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HomeMy WebLinkAbout2025-04-29 - RPU Board - Agenda Packet 2 3 4 5 6 7 8 _________________________ Board President _________________________ Secretary _________________________ Date 9 : 21 22 23 24 25 26 27 28 29 2: 31 32 33 R E S O L U T I O N BE IT RESOLVED by the Public Utility Board of the City of Rochesterto accept and place on file the 2024 RPU Renewable Energy Objective Report. PASSED AND ADOPTED BY THE PUBLIC UTILITY BOARD OF THE CITY OF ROCHESTER, MINNESOTA, THIS 29th DAY OF April 2025. ___________________________________ PRESIDENT ___________________________________ SECRETARY 34 35 R E S O L U T I O N BE IT RESOLVED by the Public Utility Board of the City of Rochester to approve a resolution to accept the bid from MasTec North America, Inc. in the amount of $199,058.25 and to authorize the Project Manager to execute the services up to the approved budgeted amount. PASSED AND ADOPTED BY THE PUBLIC UTILITY BOARD OF THE CITY OF ROCHESTER, MINNESOTA, THIS 29th DAY OF April 2025. ___________________________________ PRESIDENT ___________________________________ SECRETARY 36 37 38 R E S O L U T I O N BE IT RESOLVED by the Public Utility Board of the City of Rochester to approve a resolution to accept the bid from Border States Electric for the purchase of 108,000 (+/-) medium voltage cable (inventory item 2247; 1/0 AWG, 15KV), subject to escalation/de-escalation at the time of delivery PASSED AND ADOPTED BY THE PUBLIC UTILITY BOARD OF THE CITY OF ROCHESTER, MINNESOTA, THIS 29th DAY OF April 2025. ___________________________________ PRESIDENT ___________________________________ SECRETARY 39 3: R E S O L U T I O N BE IT RESOLVED by the Public Utility Board of the City of Rochester to accept the 2024 Financial Audit Report and place it on file. PASSED AND ADOPTED BY THE PUBLIC UTILITY BOARD OF THE CITY OF ROCHESTER, MINNESOTA, THIS 29th DAY OF April 2025. ___________________________________ PRESIDENT ___________________________________ SECRETARY 41 42 wƚĭŷĻƭƷĻƩ tǒĬƌźĭ ƷźƌźƷźĻƭ Commercial Customer Satisfaction Survey 2025 tƩĻƦğƩĻķ ŅƚƩʹ April 3,2025 tƩĻƦğƩĻķ ĬǤʹ 2117 Cliff Road Eagan, MN 55122 www.qmarketresearch.com Contact: Rick Naymark 612-875-9081 rnaymark@qmarketresearch.com 1 43 wƚĭŷĻƭƷĻƩ tǒĬƌźĭ ƷźƌźƷźĻƭ /ƚƒƒĻƩĭźğƌ /ǒƭƷƚƒĻƩ {ğƷźƭŅğĭƷźƚƓ {ǒƩǝĻǤ ЋЉЋЎ Introduction Rochester Public Utilities (RPU) is a municipally owned electric and water utility located in Rochester, MN. RPU serves over 57,000 electric customers and 41,000 water customers in a 60 square mile service area. RPU operates under the direction of a five-member, mayor-appointed Utility Board and under the Rochester City Council. RPU has about 2,885 commercial customer contacts. Of them, 2,262 are mailing address only, and 623 are reachable by email addresses. Objectives of Commercial Research RPU aims to gather feedback from its commercial customers through a survey in the first quarter of 2025, conducted by Q Market Research (QMR). The survey will assess overall satisfaction with the services and programs offered, while also gathering insights into customer needs and perceptions related to utility communication and other relevant issues. This commercial survey will focus on these key areas: 1. Overall satisfaction and Net Promoter Score 2. Reliability of the electric and -water services provided 3. Outage restoration 4. Ease of doing business with RPU 5. Quality of service to commercial customers (customer care; commercial account managers) 6. Energy rebates, rebate application process 7. Small business rate programs 8. Customer concerns - what they care about and do not care about 9. Overall value for money with RPU 10. Billing/payment experience (understanding bill, use of customer portal, resolution of billing issues) 11. Improvement suggestions Issues with Comparing 2025 Results with the 2019 Commercial Survey commercial accounts research where there is a possible correlation. However, the 2019 survey consisted of 31 phone interviews. The questions were mostly different and drawing statistical summaries from 31 data points is likely not accurate compared to the 125 data points we have in the 2025 survey. Survey Methodology A printed survey was mailed to 2,262 commercial customers of RPU. This list represented the current complete list of commercial customers EXCEPT those with email addresses. The mailed survey included 2 44 a return, postage-paid envelope addressed to Q Market Research. The printed survey also contained a web link and QR code to allow respondents to complete the survey on a computer or mobile device. An email invite was also sent to 623 RPU commercial customers (representing all commercial customers where RPU has an email contact) to complete the same survey from their computer or mobile device, completely online. No incentives were offered for participation. 2025 Commercial Data Collection The mail survey was sent on February 24, 2025, and was closed on March 26, 2025, and 88 responses were received. The email survey was sent beginning on February 24, 2025, and was closed on March 24, 2025, and 37 responses were received. In total, 125 responses were received (mail and online), yielding a 4.3% response rate (statistically valid at a 95% confidence level to within +/- 9%). This is typical of this type of survey. aĻƷŷƚķ {ĻƓƷ wĻƷǒƩƓĻķ wĻƭƦƚƓƭĻ wğƷĻ Email 623 37 6 % Mail 2262 88 4 % Total 2885 125 4.3 % 3 45 Survey Promoted by RPU (March 18, 2025) In addition to the mailing and emails (and an additional two email reminders), RPU actively promoted the survey to employers through their commercial account reps and in an employer newsletter. The newsletter article is shown below. 4 46 Executive Summary: RPU Commercial Customers 2025 Key Finding 1: Commercial satisfaction survey respondents were representative of Rochester businesses. In business type, size and number of locations, respondents were reasonably representative of the Rochester, MN employer profile. The bulk of respondents were in the retail/services category, with 1-10 employees and one location, although all categories were represented. Key Finding 2: Overall commercial customer satisfaction with RPU is high. Overall commercial customer satisfaction in 2025 is 6.2 out of 7, which is high on an absolute basis. RPU gets highest satisfaction scores for reliability, ease of doing business and outage restoration. Value for the money scores lowest. In open-ended comments, employers had specific suggestions to address service issues and improvements. Key Finding 3commercial customer Net Promoter Score was 51.3, in the attributable to the high satisfaction with service. commercial customers in 2025 was in the 51.3. This score mirrors the residential NPS in Q1 2025 of 52.2, also in the excellent range. Data in the report -known brands and when compared to - Key Finding 4: About half of commercial customers participate in commercial rebate programs and are satisfied with them. 48% of commercial customers participated in commercial rebate programs, with 84% completely or mostly satisfied. Reasons for not participating primarily are lack of awareness of the program and expecting not to qualify. Key Finding 5: Use of the commercial customer portal is low. Only 5% of commercial customers use the portal daily or weekly, 21% use it monthly, but 66% rarely or never use the portal. In a subsequent question, ease of use of the portal is rated moderate, at 5.6 out of 7, which may explain lower usage. Key Finding 6: Generally, RPU scores high on the billing and payment experience. 5 47 Commercial customers say their bill is easy to understand and RPU generally is helpful in resolving billing Key Finding 7: A rough comparison of 2025 commercial customer research with 2019 commercial customer research shows somewhat similar ratings. The two studies are not comparable. The 2019 study consisted of 31 phone interviews. The 2025 study includes 125 mail and email responses. The former is almost qualitative in nature and the current survey is quantitative in nature. A chart in the report attempts to compare them. Where comparisons can be qualitative, the two results are generally comparable. Understanding of the bill and use of rebates seems to have improved. hƦĻƓΏĻƓķĻķ ĭƚƒƒĻƓƷƭ All verbatim responses are in the Appendix of this report, as is a copy of the 2025 survey, itself. The open-ended comments at the end of this report provide excellent commentary on issues of concern. 5ĻƒƚŭƩğƦŷźĭƭ Demographics of the companies are included and cover: --Number of employees --Number of facilities/locations --Business type or category /ǒƭƷƚƒĻƩƭ ǞğƓƷźƓŭ ğ ĭğƌƌΏĬğĭƉ ŅƚƩ ǝğƩźƚǒƭ ƩĻğƭƚƓƭ Separately, RPU will be sent a spreadsheet of 10 commercial customers who asked to be contacted; their contact information and comments are included. 