ANNUALBUDGET RECOMMENDED 2026-2027
(This Page is Left Blank Intentionally)
SECTION ELECTRIC UTILITY - OPERATING BUDGET 1 ELECTRIC UTILITY - CAPITAL IMPROVEMENT & MAJOR MAINTENANCE BUDGET 2 WATER UTILITY - OPERATING BUDGET 3 WATER UTILITY - CAPITAL IMPROVEMENT & MAJOR MAINTENANCE BUDGET 4 PERSONNEL BUDGET - TOTAL RPU 5 SUPPLEMENTAL DATA - CAPITAL/OPERATING BUDGET 6 CONTENTS ROCHESTER PUBLIC UTILITIES 2026 -2027 ANNUAL OPERATING PLAN
(This Page is Left Blank Intentionally)
SECTION XII Rochester Public Utilities Recommended Electric Utility 2026-2027 Operating Budget ROCHESTER PUBLIC UTILITIES RECOMMENDED ELECTRIC UTILITY 2026-2027 OPERATING BUDGET
(This Page is Left Blank Intentionally)
Title Pages Assumptions 1 Forecast by Year 2026 through 2030 2 Condensed Income Statement - 2026 3 Condensed Income Statement - 2027 4 Revenue Sources & Expense Categories - 2026 5 Revenue Sources & Expense Categories - 2027 6 Operating Expenditures Graph 7 Production & Sales Statistics Forecast 8 ROCHESTER PUBLIC UTILITIES ELECTRIC UTILITY 2026 - 2027 OPERATING BUDGET INDEX Section 1
ASSUMPTIONS 2026 2027 • Interest Earnings Rate: 3.0% 3.0% • Average Salary Expense Change: 4.9% 3.9% (excluding headcount additions) • Anticipated Bonding None $240.7 Million • Change in Full-time Equivalents: 2 Incremental 2 Incremental • SMMPA Wholesale Power Cost: 6.0% decrease 10.0% decrease • SMMPA CROD Level: 216 MW 216 MW • Minimum Cash Reserve Requirement: $67,875,344 $58,185,244 • In Lieu of Tax $11,585,988 $11,917,972 RETAIL REVENUES / SALES 2026 2027 • Revenue Adjustment: 6.0% Proposed General Rate Change 6.0% Proposed General Rate Change • Electric KWH Sales Forecast: 1.0% Decrease from 2025 F2 1.7% Increase from 2026 Projected Sales Projected Sales • Total Electric Utility Customers: 1.9% Increase over Y/E 2025 F2 1.8% Increase over Y/E 2026 Projected Customers Projected Customers • Forecast Assumes Normal Weather : WHOLESALE FUEL COSTS 2026 2027 • Estimated Cost of Fuel: $5.18/mcf $4.97/mcf (consists of COLA, merit and promotion increases) ROCHESTER PUBLIC UTILITIES ELECTRIC UTILITY 2026 - 2027 OPERATING BUDGET 30 Yr Average Heating/Cooling Degree Days per Year Section 1 - Page 1
in 000's 2023 2024 2025 F2 2026 2027 2028 2029 2030 RPU Rate Increase 2.5% 3.2% 4.0% 6.0% 6.0% 6.0% 6.0% 6.0% Plus AMI Customer Charge $1.94 1 Revenue 2 Retail Electric 164,508 $172,251 $174,575 $179,353 $190,842 $206,140 $227,710 $298,834 3 Wholesale Electric $7,562 $5,847 $8,843 $7,631 $5,836 $5,836 $6,031 $7,787 4 Wholesale Renewables - - - $2,474 $2,474 $20,291 $20,296 $7,997 5 Wholesale Steam $5,383 $4,735 $4,920 $5,061 $4,930 $2,422 - - 6 Transmission $6,433 $5,801 $6,008 $6,008 $8,363 $8,363 $8,363 $8,363 7 Other Services & Fees $4,149 $4,175 $4,394 $4,537 $4,571 $4,624 $4,679 $4,733 8 Total Revenue $188,035 $192,809 $198,741 $205,064 $217,016 $247,676 $267,079 $327,714 9 Cost of Revenue SMMPA Rate Increase (Decrease) 0.0% 0.0% 0.0% (6.0%) (10.0%) (10.0%) 20.0% 0.0% 10 Power Supply $99,424 $100,982 97,399 $90,726 $82,165 $71,584 $84,332 $97,681 11 Power Supply - Renewables - - - $2,317 $2,385 $41,775 $41,847 $62,125 12 Power Supply Batteries - - - - - - - $18,600 13 Generation Fuel $5,632 $3,966 5,965 $6,323 $6,083 $4,507 $3,119 $4,183 14 Total Cost of Revenue $105,056 $104,948 $103,364 $99,366 $90,633 $117,866 $129,299 $182,590 15 Gross Margin 16 Retail Electric $65,083 $71,270 $77,176 $88,626 $108,676 $134,556 $143,378 $201,152 17 Wholesale $7,313 $6,615 $7,798 $6,369 $4,684 $3,751 $2,912 ($14,996) 18 Wholesale Renewables - - - $157 $89 ($21,483) ($21,551) ($54,128) 19 Transmission $6,433 $5,801 $6,008 $6,008 $8,363 $8,363 $8,363 $8,363 20 Other Services & Fees $4,149 $4,175 $4,394 $4,537 $4,571 $4,624 $4,679 $4,733 21 TOTAL GROSS MARGIN $82,979 $87,861 $95,377 $105,698 $126,383 $129,810 $137,781 $145,124 22 Controllable Costs 23 Salaries & Benefits $27,650 $27,582 $30,465 $35,330 $37,874 $38,560 $40,374 $42,845 24 Other Operating Expenses $9,756 $12,897 $12,479 $12,716 $13,254 $13,633 $14,515 $15,806 25 Major Maintenance $3,808 $2,694 $5,793 $8,479 $5,507 $5,694 $6,232 $6,358 26 Non-Bonded Capital Projects $21,120 $26,156 $42,509 $32,204 $34,104 $21,072 $19,770 $19,646 27 TOTAL CONTROLLABLE COSTS $62,334 $69,329 $91,245 $88,729 $90,739 $78,960 $80,891 $84,655 28 Depreciation & Amortization $15,721 $15,751 $16,940 $18,251 $18,417 $18,780 $20,846 $23,201 29 Subscription Amortization $441 $534 $699 $1,087 $2,171 $3,789 $3,833 $3,872 30 Less Non Bonded Projects (capitalized) ($21,120) ($26,156) ($42,509) ($32,204) ($34,104) ($21,072) ($19,770) ($19,646) 31 Less Total Internal Costs (capitalized) (4,579) (4,725) ($7,803) ($7,251) ($8,171) ($6,353) ($6,385) ($5,741) 32 Interutility Allocation (1,956) (2,146) ($1,775) ($2,150) ($2,333) ($2,565) ($2,633) ($2,703) 33 Total Operating Expenses $50,841 $52,587 $56,798 $66,462 $66,718 $71,538 $76,782 $83,638 34 Net Operating Income (Loss) $32,138 $35,274 $38,579 $39,236 $59,665 $58,272 $60,999 $61,486 35 Financing & Other Non-Operating Items: 36 Bond & Interest Related Expenses ($5,373) ($5,280) ($5,105) ($4,958) ($19,340) ($18,894) ($18,410) ($17,900) 37 Interest Income $6,547 $6,437 $4,979 $3,458 $8,030 $6,388 $4,597 $4,425 38 Misc Non-Operating Income (Expense) ($249) ($242) ($20) ($424) ($873) ($916) ($961) ($1,008) 39 Total Financing & Non-Operating Items $925 $914 ($146) ($1,924) ($12,183) ($13,423) ($14,774) ($14,484) 40 Income Before Transfers or Capital Contributions $33,063 $36,189 $38,433 $37,312 $47,483 $44,850 $46,225 $47,002 41 Transfers (In Lieu of Taxes) ($9,629) ($10,868) ($11,140) ($11,586) ($11,918) ($11,378) ($11,186) ($11,194) 42 Capital Contributions/Intercompany $7,069 $11,562 $13,790 $1,426 $1,893 $750 $750 $750 43 Special Items - ($1,277) - - - - - - 44 NET INCOME $30,502 $35,605 $41,082 $27,152 $37,457 $34,222 $35,790 $36,558 45 NET INCOME (Excluding Capital Contributions) $ 27,293 $ 25,726 $ 35,565 $ 33,472 $ 35,040 $ 35,808 46 TARGET NET INCOME $ 21,346 $ 24,474 $ 19,760 $ 26,354 $ 29,430 $ 31,051 47 Excess (Deficit) from Target 5,947 $ $ 1,252 $ 15,805 $ 7,118 $ 5,609 $ 4,757 48 1/01 Cash Balance $ 117,149 $ 130,383 $ 122,379 $ 92,579 $ 89,356 100,580 $ $ 117,789 49 Change in Net Assets $35,605 $41,082 $27,152 $37,457 $34,222 $35,790 $36,558 50 Depreciation & Amortization $15,751 $16,940 $18,251 $18,417 $18,780 $20,846 $23,201 51 Capital Additions/Service Territory Comp ($30,502) ($58,840) ($68,337) ($122,024) ($140,891) ($62,270) ($26,627) 52 Bond Principal Payments ($7,730) ($8,005) ($8,305) ($11,670) ($12,207) ($12,771) ($13,336) 53 Bond Proceeds - - - $240,700 - - - 54 Net Change in Other Assets/Liabilities $110 $818 $1,439 ($166,104) $111,321 $35,615 ($11,323) 55 Net Changes in Cash $13,234 ($8,005) ($29,799) ($3,223) $11,224 $17,209 $8,473 56 12/31 Cash Balance $ 130,383 $ 122,379 $ 92,579 $ 89,356 100,580 $ $ 117,789 126,262 $ 57 Mimimum Cash Reserve $ 62,629 $ 66,647 $ 67,875 $ 58,185 $ 58,654 $ 62,456 $ 66,494 58 Excess (Deficit) from Miminum Cash Reserve $ 67,754 $ 55,732 $ 24,704 $ 31,171 $ 41,926 $ 55,333 $ 59,768 59 Debt Service Coverage Ratio 4.2 4.4 4.4 2.7 2.7 2.8 2.8 Historical Data ROCHESTER PUBLIC UTILITIES ELECTRIC UTILITY Management Reporting P&L Section 1 - Page 2
