Front Royal Energy Department Faces $1.1 Million Deficit, Rate Increase Proposed

As of February 2026, the Town of Front Royal’s energy department is operating approximately 1.1 million in the hole. At a work session of the Town Council on February 9, Director of Energy Services Carey Saffelle explained that it has been seven years since a cost-of-service study was undertaken, a lapse that he hopes will not be repeated. At the previous week’s work session, Mayor Lori Cockrell quieted a rumor that electric rates are going to be doubled. While the rumor was indeed baseless, Saffelle’s department does require a rate increase, not to make a profit, but merely to break even.

The Town Council gathers for a work session on February 9. Royal Examiner Photo Credits: Brenden McHugh

Standing beside Saffelle was Kiel Blanton of RGrid Power PLLC, prepared to give an overview of the study that his organization has conducted on the Town’s behalf. Over a five-year period, from 2026 to 2030, he identified a predicted shortfall of $15,677,738 wherein expenses exceed projected base revenue by that amount. How can the Town strategically meet this number to both break even and cause as little inconvenience to the taxpayer as possible?

Energy Director Carey Saffelle (L) introduces Kiel Blanton of RGrid Power PLLC for an overview of an electric cost of service study.

The first phase of the vision, lasting approximately one year, increases rates for residential and commercial by 11.8%. The second phase of the vision separates commercial into three separate categories, aiming for equity across the board. For those interested in the granular details, the RGrid presentation can be found on the Town website within the agenda packet for the February 9 work session. If the vision is followed, Blanton predicts that the Town will make 15.7% change in revenue and cover the projected expense. The ordinance amendment for this item will be discussed again at the March 2 work session and taken to a vote on March 23.

Planning Director Lauren Kopishke presents an application for a sidewalk waiver.

Under new business, the council also reviewed a request for approval of the purchase and replacement of three patrol vehicles for the Front Royal Police Department. Another police related item featured acceptance of funds from the commonwealth’s 9-1-1 service board for reimbursement of equipment expenses. Following this, Planning Director Lauren Kopishke presented a request from Monteverde Engineering for a sidewalk waiver in the developing Squirrel Hill subdivision, whereby Viscose Avenue, Orchard Street, and North Street would be exempted while the applicant would construct a sidewalk along West Main Street. The recommendation of staff is denial as neither of the two conditions for the waiver is met, namely, that the neighborhood is relatively low-density, which the neighborhood in question would not be, and that a sidewalk would adversely affect drainage, for which staff claims the applicant has made no case.

Town Manager Joseph Petty presents an ordinance amendment centered on the establishment of a special events committee to receive applications for special events held on town streets and public property.

The council then considered a public water and sewer easement for access to and maintenance of facilities to be constructed to serve an out-of-town industrial customer. Chief Brian Whited then stood before the council in support of a budget amendment that would allow the receipt of funds for police expenses to combat internet crimes against children. Kopishke reappeared to present a special-use permit application to allow a tow yard in a vacant lot on Kibler Street. She detailed the requirements of code and the recommendations of the Town Planning Commission and fielded a discussion, driven by Councilman Wayne Sealock, about the potential hazard of fluids leaking from a towed, wrecked vehicle into a nearby stream. Pavement would deter such an outcome, Kopishke asserted. The council was in favor of making that a condition.

The rest of the open meeting was led by Town Manager Joseph Petty, who outlined for the council the current situation on a revenue-sharing project with VDOT related to lighting on Shenandoah Avenue. Tangible progress has been made with the Town spending to date $50,464.70, which will not be reimbursed by VDOT. Because of a shift in budget priorities, it appears that the Town will be withdrawing the application for the project, politely opting not to match funds. With a word about a new fee schedule for special events under a new special events committee, dedicated to making special events on town streets and public property safe and successful, wherein the cost to the applicant, which covers what has previously been largely a Town-subsidized expense to various departments, would increase from $350 to $2735, the council then convened a closed meeting.

Click here to watch the Front Royal Town Council Work Session of February 9, 2026.