The marketplace dynamics impacting both our Manufacturing and Plastics segments are fluid and subject to change which may impact our operating results prospectively.

RESULTS OF OPERATIONS - QUARTER TO DATE

CONSOLIDATED RESULTS The following table summarizes consolidated operating results for the three months ended June 30, 2022 and 2021:

Effect on Diluted Earnings Per Share $ 0.03 $ - $ 0.03

Retail Revenues increased $24.6 million primarily due to the following:

•A $5.2 million increase in retail sales volumes from commercial and industrial customers, primarily due to a new commercial customer load in North Dakota.

•A $4.1 million increase in interim rate revenue due to the finalization of the interim rate refund, as approved by the MPUC in the second quarter of 2022.

Other Operating Expenses increased $0.7 million due to increased incentive compensation costs and sales commissions, which increased as a result of increased operating revenues and earnings compared to the previous year.

RESULTS OF OPERATIONS - YEAR TO DATE

Effect on Diluted Earnings Per Share $ 0.07 $ 0.07 $ -

Retail Revenues increased $32.5 million primarily due to the following:

•A $7.4 million increase in retail sales volumes from commercial and industrial customers, primarily due to a new commercial customer load in North Dakota.

•A $4.2 million increase in revenues from the favorable impact of weather in the first six months of 2022 compared to the same period last year.

Purchased Power costs to serve retail customers increased $14.3 million primarily from a 46% increase in the volume of purchased power resulting from the planned outage at Coyote Station, the retirement of Hoot Lake Plant and increased customer demand.

Other Operating Expenses increased $1.7 million primarily due to increased incentive compensation costs and sales commissions, which increased as a result of increased operating revenues and earnings compared to the previous year.

Other Operating Expenses $ 7,417 $ 4,797 $ 2,620 54.6 % Depreciation and Amortization 86 131

The following provides a summary of general rate case filings, rate rider filings and other regulatory filings that have or are expected to have a material impact on our operating results, financial position or cash flows.

The components of OTP's preferred plan include:

-the addition of dual fuel capability at our Astoria Station natural gas plant;

-the addition of 150 megawatts of solar generation in 2025;

-the addition of 100 megawatts of wind generation in 2027;

-the addition of 50 megawatts of solar generation in 2033.

CASH FLOWS The following is a discussion of our cash flows for the six months ended June 30, 2022 and 2021:

Net Cash Provided by Operating Activities $ 175,630 $ 68,574

Net Cash Used in Investing Activities $ 73,895 $ 76,403

Net Cash (Used in) Provided by Financing Activities $ (41,283) $ 8,146

Amount Restricted Due to Outstanding Letters of Credit as of June 30, 2022

Average Amount Outstanding During the Six Months Ended June 30, 2022

Maximum Amount Outstanding During the Six Months Ended June 30, 2022

1Each facility includes an accordion featuring allowing the borrower to increase the borrowing limit if certain terms and conditions are met.

CRITICAL ACCOUNTING POLICIES INVOLVING SIGNIFICANT ESTIMATES

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