10-Q 1 ottr-20220930.htm 10-Q ottr-20220930
0001466593falseQ32022--12-31P3Y00014665932022-01-012022-09-3000014665932022-10-25xbrli:shares00014665932022-09-30iso4217:USD00014665932021-12-31iso4217:USDxbrli:shares0001466593ottr:ElectricMember2022-07-012022-09-300001466593ottr:ElectricMember2021-07-012021-09-300001466593ottr:ElectricMember2022-01-012022-09-300001466593ottr:ElectricMember2021-01-012021-09-300001466593ottr:ProductSalesMember2022-07-012022-09-300001466593ottr:ProductSalesMember2021-07-012021-09-300001466593ottr:ProductSalesMember2022-01-012022-09-300001466593ottr:ProductSalesMember2021-01-012021-09-3000014665932022-07-012022-09-3000014665932021-07-012021-09-3000014665932021-01-012021-09-300001466593us-gaap:CommonStockMember2022-06-300001466593us-gaap:AdditionalPaidInCapitalMember2022-06-300001466593us-gaap:RetainedEarningsMember2022-06-300001466593us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-06-3000014665932022-06-300001466593us-gaap:CommonStockMember2022-07-012022-09-300001466593us-gaap:AdditionalPaidInCapitalMember2022-07-012022-09-300001466593us-gaap:RetainedEarningsMember2022-07-012022-09-300001466593us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-012022-09-300001466593us-gaap:CommonStockMember2022-09-300001466593us-gaap:AdditionalPaidInCapitalMember2022-09-300001466593us-gaap:RetainedEarningsMember2022-09-300001466593us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-09-300001466593us-gaap:CommonStockMember2021-06-300001466593us-gaap:AdditionalPaidInCapitalMember2021-06-300001466593us-gaap:RetainedEarningsMember2021-06-300001466593us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-3000014665932021-06-300001466593us-gaap:CommonStockMember2021-07-012021-09-300001466593us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001466593us-gaap:RetainedEarningsMember2021-07-012021-09-300001466593us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001466593us-gaap:CommonStockMember2021-09-300001466593us-gaap:AdditionalPaidInCapitalMember2021-09-300001466593us-gaap:RetainedEarningsMember2021-09-300001466593us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-3000014665932021-09-300001466593us-gaap:CommonStockMember2021-12-310001466593us-gaap:AdditionalPaidInCapitalMember2021-12-310001466593us-gaap:RetainedEarningsMember2021-12-310001466593us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001466593us-gaap:CommonStockMember2022-01-012022-09-300001466593us-gaap:AdditionalPaidInCapitalMember2022-01-012022-09-300001466593us-gaap:RetainedEarningsMember2022-01-012022-09-300001466593us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-09-300001466593us-gaap:CommonStockMember2020-12-310001466593us-gaap:AdditionalPaidInCapitalMember2020-12-310001466593us-gaap:RetainedEarningsMember2020-12-310001466593us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-3100014665932020-12-310001466593us-gaap:CommonStockMember2021-01-012021-09-300001466593us-gaap:AdditionalPaidInCapitalMember2021-01-012021-09-300001466593us-gaap:RetainedEarningsMember2021-01-012021-09-300001466593us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-3000014665932022-09-302022-09-3000014665932021-09-302021-09-30ottr:segment0001466593us-gaap:OperatingSegmentsMemberottr:ElectricMember2022-07-012022-09-300001466593us-gaap:OperatingSegmentsMemberottr:ElectricMember2021-07-012021-09-300001466593us-gaap:OperatingSegmentsMemberottr:ElectricMember2022-01-012022-09-300001466593us-gaap:OperatingSegmentsMemberottr:ElectricMember2021-01-012021-09-300001466593us-gaap:OperatingSegmentsMemberottr:ManufacturingMember2022-07-012022-09-300001466593us-gaap:OperatingSegmentsMemberottr:ManufacturingMember2021-07-012021-09-300001466593us-gaap:OperatingSegmentsMemberottr:ManufacturingMember2022-01-012022-09-300001466593us-gaap:OperatingSegmentsMemberottr:ManufacturingMember2021-01-012021-09-300001466593ottr:PlasticsMemberus-gaap:OperatingSegmentsMember2022-07-012022-09-300001466593ottr:PlasticsMemberus-gaap:OperatingSegmentsMember2021-07-012021-09-300001466593ottr:PlasticsMemberus-gaap:OperatingSegmentsMember2022-01-012022-09-300001466593ottr:PlasticsMemberus-gaap:OperatingSegmentsMember2021-01-012021-09-300001466593us-gaap:CorporateNonSegmentMember2022-07-012022-09-300001466593us-gaap:CorporateNonSegmentMember2021-07-012021-09-300001466593us-gaap:CorporateNonSegmentMember2022-01-012022-09-300001466593us-gaap:CorporateNonSegmentMember2021-01-012021-09-300001466593us-gaap:OperatingSegmentsMemberottr:ElectricMember2022-09-300001466593us-gaap:OperatingSegmentsMemberottr:ElectricMember2021-12-310001466593us-gaap:OperatingSegmentsMemberottr:ManufacturingMember2022-09-300001466593us-gaap:OperatingSegmentsMemberottr:ManufacturingMember2021-12-310001466593ottr:PlasticsMemberus-gaap:OperatingSegmentsMember2022-09-300001466593ottr:PlasticsMemberus-gaap:OperatingSegmentsMember2021-12-310001466593us-gaap:CorporateNonSegmentMember2022-09-300001466593us-gaap:CorporateNonSegmentMember2021-12-310001466593ottr:RetailResidentialMemberus-gaap:OperatingSegmentsMemberottr:ElectricMember2022-07-012022-09-300001466593ottr:RetailResidentialMemberus-gaap:OperatingSegmentsMemberottr:ElectricMember2021-07-012021-09-300001466593ottr:RetailResidentialMemberus-gaap:OperatingSegmentsMemberottr:ElectricMember2022-01-012022-09-300001466593ottr:RetailResidentialMemberus-gaap:OperatingSegmentsMemberottr:ElectricMember2021-01-012021-09-300001466593ottr:RetailCommercialAndIndustrialMemberus-gaap:OperatingSegmentsMemberottr:ElectricMember2022-07-012022-09-300001466593ottr:RetailCommercialAndIndustrialMemberus-gaap:OperatingSegmentsMemberottr:ElectricMember2021-07-012021-09-300001466593ottr:RetailCommercialAndIndustrialMemberus-gaap:OperatingSegmentsMemberottr:ElectricMember2022-01-012022-09-300001466593ottr:RetailCommercialAndIndustrialMemberus-gaap:OperatingSegmentsMemberottr:ElectricMember2021-01-012021-09-300001466593ottr:RetailOtherMemberus-gaap:OperatingSegmentsMemberottr:ElectricMember2022-07-012022-09-300001466593ottr:RetailOtherMemberus-gaap:OperatingSegmentsMemberottr:ElectricMember2021-07-012021-09-300001466593ottr:RetailOtherMemberus-gaap:OperatingSegmentsMemberottr:ElectricMember2022-01-012022-09-300001466593ottr:RetailOtherMemberus-gaap:OperatingSegmentsMemberottr:ElectricMember2021-01-012021-09-300001466593ottr:ElectronicProductRetailMemberus-gaap:OperatingSegmentsMemberottr:ElectricMember2022-07-012022-09-300001466593ottr:ElectronicProductRetailMemberus-gaap:OperatingSegmentsMemberottr:ElectricMember2021-07-012021-09-300001466593ottr:ElectronicProductRetailMemberus-gaap:OperatingSegmentsMemberottr:ElectricMember2022-01-012022-09-300001466593ottr:ElectronicProductRetailMemberus-gaap:OperatingSegmentsMemberottr:ElectricMember2021-01-012021-09-300001466593us-gaap:OperatingSegmentsMemberus-gaap:ElectricTransmissionMemberottr:ElectricMember2022-07-012022-09-300001466593us-gaap:OperatingSegmentsMemberus-gaap:ElectricTransmissionMemberottr:ElectricMember2021-07-012021-09-300001466593us-gaap:OperatingSegmentsMemberus-gaap:ElectricTransmissionMemberottr:ElectricMember2022-01-012022-09-300001466593us-gaap:OperatingSegmentsMemberus-gaap:ElectricTransmissionMemberottr:ElectricMember2021-01-012021-09-300001466593ottr:WholesaleMemberus-gaap:OperatingSegmentsMemberottr:ElectricMember2022-07-012022-09-300001466593ottr:WholesaleMemberus-gaap:OperatingSegmentsMemberottr:ElectricMember2021-07-012021-09-300001466593ottr:WholesaleMemberus-gaap:OperatingSegmentsMemberottr:ElectricMember2022-01-012022-09-300001466593ottr:WholesaleMemberus-gaap:OperatingSegmentsMemberottr:ElectricMember2021-01-012021-09-300001466593us-gaap:OperatingSegmentsMemberottr:ElectricProductOtherMemberottr:ElectricMember2022-07-012022-09-300001466593us-gaap:OperatingSegmentsMemberottr:ElectricProductOtherMemberottr:ElectricMember2021-07-012021-09-300001466593us-gaap:OperatingSegmentsMemberottr:ElectricProductOtherMemberottr:ElectricMember2022-01-012022-09-300001466593us-gaap:OperatingSegmentsMemberottr:ElectricProductOtherMemberottr:ElectricMember2021-01-012021-09-300001466593us-gaap:OperatingSegmentsMemberottr:MetalPartsAndToolingMemberottr:ManufacturingMember2022-07-012022-09-300001466593us-gaap:OperatingSegmentsMemberottr:MetalPartsAndToolingMemberottr:ManufacturingMember2021-07-012021-09-300001466593us-gaap:OperatingSegmentsMemberottr:MetalPartsAndToolingMemberottr:ManufacturingMember2022-01-012022-09-300001466593us-gaap:OperatingSegmentsMemberottr:MetalPartsAndToolingMemberottr:ManufacturingMember2021-01-012021-09-300001466593us-gaap:OperatingSegmentsMemberottr:PlasticProductsMemberottr:ManufacturingMember2022-07-012022-09-300001466593us-gaap:OperatingSegmentsMemberottr:PlasticProductsMemberottr:ManufacturingMember2021-07-012021-09-300001466593us-gaap:OperatingSegmentsMemberottr:PlasticProductsMemberottr:ManufacturingMember2022-01-012022-09-300001466593us-gaap:OperatingSegmentsMemberottr:PlasticProductsMemberottr:ManufacturingMember2021-01-012021-09-300001466593ottr:ScrapMetalSalesMemberus-gaap:OperatingSegmentsMemberottr:ManufacturingMember2022-07-012022-09-300001466593ottr:ScrapMetalSalesMemberus-gaap:OperatingSegmentsMemberottr:ManufacturingMember2021-07-012021-09-300001466593ottr:ScrapMetalSalesMemberus-gaap:OperatingSegmentsMemberottr:ManufacturingMember2022-01-012022-09-300001466593ottr:ScrapMetalSalesMemberus-gaap:OperatingSegmentsMemberottr:ManufacturingMember2021-01-012021-09-300001466593us-gaap:OperatingSegmentsMember2022-07-012022-09-300001466593us-gaap:OperatingSegmentsMember2021-07-012021-09-300001466593us-gaap:OperatingSegmentsMember2022-01-012022-09-300001466593us-gaap:OperatingSegmentsMember2021-01-012021-09-300001466593ottr:ElectricPlantMemberottr:ElectricPlantInServiceMember2022-09-300001466593ottr:ElectricPlantMemberottr:ElectricPlantInServiceMember2021-12-310001466593ottr:ElectricPlantMemberus-gaap:ConstructionInProgressMember2022-09-300001466593ottr:ElectricPlantMemberus-gaap:ConstructionInProgressMember2021-12-310001466593ottr:ElectricPlantMember2022-09-300001466593ottr:ElectricPlantMember2021-12-310001466593ottr:NonelectricPlantMemberottr:NonelectricOperationsPlantMember2022-09-300001466593ottr:NonelectricPlantMemberottr:NonelectricOperationsPlantMember2021-12-310001466593us-gaap:ConstructionInProgressMemberottr:NonelectricPlantMember2022-09-300001466593us-gaap:ConstructionInProgressMemberottr:NonelectricPlantMember2021-12-310001466593ottr:NonelectricPlantMember2022-09-300001466593ottr:NonelectricPlantMember2021-12-310001466593ottr:PensionAndOtherPostretirementBenefitPlansMember2022-09-300001466593ottr:PensionAndOtherPostretirementBenefitPlansMember2021-12-310001466593ottr:AlternativeRevenueProgramRidersMember2022-01-012022-09-300001466593ottr:AlternativeRevenueProgramRidersMember2022-09-300001466593ottr:AlternativeRevenueProgramRidersMember2021-12-310001466593ottr:AssetRetirementObligationsMember2022-09-300001466593ottr:AssetRetirementObligationsMember2021-12-310001466593ottr:ISOCostRecoveryTrackersMember2022-01-012022-09-300001466593ottr:ISOCostRecoveryTrackersMember2022-09-300001466593ottr:ISOCostRecoveryTrackersMember2021-12-310001466593ottr:UnrecoveredProjectCostsMember2022-01-012022-09-300001466593ottr:UnrecoveredProjectCostsMember2022-09-300001466593ottr:UnrecoveredProjectCostsMember2021-12-310001466593ottr:DeferredRateCaseExpensesMember2022-09-300001466593ottr:DeferredRateCaseExpensesMember2021-12-310001466593ottr:DebtReacquisitionPremiumsMember2022-01-012022-09-300001466593ottr:DebtReacquisitionPremiumsMember2022-09-300001466593ottr:DebtReacquisitionPremiumsMember2021-12-310001466593ottr:FuelClauseAdjustmentsMember2022-01-012022-09-300001466593ottr:FuelClauseAdjustmentsMember2022-09-300001466593ottr:FuelClauseAdjustmentsMember2021-12-310001466593ottr:OtherRegulatoryAssetsMember2022-09-300001466593ottr:OtherRegulatoryAssetsMember2021-12-310001466593ottr:DeferredIncomeTaxesMember2022-09-300001466593ottr:DeferredIncomeTaxesMember2021-12-310001466593ottr:PlantRemovalObligationsMember2022-09-300001466593ottr:PlantRemovalObligationsMember2021-12-310001466593ottr:FuelClauseAdjustmentMember2022-01-012022-09-300001466593ottr:FuelClauseAdjustmentMember2022-09-300001466593ottr:FuelClauseAdjustmentMember2021-12-310001466593ottr:AlternativeRevenueProgramRidersMember2022-09-300001466593ottr:AlternativeRevenueProgramRidersMember2021-12-310001466593ottr:PensionAndOtherPostretirementBenefitPlansMember2022-01-012022-09-300001466593ottr:PensionAndOtherPostretirementBenefitPlansMember2022-09-300001466593ottr:PensionAndOtherPostretirementBenefitPlansMember2021-12-310001466593ottr:DerivativesMember2022-09-300001466593ottr:DerivativesMember2021-12-310001466593ottr:OtherRegulatoryLiabilitiesMember2022-09-300001466593ottr:OtherRegulatoryLiabilitiesMember2021-12-310001466593ottr:MPUCMemberottr:MinnesotaRateCaseMember2020-12-032020-12-03xbrli:pure0001466593ottr:MPUCMemberottr:MinnesotaRateCaseMember2022-02-012022-02-010001466593ottr:MPUCMemberottr:MinnesotaRateCaseMember2022-04-012022-06-300001466593ottr:MPUCMemberottr:MinnesotaRateCaseMember2022-07-012022-09-300001466593ottr:OtterTailCorporationCreditAgreementMember2022-09-300001466593ottr:OtterTailCorporationCreditAgreementMember2021-12-310001466593ottr:OTPCreditAgreementMember2022-09-300001466593ottr:OTPCreditAgreementMember2021-12-310001466593ottr:The355GuaranteedSeniorNotesDueDecember152026Member2022-09-300001466593ottr:The355GuaranteedSeniorNotesDueDecember152026Member2021-12-310001466593ottr:SeniorUnsecuredNotes615SeriesBDueAugust202022Member2022-09-300001466593ottr:SeniorUnsecuredNotes615SeriesBDueAugust202022Member2021-12-310001466593ottr:SeniorUnsecuredNotes637SeriesCDueAugust202027Member2022-09-300001466593ottr:SeniorUnsecuredNotes637SeriesCDueAugust202027Member2021-12-310001466593ottr:SeniorUnsecuredNotes468SeriesADueFebruary272029Member2022-09-300001466593ottr:SeniorUnsecuredNotes468SeriesADueFebruary272029Member2021-12-310001466593ottr:SeniorUnsecuredNotes307SeriesADueOctober102029Member2022-09-300001466593ottr:SeniorUnsecuredNotes307SeriesADueOctober102029Member2021-12-310001466593ottr:SeniorUnsecuredNotes322SeriesADueFebruary252030Member2022-09-300001466593ottr:SeniorUnsecuredNotes322SeriesADueFebruary252030Member2021-12-310001466593ottr:SeniorUnsecuredNotes322SeriesBDueAugust202030Member2022-09-300001466593ottr:SeniorUnsecuredNotes322SeriesBDueAugust202030Member2021-12-310001466593ottr:SeniorUnsecuredNotes274SeriesADueNovember292031Member2022-09-300001466593ottr:SeniorUnsecuredNotes274SeriesADueNovember292031Member2021-12-310001466593ottr:SeniorUnsecuredNotes647SeriesDDueAugust202037Member2022-09-300001466593ottr:SeniorUnsecuredNotes647SeriesDDueAugust202037Member2021-12-310001466593ottr:SeniorUnsecuredNotes352SeriesBDueOctober102039Member2022-09-300001466593ottr:SeniorUnsecuredNotes352SeriesBDueOctober102039Member2021-12-310001466593ottr:SeniorUnsecuredNotes362SeriesCDueFebruary252040Member2022-09-300001466593ottr:SeniorUnsecuredNotes362SeriesCDueFebruary252040Member2021-12-310001466593ottr:SeniorUnsecuredNotes547SeriesBDueFebruary272044Member2022-09-300001466593ottr:SeniorUnsecuredNotes547SeriesBDueFebruary272044Member2021-12-310001466593ottr:SeniorUnsecuredNotes407SeriesADueFebruary72048Member2022-09-300001466593ottr:SeniorUnsecuredNotes407SeriesADueFebruary72048Member2021-12-310001466593ottr:SeniorUnsecuredNotes382SeriesCDueOctober102049Member2022-09-300001466593ottr:SeniorUnsecuredNotes382SeriesCDueOctober102049Member2021-12-310001466593ottr:SeniorUnsecuredNotes392SeriesDDueFebruary252050Member2022-09-300