2025 2026 2026 % in 000's 2023 2024 Orig Bdgt 2025 F2 2026 Orig Bdgt Variance to Orig Bdgt Variance 1 Revenue 2 Retail Electric $164,508 $172,251 $177,983 $174,575 $179,353 $180,787 ($1,435) -0.8% 3 Wholesale Electric $7,562 $5,847 $6,570 $8,843 $7,631 $6,505 $1,126 17.3% 4 Wholesale Renewables - - - - $2,474 - $2,474 0.0% 5 Wholesale Steam $5,383 $4,735 $5,602 $4,920 $5,061 $5,580 ($520) -9.3% 6 Transmission $6,433 $5,801 $6,063 $6,008 $6,008 $6,063 ($55) -0.9% 7 Other Services & Fees $4,149 $4,175 $4,493 $4,394 $4,537 $4,539 ($2) 0.0% 8 Total Revenue $188,035 $192,809 $200,711 $198,741 $205,064 $203,475 $1,589 0.8% 9 Cost of Revenue 10 Power Supply $99,424 $100,982 $99,429 $97,399 $90,726 $88,289 $2,438 2.8% 11 Power Supply - Renewables - - - - $2,317 - $2,317 0.0% 12 Generation Fuel $5,632 $3,966 $6,612 $5,965 $6,323 $7,564 ($1,241) -16.4% 13 Total Cost of Revenue $105,056 $104,948 $106,041 $103,364 $99,366 $95,853 $3,513 3.7% 14 Gross Margin 15 Retail Electric $65,083 $71,270 $78,554 $77,176 $88,626 $92,498 ($3,872) -4.2% 16 Wholesale $7,313 $6,615 $5,560 $7,798 $6,369 $4,521 $1,848 40.9% 17 Wholesale Renewables - - - - $157 - $157 0.0% 18 Transmission $6,433 $5,801 $6,063 $6,008 $6,008 $6,063 ($55) -0.9% 19 Other Services & Fees $4,149 $4,175 $4,493 $4,394 $4,537 $4,539 ($2) 0.0% 20 TOTAL GROSS MARGIN $82,979 $87,861 $94,670 $95,377 $105,698 $107,622 ($1,924) -2.2% 21 Controllable Costs 22 Salaries & Benefits $27,650 $27,582 $32,155 $30,465 $35,330 $35,443 ($113) -0.3% 23 Other Operating Expenses $9,756 $12,897 $12,568 $12,479 $12,716 $13,130 ($414) -3.2% 24 Major Maintenance $3,808 $2,694 $6,474 $5,793 $8,479 $6,073 $2,406 39.6% 25 Non-Bonded Capital Projects $21,120 $26,156 $19,100 $42,509 $32,204 $26,835 $5,369 20.0% 26 TOTAL CONTROLLABLE COSTS $62,334 $69,329 $70,297 $91,245 $88,729 $81,481 $7,248 8.9% 27 Depreciation & Amortization $15,721 $15,751 $18,403 $16,940 $18,251 $17,280 $971 5.6% 28 Subscription Amortization $441 $534 $880 $699 $1,087 $1,325 ($238) -18.0% 29 Less Non Bonded Projects (capitalized) ($21,120) ($26,156) ($19,100) ($42,509) ($32,204) ($26,835) ($5,369) 20.0% 30 Less Total Internal Costs (capitalized) ($4,579) ($4,725) ($9,087) ($7,803) ($7,251) ($8,986) $1,735 -19.3% 31 Interutility Allocation ($1,956) ($2,146) ($1,766) ($1,775) ($2,150) ($1,819) ($331) 18.2% 32 Total Operating Expenses $50,841 $52,587 $59,627 $56,798 $66,462 $62,446 $4,015 6.4% 33 Net Operating Income (Loss) $32,138 $35,274 $35,043 $38,579 $39,236 $45,175 ($5,939) -13.1% 34 Financing & Other Non-Operating Items: 35 Bond & Interest Related Expenses ($5,373) ($5,280) ($5,076) ($5,105) ($4,958) ($6,161) $1,203 -19.5% 36 Interest Income $6,547 $6,437 $3,468 $4,979 $3,458 $2,921 $536 18.4% 37 Misc Non-Operating Income (Expense) ($249) ($242) ($21) ($20) ($424) ($22) ($401) 1820.0% 38 Total Financing & Non-Operating Items $925 $914 ($1,629) ($146) ($1,924) ($3,262) $1,338 -41.0% 39 Income Before Transfers or Capital Contributions $33,063 $36,189 $33,415 $38,433 $37,312 $41,914 ($4,602) -11.0% 40 Transfers (In Lieu of Taxes) ($9,629) ($10,868) ($11,337) ($11,140) ($11,586) (11,401) ($185) 1.6% 41 Capital Contributions/Intercompany $7,069 $11,562 $3,395 $13,790 $1,426 $624 $802 128.4% 42 Special Items - ($1,277) - - - - - 0.0% 43 NET INCOME $30,502 $35,605 $25,473 $41,082 $27,152 $31,138 ($3,985) -12.8% 44 1/01 Cash Balance $ 117,149 $ 110,413 130,383 $ $ 122,379 105,284 $ $ 17,095 16.2% 45 Change in Net Assets $35,605 $25,473 $41,082 $27,152 $31,138 ($3,985) -12.8% 46 Depreciation & Amortization $15,751 $18,403 $16,940 $18,251 $17,280 $971 5.6% 47 Capital Additions/Service Territory Comp ($30,502) ($40,620) ($58,840) ($68,337) ($91,676) $23,339 -25.5% 48 Bond Principal Payments ($7,730) ($8,005) ($8,005) ($8,305) ($8,305) - 0.0% 49 Bond Proceeds - - - - $16,700 ($16,700) -100.0% 50 Net Change in Other Assets/Liabilities $110 ($381) $818 $1,439 $2,972 ($1,533) -51.6% 51 Net Changes in Cash $13,234 ($5,129) ($8,005) ($29,799) ($31,891) $2,091 -6.6% 52 12/31 Cash Balance $ 130,383 $ 105,284 122,379 $ $ 92,579 73,393 $ $ 19,186 26.1% 53 Mimimum Cash Reserve $ 62,629 $ 66,647 $ 66,647 $ 67,875 64,781 $ $ 3,094 4.8% 54 Excess (Deficit) from Miminum Cash Reserve $ 67,754 $ 38,637 $ 55,732 $ 24,704 $ 8,612 $ 16,092 186.8% ROCHESTER PUBLIC UTILITIES ELECTRIC UTILITY Management Reporting P&L Historical Data Section 1 - Page 3
2025 2027 2027 % in 000's 2023 2024 Orig Bdgt 2025 F2 2027 Orig Bdgt Variance to Orig Bdgt Variance 1 Revenue 2 Retail Electric $164,508 $172,251 $177,983 $174,575 $190,842 $187,461 $3,381 1.8% 3 Wholesale Electric $7,562 $5,847 $6,570 $8,843 $5,836 $6,505 ($669) -10.3% 4 Wholesale Renewables - - - - $2,474 - $2,474 0.0% 5 Wholesale Steam $5,383 $4,735 $5,602 $4,920 $4,930 $5,580 ($650) -11.7% 6 Transmission $6,433 $5,801 $6,063 $6,008 $8,363 $8,418 ($55) -0.7% 7 Other Services & Fees $4,149 $4,175 $4,493 $4,394 $4,571 $4,585 ($14) -0.3% 8 Total Revenue $188,035 $192,809 $200,711 $198,741 $217,016 $212,549 $4,467 2.1% 9 Cost of Revenue 10 Power Supply $99,424 $100,982 $99,429 $97,399 $82,165 $84,995 ($2,830) -3.3% 11 Power Supply - Renewables - - - - $2,385 - $2,385 0.0% 12 Generation Fuel $5,632 $3,966 $6,612 $5,965 $6,083 $7,569 ($1,486) -19.6% 13 Total Cost of Revenue $105,056 $104,948 $106,041 $103,364 $90,633 $92,564 ($1,931) -2.1% 14 Gross Margin 15 Retail Electric $65,083 $71,270 $78,554 $77,176 $108,676 $102,466 $6,211 6.1% 16 Wholesale $7,313 $6,615 $5,560 $7,798 $4,684 $4,517 $167 3.7% 17 Wholesale Renewables - - - - $89 - $89 0.0% 18 Transmission $6,433 $5,801 $6,063 $6,008 $8,363 $8,418 ($55) -0.7% 19 Other Services & Fees $4,149 $4,175 $4,493 $4,394 $4,571 $4,585 ($14) -0.3% 20 TOTAL GROSS MARGIN $82,979 $87,861 $94,670 $95,377 $126,383 $119,985 $6,398 7.3% 21 Controllable Costs 22 Salaries & Benefits $27,650 $27,582 $32,155 $30,465 $37,874 $37,090 $784 2.1% 23 Other Operating Expenses $9,756 $12,897 $12,568 $12,479 $13,254 $13,690 ($436) -3.2% 24 Major Maintenance $3,808 $2,694 $6,474 $5,793 $5,507 $5,157 $350 6.8% 25 Non-Bonded Capital Projects $21,120 $26,156 $19,100 $42,509 $34,104 $23,625 $10,480 44.4% 26 TOTAL CONTROLLABLE COSTS $62,334 $69,329 $70,297 $91,245 $90,739 $79,562 $11,177 14.0% 27 Depreciation & Amortization $15,721 $15,751 $18,403 $16,940 $18,417 $17,755 $662 3.7% 28 Subscription Amortization $441 $534 $880 $699 $2,171 $1,700 $471 27.7% 29 Less Non Bonded Projects (capitalized) ($21,120) ($26,156) ($19,100) ($42,509) ($34,104) (23,625) ($10,480) 44.4% 30 Less Total Internal Costs (capitalized) ($4,579) ($4,725) ($9,087) ($7,803) ($8,171) ($10,842) $2,671 -24.6% 31 Interutility Allocation ($1,956) ($2,146) ($1,766) ($1,775) ($2,333) ($1,874) ($459) 24.5% 32 Total Operating Expenses $50,841 $52,587 $59,627 $56,798 $66,718 $62,677 $4,041 6.4% 33 Net Operating Income (Loss) $32,138 $35,274 $35,043 $38,579 $59,665 $57,309 $2,357 4.1% 34 Financing & Other Non-Operating Items: 35 Bond & Interest Related Expenses ($5,373) ($5,280) ($5,076) ($5,105) ($19,340) ($21,241) $1,901 -8.9% 36 Interest Income $6,547 $6,437 $3,468 $4,979 $8,030 $8,196 ($166) -2.0% 37 Misc Non-Operating Income (Expense) ($249) ($242) ($21) ($20) ($873) ($23) ($850) 3741.2% 38 Total Financing & Non-Operating Items $925 $914 ($1,629) ($146) ($12,183) ($13,067) $884 -6.8% 39 Income Before Transfers or Capital Contributions $33,063 $36,189 $33,415 $38,433 $47,483 $44,241 $3,241 7.3% 40 Transfers (In Lieu of Taxes) ($9,629) ($10,868) ($11,337) ($11,140) ($11,918) ($11,540) ($378) 3.3% 41 Capital Contributions/Intercompany $7,069 $11,562 $3,395 $13,790 $1,893 $615 $1,277 207.7% 42 Special Items - ($1,277) - - - - - 0.0% 43 NET INCOME $30,502 $35,605 $25,473 $41,082 $37,457 $33,316 $4,141 12.4% 44 1/01 Cash Balance $ 117,149 $ 110,413 130,383 $ $ 92,579 $ 73,393 $ 19,186 26.1% 45 Change in Net Assets $35,605 $25,473 $41,082 $37,457 $33,316 $4,141 12.4% 46 Depreciation & Amortization $15,751 $18,403 $16,940 $18,417 $17,755 $662 3.7% 47 Capital Additions/Service Territory Comp ($30,502) ($40,620) ($58,840) ($122,024) ($175,467) $53,443 -30.5% 48 Bond Principal Payments ($7,730) ($8,005) ($8,005) ($11,670) ($9,170) ($2,500) 27.3% 49 Bond Proceeds - - - $240,700 $301,200 ($60,500) -20.1% 50 Net Change in Other Assets/Liabilities $110 ($381) $818 ($166,104) ($159,643) ($6,461) 4.0% 51 Net Changes in Cash $13,234 ($5,129) ($8,005) ($3,223) $7,992 ($11,216) -140.3% 52 12/31 Cash Balance $ 130,383 $ 105,284 122,379 $ $ 89,356 $ 81,386 $ 7,970 9.8% 53 Mimimum Cash Reserve $ 62,629 $ 66,647 $ 66,647 $ 58,185 $ 56,763 $ 1,422 2.5% 54 Excess (Deficit) from Miminum Cash Reserve $ 67,754 $ 38,637 $ 55,732 $ 31,171 $ 24,623 $ 6,548 26.6% Historical Data ROCHESTER PUBLIC UTILITIES ELECTRIC UTILITY Management Reporting P&L Section 1 - Page 4
ROCHESTER PUBLIC UTILITIES ELECTRIC UTILITY 2026 - 2027 Operating Budget Retail Electric 83.8% Wholesale 6.2% Transmission 5.7% Other Services & Fees 4.3% 2026 GROSS MARGIN $105,697,608 Purchased Power 56.1% Operating & Maintenance 29.1% Depreciation 11.0% Fuel 3.8% 2026 EXPENSE USES $165,827,797 Section 1 - Page 5
ROCHESTER PUBLIC UTILITIES ELECTRIC UTILITY 2026 - 2027 Operating Budget Retail Electric 86.0% Wholesale 3.8% Transmission 6.6% Other Services & Fees 3.6% 2027 GROSS MARGIN $126,383,359 Purchased Power 53.7% Operating & Maintenance 30.7% Depreciation 11.7% Fuel 3.9% 2027 EXPENSE USES $157,351,007 Section 1 - Page 6
ROCHESTER PUBLIC UTILITIES ELECTRIC UTILITY 2026 - 2027 Operating Budget - 10,000,000 20,000,000 30,000,000 40,000,000 50,000,000 60,000,000 70,000,000 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Electric Operating Expenditures Section 1 - Page 7
2025 F2 2026 2027 2028 2029 2030 1 Peak MW 2 SMMPA 216 216 216 216 216 216 3 Market 61 62 64 50 51 52 4 Total Peak MW 277 278 280 266 267 268 5 % Change -4.8% 0.5% 0.6% -4.8% 0.2% 0.4% 6 Retail MWH 1,150,640 1,138,759 1,157,764 1,102,475 1,083,659 1,084,530 7 % Change 1.0% -1.0% 1.7% -4.8% -1.7% 0.1% 8 Purchased Power MWH 9 SMMPA 1,161,959 1,157,816 1,162,412 1,109,261 1,090,100 260,668 10 Other 4,147 4,106 4,126 3,935 3,904 834,224 11 Total Purchased Power MWH 1,166,106 1,161,923 1,166,538 1,113,196 1,094,004 1,094,892 12 % Change 0.3% -0.4% 0.4% -4.6% -1.7% 0.1% 13 Generation MWH 14 Total Generation MWH 82,650 81,130 81,130 81,130 81,130 81,130 15 % Change 7.9% -1.8% 0.0% 0.0% 0.0% 0.0% 16 Number of Service Points 17 Residential 57,196 58,358 59,456 60,372 61,222 62,237 18 Small General Service 4,225 4,257 4,290 4,322 4,353 4,385 19 Medium General Service 997 1,011 1,026 1,042 1,057 1,074 20 Large General Service 13 13 13 13 13 12 21 Large Industrial Service 1 1 1 1 1 1 22 Street & Hwy Lightings 3 3 3 3 3 3 23 Interdepartmental 1 1 1 1 1 1 24 Total Customers 62,436 63,644 64,790 65,754 66,650 67,713 25 % Change 2.8% 1.9% 1.8% 1.5% 1.4% 1.6% 26 Blended cost per MWH for retail supply $ 83.52 $ 78.08 $ 70.44 $ 64.30 $ 77.09 $ 89.22 27 Steam Generation MLBS 376,948 400,300 400,300 200,150 - - 28 % Change -5.6% 6.2% 0.0% -50.0% -100.0% 0.0% ROCHESTER PUBLIC UTILITIES PRODUCTION & SALES STATISTICS FORECAST ELECTRIC UTILITY 2026 - 2027 Operating Budget Section 1 - Page 8
(This Page is Left Blank Intentionally)
Rochester Public Utilities Recommended Electric Utility 2026-2027 Capital Improvement & Major Maintenance Budget ROCHESTER PUBLIC UTILITIES RECOMMENDED ELECTRIC UTILITY 2026-2027 CAPITAL IMPROVEMENT & MAJOR MAINTENANCE BUDGET
(This Page is Left Blank Intentionally)
Title Pages 5 Year Project List: Major Maintenance Projects 1 Capital Projects 2 - 5 ROCHESTER PUBLIC UTILITIES ELECTRIC UTILITY 2026 - 2027 CAPITAL IMPROVEMENT AND MAJOR MAINTENANCE BUDGET INDEX Section 2
(This Page is Left Blank Intentionally)
