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.