001466593ottr:SeniorUnsecuredNotes392SeriesDDueFebruary252050Member2021-12-310001466593ottr:SeniorUnsecuredNotes369SeriesBDueNovember292051Member2022-09-300001466593ottr:SeniorUnsecuredNotes369SeriesBDueNovember292051Member2021-12-310001466593ottr:SeniorUnsecuredNotes377SeriesADueMay202052Member2022-09-300001466593ottr:SeniorUnsecuredNotes377SeriesADueMay202052Member2021-12-310001466593us-gaap:SeniorNotesMember2021-06-100001466593us-gaap:SeniorNotesMemberottr:SeniorUnsecuredNotes274SeriesADueNovember292031Member2021-06-100001466593us-gaap:SeniorNotesMemberottr:SeniorUnsecuredNotes369SeriesBDueNovember292051Member2021-06-100001466593ottr:SeniorUnsecuredNotes377SeriesADueMay202052Memberus-gaap:SeniorNotesMember2021-06-100001466593us-gaap:SeniorNotesMember2021-11-012021-11-300001466593us-gaap:SeniorNotesMember2022-05-012022-05-310001466593srt:MaximumMember2022-09-300001466593srt:MinimumMember2022-09-300001466593us-gaap:PensionPlansDefinedBenefitMember2022-07-012022-09-300001466593us-gaap:PensionPlansDefinedBenefitMember2021-07-012021-09-300001466593ottr:ExecutiveSurvivorAndSupplementalRetirementPlanMember2022-07-012022-09-300001466593ottr:ExecutiveSurvivorAndSupplementalRetirementPlanMember2021-07-012021-09-300001466593us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-07-012022-09-300001466593us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-07-012021-09-300001466593us-gaap:PensionPlansDefinedBenefitMember2022-01-012022-09-300001466593us-gaap:PensionPlansDefinedBenefitMember2021-01-012021-09-300001466593ottr:ExecutiveSurvivorAndSupplementalRetirementPlanMember2022-01-012022-09-300001466593ottr:ExecutiveSurvivorAndSupplementalRetirementPlanMember2021-01-012021-09-300001466593us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2022-01-012022-09-300001466593us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2021-01-012021-09-300001466593us-gaap:PensionPlansDefinedBenefitMember2022-02-012022-02-280001466593ottr:OtterTailPowerCompanyMember2022-06-232022-06-23utr:MWh0001466593ottr:FederalEnergyRegulatoryCommissionMemberottr:OtterTailPowerCompanyMember2022-09-300001466593ottr:SecondShelfRegistrationMember2021-05-032021-05-030001466593ottr:SecondShelfRegistrationMember2022-01-012022-09-300001466593ottr:SecondShelfRegistrationMember2022-09-300001466593srt:MinimumMemberottr:MinnesotaPublicUtilitiesCommissionMemberottr:OtterTailPowerCompanyMember2022-01-262022-01-260001466593srt:MaximumMemberottr:MinnesotaPublicUtilitiesCommissionMemberottr:OtterTailPowerCompanyMember2022-01-262022-01-260001466593ottr:OtterTailPowerCompanyMember2022-01-012022-09-300001466593ottr:OtterTailPowerCompanyMember2022-09-300001466593srt:MaximumMemberottr:OtterTailPowerCompanyMember2022-09-300001466593us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-06-300001466593us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-06-300001466593us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-06-300001466593us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-06-300001466593us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-07-012022-09-300001466593us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-07-012022-09-300001466593us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-07-012021-09-300001466593us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-07-012021-09-300001466593us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-09-300001466593us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-09-300001466593us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-09-300001466593us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-09-300001466593us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310001466593us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310001466593us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310001466593us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