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.

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.

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.