Billing and Payment Options

The Billing, Credit, and Collections Policy., adopted by the RPU Board on April 26, 2022, outlines how RPU manages customer accounts and payments. Its purpose is to ensure fair and consistent, and transparent practices while maintaining reliable utility service for all customers.

The policy explains what customers can expect when it comes to billing and payment responsibilities, as well as the options and protections available to them. It also details how we handle situations such as late payments, past due accounts, service disconnection, and special circumstances like cold weather protections or deceased customers.

In addition, the policy provides guidance on deposits, payment methods, dispute resolution, and prohibited activities such as meter tampering. Overall, it serves as a comprehensive framework to balance customer support with responsible management of utility services. More specific details follow.

Monthly bills are issued for the following utility services; electric, water, and/or any billings on behalf of the City or other City Departments. Each utility meter is read on or near the same day each month so that approximately 28-30 days of usage is recorded. Bills are created, on average, within four (4) working days of the meter being read. The date the bill is created is known as the Billing Date. Customers have the option of receiving their bill via the US Postal service or electronically.

All utility charges for the services RPU provides are calculated in accordance with the Rate Schedule approved by the RPU Board of Directors and Rochester City Council. All utility charges for the services Rochester Public Works provides are calculated in accordance with City Ordinances that have been approved by the Rochester City Council. Additional charges such as the Disconnection or Meter Tampering fees are included in the Miscellaneous Fees Schedule.

All billing statements are due and payable on or before the Due Date. Bills not paid by the Due Date are subject to a late payment fee equal to 1.0% of the average outstanding balance for the current billing period or $5, whichever is greater. The late fee will be added to the Customer's outstanding account balance. If the average outstanding balance amount is $20 or less, a late payment fee will not be added. In the event of a billing error, late payment fees will be removed from the account as determined by RPU staff.

All residential and commercial customers are required to pay a deposit when initiating new electric and/or water service(s) accounts. The deposit requirement for customers will only be waived, if:

• The customer’s credit rating meets the established criteria or;
• The customer has an existing account with an acceptable credit history or;
• The commercial customer provides a guarantee. A non-revocable letter of credit can be provided, if it is for 36 months and equal to the deposit amount.

The deposit will be calculated using the two highest month’s bills from the previous 12 months at the service address and will be due before the service connection date. Deposits, along with interest will be applied as a credit to the customer’s account at the end of 24 or 36 months, respectively residential and commercial, if an acceptable credit history has been established. The deposit and interest will be applied to final bills. Remaining credits will be refunded within 45 days after the termination of service. It is critical to provide a forwarding address for any possible credits on your account after termination.

Unpaid accounts shall be considered past due on the first calendar day following the due date. When all administrative efforts at collecting a past due account have been exhausted, alternative collection methods may be used. RPU shall attempt to collect delinquent accounts promptly. Where satisfactory arrangements for payment have not been made, and after notification requirements have been complied with, utility services will be disconnected. If an existing customer has been disconnected for nonpayment of service, a new or additional deposit will be required for services to be reconnected, along with a reconnection fee.

Emergency Situations

Where it is necessary that the utility service be temporarily disconnected or connected to protect health, life or property, RPU will, at its discretion, take such action without charge or notice to the customer.

Minnesota Statue 216B.097 states that a municipal utility must not disconnect and must reconnect the utility service of a residential customer during the period between October 1 and April 30, if the disconnection affects the primary heat source for the residential unit and all of the following conditions are met:

1. The household income is at or below 50 percent of the state median income. RPU may verify income on forms it provides or obtain verification of income from the local energy assistance provider. A customer is deemed to meet the income requirements of this clause if the customer receives any form of public assistance, including energy assistance, that uses an income eligibility threshold set at or below 50 percent of the state median household income;
2. The customer enters into and makes reasonably timely payments under a payment agreement that considers the financial resources of the household. “Reasonably timely payment” means payment within five working days of the agreed-upon due dates;
3. The customer receives referrals to energy assistance, weatherization, conservation, or other programs likely to reduce the customer’s energy bills.   

If the above conditions are not met, RPU can disconnect utility service(s) for non-payment during the cold weather period between October 1 and April 30. Before disconnecting a residential service, RPU will provide the following information to the customer:

1.  a notice of proposed disconnection.
2. a statement explaining the customer’s rights and responsibilities.
3. a list of local energy assistance providers.
4.   a form on which to declare inability to pay; and
5. a statement explaining available time payment plans and other opportunities to secure continued utility service.   

Please contact customer care with any questions at customercare@rpu.org or call 507-280-1500. To apply fill out the Cold Weather Application Form.

• Three Rivers Community Action for energy assistance at 800-277-8418 or Three Rivers Community Action energy assistance program.
• Olmsted County Family Support & Assistance can provide emergency support at 507-328-6500
• RPU offers conservation programs. Please call 507-280-1500 or visit RPU rebates and programs page.
• The Minnesota Department of Commerce can provide a home energy guide at Home Energy Guide / Minnesota Department of Commerce - Energy.
• The Minnesota Department of Commerce has a Weatherization Assistance Program which can be found at Minnesota Weatherization Assistance Program.

Upon death of a customer, the service will be removed from the that person’s name as quickly as possible. As soon as the death of a customer is known, RPU will send the family a letter giving them a thirty-day notice that the name needs to be changed on the account. In the event that service(s) is not transferred within thirty days, RPU reserves the right to discontinue service and apply the deposit, if applicable, to all outstanding balances owed to RPU in the name of the deceased individual’s account.

The customer may dispute a bill that they feel is in error by calling or writing to RPU. We will investigate all disputes. We will not disconnect a service for non-payment of a disputed bill provided the customer notifies us before the bill is delinquent and the customer pays all other undisputed charges when due.

When a customer is dissatisfied with action taken on his or her dispute, they have the right to appeal. A detailed written notice of the issue must be received by RPU within 30 days of the initial dispute. The appeal will be reviewed by RPU management to decide whether or not RPU policies and procedures have been administered properly on the customer’s behalf. Management will respond to the customer with their findings and any further course of action, if needed.

RPU follows Minnesota Statutes, Sections 325E.026 and 609.52 with regards to the unauthorized use of utility meters and theft of service. 

If you have further questions, please contact Customer Care at customercare@rpu.org or call 507-280-1500.