-12-310001466593us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-09-300001466593us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-09-300001466593us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-09-300001466593us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-012021-09-300001466593srt:MinimumMemberus-gaap:RestrictedStockMember2022-01-012022-09-300001466593srt:MaximumMemberus-gaap:RestrictedStockMember2022-01-012022-09-300001466593us-gaap:RestrictedStockMember2022-01-012022-09-300001466593us-gaap:RestrictedStockMember2021-12-310001466593us-gaap:RestrictedStockMember2022-09-300001466593us-gaap:RestrictedStockMember2021-01-012021-09-300001466593us-gaap:PerformanceSharesMember2022-01-012022-09-300001466593srt:MinimumMemberus-gaap:PerformanceSharesMember2022-01-012022-09-300001466593srt:MaximumMemberus-gaap:PerformanceSharesMember2022-01-012022-09-300001466593us-gaap:PerformanceSharesMember2021-01-012021-09-300001466593us-gaap:PerformanceSharesMember2021-12-310001466593us-gaap:PerformanceSharesMember2022-09-300001466593us-gaap:PerformanceSharesMember2022-07-012022-09-300001466593us-gaap:PerformanceSharesMember2021-07-012021-09-300001466593us-gaap:RestrictedStockMember2022-07-012022-09-300001466593us-gaap:RestrictedStockMember2021-07-012021-09-300001466593us-gaap:EmployeeStockOptionMember2022-07-012022-09-300001466593us-gaap:EmployeeStockOptionMember2021-07-012021-09-300001466593us-gaap:EmployeeStockOptionMember2022-01-012022-09-300001466593us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001466593us-gaap:SwapMember2022-01-012022-09-300001466593us-gaap:SwapMember2022-07-012022-09-300001466593us-gaap:SwapMember2021-07-012021-09-300001466593us-gaap:SwapMember2021-01-012021-09-300001466593us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-09-300001466593us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2022-09-300001466593us-gaap:FairValueInputsLevel2Memberottr:GovernmentBackedAndGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001466593us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-09-300001466593us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2021-12-310001466593us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:CorporateDebtSecuritiesMember2021-12-310001466593us-gaap:FairValueInputsLevel2Memberottr:GovernmentBackedAndGovernmentSponsoredEnterprisesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001466593us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001466593us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-09-300001466593us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-09-300001466593us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001466593us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-31

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 classTrading Symbol(s)Name of each exchange on which registered
Common Shares, par value $5.00 per shareOTTRThe 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

1

DEFINITIONS
The following abbreviations or acronyms are used in the text.
AGIAdvanced Grid Infrastructure RiderOTCOtter Tail Corporation
ARPAlternative Revenue ProgramOTPOtter Tail Power Company
BTDBTD Manufacturing, Inc.NDDEQNorth Dakota Department of Environmental Quality
CIPConservation Improvement ProgramPIRPhase-In Rider
EAREnergy Adjustment RiderPSLRAPrivate Securities Litigation Reform Act of 1995
EPAEnvironmental Protection AgencyPTCProduction Tax Credits
ESSRPExecutive Survivor and Supplemental Retirement PlanPVCPolyvinyl chloride
FERCFederal Energy Regulatory CommissionRHRRegional Haze Rule
GCRGeneration Cost Recovery RiderROEReturn on equity
ISOIndependent System OperatorRRRRenewable Resource Rider
IRPIntegrated Resource PlanSECSecurities and Exchange Commission
kwhkilowatt-hourSOFRSecured Overnight Funds Rate
MerricourtMerricourt Wind Energy CenterT.O. PlasticsT.O. Plastics, Inc.