Multi-Year Project Total 2026 2027 2028 2029 2030 5-Yr Total Power Delivery 1 Vegetation Mgmt Program Improvements 75,000 - - - - 75,000 2 Asbestos Mitigation in Manholes 100,000 100,000 100,000 100,000 100,000 500,000 3 T&D Inspection Services 100,000 100,000 100,000 100,000 100,000 500,000 4 Service Assured-Electric 178,720 184,082 189,604 195,292 201,151 948,849 5 Tree Trimming 1,920,000 1,957,691 2,095,193 2,298,157 2,399,104 10,670,145 6 Allocation - New Services 392,500 490,225 343,182 351,377 359,819 1,937,102 7 Transmission Lines & Equipment Maintenance 135,000 225,000 70,000 70,000 70,000 570,000 8 Distribution Lines & Equipment Maintenance 257,500 265,225 273,182 281,377 289,819 1,367,102 9 Load Management Tool Removal 156,000 156,000 - - - 312,000 10 Allocation - Substation Asset Management (Maint) 204,000 273,500 162,000 167,000 172,000 978,500 11 Downtown Reconfiguration Study - 50,000 150,000 - - 200,000 12 Downtown Automation Study - - - 100,000 - 100,000 13 DER Hosting Capacity Study - - - - 200,000 200,000 14 Trans Syst Reactive Pwr Study 100,000 - - - - 100,000 15 Trans Facility Age Assess/Replac Study - - - - 250,000 250,000 16 Total Power Delivery 3,226,220 3,311,498 3,139,979 3,311,826 3,782,073 16,771,596 17 Customer Relations 18 Cayenta Upgrade 292,680 - - - 292,680 585,360 19 Cayenta Application Enhancements 70,000 100,000 100,000 100,000 100,000 470,000 20 Phone Tech Upgrade 85,000 - - - - 85,000 21 Total Customer Relations 447,680 100,000 100,000 100,000 392,680 1,140,360 22 Corporate Services 23 Rates Modeling 20,000 22,000 22,000 24,000 24,000 112,000 24 Elec Cost-of-Srvc/Rate Design Study 100,000 - - 110,000 - 210,000 25 Vena Support - RVNA 80,000 110,000 63,000 63,000 66,000 382,000 26 Total Corporate Services 200,000 132,000 85,000 197,000 90,000 704,000 27 Information Services 28 Data Goveranance & Security 55,000 55,000 55,000 55,000 55,000 275,000 29 ERP Support Contract 75,000 80,000 150,000 150,000 150,000 605,000 30 SAP Technical Upgrade 100,000 - - - - 100,000 31 Data Analytics 100,000 120,000 123,600 127,308 131,127 602,035 32 PRI to SIP Conversion 40,000 - - - - 40,000 33 Cayenta Managed Services 85,000 85,000 85,000 85,000 85,000 425,000 34 Allocation - Technology 300,000 158,600 163,500 211,500 166,500 1,000,100 35 Info Risk & Security/City Shared Infrastructure 142,000 83,600 88,500 91,500 91,500 497,100 36 Business Systems/Applications 158,000 75,000 75,000 120,000 75,000 503,000 37 Total Information Services 755,000 498,600 577,100 628,808 587,627 3,047,135 38 Power Resources 39 SLP Decommissioning Work 400,000 180,000 350,000 225,000 250,000 1,405,000 40 Silver Lake Dam Modification 2,000,000 - - - - 2,000,000 41 Hydro DNR Analysis 175,000 - - - - 175,000 42 GT2 Generator Inspection - - 500,000 - - 500,000 43 Hydro Debris & Silt Removal - - 25,000 250,000 250,000 525,000 44 Allocation - Power Resources 697,000 695,000 315,000 905,000 380,000 2,992,000 45 Allocation - Facilities 208,000 210,000 212,000 214,000 216,000 1,060,000 46 Total Power Resources 3,480,000 1,085,000 1,402,000 1,594,000 1,096,000 8,657,000 47 General Management 48 Operating Contingency Fund 370,000 380,000 390,000 400,000 410,000 1,950,000 49 Total General Management 370,000 380,000 390,000 400,000 410,000 1,950,000 50 Total Major Maintenance Plan - External Expenditures 8,478,900 5,507,098 5,694,079 6,231,634 6,358,380 32,270,091 Rochester Public Utilities Electric Utility 2026 - 2030 Major Maintenance Plan Section 2 - Page 1
Multi-Year Project Total 2026 2027 2028 2029 2030 5-Yr Total 1 Power Delivery 2 Video Wall Controller & Monitor Replacement - - 250,000 - - 250,000 3 Backyard Aerial Lift 261,500 - - - - 261,500 4 GPS Enabled Locators 32,500 - - - - 32,500 5 Line Garage T&D Storage 141,400 11,000 130,400 - - - 141,400 6 Pole Replacement - - 230,000 305,000 505,000 1,040,000 7 Allocation - New Services 1,405,863 1,435,342 1,483,940 1,534,367 1,579,076 7,438,589 8 New Service Installations 880,572 883,950 910,466 937,780 958,297 4,571,064 9 Distribution Lines & Equipment - Capital 349,583 367,062 385,415 404,686 424,920 1,931,665 10 Property Damage - Repair/Replace 120,709 124,330 128,060 131,902 135,859 640,860 11 T&D Equipment Upgrade/Replace 55,000 60,000 60,000 60,000 60,000 295,000 12 Web-Based Service Application 25,000 25,000 25,000 25,000 25,000 125,000 13 Substation/Shop Test Equipment Upgrade/Replace 40,000 40,000 40,000 50,000 40,000 210,000 14 Substation Spares and Replacements 20,000 20,000 - 20,000 20,000 80,000 15 MAC-TS4 Vacuum Interrupter Tester 50,500 - - - - 50,500 16 Allocation - Substation Asset Management 220,000 215,000 222,500 232,500 242,500 1,132,500 17 Metering/Shop Test Equipment Upgrade/Replace 80,000 65,000 50,000 50,000 50,000 295,000 18 Upgrade to Legacy Comm Equipment 290,000 10,000 70,000 70,000 70,000 70,000 290,000 19 Production Meter Socket Rewires 360,000 10,000 150,000 200,000 - - 360,000 20 Advanced Metering Modules - - 210,000 144,000 168,000 522,000 21 Advanced Metering Project 17,340,752 7,539,956 1,880,808 - - - 16,118,896 22 Advanced Metering Project Headend Subscription 768,436 575,260 - - - - 575,260 23 Advanced Metering Project MDM Subscription 671,326 572,710 - - - - 572,710 24 Advanced Metering Project Meter Installation Service 10,715,031 5,834,336 977,744 - - - 6,812,080 25 Advanced Metering Project General Implementation Services 4,819,152 557,650 903,064 - - - 1,460,714 26 Meter Shop - Allocation 370,000 370,000 370,000 370,000 370,000 1,850,000 27 FDR 1731 Extension 65 ST NW 3868 - - 375,000 - - 375,000 28 6th St SE Bridge 1,900,000 350,000 600,000 400,000 400,000 - 1,750,000 29 CSAH 44 and Hwy 14 Interchange 1,258,020 525,000 325,000 - - - 850,000 30 N Broadway between Elton Hills & the Bridge 25,000 - - - - 25,000 31 Mayo Downtown Feeder Rework 4,545,001 300,000 300,000 500,000 1,300,000 1,500,000 3,900,000 32 Q6 Galloping Dampers 20,000 - - - - 20,000 33 FDR 803 & 812 Recon at 18th Ave - - - 100,000 300,000 400,000 34 Fiber Replacement Silver Lake 571,843 100,000 100,000 - - - 200,000 35 DMC - BRT Route Corridor 1,200,000 300,000 350,000 - - - 650,000 36 DMC - BRT West Transit Village 650,000 300,000 200,000 - - - 500,000 37 Grid North Partners-N Roch 345kV Line (BONDED) 31,230,000 2,490,000 1,720,000 10,180,000 15,600,000 1,240,000 31,230,000 38 Feeder 1913 Install 600,259 100,000 500,000 - - - 600,000 39 Feeder 1405 Installation 700,000 100,000 500,000 100,000 - - 700,000 40 65th St - 50th to 60th Ave 300,000 - - - - 300,000 41 IBM Subst Property Purch 150,000 50,000 100,000 - - - 150,000 42 IBM Subst & Trans Lines 75,000 - 50,000 25,000 - - 75,000 43 20th St SW - 1st Ave to Mayowood Rd - - - - 50,000 50,000 44 Eastwood Rd - Marion to Harbor Dr 900,000 - 100,000 400,000 400,000 - 900,000 45 13th & 14th St NW - 11th Ave to Broadway - - - - 50,000 50,000 46 25th St SW - - - - 50,000 50,000 47 11th Ave E - 4th St SE to Silver Creek Bridge - - - - 25,000 25,000 48 Feeder 306 Install - - - 50,000 200,000 250,000 49 Feeder 615 Install 