Valley Queen Cheese Files Complaint Against Otter Tail Power Over Fair Pricing Dispute | Local News

{KXLG – Milbank, SD} Valley Queen Cheese Factory, Inc., a significant employer and economic contributor in Milbank, South Dakota, has filed a formal complaint with the South Dakota Public Utilities Commission (PUC) against Otter Tail Power Company. The complaint, filed on July 9, 2025, alleges that Otter Tail Power is unfairly applying a specific charge, known as the Phase In Rider (PIR), to Valley Queen’s Real Time Pricing (RTP) electricity tariff.

According to documents filed with the PUC, Valley Queen, which recently completed a major expansion, purchases all of its electricity from Otter Tail Power. Valley Queen is currently the sole customer in South Dakota receiving service under Otter Tail’s RTP tariff.

At the core of the complaint is the application of the PIR to the RTP tariff. The Real Time Pricing (RTP) tariff is a rate structure where electricity prices vary by the hour, reflecting real-time market conditions. The Phase In Rider (PIR), on the other hand, is a charge designed to allow Otter Tail to recover costs associated with its power supply assets, such as new power plants or infrastructure projects. Valley Queen argues that applying the PIR to RTP is unjust because RTP rates are market-dependent, not based on Otter Tail’s fixed costs, resulting in what they describe as an illogical charge and a “windfall” for Otter Tail.

The complaint, as stated in PUC documents, also highlights that the PIR is not applied to other similar rate adjustments offered by Otter Tail, such as the Energy Adjustment Rider or the Voluntary Renewable Energy Rider.

Valley Queen has engaged in discussions with Otter Tail Power regarding this issue since June 2023, but no resolution has been reached. The company claims it paid $213,269.27 due to the application of the PIR to its RTP billing between June 2023 and June 2025, according to the filed complaint.

Valley Queen is asking the PUC to issue an order stating that the PIR should not apply to the RTP tariff. Additionally, they are seeking to have Otter Tail Power credit the company for all charges incurred due to this application since at least June 2023.

The South Dakota Public Utilities Commission is responsible for hearing such customer complaints against regulated utility companies. Otter Tail Power Company has been notified of the complaint and has until July 29, 2025, to submit a written response or resolve the matter. EL25-026 (link to PUC information)