6 48 A Comparison of the 2025 Research to the 2019 Commercial Study The most recent research on RPU commercial customers was conducted by QMR in 2019. This study differed significantly from the one conducted in 2025. The 2019 research involved 31 phone interviews, with questions that largely did not overlap those in the 2025 survey. In contrast, the 2025 survey was distributed via mail and email, yielding 125 responses after reaching out to the entire list of RPU employers. Where the two projects overlap is mostly shown in the overall satisfaction chart in the 2025 report, below. There are three areas of comparative overlap. Other instances of similar questions are shown in the table below and shaded. Research Topic 2019 2025 Quality compared to peer Rated RPU 8.23 of 10. Gas/Oil Quality of RPU service was 6.3 utilities company was rated 8.5 of 7. On a 10 pt scale, this would be: 9.0 Level of trust Rating of RPU as utility provider overall was 6.2 of 7. On percent scale, this would be 88.5% General reasons for contacting Billing issues; general service Did not ask. RPU issues Top 3 expectations of RPU Reliability, service and value Did not ask. Service and communication Highest on outage restoration, Quality of RPU service was 6.3 score (1-10) followed by communications of 7. and handling of service calls How RPU can improve Lower rates and service Lower rates and fees, improve charges, explain billing better, service and make global make online payment easier, changes such as continue your improve commercial info on move to sustainable energy, website, more empathy for consider nuclear energy, reduce business cash-flow problems cost of energy-saving equipment and charges for wastewater, stormwater Cost issues Value for money was rated 5.7 are higher than residential fees out of 7. 3 ways to interact with RPU 45% via service center; 33% via Did not ask. Service call; 13% commercial account manager Communication preferences Outages by text; power quality Did not ask. by email; voltage blips by email. Understanding of RPU bill Rated it 5.16 out of 7. Rated it 6.1 out of 7. 7 49 Awareness and support of Did not ask. renewable energy 33% said it would help their business Should RPU exceed MN on 58% said RPU should exceed Did not ask. renewables MN goal but 64% would not pay more Do you have a sustainability 35% said yes Did not ask. program? Would you pay more for 29% would pay 0; 22% would Did not ask. renewables pay 5% more; 35% would pay 10% more Are you moving to EV fleet Did not ask. Would you like more detailed 64% would like more detailed Did not ask. energy use info energy use info Would you pay more for more But 22% would be willing to pay Did not ask. energy use info more for it. Have you used rebates 35% use energy rebates 48% use energy rebates Even in cases of overlap, comparison is problematic because we are comparing qualitative research of 31 data points (2019) to quantitative research with 125 data points (2025). 8 4: Detailed Findings: 2025 About the Respondents Respondents were asked to identify the total number of employees, number of facilities/locations and type of business. Here are charts showing thisbusiness profileinformation in the general sense (crosstabs are available on request): Type of Business (Percent of Respondents) 50.0% 46.2% 45.0% 40.0% 36.8% 35.0% 30.0% 25.0% 20.0% 16.2% 15.0% 10.0% 5.0% 0.9% 0.0% ManufacturingRetail/ServicesProf/Scientific/TechOther Percent Note: 9 51 Number of Employees (Percent of Respondents) 60.0% 55.8% 50.0% 40.0% 26.7% 30.0% 20.0% 14.2% 10.0% 3.3% 0.0% 1-10 Ees11-50 Ees51-99 Ees100+ Ees Percent Number of Facilities/Locations (Percent of Respondents) 70.0% 64.5% 60.0% 50.0% 40.0% 30.0% 19.8% 20.0% 11.6% 10.0% 4.1% 0.0% 12 to 56 to 910 or more Percent 10 52 2025 Commercial Satisfaction with RPUOverall IsHigh at 6.2Out of 7 Respondents to the survey were asked to rate their satisfaction with Rochester Public Utilities (RPU) on six different factors. The factors were: 1.Overall satisfaction with RPU 2.Reliability of the power, water and other services provided by RPU 3.compared to other utilities 4.Ease of doing business with RPU 5.toward outage restoration 6.Overall value for their money with RPU be seen in the graphsbelow. The ƚǝĻƩğƌƌ satisfaction score for RPUcommercial customersin2025is 6.2, which compares similarly to the 6.3 rating given by residential customers in 2025. Below is achart that shows average satisfaction responses by all employers. Commercial Satisfaction with RPU All Responses: 2025 1 to 7 Scale (1=Completely Dissatisfied; 7=Completely Satisfied) 6.8 6.6 6.6 6.46.4 6.3 6.4 6.2 6.2 6 5.7 5.8 5.6 5.4 5.2 Ease of doingReliabilityQuality ofValue for moneyOutageOverall businessservicerestoration 2025 Reliability gains the highest satisfaction score and value for the money is the lowest satisfaction score. 11 53 Open Ended Responses & Analysis Includes Dissatisfaction with High Rates How can we better support your business goals and operations (new services/improvements)? RPU received 38 responses, each often with multiple suggestions. The types of responses for 2025 are shown in the table below (Full verbatims are at the end of the report). Commercial customers addressed a variety of topics, including service suggestions, equipment suggestions and global energy suggestions. Their responses are summarized and categorized below: bǒƒĬĻƩ ƚŅ LƭƭǒĻ tƚƭźƷźǝĻ ƚƩ ǤƦźĭğƌ ƚƩ ƓźƨǒĻ wĻƭƦƚƓƭĻƭ aĻƓƷźƚƓƭ bĻŭğƷźǝĻ 15 High price, Negative --Fees are excessive customer fee, --$410 charge for stormwater? charges --Reduce costs of energy and equipment 13 Service issues and Negative ---minute waits on calls to service suggested and --Offer real-time monitoring so we can catch issues improvements Neutral --3 power outages are too many. I may be forced to buy a generator. --Keep up your in-person meetings --More aggressively promote ways to reduce energy usage, rebates -- power hook-up. It could be in the middle of night, so it is costly for us to wait. --Provide guidelines for what customers should do in an emergency --I have multiple properties; can you bill for all at one time? --Give us a list of free services, and a list of service that cost with pricing 10 Positive -- great job every time! --I like the payment portal. 6 Global issues Neutral --Continue your move to sustainable energy and --Consider nuclear energy Negative --Reduce cost of energy-saving equipment --Wastewater, stormwater charges high hƷŷĻƩ ĭƚƒƒĻƓƷƭʹ --Surveys are a waste of money --Print your flyers in black and white, not color, to save money The open-ended responses to this question shown at the end of this report are informative. 12 54 Net Promoter Score for 2025was 51.3, in the Excellent Range. While the NPS score was ƓƚƷ measured during the employer research in 2019(nor would it have been valid with only 31data points), the RPU commercial customer NPS in 2025 of 51.3compares to the 2025 NPS among residential customers of 52.2. Other NPS Scores entities(energy and non-energy). Sample NPS Scores March 2025 60 51.3 50 50 40 27.1 30 20 11 10 6 0 Wells FargoFordWalmartDeltaRPU 13 55 Other Utility NPS Scores Note that scores vary widely. One of the most comprehensive studies was from 2020. Although this data is 4-5 years old, it is perhaps comparative. Sample Utility NPS Scores 2020 60 Verint 51.3 50 44 40 32.4 30 24.6 16.7 16.6 20 10 0 PG&EDuke EnergyCon EdisonExel EnergyGeorgiaFlorida P&ERPU -10 (Progress)(NSP)Power(NextEra) -12.4 -20 Analysis of NPS score The bt{ ŅƚƩ wt ĭƚƒƒĻƩĭźğƌ ĭǒƭƷƚƒĻƩƭ źƓ ЋЉЋЎ źƭ ЎЊ͵Ќ.Based on comments as to why this rating was given, the score reflects 32 specific mentions of how satisfied business customers are with RPU. Nationally, public utilities have an average Residential NPS score of 8, according to the Qualtrics XM Institute. For a national benchmark, NPS scores for utilities are only available from the residential perspective. The NPS for business electric customerswill be available from JD Power at the end of 2025. Comments about the NPS score are summarized on the next page and included entirelyin the appendix. The bĻƷ ƦƩƚƒƚƷĻƩ ƭĭƚƩĻ(bt{) is a widely used market research metric that typically takes the form of a single survey question asking respondents to rate the likelihood that they would recommend a company, product, or a service to a friend or colleague. The NPS is typically interpreted and used as an indicator of customer loyalty.NPS has been widely adopted by Fortune 500 companies and other organizations.Proponents of the Net Promoter approach claim the score can be used to motivate an organization to become more focused on improving products and services. The Net Promoter Score was calculated using the results from the question:hƓ ğ ƭĭğƌĻ ƚŅ Љ ΛƓƚƷ ğƷ ğƌƌ ƌźƉĻƌǤΜ Ʒƚ ЊЉ ΛĻǣƷƩĻƒĻƌǤ ƌźƉĻƌǤΜͲ ŷƚǞ ƌźƉĻƌǤ źƭ źƷ ƷŷğƷ Ǥƚǒ Ǟƚǒƌķ ƩĻĭƚƒƒĻƓķ wƚĭŷĻƭƷĻƩ tǒĬƌźĭ ƷźƌźƷźĻƭ ğƭ ğ ĭƚƒƒĻƩĭźğƌ ǒƷźƌźƷźĻƭ ƦƩƚǝźķĻƩͪThe Net Promoter Score (NPS) is calculated by taking the percent of those who respond that theyare the most satisfied (rated a 9 or 10), subtracted from the percent of those that are least satisfied (rated a 0 through 6). Scores can range from -100.0 to 100.0. A scoreabove 0 is considered good and a score of 50 or above is considered excellent. 