You Asked, We Answered: Why are my rates and fees increasing, and what do all the charges on my bill actually pay for?

When rates change, it’s natural to want a clear explanation. Utility bills include a mix of charges because some costs stay the same each month to keep your service available, while other costs depend on how much electricity you use. Your bill is designed to be transparent, with line items that show what you’re paying for and why.

RPU’s role and how rates are set
RPU is community owned and not for profit. Rates are built to cover the cost of operating, maintaining, and improving the electric and water systems so service stays safe and dependable. Any rate updates go through a public review process with the RPU Utility Board, then move to Rochester City Council for approval.

Why bills can increase
Bills can increase due to changes in rates or changes in usage. Rates are reviewed annually and may be adjusted when operating costs go up. Even if rates stay the same, 
your bill may increase if you use more energy or water.

Common reasons for rate changes

• Higher wholesale power costs (what RPU pays to buy or generate electricity).
• Inflation and rising costs for equipment, materials, and contracted services.
• Replacing aging infrastructure and maintaining reliability (poles, water mains, wires, substations, meters).
• Investments to modernize the system and serve a growing community.

Increased energy or water use
While rates are one factor, the most common reason for higher bills is increased energy or water use. RPU has seasonal electric rates, with higher prices in the summer when electricity use is usually greater.

Usage may increase due to:

• Extreme hot or cold weather
• Changes in household or business activity
• Less efficient appliances, equipment, insulation, or windows

Ways to lower your monthly bill at home

• Adjust your thermostat: raise a few degrees in summer.
• Use LED bulbs: especially in high-use rooms.
• Unplug or use smart power strips: reduce “always on” electronics draw.
• Run full loads: dishwasher and laundry, and use cold water when possible.
• Shift heavy use to off-peak hours if you’re on Time of Use rates: especially EV charging and laundry.
• Monitor your usage in RPU Connect: watch for spikes in your water or electric use.

Designed to be clear and fair
If you ever notice a change in your bill, the line items are there to help you see what’s driving it: a fixed cost to keep your service ready, a usage-based cost tied to how much you consume, and an adjustment that reflects real-time power supply costs. That structure helps RPU maintain reliable service, invest in the system over time, and keep costs shared fairly across all customers. For a closer look at how these line items appear on your statement, see the “How to Read Your Utility Bill” below.