MISOMidcontinent Independent System Operator, Inc.TCRTransmission Cost Recovery Rider
MPUCMinnesota 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

2

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 losses193,797 174,953 
Inventories146,376 148,490 
Regulatory Assets29,921 27,342 
Other Current Assets17,412 17,032 
Total Current Assets460,493 369,354 
Noncurrent Assets
Investments52,966 56,690 
Property, Plant and Equipment, net of accumulated depreciation2,186,643 2,124,605 
Regulatory Assets116,593 125,508 
Intangible Assets, net of accumulated amortization8,218 9,044 
Goodwill37,572 37,572 
Other Noncurrent Assets35,419 32,057 
Total Noncurrent Assets2,437,411 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 Payable121,995 135,089 
Accrued Salaries and Wages27,454 31,704 
Accrued Taxes25,635 19,245 
Regulatory Liabilities21,114 24,844 
Other Current Liabilities45,655 55,671 
Total Current Liabilities241,853 387,699 
Noncurrent Liabilities
Pension Benefit Liability50,489 73,973 
Other Postretirement Benefits Liability67,352 66,481 
Regulatory Liabilities240,545 234,430 
Deferred Income Taxes212,838 188,268 
Deferred Tax Credits16,102 16,661 
Other Noncurrent Liabilities60,942 62,527 
Total Noncurrent Liabilities648,268 642,340 
Commitments and Contingencies (Note 9)
Capitalization
Long-Term Debt, net of current maturities823,760 734,014 
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 Capital422,448 419,760 
Retained Earnings560,398 369,783 
Accumulated Other Comprehensive Loss(6,978)(6,524)
Total Shareholders' Equity1,184,023 990,777 
Total Capitalization2,007,783 1,724,791 
Total Liabilities and Shareholders' Equity$2,897,904 $2,754,830 
See accompanying notes to consolidated financial statements.
3

OTTER TAIL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands, except per-share amounts)2022202120222021
Operating Revenues  
Electric$142,747 $118,775 $404,112 $348,629 
Product Sales241,109 197,519 754,688 514,983 
Total Operating Revenues383,856 316,294 1,158,800 863,612 
Operating Expenses
Electric Production Fuel24,972 17,698 54,538 44,576 
Electric Purchased Power19,913 9,878 64,604 40,273 
Electric Operating and Maintenance Expenses39,799 36,465 126,460 114,615 
Cost of Products Sold (excluding depreciation)139,361 134,212 443,586 358,767 
Other Nonelectric Expenses16,524 16,224 50,981 45,587 
Depreciation and Amortization22,716 22,815 69,829 68,109 
Electric Property Taxes4,438 4,474 13,304 13,136 
Total Operating Expenses267,723 241,766 823,302 685,063 
Operating Income116,133 74,528 335,498 178,549 
Other Income and Expense
Interest Charges9,259 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 Taxes106,752 64,578 308,322 150,532 
Income Tax Expense22,513 11,824 66,143 25,380 
Net Income$84,239 $52,754 $242,179 $125,152 
Weighted-Average Common Shares Outstanding:
Basic41,600 41,504 41,582 41,487 
Diluted41,974 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.
4

OTTER TAIL CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2022202120222021
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.
5

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 CapitalRetained
Earnings
Accumulated
Other
Comprehensive
Income (Loss)
Total Shareholders' Equity
Balance, June 30, 202241,630,799 $208,154 $421,951 $493,351 $(6,913)$1,116,543 
Stock Issued Under Share-Based Compensation Plans, net of shares withheld for employee taxes153 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, 202241,630,952 $208,155 $422,448 $560,398 $(6,978)$1,184,023 
Balance, June 30, 202141,538,709 $207,694 $417,870 $297,850 $(8,291)$915,123 
Stock Issued Under Share-Based Compensation Plans, net of shares withheld for employee taxes1,275 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, 202141,539,984 $207,700 $418,568 $334,385 $(8,171)$952,482 
Balance, December 31, 202141,551,524 $207,758 $419,760 $369,783 $(6,524)$990,777 
Stock Issued Under Share-Based Compensation Plans, net of shares withheld for employee taxes79,428 397 (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, 202241,630,952 $208,155 $422,448 $560,398 $(6,978)$1,184,023 
Balance, December 31, 202041,469,879 $207,349 $414,246 $257,878 $(8,507)$870,966 
Stock Issued Under Share-Based Compensation Plans, net of shares withheld for employee taxes70,105 351 (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, 202141,539,984 $207,700 $418,568 $334,385 $(8,171)$952,482 
See accompanying notes to consolidated financial statements.
