ROCHESTER, Minn. – The Rochester Public Utilities (RPU) Board of Directors has reaffirmed its commitment to achieving 100% net renewable electricity by 2030. This decision follows extensive community engagement and reflects a balanced approach that prioritizes renewable energy while maintaining system reliability, affordable rates, and environmental responsibility.

The resolution directs RPU staff to continue focusing on renewable energy options. A recent customer survey showed that seven out of ten respondents support the 2030 net renewable goal, while six out of ten favor a measured approach balancing rates, reliability, and environmental impact. The Board’s reaffirmation acknowledges the need for immediate investments and future planning.

RPU has already made significant progress, including authorizing upgrades to the Mount Simon Station for improved system reliability and acquiring 245 megawatts of wind resources expected to be operational before 2030.

“Today’s action reflects our dedication to Rochester’s future,” said RPU General Manager Tim McCollough. “We are investing wisely to ensure our community enjoys reliable, affordable, and sustainable energy for years to come.”

To maintain and improve services, RPU plans rate adjustments in 2026 and 2027, projecting an average monthly increase of about $2 for water and $6 for electric service for residential customers. These funds will help replace aging water infrastructure, enhance the electric grid through vegetation management and maintenance, expand renewable energy with federal tax credits, and continue modernizing with advanced metering technology.

Community members can provide further input on these plans during public meetings this fall, leading to a final decision by the Rochester City Council in December.

A survey by Great Blue Research, the preferred research firm of the American Public Power Association, collected feedback from nearly 1,900 residential and 16 commercial RPU customers. The survey aimed to measure customer awareness of RPU’s goals, rate structures, and satisfaction levels. Michael Vigeant, CEO of Great Blue Research, noted the study came in well under budget thanks to strong digital engagement.

Key findings showed that while 70.6% support the clean energy goal, 59.4% prefer a slower rollout with lower rate increases. Younger adults (18-35) and households earning $50,000 or less tend to favor a faster transition. Vigeant also pointed out that only about a third of customers nationwide fully understand how utility rates are calculated or how RPU compares to others. However, RPU’s customer satisfaction rate of 60.1% is higher than the national public power average of 65.2%, largely due to positive customer interactions and perceived value.

Regarding rate scenarios in the survey — a 4% annual increase for a 2040 goal or a 6% increase for a 2030 goal– Vigeant emphasized the survey’s focus was on gauging customer willingness to accept higher costs for faster renewable energy progress, not deciding exact rate hikes. He stressed that clear communication and education help customers better understand and accept utility decisions and rate changes.

Looking ahead, RPU plans to bank Renewable Energy Credits and bring wind power online sooner than expected to meet the 2030 goal and comply with the Minnesota Carbon-Free Standard. The Board has also recommended a 6% annual rate increase for 2026-2027 to stabilize rates and reduce short-term financial risks.