RPU to make $5 million in budget cuts and deferrals
RPU to make $5 million in budget cuts and deferrals
ROCHESTER, MN— Rochester Public Utilities (RPU) announces a proactive plan to make a combination of budget cuts and deferrals of approximately $5 million starting in early April. Components of this plan are to be presented at the March RPU Board Meeting on March 31.
RPU is proposing these cuts and deferrals to reduce upward pressure on rates and to greater ensure future budget balance. Approximately $2.9 million of the cuts and deferrals are capital and major projects. Other projects and work that can be scheduled out into a future year or can be accomplished through other means will be rescheduled or postponed. No staff reductions are being sought at this time.
Almost 60 percent of RPU’s budgeted expenses are wholesale power from Southern Minnesota Municipal Power Agency. For 2009, $91 million was budgeted for purchased power.
“The 2009 budget was developed and set in late 2008 during when the financial institutions were starting to collapse and on the leading edge of the current economic downturn. Since that time, the economy has continued to slow, along with a decline in wholesale markets and commodity sales. With anticipation of continued economic challenges, we are taking measures to remain fiscally sound in these uncertain times while maintaining a high level of reliable service,” said Larry Koshire, RPU General Manager.
RPU board meetings are open to the public and are held on the last Tuesday of each month at the RPU Service Center.
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.
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