700,000 - 200,000 300,000 200,000 - 700,000 50 Feeder 913 Install - - 200,000 200,000 300,000 700,000 51 Feeder 914 Install - - 600,000 200,000 - 800,000 52 Feeder 1315 Install - - - 50,000 350,000 400,000 53 Feeder 1602 Install - - 300,000 250,000 250,000 800,000 54 Feeder 1914 Install - - 300,000 400,000 1,200,000 1,900,000 55 Downtown New Duct Systems 3,100,000 100,000 500,000 1,000,000 1,000,000 500,000 3,100,000 56 Q2 Rebuild from Bear Creek - RCTC - - - - 200,000 200,000 57 Q4 Rebuild from BV Sub to Salem Rd 900,000 - 100,000 300,000 300,000 200,000 900,000 58 Q7 Rebuild to Grade B - - 200,000 300,000 200,000 700,000 59 Volt/VAR Optimization - - - - 50,000 50,000 60 Fiber - Marion to Cty PW/St Bridget Twr to WC 550,000 50,000 500,000 - - - 550,000 61 EV Bus Charging Expansion - - 100,000 150,000 250,000 500,000 62 50th Ave NW - 19th St to Valleyhigh 950,000 - 150,000 800,000 - - 950,000 63 TH 14E and S Broadway Intersection 1,350,000 50,000 800,000 300,000 200,000 - 1,350,000 64 Replace 20kA, 161kV Circuit Breakers 1,065,000 200,000 205,000 210,000 220,000 230,000 1,065,000 65 Bamber Valley Sub Capicitor Bank 150,000 50,000 100,000 - - - 150,000 Rochester Public Utilities Electric Utility 2026 - 2030 Capital Improvement Plan Section 2 - Page 2
Multi-Year Project Total 2026 2027 2028 2029 2030 5-Yr Total Rochester Public Utilities Electric Utility 2026 - 2030 Capital Improvement Plan 66 NE Substation 2,800,000 - - - 500,000 3,300,000 67 18th Ave SW - Mayowood to 40th 2,295,000 550,000 1,100,000 570,000 - - 2,220,000 68 Replace 161kV Disconnect Switches 690,000 110,000 115,000 120,000 125,000 130,000 600,000 69 55th St NW Feeder W of 60th Ave - - 100,000 350,000 300,000 750,000 70 Zumbro River Sub - T1 Repl 1,900,000 800,000 700,000 300,000 100,000 - 1,900,000 71 Willow Creek Sub Expansion - 200,000 100,000 100,000 250,000 650,000 72 Feeder 401 Temp Reroute to 4th Ave SW 75,000 - - - - 75,000 73 Feeder 401 Reinstall to 3rd Ave SW 250,000 50,000 200,000 - - - 250,000 74 SLP Decommissioning Prep - 100,000 - - - 100,000 75 Feeder 714 - Rejuvinate Cable 370,000 - 20,000 350,000 - - 370,000 76 CC Sub - Line Trap (SMMPA Project) 140,000 80,000 50,000 - - - 130,000 77 Hydro Line Sub - Padmount Repl - - - - 10,000 10,000 78 Center St Ramp Trans Repl - - 50,000 250,000 - 300,000 79 Silver Lake Sub - Reactor - - 50,000 300,000 350,000 700,000 80 SCADA OSI Version Upgrades w/I.T. - - 300,000 300,000 - 600,000 81 RTU and RTAC Replacements 175,000 50,000 125,000 - - - 175,000 82 Westside Sub New T2 - - - - 100,000 100,000 83 Bamber Valley 161kV Disconnect Switch 220,000 - 110,000 110,000 - - 220,000 84 Marion Rd T Wall Continuations 100,000 - 50,000 50,000 - - 100,000 85 Fiber to Downtown Dist Relays - - - 50,000 85,000 135,000 86 Leased Line Retirement & Repl 90,000 10,000 80,000 - - - 90,000 87 MH 99 Relocation Mayo 100,000 - - - - 100,000 88 Mayo West Logistics - - 100,000 131,743 50,000 281,743 89 60th Ave NW from 19th St to 55th St 2,220,000 20,000 100,000 600,000 600,000 900,000 2,220,000 90 E Center St 500,000 100,000 200,000 100,000 - - 400,000 91 3rd Ave SE Duct/Manhole Rebuild to 9th St SE - - - - 50,000 50,000 92 Century Link Pole Remediation 2,500,000 50,000 300,000 550,000 750,000 850,000 2,500,000 93 FDR 813 Rebuild, Assisi-Elton Hills 400,000 50,000 350,000 - - - 400,000 94 Elton Hills Dr NW FDR 805 - - - - 10,000 10,000 95 13th St & 2nd Ave NW Rebuild 150,000 50,000 100,000 - - - 150,000 96 4010 19th St NW, PCS Takeover - 100,000 - - - 100,000 97 Westside Feeder Duct 600,000 50,000 400,000 150,000 - - 600,000 98 Mayo Superior Dr Asset Sale - 220,000 - - - 220,000 99 New Feeder at Airport 2,554,779 54,779 850,000 750,000 900,000 - 2,554,779 100 Allocation - Distribution Expansion 6,729,133 3,667,500 3,682,770 3,064,521 3,160,000 3,150,000 16,724,791 101 Feeder Extensions 130,000 140,000 150,000 175,000 190,000 785,000 102 Feeder Rebuilds 120,000 130,000 140,000 150,000 165,000 705,000 103 Transmission Projects 47,500 50,000 55,000 60,000 65,000 277,500 104 Substation Projects 190,000 200,000 205,000 210,000 220,000 1,025,000 105 Road Projects 90,000 120,000 180,000 200,000 - 590,000 106 Road Projects - DMC 55,000 80,000 120,000 130,000 - 385,000 107 Manhole Switch Replacements 500,000 500,000 200,000 100,000 100,000 1,400,000 108 Cable Replacement 250,000 260,000 270,000 275,000 285,000 1,340,000 109 Manhole Repair/Replace 255,000 275,000 280,000 290,000 300,000 1,400,000 110 Fiber Optic Projects - 100,000 100,000 100,000 100,000 400,000 111 Distribution Transformers 6,729,133 1,550,000 1,322,770 719,521 700,000 800,000 5,092,291 112 Overhead to Underground Conversion 350,000 360,000 380,000 400,000 400,000 1,890,000 113 Pole Replacements 60,000 65,000 65,000 70,000 75,000 335,000 114 Upgrades Due to Electrification 70,000 80,000 200,000 300,000 450,000 1,100,000 115 Designer XI Implementation 950,000 350,000 600,000 - - - 950,000 116 Dual Sensor Drone - - 40,000 - - 40,000 117 Survey GPS Replacement - - - 40,000 - 40,000 118 Fiber Manager Replacement 80,000 - - - - 80,000 119 AMI OMS Integration - 100,000 - - - 100,000 120 OMS Replacement - 1,050,000 - - - 1,050,000 121 Small Drone Replacement 25,000 - - - 30,000 55,000 122 PCPA Compensation Payment 362,513 398,452 455,516 535,868 643,022 2,395,371 123 PCPA - SMMPA Reimbursement (180,874) (197,404) (225,068) (264,265) (316,696) (1,184,307) 124 Total Power Delivery 93,511,186 24,790,237 22,905,367 27,426,410 31,549,213 17,305,902 123,977,129 125 Customer Relations 126 DSM Rebate Software - 30,000 - - - 30,000 127 DSM Rebate Software Subscription - 825,000 - - - 825,000 128 Payment Kiosk 59,406 6,995 7,345 - - - 14,340 129 Add't Kiosk Locations - 41,400 106,900 13,895 14,340 176,535 130 Customer Portal Subscription 515,000 - - - - 515,000 131 Total Customer Relations 59,406 521,995 903,745 106,900 13,895 14,340 1,560,875 Section 2 - Page 3
