Why is the City of Buffalo Considering a Public Utilities Commission (PUC)?

Buffalo is considering the establishment of a new Public Utilities Commission (PUC) to guide the future of our electric, water, and sewer services, and we want you to be part of the conversation. Below you’ll find a concise FAQ that answers the most common questions about why the City is pursuing a PUC, how it will work, and what it means for you as a customer and taxpayer. For those who like to dig deeper, the PUC Roadmap (linked below) details the anticipated step-by-step timeline – from public input this fall to the PUC’s first meeting in early 2026. Explore the resources, share your feedback, and stay engaged as we work through this process.

Next Steps

• November 3, 2025 City Council Meeting
  • Held public hearing.
  • Adopted ordinance establishing the PUC. 
• January 5, 2026City Council Meeting
  • Consider and adopt bylaws/operating policies/agreements for the PUC. 

Buffalo Public Utilities Commission – Frequently Asked Questions

1. What did the City Council recently approve?

Answer: 

The City Council has been discussing a Public Utilities Commission (PUC) since April 2024. In that time, the City Council held 3 public workshops to talk through options, ask questions and visit with our peers from other cities.

On August 4, 2025, the City Council tentatively approved a roadmap toward establishing a 5‑member (PUC) that would oversee Buffalo’s electric, water, and sewer utilities.

Following opportunities for public input, questions, and discussion, the City Council adopted the ordinance establishing a local PUC at the November 3, 2025 meeting. 

Next, the City Council  will consider adopting bylaws/operating policies/agreements for the PUC. 

2. Why create a local PUC rather than keep utility oversight with the full Council?

Answer: 

• Dedicated expertise & focus: A PUC can concentrate on utility operations, regulatory compliance, and long‑range capital planning while the City Council guides broader city strategy and focuses on more typical city issues  like public safety (police, fire), streets, parks and recreation,  planning, etc.)
• Rate stability & transparency: The PUC will hold open meetings devoted solely to utility service, budgets, and rate setting, giving customers a clear venue to understand decisions and discuss concerns.
• Enhanced resident participation: 3 spots on the PUC are for customers and residents. The PUC will allow the public the opportunity to shape policy in more ways than  through the City Council.
• Proven model in peer cities: Elk River, Shakopee, and several others show that appointed PUCs can improve operational efficiencies, customer service and long-term rate stability.

3. How will authority be shared between the Council and the new PUC?

Answer: 

The PUC will set service rules, approve utility budgets and rates, and enter contracts for utility operations. The City Council retains authority to appoint commissioners, issue debt, and set community‑wide strategy, ensuring public accountability.

4. Who serves on the PUC and how are they chosen?

Answer: 

The PUC will have 5 members serving staggered three‑year terms, including  2 City Council representatives for continuity with city policy. All members are appointed by the City Council following an open application process.

5. Which utilities fall under the PUC?

Answer: 

Electric, Water, and Sewer. The City’s Fiber utility will remain under direct City Council oversight pending future review.

6. Will this change my utility rates?

Answer: 

No. Rates will continue to be based on the actual cost of providing service, but the PUC’s  oversight is expected to improve long‑term rate planning and predictability.

7. How will taxpayers and the City's general fund be impacted?

Answer: 

Utility revenues will remain enterprise‑fund dollars dedicated to utility operations and capital projects. A PUC will not draw money from the general property‑tax levy; instead, it helps ensure utility funds are reinvested efficiently in the systems that generate them.

The Electric Utility currently contributes $1 million to support the general fund and reduce property taxes. There will likely be a formula set-up, but the amount is not expected to change.

8. What is the implementation timeline?

Answer: 

Please refer to the Buffalo Public Utilities Commission roadmap (PDF).

9. How can residents stay involved?

Answer:

• Visit the project webpage for background documents and a comment portal.
• Share your feedback and/or submit comments during public meetings 
• Continue to contact Council Members with policy questions
• Apply to serve on the PUC  if established. 

10. Who manages day‑to‑day utility operations under the new structure?

Answer: 

The Utilities Director continues to manage daily operations, report to the City Administrator, and implement policies set by the PUC and City Council.

For additional questions, please submit your question here,  email cityadministrator@ci.buffalo.mn.us  or call 763‑682‑1181.