Another blow against coal

Otter Tail Power Company Announces Withdrawal From Big Stone II

FERGUS FALLS, Minn., Sept. 11, 2009 (GLOBE NEWSWIRE) -- Otter Tail Power Company today announced its withdrawal -- both as a participating utility and as the project's lead developer -- from Big Stone II, a 500-to-600-megawatt coal-fired power plant proposed for near Milbank, South Dakota, with related transmission upgrades in South Dakota and Minnesota.

According to Otter Tail Power Company President and CEO Chuck MacFarlane, the broad economic downturn coupled with a high level of uncertainty associated with proposed federal climate legislation and existing federal environmental regulation have resulted in challenging credit and equity markets that make proceeding with Big Stone II at this time untenable for Otter Tail's customers
and shareholders.

MacFarlane explained that Big Stone II contractual agreements require a commitment to proceed after the project receives all major permits, creating a financial obligation on each party that agrees to go forward. "Each Big Stone II participant is in a different position in terms of means and impact of raising capital and mechanisms for recovering those costs from customers," he said. "Given the legislative and regulatory uncertainties and current economic
conditions, Otter Tail Power Company is unwilling to create a binding financial obligation of approximately $400 million for its share of the project at this time."

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