Click link to access full notification: Rate change notification 2026-27 6% Paper 9-22.pdf

ROCHESTER, Minn. — The Rochester Public Utilities (RPU) Board of Directors has passed a resolution reaffirming its commitment to achieve 100% net renewable electricity by 2030. The resolution directs staff to prioritize renewable energy options while balancing system reliability, affordable rates, and environmental responsibility.

This action reflects both RPU’s long-term vision and the community’s voice. In a recent survey of nearly 1,900 customers, seven in ten respondents supported RPU’s 100% net renewable goal. In pursuing that goal, six in ten customers expressed support for a measured approach that balances rates, reliability, and environmental responsibility. The Board’s decision to continue pursuing the 2030 goal reflects this balance. It recognizes that while early investments are necessary now, many challenges remain and future decisions will need to be made. The Board has provided clarity to keep the public interest at the center while balancing priorities for Rochester’s future.

RPU has already taken significant steps toward this goal, including authorizing development of Mount Simon Station to support system reliability and securing 245 megawatts of wind resources that will come online before 2030.

“Today’s action reflects our dedication to Rochester’s future,” said RPU General Manager Tim McCollough. “We are investing wisely to make sure our community enjoys reliable, affordable, and sustainable energy for years to come.”

Investments in Reliability and Sustainability

To maintain and improve utility services, RPU is planning rate adjustments in 2026 and 2027. For the average residential customer, this means an increase of about $2 per month in water and $6 per month in electric service.

These investments will allow RPU to:

• Replace century-old water infrastructure.
• Strengthen the electric grid with vegetation management and equipment upkeep.
• Expand renewable energy resources while federal tax credits are available.
• Continue modernizing with advanced metering technology.

Community members will have additional opportunities to provide feedback at public meetings this fall before Rochester City Council makes a final decision in December.

About Rochester Public Utilities

As the municipal utility of Rochester, Minn., RPU provides high-quality and reliable electricity to more than 61,000 customers, along with water services to over 42,000 customers. RPU is governed by a five-member Utility Board and the Rochester City Council. The utility continually explores innovative technologies to help customers maximize the value of the services they receive, with current initiatives including photovoltaic offerings, wind energy, energy and water-efficient equipment, and electric vehicle charging.

Rochester, Minn. — Rochester Public Utilities (RPU) has received approval from the Rochester City Council, following a recommendation from the RPU Utility Board, to move forward with a long-term wind energy purchase agreement that will serve as the foundation of RPU’s renewable energy future.

The agreement accounts for approximately 5% of RPU’s typical annual electric usage. It will provide predictable, stable energy costs while helping RPU achieve its goal of delivering 100% renewable energy.

“This contract represents a critical step in securing Rochester’s renewable energy future,” said RPU General Manager Tim McCollough. “It is the first of several contracts that give us both cost certainty and a clear path toward compliance with Minnesota’s Carbon Free Standard, while also laying the groundwork for Rochester’s local 100% net renewable energy strategy.”

“This agreement demonstrates RPU’s commitment to sustainable, forward-looking solutions that benefit our entire community,” said Wendy Turri, RPU Board Vice President. “By investing in local and regional renewable energy resources, we are taking meaningful steps toward meeting our 100% renewable energy goal while keeping affordability at the forefront.”

About the Project

The project is located in Adams, Minnesota, a little over 30 miles from Rochester, and was recently acquired by Restore Renewable II, LLC – a company based in Rochester. The project will operate as acquired until it is repowered soon with upgraded turbines.

Strategic Benefits

By executing this contract ahead of the April 1, 2030, expiration of RPU’s current supply agreement with the Southern Minnesota Municipal Power Agency (SMMPA), RPU can take advantage of federal renewable energy tax credits extended by the Inflation Reduction Act and reaffirmed in the federal reconciliation bill signed July 4, 2025, for repowering the facility. This early adoption locks in financial benefits before the credits sunset and provides flexibility to bank renewable energy credits (RECs) for future compliance.