14 56 Reasons for Giving the Commercial NPS Score Commercial customers were asked why they rated RPU as they did for the NPS score in 2025. 52 employees left comments. Their answers are summarized in the chart below. Complete responses to this question are in the Appendix. Large numbers of respondents have positive things to say about RPU. A much smaller segment complained about cost or mentioned a specific complaint. bǒƒĬĻƩ ƚŅ LƭƭǒĻ tƚƭźƷźǝĻ ƚƩ ǤƦźĭğƌ wĻƭƦƚƓƭĻƭ wĻƭƦƚƓƭĻƭ bĻŭğƷźǝĻ 32 RPU does a great Positive --So much better than dealing with Xcel, MN Energy job and Peoples --Great service and communication --Well-run company 6 Rates are too high Negative --Expensive --Monopoly --Unhappy with communication and monthly fees hƷŷĻƩ --reduce --High cost of having to install external meters --6 people commented that the question is awkward because RPU is the only choice. This is common among utility customers being asked the NPS question. Customers who raised this issue gave NPS scores from 0 to 10, so their objection does not seem to affect their rating. --"RPU is a locally owned and operated utility, but other investor-owned utilities like Xcel offer more services for municipalities in the energy efficiency and building/transportation electrification space (consulting, program/event planning and coordination, etc.). Would like to see more rebates and 15 57 Energy Rebate Program: Moderate Participation and General Satisfaction The First, respondents were asked if they had participated. The responsesareshown in the chartbelow, indicating that about half oftheparticipants have participated in the rebate program. Participation in Commercial Rebate Programs 2025 Percent of Respondents 48% 52% YesNo Participants were asked to rate their experience with the program. Satisfaction Level With Energy Rebate Program Commercial Customers 2025 60% 55% 50% 40% 29% 30% 20% 12% 10% 4% 0%0%0% 0% CompletelyMostlySomewhatNeither Sat.SomewhatMostlyCompletely SatisfiedSatisfiedSatisfiedorDissatisfiedDissatisfiedDissatisfied Dissatisfied Percent of Respondents 16 58 Reasons For Not Participating intheEnergy Rebate Program The two largest reasons for non-participation were that respondents were not aware of the rebate programs or expected not to qualify. Both issues can be addressed through communication. Reasons for Not Participating in Commercial Energy Rebate Programs 2025 (Percent of Respondents) 60.0% 51.9% 46.2% 50.0% 40.0% 30.0% 20.0% 9.6% 7.7% 10.0% 1.9% 0.0% Unaware ofExpected Not toRebate Too SmallComplexNo Time to Apply ProgramQualifyApplication Process hƷŷĻƩƩĻğƭƚƓƭ ŭźǝĻƓΛЏΜʹ - 17 59 The Usage of the RPU Customer PortalUse Is Moderately Low Respondents were askedabouttheirfrequency of using the RPU Customer Portal for managing their account(s)and accessing information. Responses are shown in the chartbelowand seem to indicate portal use adoption is moderately low. Frequency of Using RPU Customer Portal 2025 45% 39% 40% 35% 30% 27% 25% 21% 20% 15% 8% 10% 3% 5% 2% 0% NeverRarelyMonthlyFew Times PerWeeklyDaily Year Percent of Respondents 18 5: Billing and Payment Experience Respondents were asked to rate aspects of their billing and payment experience, between 1 (Completely Dissatisfied) and 7 (Completely Satisfied). The charts below showtheaverage satisfaction indicators by issue. Ease of Understanding the bill rated highest, and both rate plans and options, and ease of use of payment portal, scored lowest (but still moderately high). Billing and Payment Experience Commercial Customers 2025 6.2 6.1 6.1 6 5.9 5.9 5.8 5.7 5.65.6 5.6 5.5 5.4 5.3 Ease of UnderstandingRate Plans and OptionsResolution of BillingEase of Use of Portal BillIssues Average Score (1-7) 19 61 Open-Ended Responses Below are the open-ended responses to the two narrative questions: IƚǞ ĭğƓ ǞĻ ĬĻƷƷĻƩ ƭǒƦƦƚƩƷ ǤƚǒƩ ĬǒƭźƓĻƭƭ ŭƚğƌ ğƓķ ƚƦĻƩğƷźƚƓƭ ΛƓĻǞ ƭĻƩǝźĭĻΉźƒƦƩƚǝĻƒĻƓƷƭΜͪ make everything cheaper... Offer your insurance for utility lines to larger rental properties. Do not have 10 min waits when calling customer service Offer a service like Eye on Water to monitor usage in real time. This would catch issues quickly We are NOT a commercial customer! we RENT a hangar at krst and use little to no electricity and are welcomed; thanks. 507-261-5548 if you need more info. I dislike storm sewer being separted from utility bills. I know process twice the amount of invoices as I get two bills for one property vs one. I also need to bill some of my tenants as they are not allowed to put this service in their name. I'm happy with our service and customer service. Remove all the fess - stormwater, backflow testing, etc. Lower the price. We are appreciative of all you do! Keep pricing as low as possible. You're good on everything. I do not like being charged for main run off. This backflow preventor program is a scam and I don't like it. Are there any opportunities, recommendations for reducing water and electric usage? Rebate options? Keep up the good work! Things are good. I have lost power three times within a 12-month span. Reliable energy is important. I should not have to buy a generator because of unreliable service. I think these surveys are a waste of time, money, energy. If there is a problem someone will let you know and what does a company (not just RPU) get out of getting 10 stars completely satisfied score? A big pat on the back?! Continue your move to sustainable energy sources. Prices for everything have gone up! Find a way to lower prices You can be as good as you are!!!!!!! 20 62 You're one of the best companies to work with every time! As a small business, family owned, competing against corporate implants, I have seen costs skyrocket and rental rates decline. $410 a month for stormwater, after spending many thousands on ponds, filtration basins and storm water is extreme compared to other communities. I will leave my name but only call me if something can be done to lower my stormwater charges. Get prices lower. Consider nuclear. I have propererties in Florida and Michigan. Much lower costs there. Provide better explanation of utility bills including the line items for clean air rider and power cost adjustment. The power cost adjustment isn't listed in the rates. It makes it hard to budget when these aren't listed and are such a significant cost. more/increased rebates/incentives for residential and commercial electrification, enhanced EV charging and EV rebates, EV infrastructure plan, more support/guidance for customers interested in installing EV chargers, RPU cost share for EV charging infrastructure upgrades. Keep up the meetings in person. Focus on low pricing. Lower prices. Help reduce electrical usage. I run multiple companies and like the ease of paying all through one web page. Once we figured it out ;) Continued open communication. I'm too new to add meaningful comment. Stop making and sending expensive flyers. Send black and white in our bills. Provide a list of services that you provide at no cost and a list of services you can provide at a cost. Provide guidelines of what customers should do in an emergency. Bring costs down. None I would like you to be more accommodated on reconnecting power during emergency situations. Let the Master Electrician on site make the call on whether it is safe to reconnect. Waiting for the electrical inspector to show up is too costly, especially if is in the middle of the night. The Inspector can check it over during regular working hours. I have a rental company. I would like to get my bills for the different properties at the same time. Make energy-saving equipment/lighting etc. more accessible cost wise to business who want to change over. Keep pricing in check. 