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Bismarck, N.D. (AP) A proposed settlement of an Otter Tail Power electric rate case includes about $673,000 in refunds to North Dakota customers.

North Dakota's Public Service Commission may approve the settlement Wednesday, although the action could be delayed.

Commissioner Tony Clark says regulators still have questions about Otter Tail's proposed increase in its economic development fund.

Otter Tail applied last November for a 5.1 percent electric rate increase. In January the utility implemented a 4.1 percent increase while the case was pending.

The proposed settlement gives Otter Tail a 3 percent rate rise.

It says the utility has to pay back the higher rates that it's been charging, plus interest. The money comes to more than $673,000.

Otter Tail has about 57,000 North Dakota electric customers. It serves Wahpeton, Jamestown, Devils Lake and other eastern North Dakota communities.

(Copyright 2009 by The Associated Press. All Rights Reserved.) APNP 10-26-09 1426CDT | save this article / add to your favorites list