OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

Rochester Public Utilities Board Meeting Summary - January 28, 2026

Boards and Commissions — Wednesday, January 28, 2026
BodyRochester, Minnesota
SessionBoards and Commissions
DateWednesday, January 28, 2026
StatusFILED
Video Record
0:00 / 1:31:24

Transcript — Verbatim
0:00

P.M.

0:00

and this meeting of the Rochester Public Utilities Board is now called to order.

0:05

A quick reminder as we get going that this meeting is recorded, and a recording will be available on the city's website immediately following the meeting or sometime thereafter.

0:17

Our first uh item today is the approval of the agenda.

0:23

May I have a motion to approve the agenda as presented?

0:27

I'll move the agenda.

0:29

Second.

0:30

We have a motion.

0:31

We have a second.

0:32

All in favor say aye.

0:34

Aye.

0:35

Aye.

0:36

Opposed.

0:37

The agenda is approved.

0:40

Now we'll move quickly to item number two in our agenda.

0:43

This is our safety moment with safety manager Mr.

0:46

Bob Cook.

0:47

Thank you so much, Bob.

0:54

I decided that the song I heard most words was baby is cold outside.

0:59

You're certainly applicable.

1:02

I admit I never heard of so many different songs.

1:07

Steve Cold I've shocked in a saw some people work shorts.

1:11

And well, I know that people are more resistant to the coal than maybe I am.

1:15

I thought this would be pretty dangerous.

1:17

So every year, according to the CDC, more than a thousand people die from exposing extreme coal and micro.

1:23

Yeah.

1:24

It's important don't have many if they don't have extreme expeditions.

1:28

They have during normal activities like driving walking, working outside, shuttling, whatever.

1:34

So I think that happened to anybody.

1:36

And coal doesn't just affect color, it affects judgment, coordination, reaction time.

1:41

Your body gets cold, blood full contribution to your hands feed and face.

1:45

That's when numbness sets in.

1:51

This is why cold weather is strongly linked with slips, falls and vehicle accidents.

1:56

Hypothermia is especially dangerous because it's often hard to recognize science and uncontrollable shivering, confusion for speech and fatigue.

2:06

People experiencing hypothermia often don't realize how serious it is.

2:10

They may think they're just tired of cold and keep going and delayed deadly.

2:15

Frostbites and other risks sometimes underestimate back to my story about the resource.

2:25

Once frostbite sets in, tissue damage can be permanent.

2:28

Uh, there's many people who had serious ammunition.

2:33

Cold weather also increases the risk of over exertion injuries, especially from activities like shuttling snow, early winter people suffer heart attacks, serious injuries because they push too hard for cold conditions of all taking breaks.

2:46

Those basically three things we can do.

2:48

One is the rest of conditions, short.

2:51

Second, slow down third sleep, travel card, and all of that.

2:55

And third, watch out for each other.

2:57

This is something that's pretty problem at the workplace.

3:00

Cold stress training is you know, watch your buddies, make sure that they're not solved.

3:04

So cold weather injuries are preventable, but only if we respect it.

3:09

Thank you very much.

3:11

Thank you.

3:12

Thank you so much, safety manager cook.

3:15

And now we move to the consent agenda.

3:18

Item number three.

3:20

Um we have for approval on the consent agenda four different items.

3:25

Three A, which is minutes from the December 16th RPU board meeting, uh, three B, which is a review of accounts payable.

3:33

Uh and then 3C, which is the 2026 through 2029 ESRI citywide small government enterprise agreement renewal, and then 3D, which is generation fuel purchases.

3:47

May I have a motion to approve the consent agenda.

3:52

I'll move approval.

3:54

Uh and a second.

3:55

I'll second.

3:56

We have approval and a second.

Discussion Breakdown — Share of Meeting
Energy Independence███████████████████████23%
Water And Wastewater Management███████████████████19%
Engineering And Infrastructure█████████9%
Fiscal Sustainability█████████9%
Procedural████████8%
Technology and Innovation███████7%
Strategic Planning██████6%
Public Safety█████5%
Public Engagement█████5%
Summary of Proceedings

Rochester Public Utilities Board Meeting Summary - January 28, 2026

The Rochester Public Utilities Board convened to approve the agenda, review a historic fuel oil operation during a regional cold weather event, and receive strategic updates on 2026 initiatives across all utility divisions. The meeting highlighted the Board's response to an energy emergency resembling Winter Storm Uri, the progress on lead service line replacements, and major planning for future power capacity.

Consent Calendar

  • Approved minutes from the December 16th, 2025 board meeting.
  • Approved review of accounts payable.
  • Approved the 2026 through 2029 ESRI citywide small government enterprise agreement renewal.
  • Approved generation fuel purchases, including a late addition authorizing up to the budgeted fuel amount for the remainder of the year due to a historic 49-hour GT2 engine run fueled by fuel oil (approx. 200,000 gallons) during a regional energy emergency.

Public Comments & Testimony

  • No members of the public signed up to address the board during the designated 20-minute comment period.

Discussion Items

Regional Energy Emergency and Fuel Operations

  • Staff reported that the GT2 engine ran for 49 hours over the weekend, a duration not seen since Winter Storm Uri in February 2021. This was necessitated by low wind output, lack of solar in the evening, and curtailed natural gas thermal generation. The run was called in by MISO while the system was at the margin of generation across Missouri and the northern Midwest.
  • The board discussed load curtailment efforts, with staff noting that while loads decreased, quantifying the specific impact of curtailment is difficult due to concurrent weather and wind recovery factors.
  • Staff confirmed that running the unit allowed the utility to capture value despite high fuel costs (approx. $500,000), resulting in a net financial gain of over $1 million for the weekend.

