Fairmont has generated its own electricity and pumped its own drinking water since 1902. Today the municipal utility serves about 11,000 residential and commercial customers with electric, water, wastewater, and stormwater service.
Your utility bill is the last stop on a real trip across town. Follow the water: it starts in the lake the city drinks from, passes through a plant Fairmont has owned since 1902, rides the mains under every street, spins your meter, and lands as line items you can check yourself.
1The Source
Budd Lake
The city's drinking water is supplied by Budd Lake, one of the five lakes chained through town. Fairmont pumps from the lake, treats every gallon, and delivers it to roughly 3,941 residential water customers. The chain is public water in every sense: its health is watched by the Lakes Management Committee, in open meetings.
Sisseton, one channel down the chain from Budd. Photo: City of Fairmont
2The Plant
Treated and generated here since 1902
On April 5, 1902, the City of Fairmont bought the local power plant from the St. John brothers for $2,800, and the utility has run on public ownership ever since. In 2013 the city completed a $31 million water treatment plant that can soften, filter, and disinfect 5.4 million gallons a day. The whole story is in the utility's own book: Utility History: 1902 – 2015 (PDF).
The water treatment plant came online in 2013. Photo: City of Fairmont
3The Mains
83 miles of water main, 137 miles of line
Between the plant and your property sit 83 miles of water mains and 137 miles of electric lines, maintained by city crews. Planting a tree or setting a fence post? Call Gopher State One Call at 1-800-252-1166 before you dig, every time. Moving in or out? Service starts and stops through the utility office.
The meter is where the journey becomes your bill: electricity is measured by the kilowatt hour, water by the gallon and billed per 1,000. Skip the paper and the stamp: sign up for eBilling on the Pay a Bill page, or have your payment drawn automatically each month.
The meter measures; the schedule below prices. Photo: City of Fairmont
5Your Bill
Estimate it line by line
This estimator prices your usage against the city's published 2026 rate schedule, one schedule line at a time, exactly as adopted. It is an estimate, not a bill.
Figures from the city's 2026 rate schedule: 2026 Utility Rate Schedule (PDF). Your actual bill may include items this estimate does not.
Some schedule items are not estimated here, including Monthly Energy Cost Adjustment (ECA). See the full schedule.
On the ECA, the schedule's own note: ECA will factor in: recovery of SMMA's ECA; other adjustments as approved by the Fairmont PUC.
Adopted rates effective January 1, 2026, for every class of service. The estimator above uses these same lines; the schedule itself is the source of record: 2026 Utility Rate Schedule (PDF).
Electric – Residential Service
Line Item
Rate
Notes
Customer Charge
$7.50 per month
Fairmont Public Utilities Electric Rates – 2026
Energy Charge
$.1226 per kWh
Minimum Bill
$7.50 per month
Electric – Residential Heat
Line Item
Rate
Notes
Customer Charge
$7.50 per month
Energy Charge – First 800 kWh per month
$.1220 per kWh
Energy Charge – Over 800 kWh per month
$.1160 per kWh
Minimum Bill
$7.50 per month
Electric – Commercial Service
Line Item
Rate
Notes
Customer Charge
$16.00 per month
Availability: customer with loads of less than 50 kW
Energy Charge
$.1214 per kWh
Minimum Bill
$16.00 per month
Electric – General Service
Line Item
Rate
Notes
Demand Charge
$14.53 per kW
Availability: customer with loads of greater than 50 kW. Billing demand shall be the greater of the measured demand for the billing period or 75% of the maximum measured demand for the most current June–September months.
Energy Charge
$.0782 per kWh
Electric – Industrial Service
Line Item
Rate
Notes
Demand Charge
$14.53 per kW
Availability: customer with loads of greater than 250 kW. Billing demand shall be the greater of the measured demand for the billing period or 75% of the maximum measured demand for the most current June–September months.