“This project sets the first stone for a strategy that not only strengthens our portfolio with reliable renewable resources but also protects customers against rising and unpredictable market prices over the long term,” said Bill Bullock, RPU Director of Power Resources.

Looking Ahead

The addition of this project positions RPU to meet state requirements while delivering on its commitment to sustainability and cost-conscious energy planning. Together with existing resources like Lake Zumbro Hydro and Valley High Solar, the contract advances RPU’s mission to achieve a fully renewable energy portfolio.

Two more wind projects, recommended by the RPU Utility Board, are expected to come before the Rochester City Council for approval in the near future. If approved, these projects will further expand RPU’s renewable energy resources and strengthen its path toward a 100% renewable energy future.

Rochester, Minn. – Rochester Public Utilities (RPU) is pleased to announce that trails and bridges impacted by the Marion Road Duct Bank Project are now open to the community. With the underground duct bank construction substantially complete, crews have shifted their focus to cleanup and site restoration, allowing residents to once again enjoy these popular routes through Slatterly Park, Bear Creek, and Soldier’s Field Park.

The Marion Road Duct Bank Project is designed to strengthen Rochester’s electrical system and prepare for future growth by installing underground power lines connecting the new Marion Road Substation to southeast and downtown Rochester. Reopening the trails marks a significant step forward for both the project and the community.

“We know how important these trails and parks are to our community, and we’re excited to see them open again,” said RPU General Manager Tim McCollough. “We greatly appreciate the patience and support of Rochester residents as we complete this work to build a stronger, more reliable energy system for the future.”

As restoration efforts wrap up, some additional short-term closures of trail and bridge crossings will take place later this year when crews begin installing electrical cable in the new duct bank. Each closure is expected to last only a few days to a week. Over the next one to two years, there may also be temporary closures of trails and sidewalks as crews address identified quality issues.

RPU remains committed to minimizing disruptions as the Marion Road Duct Bank Project progresses and thanks the community for its continued cooperation during this important infrastructure improvement.

About Rochester Public Utilities

As the municipal utility of Rochester, Minn., for over 130 years, RPU provides high-quality and reliable electricity to more than 61,000 customers, along with water services to over 42,000 customers. RPU is governed by a five-member Utility Board and the Rochester City Council. The utility continually explores innovative technologies to help customers maximize the value of the services they receive, with current initiatives including photovoltaic offerings, wind energy, energy and water-efficient equipment, and electric vehicle charging.

Rochester Public Utilities (RPU), with full support from the RPU Board, has engaged GreatBlue Research, Inc. to conduct a customer survey aimed at guiding key decisions that will shape the future of local utility services. RPU staff are collaborating closely with the research firm to ensure a smooth and effective process.

Customer feedback will play a pivotal role in influencing upcoming choices related to rates, programs, and renewable energy initiatives. Beginning this week, RPU customers with an email address on file will receive a direct link to the online survey. Additionally, some customers may be invited to participate via phone.

RPU General Manager Tim McCollough shares, “Customer feedback is a key part of how we plan for the future at RPU. The survey results will guide important decisions on rates, programs, and renewable energy options. Taking a few minutes to complete it will ensure your voice is part of that process.”

RPU customers should look for an email from GreatBlue Research. If customers do not see it in their inbox, they should check their spam or junk folder. Any questions about the survey should be directed to GreatBlue Research at 860-740-4000.

RPU encourages all recipients to take a few moments to complete the brief questionnaire. The survey will remain open until September 2. Findings will be presented to the RPU Board at its September 30 meeting and are intended to help guide future strategic decisions.

###

About Rochester Public Utilities

As the municipal utility of Rochester, Minn., for over 120 years, RPU provides high-quality and reliable electricity to more than 60,000 customers, along with water services to over 42,000 customers. RPU is governed by a five-member Utility Board and the Rochester City Council. The utility continually explores innovative technologies to help customers maximize the value of the services they receive, with current initiatives including photovoltaic offerings, wind energy, energy and water-efficient equipment, and electric vehicle charging.