21 63 waaaay too expensive. I miss having 13-month usage on the bill. I had to sign in to the portal the other day to check historical usage. Not a big deal but it took me an extra 5 minutes to see the information. Because it is a monopoly and there are no other choices! our residential service is outstanding! "commercial" not so much. So much better than dealing with Xcell, MN Energy, and even Peoples. RPU is the easiest utility that we work with easy to work with Never thought about it (rated 0) Good overall service. Good communication. Matt Davidson has helped us with information/data on our energy use and ideas on how to reduce our power use and what rebates are available. No issues here. No other choice. Very good for customer. The two complaints above (main run off and backflow preventer) keep me from rating you higher (gave an 8) Good service quality. Unhappy with connection and monthly fees. They always listen and answer my questions. Power outages even on nice weather days. Unacceptable to lose power 3 times in a 12-month period. Only local utility (gave a 7) Your dictatorship style of management. I can't do a $5000 upgrade to my property because RPU says I have to put YOUR meters on the outside, costing me an additional $10,000. If you want your meters on the outside, YOU pay the additonal cost. Only one unless people's cooperative is available (gave a 10) We have not had an issue with RPU. Everything is good. Prices are high for my situation. Never had any problems with service. Always had good service. Past performance is excellent! With everything you are helpful. Costs 22 64 I have always been satisfied with the customer service. Well run organization. RPU is a locally owned and operated utility, but other investor-owned utilities like Xcel offer more services for municipalities in the energy efficiency and building/transportation electrification space (consulting, program/event planning and coordination, etc.). Would like to see more rebates and services offered from RPU. Always good. High prices and not convenient rebate programs. Have received very good service. Only options (but gave RPU a 10) Complete satisfaction. RPU is awesome, except I have a problem with HCOC paying storm water charges! Because of the level of service and communication with service staff. not too many outages We have had no problems with our service. We have used rebates easily although it takes a bit for the credit to show up. Someone emailed and came to check up on our rebate claim and they were professional and courtous. Doing energy efficiency with this utility provider is by far easy to work with. Since we have lots of locations it is nice that there is a longer deadline for us to get our applications in. Really no big complaints. Costs compared to other locations You asked Very easy to work with. No other choice You are very easy to work with and helpful. The recommendation question has never come up for me, but I could say I have not had any significant issues with RPU. Only option. I don't feel this is a valid question to ask. Haven't had any problems (rated a 7) You take care of business. Because we all must support local people who also patronize our businesses. 23 65 Commercial Customers Wanting Call-Backs Separately, RPU is being provided with a list of those commercial customers who want to be contacted. The list shows their responses to the questionnaire, as well as their contact information. 2025 Commercial Print Survey 24 66 About Q Market Research Q Market Research is a recognized leader in providing cost-effective, quality-based research. Founded in 2001(as Quantitative Market Intelligence), we have honed research expertise for customers primarily in health care, financial services, professional services, and manufacturing. Our company is a full-service market researcher. Our company provides quantitative and qualitative market research to large and small public corporations, private companies and non- profit organizations. We are headquartered in Eagan, Minnesota. We conduct research across the United States. Depending on the client, we use internet, phone and mail surveys, and have access to a 6-person call center. Our data analysts use proprietary research techniques that help clients interpret data and identify key research findings. Confidentiality All information collected from the RPU commercial customer satisfaction surveys outlined in this report, including research data, customer responses, and any other related information, is the exclusive property of RPU. RPU has the sole discretion to share this information both internally and externally. QMR will maintain the confidentiality of all information gathered during this project, except when sharing it with RPU. At any time, RPU may request that QMR provide all electronic and paper files related to this research. END OF 2025 RPU COMMERCIAL CUSTOMER RESEARCH REPORT 25 67 wƚĭŷĻƭƷĻƩ tǒĬƌźĭ ƷźƌźƷźĻƭ Customer Satisfaction Survey 2025 Quarter 1 tƩĻƦğƩĻķ ŅƚƩʹ March 2024 tƩĻƦğƩĻķ ĬǤʹ www.qmarketresearch.com Page 1 68 wƚĭŷĻƭƷĻƩ tǒĬƌźĭ ƷźƌźƷźĻƭ /ǒƭƷƚƒĻƩ {ğƷźƭŅğĭƷźƚƓ {ǒƩǝĻǤ vǒğƩƷĻƩ ЊͲ ЋЉЋЎ Background Rochester Public Utilities (RPU) is seeking to obtain feedback from their residential customers to measure overall levels of satisfaction with services and programs provided, as well as capture needs and perceptions regarding communication. As part of this study, Rochester Public Utilities will focus on these key areas: 1. Overall satisfaction (likely to recommend) 2. Reliability of the power, water and other services provided by RPU 3. Ease of doing business with RPU 4. quality of service to customers 5. to be environmentally friendly 6. Overall value for the money with RPU 7. Net Promoter Score 8. Communications satisfaction and Gartner VES score 9. Community outreach efforts 10. Awareness of RPU payment options and payment method used 11. Customer demographics Survey Methodology A survey was mailed to 500 customers of RPU. This list of randomly selected customers was provided by RPU. The mailed survey provided a return envelope addressed to Q Market Research. The survey also contained a web link and QR code to allow respondents to complete the survey on a computer or mobile device. An email invite was also sent to 1000 RPU customers to complete the same survey from their computer or mobile device. No incentives were offered for participation. Page 2 69 Data Collection for Q1 2025 The mail survey was sent on February 3, and was closed on March 4, 2025, and 54 responses were received. The email survey was sent beginning on February 4, 2025, and was closed on March 4, 2025, and 71 responses were received. In total, 125 responses were received (mail and online), yielding an 8.3% response rate (statistically valid at a 95% confidence level to within +/- 9%). aĻƷŷƚķ {ĻƓƷ wĻƷǒƩƓĻķ wĻƭƦƚƓƭĻ wğƷĻ Email 1000 71 7.1% Mail 504 54 10.7% Total 1504 125 8.3% Page 3 6: Executive Summary: RPU Q1 2025 Key Finding 1: Overall customer satisfaction with RPU remains high. Overall customer satisfaction in Q1 2025 is 6.3 out of 7, which is high on an absolute basis. Satisfaction Score is 82.5% in Q1 2025, generally in line with historical numbers. RPU gets high scores for reliability, ease of doing business and quality of service. Value for the money continues to score lowest. Many of the customer comments were critical of high prices and fees. Customers asked for better communication from RPU as to why rates and fees are increasing. Score in Q1 was 52.2 . Q1 2025 remained in (a score above 50), following a 59.9 NPS in Q4 2024. Based on comments, high NPS scores were given because of reliable power, friendly customer service and timely outage restoration. customer service is 5.4, or in the range. This was the eighth quarter of a new line of questioning by RPU asking residents who communicated with RPU to rate the experience from 1 to 7. VES is explained in more detail in the report. The VES score of 5.4 (in a 1-7 scale) in Q1 2025 is in the range, down slightly from 5.8 in Q4 2024. Key Finding 4: Customers are aware of and satisfied with RPU community outreach efforts In a line of questions begun in Q2 2024, RPU wants to know if customers are aware of community gave RPU a 7.8 awareness was highest around efficiency rebates and budget billing/payment help. Details in the report. Key Finding 5: Customers are aware of RPU payment options, and most prefer Online and Direct Deposit options. In a line of questions begun this Q1 2024, RPU wants to know if customers are aware of payment options. 67% said they were (a high number and the same as Q4, 2024). Preferred payment options are online and direct deposit. Responses around this issue have remained consistent over four quarters. hƦĻƓΏĻƓķĻķ ĭƚƒƒĻƓƷƭ All verbatim responses are in the Appendix of this report, as is a copy of the Q1 2025 survey, itself. The open-ended comments at the end of this report provide excellent commentary on issues of concern. 5ĻƒƚŭƩğƦŷźĭƭ Demographics of all respondents are at the end of the report. /ǒƭƷƚƒĻƩƭ ǞğƓƷźƓŭ ğ ĭğƌƌΏĬğĭƉ ŅƚƩ ǝğƩźƚǒƭ ƩĻğƭƚƓƭ Separately, RPU will be sent a spreadsheet of customers who asked to be contacted, their contact information and their comments. Page 4 71 Detailed Findings: Q1 2025 Satisfaction with RPU Q1, 2025: Overall Satisfaction Remains High at 6.3 Out of 7 Respondents to the survey were asked to rate their satisfaction with Rochester Public Utilities (RPU) on six different factors. The factors were: 1. Overall satisfaction with RPU 2. Reliability of the power, water and other services provided by RPU 3. 