ROCHESTER, Minn. — Rochester Public Utilities (RPU) is adjusting its 2026 electric rate increase to 4 percent, down from the initially proposed 6 percent. This decision was made during the RPU Board meeting on Tuesday.

The reduction comes after RPU's wholesale power provider, the Southern Minnesota Municipal Power Agency (SMMPA), reported lower-than-expected costs for the upcoming year. This is primarily due to the retirement of debt service costs associated with Sherco Unit 3, resulting in approximately $4 million in savings for RPU.

"Our wholesale provider’s costs went down because the debt on one of their coal units, Sherco Unit Three, will be paid off next year. That lets us pass those savings straight through to our customers," said Tim McCullough, RPU's general manager.

RPU is als

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