Sustainability and Resiliency Commission Meeting – September 15, 2026

The Rochester Sustainability and Resiliency Commission met on September 15, 2026, at 4:30 p.m. in City Hall Room 104 and via Zoom. The meeting focused on Rochester Public Utilities' (RPU) power supply resource plan, updates on utility programs, and new sustainability pilot programs. No public comments were received. The meeting adjourned at 6:01 p.m.

Consent Calendar

• Approval of August Meeting Minutes: The minutes from the August 12, 2026 meeting were approved unanimously on a motion by Amanda Holloway, seconded by Seth Behrends. All present members voted in favor; Amy C. Caucutt and Stewart Rassier were absent.

Public Comments & Testimony

• No members of the public spoke during the open comment period.

Discussion Items

RPU Power Supply Resource Plan (50 minutes)

• Tim McCullough, RPU General Manager, presented the utility's power supply plan, emphasizing the dual challenge of meeting 100% net renewable energy by 2030 while maintaining reliable capacity. He described the plan as a "snakes and ladders" game, with recent setbacks and some wins.
• Renewable Energy Progress: RPU has secured about two-thirds of its renewable electricity needs through contracts, primarily wind and solar. A key wind project in northeast Iowa (Howard County) is shovel-ready but stalled due to federal inaction on airspace clearance—the Department of Defense has not issued a determination of no harm for any project in over a year. RPU is advocating for legislative action through the National Defense Authorization Act.
• Reliable Capacity Needs: RPU's contract with Southern Minnesota Municipal Power Agency (200 MW of coal capacity) expires in Q1 2030. To replace it, RPU is building Mount Simon Station, a 50 MW natural gas peaking plant adjacent to the West Side Energy Station. The plant will have dual fuel capability (gas/oil) and is on schedule for Q3 2029 operation. A 20 MW battery storage project (two 10 MW sites, 4-hour duration) has been leased; it is expected to break even in the first year with about $3 million in lease costs and $3 million projected revenue.
• Challenges: Inflation, tariffs, and permitting delays have increased costs. The cost of combustion turbines has more than doubled in six months due to data center demand. Natural gas price volatility and winter fuel scarcity (e.g., Winter Storm Fern in January 2026) require oil backup. MISO capacity accreditation for wind and batteries is diminishing; longer-duration batteries (8+ hours) may be needed.
• Solar on Public Buildings: RPU applied for 20 state grants and was awarded all 20 for solar arrays (40 kW each) on city buildings, totaling ~700 kW. These arrays benefit from a 70% state tax credit and potential 30% federal credit.
• Commission Q&A: Commissioners asked about dispatch ordering, nuclear energy, hydrogen, and geothermal. Tim McCullough noted that renewables are dispatched first economically; nuclear may be necessary as a zero-carbon dispatchable source but is expensive and faces regulatory hurdles. RPU's new combustion turbines are tested for up to 30% hydrogen blend.

RPU Utility Programs and Sustainability Pilot Programs (30 minutes)

• Josh (Manager of Marketing and Energy Services) presented RPU's energy efficiency programs. The team of nine manages over 50 cost-effective programs. Highlights:

  • RPU has met its state-mandated annual energy savings goal (1.5% of annual energy sales) for 20 consecutive years, saving over 17 million kWh annually. In 2025, RPU paid $2.1 million in rebates to nearly 4,000 customers.
  • Electrification (Efficient Fuel Switching): Since the ECO Act allowed incentives in 2021, electrification has grown. However, state law caps savings from fuel switching at 40% of total; RPU is approaching that cap and will advocate to raise it in the next legislative cycle.
  • Low-Income Programs: RPU spends ~$120,000 annually on dedicated programs, including free energy audits and the Neighborhood Energy Challenge. The Older Adults program (rebranded from seniors) had only seven participants last year—outreach challenges exist.
  • Solar Interconnections: Over 800 systems interconnected as of 2026, but residential tax credits expired end of 2025; 2026 interconnection pace is significantly lower.
  • Electric Vehicles: 1,875 EVs in service territory in 2025 (27% increase over 2024). Time-of-use rates encourage nighttime charging, but customer adoption is slow. Advanced meters will help customers see savings.
  • Demand Response: Total capacity ~7 MW, mostly from thermostat programs (BYU), with modest growth.

• Kayla (Sustainability Staff) gave an update on the three sustainability pilot programs approved by City Council (August 17, 2026):

  • Allocation: $75,000 for residential rebates, $25,000 for building community grants.
  • Residential Rebate Programs: Plug-in solar (rebate $100–$300, ~75–225 projects; launch mid-2027 due to code/equipment certification hurdles), battery storage ($2,000/project; stackable with state incentives), electric panel upgrade add-on ($2,000 for customers with existing electrification projects), air sealing/insulation (modeled after MERC program; launch early 2027).
  • Building Community Grant: Expands existing DEI grant to include environmental sustainability projects; open to community groups, neighborhood associations, etc. Early 2027 launch.
  • Evaluation: Success measured by participation, energy savings, GHG reductions, cost-effectiveness, and customer experience. Staff will report back to council in about a year.

• Commission asked about preferred vendors—RPU is tightening contractor lists for solar to avoid fly-by-night operators.

Staff Updates

• Kayla announced: Brittany Rhodes (Healthy Home Navigator) will serve as the new GreenCorps member starting late September for an 11-month term. Commissioners interested in mentoring can fill out a form.
• The youth member (Liam) is stepping down due to college attendance; a new youth member is being sought. Staff is confirming appointment process and term limits.
• A mayor's Healthy and Stable Community Support application was submitted to continue funding Healthy Home Helpers next year.
• Upcoming events: Week Without Driving Pledge (Oct 1–7), Bike for Science (Sept 24), Move to the Market farmers markets, Snow Summit (Oct 24).

Key Outcomes

• Approved: August meeting minutes unanimously.
• No Votes: No action was taken on the RPU power supply plan or pilot programs; they were presented for information and discussion.
• Next Steps: Staff will continue developing the pilot programs for launch in early to mid-2027, with further updates to the commission. Staff will also bring an update on the water supply plan and the legislative agenda (including the ECO Act cap) to a future meeting.
• Adjournment: Moved by Casey McQuade, seconded by Brian M. Morgan; approved unanimously at 6:01 p.m.