The Board of Directors for Minnesota public power utility Rochester Public Utilities has passed a resolution reaffirming its commitment to achieve 100% net renewable electricity by 2030.
The resolution directs staff to prioritize renewable energy options while balancing system reliability, affordable rates, and environmental responsibility.
"This action reflects both RPU’s long-term vision and the community’s voice," it noted.
In a recent survey of nearly 1,900 customers, seven in ten respondents supported RPU’s 100% net renewable goal. In pursuing that goal, six in ten customers expressed support for a measured approach that balances rates, reliability, and environmental responsibility.
The Board’s decision to continue pursuing the 2030 goal reflects this balance, RPU said. "It recognizes that while early investments are necessary now, many challenges remain and future decisions will need to be made. The Board has provided clarity to keep the public interest at the center while balancing priorities for Rochester’s future."
RPU has already taken significant steps toward this goal, including authorizing development of Mount Simon Station to support system reliability and securing 245 megawatts of wind resources that will come online before 2030.
“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.”
Investments in Reliability and Sustainability
To maintain and improve utility services, RPU is planning rate adjustments in 2026 and 2027. For the average residential customer, this means an increase of about $2 per month in water and $6 per month in electric service.
These investments will allow RPU to:
• Replace century-old water infrastructure.
• Strengthen the electric grid with vegetation management and equipment upkeep.
• Expand renewable energy resources while federal tax credits are available.
• Continue modernizing with advanced metering technology.
Community members will have additional opportunities to provide feedback at public meetings this fall before Rochester City Council makes a final decision in December.
Meanwhile, RPU recently received approval from the Rochester, Minnesota, City Council, following a recommendation from the RPU Utility Board, to move forward with a long-term wind energy purchase agreement that will serve as the foundation of RPU’s renewable energy future.
The agreement accounts for approximately 5% of RPU’s typical annual electric usage. It will provide predictable, stable energy costs while helping RPU achieve its goal of delivering 100% renewable energy, the utility noted.
“This contract represents a critical step in securing Rochester’s renewable energy future,” said McCollough. “It is the first of several contracts that give us both cost certainty and a clear path toward compliance with Minnesota’s Carbon Free Standard, while also laying the groundwork for Rochester’s local 100% net renewable energy strategy.”
“This agreement demonstrates RPU’s commitment to sustainable, forward-looking solutions that benefit our entire community,” said Wendy Turri, RPU Board Vice President. “By investing in local and regional renewable energy resources, we are taking meaningful steps toward meeting our 100% renewable energy goal while keeping affordability at the forefront.”
The project is located in Adams, Minnesota, a little over 30 miles from Rochester, and was recently acquired by Restore Renewable II, LLC – a company based in Rochester. The project will operate as acquired until it is repowered soon with upgraded turbines.
By executing this contract ahead of the April 1, 2030, expiration of RPU’s current supply agreement with the Southern Minnesota Municipal Power Agency, RPU can take advantage of federal renewable energy tax credits extended by the Inflation Reduction Act and reaffirmed in the federal reconciliation bill signed July 4, 2025, for repowering the facility.
This early adoption locks in financial benefits before the credits sunset and provides flexibility to bank renewable energy credits (RECs) for future compliance, RPU noted.
“This project sets the first stone for a strategy that not only strengthens our portfolio with reliable renewable resources but also protects customers against rising and unpredictable market prices over the long term,” said Bill Bullock, RPU Director of Power Resources.
The addition of this project positions RPU to meet state requirements while delivering on its commitment to sustainability and cost-conscious energy planning. Together with existing resources like Lake Zumbro Hydro and Valley High Solar, the contract advances RPU’s mission to achieve a fully renewable energy portfolio.
Two more wind projects, recommended by the RPU Utility Board, are expected to come before the Rochester City Council for approval in the near future.
If approved, these projects will further expand RPU’s renewable energy resources and strengthen its path toward a 100% renewable energy future.
