Rochester, MN (KROC-AM News) - The Rochester Public Utilities Board has approved new electric and water utility budgets for next year that include rate increases.

The electric budget incorporates a larger than previously planned rate increase to help cover higher debt service payments for a new natural gas fueled West Side Energy Station, a potential expansion of the RPU Service Center and costs associated with the completion of the CapX2020 project. It calls for a 3.7-percent hike next year that would add a little over $3 dollars to the average residential electric bill. The rate plan approved last year called for a 1.7-percent increase.

The water budget stuck with the planned 6-percent rate hike that was part of a three year rate increase schedule that was approved by the RPU Board last year.

Both rate increases will be presented to the Rochester City Council for approval next month.