements included herein have been prepared pursuant to the rules and regulations of the SEC for interim reporting. Accordingly, they do not include all the information and footnotes required by generally accepted accounting principles. In the opinion of management, we have included all adjustments, including normal recurring accruals, necessary for a fair presentation of the consolidated financial statements for the periods presented. The consolidated financial statements and condensed notes thereto should be read in conjunction with the consolidated financial statements and notes included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Because of the seasonality of our businesses and other factors, the earnings for the three and nine months ended September 30, 2022 should not be taken as an indication of earnings for all or any part of the balance of the current year or as an indication of earnings for future years.

Use of Estimates

We use estimates based on the best information available in recording transactions and balances resulting from business operations. As better information becomes available or actual amounts are known, the recorded estimates are revised. Consequently, operating results can be affected by revisions to prior accounting estimates.

Reclassifications

Certain reclassifications of amounts previously reported have been made to the accompanying consolidated statements of shareholders' equity and consolidated statements of cash flows to maintain consistency and comparability between periods presented. The reclassifications had no impact on previously reported shareholders' equity, net cash provided by operating activities, net cash used in investing activities, net cash used in financing activities, or cash and cash equivalents.

2. Segment Information

We classify our business into three segments, Electric, Manufacturing and Plastics, consistent with our business strategy, organizational structure and our internal reporting and review processes used by our chief operating decision maker to make decisions regarding allocation of resources, to assess operating performance and to make strategic decisions.

Certain assets and costs are not allocated to our operating segments. Corporate operating costs include items such as corporate staff and overhead costs, the results of our captive insurance company and other items excluded from the measurement of operating segment performance. Corporate assets consist primarily of cash and cash equivalents, prepaid expenses, investments and fixed assets. Corporate is not an operating segment, rather it is added to operating segment totals to reconcile to consolidated amounts.

Information for each segment and our unallocated corporate costs for the three and nine months ended September 30, 2022 and 2021 are as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021

Operating Revenue
Electric	$	142,747	$	118,775	$	404,112	$	348,629
Manufacturing	98,767		89,977		306,921		250,085
Plastics	142,342		107,542		447,767		264,898
Total	$	383,856	$	316,294	$	1,158,800	$	863,612
Net Income (Loss)
Electric	$	24,847	$	22,528	$	62,938	$	55,547
Manufacturing	6,219		4,200		17,858		15,290
Plastics	55,982		28,410		170,788		60,102
Corporate	(2,809)		(2,384)		(9,405)		(5,787)
Total	$	84,239	$	52,754	$	242,179	$	125,152

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The following provides the identifiable assets by segment and corporate assets as of September 30, 2022 and December 31, 2021:


(in thousands)	September 30, 2022		December 31, 2021

Identifiable Assets
Electric	$	2,347,461	$	2,283,776
Manufacturing	253,819		251,044
Plastics	179,925		162,565
Corporate	116,699		57,445
Total	$	2,897,904	$	2,754,830

3. Revenue

Presented below are our operating revenues to external customers, in total and by amounts arising from contracts with customers and alternative revenue program (ARP) arrangements, disaggregated by revenue source and segment for the three and nine months ended September 30, 2022 and 2021:


	Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands)	2022		2021		2022		2021

Operating Revenues
Electric Segment
Retail: Residential	$	35,122	$	33,902	$	108,883	$	100,067
Retail: Commercial and Industrial	83,022		60,557		232,532		185,376
Retail: Other	2,033		1,979		6,004		5,687
Total Retail	120,177		96,438		347,419		291,130
Transmission	13,156		13,300		37,409		37,085
Wholesale	7,196		6,944		13,196		14,711
Other	2,218		2,093		6,088		5,703
Total Electric Segment	142,747		118,775		404,112		348,629
Manufacturing Segment
Metal Parts and Tooling	84,054		76,455		261,923		210,141
Plastic Products and Tooling	12,723		10,198		36,584		30,624
Scrap Metal Sales	1,990		3,324		8,414		9,320
Total Manufacturing Segment	98,767		89,977		306,921		250,085
Plastics Segment
PVC Pipe	142,342		107,542		447,767		264,898
Total Operating Revenue	383,856		316,294		1,158,800		863,612
Less: Non-contract Revenues Included Above
Electric Segment - ARP Revenues	(548)		(33)		(7,937)		(2,790)
Total Operating Revenues from Contracts with Customers	$	384,404	$	316,327	$	1,166,737	$	866,402

