By Mani Souphom – R & J Broadcasting, Inc. | Tuesday, March 3, 2026

ROSEAU, Minn. – Local electric rates could increase nearly six percent beginning April 1 as wholesale power costs rise through the Minnesota Municipal Power Agency and its power supplier, Minnkota Power Cooperative.

City officials say the proposed rate would move from 11.9 cents per kilowatt hour to approximately 12.66 cents, a 5.94% increase across energy rates. The adjustment is intended to align local revenues with expected wholesale power costs and prevent the city’s electric fund from falling behind.

Minnkota, which supplies power to member utilities, has indicated it expects larger increases going forward. Officials say the cooperative’s three power plants are about 40 years old, and recent outages contributed to significant financial losses. In response, Minnkota is working to rebuild reserves and meet financial policy requirements, including profit margin covenants presented to borrowers.

Power purchases account for roughly $3.3 million of the city’s electric department operating costs, making them the largest expense category.

City leaders say the rate adjustment is forward-looking and tied to projected costs rather than past deficits.

Community Development Coordinator Todd Peterson says residents should expect modest short-term impacts as the city works to maintain financial stability.

Officials say wholesale market pressures and aging infrastructure mean additional adjustments may be necessary in the coming years, though no further increases have been formally approved.