Energy Charge
$.0782 per kWh
Power Factor Adjustment
.95 power factor threshold
If the customer's average power factor is less than .95, the billing demand shall be adjusted to bring the power factor to .95.
Primary Voltage Discount
2.0 percent discount on demand & energy charges
Electric – All Electric Rate
Line Item
Rate
Notes
Demand Charge
$14.53 per kW
Availability: customer with electric heat loads greater than 35 kW
Energy Charge
$.0782 per kWh
Electric – Rural Service
Line Item
Rate
Notes
Customer Charge
$10.50 per month
Energy Charge
$.1258 per kWh
Minimum Bill
$10.50 per month
Electric – Seasonal Electric Heat Rate
Line Item
Rate
Notes
Energy Charge – Winter Heating Season (Sept – April)
$.0897 per kWh
Minimum Bill (Heating Season only)
$16.00 per month
Electric – Seasonal Commercial Service
Line Item
Rate
Notes
Customer Charge
$106.00 per month
Energy Charge – Summer Season (June–Sept)
$.120 per kWh
Energy Charge – Winter Season (Oct – May)
$.108 per kWh
Electric – Monthly Energy Cost Adjustment (ECA)
Line Item
Rate
Notes
2011, 2012, 2013
$0.024814 per kWh
ECA is applied to the electrical usage each month during the calendar year.
2014
$0.026809 per kWh
2015
$0.000000 per kWh
2016
$0.002931 per kWh
2017, 2018, 2019, 2020, 2021, 2022
$0.006675 per kWh
2023
$0.013685 per kWh
*2024, 2025, 2026
$.0000000 per kWh
*ECA will factor in: recovery of SMMA's ECA; other adjustments as approved by the Fairmont PUC.
Water – Residential Rate
Line Item
Rate
Notes
First 15,000 gal per month
$10.70 per 1000 gallons
Effective January 1, 2026
Excess gal per month
$11.83 per 1000 gallons
Minimum Charge per month
$16.59 per month
In addition to customer charge
Monthly Customer Charge
$32.96 per month
Water Infrastructure Charge
$5.65 per month
Water – Commercial Rate
Line Item
Rate
Notes
First 900,000 gal per month
$8.92 per 1000 gallons
Excess gal per month
$9.17 per 1000 gallons
Minimum Charge per month
$16.59 per month
In addition to customer charge
Monthly Customer Charge
$62.91 per month
Water Infrastructure Charge
$5.65 per month
Water – Industrial Rate
Line Item
Rate
Notes
First 9,750,000 gal per month
$7.07 per 1000 gallons
Industrial rate applies to >1,870,000 gallons per month
Excess gal per month
$8.02 per 1000 gallons
Minimum Charge per month
$16.59 per month
In addition to customer charge
Monthly Customer Charge
$62.91 per month
Water Infrastructure Charge
$5.65 per month
Water – Additional Charges
Line Item
Rate
Notes
Lake Restoration Charge
$4.00 per month
To fund water quality improvements of the Fairmont Lakes.
City Wide Cleanup and Leaf Pickup + Tree Dump Maintenance (combined)
$3.00 per month
Includes $1.50 for City Wide Cleanup and Leaf Pickup and $1.50 for Tree Dump Maintenance.
– City Wide Cleanup and Leaf Pickup (component)
$1.50 per month
Component of the $3.00 combined charge.
– Tree Dump Maintenance (component)
$1.50 per month
Component of the $3.00 combined charge.
Water – System Facts
Line Item
Rate
Notes
Storage Capacity
4,300,000 gallons
Facility fact, not a charge.
Pumping Capacity
3,000 gallons per minute
Facility fact, not a charge.
Total Tap Water Hardness
85 PPM
Facility fact, not a charge.
Wastewater – Residential Rate
Line Item
Rate
Notes
First 1000 gallons – 5/8" x 3/4" meter
$21.10 minimum bill (per month, by meter size)
Effective January 1, 2026. Minimum bill is based on water meter size.
First 1000 gallons – 1" meter
$56.51 minimum bill (per month, by meter size)
First 1000 gallons – 1 1/4" meter
$90.62 minimum bill (per month, by meter size)
First 1000 gallons – 1 1/2" meter
$127.20 minimum bill (per month, by meter size)
First 1000 gallons – 2" meter
$244.39 minimum bill (per month, by meter size)
First 1000 gallons – 3" meter
$566.49 minimum bill (per month, by meter size)
First 1000 gallons – 4" meter
$943.77 minimum bill (per month, by meter size)
First 1000 gallons – 6" meter
$1,436.59 minimum bill (per month, by meter size)
Over 1000 gallons
$3.77 per 1000 gallons
Minimum Bill
based on water meter size
No single value; determined by meter size (see First 1000 gallons rows above).
Infrastructure Charge
$16.82 per month
Wastewater – Commercial Rate
Line Item
Rate
Notes
All Consumption
$5.87 per 1000 gallons
Minimum Charge
$34.40 per month
Infrastructure Charge
$16.82 per month
Wastewater – Industrial Rate
Line Item
Rate
Notes
TSS
$1.0812 per lb
Industrial rate based on concentration. TSS concentration: 250 PPM.
BOD
$1.2774 per lb
BOD concentration: 250 PPM.
TKN
$2.9080 per lb
TKN concentration: 40 PPM.
P
$9.6991 per lb
P (phosphorus) concentration: 5 PPM.
FOG
$1.7744 per lb
FOG concentration: 100 PPM.
Infrastructure Charge
$16.82 per month
Wastewater – System Facts
Line Item
Rate
Notes
Capacity of Treatment Plant
5,400,000 gallons per day
Facility fact, not a charge.
Start or stop service
Utility accounts open through the utility office at City Hall, 100 Downtown Plaza. Connections happen on weekdays, Monday through Friday, 8:00 am to 4:00 pm, excluding holidays.
Open a new account
To set up electric, water, and wastewater service, the office needs four things before crews connect:
A completed Utility Services Application, available from the utility office
The appropriate deposit, if one applies. Call (507) 238-3920 for deposit information
A color copy of a photo ID, such as a driver's license
Submit by mail to 100 Downtown Plaza, Fairmont, MN 56031, in the Public Utility Payment Drop Box on the east side of City Hall in the alley, or by email to citygov@fairmont.org. The city cannot open a new account by telephone, but it can take your deposit payment over the phone with a card or a checking or savings account.
Transfer or stop service
Moving within the service area? You may need a new application and deposit; call City Hall at (507) 238-3920 to discuss and schedule the transfer. Stopping service, and restarting it later, follows the Utility Service Policy (PDF): reconnections happen during working hours, up to 4:30 pm for electric service and 3:00 pm for water.
To report a street light outage or another utility concern, call billing or email citygov@fairmont.org.
Four services, one utility
Public Utilities is governed by a five-member commission appointed by the Mayor and approved by the City Council. It serves customers well past the city line, including over 200 rural accounts.
Electric
The city Electric Department serves utility customers with power around the clock, maintaining 137 miles of overhead and underground lines, 11 miles of 69KV transmission line, and 3 substations.
Miles Heide, Electric Distribution Superintendent 1120 Marcus Street
Water for the City of Fairmont is supplied by Budd Lake and treated at a $31 million water treatment plant completed in 2013, with 83 miles of water mains across the distribution system.
Brady Powers, Water/Wastewater Superintendent 300 Day Street
The city Wastewater Treatment Plant is an activated sludge system upgraded in 2006, collecting flow through 75 miles of sewer lines and 30 lift stations.
Brady Powers, Water/Wastewater Superintendent 301 E Margaret Street
The stormwater system discharges directly to the chain of lakes, so the city runs a Stormwater Pollution Prevention Program under its Minnesota MS4 permit to protect water quality.