Multi-Year Project Total 2026 2027 2028 2029 2030 5-Yr Total Rochester Public Utilities Electric Utility 2026 - 2030 Capital Improvement Plan 132 Information Services 133 Business Intelligence/Reporting 45,000 45,000 45,000 45,000 45,000 225,000 134 Call Quality Assurance 45,000 - - - - 45,000 135 SCADA Upgrade - - 100,000 500,000 - 600,000 136 Repl of Connectivity at Wtr Sites & Hydro damn 135,000 - - - - 135,000 137 EACMS Simplivity Replacement 200,000 - - - - 200,000 138 Vmware Host Server DS Cluster 216,000 99,000 117,000 - - - 216,000 139 HP Nimble SAM SC Cluster - 189,000 - - - 189,000 140 Repl of Connectivity at Wtr Sites - 450,000 - - - 450,000 141 Microsoft Fabric 33,000 55,000 55,000 55,000 55,000 253,000 142 Data Analytics Subscription 50,000 - - - - 50,000 143 Allocation - Technology 627,000 782,000 572,000 615,000 750,000 3,346,000 144 Network Management 164,000 141,000 131,000 209,000 144,000 789,000 145 Output Management 18,000 18,000 18,000 18,000 18,000 90,000 146 Server Management 138,000 228,000 183,000 138,000 138,000 825,000 147 Workstation Management 135,000 140,000 140,000 150,000 150,000 715,000 148 Backup/DR - 150,000 - - - 150,000 149 Operation Technology 172,000 105,000 100,000 100,000 300,000 777,000 150 Total Information Services 216,000 1,234,000 1,638,000 772,000 1,215,000 850,000 5,709,000 151 Corporate Services 152 SAP ERP/HCM 7,014,139 4,795,008 2,219,131 - - - 7,014,139 153 SAP ERP Subscription 6,059,781 582,500 5,477,281 - - - 6,059,781 154 Racking Replacement in Stockyard 25,000 26,000 28,000 29,000 30,000 138,000 155 Total Corporate Services 13,073,920 5,402,508 7,722,412 28,000 29,000 30,000 13,211,920 156 Power Resources 157 Hydro Trans Protection, Switchgear Repl, PT/CT Repl - 500,000 - - - 500,000 158 Westside Personnel Space (BONDED) 1,750,000 - 1,750,000 - - - 1,750,000 159 Hydro Line Pole Replacement 140,000 145,000 155,000 160,000 170,000 770,000 160 2030 RESOURCE PLAN 235,049,881 26,392,000 76,278,000 103,286,000 20,515,000 - 226,471,000 161 Westside Substation Expansion (BONDED) 5,000,000 - - 5,000,000 - - 5,000,000 162 Peaker (BONDED) 170,049,881 19,507,000 56,379,000 72,646,000 15,164,000 - 163,696,000 163 Firm Dispatchable Generation (BONDED) 60,000,000 6,885,000 19,899,000 25,640,000 5,351,000 - 57,775,000 164 Allocation - Power Resources 270,000 275,000 410,000 400,000 400,000 1,755,000 165 Allocation - Fleet 4,488,131 851,179 622,960 1,077,002 904,490 1,032,500 4,488,131 166 BUCC CRAC Unit Replacement - 80,000 - - - 80,000 167 SCADA CRAC Unit Replacement - - 80,000 - - 80,000 168 Substation HVAC Syst Phase 1 - - 168,000 - - 168,000 169 Garage Acoustics 88,000 - - - - 88,000 170 Exhaust Water Shop 35,000 - - - - 35,000 171 Concrete Stockyard 95,000 - - - - 95,000 172 EV Charges 45,000 - - - - 45,000 173 Directors Offices - 65,000 - - - 65,000 174 UPS #4 - 85,000 - - - 85,000 175 Service Center Windows - - 115,000 - - 115,000 176 Office Furniture - - - 150,000 - 150,000 177 Substation HVAC Sys Phase 2 - - - - 120,000 120,000 178 Cargo Trailer (Tech Srvcs) 15,000 - - - - 15,000 179 Allocation - Facilities Management 31,000 32,000 34,000 36,000 38,000 171,000 180 Total Power Resources 241,288,012 27,962,179 79,832,960 105,325,002 22,165,490 1,760,500 237,046,131 181 General Management 182 Project Contingency Fund 825,000 850,000 875,000 900,000 925,000 4,375,000 183 Mayo Bold Forward Unbound Contingency 350,000 - - - - 350,000 184 AED's (Safety) - - 5,000 12,500 - 17,500 185 Total General Management - 1,175,000 850,000 880,000 912,500 925,000 4,742,500 Section 2 - Page 4
Multi-Year Project Total 2026 2027 2028 2029 2030 5-Yr Total Rochester Public Utilities Electric Utility 2026 - 2030 Capital Improvement Plan 186 Total External Expenditures 348,148,524 61,085,919 113,852,484 134,538,312 55,885,098 20,885,742 386,247,555 187 Less: Bonding (28,882,000) (79,748,000) (113,466,000) (36,115,000) (1,240,000) (259,451,000) Less: Non-cash Subscription Assets (2,245,470) (6,302,281) 188 Less: Contributions in Aid of Construction (1,426,250) (1,892,500) (750,000) (750,000) (750,000) (5,568,750) 189 Net Capital External Expenditures (Rate Funded) 28,532,199 25,909,703 20,322,312 19,020,098 18,895,742 112,680,054 190 Total Internal Expenditures (Capital Labor) 7,250,998 8,171,497 6,353,071 6,384,541 5,740,979 33,901,086 191 Net Capital Expenditures 35,783,197 34,081,200 26,675,383 25,404,640 24,636,721 146,581,140 Section 2 - Page 5
(This Page is Left Blank Intentionally)
SECTION XIII Rochester Public Utilities Recommended Water Utility 2026-2027 Operating Budget ROCHESTER PUBLIC UTILITIES RECOMMENDED WATER UTILITY 2026-2027 OPERATING BUDGET
(This Page is Left Blank Intentionally)
Title Pages Assumptions 1 Forecast by Year 2026 through 2030 2 Condensed Income Statement - 2026 3 Condensed Income Statement - 2027 4 Revenue Sources & Expense Categories - 2026 5 Revenue Sources & Expense Categories - 2027 6 Operating Expenditures Graph 7 Production & Sales Statistics Forecast 8 ROCHESTER PUBLIC UTILITIES WATER UTILITY 2026 - 2027 OPERATING BUDGET INDEX Section 3
ASSUMPTIONS 2026 2027 • Interest Earnings Rate: 3.0% 3.0% • Average Salary Expense Change: 4.5% 3.4% (excluding headcount additions) • Anticipated Bonding $12.0 Million None • Change in Full-time Equivalents: 1 0 • Minimum Cash Reserve Requirement: $9,208,000 $8,501,800 • In Lieu of Tax $517,000 $538,020 RETAIL REVENUES / SALES 2026 2027 • Revenue Adjustment: 9.0% Proposed General Rate Change 9.0% Proposed General Rate Change • Water CCF Sales Forecast: 0.9% Increase from 2025 F2 0.8% Increase from 2026 Projected Sales Projected Sales • Total Water Utility Customers: 0.9% Increase over Y/E 2025 F2 0.9% Increase over Y/E 2026 Projected Customers Projected Customers • Forecast Assumes Normal Weather : ROCHESTER PUBLIC UTILITIES WATER UTILITY 2026 - 2027 OPERATING BUDGET (consists of COLA, merit and promotion increases) 538 Cooling Degree Days, 27.85 Inches Summer Rainfall Section 3 - Page 1
in 000's 2023 2024 2025 F2 2026 2027 2028 2029 2030 5.0% 5.5% 5.5% 9.0% 9.0% 7.0% 7.0% 5.0% $1.32 $1.32 1 Revenue 2 Retail Water $12,460 $12,874 $14,182 $15,654 $17,213 $18,611 $20,160 $21,404 3 Other Services & Fees $2,148 $2,122 $2,102 $2,140 $2,190 $2,239 $2,289 $2,341 4 Total Revenue $14,609 $14,996 $16,284 $17,794 $19,403 $20,850 $22,450 $23,744 5 Cost of Revenue 6 Water Supply $2,380 $2,431 $2,399 $2,347 $2,388 $2,439 $2,501 $2,568 7 Total Cost of Revenue $2,380 $2,431 $2,399 $2,347 $2,388 $2,439 $2,501 $2,568 8 Gross Margin 9 Retail Water $10,080 $10,443 $11,783 $13,307 $14,825 $16,172 $17,659 $18,836 10 Other Services & Fees $2,148 $2,122 $2,102 $2,140 $2,190 $2,239 $2,289 $2,341 11 TOTAL GROSS MARGIN $12,228 $12,565 $13,885 $15,447 $17,015 $18,411 $19,948 $21,176 12 Controllable Costs 13 Salaries & Benefits $3,495 $3,031 $3,838 $4,306 $4,695 $5,048 $5,074 $5,454 14 Other Operating Expenses $1,291 $1,350 $1,540 $1,579 $1,633 $1,690 $1,749 $1,811 15 Major Maintenance $396 $505 $2,230 $13,042 $7,355 $3,401 $471 $443 16 Non-Bonded Capital Projects $3,397 $4,769 $8,249 $11,217 $8,044 $5,982 $5,734 $5,414 17 TOTAL CONTROLLABLE COSTS $8,581 $9,655 $15,857 $30,144 $21,727 $16,120 $13,028 $13,121 18 Depreciation & Amortization $2,916 $2,976 $3,231 $4,151 $4,053 $4,317 $4,527 $4,760 19 Subscription Amortization - - $189 $195 $195 $195 $195 $195 20 Less Non Bonded Projects (capitalized) ($3,397) ($4,769) ($8,249) ($11,217) ($8,044) ($5,982) ($5,734) ($5,414) 21 Less Total Internal Costs (capitalized) ($324) ($638) ($624) ($874) ($387) ($221) ($255) ($207) 22 Interutility Allocation $1,956 $2,146 $1,775 $2,150 $2,333 $2,565 $2,633 $2,703 23 Total Operating Expenses $9,731 $9,370 $12,179 $24,549 $19,878 $16,994 $14,393 $15,158 24 Net Operating Income (Loss) $2,497 $3,196 $1,706 ($9,102) ($2,863) $1,417 $5,555 $6,019 25 Financing & Other Non-Operating Items: 26 Bond & Interest Related Expenses ($2) ($4) ($29) ($341) ($424) ($243) ($96) ($38) 27 Interest Income $775 $864 $1,420 $325 $240 $253 $333 $454 28 Misc Non-Operating Income (Expense) ($65) ($7) $649 $7,960 $8,564 $4,666 $1,152 ($86) 29 Total Financing & Non-Operating Items $709 $852 $2,040 $7,943 $8,380 $4,676 $1,389 $330 30 Income Before Transfers or Capital Contributions $3,206 $4,048 $3,746 ($1,159) $5,516 $6,093 $6,945 $6,348 31 Transfers (In Lieu of Taxes) ($491) ($469) ($501) ($517) ($538) ($547) ($560) ($618) 32 Capital Contributions $3,251 $2,487 $1,100 $1,103 $1,100 $1,100 $1,100 $1,100 33 Cash Transfers from City/Intercompany - - - - - - - - 34 NET INCOME $5,966 $6,066 $4,345 ($573) $6,078 $6,646 $7,485 $6,830 35 NET INCOME (Excluding Contrib & Cash Tfrs from City) $ 3,245 (1,676) $ $ 4,978 $ 5,546 $ 6,385 $ 5,730 36 TARGET NET INCOME $ 5,983 $ 6,358 $ 6,620 $ 6,812 $ 6,998 $ 7,172 37 Excess (Deficit) from Target (2,738) $ (8,034) $ (1,641) $ (1,265) $ (613) $ (1,441) $ 38 1/01 Cash Balance $ 14,774 $ 15,519 $ 13,360 $ 8,605 $ 7,649 $ 9,463 $ 13,035 39 Change in Net Assets $6,066 $4,345 ($573) $6,078 $6,646 $7,485 $6,830 40 Depreciation & Amortization $2,976 $3,420 $4,346 $4,248 $4,512 $4,722 $4,955 41 Capital Additions ($5,341) ($8,873) ($12,091) ($8,430) ($6,203) ($5,989) ($5,621) 42 Non-Cash Contributions ($2,337) ($1,100) ($1,103) ($1,100) ($1,100) ($1,100) ($1,100) 43 Debt Principal Payments - - - ($1,428) ($1,743) ($1,274) ($144) 44 Debt Proceeds - $383 $4,206 - - - - 45 Net Change in Other Assets/Liabilities ($618) ($334) $460 ($324) ($298) ($271) ($243) 46 Net Changes in Cash $745 ($2,159) ($4,755) ($956) $1,814 $3,572 $4,677 47 12/31 Cash Balance $ 15,519 $ 13,360 $ 8,605 $ 7,649 $ 9,463 $ 13,035 $ 17,712 48 Mimimum Cash Reserve $ 8,971 $ 8,630 $ 9,208 $ 8,502 $ 8,262 $ 7,996 $ 7,882 49 Excess (Deficit) from Miminum Cash Reserve $ 6,548 $ 4,730 (603) $ (852) $ $ 1,201 $ 5,039 $ 9,830 Historical Data ROCHESTER PUBLIC UTILITIES WATER UTILITY Management Reporting P&L RPU Rate Increase Section 3 - Page 2
2025 2026 2026 % in 000's 2023 2024 Orig Bdgt 2025 F2 2026 Orig Bdgt Variance to Orig Bdgt Variance 1 Revenue 2 Retail Water $12,460 $12,874 $13,237 $14,182 $15,654 $14,342 $1,312 9.1% 3 Other Services & Fees $2,148 $2,122 $2,138 $2,102 $2,140 $2,224 ($84) -3.8% 4 Total Revenue $14,609 $14,996 $15,375 $16,284 $17,794 $16,566 $1,228 7.4% 5 Cost of Revenue 6 Water Supply $2,380 $2,431 $2,465 $2,399 $2,347 $2,533 ($186) -7.3% 7 Total Cost of Revenue $2,380 $2,431 $2,465 $2,399 $2,347 $2,533 ($186) -7.3% 8 Gross Margin 9 Retail Water $10,080 $10,443 $10,772 $11,783 $13,307 $11,873 $1,433 12.1% 10 Other Services & Fees $2,148 $2,122 $2,138 $2,102 $2,140 $2,160 ($20) -0.9% 11 TOTAL GROSS MARGIN $12,228 $12,565 $12,910 $13,885 $15,447 $14,033 $1,414 10.1% 12 Controllable Costs 13 Salaries & Benefits $3,495 $3,031 $3,850 $3,838 $4,306 $4,170 $136 3.3% 14 Other Operating Expenses $1,291 $1,350 $1,597 $1,540 $1,579 $1,655 ($76) -4.6% 15 Major Maintenance $396 $505 $2,115 $2,230 $13,042 $6,853 $6,189 90.3% 16 Non-Bonded Capital Projects $3,397 $4,769 $8,539 $8,249 $11,217 $7,211 $4,006 55.6% 17 TOTAL CONTROLLABLE COSTS $8,581 $9,655 $16,101 $15,857 $30,144 $19,889 $10,255 51.6% 18 Depreciation & Amortization $2,916 $2,976 $3,349 $3,231 $4,151 $3,316 $835 25.2% 19 Subscription Amortization - - $222 $189 $195 $346 ($152) -43.8% 20 Less Non Bonded Projects (capitalized) ($3,397) ($4,769) ($8,539) ($8,249) ($11,217) ($7,211) ($4,006) 55.6% 21 Less Total Internal Costs (capitalized) ($324) ($638) ($341) ($624) ($874) ($633) ($241) 38.1% 22 Interutility Allocation $1,956 $2,146 $1,766 $1,775 $2,150 $1,819 $331 18.2% 23 Total Operating Expenses $9,731 $9,370 $12,558 $12,179 $24,549 $17,527 $7,022 40.1% 24 Net Operating Income (Loss) $2,497 $3,196 $353 $1,706 ($9,102) ($3,494) ($5,608) 160.5% 25 Financing & Other Non-Operating Items: 26 Bond & Interest Related Expenses ($2) ($4) ($27) ($29) ($341) ($111) ($231) 208.7% 27 Interest Income $775 $864 $718 $1,420 $325 $653 ($328) -50.3% 28 Misc Non-Operating Income (Expense) ($65) ($7) $653 $649 $7,960 $3,769 $4,191 111.2% 29 Total Financing & Non-Operating Items $709 $852 $1,343 $2,040 $7,943 $4,311 $3,632 84.3% 30 Income Before Transfers or Capital Contributions $3,206 $4,048 $1,696 $3,746 ($1,159) $817 ($1,976) -241.9% 31 Transfers (In Lieu of Taxes) ($491) ($469) ($514) ($501) ($517) ($515) ($2) 0.4% 32 Capital Contributions $3,251 $2,487 $1,100 $1,100 $1,103 $1,100 $3 0.3% 33 Cash Transfers from City - - $3,000 - - - - 0.0% 34 NET INCOME $5,966 $6,066 $5,282 $4,345 ($573) $1,402 ($1,975) -140.9% 35 1/01 Cash Balance $ 14,774 $ 11,115 $ 15,519 $ 13,360 $ 10,423 $ 2,937 28.2% 36 Change in Net Assets $6,066 $5,282 $4,345 ($573) $1,348 ($1,921) -142.5% 37 Depreciation & Amortization $2,976 $3,349 $3,420 $4,346 $3,662 $684 18.7% 38 Capital Additions/Service Territory Comp ($5,341) ($8,880) ($8,873) ($12,091) ($7,790) ($4,301) 55.2% 39 Non-Cash Contributions ($2,337) ($1,100) ($1,100) ($1,103) ($1,100) ($3) 0.3% 40 Debt Principal Payments - - - - - - 0.0% 41 Debt Proceeds - $845 $383 $4,206 $3,395 $811 23.9% 42 Net Change in Other Assets/Liabilities ($618) ($410) ($334) $460 ($387) $847 -218.7% 43 Net Changes in Cash $745 ($914) ($2,159) ($4,755) ($872) ($3,883) 445.4% 44 12/31 Cash Balance $ 15,519 $ 10,202 $ 13,360 $ 8,605 $ 9,552 (946) $ -9.9% 45 Mimimum Cash Reserve $ 8,971 $ 8,630 $ 8,630 $ 9,208 $ 8,004 $ 1,204 15.0% 46 Excess (Deficit) from Miminum Cash Reserve $ 6,548 $ 1,572 $ 4,730 (603) $ $ 1,548 (2,150) $ -138.9% Historical Data ROCHESTER PUBLIC UTILITIES WATER UTILITY Management Reporting P&L Section 3 - Page 3
