FERGUS FALLS, Minn., Aug. 11, 2008 (PRIME NEWSWIRE) -- Otter Tail Power Company has entered into an agreement with M-Power, LLC, to purchase a portion of its Luverne Wind Farm under development in east central North Dakota. Otter Tail Power Company's portion of the construction-ready site can support wind turbines with a total capacity of up to 49.5 megawatts (MW). M-Power is requesting site and transmission route approval for the full 157.5-MW project from the North Dakota Public Service Commission. M-Power and Otter Tail Power Company expect to close the purchase later in 2008, subject to PSC approval and other standard conditions.
Long-term studies show that Griggs and Steele Counties have about 500 MW of developable wind resources. M-Power's ten-year plan calls for further developments in the area. Co-founder and M-Power President Keith Monson said, "We've been at this for about ten years now. This is a significant achievement for us, especially to be able to strike a deal with a local utility."
Otter Tail Power Company President Chuck MacFarlane said that taking part in this homegrown effort by M-Power will benefit Otter Tail customers and the region. "While the sale is contingent on receiving various approvals and permits, completing the Luverne Wind Farm would increase the amount of economical wind-generated electricity owned or purchased by Otter Tail Power Company to 179.5 MW," he said. "That's enough to power approximately 52,000 homes."
M-Power's Monson said, "The broad economic benefits to the area will be tremendous. Moreover, the local economic development agencies also will have a long-term resource for sustaining our economic development efforts."
MacFarlane added that Otter Tail Power Company is committed to diversifying and balancing its supply mix, which includes conservation, renewables, and efficient traditional baseload resources. "Relative to our size, our company has one of the highest levels of investment in wind generation among utilities nationwide," MacFarlane said.
M-Power, LLC, based in Finley, North Dakota, is a locally owned wind resource development company. Its mission is to develop wind generation and associated renewable energy projects that offer landowners and local investors an opportunity to share in the economic benefits of such projects.
Otter Tail Power Company, a division of Otter Tail Corporation, is headquartered in Fergus Falls, Minnesota. The company provides low-cost electricity using conservation and through a balanced mix of energy resources including baseload coal plants, natural gas, and renewable wind energy, to nearly a quarter million people in Minnesota, North Dakota, and South Dakota. To learn more about Otter Tail Power Company, visit its web site at www.otpco.com.
Otter Tail Corporation has interests in diversified operations that include an electric utility, manufacturing, health services, food ingredient processing, and infrastructure businesses that include plastics, construction and transportation. Otter Tail Corporation stock trades on the NASDAQ Global Select Market under the symbol OTTR. The latest investor and corporate information is available at www.ottertail.com. Corporate offices are located in Fergus Falls, Minnesota, and Fargo, North Dakota.
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Forward-looking Statements
Except for historical information, all other information provided in this release consists of "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These "forward-looking statements" are subject to risks and uncertainties which could cause actual results to differ materially from those projected, anticipated, or implied. The most significant of these risks and uncertainties are discussed or identified in Otter Tail Corporation's public filings made with the Securities and Exchange Commission. Otter Tail Corporation undertakes no obligation to publicly update or revise any forward-looking statements.