Rochester, MN (KROC-AM News)- The Rochester Public Utilities (RPU) Board is moving forward with a commitment to 100% renewable energy and rate hike.
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RPU Board members approved a resolution affirming the commitment Tuesday.
“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.”
RPU Board Approves Increases to Electric & Water Rates Starting Next Year, Affirms 100% Renewable Energy Commitment by 2030
RPU and the City of Rochester previously adopted a policy to meet a net-zero energy goal by 2030, which calls for reducing greenhouse gas emissions by 50% through the use of wind and solar power generation and large battery storage facilities.
That’s 10 years ahead of the goal set by the State of Minnesota for meeting a net-zero energy standard. An increase in electrical service rates and water rates coincides with the reaffirmed commitment to renewable energy by 2030.
Board members approved hiking electric rates by $5.78 per month in 2026 and $6.12 per month in 2026 for the average customer. Water rates for average customers will rise by $2.01 per month in 2026 and $2.19 per month in 2027.
The utility provider’s board considered aligning with the state’s 100% carbon-free by 2040 standard.
A report shown to the board earlier this year indicated the 10-year postponement would delay certain solar and wind investments and lower the recommended annual general revenue increase to 4% per year instead of 6%.
However, uncertainty regarding tariffs, raw material prices, tax credits and other factors could result in RPU customers shelling more money for their monthly bills if the board chose to delay.
An RPU news release says the higher rates will also help cover the cost for replacing century-old water infrastructure, enhance the strength of the electric grid with vegetation management and equipment upkeep.
The rate increase will also allow RPU to expand renewable energy resources while federal tax credits are available, and to continue implementing advanced metering technology.