Front Royal raises electric rates, some after-hour and tire-disposal fees

Fee and rate hikes are never welcome; however, in the case of the Town of Front Royal’s just approved electric utility rate increase the pain is eased by the fact that for the past four years those rates have been the lowest in the Commonwealth of Virginia for either municipal or private sector providers.

And Town Manager Joe Waltz, the man previously in charge of that utility as director of environmental services, notes that five years ago Front Royal was the lowest ranked municipal provider in Virginia, behind only two private sector electric utilities.

John Connolly, who made the motion to approve the rate increases, explained that rising transmission costs were a reason for the hikes. He added that the Town was attempting to get ahead of the curve of an industry trend that will eventually impact all providers.

Following his motion to raise some Town electric rates, John Connolly explained why; and how the Town may be staying ahead of the curve of rising transmission fees. Photo/Roger Bianchini

And as we pointed out in our May 22 ribbon-cutting story on the Town’s new 15-acre, 2.5 megawatt solar power field, the Town will be bypassing any transmission fees on that self-generated solar power going into its electric grid. The solar power being produced on site since early April can power 350 homes with an average 200-amp service typical of today’s market.

But back to the tear-jerking reality of the newly-approved rates expected to knock Front Royal – at least for awhile – off its lowest provider pedestal: the base rate for both residential and commercial customers was raised about 8% – for residential, from $6.24 to $7.00 (a 76-cent hike); and for commercial, from $6.40 to $7.16 (also a 76-cent hike).

The way the Town calculates higher commercial use charges was also adjusted.  Commercial customers using over 7.5 kilowatts will see their “first energy block … increased by 53 kilowatt hours for each 1/2 kilowatt required in excess of 7.5 kilowatts.”

A formula for applying a “Power Cost Adjustment” based on a 12-month usage period was also approved as part of the rate changes.

Service fees

Several service fees were either hiked or eliminated.  They are as follows:

• After-hours shut-off calls for water, raised from $25 to $30;
• Minor accident report fees by FRPD, eliminated;
• Miscellaneous fees for hard copies, eliminated because “hard copy updates are no longer being printed.”
• Acceptance of tires for disposal (Environmental Services Fee) – without rims up to 16.5 inches, up from $1.50 to $2.00 per tire; tires on rim up to 16.5 inches, up from $2.50 to $4.00 per tire; tires above 16.5 inches with or without rims, up from $3.00 to $5.00 per tire.