Rochester Public Utilities | Blog

RPU Board approves 2009 budget including a 5% electric rate increase and no water increase effective January 1

ROCHESTER, MN—The Rochester Public Utilities (RPU) Utility Board approved today, a 2009 budget that includes a 5% electric rate increase and no rate increase for the water utility effective January 1. With the increase, the average residential customer’s electric bill will increase by approximately $3.84 per month.

 

Approximately two-thirds of RPU’s expenses are dictated by purchased power costs from its wholesale energy provider, Southern Minnesota Municipal Power Agency (SMMPA). SMMPA recently announced an increase of 6% for their member utilities, which equates to over $91 million of RPU’s budget.  The electric increase is driven primarily by upward pressure on fuel costs to generate electricity as well as for fuel transportation.

 

An increase for the water utility was not necessary this year. RPU’s water rates continue to be among the lowest in the region when compared with similar size water utilities. Through previous financing and prior rate increases, cash-flow has stabilized and will not require a rate increase for the water utility.

 

The electric increase primarily reflects inflationary increases, but RPU has taken measures to mitigate the effects of the increase by:

 

·         Holding 2009 operating budget at 2008 levels

·         Deferring capital projects

 

 “We are committed to maintaining the service and reliability that our customers expect from us, while doing everything possible to operate in a safe manner and remain fiscally sound. A modest increase of 5% for the electric utility and no proposed increase for the water utility, we feel will support the growth of the Rochester community and will also provide the infrastructure support needed to greater ensure electric reliability,” said Larry Koshire, RPU General Manager.

 

The City Council will now have to approve the budget that was approved by the Utility Board.  The next City Council meeting will be on December 15. For more information on the 2009 budget or for information on energy and water conservation, go to www.rpu.org or call (507) 280-1540. 

 

About Rochester Public Utilities

 

As the municipal utility of Rochester, Minn., for more than 110 years, RPU provides high-quality and reliable electricity to over 47,000 customers.  Water customers number more than 36,000.  RPU continually investigates innovative technologies to help customers realize the best value from the services they receive.  Current initiatives include fuel cell research, wind power, and photovoltaic offerings.

 

 

 

###