4. Ease of doing business with RPU 5. 6. Overall value for their money with RPU The survey respondents were asked to rat atisfied issat Sconverted to a 7. The overall satisfaction scores relative to each of the six factors can be seen in the graph below. The overall satisfaction score for RPU in Q1 2025 is 6.3, which is virtually similar to Q4 2024 (6.4). Reliability, however, is the highest score at 6.6 out of a possible 7. Page 5 72 Q1 2025 Net Satisfaction Scores by Customer Segment: Mostly High In the table below, the satisfaction scores of each of the six factors were broken down by the and zip code. The cell that is highlighted in blue is the percent of positive 92.5%). The top row of the table has the overall score for each of the six factors (which is the same information as the graph on the previous page). The rating is from 1 (completely dissatisfied) to 7 (completely satisfied). All scores that are below 6.0 are highlighted in yellow. ŷĻ ĭŷğƩƷ ĬĻƌƚǞ źƓķźĭğƷĻƭʹ --Value for the money is the lowest satisfaction indicator and the lower rating cuts across almost all ages, genders and zip codes. This has remained consistent over time. --Efforts to being environmentally friendly scores are the second lowest category, with many --Overall satisfaction with RPU as a utility provider overall is high, at 6.3. --Respondents ages 35-49 indicate the lowest satisfaction scores by age group in terms of overall satisfaction. RPU: Q1, 2025 Page 6 73 Q1 2025 Satisfaction Trends Remain Consistently High The graph below shows the percentage of people who rated their overall satisfaction with RPU as Completely Mostly or Somewhat Satisfied. It also includes the average overall Satisfaction and Net Satisfaction Scores (NSS) from 2020 until now. The satisfaction score is 6.3 in Q1 2025 (this scale applies to the ĬƌǒĻ ƌźƓĻ) out of a 7-point scale, and the overall satisfaction score (ŭƩĻǤ ƌźƓĻ) is 92.5% in Q1 2025. All scores have been relatively stable since 2021, as shown in the chart below. was calculated. A Net Satisfaction Score (NSS) is calculated similarly to Net Promoter Score. The percent of those who respond as most satisfied are subtracted from the percent that respond as the least satisfied. Scores can range from -100 to 100 and a score of 50 or above is considered a very good score. Grey = Satisfaction (percent) Blue = Overall Satisfaction (number 0-7) Orange= Net Satisfaction Score (percent) Page 7 74 Open Ended Responses & Analysis Includes Dissatisfaction with High Rates The survey then asks, or provide any other suggestions or The types of responses for Q1 2025 are shown in the table below (Full verbatims are at the end of the report). Customers addressed a variety of topics, but high fees and charges were the biggest complaint. bǒƒĬĻƩ ƚŅ LƭƭǒĻ tƚƭźƷźǝĻ ƚƩ ǤƦźĭğƌ wĻƭƦƚƓƭĻƭ wĻƭƦƚƓƭĻƭ bĻŭğƷźǝĻ 27 High price, Negative --Bill too high customer fee, --Customer charges too high charges --Service usage fee too high For an apartment my size, the bill every month service, not more than the service, 5 Environmental Negative -- policy not clear environmental policy is -- --One customer suggested RPU build a nuclear power plant as the city expands. 4 Waste water and Negative --Costs are too high storm water charges 2 Plugged In Negative --Not worth the cost. Newsletter 2 Multiple outages Negative outages in the last year, including one that lasted multiple days during the last winter, where I had to get a motel as my 2 Energy usage Negative --Shaming report -- hƷŷĻƩ ĭƚƒƒĻƓƷƭΉźƭƭǒĻƭʹ --A complaint about RPU at Greens of Rochester complex --Billing methodology too complex --Give more communication about why rates are going up --RPU line workers are amazing --Estimated time for the end of a power outage is not close to reality --RPU is failing to plan adequately for the explosive growth of Rochester ŷĻ ƚƦĻƓΏĻƓķĻķ ƩĻƭƦƚƓƭĻƭ Ʒƚ Ʒŷźƭ ƨǒĻƭƷźƚƓ ƭŷƚǞƓ ğƷ ƷŷĻ ĻƓķ ƚŅ Ʒŷźƭ ƩĻƦƚƩƷ ğƩĻ źƓŅƚƩƒğƷźǝĻ ğƓķ ǞƚƩƷŷ ƩĻğķźƓŭ͵ Page 8 75 Net Promoter Scorefor from the Q4 2024 NPS of 59.1. RPU NPS Over Time 70 64.7 6060.2 59.1 55 54.2 52.4 52.2 51 50 49.2 47.6 47.2 46.6 46 45.4 43.7 42.4 42 41.4 41.3 41.0 40 40.1 39.5 38.5 30 20 10 Average U.S. Utility NPS Score is8 0 Analysis of NPS score The bt{ ŅƚƩ wt ŅƚƩ vЊ ЋЉЋЎ źƭ ЎЋ͵Ћ, continuing for yet another quarter a big rebound from Q3202438.5, good(0 to 49).The Q1 2025score is in the higher rangeofhistorical numbersfor RPU. Open-ended comments onthis question elicit many positive responses,butstill someconcernsaboutrates and fees. Nationally, public utilities have an average NPS score of 8, according to the QualtricsXM Institute. Comments about the NPS score are summarized on the next page and included in whole in the appendix. The bĻƷ ƦƩƚƒƚƷĻƩ ƭĭƚƩĻ(bt{) is a widely used market research metric that typically takes the form of a single survey question asking respondents to rate the likelihood that they would recommend a company, product, or a service to a friend or colleague. The NPS is typically interpreted and used as an indicator of customer loyalty.NPS has been widely adopted by Fortune 500 companies and other organizations.Proponents of the Net Promoter approach claim the score can be used to motivate an organization to become more focused on improving products and services. The Net Promoter Score was calculated using the results from the question:hƓ ğ ƭĭğƌĻ ƚŅ Љ ΛƓƚƷ ğƷ ğƌƌ ƌźƉĻƌǤΜ Ʒƚ ЊЉ ΛĻǣƷƩĻƒĻƌǤ ƌźƉĻƌǤΜͲ ŷƚǞ ƌźƉĻƌǤ źƭ źƷ ƷŷğƷ Ǥƚǒ Ǟƚǒƌķ ƩĻĭƚƒƒĻƓķ wƚĭŷĻƭƷĻƩ tǒĬƌźĭ ƷźƌźƷźĻƭƷƚ ğ ŅƩźĻƓķ ƚƩ ŅğƒźƌǤ ƒĻƒĬĻƩͪ. The Net Promoter Score (NPS) is calculated by taking the percent of those who respond that theyare the most satisfied (rated a 9 or 10), subtracted from the percent of those that are least satisfied (rated a 0 through6). Scores can range from -100.0 to 100.0. A score above 0 is considered good and a score of 50 or above is considered excellent. Page 9 76 Reasons for Giving the NPS Score Customers were asked why they rated RPU as they did for the NPS score in Q1 2025. Their answers are summarized in the chart below. Complete responses to this question are in the Appendix. While large numbers of respondents have positive things to say about RPU, a segment of respondents think that prices are too high. These thoughts have been consistent over many quarters. bǒƒĬĻƩ ƚŅ LƭƭǒĻ tƚƭźƷźǝĻ ƚƩ ǤƦźĭğƌ wĻƭƦƚƓƭĻƭ wĻƭƦƚƓƭĻƭ bĻŭğƷźǝĻ 44 RPU does a great Positive -- job -- -- --I rate RPU at the top because I have properties in other locations also, I compare them with other service providers like garbage, internet providers, Social Security, IRS, Dept of Revenue, DL office and MN govt -- -- 9 Rates are too high Negative --Expensive 6 Nothing to Neutral --Just a fact, but still give positive rating compare RPU to 6 Nothing to Negative --RPU is a monopoly. compare RPU to hƷŷĻƩ -- Page 10 77 Communicationwith RPU Percent Who Communicated Respondents to the survey were asked: ĭƚƒƒǒƓźĭğƷĻķǞźƷŷ wt źƓ ƷŷĻ ƦğƭƷ About 1 in 4respondents have communicated with RPUin Q1 2025.This is consistent withpast quarters. Have you communicated with RPU in the last 12 months? Q1, 2025 ЋАі АЌі YesNo Page 11 78 Satisfaction With Interaction With RPU Is In the GoodBelow Last Quarter If customers had interacted with RPU, they were asked to rate their satisfaction with the interaction on The VES is a measure of customer satisfaction while interacting with RPU, or the quality of the service experience. The score is measured as shown in the chart, below, with this graphic showing the range of VES scores. The VES for RPU (all ages) for Q1 2025 is 5.4, in the 4 2024 score of 5.8. Page 12 79 Community Outreach AssessmentRemains High In a new line of questioningbegunQ2, 2024,RPU asks customers of their awareness of RPU community outreach initiatives, and then to rate RPU between 0 and 10, where 10 represents high awareness. Residents are most aware of rebates for energy efficiency and help managing their bill with things like budget billing, and this is consistent across thefourquarters. in Q12025was7.8, on a scale of 0 to 10, where 10 is high. This is consistent with past scores. Resultsare shown below. Awareness of RPU Community Outreach Specific Initiatives Q2, Q3, Q4 2024, Q1 2025 100.0% 87.1% 85.5% 80.0% 65.1% 64.5% 57.8% 50.6% 60.0% 47.0% 46.2% 45.2% 40.9% 40.0% 20.0% 0.0% Efficiency RebatesBudgetSmart ThermostatEnergyLow-Income Billing/Payment HelpRebateWorkshops/AuditsWeatherization Q2, 2024Q3, 2024Q4, 2024Q1, 2025 Page 13 7: Satisfaction with RPU Community Outreach 0=Low 10=High Q2, Q3 and Q4, 2024, Q1 2025 33.7% 27.4% 10 37.7% 37.1% 20.2% 26.0% 9 