Minnesota · municipal utility
Rochester Public Utilities (RPU): power factor rules
Customers of 25 kW and up have billing demand scaled up when the average power factor is below 0.95.
Power-factor rule confirmed Tariffs checked 2026-10-03
Smaller customers
General Service (under 25 kW) has no power-factor adjustment.
The power-factor rule
Medium General Service Secondary (and time-of-use, High Efficiency); Large General Service Primary (and time-of-use); Large Industrial; Interruptible
Applies to: Demand of at least 25 kW in three billing periods within 12 months.
How it works: If the average power factor for the billing period (from kWh and lagging kVARh) is below 0.95, billing demand is multiplied by 0.95 and divided by that power factor. Customers must also avoid leading power factor.
Formula: When the average billing-period PF is below 0.95: billing demand = measured demand × 0.95 / average PF. No adjustment at or above 0.95.
Example: Illustration: 300 kW measured at a 0.85 average power factor gives 300 × 0.95 / 0.85 ≈ 335 kW billing demand. Illustration, not a bill estimate; billed demand, measurement intervals, minimums and credits determine the actual adjustment.
"If the customer's average power factor is less than 0.95 for the billing period, the billing demand will be determined by multiplying the measured demand by 0.95 and dividing the results by the customer's average power factor."
Source: Rochester Public Utilities 2026–2027 Rate Schedule, Power Factor Adjustment in each schedule (MGS Secondary p. 27). Effective January 1, 2026. Checked 2026-10-03; review by 2027-10-03.
What to do next
- Size the kVAR for your load.
- Send us a bill and we'll tell you what you're paying and what correction is worth.
Cities we serve in Rochester Public Utilities (RPU) territory
Tariffs change. This summary reflects the documents cited above as checked on 2026-10-03; your utility's current rate schedule and your bill govern what you pay.