Water Division Initiatives

  • Lead Service Line Replacement: Staff confirmed that despite state funding changes in 2025, the pace for 2026 will match the previous year's volume, supported by $1.5 million in annual funding. A priority formula based on income and children under five must be followed for grant funds.
  • Water System Master Planning: The study is underway to address limitations on withdrawal from the Jordan Aquifer. Rochester Municipal Public Utilities (RPU) is funding 80% or more of the base study, with neighboring cities (Byron, Stewartville, Orinoco) providing data. The estimated max day demand in 40 years is around 50 million gallons per day, with annual requirements peaking at 8-9 billion gallons.
  • Board Member Questions: Members expressed concern regarding the equity of funding the regional study exclusively with RPU funds and queried the potential for customers to self-fund line replacements outside the prioritized grant sequence.

Power and Transmission Initiatives

  • Mount Simon Station: Construction continues with design procurement and air permitting expected this year; the project targets an online date in early 2029.
  • Silver Lake Plant: Staff announced the plan to cease steam operations by the end of 2027 or 2028, subject to contract negotiations with Mayo Clinic. Workforce planning and infrastructure disposition are underway.
  • Capacity Expansion: A need for approximately 100 megawatts of additional power capacity was identified. The board discussed the urgency of securing this capacity by 2030 due to wind accreditation changes. Options include joint builds, partnerships, or partial requirements contracts.
  • Grid North Partners: The joint development agreement is scheduled for signing February 2nd, with routing determined by the Public Utilities Commission on February 5th.

Asset Management and Infrastructure

  • Asset Lifecycle: Staff clarified that while the organization tracks "useful lives" for depreciation and audit purposes, asset replacement decisions are increasingly driven by condition, risk, and failure data rather than age alone. The board requested data on the replacement value of the asset base, which has risen due to inflation.
  • Specific Upgrades: Projects include replacing a Zumbro River substation transformer, upgrading circuit breakers and disconnect switches (including 40-year-old manhole switches), and converting overhead power lines to underground along 18th Avenue.
  • Water Main Breaks: Staff addressed two breaks on 9th Avenue, attributing them to age and soil conditions (cast iron corrosion) rather than the repair method of the initial break.

Corporate Services, IT, and Customer Relations

  • ERP Implementation: A comprehensive migration from on-prem SAP to a cloud solution is scheduled to begin in February 2026, impacting finance, payroll, and asset management.
  • Data Analytics: The newly formed data division is focusing on building data governance structures to aggregate enterprise data (GIS, finance, asset management) into dashboards while ensuring customer data segregation.
  • Bond Rating Assessment: The utility is engaging Baker Tilly to assess the impact of new debt issuance on credit ratings, aiming to ensure a continued triple-A rating despite increased leverage.
  • Customer Relations: A transition to the Vertex One vConnect platform is expected by late 2026 or 2027. The website redesign is underway to meet WCAG 2.1 Double A accessibility standards by April 2026.
  • Deed Management: A request was made to consider the prepayment of energy contracts via conduit debt to secure 6-10% discounts over 20-year terms; further reporting is planned.

Key Outcomes

  • The consent agenda, including the historic fuel oil authorization, was approved unanimously.
  • The board received informational updates on the 2026 strategic initiatives; no formal votes were taken on the proposals themselves as they are part of ongoing operational planning.
  • Staff committed to returning in March to discuss the Water System Master Plan progress and the specific details of the conduit debt/energy prepayment structure.
  • The meeting concluded with an adjournment after all division reports and the General Manager's update were heard.

Meeting Transcript

P.M. and this meeting of the Rochester Public Utilities Board is now called to order. A quick reminder as we get going that this meeting is recorded, and a recording will be available on the city's website immediately following the meeting or sometime thereafter. Our first uh item today is the approval of the agenda. May I have a motion to approve the agenda as presented? I'll move the agenda. Second. We have a motion. We have a second. All in favor say aye. Aye. Aye. Opposed. The agenda is approved. Now we'll move quickly to item number two in our agenda. This is our safety moment with safety manager Mr. Bob Cook. Thank you so much, Bob. I decided that the song I heard most words was baby is cold outside. You're certainly applicable. I admit I never heard of so many different songs. Steve Cold I've shocked in a saw some people work shorts. And well, I know that people are more resistant to the coal than maybe I am. I thought this would be pretty dangerous. So every year, according to the CDC, more than a thousand people die from exposing extreme coal and micro. Yeah. It's important don't have many if they don't have extreme expeditions. They have during normal activities like driving walking, working outside, shuttling, whatever. So I think that happened to anybody. And coal doesn't just affect color, it affects judgment, coordination, reaction time. Your body gets cold, blood full contribution to your hands feed and face. That's when numbness sets in. This is why cold weather is strongly linked with slips, falls and vehicle accidents. Hypothermia is especially dangerous because it's often hard to recognize science and uncontrollable shivering, confusion for speech and fatigue. People experiencing hypothermia often don't realize how serious it is. They may think they're just tired of cold and keep going and delayed deadly. Frostbites and other risks sometimes underestimate back to my story about the resource. Once frostbite sets in, tissue damage can be permanent. Uh, there's many people who had serious ammunition. Cold weather also increases the risk of over exertion injuries, especially from activities like shuttling snow, early winter people suffer heart attacks, serious injuries because they push too hard for cold conditions of all taking breaks. Those basically three things we can do. One is the rest of conditions, short. Second, slow down third sleep, travel card, and all of that. And third, watch out for each other. This is something that's pretty problem at the workplace. Cold stress training is you know, watch your buddies, make sure that they're not solved. So cold weather injuries are preventable, but only if we respect it. Thank you very much. Thank you. Thank you so much, safety manager cook.

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