Rochester, Minn., utility offers lower rates to energy-efficient customers

Post-Bulletin, Rochester, Minn. --Sep. 1

Sep. 1--Here's a signal to businesses from Rochester Public Utilities: "Buy energy-efficient heating systems; save dollars along with power."

RPU sent a clear price signal Tuesday by offering lower electric rates to commercial customers willing to install air-handling systems that draw on ground or air temperatures rather than standard furnaces or air conditioners.

The utility's directors approved a 19 percent cut in RPU's electric-use rate from October through May for two categories of commercial customers. They cover small and medium-sized businesses, as well as some institutions, such as churches.

The rates for electric use could go into effect on Oct. 1. The final OK will come from the Rochester City Council, probably this month.

Few RPU customers currently qualify. They must have bought HVAC systems that rely on geo-thermal or air-source heat pumps. Some able to claim the rate are Cinemagic Theatres, Palmer-Soderberg Inc.'s new headquarters and the Olmsted County History Center.

But RPU is nudging businesses toward high-efficiency systems for a couple of reasons, general manager Larry Koshire said. Those technologies can drastically lower electric use for heating and cooling. That helps the entire RPU system during times of both heavy drains and low use.

Customers may find two benefits, although installing the geothermal or air heat pump systems generally costs more than conventional systems. Once they are in, however, the heating and cooling bills can be drastically reduced, RPU has said.

Then, under the new rate, customers also will be paying less for the electricity they do use.

RPU already has a similar rate break in place for residential customers using high-efficiency systems.

 

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