RPU Board to Consider Updated 2026–2027 Utility Rate Adjustment and Electric Utility Budget
ROCHESTER, Minn. – Rochester Public Utilities (RPU) management has recommended an updated 2026 rate adjustment for the electric utility for consideration at the October 28, 2025, RPU Board meeting. The recommendation reflects updated wholesale cost information from the Southern Minnesota Municipal Power Agency (SMMPA) and the RPU Board’s continued commitment to aligning rates with costs, maintaining financial stability, and supporting customers.
Under the updated proposal, RPU recommends revising the electric utility rate adjustment to a 4.0 percent general rate adjustment in 2026 replacing the previously proposed 6.0 percent general rate adjustment.
SMMPA’s final 2026 budget that was adopted on October 17, 2025, includes lower-than-budgeted wholesale power costs, primarily due to the retirement of the debt service costs associated with Sherco Unit 3 being passed through to the agency members. For Rochester, this change represents about $4 million in additional power cost savings, allowing RPU to lower the 2026 retail rate adjustment from 6.0 percent to 4.0 percent while maintaining a strong financial position.
The updated budget still includes RPU’s planned addition of 245 megawatts of new wind resources before 2030 as part of the city’s 100 percent net renewable energy goal, and continued investment in new capacity resources at the Mount Simon Station, ensuring long-term reliability as RPU transitions from its current wholesale power contract in 2030.
The average residential customer is expected to see an estimated monthly impact of:
- Water: +$2.01/month in 2026 and +$2.19/month in 2027
- Electric: +$3.85/month in 2026 and +$6.01/month in 2027
All other budget assumptions remain consistent with the version reviewed by the Board and City Council earlier this year, except for the reduction in wholesale power expense.
If approved, the proposed rate tariff adjustments and associated budgets will be forwarded to the Rochester City Council for inclusion in the December 1, 2025, budget approval process.
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.
Posted: Oct 28, 2025 by Raquel Hellman | Comments Off on RPU Board to Consider Updated 2026–2027 Utility Rate Adjustment and Electric Utility Budget
Rochester Public Utilities and the City of Rochester and Awarded Funding for Solar Energy Projects
ROCHESTER, Minn. – The City of Rochester and Rochester Public Utilities (RPU) have each been awarded funding through the Minnesota Solar on Public Buildings Program to install new solar energy systems on the rooftops of their facilities. The projects will expand renewable energy resources in Rochester, support sustainability goals, and reduce reliance on fossil fuels.
Through this state program, both the City and RPU will receive a combination of grant funding and direct pay federal tax credits that will cover the full cost of each solar installation. By taking advantage of this funding, the projects reduce cost pressures while contributing to Rochester’s broader clean energy transition.
Rochester Public Utilities Project
At the RPU Service Center, a 55.2 kW DC roof-mounted solar array will be installed by Summer 2026. The total project cost is estimated at approximately $130,000.
“This system expands RPU’s renewable energy portfolio and represents another step in advancing toward our community’s goal of achieving 100% net renewable electricity by 2030,” said James Dessner, RPU Manager of Utility Fleet and Facility Services. “By investing in solar, we’re reducing greenhouse gas emissions, improving air quality, and making progress in a fiscally responsible way.”
City of Rochester Project
On the City side, a 55.2 kW DC roof-mounted solar array will be installed on the roof of the Rochester Police Department North Precinct/Development Services & Infrastructure Center (DSIC). Per grant requirements, construction will begin in 2025. This system will offset approximately 15% of the shared energy usage of the two facilities and marks the first solar array installed on a City of Rochester-owned building.
“The installation of this array represents an important milestone,” said Zack Wood, Manager of Facilities and Property. “It demonstrates our commitment to sustainability and paves the way for future renewable energy projects on City facilities.”
Commitment to Renewable Energy
These solar projects align with Rochester’s broader sustainability goals, including RPU’s target of achieving 100% net renewable electricity by 2030. By leveraging available grant and tax credit funding, the City and RPU are able to make impactful investments while minimizing costs to residents.
For homeowners or businesses interested in exploring their own rooftop solar projects, more information is available at rpu.org/education-environment/distributed-energy-resources-solar.php.
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.
Posted: Oct 21, 2025 by Raquel Hellman | Comments Off on Rochester Public Utilities and the City of Rochester and Awarded Funding for Solar Energy Projects
Lake Zumbro Fall Drawdown Begins October 15
ROCHESTER, MN— Rochester Public Utilities (RPU) will begin the fall drawdown of Lake Zumbro on Wednesday, October 15. This means the water level will be lowered to allow for inspection and maintenance work at the hydroelectric facility, as well as other shoreline and park projects. This year’s drawdown will be larger than usual, with the lake lowered about six feet instead of the typical two feet. The timing and water levels may change depending on rainfall and runoff.
RPU’s drawdown plan is as follows:
- Wednesday, October 15: Begin the six foot drawdown.
- October 15–October 27: Lower the lake level by 0.5 feet per day while maintaining a minimum flow of 70 cfs.
- Monday, October 27: Hold the lake level at 908.5 MSL (about six feet below the spillway) for two weeks.
- Monday, November 10: Begin refilling the lake level until it reaches the winter pool elevation of 913.0 MSL.
- November 10 onward: Continue refilling while maintaining a minimum flow of 70 cfs.
The drawdown plan is subject to change depending on weather conditions.
During the months of December through March, Rochester Public Utilities (RPU) will attempt to maintain the lake level at the winter pool of 913.0 MSL.
Real-time lake level information, along with Lake Zumbro hydro updates, are available on the RPU website (www.rpu.org).
As winter approaches, RPU also reminds the public to take extra precautions when using Lake Zumbro for seasonal activities.
Tips for lake ice safety:
- Be extremely careful during winter activities that involve Lake Zumbro such as ice fishing, snowmobiling, or just walking out on the frozen lake.
- Watch the weather and river flow conditions.
- Ice thickness and condition can vary greatly. Be very cautious.
- Look out for ice heaves and exposed logs and snags.
- Be cautious in the vicinity of the dam. De-icing equipment has been installed along the upstream face of the dam resulting in open water and/or thin ice.
- Do not proceed past the warning signs and buoys.
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.
Posted: Oct 08, 2025 by Raquel Hellman | Comments Off on Lake Zumbro Fall Drawdown Begins October 15
Proposed 2026 and 2027 budget and rate increase notification
Click link to access full notification: Rate change notification 2026-27 6% Paper 9-22.pdf
Posted: Oct 01, 2025 by Raquel Hellman | Comments Off on Proposed 2026 and 2027 budget and rate increase notification
RPU Board Reaffirms Commitment to 100% Net Renewable Energy by 2030
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.
Posted: Sep 30, 2025 by Raquel Hellman | Comments Off on RPU Board Reaffirms Commitment to 100% Net Renewable Energy by 2030