4. Select Balance Sheet Information

Receivables and Allowance for Credit Losses

Receivables as of September 30, 2022 and December 31, 2021 are as follows:


(in thousands)	September 30, 2022		December 31, 2021

Receivables
Trade	$	167,480	$	142,297
Other	9,052		10,591
Unbilled Receivables	18,813		23,901
Total Receivables	195,345		176,789
Less: Allowance for Credit Losses	(1,548)		(1,836)
Receivables, net of allowance for credit losses	$	193,797	$	174,953

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The following is a summary of activity in the allowance for credit losses for the nine months ended September 30, 2022 and 2021:


(in thousands)	2022		2021

Beginning Balance, January 1	$	1,836	$	3,215
Additions Charged to Expense	518		177
Reductions for Amounts Written Off, Net of Recoveries	(806)		(1,060)
Ending Balance, September 30	$	1,548	$	2,332

Inventories

Inventories consist of the following as of September 30, 2022 and December 31, 2021:


(in thousands)	September 30, 2022		December 31, 2021

Raw Material, Fuel and Supplies	$	74,249	$	72,882
Work in Process	33,765		35,705
Finished Goods	38,362		39,903
Total Inventories	$	146,376	$	148,490

Investments

The following is a summary of our investments as of September 30, 2022 and December 31, 2021:


(in thousands)	September 30, 2022		December 31, 2021

Corporate-Owned Life Insurance Policies	$	37,288	$	41,078
Debt Securities	8,710		9,202
Money Market Funds	1,854		949
Mutual Funds	5,084		5,432
Other Investments	30		29
Total Investments	$	52,966	$	56,690

The amount of unrealized gains and losses on debt securities as of September 30, 2022 and December 31, 2021 was not material and no unrealized losses were deemed to be other-than-temporary. In addition, the amount of unrealized gains and losses on marketable equity securities still held as of September 30, 2022 and December 31, 2021 was not material.

Property, Plant and Equipment

Major classes of property, plant and equipment as of September 30, 2022 and December 31, 2021 include:


(in thousands)	September 30, 2022		December 31, 2021

Electric Plant
Electric Plant in Service	$	2,795,649	$	2,758,445
Construction Work in Progress	130,486		74,926
Total Gross Electric Plant	2,926,135		2,833,371
Less Accumulated Depreciation and Amortization	850,741		817,302
Net Electric Plant	2,075,394		2,016,069
Nonelectric Property, Plant and Equipment
Nonelectric Property, Plant and Equipment in Service	281,584		273,950
Construction Work in Progress	20,746		16,611
Total Gross Nonelectric Property, Plant and Equipment	302,330		290,561
Less Accumulated Depreciation and Amortization	191,081		182,025
Net Nonelectric Property, Plant and Equipment	111,249		108,536
Net Property, Plant and Equipment	$	2,186,643	$	2,124,605

Table of Contents

5. Regulatory Matters

Regulatory Assets and Liabilities

The following presents our current and long-term regulatory assets and liabilities as of September 30, 2022 and December 31, 2021 and the period we expect to recover or refund such amounts:


	Period of	September 30, 2022				December 31, 2021
(in thousands)	Recovery/Refund	Current		Long-Term		Current		Long Term

Regulatory Assets
Pension and Other Postretirement Benefit Plans1	Various	$	7,791	$	110,183	$	7,791	$	114,961
Alternative Revenue Program Riders2	Up to 2 years	7,528		1,988		11,889		5,564
Asset Retirement Obligations1	Asset lives	—		1,323		—		742

ISO Cost Recovery Trackers1	Up to 2 years	660		740		—		1,342
Unrecovered Project Costs1	Up to 5 years	320		1,063		2,136		1,455
Deferred Rate Case Expenses1	Various	412		848		607		1,131
Debt Reacquisition Premiums1	10 years	25		222		100		240
Fuel Clause Adjustments1	Up to 1 year	13,185		—		4,819		—
Other1	Various	—		226		—