6

OTTER TAIL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
Nine Months Ended September 30,
(in thousands)20222021
Operating Activities  
Net Income$242,179 $125,152 
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities:
Depreciation and Amortization69,829 68,109 
Deferred Tax Credits(558)(558)
Deferred Income Taxes23,648 18,835 
Discretionary Contribution to Pension Plan(20,000)(10,000)
Allowance for Equity Funds Used During Construction(938)(427)
Stock Compensation Expense6,141 6,354 
Other, Net5,477 (2,747)
Changes in Operating Assets and Liabilities:
Receivables(18,845)(64,800)
Inventories3,632 (22,450)
Regulatory Assets170 5,301 
Other Assets1,789 (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 Benefits1,308 5,393 
Net Cash Provided by Operating Activities287,973 154,752 
Investing Activities
Capital Expenditures(123,227)(117,312)
Proceeds from Disposal of Noncurrent Assets3,803 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 Debt90,000  
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 Equivalents71,450 109 
Cash and Cash Equivalents at Beginning of Period1,537 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
7

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)2022202120222021
Operating Revenue
Electric$142,747 $118,775 $404,112 $348,629 
Manufacturing98,767 89,977 306,921 250,085 
Plastics142,342 107,542 447,767 264,898 
Total$383,856 $316,294 $1,158,800 $863,612 
Net Income (Loss)
Electric$24,847 $22,528 $62,938 $55,547 
Manufacturing6,219 4,200 17,858 15,290 
Plastics55,982 28,410 170,788 60,102 
Corporate(2,809)(2,384)(9,405)(5,787)
Total$84,239 $52,754 $242,179 $125,152 
8

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 
Manufacturing253,819 251,044 
Plastics179,925 162,565 
Corporate116,699 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)2022202120222021
Operating Revenues
Electric Segment
Retail: Residential$35,122 $33,902 $108,883 $100,067 
Retail: Commercial and Industrial83,022 60,557 232,532 185,376 
Retail: Other2,033 1,979 6,004 5,687 
  Total Retail120,177 96,438 347,419 291,130 
Transmission13,156 13,300 37,409 37,085 
Wholesale7,196 6,944 13,196 14,711 
Other2,218 2,093 6,088 5,703 
Total Electric Segment142,747 118,775 404,112 348,629 
Manufacturing Segment
Metal Parts and Tooling84,054 76,455 261,923 210,141 
Plastic Products and Tooling12,723 10,198 36,584 30,624 
Scrap Metal Sales1,990 3,324 8,414 9,320 
Total Manufacturing Segment98,767 89,977 306,921 250,085 
Plastics Segment
PVC Pipe142,342 107,542 447,767 264,898 
Total Operating Revenue383,856 316,294 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 
Other9,052 10,591 
Unbilled Receivables18,813 23,901 
Total Receivables195,345 176,789 
Less: Allowance for Credit Losses(1,548)(1,836)
Receivables, net of allowance for credit losses$193,797 $174,953 
9

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)20222021
Beginning Balance, January 1$1,836 $3,215 
Additions Charged to Expense518 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 Process33,765 35,705 
Finished Goods38,362 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 Securities8,710 9,202 
Money Market Funds1,854 949 
Mutual Funds5,084 5,432 
Other Investments30 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 Progress130,486 74,926 
Total Gross Electric Plant2,926,135 2,833,371 
Less Accumulated Depreciation and Amortization850,741 817,302 
Net Electric Plant2,075,394 2,016,069 
Nonelectric Property, Plant and Equipment
Nonelectric Property, Plant and Equipment in Service281,584 273,950 
Construction Work in Progress20,746 16,611 
Total Gross Nonelectric Property, Plant and Equipment302,330 290,561 
Less Accumulated Depreciation and Amortization191,081 182,025 
Net Nonelectric Property, Plant and Equipment111,249 108,536 
Net Property, Plant and Equipment$2,186,643 $2,124,605 
10

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 ofSeptember 30, 2022December 31, 2021
(in thousands)Recovery/RefundCurrentLong-TermCurrentLong 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
Various412 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