14.3% 21.6% 13.5% 17.8% 8 15.6% 9.3% 9.6% 6.8% 7 6.5% 4.1% 2.9% 17.8% 6 9.1% 3.1% 9.6% 16.4% 5 3.9% 15.5% 2.9% 0.0% 4 3.9% 4.1% 1.0% 1.4% 3 1.3% 1.0% 1.0% 1.4% 2 0.0% 1.0% 0.0% 0.0% 1 1.3% 0.0% 5.8% 1.4% 0 6.5% 3.1% 0.0%5.0%10.0%15.0%20.0%25.0%30.0%35.0%40.0% % Resp. Q1 2025% Resp. Q4% Resp. Q3% Resp. Q2 Page 14 81 Awareness of RPU Payment OptionsHigh: Online and Direct Deposit Favored In a new line of questions begunQ1 2024, respondents were asked if they are aware of RPU payment options. Awareness remains high through Q1, 2025. Awareness of RPU Payment Options 71% АЉі 70% 70% 69% 69% ЏБі 68% 68% ЏАіЏАі 67% 67% 66% 66% Q2, 2024Q3, 2024Q4, 2024Q1, 2025 Yes Then respondents wereasked to identify which payment option they use. Online payment is the most popular, closely followed by direct deposit. Data is in the chartbelow. Page 15 82 Primary RPU Payment Option Used Q1, Q2, Q3, Q4 2024, Q1 2025 1% 0% Pays in Person 1% 0% 0% 2% 3% Uses Pay Stations or Drop Boxes 2% 1% 2% 4% 1% Uses Phone 3% 8% 7% Yes Q1 2025 11% Yes Q4 2024 14% Uses Mail 18% Yes Q3 2024 15% 13% Yes Q2 2024 Yes Q1 2024 40% 31% Uses Direct Deposit 39% 33% 34% 43% 51% Uses Online 37% 44% 45% 67% 67% Aware that RPU has many payment options 70% 68% 80% 0%10%20%30%40%50%60%70%80%90% Page 16 83 Demographics: Q1 2025 AgeQ1 2025 The graph below shows thepercentages of respondents to thesurveyby age.The distribution is fairly typical for RPU surveys, with a higher percentage of 65+ respondents than normal. GenderQ1 2025 The graph below shows the percentages of respondents to the survey by gender.Morerespondents were male than female. Respondent Genders Female ЍЌі Male ЎАі 0%10%20%30%40%50%60% Page 17 84 ZIP CodeQ1 2025 The graphshowsthe percentagesof respondents that live in the surroundingareas of RPU by ZIP Code. As in past surveys, 55901 has the largest share of respondents. Page 18 85 Appendix: Verbatim Responses, Q1 2025 {ƚ ƷŷğƷ wt ĭğƓ źƒƦƩƚǝĻ źƷƭ ƦƩƚķǒĭƷƭ ğƓķ ƭĻƩǝźĭĻƭͲ ƦƌĻğƭĻ ƷĻƌƌ ǒƭ ğĬƚǒƷ ğƓǤ ğƩĻğƭ źƓ Ǟŷźĭŷ Ǥƚǒ ğƩĻ ğĬƚǝĻ ƚƩ ƦƩƚǝźķĻ ğƓǤ ƚƷŷĻƩ ƭǒŭŭĻƭƷźƚƓƭ ƚƩ ŅĻĻķĬğĭƉ Ǥƚǒ ŷğǝĻ ŅƚƩ wt ͵ For an apartment my size, the bill every month seems to be astronomical. Maybe it's the actual building's insulation that doesn't keep the temperature controlled, either. But every month I'm astounded at how high it is, even though I only run it at night. Less power outages. Increase in EVs mean more power needed. RPU cannot keep up as is. Customer charges are extremely high! They are as a total higher than my actual consumption and sewer charge!! No comment. Service usage fee is ridiculously expensive. If you had a competitor, the monthly changes wouldn't be so high. Cost of utilities went up a lot this past summer. Lower your prices. I have had 4 multiple hour outages in the last year, including one that lasted multiple days during the winter where I had to get a motel as my house was too cold to inhabit. My only issue I have is the monthly charges I pay in addition to paying for my services. I live alone, and am very frugal with my usage, so I end up paying more for customer and service fees than I do for the actual service. My monthly bill is always over 50% fees. My water, sewer and surface water charges are far less than the service charge's associated with them. Service fees should be a percentage of the service, not more than the service itself. RPU board decision to automatically charge everyone for things already covered by our home insurance policy. Not telling customers when water lines will be flushed to avoid rusty water coming to our house. Waste water and storm water costs are double the amount for the water I use. I don't understand why this is so much money. Save money and trees, get rid of the Plugged In mailer. Buckle up and quit raising rates. Rochester is running us out of town with rates and taxes. Being senior citizens, we have noticed higher utility bills. Sometimes we have to make the tough decision of utilities or meds. We have used your tips on saving money and most of the time they have helped. Lower prices. Stop branching out the city of Rochester. The more it sprawls, the more my utilities seem to go up. I really hate the energy comparison reports that are sent to me monthly, I have asked to cancel those, and they told me they couldn't. I will use what power I need and pay for to maintain my household, I don't need to be told how I can "do better". Here's a thought, instead of wasting ink, paper, fuel, and many other resources it takes to send me that report, STOP SENDING IT. There's a 100% conservation savings. Did RPU come up with a solution with the shut off valve in the driveway at 4711 Wintergreen Lane at the Greens of Rochester. Service persons need to respect our work being done at the Greens, if the road is close for maintenance, you do not move the barrier and drive on the street any way because you work for RPU Page 19 86 Lower the price of electricity in Rochester. My budget billing went from $190 to $245 per month and I have NOT increased my electric use at all. Nothing has changed then I got this: your bill is going to $245 per month, which is outrageous. In any organization there is always room for improvement. Are there ways that the wastewater fees can be reduced! More education materials on how consumers can RPU's monthly cost in all areas. The consumers are at a disadvantage as we need electricity and water!!! None Keep the costs down. Since I pay for electrical power at another home in rural Minnesota which is lower, it might be possible for RPU to be more competitive in pricing. No utility can be perfect all of the time. None I think the billing statements and the billing methodology are too complex, and somewhat frustrating. We are told to conserve electricity and water, but even if I used ZERO electricity and ZERO water, my total bill would still only be reduced by ~50%. That's because I'd still have to pay the three different "Customer Charges" for electricity/water/sewer, plus other misc. fees. I think you should eliminate all those "Customer Charges" and fold that expense back into the actual rate we pay for electricity/water/sewer. Another point, during the summer, if I use water to water my garden plants, etc., I still get a corresponding charge for the wastewater. During the summer months, I think the wastewater charge should be prorated to my average usage during the winter months. NA No suggestions I moved out of Rochester in October 1994. My service was transferred to the new owner shortly after that date. New owner...Dee and Don Picket. No interaction with anyone so I don't know if customer service is good or bad. Prices have gone up and communicating the "why" behind this more clearly would help customers understand the context and limit the immediate negative reaction to these expense increases. I don't like the woke policies that increased our prices. No problems w RPU Keep prices down The only area where I was less than completely satisfied was the rising costs. I'm unsure what is driving it: demand, cost of energy production, regulations/taxes/fees, etc. My motto has always been fair price for goods provided. You don't really talk about the environment. I see hundreds of acres of solar panels, and nothing on the news. Forget all the environment stuff. I feel like the services are very expensive, but I have not looked at other providers. The costs keep going up. Not aware of environmental initiatives by RPU. RPU is expensive. Value for the money: rates are climbing these last few months. Getting out of control. Utility provider overall: rates need to come down. Water waste fee is ridiculous. I know little about the utility market or company's efforts to be environmentally friendly. Rates are very high. Retired people have limited resources. Please consider this when raising rates. Pricing seems like it continually is increasing. Page 20 87 I like RPU, love their services and their customer services! The RPU line workers are amazing! They are hard workers and get the job done no matter what the weathers like! #1 multiple friends from across Rochester and I are tired of getting notices that we are the largest consumer of electricity in our neighborhood. Do you perhaps not realize that those of us with larger families use more electricity than homeowners without children or larger families? 2. We are customers of you- a regulated monopoly. Don't forget that you need to earn our business, or we will ask the Regulators to review your harassment of homeowners. 