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Otter Tail Corp

OTTR

Utilities

3

exclusion reasons

2 themes

Fossil Fuels (2) Environmental Harm (1)
OTTR Utilities Current as of March 2026

This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.

Coal Operations
Since Mar 7, 2017

Otter Tail Power Company, the utility subsidiary of Otter Tail Corporation, operates a generation fleet that is approximately 65% coal-fired. Its Big Stone coal plant in South Dakota is a central asset, and the company previously applied for permits to construct the coal-fired Big Stone II facility. The utility ships roughly two million tons of coal annually for its operations. In 2009, the Eighth Circuit Court of Appeals heard a case, Sierra Club v. Otter Tail Power Company, concerning alleged Prevention of Significant Deterioration violations at its plant. While Otter Tail has announced plans to add more renewable generation, its current strategy and capital investments maintain a coal-dominant electricity mix for its approximately 134,000 customers in the Upper Midwest.

General Fossil Fuels
Since Mar 7, 2017

Otter Tail Corporation operates a vertically integrated electric utility, Otter Tail Power Company, which serves approximately 150,000 customers in Minnesota, North Dakota, and South Dakota. The company’s generation fleet is heavily reliant on fossil fuels. As of its most recent reporting, approximately 60% of its owned capacity is coal-fired, including its ownership stake in the Big Stone and Coyote Station plants, with most of the remaining capacity coming from natural gas and oil.

The company has been a direct participant in fossil fuel infrastructure development and advocacy. It was a partner in the proposed Big Stone II coal-fired power plant project in South Dakota, which was subject to extensive regulatory and legal challenges from environmental groups over its climate and environmental impacts before being canceled. Otter Tail has also historically cited federal climate policy uncertainty as a material business risk while continuing to operate and maintain its fossil fuel-based generation assets without a public, time-bound plan for their phase-out.

While Otter Tail has made incremental investments in wind energy, these additions have not substantively altered the carbon-intensive base of its generation portfolio. The company’s core utility business model remains tied to the ongoing combustion of fossil fuels for electricity production.

Environmental Damage
Since Apr 14, 2016

Otter Tail Corporation, through its Otter Tail Power Company subsidiary, operates coal-fired power plants that have generated documented environmental contamination. The company’s Big Stone Plant in South Dakota and Hoot Lake Plant in Minnesota (now retired) have been associated with coal ash disposal concerns. Coal combustion residuals from these facilities contain heavy metals like arsenic, lead, and mercury, which pose risks of groundwater and soil contamination.

In a separate incident, Green Plains Otter Tail, LLC—an ethanol production facility located in Otter Tail County, Minnesota, and sharing the Otter Tail name—was the site of a significant industrial explosion in 2018. The subsequent product liability lawsuit, *Green Plains Otter Tail, LLC v. Pro-Environmental, Inc.*, centered on allegations of defective equipment and inadequate safety warnings. While this facility is not owned by Otter Tail Corporation, the association underscores the type of industrial hazard present in the region bearing its name. For its directly owned operations, Otter Tail Power has faced regulatory scrutiny, including in North Dakota where project approvals have been challenged for failing to adequately evaluate environmental compatibility and alternatives as required by state law.

Research Sources 1 organization
External

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Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.

This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.

Ethical Capital LLC is a state-registered investment adviser in Utah (CRD #316032). Registration does not imply a certain level of skill or training.