Fergus Falls-based Otter Tail Corp. is expecting to record a charge of nearly $1.7 million in the first quarter due to the recent federal health care overhaul. According to Otter Tail Corporation, in a regulatory filing earlier this week, the charge will amount to 5 cents per share.
Otter Tail Corporation, among other companies, currently receive a government subsidy to keep prescription drug benefits for their retirees, and have been able to deduct their expenses. However, under the recently passed health care legislation, that will end in 2013.
Companies throughout the country are announcing the charges now because accounting rules dictate that they must book them during the period a new law is enacted.
Otter Tail Power, based in Fergus Falls, Minn., provides electricity to roughly 130,000 customers in Minnesota, North Dakota, and South Dakota. According to the company website, they have over $1.2 billion in revenues and over 4,000 employees across many industries. They have diversified operations in electric, manufacturing, health services, food ingredient processing, plastics, construction, as well as transportation.