2025 2027 2027 % (in 000's) 2023 2024 Orig Bdgt 2025 F2 2027 Orig Bdgt Variance to Orig Bdgt Variance 1 Revenue 2 Retail Water $12,460 $12,874 $13,237 $14,182 $17,213 $15,401 $1,811 11.8% 3 Other Services & Fees $2,148 $2,122 $2,138 $2,102 $2,190 $2,405 ($214) -8.9% 4 Total Revenue $14,609 $14,996 $15,375 $16,284 $19,403 $17,806 $1,597 9.0% 5 Cost of Revenue 6 Water Supply $2,380 $2,431 $2,465 $2,399 $2,388 $2,625 ($237) -9.0% 7 Total Cost of Revenue $2,380 $2,431 $2,465 $2,399 $2,388 $2,625 ($237) -9.0% 8 Gross Margin 9 Retail Water $10,080 $10,443 $10,772 $11,783 $14,825 $13,001 $1,824 14.0% 10 Other Services & Fees $2,148 $2,122 $2,138 $2,102 $2,190 $2,180 $10 0.5% 11 TOTAL GROSS MARGIN $12,228 $12,565 $12,910 $13,885 $17,015 $15,181 $1,834 12.1% 12 Controllable Costs 13 Salaries & Benefits $3,495 $3,031 $3,850 $3,838 $4,695 $4,337 $358 8.3% 14 Other Operating Expenses $1,291 $1,350 $1,597 $1,540 $1,633 $1,716 ($83) -4.8% 15 Major Maintenance $396 $505 $2,115 $2,230 $7,355 $10,061 ($2,706) -26.9% 16 Non-Bonded Capital Projects $3,397 $4,769 $8,539 $8,249 $8,044 $7,564 $480 6.3% 17 TOTAL CONTROLLABLE COSTS $8,581 $9,655 $16,101 $15,857 $21,727 $23,678 ($1,951) -8.2% 18 Depreciation & Amortization $2,916 $2,976 $3,349 $3,231 $4,053 3,806 $247 6.5% 19 Subscription Amortization - - $222 $189 $195 $346 ($152) -43.8% 20 Less Non Bonded Projects (capitalized) ($3,397) ($4,769) ($8,539) ($8,249) ($8,044) ($7,564) ($480) 6.3% 21 Less Total Internal Costs (capitalized) ($324) ($638) ($341) ($624) ($387) ($632) $246 -38.9% 22 Interutility Allocation $1,956 $2,146 $1,766 $1,775 $2,333 $1,874 $459 24.5% 23 Total Operating Expenses $9,731 $9,370 $12,558 $12,179 $19,878 $21,509 ($1,631) -7.6% 24 Net Operating Income (Loss) $2,497 $3,196 $353 $1,706 ($2,863) ($6,327) $3,464 -54.8% 25 Financing & Other Non-Operating Items: 26 Bond & Interest Related Expenses ($2) ($4) ($27) ($29) ($424) ($182) ($242) 133.2% 27 Interest Income $775 $864 $718 $1,420 $240 $577 ($337) -58.4% 28 Misc Non-Operating Income (Expense) ($65) ($7) $653 $649 $8,564 $7,704 $860 11.2% 29 Total Financing & Non-Operating Items $709 $852 $1,343 $2,040 $8,380 $8,099 $280 3.5% 30 Income Before Transfers or Capital Contributions $3,206 $4,048 $1,696 $3,746 $5,516 $1,772 $3,745 211.3% 31 Transfers (In Lieu of Taxes) ($491) ($469) ($514) ($501) ($538) ($522) ($16) 3.0% 32 Capital Contributions $3,251 $2,487 $1,100 $1,100 $1,100 $1,100 - 0.0% 33 Cash Transfers from City - - $3,000 - - - - 0.0% 34 NET INCOME $5,966 $6,067 $5,282 $4,345 $6,078 $2,350 $3,729 158.7% 35 1/01 Cash Balance $ 14,774 $ 11,115 $ 15,519 $ 8,605 $ 9,552 (946) $ -9.9% 36 Change in Net Assets $6,066 $5,282 $4,345 $6,078 $2,296 $3,783 164.8% 37 Depreciation & Amortization $2,976 $3,349 $3,420 $4,248 $4,153 $95 2.3% 38 Capital Additions/Service Territory Comp ($5,341) ($8,880) ($8,873) ($8,430) ($8,142) ($288) 3.5% 39 Non-Cash Contributions ($2,337) ($1,100) ($1,100) ($1,100) ($1,100) - 0.0% 40 Debt Principal Payments - - - ($1,428) - ($1,428) 0.0% 41 Debt Proceeds - $845 383 - $760 ($760) -100.0% 42 Net Change in Other Assets/Liabilities ($618) ($410) ($334) ($324) ($363) $39 -10.8% 43 Net Changes in Cash $745 ($914) ($2,159) ($956) ($2,397) $1,441 -60.1% 44 12/31 Cash Balance $ 15,519 $ 10,202 $ 13,360 $ 7,649 $ 7,154 495 $ 6.9% 45 Mimimum Cash Reserve $ 8,971 $ 8,630 $ 8,630 $ 8,502 $ 7,342 $ 1,160 15.8% 46 Excess (Deficit) from Miminum Cash Reserve $ 6,548 $ 1,572 $ 4,730 (852) $ (188) $ (665) $ 353.9% ROCHESTER PUBLIC UTILITIES WATER UTILITY Management Reporting P&L Historical Data Section 3 - Page 4
ROCHESTER PUBLIC UTILITIES WATER UTILITY 2026 - 2027 Operating Budget Retail Water 86.1% Other Services & Fees 13.9% 2026 GROSS MARGIN $15,446,760 Operating & Maintenance 75.1% Electricity 5.0% Depreciation 16.2% Billing Fee 2.7% Chemicals 1.0% 2026 EXPENSE USES $26,896,036 Section 3 - Page 5
ROCHESTER PUBLIC UTILITIES WATER UTILITY 2026 - 2027 Operating Budget Retail Water 87.1% Other Services & Fees 12.9% 2027 GROSS MARGIN $17,014,841 Operating & Maintenance 70.2% Electricity 6.3% Depreciation 19.1% Billing Fee 3.1% Chemicals 1.3% 2027 EXPENSE USES $22,265,956 Section 3 - Page 6
WATER UTILITY 2026 - 2027 Operating Budget ROCHESTER PUBLIC UTILITIES - 5,000,000 10,000,000 15,000,000 20,000,000 25,000,000 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Water Operating Expenditures Section 3 - Page 7
2025 F2 2026 2027 2028 2029 2030 1 CCF Pumped 6,346,717 6,382,180 6,434,120 6,514,767 6,621,868 6,712,852 2 % Change 4.6% 0.6% 0.8% 1.3% 1.6% 1.4% 3 Retail CCF 6,044,275 6,095,683 6,145,291 6,222,318 6,324,611 6,411,511 4 % Change 4.8% 0.9% 0.8% 1.3% 1.6% 1.4% 5 Number of Service Points 6 Residential 38,663 39,016 39,366 39,713 40,058 40,400 7 Commercial 3,949 3,991 4,033 4,075 4,119 4,164 8 Industrial 22 22 22 22 22 22 9 Interdepartmental 1 1 1 1 1 1 10 Total Customers 42,635 43,030 43,422 43,811 44,200 44,587 11 % Change 1.5% 0.9% 0.9% 0.9% 0.9% 0.9% ROCHESTER PUBLIC UTILITIES PRODUCTION & SALES STATISTICS FORECAST WATER UTILITY 2026 - 2027 Operating Budget Section 3 - Page 8
(This Page is Left Blank Intentionally)
Rochester Public Utilities Recommended Water Utility 2026-2027 Capital Improvement & Major Maintenance Budget ROCHESTER PUBLIC UTILITIES RECOMMENDED WATER UTILITY 2026-2027 CAPITAL IMPROVEMENT & MAJOR MAINTENANCE BUDGET
(This Page is Left Blank Intentionally)
Title Pages 5 Year Project List: Major Maintenance 1 Capital 2 ROCHESTER PUBLIC UTILITIES WATER UTILITY 2026 - 2027 CAPITAL IMPROVEMENT AND MAJOR MAINTENANCE BUDGET INDEX Section 4
(This Page is Left Blank Intentionally)
Multiple-Year Project Total 2026 2027 2028 2029 2030 5-Yr Total 1 Engineering & Distribution 2 Operating Contingency Fund 93,000 96,000 99,000 102,000 105,000 495,000 3 Water Cost-of-Service/Rate Design Study - - 55,000 - - 55,000 4 Wtr Master Plan Update 694,800 - - - - 694,800 5 Lead & Galvanized Wtr Main Replacement 11,955,700 6,947,875 2,927,025 40,425 - 21,871,025 6 Service Assure - Water 268,000 281,400 289,700 298,500 307,500 1,445,100 7 Total Engineering & Distribution 13,011,500 7,325,275 3,370,725 440,925 412,500 24,560,925 8 Power Resources 9 Allocation - RPU Water Facilities 30,000 30,000 30,000 30,000 30,000 150,000 10 Total Power Resources 30,000 30,000 30,000 30,000 30,000 150,000 11 Total Major Maintenance Plan - External Expenditures 13,041,500 7,355,275 3,400,725 470,925 442,500 24,710,925 Rochester Public Utilities Water Utility 2026 - 2030 Major Maintenance Plan Section 4 - Page 1
RkJQdWJsaXNoZXIy NTk0MTg2