Message from the General Manager: Transparency on rates and charges

We know many of you are asking the same question right now: why are utility bills increasing, and what do the charges on your bill actually pay for? It’s a fair question, and you deserve a clear answer. 

Rochester Public Utilities is a not-for-profit municipal utility. That means rates are set to recover the cost of providing safe, reliable electric and water service, with oversight by the Utility Board and final approval by Rochester City Council. Over time, costs can change due to factors like wholesale power prices, inflation, and the ongoing investments required to maintain reliability and replace aging infrastructure. 

In this edition, we’re focusing on transparency. You’ll find a simple breakdown of the main parts of your bill and why they exist, including the customer charge, the energy charge, and the power cost adjustment. Our goal is to help you understand how rates are designed and how costs are shared fairly. 

We’re also investing in upgrades that will give customers better tools and information over time, including our advanced metering project. The pilot is already underway, and as we expand installation in early 2026, these improvements will support reliability and provide enhanced usage insights to help customers better understand and manage their energy and water use.  

Thank you for trusting RPU to power and protect Rochester. We remain committed to transparency, reliability, and continually improving how we serve you. We also hope you’ll join us in the community this spring. Watch for details on upcoming events, like Arbor Day where we can connect, share information, and answer questions. 

Sincerely, 

Tim McCollough 
General Manager 
Rochester Public Utilities 

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RPU Service Center

4000 East River Rd NE
Rochester, MN, 55906

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