3. If we need more electricity in Southern Mn just build a nuclear power plant and expand other renewables. Your failure to adequately plan for current electricity needs is a failure of leadership. Will we expect any accountability from your leadership about this failure? Should we ask the US DOJ to investigate you? 4. Celebrate growth in our community. It is Your job security. When there is a power outage the estimated time to get back online is not even close to the reality I don't know how to compare "value for the money" because I don't know what other Public Utilities charge. I don't know enough about RPU's environmental policies to comment on this either. I'm not sure how you are investing in renewable energy. Value for the money...nothing to compare it to. We find your magazine useless and feel it's a waste of money that could be used elsewhere. My daughter and boyfriend contacted RPU about payment arrangements for a past due amount and lack of employment. Nobody returned their call. Always look for lower utility bills. When I signed up for your service, it took me months to get it done. Way too slow. Stop showing up without an appointment and asking to xxxxx??? building. ‘ŷǤ ķźķ Ǥƚǒ ŭźǝĻ wt ƷŷĻ bt{ ƭĭƚƩĻ Ǥƚǒ ķźķͪ The service RPU provides is great; It's just the prices on the bill every month are too high. Satisfied. Less power outages. They have increased in my area 150% over the last 3-4 years. As a customer, I should be reimbursed for every power outage!! Haven't had any problem. I have no experience with other providers. We're satisfied with the service. Have had no issues and was treated well the last time I went into the office. Concerned about reliability and responsiveness. When we moved from Elton Hills to Century Hills, we think we lose power more often. 40 years with no problems Good service. High prices. Monopoly over the utilities in a city of this size. Mostly happy with RPU, most drawbacks are out of your control. Because the question itself is insulting. We have no other choice, so what difference does it make what I would recommend? We are all under your thumb. It is a stupid question! Like asking a Russian if they would vote for Putin! There is no other utility. It's all we got Page 21 88 Prices are too high. The city is getting too big and should be split. Why would I recommend you when you are the only one in town? This is self-serving question that will be used in a biased description of RPU. Excellent Service Electric is WAY TO EXPENSIVE. We have no choice!!!!! Gives good service . Nobody is perfect. Response to outages is timely and easy to reach on the app. What choices do we have? Overall, we are very satisfied with the service we receive from your company. Prices could always be lower, or to not "tax" the fees being imposed on us. RPU provides very reliable services! Very good service Dependable service , great customer service during an electric outage, rates seem to be fair for customer they charge too high on services Services have always been dependable. I have had no issues with RPU. We have no complaints I moved out of the Rochester service area in October of 1994. I would think your records would have been updated by now!!! no options to compete with RPU Seldom have an outage or any issues Reliable, with easy online tools and innovative programs such as off-peak energy use programs and solar power energy buyback options. They would rise to a 9 or 10 with more clear communication about rate increases and costs. I don't like the woke policies that increased our prices. We have been impressed with consistent power to our home. No outages! Rates are reasonable. Service is reliable. Solid power availability. I have had no issues in the 20 years I have lived in Rochester. Good service- no problems! Overall, I am satisfied with your service. Just. It happy with the price increase lately. RPU is a good utility organization. I like having water and electricity come through the same utility company and the same billing. The crew that responds to burned out streetlights is prompt, too. The times I've visited the office everyone has been friendly and helpful. Good service You can always do better. No complaints. I like RPU. Only game in town. No choices. Nothing to compare it to. Cost. When I travel to my home state, we sometimes talk about our utilities and compare what we get for the help and price. (Gave RPU a recommendation rating of 9) Never had a problem. Because of high rates. Page 22 89 Service is good. Pricing always seems high. Excellent job restoring power when an auto accident took out a transformer on Elton Hills Drive in June 2023. I give you 10 for having amazing services. Also, how you care about your customers, as well. They are a great company! See previous comments. I am growing concerned that your leadership is not up to the task of providing our community with enough electricity for the growth we are experiencing. As you stated - only provider. I am satisfied with RPU. I rate RPU at the top because I have properties in other locations also, I compare them with other service providers like garbage, internet providers, Social Security, IRS, Dept of Revenue, DL office and MN govt -- RPU people seem to genuinely care. No problems with you guys. You're the only local utility I'm aware of (gave a 10) You're doing the best you can (gave a 10). No complaints. Reliable service. Always steady service. It is the only company, so nothing to compare it to (gave a 4) RPU has good pricing, and I appreciate that we can pay through an app. (scored 8) Customers who want to be contacted by RPU NOTE: In a separate spreadsheet, RPU was given the names and contact information of customers who asked to be contacted by RPU, and the comments they gave in the survey. Page 23 8: Survey Q1 2025 9b5 hC w9thw Page 24 91 92 93 94 95 Rochester Public Utility Board Policy POLICY 18:WATER AND ELECTRIC METERING POLICYOBJECTIVE: approved proxy volumes while encouraging conservation and efficient use of the commodity in compliance with RPU retail rate tariffs. POLICYSTATEMENT: 1.All residential, commercial and industrial units shall willbe metered as defined in the Rochester handbook publications. 2.All water and electric metering services shall be in compliance with industry established water and electric codes, as are applicable, including municipal rules, regulations, laws and ordinances. 3.RPU will strive to economically leverage best available technologies to meet current and future metering solutions. RPis automatedmetering. If customer preference is to opt- out, a fee will be recovered from the customer to address incremental costs incurred by RPU. City of Rochester Charter; Utility Board; Section 15.05 \[Board RELEVANT LEGAL AUTHORITY: Powers\] Public Utilities Regulatory Policies Act; Section 113 (B) (1) Dec. 13, 1983 RPU Board Resolution Adopting the PURPA Master Metering Standard State of Minnesota, Minnesota Rule 326B.106, Subd. 12 EFFECTIVE DATE OF POLICY:April 10, 1984 DATE OF POLICY REVIEW:Month, Day,Year POLICY APPROVAL: Board PresidentDate 96 Rochester Public Utility Board Policy POLICY 18:WATER AND ELECTRIC METERING POLICYOBJECTIVE: approved proxy volumes while encouraging conservation and efficient use of the commodity in compliance with RPU retail rate tariffs. POLICYSTATEMENT: 1.All residential, commercial and industrial units shall be metered as defined in the Rochester Public handbook publications. 2.All water and electric metering services shall be in compliance with industry established water and electric codes, as are applicable, including municipal rules, regulations, laws and ordinances. 3.RPU will strive to economically leverage best available technologies to meet current and future metering solutions. City of Rochester Charter; Utility Board; Section15.05 \[Board RELEVANT LEGAL AUTHORITY: Powers\] Public Utilities Regulatory Policies Act; Section 113 (B) (1) Dec. 13, 1983 RPU Board Resolution Adopting the PURPA Master Metering Standard State of Minnesota, Minnesota Rule 326B.106, Subd. 12 EFFECTIVE DATE OF POLICY:April 10, 1984 DATE OF POLICY REVIEW:Month, Day,Year POLICY APPROVAL: Board PresidentDate 97 98 9: :1 249 DIVISION REPORTS AND METRICS APRIL 2025 APRIL 2025 DIVISION REPORTS AND METRICS SAFETY WATERDIVISION POWER DELIVERY POWER RESOURCES CUSTOMER RELATIONS INFORMATION TECHNOLOGY CORPORATE SERVICES 24: DIVISION REPORTS AND METRICS APRIL 2025 251 DIVISION REPORTS AND METRICS APRIL 2025 252 DIVISION REPORTS AND METRICS APRIL 2025 1. Water Outage Calculations for the month and year to date(March 2025 Data) Performed 767 Gopher State water utility locates during the month for a total of 1,218 for the year. There are currently 89 Water ERTs that were unable to be read in the system. We are experiencing approximately 16-17 new non-reads per week. The stockroom has the following products available: Repaired water distribution system failures or maintenance at the following locations during the month: 253 DIVISION REPORTS AND METRICS APRIL2025 Actual vs. Projected Pumpage: 2025 