-- US holding company Otter Tail (OTTR) Monday reported a rise in Q1 retail electricity sales volume, resulting in higher revenue for the electric segment.
For the quarter ended March 31, retail electricity sales grew to 1.716 terawatt-hours from the previous year's 1.673 TWh, boosting segment revenue to $165.9 million from $149.7 million.
The company said that higher rates also contributed to revenue increase. In Minnesota and South Dakota, interim rates became effective in January 2026 and December 2025, respectively. In North Dakota, updated base rates took effect in March 2025.
Higher fuel recovery revenue due to increased generation from natural gas and coal-fired facilities, as well as improved investment recovery, also served as tailwinds, according to Otter Tail.
The company's manufacturing segment also logged a 4% increase in sales volume in Q1, with revenue rising year over year to $89.6 million from $81.7 million.
"Demand improved in certain markets we serve, including the construction and recreational vehicle markets, compared to softer demand and tighter inventory management efforts during the same period last year," the firm said.
Otter Tail's plastics business also posted a 7% growth in sales volume, but a 19% decrease in average sales prices dragged revenue down to $91.6 million from the prior year's $105.9 million.