Rochester RPU maintains 9% water-rate rise for 2027
Rochester Public Utilities, Minnesota · Meeting date: October 27, 2026 · Published: October 28, 2026
Rochester Public Utilities has approved a supplemental 2027 water budget and rate tariff that retains a 9% general water-rate adjustment. The utility estimated the change would add $1.78 a month for an average residential water customer.
Key points
- The Public Utility Board approved the 2027 supplemental water operating and capital budgets, including multiyear capital projects.
- The approved water tariff retains the 9% general rate adjustment previously adopted for 2027.
- RPU estimated an average residential water customer’s monthly bill would rise by $1.78 under the rate recommendations.
- The water budget includes $1 million in 2027 for the $3.23 million Kelma Township project, which began in 2026.
- The board’s approvals will be forwarded to Rochester City Council for approval.
Full report
Rochester Public Utilities’ board has maintained a 9% general water-rate increase for 2027, approving the utility’s supplemental water budget and associated tariff as it begins to map potentially significant changes to its long-term groundwater supply.
The board unanimously approved the 2027 supplemental Water Utility operating and capital budgets, including multiyear capital projects, at its 27 October meeting. It also separately approved the water fees and rate tariff, which is scheduled to take effect on or about 1 January 2027 following City Council approval.
Management said there was “relatively little change” to the water budget from the plan approved in 2025, and recommended no alteration to the previously adopted 9% water adjustment. RPU put the average monthly effect at $1.78 for a residential water customer.
The revised budget includes $1 million in 2027 for the Kelma Township project. The total project budget is $3.23 million and work began in 2026, following a budget amendment approved by the board and council in recent months. RPU also included short-term borrowing in the supplemental budget for emergent growth-related projects.
The rate decision comes as RPU’s water-system master plan identifies constraints on future groundwater development. The Minnesota Department of Natural Resources notified Rochester in April 2024 that it would not approve additional wells or appropriations from the Jordan aquifer, according to the utility’s groundwater-study update.
Initial modelling found that meeting future demand solely from the Jordan would provide good well yield but would increase diversions from streams and calcareous fens. A Tunnel City/Wanewoc scenario showed poor yield capacity. Modelling of the deeper Mount Simon aquifer showed good yield and recovery in streamflow and fen conditions, although RPU said Mount Simon water would likely require treatment to meet primary drinking-water standards.
RPU plans further modelling, including hybrid groundwater scenarios, and will assess surface-water alternatives before estimating future infrastructure requirements and costs.
This summary was generated by AI based on the source document and may contain errors.
Source: Public Utility Board - Oct 27, 2026, Rochester Public Utilities