Core Services -Water Maintenance & Construction 700,000,000 650,000,000 600,000,000 550,000,000 500,000,000 450,000,000 400,000,000 350,000,000 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 - JanFebMarAprMayJunJulAugSepOctNovDec Month Actual PumpageProjected Pumpage Actual vs. Projected Power Cost for Wells: 2025 Core Services -Water Maintenance & Construction $170,000 $160,000 $150,000 $140,000 $130,000 $120,000 $110,000 $100,000 $90,000 $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 JanFebMarAprMayJunJulAugSepOctNovDec Month Actual PowerProjected Power 254 DIVISION REPORTS AND METRICS APRIL2025 2025 Valve Operations Program Core Services -Water Maintenance & Construction 6,000 5,500 5,000 4,500 4,000 2025 Goal = 3,500 3,500 3,000 2,500 2,000 1,500 1,000 500 0 JanFebMarAprMayJunJulAugSepOctNovDec Month 2025202220232024Goal 2025 Hydrant Operations Program Core Services -Water Maintenance & Construction 5,500 5,000 4,500 4,000 2025 Goal = 3,650 3,500 3,000 2,500 2,000 1,500 1,000 500 0 JanFebMarAprMayJunJulAugSepOctNovDec Month 2025202220232024Goal 255 DIVISION REPORTS AND METRICS APRIL 2025 1. Electric Outage Calculations for the month and year to date (March 2025 Data) 2. Electric Utility Operations T&D, Engineering, System Ops, GIS, Tech Services: Number of Outages by Select Cause Code 60 50 48 40 30 22 20 11 9 10 4 2 0 Squirrel OutagesVegetation Outages 256 DIVISION REPORTS AND METRICS APRIL 2025 March 2025 257 DIVISION REPORTS AND METRICS APRIL2025 2025 RPU Renewables Production 3,200 3,000 2,800 2,600 Annual 2,400 Production to 2,200 date: 2,000 2835 MWh 1,800 1,600 1,400 Enough energy to power: 1,200 315 homes 1,000 800 600 400 200 0 HydroValleyhigh SolarWES SolarService Center SolarOWEF (RPU Purchase) 258 DIVISION REPORTS AND METRICS APRIL 2025 259 DIVISION REPORTS AND METRICS APRIL 2025 1. On March 20, Marketing & Energy Services participated in a webinar hosted by the Minnesota Department of Commerce to kick off a new statewide energy efficiency potential study. The study aims to identify opportunities for energy savings, fuel-switching, and load management across Minnesota. The study's findings will guide utilities in developing data-driven Energy Conservation and Optimization (ECO) plans targeting the most impactful sectors and programs. 2. Marketing & Energy Services attended Rochester's Electrify Everything MN class, Home Electrification Trends and Opportunities for Contractors on April 14. The session provided contractors with trends and resources for leveraging to install more efficient equipment, new tools to enhance customer journeys, help integrate electrification into businesses, and help with opportunities to gain leads and demonstrate expertise through networking. 3. 4. On April 18, Marketing & Energy Services participated in the second stakeholder meeting reviewing existing load shape data and its alignment with efficient fuel switching (EFS) measures in the Minnesota Technical Reference Manual (TRM), identifying data gaps, and gathering stakeholder input. 2. The Commercial Team is actively working with key accounts to ensure they understand and are prepared for the new Minnesota benchmarking requirements. Outreach efforts include direct communication through emails, phone calls, and meetings, as well as the distribution of clear guidance on compliance steps, deadlines, and available support. 3. The Commercial Team coordinated an Olmsted County Waste-to-Energy Department visit at RPU to strengthen relationships and improve communication between the two organizations. During the visit, the team toured our System Operations control room. RPU's 23rd Annual Arbor Celebration is scheduled for Friday, April 25, and will host approximately 2,500 students, teachers, and chaperones from grades 3 through 5. The event will feature open-air booths and a variety of family-friendly activities, such as bean bag toss, tree cookie stacking, apple toss, tree medallion necklaces, a chainsaw carver, and more. In keeping with tradition, event partners will also be offering free trees to the public. 1. We launched an employee newsletter on April 1 to keep staff informed, engaged, and connected with key updates and events at RPU. 2. The Communications Team attended a city-sponsored training on how to handle the media on April 9. 25: DIVISION REPORTS AND METRICS APRIL 2025 261 DIVISION REPORTS AND METRICS APRIL 2025 262 Percent Percent YTD GM YTD GM YTD GM Percent 268 269 26: 04/17/25 1 ROCHESTER PUBLIC UTILITIES 2 STATEMENT OF CASH FLOWS 3 ELECTRIC UTILITY 4 FOR 5 MARCH, 2025 6 YEAR-TO-DATE 7 Actual YTDLast Yr Actual YTD 8 CASH FLOWS FROM OPERATING ACTIVITIES 9 Cash Received From Customers 45,787,386 41,735,397 10 Cash Received From Wholesale & Steam Customer 2,436,418 1,908,244 11 Cash Paid for: 12 Purchased Power (23,643,502) (23,351,463) 13 Operations and Maintenance (7,741,794) (8,054,157) 14 Fuel (1,160,266) (912,072) 15 Payment in Lieu of Taxes (2,752,834) (2,365,630) 16 Net Cash Provided by(Used in) Utility 17 Operating Activities 12,925,408 8,960,319 18 Sewer, Storm Water, Sales Tax & MN Water Fee Collections 19 Receipts from Customers 11,997,571 11,611,605 20 Remittances to Government Agencies (12,048,009) (11,489,375) 21 Net Cash Provided by(Used in) Non-Utility 22 Operating Activities (50,438) 122,230 23NET CASH PROVIDED BY(USED IN) 24OPERATING ACTIVITIES 12,874,970 9,082,549 25 CASH FLOWS FROM CAPITAL & RELATED 26 FINANCING ACTIVITIES 27 Additions to Utility Plant & Other Assets (6,007,723) (7,592,769) 28 Payments related to Service Territory Acquisition (45,762) (41,918) 29 Payment on Long-Term Debt - - 30 Net Bond/Loan Receipts - - 31 Cash Paid for Interest & Commissions - (1,644) 32 NET CASH PROVIDED BY(USED IN) 33CAPITAL & RELATED ACTIVITIES (6,053,485) (7,636,331) 34 CASH FLOWS FROM INVESTING ACTIVITIES 35 Interest Earnings on Investments (62,318) 246,819 36 Construction Fund (Deposits)Draws - - 37 Bond Reserve Account (3,421,928) (3,428,046) 38Escrow/Trust Account Activity - - 39 NET CASH PROVIDED BY(USED IN) 40INVESTING ACTIVITIES (3,484,246) (3,181,227) 41Net Increase(Decrease) in Cash & Investments 3,337,239 (1,735,009) 42Cash & Investments, Beginning of Period 130,383,324 117,149,059 43CASH & INVESTMENTS, END OF PERIOD 133,720,563 115,414,050 44Externally Restricted Funds 17,029,054 17,153,534 45Grand Total 150,749,617 132,567,584 271 272 273 274 275 276 277 278 279 27: 04/17/25 1 ROCHESTER PUBLIC UTILITIES 2 STATEMENT OF CASH FLOWS 3 WATER UTILITY 4 FOR 5 MARCH, 2025 6 YEAR-TO-DATE 7 Actual YTDLast Yr Actual YTD 8 CASH FLOWS FROM OPERATING ACTIVITIES 9 Cash Received From Customers 4,755,748 4,509,700 10 Cash Paid for: 11 Operations and Maintenance (2,777,745) (2,078,931) 12 Payment in Lieu of Taxes (99,049) (92,864) 13 Net Cash Provided by(Used in) Utility 14 Operating Activities 1,878,954 2,337,905 15 Sales Tax & MN Water Fee Collections 16 Receipts from Customers 154,817 150,356 17 Remittances to Government Agencies (154,355) (150,131) 18 Net Cash Provided by(Used in) Non-Utility 19 Operating Activities 462 225 20NET CASH PROVIDED BY(USED IN) 21OPERATING ACTIVITIES 1,879,416 2,338,130 22 CASH FLOWS FROM CAPITAL & RELATED 23 FINANCING ACTIVITIES 24 Additions to Utility Plant & Other Assets (2,267,321) (1,659,541) 25 Payment on Long-Term Debt - - 26 Net Loan Receipts - - 27 Cash Paid for Interest & Commissions - - 28 NET CASH PROVIDED BY(USED IN) 29 CAPITAL & RELATED ACTIVITIES (2,267,321) (1,659,541) 30 CASH FLOWS FROM INVESTING ACTIVITIES 31 Interest Earnings on Investments 233,594 201,486 32 NET CASH PROVIDED BY(USED IN) 33 INVESTING ACTIVITIES 233,594 201,486 34Net Increase(Decrease) in Cash & Investments (154,311) 880,075 35Cash & Investments, Beginning of Period 15,518,760 14,773,753 36CASH & INVESTMENTS, END OF PERIOD 15,364,449 15,653,828 281 282 283 284 285 286 TO: Bill Bullock, Director of Power Resources FROM: Tina Livingston, Senior Financial Analyst SUBJECT: LOAD FORECAST SUMMARY FOR 2025 SYSTEM ENERGYPEAK SYSTEM DATA MONTHACTUALFORECAST% DIFFACTUALFORECAST% DIFF MWHMWHMWMW JAN102,113104,514-2.3%174.2177.1-1.7% FEB90,75791,061-0.3%170.6160.26.5% MAR89,56091,482-2.1%149.8150.1-0.2% APR146.8 MAY205.9 JUN257.7 JUL284.2 AUG253.4 SEP252.6 OCT165.0 NOV146.6 DEC169.4 YTD282,430287,057-1.6 HISTORICAL SYSTEM PEAK 294.8 MW 08/23/2023 % DIFF = (ACTUAL / FORECAST X 100) - 100 MWH = MEGAWATT HOUR = 1000 KILOWATT HOURS MW = MEGAWATT = 1000 KILOWATTS 287 2025 YTD System Requirements Energy Required for the Month (MWH 130,000 120,000 110,000 100,000 90,000 80,000 70,000 60,000 JANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDEC 2025 ACTUAL2025 FORECAST2024 ACTUAL Peak Demand for the Month (MW) 350 300 250 200 150 100 50 0 JANFEBMARAPRMAYJUNJULAUGSEPOCTNOVDEC 2025 ACTUAL2025 FORECAST2024 ACTUAL 288